Academy to Study High-Performance Agencies

The National Alliance Research Academy, based in Austin, Texas, announced it is once again conducting its Growth and Performance Standards (GPS) survey to gauge agency performance. Performance averages will be provided, as well as high-performance standards for agencies in the top 25 percent of their class.

In the same way a GPS unit gives guidance for trekkers and pilots, The Academy’s GPS study provides direction for independent insurance agency owners and managers. The study includes income and expenses averages, balance sheet ratios, and productivity measures for agencies of various sizes and regions. Agencies can compare their results to their peer group averages and also compare to the top-performing agencies.

Some survey results from the 2002 GPS study display critical performance indicators based on agency averages and the top 25 percent of agencies:
· Annual growth in revenues was 10 percent for all GPS agencies and 24 percent for the top 25 percent of agencies.
· Retention of commercial lines accounts averaged 90 percent for all agencies and 96 percent for the high performance agencies.
· Pre-tax agency profit was 9.80 percent on average and 19.61 percent for the top 25 percent of agencies.
· Productivity, as measured by revenues per person, was $96,334 on average and $137,363 for agencies in the top 25 percent.

Independent insurance agencies now have the opportunity to participate in this year’s study. Survey participants will receive an executive summary of the survey results, and the option for a half-price copy of the new publication.

To participate in the survey, go to www.TheNationalAlliance.com/GPS, send an email to tdeocampo@scic.com, or call (800) 633-2165. For further information, contact Jim Cuprisin, research director, jcuprisin@scic.com.

Topics Agencies