2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $2,500,000 AND $5,000,000

PRODUCER INFORMATION A. New Producer Hiring

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

"Although it is counterintu- itive, we have two produc- er/owners who are no longer focusing on per- sonal production of new business. Instead, one owner is focused on men- toring/ coaching new pro- ducers and the other is focused on agency work- flows (which support the new producers)."

Average

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

PROFILE

59.4%

*

87.5%

Number of New Producers Hired

1.7

*

1.7

REVENUES/ EXPENSES

Average Annual Compensation Per New Producer

$52,468

*

$49,700

FINANCIAL STABILITY

*Insufficient Data

Where New Producers Were Found

Outside of Industry* 30.7%

Directly from college or graduate school 5.3%

EMPLOYEE OVERVIEW

“Successful” New Producers 72.6% of producers hired over the last 5 years have met their production goals.

An insurance carrier 14.9%

PRODUCER INFO

Another insurance broker 49.1%

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

90.6% 100.0% 100.0%

Number of New Producers to be Hired

1.3

1.0

1.8

APPENDIX

92

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