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

Carriers

Average +25% Profit +25% Growth

Carrier Representation Personal Lines P&C National

11.3

9.5 7.9

9.4 5.4

Regional

7.2

Total

18.5

17.4

14.8

Commercial Lines P&C National

20.0 12.9 32.9

12.2 13.5 25.7

15.2 10.1 25.3

Regional

Total

Group L&H / Financial

Total Life, Health, Disability, LTC, Retirement Products, and Other

27.5

19.6

31.3

Average +25% Growth Agency’s Total % of Commission & Fee Revenue Derived from Direct Versus Indirect Appointments INDIRECT Carrier Appointments 17.3% 12.7% 19.2% DIRECT Carrier Appointments 82.7% 87.3% 80.8% Carrier Appointments +25% Profit

Use of Carrier Service Centers

Average

+25% Profit

+25% Growth

Service Center Use Total Personal Lines Commission placed in Carrier Service Center Total Commercial Lines Commission placed in Carrier Service Center

33.6%

33.4%

42.1%

6.1%

4.4%

3.9%

2013 Best Practices Study

Impact of Service Center Use (% of agencies considering the impact to be very positive on the following) Personal Lines Commercial Lines Workflows 33.3% * Retention 6.7% 10.5% Profitability 26.7% * Sales 0.0% *

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

127

*Insufficient Data