2019 Best Practices Study

Definitions

Sales Velocity

Age Banding of Sales Velocity

•

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.

Top Quartile

33.2%

4.6%

Over age 55

5.0%

Age 46-55

•

Age 36-45

Average

20.3%

5.7%

Up to age 35

4.9%

Comparison Group Average

Book of Business per Producer (commissions and fees)

Book of Business by Age

Notes & Definitions

•

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. Velocity (20.3%) of all the revenue categories, exceeding the second highest results achieved by agencies with revenues of $1.25 - $2.5M by 1.5 percentage points. Agencies in this category had the highest Effective NUPP (1.6%), achieved through the combination of the second highest NUPP (2.0%) and the highest Producer Success Rate of 82.3%. BPS agencies under $1.25M generated the highest Sales

Up to age 35 15.1%

New Business

Average Book

Over age 55 25.5%

Commercial P&C

$43,394

$248,414

Personal P&C

$37,969

$227,425

Life/Health/ Financial

Age 36- 45 30.5%

$30,145

$98,967

Multi- Line

$49,631

$376,283

Age 46- 55 28.9%

•

Effective NUPP

Group Average:

•

 30