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. • This revenue band posted the highest effective NUPP (1.2%). • The firms in this revenue group posted the lowest sales velocity of all revenue groups at 12.7%. Agencies $2.5M to $5M slightly decreased from 2024’s sales velocity of 13.4%.

Book of Business per Producer (commissions and fees)

Book of Business by Age

Effective NUPP

NUPP 3.0%

New Business

Average Book

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

$61,165

$656,599

Producer Success Rate 41.3%

$39,003

$246,016

   

5.9%

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

30.7% 20.5% 42.9%

$21,337

$183,067

Effective NUPP 1.2%

$86,723

$628,274

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.

15.8%

 Over age 55

12.7%

4.3%

 Age 46-55

2.5%

 Age 36-45

4.8%

 Up to age 35

1.0%

Average

Top Quartile

$2.5-5M

34