The Rollins Agency of Tuckahoe, New York, established a worldwide network of agencies to provide country-specific coverages for its international clients. Agency executives include Markham F. Rollins, Jr. (seated), who is retiring this year; Markham F. Rollins, III (left), chairman and CEO; and Charles J. Rollins, president.
The Rollins Agency is a local family agency that has the capacity and expertise of a large brokerage firm. This blend was achieved through the agency's total immersion in the needs of its customers--an immersion that has led the Rollins Agency to establish strategic alliances that enhance its ability to service customers.
The Rollins Agency has offices in Tuckahoe and Katonah, New York. It was established in 1910 and is now into its fourth generation of the Rollins family. Markham F. Rollins, III, is chairman and CEO and Chuck Rollins serves as president. Their father, Markham, Jr., is retiring this year. He purchased the agency from his father in 1966. "Our great grandfather founded the agency in 1910, our grandfather came in in 1935 and then our father in 1966. Now, it's taking a big step into the fourth generation with Dad's retirement. He's been president of the firm for more than 30 years," says Mark, III, who has been with the agency for 20 years. Chuck has been with the agency for 15 years.
A great deal of the agency's astounding growth has occurred in the last few decades. When Mark, Jr., purchased the agency in 1966, commissions were around $60,000. Today, the agency has more than $4million in revenue. Revenue growth last year, during a very soft market, was 11%. Projected growth for 1998 is in excess of 15%.
Much of the growth reflects the rapid growth in the Hudson Valley area, an area just north of New York City that has attracted many of the more affluent commuters from the city. It also has proven attractive to corporations looking for more scenic environs.
And, not surprisingly in these days of globalization, a number of the companies in the Hudson Valley have international operations. "We've always looked for niche areas that were technical," Mark explains, "so we can provide real value-addeds to the transaction. We totally immerse ourselves in the industry. We found a void in the international market. The large brokers were only after the Fortune 500 companies. Small to mid-sized companies that operated in the international marketplace still had the same complex coverage concerns as the larger enterprises."
Agency division directors gather in the conference room. Ann Bissell (seated)--Employee Benefits; Standing (left to right): Ellen T. Gold--Worksite Marketing; Carollee Cabot--Personal Lines Marketing; Anthony J. Fardella, Executive Risk; and John P. Moccia, Technology.
The people at The Rollins Agency dove into the international market in order to become knowledgeable both in the problems that face international companies and in the various coverages needed to mitigate any possible losses that might occur. "There are certain unique coverages, such as credit and political risk coverage, for example, that international companies need and most agencies our size do not offer because of the specialization required and lack of knowledge," Mark says. "Our approach is to learn the coverages internally and then form a strategic alliance with people who can help us better serve our customers. So, in the case of credit and political risk coverages, we've created a strong alliance with an agency that specializes in those coverages."
Mark also has worked to establish a worldwide network of agencies to provide country-specific coverages. Many countries require the purchase of certain types of coverages from a local company through a local agent. In some cases, this can be handled with fronting arrangements. However, it often helps to have a licensed agent in the country to handle regulatory problems that may crop up as well as to deal with claims that may involve local residents. The result of Mark's efforts is a worldwide network that includes agencies in London, Paris, Antwerp, Munich, Norway, Milan, Melbourne and Tokyo. Mark is in constant contact with these international agencies and clients overseas and visits many of them often to further strengthen the relationships.
But this network is not just an accommodation that allows for placement of coverage in local environments. It is a network of agencies that learn from each other and share ideas. And, in many ways, that is far more important. Here in the states, The Rollins Agency also has a network of agencies that meet regularly to share ideas. "There are four of us," Mark points out. In addition to Rollins, the "idea" network includes agencies in Boston, Chicago and Washington, D.C. "We get together and share information. We're far enough apart geographically that we don't have to worry about competing for business. But we do compete in a positive way, trying to be the best at what we do and then share that information. The idea is to try to establish cutting edge best practices."
Total immersion
In order to fully understand the problems and concerns of businesses dealing in the international marketplace, the people at Rollins don't limit their activities to insurance. Mark is president of The World Trade Council of Westchester, a local business organization that promotes international trade among companies in the Hudson Valley. "We get involved in all the business dealings. That's very important. We meet and greet the decision makers in this market and we learn from that," Mark points out, adding that there are more than 600 members in the organization. "It includes some of the major business leaders in the country and this gives us a chance to hear from them about their concerns. Members range from Fortune 100 companies to industries which import and export goods and services."
Rollins Agency employees (left to right) are: Theresa A. Delapp, vice president, team leader, Small Commercial and Personal Lines Group; Mark Rollins; Chuck Rollins; Michael L. Brown, CPCU, sales manager, Small Commercial and Personal Lines Group; Rosanne M. Rizzo, team leader, Large Commercial Group; and Elizabeth M. D'Angelo, director of finance and administration.
