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Shining stars
The best not only survive, they thrive.
And that’s the calling card of Insurance Business America’s Fast Brokerages 2024, a collection of standout companies posting eye-catching numbers amid tough times.
The Fast Brokerages are known for their ability to adapt, develop new models and refine their existing processes to grow and be the fastest growing brokerages in the United States.
Nominees shared their growth numbers in 2022 and 2023, with 15 companies being recognized with the prestigious Fast Brokerages title.
Sales growth: 30 percent
Years of operation: 27
Last year, the company completed a record number of acquisitions (32), with growth split between organic and inorganic growth.
“For me the two go hand in hand, they don’t live in an isolated world,” says managing director John Scroope.
Risk Strategies gives the green light to acquisitions for new products or dimensions that can open up their existing businesses.
“Organic growth is driven by both the companies and partners doing what has worked for them over the years,” adds Scroope. “But the magic happens when those same long-time and new producers look both left and right and say, ‘Wow, we just added something I’ve never had before’.”
Scroope explains the types of questions Risk Strategies asks before an acquisition:
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Are they experts at what they do?
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Have they found a way to offer new solutions or innovative products?
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Do they have highly ethical leaders who think about their employees and customers the same way Risk Strategies does?
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Can we add some level of operational efficiency or customer experience to make a more profitable business?
Risk Strategies does not acquire based on predetermined annual figures.
“Part of our secret sauce is to stay true to our strategic direction when making acquisitions,” says Scroope.
The other crucial factor is how Risk Strategies builds partnerships with the new companies.
Scroope describes them as “integrators” and highlights their first retail acquisition in Canada.
“If we can continue organic growth supported by inorganic growth supported by a truly intentional integration process, while not only retaining but also contributing to the growth of the next generation of insurance professionals, then that is the Holy Grail.”
John ScroopeRisk strategies
“I went to Toronto to tell them, ‘We’re so glad you’re here,’ and I meant it. I explained how they are our platform for a new frontier and the start of something that could be even bigger. It was about coming up with a roadmap for how they can benefit from what we bring to the party and how we can benefit from what they bring.”
Throughout its history, Risk Strategies has acquired over 100 companies and is focused on improving the process.
Scroope says: “We know we can improve the feeling of integration. We have been particularly busy over the last six months taking what we have learned over the years and developing a very thoughtful, linear and repeatable process of what integration should look like.”
Still, Scroope estimates that only 80 percent of the work will fall into a codified process that requires 20 percent customization.
“If we don’t do that, we try to take a square peg and put it in a round hole.”
The finer detail of how to drive and amplify growth across all risk strategies lies with its people.
For Scroope and his fellow leaders, there is a desire for individuals to prosper through ownership of their companies.
“Probably the proudest moments of a year are looking back at an acquired company where two or three employees have advanced to larger leadership positions. It’s not a charitable endeavor, we need people who think differently than us. We get excited when we find those gems that say, ‘Hey, I’m so glad I’m a part of this.’ I’d love to step up and take on more.’ We fully support them in that,” he says.
After completing an acquisition, Scroope invests in building a bond.
“I ask, ‘What’s non-negotiable?’ What would they warn me about coming in and changing because it defines too much of who this company is? Or vice versa: What would they like to see as a change,” he explains. “It could be the number of days working from home or the food truck. In my opinion it could be easy, but what doesn’t matter to me is that the table is at stake for someone else. We exist to preserve and manage not only what was, but also the possibility of what could be.”
This summarizes the framework underlying the impressive growth of risk strategies. The company only engages when it is right, and then with precision and awareness.
Scroope adds: “We don’t bid on 10 out of 10 offers that come across our desk. Many end up being cut because they don’t stand up to our scrutiny, be it from an economic, cultural or specialized perspective.”
Sales growth: 15 percent
Years of operation: 14
The Chicago-based company, with nearly 1,000 brokers, has three pillars that have driven growth:
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Strengthening the infrastructure and breadth and depth of brokerage/underwriting teams
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Because they are highly specialized in practice group verticals, they most often facilitate and underwrite
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have a high level of execution
Chairman and CEO Tim Turner highlights three acquisitions in the last 18 months that have had a significant impact on growth.
Centurion liability insurance services: “This was a very important acquisition as it involved one of our customers, IOA Insurance Services, a captive wholesaler. We were able to purchase this and immediately strengthen our trading relationship with IOA.”
Griffin Underwriting Services: “It was an important acquisition for us in the northwest. We needed a greater presence and stronger retention capability in this region. Griffin was the leading bonding authority in Seattle and in the states of Washington and Oregon, with extensive capabilities as far away as Alaska and simply an outstanding team of professionals.”
Partner Insurance Services: “They are known to be outstanding performers in professional liability insurance and are also truly talented accident brokers. They were located in geographic areas that complemented our platform and presence in San Francisco. We have multiple offices in California and a very strong office real estate and casualty brokerage in San Francisco. In Tampa and Miami in particular, we have attracted some very high-profile D&O and E&O brokers. Finally, we have attracted some very strong collision brokers in Illinois. It was a great fit for us.”
In addition to welcoming high-performing companies into its fold, RT drives growth through an “always-educating, always-recruiting” attitude.
“We constantly evaluate our talents and put them in situations where they can learn quickly. The volume of business coming into our channel is a luxury and accelerates the learning curve.”
Tim TurnerRT specialty
The highlight of this is Ryan University.
“We are able to accelerate the learning curve of our new trainees and actually enable them to be creative much faster than our competitors. We have the ability to produce talent,” explains Turner. “It depends a lot on their level, be it broker assistant, technical assistant, broker or underwriting.”
The success of their training is evident: as of June 2022, RT Specialty has won 19 different individual and corporate awards.
RT Specialty also ensures it has the best talent within its ranks to drive growth and study at Ryan University.
Turner says: “We have a very aggressive and vigorous recruitment program for summer internships. We recruit hundreds of young talent from some of the best risk management programs and universities across the country. We give them an internship and can select the best from this group. It’s a very dedicated system that produces hundreds and hundreds of talented young brokers and underwriters.”
All the infrastructure and talent development come together and allow RT Specialty to benefit from niche consolidation phenomena that the company constantly monitors the market for.
“These are business lines that are deteriorating in the standard market, resulting in the approved standard market not renewing very large business portfolios, such as transport, painting, shared economy, and business flowing into the E&S market,” comments Turner. “To be able to respond quickly by working with a large group for clients at a very high level requires a high level of specialization as well as depth and breadth to handle the volume.”
RT Specialty’s structure allows the company to react in the competitive environment and differentiate itself from the competition.
Turner added: “We need to seize these opportunities and capitalize on them faster, and a big part of our success is that we can do this much faster than our competitors.”
- ALKEME
- American Risk Management Resources Network
- Commercial Insurance Partners
- Commercial insurance connections
- GCM Insurance and Risk Management Consultants
- Heffernan Network Insurance Brokers
- Higginbotham
- Hirschfeld & Associates
- Path point
- Presley Insurance Group
- The insurance people
- The Liberty Company Insurance Brokers
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2024-05-06 04:00:00
www.insurancebusinessmag.com
