Rough Notes Marketing Agency of the Year candidates

One of the agencies featured in a Rough Notes cover story during 2009 will be chosen Marketing Agency of the Year. The agency principals of the winning firm will be presented with the award at a dinner held in their honor this spring.

The winner will be selected by votes of the previous 20 years’ Rough Notes cover agents (from the years 1989-2008).

The nominees for this year’s award are described on the following pages. The winning agency will be announced in February, and a full story on the winner will appear in a future issue.

February

Seubert & Associates
Pittsburgh, Pennsylvania

“There’s a strong feeling that we’re all in this together.” That's how Seubert & Associates President Brian Long describes the attitude at his 75-employee firm. The employees’ buy-in to the agency’s goals and strategies is reinforced by management’s sharing of the financials with all employees, and by its broad ownership structure–30 of Seubert’s employees are owners. Everyone who reaches 10 years of service receives $10,000 in agency stock. At age 65, employees must sell their stock back to the firm. Producers and managers of the firm’s 11 profit centers also have other paths to ownership.

Since 1990 this 34-year-old firm has grown from $1.6 million to $12 million in annual revenues, expanding from its initial commercial lines business, specializing in trucking and franchise car dealerships, to include a surety department and employee benefits. The benefits commitment led the agency to embrace wellness as part of what Long calls “a complete physical for our clients that includes diagnosis and recommendations for change. And one of the first steps we took was to apply it to ourselves.” Seubert installed fitness machines at the agency and helped support employees in their efforts to lose weight and eat more healthful foods. This resulted in substantial health benefits to employees and–again–a buy-in to the corporate strategy.

Seubert has long “courtships” with prospective employees, including interviews with their spouses. It sends new hires to its insurance companies for a period of at least a year, during which time the employees’ salaries are split with the insurance company.

	"What better place to start a wellness program than right here? We installed workout stations at the agency and offered moral support to each other." —Brian Long
On the cover: Brian W. Long, President (seated), visits a client		Brian Long (left foreground) makes a point at a monthly sales meeting.

March

Frank H. Furman, Inc.
Pompano Beach, Florida

As a specialist in construction accounts in a state where real estate has been particularly hard hit by the recession, Frank H. Furman, Inc., has faced more than its share of challenges in the past couple of years. Workers comp business written by Furman has been hit not only by the reduction of employees among contractor insureds, but also by a state-mandated 60% reduction in rates over the past five years.

This 46-year-old agency, which writes about $100 million in annual premiums, has successfully retained clients and positioned itself for an eventual rebound in construction by not deviating from its business model of working consultatively with its clients. “Residential contracting has almost completely dried up,” says Rob Foote, executive vice president, “so we're working to help many of our residential contractors transfer into the commercial and industrial contracting area.”

Furman also replicated its risk management service model to enter other niches including the life sciences industry, where it recently acquired a number of accounts. And it continues to serve clients in its other specialty niches: automotive businesses, property management and manufacturing.

Among the tools that the agency uses to keep its retention rate above 90% is stewardship reports, which specify their deliverables for clients and hold the agency accountable. Furman executives also serve on boards and committees of trade associations in the agency’s targeted industries.

	"When we interact with clients at 'peer level,' it pushes us away from being a service provider and toward that trusted advisor status." —Rob Foote
Agency executives with client on the cover		Robert Foote, CPCU, ARM, Executive Vice President (left), visits with a roofing client.

April

Chappell, Smith & Associates, Inc.
Nashville, Tennessee

Chappell, Smith & Associates, Inc., decided years ago that education was the key to just about everything. With respect to customer retention, that meant the agency would become a niche writer so that producers could become experts and thereby educate clients about their insurance needs and risk mitigation techniques. Nearly half of the agency’s revenue comes from its aviation division.

Focusing internally, CS&A offers the services of financial guru Dave Ramsey to educate younger employees who are new to the agency on the roles that debt reduction and financial management play in financial security. This is an essential lesson for the next generation of the agency’s producers and owners, notes Chris Turnbull, chief financial officer.

The agency also has a junior board of directors to whom to the board gives the responsibility of addressing issues and solving problems. The chairman of the junior board has a non-voting seat on the senior board. “We're grooming them with real problems so they already are thinking about how to run a company,” says Chris.

Borrowing an idea from bygone days and reversing it, CS&A invites young company underwriters to spend a week at the agency. In the process, they gain an understanding of the pressures and problems that confront their agents. “Many of these young underwriters move to other companies,” Chris points out. “But they remember us and want to work with us wherever they go.”

