2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $2,500,000 AND $5,000,000

B1.

% of Revenues Derived from Largest Accounts

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

Largest Commission Account

3.8% 3.7% 2.3%

High

21.4%

PROFILE

Low

1.3%

10 Largest Commission Accounts

15.2% 15.4% 12.5%

High

48.3%

REVENUES/ EXPENSES

Low

2.1%

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

23.1% 14.3% 28.6%

Workers Comp Claims Adjusting/Admin (TPA)

3.8% 0.0% 0.0%

PRODUCER INFO

Group Health Claims Adjusting/Admin (TPA)

3.8% 0.0% 0.0%

Self Insurance Programs

38.5% 28.6% 28.6%

Risk Management Consulting

42.3% 57.1% 42.9%

SERVICE STAFF INFO

Premium Financing

53.8% 57.1% 28.6%

Pension/Profit Sharing (401(k)

53.8% 57.1% 28.6%

Human Resource Consulting

23.1% 14.3% 14.3%

Employee Leasing Products & Services (PEOs)

26.9% 42.9% 14.3%

TECHNOLOGY

Investment Products (Securities, Stocks, etc.)

23.1% 14.3% 28.6%

Other* 0.0% 0.0% 0.0% *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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