2013 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

Key Benchmarks Mgmt. Perspectives Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Commission Practices

Average

+25% Profit

+25% Growth

Agency Practices % of Agencies with Threshold below which New / Renewal Commissions are not paid $ Amount of Commercial P&C Threshold $ Amount of Personal P&C Threshold $ Amount of Group L&H Threshold % of Agencies That Give/Assign Books of Business to New Producers Reduce Commission on Assigned Book

59.1%

70.0%

70.0%

$1,217

$550

$550

$738

$0

$50

$1,629

$250

$400

37.2%

50.0%

50.0%

50.0%

60.0%

20.0%

Number of Points Reduced

6

10

3

% of Agencies that Raise Reduced Rate Over Time

20.5%

20.0%

0.0%

Restrictive Covenants

Average

+25% Profit

+25% Growth

Use of Restrictive Covenants

85.7% 7.1% 7.1% 0.0%

90.0% 10.0%

90.0% 0.0% 10.0% 0.0%

All Producers Have Signed Some Producers Have Signed None Have Signed Have No Producers Except Agency Owners

0.0% 0.0%

2013 Best Practices Study

Agencies with Revenues Between $5,000,000 and $10,000,000

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