2021 Best Practices Study

Executive Summary

Agencies under $1.25 Million in Revenue

Production

Definitions

Sales Velocity

Age Banding of Sales Velocity

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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.

Top Quartile

27.5%

Over age 55

3.2%

Age 46-55

3.2%

•

Age 36-45

2.4%

Average

14.2%

Up to age 35

5.5%

Comparison Group Average

Book of Business per Producer (commissions and fees)

Book of Business by Age

Notes & Definitions

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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. This revenue category tied with the $2.5-$5.0M revenue category for the highest Sales Velocity in thi s year’s Best Practices Study (14.2%). This group scored lowest in NUPP and Effective NUPP in this year’s Study , an indication that producer recruitment, hiring and development may be lagging in these smaller agencies.

Over age 55 21.1%

New Business

Average Book

Up to age 35 16.4%

Commercial P&C

$57,102

$262,470

Personal P&C

Age 36- 45 11.6%

$45,416

$182,384

Life/Health/ Financial

*

*

Multi- Line

$33,668

$530,688

Age 46- 55 40.9%

•

Effective NUPP

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Group Average:

Producer Success Rate 58.2%

NUPP

Effective NUPP

0.4%

0.2%

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