2004 Best Practices Study

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

B.

Validated Producer Results 1.

EXECUTIVE PERSPECTIVES

Typical Producer Productivity

Commercial P&C

Group L&H

Personal P&C

Multi- Lines

4.2 8.0 1.0

2.2 6.0 1.0

2.8

4.1 8.0 1.0

Average

Number of Validated Producers

11.0

High Low

PROFILE

1.0

$89,563 $58,003 $44,189 $52,247

Average

New Commissions Produced Annually

$157,894 $100,063 $62,725 $79,524

Top 25%

REVENUES/ EXPENSES

$437,370 $321,841 $247,699 $342,056

Average

Total Commissions in Producer’s Book

$687,192 $555,785 $375,994 $553,795

Top 25%

Annual Pay per Producer

FINANCIAL STABILITY

$144,565 $140,555 $61,676 $117,493

Annual Pay as % of Producer’s Book

33.1% 43.7% 24.9% 34.3%

EMPLOYEE OVERVIEW

2.

Most Successful Producer Productivity

Commercial P&C

Group L&H

$95,394 $74,475

Average

PRODUCER INFO

New Commissions Produced Annually

$191,620 $132,912

Top 25%

$681,700 $467,596

Average

Total Commissions in Producer’s Book

SERVICE STAFF INFO

$1,169,944 $796,543

Top 25%

$9,117

$8,362

Average

Average Commissions per Account

$25,125 $23,932

Top 25%

TECHNOLOGY

How Most Successful Producers Spent Time

Commercial P&C Producer

Group L&H Producer

Soliciting New Business 42.0%

Management/ Personnel/Agency Administrative 7.8%

Soliciting New Business 40.7%

INSURANCE CARRIERS

Management/ Personnel/Agency Administrative 7.1%

Personal Training/ Education/

Personal Training/ Education/

Servicing Existing Accounts 44.5%

Servicing Existing Accounts 45.2%

Professional Development 6.5% %

APPENDIX

Professional Development 6.4% %

93