Employees are essential part of wholesaler's success
By Debra Tadevich
Jim Ryan is president of Market Finders, based in Louisville, Kentucky.
Market Finders Insurance Corporation (MFIC) is the success story of a multi-state wholesaler and general agent. From its humble beginnings in Louisville, Kentucky, MFIC grew into an E&S broker that specializes in hard-to-place insurance--with branches in Dayton, Ohio; Greenville, South Carolina; and Fairmont, West Virginia.
Think back to the year 1972. Richard Nixon was the president of the United States; the country was frantic about Vietnam; and the movie "The Godfather" made its debut. That same year Market Finders made its debut in the insurance industry. Jim Ryan, then a 35-year old entrepreneur with a vision, began a small wholesale operation that has beaten the odds and has recently celebrated its 30th year in business.
Already in the retail insurance business, Ryan knew from experience that it was difficult to place unusual types of risks in the Commonwealth of Kentucky. Like all entrepreneurs, he saw this as an opportunity; and with $5,000 in capital he started a new firm. Today Market Finders Insurance Corporation writes $70 million in annual premium and has 75 full-time employees.
Ryan and his partner, Jerry Boyett, secretary-treasurer of the company, literally began from scratch. Market Finders opened its door with one company--Empire Fire and Marine. Six months later, Ryan and Boyett attended the annual NAII Convention and came back with another company, Western World Insurance. These two companies still represent a significant part of MFIC's overall portfolio.
Suddenly, the young company began making a name for itself with small to medium-sized independent retail agents, placing their small to medium-sized accounts. Service was, and still is, paramount to its success. In one year the company grew to
$1.2 million in annual premium. Soon Market Finders Insurance Corporation set up a premium finance company.
(Standing, left) Karen Cornett, vice president of underwriting, has been with Market Finders for 28 years, while Sylvia Smith (standing, right), comptroller, has been part of the company for 23 years. Jim Ryan (seated) and Jerry Boyett, secretary-treasurer, started Market Finders in 1972.
"Setting up the financial company was a self-preservation act on our part," says Boyett. "It cut through the paperwork for the agents, and it was an unusual step at the time. Not very many companies like ours were incorporating premium financing companies."
In 1977, when the insurance market began to open up, MFIC's greatest problem was how not to grow faster than it could deliver. That year, the company wrote $5 million worth of business and by 1978, was writing $10 million in premiums. The fledgling company was put to the test, and it responded by immediately hiring six additional employees to assist with the workload. However, Boyett says that wasn't enough.
"We were not staffed adequately for the new business, and that created a problem with our service." But, once again relying on its natural built-in preservation strengths, MFIC eventually hired and trained more employees, making sure that customer service was the number one priority.
Some of those same employees are with Market Finders today. Karen Cornett, vice president of underwriting, and a 28-year company veteran, says: "Market Finders is a family environment. For example, when positions in the company become available, they offer them to employees first--so many of the long-term employees have had numerous positions within the company."
Sylvia Smith, comptroller, who has been with the company for 23 years, says, "Market Finders is a really good environment to work in, and there are some discretionary profits for all employees."
For example, because satisfied and happy employees are a priority for MFIC, in February 1995, MFIC formed an ESOP and turned over 30% of the company stock to employees. The company made annual contributions to the ESOP in order for it to be free of debt. Then in March 2001, the company incorporated a 401(k) plan for employees.
The company incentive program includes giving U.S. Savings Bonds each month to employees of each division for reaching targeted budgets. Cash bonuses are paid quarterly if profit is obtained on an individual departmental basis. "Our employees are very important to us," says Jim Ryan. "We have had steady growth; we never had layoffs even when the market was tight; and we have a very small turnover. We are not in the business of training good people for other businesses."
Market Finders staff includes: (standing, left to right) Sylvia Smith; Jim Flitt, assistant vice president; Gladys Lewis, Jim Ryan's long-time secretary; Sissy Bailey, administrative assistant/medical malpractice; and (seated) Richard Jordan, vice president/medical malpractice.
By the 1980s, MFIC had become a veteran in the industry and began to spread its wings. Ready for larger, more modern headquarters, the company built a new facility, where the company still resides. MFIC became a super-market of sorts for hard-to-place insurance and took additional markets for commercial auto, property and casualty, aviation, physical damage and surplus lines. It expanded into medical malpractice and into personal lines, including homeowners and dwelling fire.
In addition to new lines of business, MFIC expanded geographically into selected states by acquiring companies and expanding market penetration. It acquired companies in Ohio, South Carolina and West Virginia. "We are always on the lookout for new acquisitions to grow the company," says Ryan.
Not only did the new branch offices propel MFIC to new heights, but Ryan also initiated new products within the company that were not common offerings among insurance wholesalers at the time. As early as the 1970s, MFIC had taken a risk and staffed an aviation division at the Louisville office. Today the company represents all major aviation insurance markets and three of the 10 largest London brokerage firms, doing business with Lloyd's and other British markets that specialize in the hard-to-place and special risk segments of the industry.
In the 1980s, MFIC opened a medical malpractice division at its Louisville office. The department started with one specialist and one clerical employee. "By the end of that first year the department was producing $2.5 million in written premiums," says Richard Jordan, vice president of the medical malpractice division. By 1997, the division had added two risk management nurses and three underwriters, and was writing $20 million in premiums.
Jordan attributes the success to "the company atmosphere being what it is. It is enjoyable to come to work, and employees have a lot of input. For example, we redecorated the department, and the staff picked the colors and the theme--horses. But really it is the fact that everyone in the division works hard to make it a success."
Market Finders' employees are an integral part of the company's success. Pictured here are: (standing, left to right) Greg Seibel, commercial underwriter; Liz Toban, underwriting assistant; Joe Miller, commercial underwriter; Charlene Curry, commercial underwriter; Jim Flitt; Susan Hudgins, commercial underwriter; and Shirley Gordon, transportation underwriter. Seated are Shannon Helm, underwriter; and Karen Cornett.
Since one of the core strengths of Market Finders is valuing its employees, it's not surprising that it provides funding for all employees to continue their insurance education. "The company wants industry-educated employees," says Jim Flitt, assistant vice president of Market Finders. "We go out of our way to see that anyone who wants to further his or her education gets 100% funding to do so. Today our company has the Certified Managing General Agency Designation awarded by the AAMGA and three employees with the Certified Insurance Wholesaler designation."
In recognition of its education efforts, MFIC has received awards from both AAMGA and NAPSLO.
Looking to the future, Jim Flitt says: "Market Finders has strong leadership and a solid, well-educated staff that is a good blend of experience and youth. We offer a rare combination of corporate teamwork with a family atmosphere."
That combination, along with the strong relationships Market Finders has built with its agents and companies, is the key to its future growth. *
The author
Debra Tadevich has beeen writing company history for more than 20 years, and has received the Clarion award for popular history writing. She can be reached at debrat@
roughnotes.com or (800) 428-4384, ext. 1032.
For more information:
Market Finders Insurance Corp.
Phone: (800) 626-5660