2022 Best Practices Study
Executive Summary
Book of Business per Producer (commissions and fees)
Book of Business by Age
New Business $31,228
Average Book
Over age 55 27.0%
Up to age 35 26.8%
Commercial P&C
$181,662
Personal P&C
$43,506
$231,815
Multi-Line Production Sales Velocity 17.4%
Life/Health/Financial
$120,318
$312,333
Age 46-55 19.0%
Age 36-45 27.2%
$62,390
$280,098
Effective NUPP
Producer Success Rate 58.1%
NUPP 1.1%
Effective NUPP 0.6%
• 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 posted the highest Sales Velocity in this year's Best Practices Study (17.4%). • This revenue category's L/H/F new business per producer results ($120,318) were the second highest in this year's Best Practices Study , trailing only the $25M+ revenue group.
Sales Velocity
Notes & Definitions
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.
30.3%
3.9%
4.0%
Over age 55 Age 46-55 Age 36-45 Up to age 35
5.1%
4.4%
Comparison Group Average
Average
Top Quartile
$1.25-2.5M
26
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