Bethan: [00:00:37] Hi everybody, and welcome to IBTV. I’m Bethan Moorcraft, senior editor at Insurance Business. And on this episode we’re tackling an important subject, given the hyperactive M&A atmosphere lately, which is tips on how to succeed after promoting your insurance coverage company. Today, I’m joined by 4 company principals who’re chatting about their very own experiences of promoting their companies and shed some insights on the do’s and don’ts for submit acquisition success. Today’s panelists all share one factor in widespread. They bought to PCF Insurance, a high 20 US insurance coverage brokerage powered by an expansive community of company companions. I’m delighted to welcome Donnette Mayer, president of Universal Business Insurance. We have Seth Zaremba, the CEO of Zinc. We have Art Martinez, president of Insurance Associates of Triad. And Blake Izatt, principal of RBI advantages. It’s nice to have you ever on the present. Now, insurance coverage brokers and brokers are in excessive demand within the M&A market. As an company principal, what have been you searching for in a companion when promoting your company? Seth, I’m going to return to you first.
Seth: [00:02:01] Yeah. You know, I felt like we had solely served one facet of our consumer base, largely the property and casualty facet. And I felt like there was this complete different facet of our consumer base that we needed to unlock and provides rather more of an omnichannel expertise, provide issues that we had by no means performed earlier than, perhaps present companies that we would by no means had entry earlier than. And so we have been searching for somebody who would convey that sort of sources to us and permit us to be higher for our shoppers. And I assume in a brief manner of claiming it, , I felt like we have been taking part in on a public golf course for many of our profession, and I actually needed to get into a rustic membership. I needed to be on a course with fellow brokers that have been motivated, that have been pushed, and that had sources that we may each study from and convey to our consumer base. And so discovering the proper match for that was a very massive a part of my determination.
Bethan: [00:02:47] Thanks, Seth. I like that analogy. Art, what have been you searching for?
Art: [00:02:51] Yeah, so Bethan I used to be searching for a real strategic companion. So I’m 42 years outdated. I used to be 42, and we partnered with PCF, and I felt like our company, we have been hitting our stride. But I noticed you are near hitting our ceiling. And so what I used to be or for was someone who may assist us break by the ceiling and supply capability for our staff and permit us to do the issues that we’re good at or the issues that we’re nice at and the issues that we like to do. So an instance is we’re already totally built-in with PCF Shared Services Department, they usually’ve taken on our accounting. And so now I’ve the accounting clerk who had been with our company for 32 years and has been in insurance coverage for that lengthy. Now she is promoting and servicing insurances versus paying payroll, paying payments, accepting account payables, and he or she’s allowed now to do issues that she loves and is that she’s nice at.
Bethan: [00:03:49] That’s, that is actually nice to listen to. Blake, something so as to add out of your perspective?
Blake: [00:03:55] Oh, Bethan we have been searching for development. We have been searching for the chance to go after bigger shoppers, which requires us to be even higher service and in addition to have the power to say to to a consumer, sure, we now have the sources. Recently, we we closed a 900 worker group. Our largest beforehand was 300. So we we really feel actually good concerning the alternative to collaborate the sources. And that was our major goal was to take care of who we’re, however have the power to collaborate with stable staff members. And we have got that.
Bethan: [00:04:38] Yeah, that is nice to listen to. And Donnette, what went into that call for UBI?
Donnette: [00:04:45] It was actually about gaining sources, sustaining our autonomy and preserving our legacy. You know, we have been acquired throughout COVID. And for those who couple that with an growing older business and a decent labor market, we needed to be actually considerate concerning the stage of disruption for our workers. And PCF clearly made that occur.
Donnette: [00:05:02] So you talked about sustaining your legacy there Donnette. I need to sort of stick to that concept. Why do you suppose it is necessary to take care of the legacy model?
Donnette: [00:05:13] You know, I believe it is our business typically breeds household oriented and operated companies, and our story is absolutely no completely different. My father began this company 32 years in the past with one service appointment and two companions. About 5 years in the past, he had an enormous stroke. So in a single day he had retired. So it was actually necessary for us to hold on and keep his legacy outward. Outwardly, our shoppers had no concept that we had modified, however inwardly our course of and procedures stay constant. So PCF once more helped us keep the consistency inside our operation and in addition to to our shoppers.
Bethan: [00:05:55] Thanks to Donnette and Art, why was that necessary for insurance coverage associates of the kid?
