2017 Best Practices Study

Definitions

Sales Velocity

Age Banding of Sales Velocity

Sales Velocity is a critical metric in determining organic growth. It is defined as this year’s written new business divided by last year’s commissions and fees. Age Banding of Sales Velocity can help a firm assess where new business and growth are coming from and prepare for perpetuation.

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2.4%

Top Quartile

17.8%

Over age 55

4.5%

Age 46-55

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Age 36-45

Average

11.4%

2.4%

Up to age 35

2.1%

Comparison Group Average

Book of Business per Producer (commissions and fees)

Book of Business by Age

Notes & Definitions

• Weighted average producer age (WAPA) is 46. •

Effective NUPP, which is the product of an agency’s investment in unvalidated producers (NUPP) and success rate in hiring producers (Producer Success Rate), is expressed as a percentage of net revenue. It is the best overall measure of an agency’s effectiveness in recruiting and developing sales talent. With an average of only 11.4%, this revenue group had the lowest Sales Velocity in the Study . This revenue group’s top quartile Sales Velocity generators (17.8%) also performed at the lowest level among all Study revenue categories. Commercial producers outperformed L/H/F producers by 2:1 both in terms of new business generated and average books serviced.

Up to age 35 11.6%

New Business

Average Book

Over age 55 32.7%

Commercial P&C

$74,052

$692,637

Age 36- 45 18.9%

Personal P&C

$42,927

$267,678

Life/Health/ Financial

$35,047

$319,564

Multi- Line

$62,952

$633,373

Age 46- 55 36.8%

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Effective NUPP

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Group Average:

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