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 agencies posted the second highest sales velocity at 14.9%, only 0.1% behind the over $100M revenue group. • $5-10M revenue firms posted the highest sales velocity for producers up to Age 35 (3.4%) for the third year in a row.

Book of Business per Producer (commissions and fees)

Book of Business by Age

Effective NUPP

NUPP 1.6%

New Business

Average Book

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

$111,506

$829,764

Producer Success Rate 51.7%

$59,466

$388,653

   

11.5% 28.2% 23.1% 37.2%

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

$85,606

$460,214

Effective NUPP 0.8%

$77,493

$609,602

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.

18.4%

14.9%

 Over age 55

3.7%

 Age 46-55

3.2%

 Age 36-45

4.7%

 Up to age 35

3.4%

Average

Top Quartile

$5-10M

38