P R A D

firms. For the top and bottom 25%, we excluded firms hiring only 1 or 2 producers. For firms hiring only one producer, the success rate will be either 100% or 0%, which makes the top and bottom quartile data less meaningful.

The table belows show the composite results for commercial lines and employee benefit producers.

Commercial Lines

Success Rate

% of Total Hiring

Bottom 25% 1

Top 25% 1

Average 2

Hiring Background:

Experienced producer: Ins. producer – came w/out book Ins. producer – came w/ book

38% 15%

21% 35% 15% 25% 11%

57% 77% 56% 57% 60%

86%

100%

Insurance – not sales Outside the industry

9%

82% 87% 81%

32%

College hire

6%

Total

100%

Employee Benefits

Success Rate

% of Total Hiring

Bottom 25% 1

Top 25% 1

Average 2

Hiring Background:

Experienced producer: Ins. producer – came w/out book Ins. producer – came w/ book

41% 22% 11% 21%

21% 71% 17%

57% 85% 58% 59% 42%

85%

100%

Insurance – not sales Outside the industry

83% 87% N/A

6%

College hire

5%

N/A

Total 100% 1 Average results of firms hiring three or more producers in this line of business over the past five years 2 Average results of all producers hired from each background Source: Supplemental survey

Lessons learned from this data include the following:

•

The distribution of hiring is heavily focused on experienced sales people from the insurance industry in both commercial lines and employee benefits (53% and 63% of the total, respectively). Hiring experienced producers who need little training is appealing; and if they can be hired with a book, the success rates are better. This hiring works for individual firms, but for our 38% 26% Commercial Lines Employee Benefits The % of total hires from outside the industry (including college) is surprisingly low.

18 Producer Recruiting & Development Study