2021 Best Practices Study

Executive Summary

Agencies over $25.0 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.

3.0%

Top Quartile

20.6%

Over age 55

4.7%

Age 46-55

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Age 36-45

Average

4.7%

14.0%

Up to age 35

1.6%

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. Only 11.4% of this group’s Sales Velocity came from the freshman class (under age 36). With a NUPP of 2.0%, this revenue group is investing more in unvalidated producers than any other revenue category in this year’s Study .

Up to age 35 7.6%

New Business

Average Book

Over age 55 34.3%

Commercial P&C

$144,796

$1,168,210

Age 36- 45 26.7%

Personal P&C

$101,275

$498,697

Life/Health/ Financial

$169,532

$1,205,822

Multi- Line

$67,515

$961,034

Age 46- 55 31.3%

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•

Effective NUPP

Group Average:

Producer Success Rate 48.1%

NUPP

Effective NUPP

2.0%

1.0%

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