	"We don't have the traditional hierarchy of management. All of our producers basically help with the management of the company." —Chris Turnbull
On the cover: Principals of Chappell, Smith & Associates, boarding their company plane		The Junior Board of Directors includes (seated from left) Julie Fouraker and Amy Trigg; and (standing from left) Sean Kerr, Todd Lee, Casey Harris and Christi McDonald. Inset: President of the Junior Board is Jeff Rhodes.

May

Parker, Remsen & Sullivan
Highland Park, New Jersey

Want a recipe for success? Take a 125-year-old generalist agency steeped in a “customer first” tradition, blend in a focus on niche markets, and top it with a consultative sales approach.

This approach has certainly worked for Parker, Remsen & Sullivan, which traces its roots back to 1884 when Neilson T. Parker founded the Neilson T. Parker Company in nearby New Brunswick, New Jersey.

The agency has grown from a one-person agency serving the local community to an agency with 26 employees serving more than 5,000 individuals, families and businesses throughout the United States, Canada, the Caribbean, Bahamas, Europe and Asia.

Parker, Remsen & Sullivan was a niche marketer long before the term became popular. In 1989, a new business opportunity for a family member drew the agency into its first niche: the security industry. The agency’s menu of niches now includes high net worth personal lines, labor unions, not-for-profit organizations and restaurants. Not only does the agency service restaurant accounts, it also insures the New Jersey Restaurant Association, which recently endorsed the agency to its members.

The agency enjoyed growth in the recent soft market years thanks to new business that came in from both its niche marketing efforts and from clients who just want to do business with an agency that has an exceptional reputation in Central New Jersey. “We have a number of clients that have been with us for three or four generations,” Vice President Michael Sullivan says.

	"One of our strongest suits is our consultative approach where we sit down with a client or potential client and identify the risks they are facing and the best ways we can help them mitigate those risks." —Michael Sullivan
Executives of Parker, Remsen & Sullivan on the cover		W. Burton "Tripp" Salisbury III, Executive Vice President, meets with Karen Vitale, Director of Operations for the New Jersey Restaurant Association, an agency client.

June

Jeff Holmes, Stuart DeSelms and Bill Grant purchased The Holmes Organisation in January 1998. Ten years later, in 2008, agency staff had grown from 32 to 60 employees and revenues had jumped from $3.2 million to $10 million.

A key to making the firm operate more efficiently–and in cutting out most weekend work–was investment in an automated processing system. The agency was a “very early adopter of paperless workflow,” according to Jeff.

A massage therapist was provided during the time of transition to help relieve employees’ stress. This resulted in the addition of a relaxation room and the hiring of a full-time wellness coordinator who manages wellness initiatives for staff as well as for customers.

The agency has begun to focus on providing strong risk management, concentrating on clients who provide them with enough revenue to justify the high level of service, explains Bill.

To compete with larger brokers and get a large percentage of local business, “we had to become experts in those areas where we intended to compete,” explains Stuart. Internal expertise has resulted in: a large oil and gas practice; a home health care and allied medical market niche; a waste division; and a strong banking and financial division.

The agency helps clients find different ways to manage risk if insurance cannot provide an effective solution. For example, “At the end of 2007, we formed a medical malpractice captive for a group of physicians,” explains Jeff. “We also have helped clients take advantage of self-insurance opportunities where their risk profile justifies such action.”

	"We want our clients to see us as professionals who help them manage risk, not as insurance salespeople." —Bill Grant
Agency principals on the cover		One of the agency's clients, the BOK Center, is host to a variety of musical and sports attractions. Visiting the center are (from left): Staci Naugle, Account Executive; Julie Rohman, Senior Customer Service Representative; Randy Pierce, Risk Architect; and Dave Grimmer, COO.

July

Pritchard & Jerden, Inc.
Atlanta, Georgia

Beating the big brokers at their own game has been a key element in the success of Pritchard & Jerden, Inc. Established in 1960 by William J. Pritchard Jr., the agency saw an opportunity to provide sophisticated risk management services to clients it believed were being underserved by the mega-brokers.

“Bill [Pritchard] didn't just sell a policy; he sold risk management,” says agency President James L. Bailey. “This consultative approach has become part of our DNA.”

Serving as an outsourced risk management department for its clients, Pritchard & Jerden views itself as having a proprietary interest in everything it does for a client. This interest goes beyond traditional insurance services and extends to deploying resources to help clients manage their bottom line.

Pritchard & Jerden has developed specialized expertise in meeting the insurance and risk management needs of clients in the fields of real estate, manufacturing, hospitality, technology, life sciences, professional services, and energy. To address a key exposure for its commercial clients, the agency in 1971 established a life and employee benefits division.

Pritchard & Jerden’s consultative risk management philosophy also extends to the personal lines arena, and the agency has expanded that division from simply an accommodation for commercial clients to a thriving profit center.

