2010 Best Practices Study

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

Technology

Mgmt. Perspectives

Profile

Average

Top 25%

Information Technology Employees (FTE) Number

Revenues

0.5 1.5 0.1

Expenses

High Low

Profitability

Total IT Payroll Expense ($)

$23,472

$46,803

Employee Overview

As % of Total Compensation Expense

2.3% 1.3%

As % of Net Revenues

Producer Info

Average

+25% Profit

+25% Growth

Staff Service Info

Total IT Expenses 1 (as % of net revenues)

2.1%

2.4%

2.0%

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

88.4%

30.2% 69.8%

Do Back-end (after CSR) Scanning

Website % of Agencies that Have a Website

95.3%

% 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 14.0% Offer Ability to Request a Quote Through Website 58.1% Use SocialMedia toBuildBrandor Attract NewProspects 39.5% 55.8% 23.3% 25.6% 30.2%

Average

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

58.1%

2010 Best Practices Study

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

55.8%

Have Implemented Secure Email When Transmitting Sensitive Client Information Via Email

53.5%

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

Very Negative

Very Positive

Effectiveness of Technology Deployed on Agencies’ Ability to:

Reduce or Maintain Same Number of Staff Positions

Enhance Staff Productivity

56

Increase Proactive Client Outreach

Increase Staff Sales Activity