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

Service Staff Productivity

Service & Sales Support Staff Definition • Typically non-commissioned employees • Provide service to the agency’s clients • Support producers in the sale of new business and retention of existing business Some service positions may earn commission income but typically a majority of their pay is fixed and a majority of their time is devoted to service rather than the soliciting of new clients. Service & Sales Support Positions* Included in Full-time Equivalent Headcounts • Account Executives (AE) - senior level service representatives • Account Managers, Customer Service Representatives (CSRs) • Assistant CSRs, Processors • Claims Staff • Placers/Marketers • Department Managers - who also service clients * Position titles are general categories since specific job titles vary from agency to agency Administrative personnel such as accounting, mail room, and reception are not included in service benchmarks unless a portion of their time is dedicated to service.

Service Staff Overview

Average

+25% Profit +25% Growth

Total # of Service Staff:

(as defined above; excludes any TPA service staff)

26.6

21.2

26.3

% of Peer Agencies Having:

Separate/Dedicated Marketing Department

58.1%

50.0%

80.0%

# of Marketing Staff

1.8

2.2

1.9

Separate/Dedicated Claims Department

53.5%

50.0%

40.0%

# of Claims Staff

1.6

1.3

1.5

TPA Service Staff

Average

+25% Profit

+25% Growth

% of Peer Agencies Having: Workers Comp TPA

* * *

* * * * * *

* * * * * *

# of Service Staff

2013 Best Practices Study

Total TPA Revenues Serviced

Group Benefits TPA

9.3%

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

# of Service Staff

2.4

Total TPA Revenues Serviced

$150,266

*Insufficient Data

Average # of Licensed Employees:

38.1

(includes sales and service/support staff)

122