2007 Best Practices Study

Agencies with Revenues Between $1,250,000 and $2,500,000

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Technology

Average

Top 25%

Information Technology FTE Number

0.6 2.0 0.1

High

Low

Total IT Payroll Expense ($)

$25,632

$52,857

As % of Total Compensation Expense

2.3% 1.3%

As % of Net Revenues

Average

+25% Profit

+25% Growth

Total IT Expenses for Fiscal Year

1.9%

2.1%

1.6%

1 Includes hardware/software leasing including offsite applications, supplies, maintenance & maintenance contracts, training, data lines, internet providers, website development/maintenance, outside consulting fees, computer depreciation, software amortization, and any non-depreciated hardware/software.

Agency Management System Utilized

Scanning & Document Management % of Agencies that Use % of Users That: Use an ams for Document Management

80.0%

Other 3.3%

76.7%

AMS360 16.7%

Use 3rd Party for Document Management 20.0% Do Front-end (mail room) Batch Scanning 13.3% Do Back-end (after CSR) Scanning 63.3%

AMS-afw 6.7%

Irs-aims 3.3%

Website % of Agencies that Have

Instar 3.3%

93.3%

TAM 66.7%

% of Websites That: Are More than Electronic Yellow Page

40.0%

“I’m thinking of purchasing a smaller agency that isn’t automated, and I am struggling with whether to pursue it or not. They are in a community we would like to be in, but they haven’t kept up with technology. Bringing them up to speed would take a while. It’s hard to factor that into the purchase price.”

Used in Prospecting/Sales Efforts

23.3%

Optimized for Search Engines

40.0%

Participate in “Paid” search Programs Is Key Component in Customer Service Efforts

13.3%

13.3%

Extend Customer Self-Service Through Site

13.3%

Used as Vehicle to Provide Helpful Info and Educate

70.0%

53 2007 Best Practices Study | Agencies with Revenues Between $1,250,000 and $2,500,000 | Technology