Marketing Agency of the Month
Riding the "green" wave
Unique value-added puts C.M. Meiers ahead of the pack
By Dennis H. Pillsbury
For more than a century, Rough Notes magazine has written about and for independent agencies. And throughout that time, one of the most significant differentiators between successful agencies and the also-rans, many of which have been sold or now cease to exist, has always been the ability to develop an ongoing, unique value-added service platform.
Founded in 1934 by Clarence Meiers, C.M. Meiers Company, Inc., has prided itself on its excellent service to clients and insurance companies, resulting in a positive result for the client, the company and the agency.
As time passed, C.M. Meiers recognized that it needed to stay ahead of the curve in order to differentiate itself from its competition. The agency also began to develop specialty areas where it could immerse itself with the client so it could provide service that was unique to that area and that went beyond anything its competition offered.
At the same time, the agency also focused on making itself a great place to work so its people would stand out as ambassadors for the agency, providing value-added services and doing so in a way that made it clear that C.M. Meiers Company had its clients’ best interests in mind because the agency made the clients’ best interests paramount.
The result of this effort is that the agency has gone from a “small regional agency that was good to work for to a large privately held national player that can handle middle market and large accounts,” notes Jeff Kleid, president. “And it’s still a good place to work. Nearly everyone who came to work here was referred by one of our employees. There are a lot of family members and you know people aren’t going to recommend a place to a member of the family if they don’t like working there. That speaks volumes about the kind of environment we have been able to maintain as we’ve grown. We now have 80 people and approximately $12 million in revenues.”
In addition to the main office in Woodland Hills, California, the agency also has offices in Torrance, California; Dallas, Texas; and Las Vegas, Nevada. “We are working on opening offices in New York and London,” Jeff says.
Robert M. Bryar, executive vice president, explains that one of the reasons the employees love working at the agency is the attitude of the owner, Herb Rothman. “We’ve never had a layoff, and that’s because this is not a margin-driven organization. Herb understands that the margins will shrink in a soft market, and we’re in one right now. But he also understands that our service to clients will suffer if we focus only on the margins and staff according to revenue per employee rather than looking at how many people we need to properly serve all our clients.”
Bob, who has been with the firm about eight months, previously held a management position with a margin-driven large broker. “It was very difficult for me to balance margin and service in a soft market. So I decided to take some time to review my options,” says Bryar.
“But I really love the agency business, so when Herb asked if I was interested in joining, I jumped at the chance. Our model is kind of a throwback in today’s margin-driven, acquisition driven world, and that’s the reason we have such a high retention rate and are able to compete successfully with all the large brokers.”
Herb adds, “We understand that happy people translates to happy clients, and we have really happy people. And they’re great people. I really appreciate all the hard work they put in and reward them accordingly. Our people are among the most highly compensated in the industry because we want them to stay and develop strong relationships with our clients. Every other year, we take all our people and their guests to Las Vegas as a way of saying thanks.
“I joined this agency in 1963,” Herb continues, “and became a partner with Ted Pearson in 1970. We had $100,000 in business at that time. Obviously, we have grown significantly since then, and it’s been the people who have joined us who have been responsible. And we’re not just known in Southern California any longer. As our clients expanded into other areas, so did we so that, today, we are international in scope.”
“There are not many agencies as diverse as we are,” adds Jeff Kleid. “When you look at all the different areas in which we write business, it almost looks chaotic. But it all occurred naturally and logically as we expanded in areas where we had expertise and added expertise for opportunities that opened up because of the relationships we had with clients. They were just extensions of our focus on value-added services.
“For example,” he continues, “we have developed an expertise in handling the risk transfer needs of high net worth individuals. In some cases, these individuals are owners of businesses for which we write coverage and, in other cases, they are individuals involved in the entertainment industry, an industry for which we have written coverage for many years. In fact, in film and TV, we are getting very well known and are able to compete with the large brokers for major studio accounts. We also partner with agencies in Canada, UK and Europe to write coverage for film companies operating there.”
The specialty in high net worth individuals has resulted in diversification into many areas of risk transfer that often are not found at independent agencies. “We have an aviation expert,” Jeff points out, “because many wealthy individuals own planes. We also developed a policy for multiple homes that basically provides coverage for all homes owned by a person subject to a single SIR. These individuals often can afford to sustain a loss that would cripple you or me,” Jeff explains.
“However, if the person had two losses with each subject to a high SIR, that could prove difficult,” he continues. “Say, for example, there’s an earthquake that destroys the person’s California home and a hurricane that hits his home in the Hamptons. It’s unlikely that this would occur, but it could result in a real cash crunch if the individual had to pony up both the deductibles.
“That’s where our policy comes in,” Jeff explains. “It protects against this very unusual but potentially devastating confluence of events. Thanks to the excellent relationship we have with our insurance companies, we were able to find one that would underwrite this program. In fact, the company has since rolled it out to other agents.”
Jeff continues, “Another area that has become really important for many of our clients is a desire to be more ‘green’—more environmentally sensitive. We have clients in the garment business, for example, that are looking for ways to become green. Bill Kulchin who heads our garment division noticed this last year and immediately started to look for insurance coverage for green minded clients. Several clients that are part of our fitness program also are heading in that direction. Many are working to become LEED certified so that they can use this as a selling point to their clients. It’s a movement that is really catching on, and we’re working with those clients to provide risk management for green businesses. In fact, we created a green team, headed up by Valerie Seymour, to work with our clients and our insurance companies on products and services for green businesses.”
Valerie, vice president and director of the green team, notes that “insurance companies are beginning to recognize that clients that choose to go green often are better-than-average risks. The fact that these clients have chosen to act responsibly in one area usually translates to being more responsible in other areas, including risk management. In fact, many phases of risk management really do result in a more green company due to a reduction in waste and better handling of potentially hazardous materials.
“It’s a learning process and we’re just getting started, but there’s evidence that going green ultimately will result in an improvement in a company’s loss profile and also should result in reduced costs, long term. We’ve already identified several insurance companies that will work with green businesses and provide them with better coverage. For example, one insurance company is offering a policy that will pay for a business to rebuild green after a loss. In addition, our extensive experience in real estate has enabled us to create a Green Risk Guide and coverages for green building owners.”
Valerie concludes, “This is yet another example of why it is fun to work here. We’re always looking to be on the cutting edge and letting employees exercise their abilities to the fullest. If someone has an interest in a particular area, it’s encouraged. The agency is so good to the support staff and recognizes their contribution. It isn’t just the producers who are rewarded for their efforts. It makes for a cohesive, enjoyable atmosphere where everyone pitches in to help make the agency more successful.”
“Our emphasis on green risk management already has paid off,” Jeff continues. “We’re involved with The Green Hollywood Forum, which is actively creating green film companies. That involvement brought us further into the documentary market. We’re also working with the U.S. Green Building Council and with specific celebrities on sustainable green building mortgages on Wall Street. We are already talking to people that we never would have met before we got involved in the green movement.
“We’ve decided that this is the wave of the future. It gives us an opportunity to do good business and be good citizens. You couldn’t ask for anything better than that,” Jeff concludes.
C.M. Meiers exemplifies the entrepreneurial spirit that has been the hallmark of the independent agency system. The agency has seized opportunities, which have led to more opportunities, which have led to more opportunities and so on. Each step allows the agency to be more successful and better citizens and have the wherewithal to continue to treat employees well. The agency richly deserves to be recognized as the Rough Notes Marketing Agency of the Month.