2024 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 9.5%

New Business $62,823

Average Book

Over age 55 40.6%

Commercial P&C

$370,456

Age 36-45 22.6%

Personal P&C

$46,845

$262,345

Multi-Line Production Sales Velocity 15.9%

Life/Health/Financial

$96,682

$190,987

Age 46-55 27.3%

$40,859

$306,801

Effective NUPP

Producer Success Rate 38.6%

NUPP 3.9%

Effective NUPP 1.5%

• 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 posted the highest NUPP and Effective NUPP of all revenue categories and made significant improvements year over year. • For the third year in a row, this revenue category had the highest average Sales Velocity of 15.9%, 2.5% higher than the $2.5-5M revenue category.

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.

21.4%

Over age 55

6.5%

Age 46-55

3.5%

Age 36-45

3.3%

Up to age 35

2.6%

Comparison Group Average

Average

Top Quartile

$1.25-2.5M

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