At The McIntyre Group, "special forces" deliver
smart solutions for complex risks
By Elisabeth Boone, CPCU
Founder, President and CEO of The McIntyre Group, Tony McIntyre brings to the table 15 years of experience with a major regional brokerage.
Each branch of the U.S. military has elite units that carry out top-secret, high-hazard missions in remote parts of the world. The Navy SEALs, the Marine Recon, the Army's Delta Force, the Air Force Commandos--all have the discipline, skills, and motivation to perform sophisticated operations amid daunting challenges.
That kind of grit and determination strikes a deep chord with agency owner Tony McIntyre, a former varsity athlete in college and an officer in the U.S Army. So it's no surprise that military veterans and former athletes are well represented on the staff of The McIntyre Group, an independent agency based in Cherry Hill, New Jersey. "Motivation, discipline, and intelligence are the qualities I value most in our associates," he says. "They allow us to perform at the highest level on behalf of our clients."
Those clients represent some of the most complex and challenging risks in the country: the largest private-label health and beauty aid manufacturer, the fourth largest law firm, a security company that provides some 1,000 armed guards to protect federal government buildings, a leading pharmaceuticals manufacturer, a regional airport, and a heavy construction contractor, general contractor and developer. The McIntyre Group's minimum premium is $350,000, "and we'd like it to be $500,000," McIntyre says.
Established in 2002, The McIntyre Group is anything but an upstart. Its premium volume is approaching $20 million, and its growing staff represents eight decades of marketing, underwriting, risk management, claims, and administrative experience at the highest levels. Founder Tony McIntyre brings to the table 15 years with a major regional brokerage, where he was a board member, top producer, and stockholder. Interestingly, he hadn't planned a career in insurance.
(Left to right) Adrian Miles, Account Executive, and Luanne Vester, Director of Claims Management, are members of the Vi-Jon Laboratories' account team. Vi-Jon Laboratories is the country's largest private-label health and beauty aid manufacturer, and one of The McIntyre Group's clients.
"After completing my military obligation, I joined the computer division of Xerox, and I sold a network system to a large regional broker," he says. "The owner liked my work, so he offered me a job, and I accepted." Early in his insurance career, Tony was given the responsibility for recruiting producers and future executives. The experience gained in this capacity has served him well in building The McIntyre Group's team of insurance professionals. "Our 'marching orders' (and our company slogan) begin with 'Quality service comes from quality people,'" McIntyre says with pride.
Roster of champions
At The McIntyre Group, producers are called "marketing executives," and each one brings to the organization an impressive level of accomplishment. Grant Goldsmith holds an MBA from Seton Hall University and a systems engineering degree from West Point. Luanne Vester, director of claims management, has 20 years' experience in insurance, earned eight varsity letters in college, and is a single-digit-handicap golfer who has been her golf club's women's champion eight times. Tom Kolongowski also was a college varsity athlete and graduated from the U.S. Naval Academy with a degree in physics. He has strong experience in the property/casualty brokerage business and in financial consulting.
Serving as vice president of administration and human resources is Nan Weinberg, a former coxswain on her crew team, who is a business graduate of Drexel University. Adrian Miles won three varsity letters in wrestling at the University of Virginia and graduated with a degree in business administration. Anthony Tomassetti, vice president of education and risk management, spearheads the agency's quality control program, including its complex sales process. Tomassetti graduated from Penn State and is a competitive sailor on Chesapeake Bay. "Anthony trains people both with and without insurance backgrounds to be highly successful performers in our agency," McIntyre says.
Critical to his agency's success, McIntyre believes, is the strong sense of team spirit that permeates his staff. "We don't have any room here for big egos and me-first types," McIntyre says. "We strive to create an environment of warmth and camaraderie as well as high levels of technical skill. Our people are both team players and overachievers."
Everyone on the agency's staff is required to obtain an insurance license. "In New Jersey, it's a tough course; it's three and a half months of class at night," McIntyre says. "Claims people, CSRs, account executives, and marketing executives--everyone here must have a valid insurance license." The McIntyre Group's commitment to insurance education is also evident from the professional designations its employees have achieved: CPCU, ARM, and CIC. Of note, the agency pays for all continuing education, offers extensive on-the-job training, and is proud to have had one of its staff members recently earn a CIC scholarship.
Targeting complex risks
As mentioned earlier, The McIntyre Group provides risk management and insurance services to a number of large, sophisticated accounts. The agency's client roster is selective in order to ensure that each account receives the five-star service that is a hallmark of The McIntyre Group. McIntyre targets risks in the following industries and professions:
* Aviation
* Banking/investment
* Construction
* Distribution
* Education
* Engineering/testing
* Golf and hospitality
* Health care
* Law/accounting firms
* Manufacturing
* Mergers and acquisitions
* Technology
* Wrap-ups
An emerging exposure for both physicians and hospitals concerns allegations of mistakes in billing. To address this exposure, some of The McIntyre Group's senior management team in the mid-1990s helped create two billing E&O programs: one for physicians and the other for health care institutions. Both programs offer limits between $1 million and $10 million, and retroactive coverage is available. Coverage is written on a nonadmitted basis through a highly rated carrier group. "Our form provides very broad coverage, and our claims people, outside legal, and compliance team do an excellent job when a loss occurs," McIntyre says.
