2017 Best Practices Study

Definitions

Sales Velocity

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.

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Top Quartile

23.4%

3.4%

Over age 55

Age 46-55

3.5%

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Age 36-45

Average

14.4%

4.2%

Up to age 35

3.2%

Comparison Group Average

Book of Business per Producer (commissions and fees)

Book of Business by Age

Notes & Definitions

• Weighted average producer age (WAPA) is 46. •

Up to age 35 10.1%

Effective NUPP, which is 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. It is the best overall measure of an agency’s effectiveness in recruiting and developing sales talent. With a Sales Velocity of 14.4%, this revenue group led among all BPS revenue categories. Each of the four producer age groups delivered comparable contributions to Sales Velocity, an indication of effective investments in next-gen producer talent. Personal lines producers in this group delivered the largest new PL business results ($70,909) in the entire Study .

New Business

Average Book

Over age 55 34.2%

Commercial P&C

$98,533

$931,987

Age 36- 45 26.2%

Personal P&C

$70,909

$371,111

Life/Health/ Financial

$136,040

$914,089

Multi- Line

$73,172

$586,179

Age 46- 55 29.6%

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Effective NUPP

Group Average:

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