• Shareholder and producer ages hold steady . The weighted average shareholder age ( WASA ) was 54.4 , holding steady from 54.3 years in 2023 , and the weighted average producer age ( WAPA ) was 49.9 , a slight increase from 49.6 years . Agencies should manage these metrics carefully as they are critical to long-term agency perpetuation . •
INDUSTRY INSIGHTS
BIG I BEST PRACTICES STUDY CONTINUES TO PROVIDE KEY INSIGHTS NEW REPORTING CYCLE STARTS IN 2025
The Best Practices Study update is the last in its threeyear cycle , examining the firms that qualified as a 2022 Best Practices agency . The annual study , conducted jointly in a longstanding partnership between the Big “ I " and Reagan Consulting for the past 31 years , provides critical performance benchmarks in six agency revenue categories ranging from under $ 1.25 million to over $ 25 million .
THE NUMBERS TO KNOW
Key findings from the 2024 update include :
• Organic growth reaches a record high . At 10.6 %, organic growth levels were driven by P & C rates , new business , and retention . All but two revenue categories showed improved organic growth results compared to 2023 , with the under $ 1.25mm group experiencing a 5.4 % rate , down from 6.4 %, and the over $ 25mm seeing a 9.8 % rate , down from 10.8 %.
• Profitability remained at historically high levels . At 25.7 %, Best Practices agency profitability remained steady , falling just behind last year ' s results of 25.8 %.
• The Rule of 20 results hit an all-time high . The
Rule of 20 , calculated by adding organic growth to 50 % of pro forma EBITDA ( earnings before interest , taxes , depreciation and amortization ), continued the past three years ' exceptional results with a record 24.8 . The Rule of 20 is the best metric with which to gauge overall agency health .
• Sales velocity holds steady . Sales velocity remains at healthy levels in each revenue category , averaging 14.5 % and holding steady to ' 23 ' s average of 14.7 %.
• Producer recruitment and development remains healthy . Net unvalidated producer payroll ( NUPP ), a measure of producer recruitment and development , held steady at 1.9 %, compared to 2.0 % in 2023 , which leaped from 1.1 % in 2022 . A healthy NUPP investment is 1.5 % -2.0 %, a marker hit by every Best Practices revenue category , indicating that Best Practices agencies are appropriately reinvesting in future growth engines .
• Shareholder and producer ages hold steady . The weighted average shareholder age ( WASA ) was 54.4 , holding steady from 54.3 years in 2023 , and the weighted average producer age ( WAPA ) was 49.9 , a slight increase from 49.6 years . Agencies should manage these metrics carefully as they are critical to long-term agency perpetuation . •
40 KANSAS INSURANCE AGENT & BROKER