2013 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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

0.6 1.4 0.1

High Low

Total IT Payroll Expense ($)

$23,806

$43,963

As % of Total Compensation Expense

2.6% 1.4%

As % of Net Revenues

Average

+25% Profit

+25% Growth

Total IT Expenses 1 (as % of net revenues)

3.1%

2.6%

3.6%

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.

Hawksoft 3.0%

AFW 3.0%

Instar 3.0%

Other 3.0%

Agency Management System Utilized

TAM 48.5%

Other included Xanatek-IMS.

AMS 360 33.3%

*

EPIC 6.1%

Average +25% Growth Top Priorities for Software/IT Investments in Coming Year (% of agencies indicating investment as one of top 3) Agency Management System 32.4% 37.5% 50.0% Comparative Rating 23.5% 25.0% 25.0% Real-time Connectivty/Download to Carriers 14.7% 12.5% 0.0% Web Portal (Client Payments, Billing Inquiry, Quotes, etc.) 23.5% 25.0% 25.0% Internet Marketing/Social Media 52.9% 62.5% 62.5% Business Intelligence/Dashboards/Reporting 26.5% 12.5% 37.5% Producer Automation 41.2% 25.0% 62.5% Data Privacy Compliance 5.9% 0.0% 12.5% Disaster Recovery 14.7% 12.5% 25.0% Application, Database & Network/Server Security 8.8% 12.5% 0.0% E-initiatives (eSignature, Electronic Policy Delivery, EFT, etc.) 32.4% 37.5% 37.5% Other 8.8% 12.5% 12.5% +25% Profit

2013 Best Practices Study

Agencies with Revenues Between $1,250,000 and $2,500,000

61

Other included computer hardware, website updating and CSR Certtrax.