Independent Agencies Growing
In its annual report tracking independent agency performance, the Academy of Producer Insurance Studies said it found that agencies saw signs of improvement in their bottom lines, while some continued to grow through mergers and acquisitions.
In the latest edition of the group's "Growth and Performance Standards," some of the studys recent findings highlighted in a statement by the Austin, Texas-based association were that:
On average, total agency revenues grew 10 percent, compared to an increase of 8 percent in 1999.
Eleven percent of all surveyed agencies purchased or merged with another agency within the past year.
Average pre-tax profit is now 9.8 percent, up from 7.42 percent in 1999.
The average agency achieves revenues per person of $96,334–a 17 percent increase from 1999.
The average commercial lines commission per account is $886, up from $763 in 1999.
Commercial line customer service representatives handle an average of $228,894 in commission business, up from $195,066 in the 1999 study.
The study, the association said, provides averages but also offers critical performance indicators of the best performing agencies. Agency owners can use the results of the study to compare their performance to their peers.
Information on ordering the study can be found by e-mailing alliance@scic.com. The associations Web site is www.scic.com.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, January 6, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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