2023 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 11.0%

New Business

Average Book

Over age 55 37.1%

Commercial P&C

$87,533

$633,527

Age 36-45 25.1%

Personal P&C

$32,831

$185,442

Multi-Line Production Sales Velocity 14.6%

Life/Health/Financial

$39,947

$225,346

Age 46-55 26.9%

$73,985

$563,362

Effective NUPP

Producer Success Rate 56.7%

NUPP 2.0%

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. • This revenue category had the highest Producer Success Rate (56.7%) of all other revenue groups. • The $2.5-$5M category increased both its NUPP and Effective NUPP from last year, indicating increased investment into unvalidated producers in this size category.

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.

17.9%

3.8%

Over age 55

3.6%

Age 46-55

Age 36-45

4.9%

Up to age 35

2.3%

Comparison Group Average

Average

Top Quartile

$2.5-5M

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