2023 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 9.8%

New Business

Average Book

Over age 55 32.7%

Commercial P&C

$162,984

$1,310,263

Age 36-45 29.8%

Personal P&C

$84,593

$611,269

Multi-Line Production Sales Velocity 15.7%

Life/Health/Financial

$175,461

$1,113,608

Age 46-55 27.8%

$85,676

$794,133

Effective NUPP

Producer Success Rate 47.3%

NUPP 1.4%

Effective NUPP 0.7%

• 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. • Firms over $25M have the third oldest producers (WAPA of 49.4) but also have producers with the largest average book size across all categories. Commercial lines producers average book serviced is $1,310,263, almost $500,000 more than any other size category. • This size category reported the second-highest sales velocity at 15.7%, along with the second-highest top quartile sales velocity at 18.7%. Over the past year, this segment has seen growth among its younger producers and now boasts the largest sales velocity from producers aged 36 to 45, reaching 5.2%.

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.

18.7%

3.8%

Over age 55

3.7%

Age 46-55

5.2%

Age 36-45

Up to age 35

3.0%

Comparison Group Average

Average

Top Quartile

>$25M

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