2004 Best Practices Study

AGENCIES WITH REVENUES UNDER $500,000

SERVICE STAFF INFO

EXECUTIVE PERSPECTIVES

A.

Service Related Personnel

Service Related Personnel are defined in the study as typically non-commissioned employees who have responsibility -- either directly (e.g., Account Executives (AE), Account Managers (AM), Customer Service Representatives (CSRs), Assistant CSRs, etc.) or indirectly (e.g., Claims Specialist, Placer/Marketer, etc.) -- to provide or support the delivery of service to the agency’s clients.

PROFILE

"My clients like the fact that a 'real' person answers the phone or when they come in, we know their name. The 'home town' service we offer is what gives us an edge over the big guy up the road!"

+25% Profit

+25% Growth

REVENUES/ EXPENSES

Average

Total Number of Service Related Personnel

2.6 2.4 2.0

FINANCIAL STABILITY

Service Structure

+25% Profit

+25% Growth

% of Agencies Having:

Average

Separate/Dedicated Marketing Department Separate/Dedicated Claims Department Assistants for CSRs/Account Managers

4.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

EMPLOYEE OVERVIEW

B.

CSR Productivity by Line of Business In the following charts the number of CSRs includes Account Executives (non-producer position) , Senior CSRs, CSRs, Account Managers, Assistant CSRs, etc. (i.e., positions with main responsibility for client service or main responsibility to support the AE, CSR/AM in providing client services) . It also includes the department managers who spend a portion of their time servicing clients. Respondents were instructed to use decimals to accurately represent the actual number of full-time equivalent client service positions.

PRODUCER INFO

SERVICE STAFF INFO

How Time Was Spent

Commercial P&C CSRs

Average Top 25%

Selling New Business (New or Acct Rounding) 11.3%

Number

1.1 2.0 0.5

Administration 10.0%

TECHNOLOGY

High Low

Marketing (Placement) 13.8%

Average Commissions Serviced Average Pay ($) Average Pay (as % of Book Serviced)

$139,096 $211,672

INSURANCE CARRIERS

Customer Service 58.2%

$31,442

Claims Processing 6.8%

22.6%

APPENDIX

23