This same immersion occurs in other niche areas and is very important to the continued success of their firm. Part of the Rollins philosophy is to empower producers to be innovative and to create opportunities. For example in 1993, the agency started Rollins Executive Risk Services. Anthony Fardella, director of that division, summed it up by saying: "We have achieved tremendous growth in this area by providing directors and officers, errors and omissions, employment practices liability and related coverages to public companies, financial institutions and privately owned businesses throughout the New York metropolitan area. We focus on protecting the unique needs of initial public offerings, investment companies and everyday business executives who can be targets of litigation."
The Technology Division was started in 1997 by John Moccia, director. "Technology is one of the fastest growth industries in our area, and it has special insurance requirements. Because of our experience and understanding of this industry segment, we were recently named as the insurance provider for the New York Software Industry Association and its members."
In 1998 the Medical Risk Division was started by Rick Hadley, Jr., director. This division handles the unique needs of medical equipment manufacturers and distributors, physician groups and managed care providers.
"In the financial services group we have experienced tremendous growth in all areas including employee benefits," Chuck notes. "Because of this success, we hired Ann Bissell as director of the employee benefits division. Ann says "this has been a great opportunity for our firm to bring in new clients and retain existing clients by helping them manage their benefits programs."
Chuck adds that "our offices are located in an affluent area and because of that we specialize in insuring the valuable assets of these families, including income and estate preservation." He continues that "we seek to be partners with each of our clients, providing advice and counsel. In the area of financial services," he says by way of example, "we have helped many of our clients in business continuation and estate planning. Just recently we were working closely with a client, the client's attorney and an attorney we recommended. We designed a plan to help perpetuate the business within the family, help offset anticipated estate taxes and defer compensation for key people. More and more of our clients are becoming aware of the fact that we can help service all of their insurance and financial services needs and can have one contact to do so."
Giving back
Involvement in charitable organizations also is extremely important at The Rollins Agency.
"A lot of Mom and Dad rubbed off on us," Mark continues. "Giving to the community always was important to them and it's important to us. And many of our employees also get involved and we support them in that. If they have to go to a meeting for one of the organizations, they know that's fine. They don't even have to ask."
One of the largest efforts is with the Community Fund of Bronxville, East Chester and Tuckahoe. The Rollins Agency is one of the principal supporters and each year has sponsored a golf event to raise money for the organization. "Mark has been co-chairing the event for 10 years and is doing so again this year," Chuck says. "It's one of the premiere events of the organization. This year, we should raise in excess of $100,000 from this one event."
Zero turnover
Giving back pervades the Rollins' philosophy. Not only are the agency people involved in charitable organizations that help the community, but they're also involved in helping each other. "Morale is tremendous," Chuck observes. "We have virtually zero turnover at the agency."
The Rollins Agency offers opportunity compensation throughout the entire agency. The service people are considered risk managers, with personal risk managers, commercial risk managers and major risk managers. They have administrative assistants who are risk managers in training. "This provides every employee with a definite career path. Everyone can work up as high as they want to go," Mark notes.
Employees also are recognized at monthly appreciation breakfast meetings where "we thank everyone for what they've done," Chuck says. "Employees actually stand up at the breakfast and thank other employees for their help. Testimonial letters are hung up throughout the agency. If Mark or I hear from a client about something a risk manager has done for them, we share that with everyone. We try our best to make this a fun place to work. We have a company picnic once a year and an employee recognition dinner in the fall. People really do seem to like working here. It really is amazing. We've tried to make this a good place to be, but we can't take credit for it. We all have respect for each other and help each other. It seems to have worked."
But the real key is summed up in Chuck's words: "Our employees are our most valuable asset. There is no one in this agency that I would not have a client speak to." And that respect for every member of the agency obviously is sincere and permeates the agency.
The secret?
The Rollins Agency's secret becomes obvious after a conversation with Mark and Chuck. They really do love what they are doing and impart that to their employees, customers and strategic allies. Their secret is that they don't have any secrets. They're willing to share what they learn so that others can succeed and prosper. Their success is built on helping others succeed. And they are continuing that with their most recent venture. "We're now a Master Agency for Satellite Insurance Agency Alliance," Mark says. "We're very excited at the opportunity to help smaller agencies perpetuate and write more business. It is especially gratifying in that this will not only help us grow, but we will help the independent agency system around us continue to grow as well."
The Rollins Agency has succeeded by surrounding itself with good people. Today, the agency has transformed itself to an organization that is poised for huge growth. "We met with Harbor Capital Advisors, an investment banker and consultants to the insurance industry, and have organized internally to be prepared for growth," Mark points out. "Theoretically, we could open an office anywhere in the country and write small and large accounts."
Mark and Chuck have taken a family business that, with the business model they have put together with the help of Harbor Capital Advisors, can continue to grow rapidly with new business sales and the acquisition of other agencies. The agency has an integrated service center, sales center and management to help it move to a higher level. "With the opportunity compensation plan in place and empowerment of producers to be successful," Mark says, "we're certain we will continue to grow and prosper."
The Rollins Agency clearly is poised for continued growth. The real question is how far the qualities that they offer as a community agency with the resources of a large brokerage can be expanded. But that will be answered only with time. What is clear is that the agency definitely deserves recognition as Marketing Agency of the Month. *
©COPYRIGHT: The Rough Notes Magazine, 1998