2024 BPS Study_Final (8.16.24)

Productivity

Revenue Per Employee is perhaps the simplest Best Practices metric to calculate. However, don’t allow its simplicity to detract from its importance in assessing an agency's overall health. Revenue per employee is simply an agency's revenue divided by its full-time equivalent employees. An agency operating at a below-average revenue per employee is likely to generate a lower level of profitability than its potential. A low revenue per employee result may indicate that an agency is overstaffed, poorly structured, or in need of improved technology and/or systems and procedures, among other things.

In all but two revenue categories, revenue per employee improved over the prior year's results.

Revenue per Employee

$249,538

$240,379

$245,503

$233,451

$225,793

$207,698

$195,217

$188,362

$186,019

$183,050

$182,593

$170,674

<$1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

>$25M

2023

2024

Conclusion

Conclusion

This year’s Study results confirm what we have known for decades – the independent insurance industry is the world's finest and most resilient industry. Think back to the make-or-break and transformational events that our industry has powered through over the decades since the inception of the Best Practices Study in 1993:

1993 1996 1998 2004 2009 2014 2020 2022

AI comes to the masses (ChatGPT)

The Great Recession

Hillarycare (a push for nationalized healthcare)

The fear of Internet disinter mediation

Banks-in Insurance

Eliot Spitzer’s Attack on Contingents

The Affordable Care Act (Obamacare)

The COVID-19 Pandemic

Study Highlights

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