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

Carriers

Average +25% Profit +25% Growth

Carrier Representation Personal Lines P&C National

7.5 8.4

4.9 6.0

5.4 6.5

Regional

Total

16.0

10.9

11.9

Commercial Lines P&C National

12.5 13.1 25.6

7.8 7.3

10.5 14.2 24.7

Regional

Total

15.1

Group L&H / Financial

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

11.4

4.9

14.5

Average +25% Growth Agency’s Total % of Commission & Fee Revenue Derived from Direct Versus Indirect Appointments INDIRECT Carrier Appointments 15.6% 8.1% 14.4% DIRECT Carrier Appointments 84.4% 91.9% 85.6% 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

24.1%

*

*

3.8%

*

*

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 50.0% * Retention 0.0% 18.2% Profitability 16.7% * Sales 0.0% *

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

95

*Insufficient Data