2017 Best Practices Study-Study Sponsors

([HFXWLYH 6XPPDU\

$JHQFLHV EHWZHHQ

PLOOLRQ DQG

PLOOLRQ LQ UHYHQXH

3URGXFWLRQ

Sales Velocity is a critical metric in determining organic growth. It is defined as this year’s written new business divided by last year’s commissions and fees. Age Banding of Sales Velocity can help a firm assess where new business and growth are coming from and prepare for perpetuation.

x

Top Quartile

23.4%

3.4%

Over age 55 Age 46-55 Age 36-45 Up to age 35

3.5%

x

Average

14.4%

4.2%

3.2%

Comparison Group Average

x Weighted average producer age (WAPA) is 46. x

Up to age 35 10.1%

Effective NUPP, which is the product of an agency’s investment in unvalidated producers (NUPP) and success rate in hiring producers (Producer Success Rate), is expressed as a percentage of net revenue. It is the best overall measure of an agency’s effectiveness in recruiting and developing sales talent. With a Sales Velocity of 14.4%, this revenue group led among all BPS revenue categories. Each of the four producer age groups delivered comparable contributions to Sales Velocity, an indication of effective investments in next-gen producer talent. Personal lines producers in this group delivered the largest new PL business results ($70,909) in the entire Study .

New Business

Average Book $931,987

Over age 55 34.2%

Commercial P&C

$98,533

Age 36- 45 26.2%

Personal P&C

$70,909

$371,111

Life/Health/ Financial

$136,040

$914,089

Multi- Line

$73,172

$586,179

Age 46- 55 29.6%

x

x

Group Average:

1833

(IIHFWLYH 1833

3URGXFHU 6XFFHVV 5DWH

x