2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $1,250,000 AND $2,500,000

B1.

% of Revenues Derived from Largest Accounts

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

Largest Commission Account

4.2% 5.5% 4.4%

High

12.4%

PROFILE

Low

1.2%

10 Largest Commission Accounts

17.6% 22.5% 16.0%

High

48.9%

REVENUES/ EXPENSES

Low

4.7%

B2.

% Providing Other Products and Services

FINANCIAL STABILITY

In addition to traditional P&C and L&H policies and support, Best Practices Agencies are providing their clients numerous other products and services.

+25% Profit

+25% Growth

EMPLOYEE OVERVIEW

Average

Loss Control/Engineering

9.1% 16.7% 16.7%

Workers Comp Claims Adjusting/Admin (TPA)

4.5% 0.0% 0.0%

PRODUCER INFO

Group Health Claims Adjusting/Admin (TPA)

4.5% 0.0% 0.0%

Self Insurance Programs

27.3% 16.7% 16.7%

Risk Management Consulting

18.2% 16.7% 16.7%

SERVICE STAFF INFO

Premium Financing

54.5% 83.3% 33.3%

Pension/Profit Sharing (401(k)

27.3% 33.3% 33.3%

Human Resource Consulting

9.1% 0.0% 0.0%

Employee Leasing Products & Services (PEOs)

13.6% 0.0% 16.7%

TECHNOLOGY

Investment Products (Securities, Stocks, etc.)

22.7% 16.7% 16.7%

Other* 9.1% 0.0% 33.3% *Includes banking, surety, service contracts, MyWave, 125 plan administration, fuel tax calculation and permits for truckers, outsourcing of value added services, actuarial/legal on claims

INSURANCE CARRIERS

APPENDIX

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