2004 Best Practices Study

AGENCIES WITH REVENUES UNDER $500,000

Net Revenue Growth

EXECUTIVE PERSPECTIVES

30%

Average

20%

+25% Profit

PROFILE

+25% Growth

10%

0%

-10%

% Total Revenue

REVENUES/ EXPENSES

-20%

-30%

Commercial P&C

Personal P&C

Group L&H

P&C Service Fees

Individual L&H

Total Commissions & Fees

FINANCIAL STABILITY

F.

Future Revenue Growth Strategies

Study participants were asked to indicate their three most important strategies for enhancing or achieving future revenue growth.

EMPLOYEE OVERVIEW

% of Total Responses* 1 2 3

Access to Better Carriers

26.1% 4.3% 13.0%

PRODUCER INFO

Advertising/Promotions

8.7% 0.0% 34.8%

Agency/Book of Business Acquisitions

0.0%

17.4% 4.3%

SERVICE STAFF INFO

Cross-Selling/Total Account Development

39.1% 21.7% 17.4%

Producer Recruitment/Development

4.3% 13.0% 0.0%

New Business Initiatives - Prog Dev/Niche Marketing

8.7% 17.4% 8.7%

New Business Initiatives - Referrals/Centers of Influence

8.7% 26.1% 17.4%

TECHNOLOGY

New Business Initiatives - Strategic Alliances

4.3% 0.0% 4.3%

Other

0.0% 0.0% 0.0%

INSURANCE CARRIERS

*With:

1 = Critically Important 2 = Very Important 3 = Important

APPENDIX

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