Strong relationships are the key to Insurance Innovators' success
By Dennis Pillsbury
Some of the people who "make the difference" at Insurance Innovators.
Thirty years ago, Martin S. Shapiro set up the Martin S. Shapiro Agency, Inc., in Glenside, Pennsylvania, primarily to write motorcycle insurance. And, from 1972 to 1978, that's exactly what the agency did. Nearly all of its business came from the motorcycle market, with a small amount (about 5% of the total volume) in homeowners business.
Then in 1978, faced with changing market conditions and increased competition, the agency made a strategic decision to expand its product lines. To reflect this change in focus, Insurance Innovators, Inc., was formed in July 1978, to succeed the Shapiro Agency. The name came from Shapiro Agency's reputation as an innovator, which was also reflected on the agency's stationery.
Today, Insurance Innovators is a wholesaler that writes nearly everything but motorcycles. In addition to the headquarters in Glenside, the MGA also has offices in Green Brook, New Jersey; Staten Island, New York; West Springfield, Massachusetts; and Holliston, Massachusetts. There are a total of 80 employees. The agency is a member of both NAPSLO and AAMGA.
"We're a full-service shop with a number of different departments," Michael Kravitz, president, says. The departments include Commercial Underwriting, Small Business, Commercial Auto, Personal Lines, and Professional Liability. "We have one national program--our Crane program--which we write in all 50 states."
Michael continues by pointing out that "the majority of my time is spent as a desk underwriter, and that would be impossible without good people around me. There's no one here in an ivory tower. We're all doing the work, and that keeps us in touch with our retail agents and our companies. I may be the president, but that's not how we function. We all run the company together. We focus on getting good people and believe that our companies and retailers will stay with us if we do so."
Fran Reh, CPCU, executive vice president, adds: "Our number one priority is to hire competent, professional people at all levels. That is what we believe will distinguish us from the competition--the brain trust that we provide. All wholesalers bring markets to the table. Our people and our expertise are really what make us different."
From left: Michael Kravitz, president; Fran Reh, CPCU, executive vice president; and Richard Marburg, vice president.
She continues: "Our people and our expertise result in quick service on all levels. The companies we represent know that we do a good job. They trust our underwriting expertise and have given us in-house authority for many lines of business. They also know that any submissions for business for which we don't have the pen will be complete. When we have to submit, we pre-rate, summarize losses, and have the answers concerning any questionable losses. We provide all that to the company underwriter and that gets us to the top of the pile, which is key in today's hard market.
"We take each risk and analyze it on an individual basis," Fran concludes. "We have earned a solid reputation with our companies. They know that we perform for them and they perform for us. As a result, our retailers get a quick response from us."
Listen to the retailers
"As wholesalers," Michael continues, "one of our most important jobs is to listen to our retailers and get them what they need. We have to provide them with markets that they can't get from their companies. One example is in the homeowners line where, among other things, we provide coverage for coastal properties in New Jersey. There was a real need for that coverage in that state. In Massachusetts, there was a strong need for mobile home coverage. We structure ourselves to meet the needs of our retailers.
"We don't assign underwriters to particular producers. We let our retailers tell us whom they want to deal with. Most of our people have been in the industry for many years and are well known. In addition, our underwriters visit two to four agencies each month."
Rich Marburg, vice president, adds, "We are continuing to accept new business from agents who have not dealt with us before and are mainly looking for people who want a long-term relationship."
Rich continues, "Our strong relationship with our retailers has been instrumental in our success. We had producers who, even during the soft market, continued to place business with us. They put us in the same thought process as their other representations. Any kick-out came to us. And we reward their loyalty with premier service."
"As wholesalers, one of our most important jobs is to listen to our retailers and get them what they need.... We structure ourselves to meet the needs of our retailers."
--Michael Kravitz
He points out that the MGA was able to grow in the very soft market of 1978 through 1986, "thanks to the loyalty of our retailers."
In 1986, "we grew dramatically because of the hard market," Michael says. "We were fortunate because we had a good team of people and companies to rely on. When other companies ceased writing, our companies were ready to grow. We were able to take advantage of the marketplace and grew at least three times in two years.
"In 1988," he adds, "we grew through acquisition. We acquired our New England offices after spending quite a bit of time to find the right purchase. We found two MGAs with almost identical business plans and company representation. Our companies embraced the acquisition. It has allowed us to gain some economy of size."
Again, Michael continues, the MGA "was fortunate to have the loyalty of retailers during the extended soft market that spanned most of the decade of the '90s. The bottom was probably around 1998. This year, we will close out at nearly triple our 1998 numbers."
He adds proudly: "Our ability to provide excellent service has never been stressed because of the quality of our people. We've been able to attract new, qualified people that have made us better. The same has been true with the companies we represent. We have long-standing relationships with many of them and have been able to add a few new, highly rated companies. We also upgraded our hardware and software before the brunt of the hard market hit so we have no distractions. Our technology is well able to handle any increases in business."
Insurance Innovators is able to write or place almost all ISO classes. Some of its specialties include: cranes, liquor liability, roofers, contractors, vacant properties/dwelling, BOP, large value properties, coastal properties, products liability, large habitational risks, environmental contractors, nursing homes, beauty salons, swim clubs, day care centers, alarm companies, special events, event liability, and hole-in-one coverage. The MGA also specializes in a number of professional liability lines and is a member of PLUS. Among the lines offered are: for-profit and nonprofit D&O, EPLI, medical providers protection, lawyers professional liability, municipal liability and consultants E&O for a wide variety of consulting professionals.
"The thousands of retailers we serve are the backbone of our organization," Michael concludes. "And we make every effort to provide them with the coverages that they need to answer their clients' insurance needs." *
For more information
Insurance Innovators
Web site: www.iiigroup.com