2004 Best Practices Study
AGENCIES WITH REVENUES BETWEEN $500,000 AND $1,250,000
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
59.3%
71.4%
75.0%
4.2%
0.0%
0.0%
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
18.5% 0.0% 0.0% 22.2% 37.5% 37.5% 40.7% 50.0% 37.5% 0.0% 12.5% 18.5%
SERVICE STAFF INFO
None share in ownership of books
Have no producers except agency owners
TECHNOLOGY
Use and Enforceability of Restrictive Covenants 55.2% of the respondents in this study group indicated that all produc- ers in their agencies have signed a Restrictive Covenant. 53.3% of this group believes that the enforceability of such agreements remains stable, while 10.0% believe their enforceability is decreasing. 10.0% of the respondents believe they are becoming more enforceable, while an additional 26.7% are unsure either way. 40.0% of the respondents also require CSRs to sign Restrictive Covenants.
INSURANCE CARRIERS
APPENDIX
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