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. • These firms posted the highest NUPP (3.6%) of all revenue bands in 2025. • After posting the highest sales velocity the past three years, this revenue group has dropped to 14.3%, tied for the 3 rd highest sales velocity across all groups.

Book of Business per Producer (commissions and fees)

Book of Business by Age

Effective NUPP

NUPP 3.6%

New Business

Average Book

Commercial P&C

$52,786

$349,993

Producer Success Rate 31.5%

Personal P&C

$64,501

$276,773

   

12.3% 29.0% 26.1% 32.7%

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

Life/ Health/ Financial

$97,645

$193,151

Effective NUPP 1.1%

Multi-Line

$42,683

$223,064

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.

18.0%

14.3%

 Over age 55

3.9%

 Age 46-55

5.3%

SALES VELOCITY

 Age 36-45

3.7%

 Up to age 35

1.5%

Average

Top Quartile

$1.25-2.5M

30