Strongly committed to professional education, Pritchard & Jerden encourages employees to pursue designations like CPCU, CLU, CIC, CEBS, and CPA. The agency pays tuition and other costs and provides employees time to study at work.

At Pritchard & Jerden, a rich blend of tradition and innovation points to a bright future as the agency approaches its 50th anniversary.

	"The consultative approach to risk management has become part of our DNA." —James L. Bailey
Executives of Pritchard & Jerden on the cover		The sales meeting is an important part of Pritchard & Jerden's process. James L. Bailey, CPCU, CPA, President (standing), explains ways to create and enhance resources that will benefit clients.

August

Paradiso Financial & Insurance Services
Stafford Springs, Connecticut

About five years ago, Chris Paradiso started his own property/casualty agency, Paradiso Financial & Insurance Services, LLC. The decision followed a failed deal with a P-C agent who was going to supplement Chris’s life, health and annuity business.

At the time, Chris distrusted his computer and used it pretty much for e-mails only; however, he also recognized that a lot of people were using the Internet to research insurance before buying. He was introduced to Astonish Results, LLC, a digital marketing company, and moved from very little Internet presence to a preeminent position on the global electronic highway.

“Astonish worked with me to set up a system that involved much more than a Web site,” Chris reports. “The main idea was to drive people to Paradiso Insurance so we could make personal contact with them. The tracking system sends the prospect's information directly to my cell phone and I make certain that I contact them within the hour. The key is to provide a warm response to what starts out as a cold request.”

The agency also has a full-time blogger and tweeter, Dan Thon. One of his recent blogs, for example, focused on wedding insurance. Paradiso Insurance offers a wedding package that includes not only wedding insurance but also includes help with combining the auto and homeowners or tenant coverages for the newlyweds. Dan then tweeted people who were getting married and became Twitter friends with them.

The agency also has set up a Partners of Paradiso Insurance section on its Web site that features clients and their services. In addition, the agency uses its client database to cross-sell.

	"We are helping to drive business to [clients]. Talk about a win-win. As their business grows, so do their risk transfer needs. They make more money and so do we." —Chris Paradiso
Anton Reed (left) and Chris Paradiso on the cover		As the agency's full-time blogger, Dan Thon connects with insureds and potential clients through blogs, Twitter and other social media sites.

September

MJ Insurance, Inc.
Indianapolis, Indiana

As every successful agency principal knows, growth is great–but it must be managed, and that presents its own set of challenges. At MJ Insurance, the father and son team of Michael M. Bill, cofounder and chairman, and Michael H. Bill, CEO, energetically embrace the challenge of mapping their agency’s future.

Established in 1964 by Michael M. Bill and a partner, MJ Insurance now employs 111 people at its Indianapolis headquarters and another 10 staffers in its office in Scottsdale, Arizona. In fact, it was the younger Bill, Michael H., who saw an opportunity for the agency to penetrate the rapidly expanding market in the southwestern United States. “Among our areas of specialization are construction, transportation, energy, and mining operations,” he says. “That dovetailed nicely with the Southwest.”

MJ Insurance is strongly focused on delivering specialized risk management services to selected niche markets. One profitable niche is Japanese-owned manufacturing firms, which are served by the agency’s Japanese Business Team. Another niche is the Women’s Sorority Division, which provides insurance and risk management services to chapter houses for 24 of the nation’s 26 national sororities.

Building a strong team of producers is a priority at MJ Insurance. Kevin Ryan, director of sales, spearheaded the creation of a Chairman’s Council for Top Performers to identify the best practices of each top producer.

Committed to maintaining their independence, the principals of MJ Insurance are working with consultants to develop a long-term strategic plan for the agency they have worked so hard to build.

	"Our clients look at us as partners who can help them get through these tough economic times." —Jon Loftin President and Chief Operating Officer
Michael H. Bill, Chief Executive Officer (left), and Michael M. Bill, Chairman, on the cover		One of the niches that MJ serves is national sororities. MJ's National Sorority Division includes (from left): Lisa Ripley, Account Executive; Heidi Lewis, Account Executive; Bev Stiles, Claims Consultant; Cindy Stellhorn, Vice President; Heather Cox, Claims Service Manager; and Ruth Knauer, Assistant Account Manager.

October

Clark-Mortenson Agency
Keene, New Hampshire

This agency offers its 52 employees a partnership bonus program based on profitability; flex time during spring and summer months; special corporate rates on loans to purchase personal computers; and a paid day off for volunteering in the community. Staff recognition culminates in yearly awards when employees are nominated by coworkers. In 2008, Business NH Magazine named Clark-Mortenson the top business to work for in all of New Hampshire among companies with fewer than 100 employees.

