2025 Best Practices Study

Executive Summary

• Effective NUPP, 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 and is the best overall measure of an agency's effectiveness in recruiting and developing sales talent. • Firms in this revenue band took a significant step forward in lowering their Weighted Average Producer Age (WAPA) to 47.4, down from 49.4 in 2024 and 51.1 in 2023. • This revenue group posted the lowest Effective NUPP of any revenue group, staying consistent from 2024 after having the highest Effective NUPP in 2023.

Book of Business per Producer (commissions and fees)

Book of Business by Age

Effective NUPP

NUPP 1.9%

New Business

Average Book

Commercial P&C PRODUCTION SALES VELOCITY Personal P&C Life/ Health/ Financial Multi-Line

$29,841

$300,404

Producer Success Rate 21.3%

$44,774

$129,499

   

5.7%

Up to age 35 Age 36-45 Age 46-55 Over age 55

38.6% 29.7% 26.0%

$44,774

$129,499

Effective NUPP 0.4%

$35,759

$441,449

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%

13.4%

 Over age 55

3.3%

 Age 46-55

4.3%

 Age 36-45

5.3%

 Up to age 35

0.5%

Average

Top Quartile

<$1.25M

26