Growth doesn’t just come through acquisitions | Insurance business America
Internal processes are also crucial, says the industry veteran
Insurance News
By Steven Byerley
In insurance, growth is not just a goal; It is a testament to adaptability and strategic planning. According to Jim Hickey (pictured), executive vice president and head of retail banking at World Insurance Associates LLC, the company is implementing a robust growth strategy that involves not just acquisitions but also internal operations. This dual focus creates the conditions for a comprehensive approach to sustainable growth.
“At World Insurance Associates, revenues typically range from $120 million to $150 million,” Hickey said. “Internally, we have an operations team focused on organic growth and integrating acquired offices.”
National presence
The model adopted by World Insurance Associates involves providing carriers who are different from what agencies are used to, expanding their horizons both in terms of who they can write to and where they can write. expand. Hickey emphasized the organization’s national presence, offering the opportunity to write in different parts of the country, coupled with geographic expertise to address regional nuances.
While Hickey oversees the private client division, his focus goes beyond that. His professional career is based on general professional competence. In his current position, he coordinates the department’s processes and demonstrates the company’s commitment to a diverse portfolio.
Geographic insight
To enable further growth, World Insurance Associates has implemented a Private Client Group Practice internally. This practice aims to provide expertise to those unfamiliar with high-net-worth clients, providing not only a carrier base but also geographic insight. Hickey emphasizes the importance of understanding the differences between the writing guidelines for locations like Telluride, Colorado, and those in Illinois.
“We are a national organization and provide the ability to write in different parts of the country and provide the geographic expertise to help shippers because not everyone in New Jersey knows about the wildfire issues in Colorado or California and the California earthquake,” or the hailstorms in Texas, for example,” Hickey said.
Balancing risk and aggressive selling is a common challenge in the insurance industry. The concept of “surplus lines” has evolved and become increasingly important for wealthy investments. This shift is being driven by the industry’s response to loss rates and the need for additional outlets to effectively manage risk.
High net worth placements
“Prior to 2020, less than 10% of all high net worth individuals transacted through excess lines. In the future, this figure is expected to increase to up to 40%,” said Hickey.
Hickey has extensive experience in this area and reflected on the difference between high net worth companies and standard businesses. While its high net worth inventory accounts for 12-15% of total volume, the firm writes $800 million in premiums across all offices, including $85 million in high net worth companies. Hickey expects a shift in which the standard business will take a more active role in risk mitigation and adapt to the evolving dynamics of the industry.
The role of technology
Innovation also plays a crucial role in the insurance landscape, especially when it comes to information aggregation. Technological tools now allow insurance professionals to more easily access information on risk exposures, property details and construction information.
As the industry continues to evolve, Hickey sees the potential for technology to streamline processes and improve customer interactions. He emphasizes the importance of using technology to make interactions more efficient and collect more relevant information.
“Innovation helps accelerate the aggregation of information through third-party resources,” Hickey said.
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2024-07-01 15:06:58
www.insurancebusinessmag.com
