2021 Best Practices Study

Executive Summary

Agencies between $5.0 Million and $10.0 Million in Revenue

Production

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.

2.2%

Top Quartile

17.9%

2.4%

Over age 55

Age 46-55

3.7%

•

Age 36-45

Average

11.2%

Up to age 35

3.0%

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. This group posted the lowest Sales Velocity result (11.2%) in this year’s Study . That said, younger producers (younger than age 46) delivered the highest contribution to Sales Velocity (60%) in this year’s Study .

Up to age 35 15.9%

New Business

Average Book

Over age 55 31.4%

Commercial P&C

$65,502

$596,279

Personal P&C

$51,794

$334,710

Life/Health/ Financial

Age 36- 45 31.3%

$64,759

$482,351

Multi- Line

$62,567

$524,810

Age 46- 55 21.4%

•

Effective NUPP

•

Group Average:

Producer Success Rate 52.2%

NUPP

Effective NUPP

1.1%

0.6%

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