2004 Best Practices Study

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

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

51.6%

50.0%

37.5%

26.7%

28.6%

37.5%

EMPLOYEE OVERVIEW

$ Amount of Minimum Threshold

$925

*

$1,333

*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

9.7% 12.5% 0.0% 22.6% 12.5% 37.5% 61.3% 62.5% 50.0% 0.0% 12.5% 6.5%

SERVICE STAFF INFO

None share in ownership of books

Have no producers except agency owners

TECHNOLOGY

Use and Enforceability of Restrictive Covenants 83.9% of the respondents in this study group indicated that all produc- ers in their agencies have signed a Restrictive Covenant. 74.2% of this group believes that the enforceability of such agreements remains stable, while 9.7% believe their enforceability is decreasing. Only 6.0% of the respondents believe they are becoming more enforceable, while 9.7% are unsure at this time. 45.2% of the respondents also require CSRs to sign Restrictive Covenants.

INSURANCE CARRIERS

APPENDIX

70