Combined, the two billing E&O programs account for some 10% of The McIntyre Group's premium volume. "This is a highly complex sale that involves the insured's legal counsel, the chief financial officer, the president, and the board of directors," McIntyre explains. "This risk class is extremely complex, and Lloyd's is our only major competitor."
Although the billing E&O programs currently are offered direct, McIntyre says the agency's management is considering making them available to retail agents. What's more, the agency is researching several industries and program partners to assess the feasibility of developing additional programs.
Risk management focus
At the core of The McIntyre Group's philosophy is a strong commitment to the practice of risk management. The marketing executive is the team leader in the risk management process and is assisted by the account executive and the claims representative. These team members are assigned to the account at the first meeting. Working together, the marketing executive and the account executive first acquire a thorough understanding of the insured's business objectives and insurance needs, then research appropriate marketing solutions. "We read policies line by line," McIntyre says. "We devote a minimum of two to three months to learning everything we need to know about each client." Coverage is placed with highly rated carriers like AIG, Chubb, CNA, The Hartford, One Beacon, St. Paul/Travelers, Zurich, and Lloyd's. Through AIG and Chubb, the agency also arranges personal lines coverages for its high net worth clients.
(Left to right) Bob Hess, Vi-Jon Vice President/Finance and MIS, presents Vi-Jon's Vendor of the Year award to The McIntyre Group, represented here by Adrian Miles and Tony McIntyre.
When the placement phase is complete, The McIntyre Group offers a full array of insurance support services, including risk control strategies, contract reviews, claims management, and experience modification modeling. "We have customized software we use to develop an experience modification projection several months in advance, so our complex risks can know what their experience mod is going to be," McIntyre explains. "Then they know what their work comp costs are going to be, and they can budget appropriately."
He continues, "We meet with each client at least four times a year and review every single claim. Our claims specialists make sure that reserves are at the correct levels, so that when an injured employee returns to work, the reserve is decreased. We do these kinds of nitty-gritty things every day. That's why we like to hire engineers and CPCUs--disciplined professionals who understand the need to be thorough and accurate." The agency also has a risk management consulting division to assist clients with more complex exposure issues as well as longer term risk strategies.
Driven by quality
The key reason why The McIntyre Group is able to perform at such a high level on behalf of its sophisticated clients, McIntyre says, is that "we're quality driven. We pursue clients who are the same kind of people we are. We want customers who appreciate good service and quality products and who understand the importance of investing in loss control," he asserts.
A client that exemplifies these traits is Vi-Jon Laboratories, the country's largest private-label health and beauty aid manufacturer. Based in St. Louis, Missouri, Vi-Jon presents highly complex risk exposures that require the attention of experienced professionals. Vi-Jon's vice president of finance and management information systems, Bob Hess, is responsible for property/casualty risk management. Hess has high praise for The McIntyre Group's efforts on his company's behalf, and particularly for the solutions developed by the risk management team assigned to his account: Adrian Miles, account executive, and Luanne Vester, director of claims management. In fact, The McIntyre Group recently was honored as Vi-Jon's Vendor of the Year in the administration category, Hess says.
Tony McIntyre (right) meets with Vi-Jon CEO John G. Brunner in Vi-Jon's St. Louis offices.
What criteria did Vi-Jon's management consider in evaluating insurance agencies, and why did they choose McIntyre? "Since Vi-Jon was founded in 1908, we've focused on providing a high level of service to our customers," Hess says. "When it came to choosing an insurance partner, we wanted to do business with a professional team like ours: reliable, responsive, and with good follow-through.
"Tony and The McIntyre Group did what no other agency did: They went through each of our insurance policies in detail, from front to back," Hess responds. "They took the time to develop a clear understanding of our business and were able to negotiate the best terms with insurance carriers. September 11 was a bad time for the insurance industry, and Tony helped Vi-Jon tremendously in dealing with dramatic premium increases and coverage restrictions."
Using outside professionals
While The McIntyre Group hires highly trained insurance professionals to run its day-to-day operations, it also recognizes the value of using specialty consultants on an outsourced basis. Tony brought in InMarket Partners, LLC, Valley Forge, Pennsylvania, to help keep the agency's message focused, consistent, and highly visible in the marketplace.
In the summer of 2003, Tony McIntyre made another outsourcing decision that is rare for insurance entities under five years of age. He was referred to the well-known, business-consulting firm Business Management Group (BMG) of Hartford, Connecticut. "I decided to bite the bullet and hire a respected independent firm to give me an objective report card," McIntyre says. "Mike Policastro and Annie Knox from the BMG team came to Cherry Hill and went through every aspect of our operation from systems to accounting to staffing to compliance to financials, as well as short- and long-term planning."
What's ahead?
McIntyre sees "a huge opportunity in the middle market and larger account area for agencies that provide tailored, quality service. Some clients want to deal with the big national brokers--but many come to an agency like ours because they want to be more than just a number.
"I see a great opportunity for us as a result of regional brokerage consolidation," McIntyre says. "This trend will allow us to grow and become a larger entity, yet have the flexibility to turn on a dime and still be able to deliver custom service. It's hard to do that if you're a national brokerage house with 10,000 clients."
This promising growth opportunity also presents challenges. For McIntyre, three challenges loom particularly large in his goal to reach $150 million in premium: "finding quality people, staying ahead of the technology curve, and creating a solid base of working capital." *