Glenn W. Clark, CPCU, is president of Rockwood Programs, Inc.
Glenn W. Clark, CPCU, is president of Rockwood Programs, Inc.
This month, Rough Notes breaks with a long-standing tradition and recognizes a managing general agency as its agency of the month. MGAs have always been an important part of the agency system, providing markets for hard-to-place and esoteric risks to independent agents. In order to succeed, MGAs have to successfully market their products to people who understand and use marketing daily. And, when a firm can accomplish that and grow to $20 million in premium and 32 employees in just three years, it deserves recognition. That's why Rockwood Programs makes the cover this month.
It all started with a routine sales call three and a half years ago. Glenn Clark, CPCU, was president of AIG's Morefar Marketing, seeking new distribution for AIG's EPLI product through agency associations. Glenn called on InsGroup, a national agents association owned by E.W. Blanch Holdings, and met Scott Brock, president of EWB Insurance Services, and EWB's chairman, Ted Blanch, Jr. Over the next four months, they talked about building a company that could employ multiple distribution systems to help Blanch's insurer clients. The result was the founding of Rockwood Programs, Wilmington, Delaware, in July of 1996.
"Our core expertise," Glenn explains, "is employing direct marketing concepts to augment the independent agency sale. We utilize an arsenal of electronic tools to make our programs and partners successful. Frank Huver, vice president and controller, and I 'grew up' in AIG's direct response initiatives of the 1980s. At Morefar, we had the opportunity to apply the same math and MIS used to sell $200 accident policies to the challenges of the commercial middle market. At Rockwood, we now have the ability to deal with multiple insurers, MGAs, and the entire independent agency system."
"We eat, breathe and sleep our numbers," Frank says. "Rockwood does not have the luxury of image advertising. Everything we do must have a quantifiable return in policy premiums. We need to bring in $20 to $30 in premium for every marketing dollar we spend. This represents a high front-end cost to an insurer, but it is a one-time expense. If we keep an account for five years, the front-end expense often amortizes to less than one percent."
Rockwood is divided into three core business segments.
I. Program Administration--Services to Independent Agents
Darryl McCallin, vice president of sales and operations, runs the day-to-day activities of this area where the two largest programs are employment practices liability and life insurance agents E&O.
Mark R. McCrary, ARM, AIC, is managing director of InsGroup and Irina Baranov is client relations manager.
"Our management staff is unique," Darryl points out, noting that "everybody multi-tasks from making coffee to hosting client meetings. There isn't room or time for egos here. The underwriters are responsible for both production and quality of risks written."
"A typical program involves trade press advertising," he continues. "In 1998 trade press advertising generated more than 20,000 inquiries to our fax-on-demand center at (888) SEL-EPLI. Through this service, independent agents have access to an array of tools to help them sell EPLI, ranging from a list of the most common objections and how to overcome them to recent court cases illustrating the need for coverage. Our goal is to be the easiest and most responsive partner for the independent agent." The success of this approach is evidenced by the fact that Rockwood has built a
$9.5 million book of EPLI business for its partners at Gulf, Kemper and Lloyd's.
The life insurance agents E&O program was launched in January of this year for the agents of American General Corporation. American General agents must prove that they carry adequate E&O or enroll in Rockwood's Protector Plan. "We estimate that we will write about 12,000 policies in our first year through this arrangement," says Darryl. In September, Rockwood introduced an open brokerage product--the Rockwood Guardian--to all life agents.
II. Rockwood Marketing--Services to Insurers
"We are specialists at 'push-pull' marketing," Glenn says, " 'pushing' a targeted prospect in order to 'pull' a response/application through an insurer's distribution network. Push-pull is an effective way to generate leads, test new products, and boost production in existing lines. Our parent company possesses one of the most energetic and connected distribution networks in the country. The E.W. Blanch relationship managers are plugged in to the needs of virtually every insurer in the United States. Rockwood has been engaged by insurers to build prospect databases, investigate new lines of insurance, test market in new states, create communications pieces and other marketing initiatives. Basically, we serve as an outsourced marketing department for Blanch clients, providing marketing services when they want us and staying out of the way when they don't."
Glenn continues that "the original vision we (Ted, Scott and I) had for Rockwood included helping Blanch clients grow their top line. We know that we've succeeded. In the past year we've tried to enhance Rockwood's insurer-based products through the inclusion of insurance company E&O/D&O; 'write your own EPLI' (up to 100% reinsured); the electronic prospect manager (putting the power of the most sophisticated direct marketers onto the desktop of the independent agent), and our new agents E&O program that can be customized to an insurer's entire network."
III. InsGroup--Service to Members
InsGroup is an independent agency network of 50 of the finest agencies in the country. (Ten of them have been recognized as Marketing Agencies of the Month.) The InsGroup profile is:
* Number one in their territory
* $30 million in premium volume
* A desire to obtain "an edge" over their competition
InsGroup is led by Mark McCrary. "Our intimate relationship with InsGroup associates helps keep us plugged in to the heart of the independent agency system," Glenn says. "Among the tools we've introduced to help our members gain an edge over the competition are: EPLI quote software, an owned agency captive, increased commission, negotiated carrier deals, and the ability to own their own finance company," he points out.
"We've been working on a plan for over a year to create the ultimate agency association," Glenn says. "We plan to launch Blanch Program Services 2000 in January. BPS2K will be an association of program administrators countrywide where EWB facilitates access to markets, access to each other and alternative risk transfer mechanisms."
Rockwood is a busy place, but it's not a dull, all-work-and-no-play organization. In fact, Glenn points out proudly, "our co-ed softball team, the Rockwood Rockies, just won the Wilmington co-ed league championship. It wasn't always pretty, but we got the job done."
Building bridges
"If I had to summarize our operation, I'd call us bridge builders," Glenn concludes. "We help bridge gaps--insurer to agent, agent to insured, reinsurance intermediary to company marketing executives--you get the picture."
Rockwood Programs represents an important part of the independent agency system. Its direct marketing techniques have helped independent agents augment their book of business and better serve their commercial clients. It is for that reason that we have decided to break from tradition and recognize them for their efforts on behalf of the system. *
©COPYRIGHT: The Rough Notes Magazine, 1999