2014 Best Practices Study

2014 Best Practices Study

Key Benchmarks

13. Miscellaneous — Income from countersignatures fees, gains/losses on fixed or intangible assets, life insurance proceeds 14. Gross Revenues — The sum of items 6, 11, 12 & 13 15. Brokerage Commission Expense — Commissions paid to other agencies or outside brokers. Does NOT include in-house producers that are paid on a 1099. 16. Net Revenues — Gross Revenues less Brokerage Commission Expense

Profile

Revenues

Expenses

Profitability

Employee Overview

EXPENSES (as reported for most recently completed fiscal year-end and stated as a percentage of net revenues)

Producer Info

Service Staff Info

Compensation Payroll: The following payroll breakdown is for the entire agency including agency owners:

Technology

17. Employees — Salaries, commissions, bonuses, management fees, and discretionary owner compensation 18. “Non-Employees” 1099 Producers /Temporary Help — Commissions, bonuses for agency’s producers compensated on 1099. (Does not include producers/agencies to which you pay outside broker commissions.) Also includes expenses for outside temporary staffing, temp-to-perm staffing expenses, etc. 19. Total Payroll — The sum of items 17 - 18 Benefits: 20. Payroll Taxes — All payroll taxes (SS, FICA, FUTA, etc.) 21. Retirement — Expenses related to a 401(k), ESOP/ESOT, miscellaneous retirement benefits 22. Insurance — Health ins, medical reimbursements, life ins ( except “key man” life ), disability insurance 23. Other – Wellness programs, health club memberships, gifts, etc. 24. Total Benefits — The sum of items 20-23 25. Total Compensation — The sum of items 19 & 24 Selling 26. Travel & Entertainment/Conventions — Airfare, meals, hotels, social/country club dues, convention related expenses ( Excludes professional dues/memberships ) 27. Auto Expenditures — Lease, gas, maintenance/repair, employee parking, mileage allowances, etc. 28. Auto Depreciation — Depreciated expense for current year that is associated with auto only. 29. Total Auto — The sum of items 27 & 28 30. Advertising / Promotion — Promotional / advertising materials, target marketing services, fees paid to advertising or public relations agencies, media buys, contest rewards, customer relations functions, gifts, telemarketing, etc. 31. Total Selling — The sum of items 26, 29 & 30 Operating 32. Occupancy Expenditures — Total rent, utilities, building/grounds maintenance, property taxes, janitorial services, storage & other building related expense. ( net rental/sublet income against Occupancy Expense ) 33. Occupancy Depreciation/Amortization — Building depreciation, leasehold amortization 34. Total Occupancy — The sum of items 32 & 33 35. Office Equipment Expenditures — Leases and expensed equipment purchases including copier leasing/ maintenance, telephone & fax leasing/maintenance, postage meters lease/maintenance, office furniture & fixtures leasing/maintenance (Excludes IT equipment)

Insurance Carriers Appendix

2014 Best Practices Study

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