2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $5,000,000 AND $10,000,000

PRODUCER INFORMATION A. New Producer Hiring

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

"We got over our love affair with acquisitions and began focusing on young producers. We wasted a lot of time and money doing bad deals with tired pro- ducers. We do much better in attracting and developing young kids who still have some gas in their tanks."

Average

% of Agencies that Hired a New Producer During Last Fiscal Year

PROFILE

67.7% 37.5% 62.5%

Number of New Producers Hired

2.1

2.3

1.4

REVENUES/ EXPENSES

Average Annual Compensation Per New Producer

$58,593

*

$65,250

FINANCIAL STABILITY

*Insufficient Data

Where New Producers Were Found

Outside of Industry* 25.3%

Directly from college or graduate school 8.0%

EMPLOYEE OVERVIEW

“Successful” New Producers 76.3% of producers hired over the last 5 years have met their production goals.

PRODUCER INFO

Another insurance broker 47.7%

An insurance carrier 19.0%

SERVICE STAFF INFO

*Other industries mentioned most often include Financial, Stock Brokerage, Manufacturing, Medical/Pharmaceuticals, and Office Equipment/Furniture.

TECHNOLOGY

Future Hiring Plans

+25% Profit

+25% Growth

Average

% of Agencies that Plan to Hire a New Producer During Current Fiscal Year

INSURANCE CARRIERS

87.1% 87.5% 87.5%

Number of New Producers to be Hired

2.3

1.6

1.9

APPENDIX

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