|
Risk Management Platform
Benefits Summary: Insurance Agency with
Annual Revenue of $8 Million
|
|
Benefit Category
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Total
|
|
Agency Operating Expenses
|
|
|
|
|
|
|
|
1.
|
Soft Cost realized
through efficiencies gained in servicing client base
(50% of 1 employee at $40K)
|
$ 20,000
|
$ 20,000
|
$ 20,000
|
$ 20,000
|
$ 20,000
|
$ 100,000
|
|
2.
|
Revenue from Client Access
@ $500/client x 25 registrations per year
|
$ 12,500
|
$ 25,000
|
$ 37,500
|
$ 50,000
|
$ 62,500
|
$ 187,500
|
|
Subtotal
|
$ 32,500
|
$ 45,000
|
$ 57,500
|
$ 70,000
|
$ 82,500
|
$ 287,500
|
|
|
|
|
|
|
|
|
|
|
Accounts Lost
|
|
|
|
|
|
|
|
3.
|
Commission dollars for a 2% Improvement in Account Retention (Hard
Dollars@13% Comm.)
|
$
20,800
|
$
41,600
|
$
62,400
|
$
83,200
|
$ 104,000
|
$
312,000
|
|
4.
|
Soft Costs realized in a 2% Improvement in Account Retention. (Rough
Notes)
|
$
72,800
|
$ 145,600
|
$ 218,400
|
$
364,000
|
$ 436,800
|
$
1,237,600
|
|
Subtotal
|
$
93,600
|
$
187,200
|
$ 280,800
|
$
447,200
|
$ 540,800
|
$
1,549,600
|
|
|
|
|
|
|
|
|
|
|
Accounts Won
|
|
|
|
|
|
|
|
5.
|
5% Growth attributed directly to RMC (Hard Dollars@13% Comm)
|
$
52,000
|
$
104,000
|
$ 156,000
|
$
208,000
|
$ 260,000
|
$
780,000
|
|
Subtotal
|
$
52,000
|
$
104,000
|
$ 156,000
|
$
208,000
|
$ 260,000
|
$
780,000
|
|
|
|
|
|
|
|
|
|
|
Producer Retention
|
|
|
|
|
|
|
|
6.
|
5 year average cost of hiring and training additional producers
|
$
10,000
|
$
10,000
|
$
10,000
|
$
10,000
|
$
10,000
|
$
50,000
|
|
|
|
|
|
|
|
|
|
|
Total
Benefits: Per Year
|
$
188,100
|
$
346,200
|
$
504,300
|
$
735,200
|
$ 893,300
|
$
2,667,100
|
|
RMC Expense
|
$ 25,000
|
$
25,000
|
$
25,000
|
$
25,000
|
$
25,000
|
$
125,000
|
|
Net Gain
|
$
163,100
|
$
321,200
|
$ 479,300
|
$
710,200
|
$ 868,300
|
$
2,542,100
|
|
