Insurance Agency Benchmarks: $5M–$15M Agencies
The $5M–$15M revenue tier is where the gap between Best Practices and median agency performance translates into board-room numbers. A 10-percentage-point spread in operating margin at $10M in revenue is $1M in annual EBITDA. Agencies at this size that understand their position on the Best Practices curve are positioned differently in every strategic conversation they enter.
Best Practices vs median: directional benchmarks for $5M–$15M agencies
- Operating margin: Best Practices ~24–28% · Median ~15–20%
- Pro forma EBITDA margin: Best Practices ~26–30% · Median ~17–22%
- Total compensation ratio: Best Practices ~56–61% · Median ~63–68%
- Service & admin compensation ratio: Best Practices ~20–25% · Median ~26–32%
- Revenue per employee: Best Practices ~$170K–$200K · Median ~$130K–$160K
- Organic growth: Best Practices ~8–12% · Median ~4–7%
- Client retention: Best Practices ~93–95% · Median ~88–91%
Where the leverage is: service & admin compensation
Service and admin compensation ranges from ~20% of revenue at Best Practices agencies to ~32% at median agencies. That 12-point spread, applied to a $10M agency, is $1.2M annually — a margin opportunity that almost always flows directly to EBITDA.
Frequently asked questions
What is a good profit margin for a $10M insurance agency?
Best Practices agencies in the $5M–$15M tier typically operate at 24–28% operating margin and 26–30% pro forma EBITDA margin. The industry median is 15–20% operating margin. A $10M agency operating below 18% EBITDA is structurally underperforming relative to top-quartile peers.
For the full benchmark framework: Insurance Agency Benchmarks: Best Practices vs Median by Size Tier
See how COVU OS helps $5M–$15M agencies close the gap to Best Practices on service operations
Directional benchmarks summarized from publicly released Big “I” / Reagan Consulting Best Practices Study figures and COVU’s operational experience across 50+ insurance agencies and $200M+ in premium. Not audited financial data.