2023 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 12.3%

New Business

Average Book

Over age 55 36.3%

Commercial P&C

$114,807

$833,085

Personal P&C

$65,195

$449,263

Age 36-45 27.7%

Multi-Line Production Sales Velocity 13.1%

Life/Health/Financial

$110,755

$883,043

Age 46-55 23.6%

$74,506

$714,901

Effective NUPP

Producer Success Rate 49.9%

NUPP 1.3%

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. • Effective NUPP dropped from 0.9% last year to 0.6% this year, giving $10-$25 million the lowest effective producer investment of any BPS size category. • This category size produced the lowest sales velocity of any size category at 13.1%, trailing the best performing category ($1.25-$2.5M) by 2.7%.

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.

16.3%

Over age 55

3.6%

Age 46-55

2.8%

Age 36-45

4.1%

Up to age 35

2.6%

Comparison Group Average

Average

Top Quartile

$10-25M

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