2024 BPS Study_Final (8.16.24)

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 17.4%

New Business

Average Book

Over age 55 32.0%

Commercial P&C

$96,250

$733,832

Personal P&C

$79,835

$427,365

Multi-Line Production Sales Velocity 14.1%

Age 36-45 30.1%

Life/Health/Financial

$77,023

$657,067

Age 46-55 20.5%

$71,669

$626,733

Effective NUPP

Producer Success Rate 54.0%

NUPP 1.7%

Effective NUPP 0.9%

• 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 (54.0%) of all revenue categories. • $5 – 10M revenue firms posted the highest Sales Velocity for producers up to Age 35 (3.6%) for the second year in a row.

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.

16.7%

2.8%

Over age 55

3.1%

Age 46-55

4.6%

Age 36-45

Up to age 35

3.6%

Comparison Group Average

Average

Top Quartile

$5-10M

32