Agency Consulting Group, Inc. has collected data and published Composite Groups of insurance agency operating performance since 1987 in order to provide benchmarks against which agencies can measure their operating performance and progress.
In the past, thousands of agencies have sent Agency Consulting Group, Inc. their annual operating statements each year and we have collated the data through our master databases and published the Composite Group results each fall. The Composite Groups were divided into agencies with less than $1 Million revenue (commission plus other income — not premium), agencies with between $1 Million and $2 Million revenue, agencies with between $2 Million and $3 Million revenue and agencies with over $3 Million revenue. Each agency submitting their operating statement received an analysis of their performance compared to the appropriate Composite Group and telephone consulting support to answer questions and provide solutions to operating problems. The time needed to perform these analyses required a substantial charge for this service.
This permitted agencies to benchmark their performance against their peers, as well as against their own historical performance each year. Included in the analysis and Composite Group studies are the important keys to agency success, Revenue per Employee, Compensation per Employee, and Spread the productivity factors in every independent agency.
In 2000, Agency Consulting Group, Inc. automated the data collection and analysis process through the Internet. This revolutionized the Composite Group concept because the agencies’ analyses were done in Real-Time with the Composite Groups being updated continuously rather than annually. Since updates will be on going, an agency will be able to compare its performance against its peers at any time of the year.
This lowered the cost of the service, but there was still manual intervention for the data.
In 2003 Agency Consulting Group, Inc. fully automated its database through secure servers on the Internet to permit agencies to input their own data and ELIMINATE THE COST OF THE SERVICE! We also added the important Balance Sheet Liquidity Ratios to the Composite Group database. Most importantly, we responded to agencies and associations all over the country by providing STATE SPECIFIC Composite Groups (as well as continuing to provide National Size-Specific Composite Groups).
Beginning early in 2003, agencies can complete a simple form on our website that will automatically add their data to the State (or other sponsoring homogeneous group) database. A User Name and Password (agency chosen password) is returned to permit the participating agencies to view the State and National Composite Groups. A low cost Quick Analysis ($30) is also available that will compare the agency’s results against that of the Composite Group and point out Exceptional or Aberrant Areas of Performance or Liquidity for the specific agency.