2013 Best Practices Study

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2013 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
157
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Average Top 25%
Information Technology Employees (FTE)
Number 2.2
High 4.6
Low 0.3
Total IT Payroll Expense ($) $163,688 $253,268
As % of Total Compensation Expense 1.6%
As % of Net Revenues 1.1%
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.
Other included Zywave Brokerage Builder, Benefit
Point, XDTI, and Nexsure.
Technology
Agency Management
System Utilized
Average +25% Profit +25% Growth
Total IT Expenses1 (as % of net revenues) 2.4% 2.1% 2.1%
Average +25% Profit +25% Growth
Top Priorities for Software/IT Investments in Coming Year (% of agencies indicating investment as one of top 3)
Agency Management System 51.5% 50.0% 75.0%
Comparative Rating 3.0% 12.5% 0.0%
Real-time Connectivty/Download to Carriers 30.3% 25.0% 50.0%
Web Portal (Client Payments, Billing Inquiry, Quotes, etc.) 21.2% 37.5% 0.0%
Internet Marketing/Social Media 30.3% 12.9% 37.5%
Business Intelligence/Dashboards/Reporting 51.5% 62.5% 25.0%
Producer Automation 36.4% 50.0% 37.5%
Data Privacy Compliance 9.1% 0.0% 0.0%
Disaster Recovery 12.1% 12.5% 12.5%
Application, Database & Network/Server Security 36.4% 12.5% 50.0%
E-initiatives (eSignature, Electronic Policy Delivery, EFT, etc.) 6.1% 0.0% 0.0%
Other 12.1% 25.0% 12.5%
TAM
24.2%
Sagitta
21.2%
EPIC
18.2%
AMS
360
33.3%
Other
3.0%
Other included internal social collaboration, workflows/efficiencies, effective CRM, and to continue to enhance agency’s
website.