2001 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

Producer Summary

Average New Commissions Produced

Average Commissions in Book

$700,000

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

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0

Commercial P&C Group L&H Personal P&C Multi-Line

Average Top 25%

Commercial P&C Group L&H Personal P&C Multi-Line

Average Top 25%

D. Use of Restrictive Covenants

Average

+25% Profit

25%Growth

All producers have signed Some producers have signed

80.6% 12.9%

87.5% 12.5%

100.0%

0.0% 0.0% 0.0%

3.2% 3.2%

0.0% 0.0%

None have signed

Have no producers except agency owners

E. Producer's Ownership in their Book

Average

+25% Profit

25%Growth

10.0% 33.3% 53.3%

0.0%

0.0%

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

37.5% 62.5%

62.5% 37.5%

None share in ownership of books

3.3%

0.0%

0.0%

Have no producers except agency owners

F. CSR Productivity

1. Commercial P&C CSRs

Average

Top 25%

Number

7.7

High Low

14.6

3.5

Average Commissions Serviced

$289,074 $36,696

$411,380

Average Pay ($)

Average Pay (% of Book Serviced)

12.7%

How Time Was Spent:

4.0%

Selling New Business (New or Acct Rounding)

Marketing (Placement)

19.5%

Claims Processing Customer Service

3.5%

69.8%

Administration

3.2%

95