2013 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

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

1.2 3.3 0.2

High Low

Total IT Payroll Expense ($)

$77,288

$128,368

As % of Total Compensation Expense

1.8% 1.1%

As % of Net Revenues

Average

+25% Profit

+25% Growth

Total IT Expenses 1 (as % of net revenues)

2.3%

2.2%

2.3%

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.

AFW 2.3%

AMS 360 16.3%

Agency Management System Utilized

Vision 4.7%

TAM 58.1%

Other included Zywave Products and MHM/Winflex.

EPIC 11.6%

*

Sagitta 7.0%

Average +25% Growth Top Priorities for Software/IT Investments in Coming Year (% of agencies indicating investment as one of top 3) Agency Management System 45.5% 50.0% 60.0% Comparative Rating 9.1% 20.0% 20.0% Real-time Connectivty/Download to Carriers 18.2% 20.0% 20.0% Web Portal (Client Payments, Billing Inquiry, Quotes, etc.) 29.5% 0.0% 20.0% Internet Marketing/Social Media 50.0% 50.0% 30.0% Business Intelligence/Dashboards/Reporting 31.8% 40.0% 40.0% Producer Automation 18.2% 10.0% 30.0% Data Privacy Compliance 11.4% 10.0% 10.0% Disaster Recovery 13.6% 10.0% 0.0% Application, Database & Network/Server Security 18.2% 10.0% 10.0% E-initiatives (eSignature, Electronic Policy Delivery, EFT, etc.) 29.5% 40.0% 50.0% Other 9.1% 20.0% 10.0% +25% Profit

2013 Best Practices Study

Agencies with Revenues Between $5,000,000 and $10,000,000

125

Other included website makeover, virtualization, proprietary software and VOIP.