Nationally, the average total compensation was $40,000 for new, inexperienced producers and $71,547 for seasoned producers.

In terms of owner compensation, the survey found that owning in a profitable firm and having the ability to dispense excess profits as bonuses causes owners to place more importance on profitability than on growth.

While the size of the book of business and percentage of ownership in the agency are the most important factors in determining owner salaries, agency profits and percentage of ownership are the key factors in determining owner bonuses.

The Hartford said that bonuses, in general, are more a result of available profit dollars than planned results or specific management contributions.

Management responsibility and the size of their book of business are the most important factors in determining executive salaries, according to the survey.

More than half the agencies surveyed indicated that 50 percent of executives' bonuses were calculated according to the individual's management responsibilities, achievement of goals and agency profits. Individual production and agency growth were other key factors impacting executives' bonus calculations.

Suzy Hammett, a vice president with BMG, said, "More agencies said they are implementing performance-based incentives for managers than in past years.

"This shows a trend toward increased focus on accountability for executives. We recommend to our clients that management compensation be tied to growth, profit and measurable objectives."

For producers, the survey found that commissions are the most commonly used method of compensation.

The Hartford said survey results showed commissions paid to producers for new business for medium to large commercial accounts did not exceed 45 percent, and renewal commissions did not exceed 36 percent. Commissions were slightly higher for employee benefits?up to 48 percent for new business and 40 percent for renewals.

The study found agencies paying up to 41 percent for new personal lines and small commercial business and 35 percent for renewals, which is similar to past findings.

Throughout the survey, The Hartford said, an increased emphasis on profitable growth was found.

The poll revealed that in general, owners and producers are paid a higher percentage on new business and a lower percentage on renewals.

The Hartford said an interesting finding was that, in the largest agencies ($10 million or over), producer commissions were 4 percent to 12 percent less than those in mid-size and smaller agencies.

The difference, The Hartford said, is likely due to the fact that larger agencies tend to provide additional resources such as sales centers, central marketing and account executives that increase the cost of acquiring and keeping business, but also increase each producer's productivity so overall compensation is higher at these agencies.

The Hartford said a focus on larger accounts is a continuing trend. Forty percent of agencies reported requiring mid-market commercial producers to give up small accounts.

But agencies aren't giving up on small businesses. Instead, the study learned, more agencies are establishing small business units to handle sales and service for these accounts to reduce operating expenses and enable producers to focus on larger accounts.

In examining a producer's total compensation package, the survey found that the amount and kind of benefits and perks offered by the agency are important components.

Of the group examined by the survey, 53 percent provide reimbursement for travel and entertainment expenses, and 36 percent of the respondents pay a monthly auto allowance averaging $375 per month.

One-quarter of respondents offered owners and executives some type of long-term incentive, and 27 percent offered producers equity in their book.

Ms. Hammett said, "We find that it is important that producers be rewarded with some form of ownership to attract and retain top talent."

The success of agencies increasingly depends upon strong productivity ratios and compensation is often structured to reflect this. The study found that on average, 43 percent of agencies pay commissions to customer service representatives for writing new business, up from 36 percent in 1998.

CSR sales commission percentages averaged 25 percent for agencies with revenues under $2 million and 15 percent for agencies with revenues over $5 million.

The study found 19 percent of the agencies surveyed have sales managers, and of that group, 13 percent provide their managers with incentives.

Of the agencies that provide incentives for sales managers, over 50 percent do so based on percentage of commission, with the average being 5.8 percent. Forty percent of the agencies that provide incentives for sales managers used discretionary bonuses.

BMG's 48-page report was collected from responding agencies of all sizes and geographical locations.

The Hartford said responses are categorized by lines of business and region, as well as 2001 total agency revenue? ranging from the smallest ($2,000,000 or less) to the largest ($10 million and over).

BMG has been conducting national compensation surveys of insurance agencies and brokers for more than 10 years, and its survey is endorsed by the Independent Insurance Agents and Brokers Association.

The survey is available from BMG, for $99 plus shipping, The Hartford said.

BMG, a subsidiary of The Hartford, is a management consulting firm specializing in insurance agencies and brokers.