2006 Best Practices Study

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

INSURANCE CARRIERS

2006

A.

Number of P&C Carriers Represented

+25% Profit

+25% Growth

Average

Personal Lines National

4.0

4.3

2.9

PROFILE

Regional

4.9

5.0

4.0

Commercial Lines National

5.6

5.0

6.5

REVENUES/ EXPENSES

Regional

8.8

12.3

7.3

B.

Number of Group Employee Benefits Carriers Represented

+25% Profit

+25% Growth

Average

FINANCIAL STABILITY

Average Total GEB Carriers

17.3

11.8

11.5

Average Number by Product GL&H

7.2

5.6

6.0

LTD

4.1

2.6

3.3

EMPLOYEE OVERVIEW

Dental

5.3

4.0

3.8

Retirement

4.1

2.3

1.3

C.

Commission Income Derived from Top Carriers

PRODUCER INFO

+25% Profit

+25% Growth

Average

% of Net Revenue from Top P&C Carrier

17.6% 17.1% 22.4%

SERVICE STAFF INFO

% of Net Revenue from Top 3 P&C Carriers

32.0% 33.5% 31.8%

% of Net Revenue from Top GL&H Carrier

6.1% 5.5% 5.5%

% of Net Revenue from Top 3 GL&H Carriers

10.3% 8.8% 8.1%

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

22.0%

*

*

6.6% 13.1% 9.1%

*Insufficient Data

2006 Best Practices Study

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