2001 Best Practices Study

Analysis of Agencies with Revenues Less Than $500,000

Producer Summary

Average Commissions in Book

Average New Commissions Produced

$140,000

$40,000

$120,000

$35,000

$30,000

$100,000

$25,000

$80,000

$20,000

$60,000

$15,000

$40,000

$10,000

$5,000

$20,000

$0

$0

Commercial P&C

Group L&H

Personal P&C

Multi-Line

Commercial P&C Group L&H

Personal P&C

Multi-Line

Average Top 25%

Average Top 25%

D. Use of Restrictive Covenants

Average

+25% Profit

25%Growth

All producers have signed Some producers have signed

32.0% 0.0% 28.0% 40.0%

14.3% 0.0% 57.1% 28.6%

28.6% 0.0% 28.6% 42.9%

None have signed

Have no producers except agency owners

E. Producer's Ownership in their Book

Average

+25% Profit

25%Growth

8.0% 8.0%

14.3%

14.3%

All producers share in ownership of books Some producers share in ownership of books

0.0%

0.0%

40.0% 44.0%

42.9% 42.9%

28.6% 57.1%

None share in ownership of books

Have no producers except agency owners

F. CSR Productivity

1. Commercial P&C CSRs

Average

Top 25%

Number

1.0 1.5 0.5

High Low

Average Commissions Serviced

$114,389 $25,313

$190,741

Average Pay ($)

Average Pay (% of Book Serviced)

22.1%

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