2013 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

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

66.7%

75.0%

75.0%

$3,050 $1,300 $3,518

$1,917 $1,750 $3,400

$2,500 $2,750 $2,250

46.2%

*

50.0%

66.7%

* *

87.5%

Number of Points Reduced

11

12

% of Agencies that Raise Reduced Rate Over Time

30.3%

*

50.0%

*Insufficient Data

Restrictive Covenants

Average

+25% Profit

+25% Growth

Use of Restrictive Covenants

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

84.0% 13.0%

100.0% 0.0% 0.0% 0.0%

50.0% 33.0% 17.0% 0.0%

3.0% 0.0%

2013 Best Practices Study

Agencies with Revenues Between $10,000,000 and $25,000,000

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