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. • Brokers in this revenue group hold the lowest Weighted Average Producer Age (WAPA) across all other Best Practices revenue groups of 47.3. Book of Business from producers up to age 35 is 14.7%, comparatively the largest across all revenue bands. • The over $100M revenue group posted the highest sales velocity at 15.0%.

Book of Business per Producer (commissions and fees)

Book of Business by Age

Effective NUPP

NUPP 2.0%

New Business

Average Book

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

$198,431

$1,786,493

Producer Success Rate 44.5%

$96,444

$909,822

   

14.7% 35.0% 25.2% 25.2%

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

$241,547

$1,434,373

Effective NUPP 0.9%

$69,916

$988,970

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.

17.7%

15.0%

 Over age 55

4.2%

 Age 46-55

3.5%

 Age 36-45

5.1%

 Up to age 35

2.1%

Average

Top Quartile

>$100M

50