The Independent Insurance Agents & Brokers of America (the Big "I") has released its annual Best Practices Study. The study also includes the listing of the 2008 Best Practice Agencies.
The independent study includes the "Rule of 20″ statistic which calculates if an agency creates value for its shareholders. Positive organic growth was difficult to achieve for most agencies and shareholder returns were adversely impacted. Only one study group, the $1.25 to $2.5 million revenue group, achieved a "Rule of 20″ outcome greater than 20, the desired threshold.
Although achieving positive revenue growth was difficult, Best Practices agencies invested in new production talent. The majority of those agencies with revenues over $2.5 million hired at least 1.5 new producers during the last fiscal year, with the largest agencies hiring an average of 9.4 new producers. The average starting salary across all the revenue categories ranged from $52,000 to $95,000.
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