2001 Best Practices Study

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

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

49.6%

-4.3%

2. Aged Receivables

Average

Top 25%

Over 60 Over 90

63.9% 58.7%

5.7% 2.6%

CARRIER REPRESENTATION

A. Number of Carriers Represented

Average

+25% Profit

+25% Growth

Personal Lines National

7.1 3.8

4.9 1.9

5.3 2.3

Regional

Commercial Lines National

15.1

11.6

9.4 3.6

Regional

6.3

5.5

Total Carriers

32.3

23.9

20.5

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

14.2% 28.6%

16.3% 32.9%

14.4% 30.4%

C. Service Center Use

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

8.0%

*

*

1.5%

3.0%

0.7%

* - Insufficient Data

TECHNOLOGY

A. Agency Management System Utilized:

% Utilitizing

AMS

41.9% 58.1%

Applied Systems

Ebix

0.0% 0.0% 0.0% 0.0% 0.0%

CAIR Doris InStar

Strategic Insurance Software

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