2020 Best Practices Study

Definitions

Sales Velocity

Age Banding of Sales Velocity

Sales Velocity is a critical metric in determining organic growth. It is defined as this year’s written new business divided by last year’s commissions and fees. Age Banding of Sales Velocity can help a firm assess where new business and growth are coming from and prepare for perpetuation.

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2.7%

Top Quartile

20.2%

Over age 55

4.1%

Age 46-55

•

Age 36-45

3.1%

Average

13.8%

Up to age 35

3.8%

Comparison Group Average

Book of Business per Producer (commissions and fees)

Book of Business by Age

Notes & Definitions

• Weighted average producer age (WAPA) is 46. •

Effective NUPP, which is the product of an agency’s investment in unvalidated producers (NUPP) and success rate in hiring producers (Producer Success Rate), is expressed as a percentage of net revenue. It is the best overall measure of an agency’s effectiveness in recruiting and developing sales talent. Agencies in the $2.5 – 5.0 million revenue category had the highest producer success rate among all revenue categories in the Study at 73%. Life/Health/Financial producers generated the most significant

Up to age 35 14.0%

New Business

Average Book

Over age 55 34.5%

Commercial P&C

$84,811

$646,620

Age 36- 45 17.0%

Personal P&C

$60,024

$270,105

Life/Health/ Financial

$116,330

$297,837

Multi- Line

$57,113

$575,894

Age 46- 55 34.5%

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Effective NUPP

•

Group Average:

new business (an average of $116,330) among all lines of business.

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