2023 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 6.5%

New Business

Average Book

Over age 55 40.8%

Commercial P&C

$34,307

$317,314

Age 36-45 23.1%

Personal P&C

$33,028

$198,858

Multi-Line Production Sales Velocity 13.7%

Life/Health/Financial

$22,584

$110,190

Age 46-55 29.7%

$78,000

$558,436

Effective NUPP

Producer Success Rate 39.5%

NUPP 3.1%

Effective NUPP 1.2%

• 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. • Over 70% of this revenue group's book of business is controlled by mature producers (>45), a higher concentration than all other revenue categories. Developing younger talent will be a key priority for these agencies. • This revenue group scored highest in NUPP and Effective NUPP, an indication that producer recruitment, hiring, and development has been successful this year in these smaller agencies.

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.

14.2%

4.2%

Over age 55

Age 46-55

4.4%

Age 36-45

3.8%

Up to age 35

1.3%

Comparison Group Average

Average

Top Quartile

<$1.25M

18