2013 Best Practices Study

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

Technology

Average

Top 25%

Information Technology Employees (FTE) Number

2.2 4.6 0.3

High Low

Total IT Payroll Expense ($)

$163,688

$253,268

As % of Total Compensation Expense

1.6% 1.1%

As % of Net Revenues

Average

+25% Profit

+25% Growth

Total IT Expenses 1 (as % of net revenues)

2.4%

2.1%

2.1%

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 3.0%

Agency Management System Utilized

TAM 24.2%

AMS 360 33.3%

Other included Zywave Brokerage Builder, Benefit Point, XDTI, and Nexsure.

Sagitta 21.2%

EPIC 18.2%

Average +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% Other included internal social collaboration, workflows/efficiencies, effective CRM, and to continue to enhance agency’s website. +25% Profit

2013 Best Practices Study

Agencies with Revenues Between $10,000,000 and $25,000,000

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