2004 Best Practices Study

AGENCIES WITH REVENUES OVER $25,000,000

PRODUCER INFORMATION A. New Producer Hiring

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

% of Agencies that Hired a New Producer During Last Fiscal Year

“We are making out- standing profits. If we want to grow in the future, though, we are going to have to invest these profits into busi- ness development, especially hiring new producers.”

PROFILE

93.3% 75.0% 100.0%

Number of New Producers Hired

6.3

5.7

8.5

REVENUES/ EXPENSES

Average Annual Compensation Per New Producer

$87,009 $63,333 $80,800

FINANCIAL STABILITY

Where New Producers Were Found

Directly from college or graduate school 13.8%

Outside of Industry* 14.0%

EMPLOYEE OVERVIEW

“Successful” New Producers 71.3% of producers hired over the last 5 years have met their production goals.

An insurance carrier 19.2%

PRODUCER INFO

Another insurance broker 53.0%

SERVICE STAFF INFO

*Other industries mentioned most often include Financial, Stock Brokerage, Manufacturing, Medical/Pharmaceuticals, and Office Equipment/Furniture.

TECHNOLOGY

Future Hiring Plans

+25% Profit

+25% Growth

Average

% of Agencies that Plan to Hire a New Producer During Current Fiscal Year

INSURANCE CARRIERS

93.3% 100.0% 100.0%

Number of New Producers to be Hired

4.2

3.0

7.5

APPENDIX

164