2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $10,000,000 AND $25,000,000

B1.

% of Revenues Derived from Largest Accounts

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

Largest Commission Account

3.0% 2.9% 2.5%

High

11.9%

PROFILE

Low

1.1%

10 Largest Commission Accounts

13.3% 12.6% 9.9%

High

30.7%

REVENUES/ EXPENSES

Low

1.3%

B2.

% Providing Other Products and Services

FINANCIAL STABILITY

In addition to traditional P&C and L&H policies and support, Best Practices Agencies are providing their clients numerous other products and services.

+25% Profit

+25% Growth

EMPLOYEE OVERVIEW

Average

Loss Control/Engineering

78.1% 62.5% 87.5%

Workers Comp Claims Adjusting/Admin (TPA)

15.6% 12.5% 25.0%

PRODUCER INFO

Group Health Claims Adjusting/Admin (TPA)

3.1% 0.0% 12.5%

Self Insurance Programs

56.3% 37.5% 87.5%

Risk Management Consulting

81.3% 87.5% 75.0%

SERVICE STAFF INFO

Premium Financing

65.6% 75.0% 50.0%

Pension/Profit Sharing (401(k)

71.9% 75.0% 62.5%

Human Resource Consulting

25.0% 12.5% 12.5%

Employee Leasing Products & Services (PEOs)

18.8% 25.0% 0.0%

TECHNOLOGY

Investment Products (Securities, Stocks, etc.)

31.3% 37.5% 25.0%

Other* 6.3% 12.5% 12.5% *Includes banking, surety, service contracts, MyWave, 125 plan administration, fuel tax calculation and permits for truckers, outsourcing of value added services, actuarial/legal on claims

INSURANCE CARRIERS

APPENDIX

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