2001 Best Practices Study

Analysis of Agencies with Revenues Between $500,000 and $1,250,000

C. Receivables

1. Receivables/Payables Ratio

This factor measures the collection practices of an agency, with a lower ratio representing more timely collections. (Calculated by dividing total receivables by total payables at a given point in time.) Average Top 25%

Receivables/Payables Ratio

37.2%

-12.7%

2. Aged Receivables

Average

Top 25%

Over 60 Over 90

-61.4%

3.8% 2.2%

4.7%

CARRIER REPRESENTATION

A. Number of Carriers Represented

Average

+25% Profit

+25% Growth

Personal Lines National

2.8 3.3

2.2 3.1

2.1 4.0

Regional

Commercial Lines National

3.9 4.9

3.8 6.2

4.9 8.4

Regional

Total Carriers

14.9

15.3

19.4

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

28.7% 50.6%

28.8% 54.2%

25.2% 47.5%

C. Service Center Use

Total Pers'l Lines Commissions placed in Carrier Service Center Total Comm'l Lines Commissions placed in Carrier Service Center

19.0%

19.1%

*

5.8%

8.2%

5.3%

* - Insufficient Data

TECHNOLOGY

A. Agency Management System Utilized:

% Utilitizing

AMS

32.4% 50.0% 11.8%

Applied Systems

Ebix

CAIR Doris InStar

0.0% 0.0% 2.9% 0.0% 0.0% 0.0% 5.9%

Strategic Insurance Software

irs-aims

VRC Other

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