2001 Best Practices Study

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

CARRIER REPRESENTATION

A. Number of Carriers Represented

Average

+25% Profit

+25% Growth

Personal Lines National

2.8 3.8

2.8 4.9

3.0 2.0

Regional

Commercial Lines National

7.0 5.1

15.0

3.4 4.3

Regional

7.0

Total Carriers

18.7

29.6

12.6

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

22.3% 42.9%

23.9% 44.7%

17.4% 34.9%

C. Service Center Use

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

25.8%

*

*

5.8%

*

*

* - Insufficient Data

TECHNOLOGY

A. Agency Management System Utilized:

% Utilitizing

AMS

40.0% 43.3%

Applied Systems

Ebix

3.3% 0.0% 0.0% 0.0% 0.0% 3.3% 0.0%

CAIR Doris InStar

Strategic Insurance Software

irs-aims

VRC Other

10.0%

B. Information Technology Expense (as % of Net Revenues)

Average

+25% Profit

+25% Growth

Total IT Expense for Fiscal Yr (1)

2.1%

1.7%

1.8%

(1) Includes hardware/software leasing, supplies, maintenance & maintenance contracts, training, data communications, website development/maintenance, computer depreciation, and software amortization

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