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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Top Quartile

23.4%

3.3%

Over age 55

5.2%

Age 46-55

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Age 36-45

Average

15.5%

4.6%

Up to age 35

2.4%

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. •

Up to age 35 9.9%

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. This revenue category’s new business production was the second highest in the BPS, with a average Sales Velocity of 15.5% Among all revenue groups, producers in this revenue category delivered the highest new business contributions in CL, PL and L/H/F. Books of business controlled by the senior class (producers over 55) are the second lowest in the BPS (30.4%).

New Business

Average Book

Over age 55 30.4%

Commercial P&C

$160,746

$1,175,070

Age 36- 45 24.3%

Personal P&C

$95,593

$493,740

Life/Health/ Financial

$186,542

$1,124,066

Multi- Line

$54,590

$995,815

Age 46- 55 35.5%

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Effective NUPP

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Group Average:

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 46