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. • In the sales velocity age banding, this revenue band has the lowest percentage for those over age 55 (3.2%) when compared to all other revenue bands. • This revenue group posted the second lowest effective NUPP alongside brokers in the $5-10M revenue band. This group’s NUPP and effective NUPP remained the same from last year.

Book of Business per Producer (commissions and fees)

Book of Business by Age

Effective NUPP

NUPP 1.7%

New Business

Average Book

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

$134,955

$936,347

Producer Success Rate 48.5%

$63,465

$448,487

   

12.0% 28.9% 23.8% 35.3%

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

$105,489

$1,012,158

Effective NUPP 0.8%

$119,168

$880,890

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.

17.6%

13.6%

 Over age 55

3.2%

 Age 46-55

3.3%

 Age 36-45

4.4%

 Up to age 35

2.8%

Average

Top Quartile

$10-25M

42