2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $500,000 AND $1,250,000

B1.

% of Revenues Derived from Largest Accounts

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

Largest Commission Account

4.2% 3.3% 4.9%

High

11.5%

PROFILE

Low

1.3%

10 Largest Commission Accounts

16.7% 14.8% 18.7%

High

34.9%

REVENUES/ EXPENSES

Low

4.1%

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

14.3% 0.0% 25.0%

Workers Comp Claims Adjusting/Admin (TPA)

0.0% 0.0% 0.0%

PRODUCER INFO

Group Health Claims Adjusting/Admin (TPA)

0.0% 0.0% 0.0%

Self Insurance Programs

14.3% 20.0% 25.0%

Risk Management Consulting

14.3% 0.0% 25.0%

SERVICE STAFF INFO

Premium Financing

64.3% 100.0% 100.0%

Pension/Profit Sharing (401(k)

28.6% 20.0% 25.0%

Human Resource Consulting

0.0% 0.0% 0.0%

Employee Leasing Products & Services (PEOs)

7.1% 0.0% 0.0%

TECHNOLOGY

Investment Products (Securities, Stocks, etc.)

21.4% 20.0% 25.0%

Other* 0.0% 0.0% 0.0% *Includes banking, surety, service contracts, MyWave, 125 plan administration, fuel tax calculation and per- mits for truckers, outsourcing of value added services, actuarial/legal on claims

INSURANCE CARRIERS

APPENDIX

36