2013 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

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

0.4 1.5 0.1

High Low

Total IT Payroll Expense ($)

$12,092

$23,057

As % of Total Compensation Expense

2.7% 1.4%

As % of Net Revenues

Average

+25% Profit

+25% Growth

Total IT Expenses 1 (as % of net revenues)

3.0%

2.2%

2.8%

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.

Strategic Insurance Software 6.1%

Instar 3.0%

Hawksoft 6.1%

Agency Management System Utilized

TAM 27.3%

AFW 6.1%

Other included TAM Online, Jenesis, Agency Command, NASA - Eclipse, and Ins Pro.

Other 18.2%

EPIC 6.1%

AMS 360 27.3%

Average +25% Growth Top Priorities for Software/IT Investments in Coming Year (% of agencies indicating investment as one of top 3) Agency Management System 36.4% 37.5% 50.0% Comparative Rating 12.1% 0.0% 12.5% Real-time Connectivty/Download to Carriers 42.4% 62.5% 50.0% Web Portal (Client Payments, Billing Inquiry, Quotes, etc.) 33.3% 37.5% 37.5% Internet Marketing/Social Media 60.6% 62.5% 37.5% Business Intelligence/Dashboards/Reporting 6.1% 12.5% 0.0% Producer Automation 18.2% 25.0% 25.0% Data Privacy Compliance 21.2% 25.0% 25.0% Disaster Recovery 3.0% 0.0% 0.0% Application, Database & Network/Server Security 6.1% 12.5% 12.5% E-initiatives (eSignature, Electronic Policy Delivery, EFT, etc.) 39.4% 12.5% 37.5% Other 12.1% 12.9% 0.0% Other included telecommunications, moving toward paperless office, mobile ready website and agency phone app. +25% Profit

2013 Best Practices Study

Agencies with Revenues Under $1,250,000

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