2006 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $1,250,000 AND $2,500,000

INSURANCE CARRIERS

2006

A.

Number of P&C Carriers Represented

+25% Profit

+25% Growth

Average

Personal Lines National

2.7

3.1

2.4

PROFILE

Regional

3.7

1.6

2.9

Commercial Lines National

5.6

12.3

11.1

REVENUES/ EXPENSES

Regional

5.5

5.4

6.0

B.

Number of Group Employee Benefits Carriers Represented

+25% Profit

+25% Growth

Average

FINANCIAL STABILITY

Average Total GEB Carriers

8.0

2.3

4.0

Average Number by Product GL&H

4.3

1.8

2.4

LTD

3.3

*

1.7

EMPLOYEE OVERVIEW

Dental

2.6

1.0

1.3

Retirement

2.9

*

1.5

C.

Commission Income Derived from Top Carriers

PRODUCER INFO

+25% Profit

+25% Growth

Average

% of Net Revenue from Top P&C Carrier

24.0% 26.1% 23.0%

SERVICE STAFF INFO

% of Net Revenue from Top 3 P&C Carriers

43.4% 48.8% 44.3%

% of Net Revenue from Top GL&H Carrier

4.8% 3.3% 3.1%

% of Net Revenue from Top 3 GL&H Carriers

7.4% 4.2% 3.5%

TECHNOLOGY

D.

Carrier Service Center Use

%

+25% Profit

+25% Growth

Average

% of Agency’s Personal Lines Commissions Placed in Service Centers % of Agency’s Commercial Lines Commissions Placed in Service Centers

INSURANCE CARRIERS

40.4%

*

*

2.5%

*

*

*Insufficient Data

2006 Best Practices Study

48