2023 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 14.8%

New Business

Average Book

Over age 55 32.6%

Commercial P&C

$90,362

$714,502

Personal P&C

$72,802

$378,773

Age 36-45 30.0%

Multi-Line Production Sales Velocity 15.1%

Life/Health/Financial

$71,627

$559,641

Age 46-55 22.7%

$74,639

$671,199

Effective NUPP

Producer Success Rate 50.2%

NUPP 1.6%

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 had the second largest new Personal P&C book of business ($72,802). • $5 – 10M revenue firms posted the highest Sales Velocity for producers up to Age 35 (3.6%) and the third highest average Sales Velocity (15.1%).

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%

4.6%

Over age 55

2.3%

Age 46-55

4.7%

Age 36-45

Up to age 35

3.6%

Comparison Group Average

Average

Top Quartile

$5-10M

30