Read Reagan Consulting’s 2017 Best Practices Study: Reagan Consulting Best Practices
Two scary producer numbers — 50 and 1 — jump out.
They reveal commercial insurance broking’s epic failure to replenish its sales force.
The 2 numbers underline these 2 big findings about agent/brokers:
Finding #1: The insurance broker industry continues to age.
WAPA (Weighted Average Producer Age) stands at 49.5 in 2016.
Yes, the average producer age is 50.
WAPA keeps going up too — 9 years in a row.
Finding #2: People investments are lagging.
Effective NUPP (Net Investment in Unvalidated Producer Pay) measures new producer investment as a % of broker revenue.
Effective NUPP < 1%.
Should be north of 2%.
Top performing agent/brokers NUPP investments = 3 or 4%.
What do these 2 scary numbers say to commercial insurance brokers?
Step up your investment in new producers. Odds are you’re under-investing now.
Worry less about hiring the wrong new producers.
Worry more about not hiring enough new producers.
P.S. I know someone who can help you with this stuff.