2013 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

32.6%

27.3%

45.5%

$1,293 $1,000 $1,700

* * *

* * *

30.4%

*

*

26.1%

* *

* *

Number of Points Reduced

10

% of Agencies that Raise Reduced Rate Over Time

8.7%

*

*

*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

85.0% 7.5% 5.0% 2.5%

66.7% 11.1% 11.1% 11.1%

77.8% 11.1% 0.0% 11.1%

2013 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

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