2001 Best Practices Study
Analysis of Agencies with Revenues Greater Than $10,000,000
CARRIER REPRESENTATION
A. Number of Carriers Represented
Average
+25% Profit
+25% Growth
Personal Lines National
9.3 3.3
9.6 5.1
5.4 4.1
Regional
Commercial Lines National
31.0 28.9 72.5
34.5 25.0 74.3
19.6 51.8 80.9
Regional
Total Carriers
B. Commission Income as % of Net Revenue
Average
+25% Profit
+25% Growth
% of Net Rev from Top Carrier % of Net Rev from Top 3 Carriers
11.1% 22.7%
11.8% 23.3%
12.7% 22.5%
C. Service Center Use
Total Pers'l Lines Commissions placed in Carrier Service Center Total Comm'l Lines Commissions placed in Carrier Service Center
6.7%
*
*
6.3%
24.7%
*
* - Insufficient Data
TECHNOLOGY
A. Agency Management System Utilized:
% Utilitizing
AMS
40.0% 30.0% 23.3%
Applied Systems
Ebix
CAIR Doris InStar
6.7% 0.0% 0.0% 0.0% 0.0% 0.0% 6.7%
Strategic Insurance Software
irs-aims
VRC Other
B. Information Technology Expense (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Total IT Expense for Fiscal Yr (1)
1.9%
1.8%
1.5%
(1) Includes hardware/software leasing, supplies, maintenance & maintenance contracts, training, data communications, website development/maintenance, computer depreciation, and software amortization
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