2023 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

New Business

Average Book

Up to age 35 19.4%

Over age 55 38.8%

Commercial P&C

$35,514

$230,966

Personal P&C

$39,712

$215,420

Multi-Line Production Sales Velocity 15.8%

Age 36-45 27.5%

Life/Health/Financial

$42,561

$178,259

Age 46-55 14.3%

$22,862

$161,696

Effective NUPP

Producer Success Rate 29.1%

NUPP 2.8%

Effective NUPP 0.8%

• 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 (15.8%) as well as the highest Sales Velocity last year. • This revenue category's producer success rate was the lowest of any revenue categories. Agencies in this revenue category may want to evaluate how they’re investing in recruitment and development to improve producer success rate.

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.

19.4%

Over age 55

5.4%

Age 46-55

3.1%

Age 36-45

4.0%

Up to age 35

3.3%

Comparison Group Average

Average

Top Quartile

$1.25-2.5M

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