2004 Best Practices Study

AGENCIES WITH REVENUES OVER $25,000,000

B1.

% of Revenues Derived from Largest Accounts

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

Largest Commission Account

1.8% 1.6% 2.1%

High

2.6%

PROFILE

Low

1.4%

10 Largest Commission Accounts

7.7% 8.9% 9.0%

High

12.0%

REVENUES/ EXPENSES

Low

2.3%

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

100.0% 100.0% 100.0%

Workers Comp Claims Adjusting/Admin (TPA)

46.7% 50.0% 75.0%

PRODUCER INFO

Group Health Claims Adjusting/Admin (TPA)

20.0% 25.0% 0.0%

Self Insurance Programs

53.3% 25.0% 50.0%

Risk Management Consulting

93.3% 100.0% 100.0%

SERVICE STAFF INFO

Premium Financing

73.3% 50.0% 75.0%

Pension/Profit Sharing (401(k)

80.0% 50.0% 75.0%

Human Resource Consulting

26.7% 0.0% 25.0%

Employee Leasing Products & Services (PEOs)

6.7% 0.0% 25.0%

TECHNOLOGY

Investment Products (Securities, Stocks, etc.)

33.3% 25.0% 25.0%

Other

0.0% 0.0% 0.0%

INSURANCE CARRIERS

“One of the ways we have gained competitive advantage is by elevating the services we offer in the executive risk area, and by having risk and loss man- agement capabilities. These services have helped differentiate us from our competitors.”

APPENDIX

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