2013 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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

Validated Producer Productivity

Average

Top 25%

Commercial P&C Producers Average Validated Producers # Validated

2.6 6.5 1.0

High Low

Average New Commissions Produced Annually

$51,838 $331,742 $108,579

$93,642 $576,574

Average Book Serviced (Commissions)

Average Pay ($)

Average Pay (% of Book Serviced)

32.7%

Group Life & Health Producers Average Validated Producers # Validated

1.1 2.0 0.5

High Low

Average New Commissions Produced Annually

$37,257 $113,648 $57,525

$68,410 $175,464

Average Book Serviced (Commissions)

Average Pay ($)

Average Pay (% of Book Serviced)

50.6%

Personal P&C Producers Average Validated Producers # Validated

1.6 3.0 1.0

High Low

Average New Commissions Produced Annually

$24,511 $157,902 $53,772

$39,375 $250,191

Average Book Serviced (Commissions)

Average Pay ($)

Average Pay (% of Book Serviced)

34.1%

Multi-Line Producers Average Validated Producers # Validated

2.9 8.0 1.0

High Low

2013 Best Practices Study

Average New Commissions Produced Annually

$80,726 $417,433 $121,320

$184,279 $794,089

Average Book Serviced (Commissions)

Average Pay ($)

Agencies with Revenues Between $1,250,000 and $2,500,000

Average Pay (% of Book Serviced)

29.1%

Average

+25% Profit

+25% Growth

% of Agencies That Reimburse All/Part T&E Expense

61.8%

75.0%

62.5%

54

% of Earned Premium charged back to Producers for bad debt write-offs: 48.5%