2024 BPS Study_Final (8.16.24)

Unvalidated Producer Metrics

AGENCIES WITH REVENUES OF:

AVERAGE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Number of Unvalidated Producers

0.3

0.6

1.4

2.3

4.6

14.9

Average New Commissions

$22,729 $81,019 $46,519

$28,850 $56,501 $85,753

$30,455 $64,299 $64,023

$37,691 $83,081 $71,648

$68,009

$49,106

Average Book Serviced

$219,220 $120,768

$123,635

Avg Estimated Annual Compensation

$95,898

TOP QUARTILE

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Number of Unvalidated Producers

0.5

1.0

2.0

3.0

6.0

18.3

Average New Commissions

$24,986 $51,548

$35,986 $67,774

$45,374 $79,573

$52,927

$59,221

$60,034

Average Book Serviced

$120,527

$196,649

$139,961

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

NUPP (Net Investment in Unvalidated Producer Pay): Low

0.1%

1.8%

0.0%

0.2%

0.0%

0.1%

Average

1.8% 4.0%

3.9% 7.3%

2.3% 5.9%

1.7% 5.0%

1.7% 5.4%

1.6% 5.8%

High

Top Quartile

2.6%

4.4%

2.9%

1.9%

2.0%

2.1%

2023 BPS Average NUPP

3.1%

2.8%

2.0%

1.6%

1.3%

1.4%

Producer Success Rate

21.0%

38.6%

48.7%

54.0%

50.4%

50.0%

Effective NUPP: Average

0.4% 1.0%

1.5% 2.7%

1.1% 1.8%

0.9% 1.3%

0.8% 1.2%

0.8% 0.9%

Top Quartile

NUPP (Net Investment in Unvalidated Producer Pay), expressed as a percentage of net revenue, is the difference between what an agency pays its unvalidated producers and what the producers would earn under the agency’s normal commission schedule. It is an excellent metric to assess the financial investment an agency is making in its next generation of producer talent. 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 effectiv eness in recruiting and developing sales talent.

Effective NUPP

2.7%

1.8%

1.5%

1.3%

1.2%

1.2%

1.2%

1.1%

1.0%

0.9%

0.9%

0.8%

0.8%

0.8%

0.8%

0.7%

0.6%

0.4%

< $1.25M

$1.25-$2.5M

$2.5-$5M

$5-$10M

$10-$25M

> $25M

2023 BPS Average 2024 BPS Average 2024 BPS Top Quartile

Cross Category Comparison

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