2010 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

Technology

Mgmt. Perspectives

Profile

Average

Top 25%

Information Technology Employees (FTE) Number

Revenues

0.5 1.2 0.1

Expenses

High Low

Profitability

Total IT Payroll Expense ($)

$14,538

$31,225

Employee Overview

As % of Total Compensation Expense

3.1% 1.6%

As % of Net Revenues

Producer Info

Average

+25% Profit

+25% Growth

Staff Service Info

Total IT Expenses 1 (as % of net revenues)

2.6%

2.6%

3.4%

Technology

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.

Insurance Carriers

Agency Management System Utilized

Appendix

Scanning & Document Management % of Agencies that Use % of Users That: Do Front-end (mail room) Batch Scanning

85.0%

15.0% 60.0%

Do Back-end (after CSR) Scanning

Website % of Agencies that Have a Website

90.0%

% of Websites That: Optimized Their Site for Search Engines Participate in Paid Search Programs Extend Customer Self-Service Through Website Offer After-Hours Support Through Website Offer Real-Time Quotes Through Website 27.5% Offer Ability to Request a Quote Through Website 67.5% Use SocialMedia toBuildBrandor Attract NewProspects 50.0% 42.5% 20.0% 32.5% 45.0%

Average

Security Issues —% of Agencies that: Dedicate Significantly More Time & Resources to Agency Security and/or Other Compliance Issues Than in the Past

50.0%

2010 Best Practices Study

Have a Written Security Plan Which Includes Staff Training and Auditing for Compliance

57.5%

Have Implemented Secure Email When Transmitting Sensitive Client Information Via Email

47.5%

Agencies with Revenues Under $1,250,000

Very Negative

Very Positive

Effectiveness of Technology Deployed on Agencies’ Ability to:

Reduce or Maintain Same Number of Staff Positions

Enhance Staff Productivity

26

Increase Proactive Client Outreach

Increase Staff Sales Activity