2013 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

0.8 2.0 0.1

High Low

Total IT Payroll Expense ($)

$46,506

$98,157

As % of Total Compensation Expense

2.3% 1.3%

As % of Net Revenues

Average

+25% Profit

+25% Growth

Total IT Expenses 1 (as % of net revenues)

2.2%

2.1%

1.8%

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 2.2%

AFW 2.2%

AMS 360 33.3%

Agency Management System Utilized

Other included a custom agency management system.

TAM 46.7%

Vision 6.7%

EPIC 6.7%

Sagitta 2.2%

Average +25% Growth Top Priorities for Software/IT Investments in Coming Year (% of agencies indicating investment as one of top 3) Agency Management System 54.3% 72.7% 72.7% Comparative Rating 17.4% 9.1% 18.2% Real-time Connectivty/Download to Carriers 26.1% 36.4% 45.5% Web Portal (Client Payments, Billing Inquiry, Quotes, etc.) 32.6% 27.3% 18.2% Internet Marketing/Social Media 65.2% 54.5% 63.6% Business Intelligence/Dashboards/Reporting 13.0% 9.1% 0.0% Producer Automation 32.6% 36.4% 36.4% Data Privacy Compliance 13.0% 0.0% 9.1% Disaster Recovery 10.9% 0.0% 9.1% Application, Database & Network/Server Security 26.1% 36.4% 18.2% E-initiatives (eSignature, Electronic Policy Delivery, EFT, etc.) 15.2% 9.1% 0.0% Other 8.7% 9.1% 0.0% Other included hardware updates, Image Right software, data analytics, video conferencing capabilities, and website upgrade. +25% Profit

2013 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

93

Made with