2015 Best Practices Study

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

Key Benchmarks Profile

Most Successful Producer Productivity

Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Most Successful Producer Productivity

Commercial P&C

Group L&H

Average Top 25% Average Top 25% Average Top 25%

$77,827

$62,875

New Commissions Produced Annually

$132,948 $672,900 $1,038,708

$166,758 $322,691 $676,017

Total Commissions in Producer’s Book

$6,449

$4,276

Average Commissions per Account

$16,115

$11,803

How Most Successful Producers Spent Time

Most Successful Commercial P&C Producer

Most Successful Group L&H Producer

Mgmt/Personnel/ Agency Admin. 16.6%

Mgmt/Personnel/ Agency Admin. 20.6%

Soliciting New Business 25.9%

Soliciting New Business 27.8%

Personal Training/

Personal Training/

Education/ Prof. Dev. 6.9%

Education/ Prof. Dev. 6.8%

Servicing Existing Accounts 50.6%

Servicing Existing Accounts 44.7%

Personal Lines Producers, whose main responsibility is to solicit and write new personal lines accounts and who are not responsible for the day-to-day servicing of the business, can be very productive. On average the most successful Personal Lines Producer in this revenue category generated $65,689 per year in new personal lines commissions with an average commission per account of $401 . (Typically, the total commissions in the producer’s book are not tracked since they are not paid renewal commission. Most often, the producers receive a base salary plus new business commissions.)

2015 Best Practices Study

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

70

Note: See page 163 for an explanation of column headings