2006 Best Practices Study

2006 BEST PRACTICES STUDY

INTRODUCTION

Since 1993 the annual Best Practices Study has served as a tool to help agency own- ers and managers understand how their business operations perform and measure up to the top performing firms across the country. It is a “must have” for those agencies that want to become the best they can be. The 2006 Best Practices Study Executive Update provides critical performance benchmarks in seven agency revenue categories ranging from Under $500,000 to Over $25,000,000 . Agencies can measure, evaluate, and compare results for agency opera- tions including:

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Income & Expense Distribution Revenue & Profitability Growth

Production & Service Staff Compensation/Productivity

Technology Expenses

P&C and GL&H Carrier Representation

Much more

This year’s Executive Update continues to follow the performance of the 195 agencies selected in 2004 as Best Practices Agencies. (NOTE: New agencies are selected every third year.) Although this publication updates critical financial and operational bench- marks and can be used on a standalone basis, readers may also want to reference the 2004 Best Practices Study for more comprehensive information on the Best Practices Agencies including:

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Factors most critical to success

Top challenges

Keys for maximizing productivity

Keys for gaining a competitive advantage

Additional operational results and business practices

The comprehensive 2004 study is available in hard copy only and can be purchased from the Independent Insurance Agents & Brokers of American (IIABA) Education Department. Order forms can be downloaded at http://bp.reaganconsulting.com/.

About the Study

The History The annual Best Practices Study originated in 1993 as an initiative by the Independent Insurance Agents & Brokers of America (IIABA) to help its members build and maintain the value of their most important assets, their agencies. By studying the leading agen- cies and brokers in the country, the association hoped to provide member agents with meaningful performance benchmarks and business strategies that could be adopted or