2020 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.

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3.3%

Top Quartile

19.6%

2.2%

Over age 55

Age 46-55

4.4%

•

Age 36-45

Average

13.2%

Up to age 35

3.3%

Comparison Group Average

Book of Business per Producer (commissions and fees)

Book of Business by Age

Notes & Definitions

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

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. Agencies in this revenue category are tied for last place with 3 other agency revenue categories in Sales Velocity (13.2%). Agencies in this revenue category continue to make investment in young producer talent - they had the second highest NUPP investment (1.6%) in the Study and were tied for 1st place in Effective NUPP (0.9%).

Up to age 35 15.5%

New Business

Average Book

Over age 55 34.0%

Commercial P&C

$72,402

$631,075

Personal P&C

$49,550

$302,344

Life/Health/ Financial

Age 36- 45 30.8%

$78,328

$504,025

Multi- Line

$66,742

$558,224

Age 46- 55 19.7%

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Effective NUPP

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Group Average:

 38