2004 Best Practices Study

AGENCIES WITH REVENUES UNDER $500,000

Producer Summary

Average Commissions in Book

Average New Commissions Produced

EXECUTIVE PERSPECTIVES

$1,200,000 $1,000,000

$300,000 $250,000 .$200,000 $150,000 $100,000 $50,000

$800,000 $600,000 $400,000 $200,000

PROFILE

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%

REVENUES/ EXPENSES

C.

Commission Practices

+25% Profit

+25% Growth

Average

% of agencies paying Personal Lines renewal commissions to Commercial Producers % of agencies with Minimum Threshold for paying Commercial Lines renewal commissions

FINANCIAL STABILITY

44.4%

20.0%

75.0%

18.8%

0.0%

25.0%

EMPLOYEE OVERVIEW

$ Amount of Minimum Threshold

*

*

*

*Insufficient Data

D.

Producer’s Ownership in Their Book of Business

PRODUCER INFO

+25% Profit

+25% Growth

Average

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

4.3% 0.0% 0.0% 4.3% 16.7% 16.7% 34.8% 33.3% 16.7% 0.0% 50.0% 56.5%

SERVICE STAFF INFO

None share in ownership of books

Have no producers except agency owners

TECHNOLOGY

Use and Enforceability of Restrictive Covenants 21.7% of the respondents in this study group indicated that all non- owner producers in their agencies have signed a Restrictive Covenant. 56.5% of this group believes that the enforceability of such agreements remains stable, while 8.7% believe their enforceability is decreasing. None of the respondents believe they are becoming more enforceable, while an additional 34.8% are unsure either way. 31.8% of the respon- dents also require CSRs to sign Restrictive Covenants.

INSURANCE CARRIERS

APPENDIX

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