Scary producer #s
Jim Caragher
“The New Producer Recruiter” || Help Commercial Insurance Brokers to grow...with new producers || Help B2B sales pros pivot into the best B2B sales career...that they've likely never considered
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.
Helping Insurance Companies, MGAs, Captives, and Wholesalers add value and coverage to their clients, and lots of revenue to their portfolios??. ??Bolt-On Cyber & ID Theft Program Manager ??President of PIA National
7 年Well said Mr. Jim Caragher, CPCU, CIC. Insurance is a life fulfilling profession and we need to do a better job of transmitting that message to millenials.
a founder with a dream
7 年Preach Jim! You would think the multi trillion dollar insurance industry would be where it needs to be but we have lots of work to do!
Property & Casualty Consultant
7 年An ongoing problem for the last decade and more. Better to try and fail than not try at all!
Insurance Professional
7 年Wow I'm surprised by the average age