In the past 10 years, the agency has focused on bringing additional services to clientele “who would appreciate those services,” says Tom Minkler, president. A series of seminars for clients and prospects on compliance issues has expanded to a compliance seminar that is held every four to six weeks for the local business community.

According to Business Solutions Director Ken McGee, the agency’s consultative approach “has allowed us to compete for business with any agency or even national brokers…along with the extra advantage of being local.”

Personal lines comprises 42% of the agency’s $4.5 million revenues; commercial lines accounts for 45% and the balance is group benefits and financial services. The agency’s Select Client Group works with clients who have additional higher-end personal risk management needs.

Clark-Mortenson specializes in markets such as hospitality, construction, social services, and business associations. For an association of small retailers, “we put together a workers compensation self-insurance plan for the group,” Tom explains. “We just had a 30.4% dividend, thanks to excellent loss experience.”

	"Every client or prospect will have the same type of experience no matter who he or she deals with at the agency." —Tom Minkler
Agency officers on the cover		Tom Minkler discusses dinner preparation needs with client Chef Cassandra Davis of Michele's Ristorante, one of the more popular restaurants in Keene, New Hampshire.

November

Kuhl & Company
Morton, Illinois

Phil Kuhl, CIC, started Kuhl & Co. in 1979 and adopted a mission statement and philosophy that laid the groundwork for success. “The statement talked about being here to serve first our customers honestly and with integrity,” Phil remembers. “It continued that the agency also existed to serve employees and respect them as unique, and to support and serve our insurance carriers and to live up to our contractual obligations.”

The next generation, represented by Phil’s son, Mike, and son-in-law, Dave Zern, built on that base after reviewing perpetuation plans which made it clear that growth was key. In March 2004, Kuhl & Co. made the decision to tackle organic growth. “We hired MarshBerry to help us create a total agency growth culture,” Mike says. “We implemented a new commission structure that emphasized new business.

“Under the plan we put in place, producers had to write at least $50,000 in new commissions or their renewal commissions would go down,” Mike explains. “We also moved all the small commercial and personal lines business into a new department so our producers would be concentrating on mid-sized and large accounts.”

Not everyone was pleased with the change. Of the 22 people at the agency at the time, six left, including two producers who represented about $800,000 in commissions.

The transition took almost five years. The agency has hired 18 people, including seven producers, since 2004. Eleven of those people are still there, including three of the producers. But the final results speak for themselves. “This year has been our best ever in new business with $5.7 million in premium, up from $1.7 million last year,” Mike reports.

	"We don't sell. We ask the customers what they want and help them achieve that." —Phil Kuhl
Agency principals on the cover		Every year, Kuhl & Co. people pitch in at the Annual Pumpkin Festival. In top photo, agency executives Mike Kuhl and Dave Zern tempt visitors with snacks, including some of the best-tasting pumpkin treats in the country.

December

Rose & Kiernan, Inc.
Greenbush, New York

Since 1974, employees have owned and operated Rose & Kiernan, and the ESOP currently owns 54% of the agency’s stock. Employee empowerment and a commitment to high ethical standards and professionalism have been key to the agency's success. Since 1994, revenues have grown from $6 million to $39 million, with 40% coming from employee benefits.

An emphasis on benefits includes having a wellness director on site to handle the wellness program for the agency’s 195 employees and provide services to clients.

According to President/CEO John Murray, the agency has “strong relationships in London and Bermuda so we can provide risk transfer solutions to the large, sophisticated client as well as the small and medium-sized companies.” Serving these clients are teams of service professionals in 10 offices who have “instant access to experts in every insurance discipline” through voice, data and video capabilities. Murray says that the agency also has a “very strong back office that provides loss control and claims support.”

The agency has distinguished itself by providing excellent service to clients and by being a good corporate citizen. The agency has an endowed foundation that makes contributions to charitable organizations and helped found a community college program that focuses on insurance.

Transparency with staff and clients is important at Rose & Kiernan. “We tell clients exactly what we will get paid,” John says. “We also reveal that we may receive a contingent commission from the insurance company if the results are strong.” The agency is also “a very flat organization. I am remunerated for my sales efforts, not because of my title. And that’s true of all our officers.”

	"We have started to gain recognition as an agency that can solve difficult problems for clients." —John Murray
Agency principals on the cover		Video conferencing allows for people from any of the 10 offices to meet virtually. John Murray, President/CEO; Joseph F. Vitale, Executive Vice President and Chief Financial Officer; and George F. Mikes, Executive Vice President, meet with Executive Vice Presidents Charlie Daniels and Mark Nickel via video link up.