Fifty-six percent. That’s the overall success rate of producer hires in the insurance distribution system in the past 5 years, according to a new study from Reagan Consulting.
It’s 53% in employee benefits, 56% in commercial lines, and 59% in personal lines according to the Reagan Consulting Producer Recruiting & Development (PR&D) study, released at the end of 2014.
The Reagan Consulting Producer Recruiting & Development Study was conceived, conducted, written and produced by Reagan Consulting in an effort to help agents and brokers understand their producer hiring needs and more effectively recruit and develop producers. A news release about the infographic and study says “adding production talent is the chief challenge in our industry – an agent and broker’s ability to meet this challenge will determine its ability to grow, prosper and even to remain privately owned.”
Among the insight from the infographic:
• The top 25% of firms will hire 10 producers to end up with 8 successful hires. The bottom 25% will have to hire more than four times as many producers to end up with the same results.
• 35% of new producer hires come from outside the industry (29% from outside the industry and another 6% out of college).
• 39% of new producer hires are experienced producers without their book of business, while 16% are experienced producers with their book of business.
• 63% is the success rate for producers endorsed by a pre-hiring test, which is 12 points higher than producers not recommended by a test or with inconclusive results.
The study was sponsored by: Amerisure/Agency Business Solutions, Chubb, Cincinnati, CNA, Hanover, The Hartford, and the Council of Insurance Agents and Brokers.
• Get the infographic to save and share by clicking here.
• Download the full Producer Recruiting & Development Study by clicking here.
About Reagan Consulting: Reagan Consulting is a management consulting firm providing strategic consulting, valuation, and merger-and-acquisition (M&A) services to the independent insurance distribution system. The firm's services include appraisals of fair market value, strategic planning, M&A advisory, ownership perpetuation planning, key employee compensation and equity plans, and agency performance benchmarking. Reagan Consulting co-developed the well-known Best Practices study and produces the quarterly Organic Growth & Profitability benchmark survey.
- Agents Behaving Badly Part II
- Surprise! Do your clients know how Social Security income is taxed?
- Millennials’ love/hate relationship with insurance
- Bigger investment in purchased leads drives higher revenue and faster growth, new report affirms
- InsureTech news: Slice testing rideshare app; Lifester to match consumers, agents; Decisely gets $60M boost; Lemonade expands to Illinois
- Present your way to the top: 7 rules for building confidence
- Industry trade media brands disappearing: A closer look
- Millennial misconceptions of life insurance: a barrier to life ownership