2001 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

Producer Summary

Average Commissions in Book

Average New Commissions Produced

$600,000

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000

$500,000

$400,000

$300,000

$200,000

$100,000

$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

66.7% 23.3%

75.0% 12.5%

87.5% 12.5%

3.3% 6.7%

0.0%

0.0% 0.0%

None have signed

Have no producers except agency owners

12.5%

E. Producer's Ownership in their Book

Average

+25% Profit

25%Growth

20.0% 30.0% 40.0% 10.0%

25.0% 50.0% 12.5% 12.5%

0.0%

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

25.0% 62.5% 12.5%

None share in ownership of books

Have no producers except agency owners

F. CSR Productivity

1. Commercial P&C CSRs

Average

Top 25%

Number

3.9 7.0 1.5

High Low

Average Commissions Serviced

$245,180 $45,528

$338,012

Average Pay ($)

Average Pay (% of Book Serviced)

18.6%

How Time Was Spent:

4.4%

Selling New Business (New or Acct Rounding)

Marketing (Placement)

19.9%

Claims Processing Customer Service

7.3%

64.2%

Administration

4.1%

73