2001 Best Practices Study

Analysis of Agencies with Revenues Less Than $500,000

CARRIER REPRESENTATION

A. Number of Carriers Represented

Average

+25% Profit

+25% Growth

Personal Lines National

2.3 3.5

2.0 3.7

2.6 2.4

Regional

Commercial Lines National

2.0 3.1

2.0 3.4

2.4 3.0

Regional

Total Carriers

10.9

11.1

10.4

B. Commission Income as % of Net Revenue

Average

+25% Profit

+25% Growth

% of Net Rev from Top Carrier % of Net Rev from Top 3 Carriers

34.2% 59.4%

33.2% 59.3%

26.7% 53.0%

C. Service Center Use

Total Pers'l Lines Commissions placed in Carrier Service Center Total Comm'l Lines Commissions placed in Carrier Service Center

16.7%

*

*

*

*

*

* - Insufficient Data

TECHNOLOGY

A. Agency Management System Utilized:

% Utilitizing

AMS

32.0% 24.0% 4.0% 0.0% 8.0% 0.0% 0.0% 0.0% 12.0% 20.0%

Applied Systems

Ebix

CAIR Doris InStar

Strategic Insurance Software

irs-aims

VRC Other

B. Information Technology Expense (as % of Net Revenues)

Average

+25% Profit

+25% Growth

Total IT Expense for Fiscal Yr (1)

2.9%

2.7%

3.8%

(1) Includes hardware/software leasing, supplies, maintenance & maintenance contracts, training, data communications, website development/maintenance, computer depreciation, and software amortization

33