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2007 Best Practices Study | Agencies with Revenues Over $25,000,000 | Insurance Carriers
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Agencies with Revenues Over $25,000,000
Carriers
Average +25% Profit +25% Growth
Carrier Representation
Personal Lines P&C
National
12.8
8.0
22.1
Regional
7.2
8.1
3.0
Total
20.0
16.1
25.1
Commercial Lines P&C
National
39.6
19.2
33.4
Regional
39.4
41.9
14.4
Total
78.9
61.0
47.8
Employee Benefits
Life
20.0
19.5
19.5
Health
20.4
20.6
26.5
LTD
13.2
10.4
20.0
Dental
10.1
9.4
14.1
Retirement Products
5.8
3.9
7.4
Total
69.4
63.8
87.6
“We believe our size gives
us a competitive advantage
against both smaller and
larger agents and brokers.
Against smaller brokers we
simply have more volume
and therefore more clout.
Against the public brokers
we typically have better
access to the top executives
of our carriers because our
top executives are directly
engaged – we aren’t stuck
going through the carriers’
middle manager chain of
command.”
Average
+25% Profit
+25% Growth
Commission Income Derived from Top Carriers
% of Net Revenue from Top P&C Carrier
9.6%
11.3%
8.3%
% of Net Revenue from Top 3 P&C Carriers
19.9%
22.1%
17.5%
% of Net Revenue from Top L&H/F Carrier
4.4%
3.6%
3.8%
% of Net Revenue from Top 3 L&H/F Carriers
7.4%
6.6%
7.2%
Revenues from Top P&C Carrier - Breakdown by Line of Business
Average
+25% Profit
+25% Growth
Small
Commercial
10.9%
Small
Commercial
8.3%
Small
Commercial
4.9%
Mid/Large
Commercial
24.8%
Personal
3.1%
Mid/Large
Commercial
77.7%
Personal
38.4%
Mid/Large
Commercial
62.7%
Personal
18.4%