2004 Best Practices Study

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

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

+25% Profit

+25% Growth

“Service is the name of our industry. It is essential to retention. It is too expensive to lose business and write new business."

REVENUES/ EXPENSES

Average

Total Number of Service Related Personnel

10.1 8.6 10.7

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

25.8% 0.0% 50.0% 35.5% 25.0% 37.5% 48.4% 50.0% 50.0%

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) 6.1%

Number

3.7 8.6 1.0

Administration 3.3%

TECHNOLOGY

High Low

Marketing (Placement) 18.1%

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

$265,271 $398,073

INSURANCE CARRIERS

Claims Processing 5.3%

Customer Service 67.2%

$37,693

14.2%

APPENDIX

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