Art: [00:06:01] Yeah, our story’s slightly comparable, however then. So our company dates again the place we have been in our group and serving our group for 73 years. And the precise roots date again to the mid thirties and it took a whole lot of time and a whole lot of arduous work to construct that goodwill and the worth that that our group will get from doing enterprise with our group. And what I like is that our founder and CEO, he has skilled that. He understands what it takes to start out an company from nothing and construct that goodwill and construct that belief and loyalty. And that’s the reason we now have the autonomy that we now have as PCF companions.
Bethan: [00:06:43] And Seth, what are your ideas on sustaining the legacy?
Seth: [00:06:48] Yeah, it takes time to get to the purpose the place you are having these conversations. And I liken it to love a race automotive. It takes a whole lot of years to arrange a race automotive and it is not all simply horsepower. You’ve bought to get the motor proper, You’ve bought to get the chassis proper, you bought to get the drivers proper. And so an engine swap simply taking out the center of the company, taking the identify out, taking all of the issues that go together with it, the individuals, the tradition, all of the issues that you’ve got mentioned to your clients, meaning a lot to you and them and simply pulling it out and placing one thing in and anticipating it to win, it simply would not make any sense. And frankly, you do not you do not see it go too effectively. And so the PCF mannequin that claims, Hey, pay attention, we worth all of that stuff that you simply constructed. We worth the years of setup that you’ve got put in to that operation, and we need to supercharge it, not not swap it out. That that meant rather a lot to me. And I believe it in all probability means rather a lot to unbiased brokers.
Bethan: [00:07:38] Yeah, I guess it does. Blake, I do know this meant rather a lot to you at RBI Benefits. So are you able to inform me a bit about your journey on this manner?
Blake: [00:07:48] Yes. Well, the legacy model goes again for us 20 years and we constructed a tradition that we we favored. Our shoppers favored it. Our shoppers are like household. We specialise in small, medium sized shoppers, all of that are associates and good individuals to work with. And so it was necessary to us to take care of that as a result of we favored it. But there was additionally a sync up with PCF tradition that we actually felt straight away and proceed to be validated on as we transfer ahead with PCF that has helped us to be higher.
Bethan: [00:08:29] That’s fascinating. Thanks, Blake. It ties into my subsequent query, which is absolutely about sort of the PCF insurance coverage enterprise mannequin. Seth, are you able to describe a bit about what it means to be a part of PCF?
Seth: [00:08:45] It was in all probability probably the most interesting factor to me. There’s a whole lot of fashions on the market the place the sum is price greater than the elements. Frankly, the large nationwide model, maybe that’s searching for efficiencies in economies and perhaps the person on this can go away in that. And that basically wasn’t the case with PCF. It was rather more of a brick and mortar. I noticed myself as an important a part of a wall, and I see PCF because the mortar that sort of holds all of it collectively, that brings the sources collectively, the experience, and albeit, a peer group that it is actually arduous to seek out within the business. And so what I like concerning the PCF enterprise mannequin is absolutely the elements are what make the entire actually particular, after which them appearing in between that and as a liaison, as a go between, as a useful resource supplier actually makes the wall stronger. And I like that about PCF.
Bethan: [00:09:36] That’s nice. Donnette, what would you add to that?
Donnette: [00:09:39] I believe it is actually a collaboration of like minded entrepreneurs creating relevance for his or her future. UBI is 90% P and C, so our cross-sell alternatives with the advantages solely and the private line solely companies have served us effectively and we now have picked up an unimaginable quantity of enterprise. Each company is absolutely good at what they do, however by working autonomously, that entrepreneurial spirit actually comes out.
Bethan: [00:10:05] Now, you have all shared some good examples already, however I’m eager to dive in. How can companies leverage the PCF insurance coverage community to their profit? Art, I’ll come to you first.
Art: [00:10:18] Yeah. Thank you, Bethan. It’ll enable you catapult your company so the sources which might be offered will provide you with the liberty that you simply’re searching for in your online business. So as entrepreneurs, we’re searching for that freedom. But sadly, we spend a whole lot of our time doing the issues that perhaps we do not love to do this a lot or sources or pulled away from us. So it permits us to faucet into these sources that I discussed earlier in a earlier query, and we have already began to expertise a few of the profit from being a companion with PCF.
Bethan: [00:10:48] That’s nice. And Seth, what would you add to that?
Seth: [00:10:51] Well, I believe each company has one thing distinctive that they are searching for once they once they be part of a company like PCF. For us, we have been to start out from scratch company about 14 years in the past. And so we I prefer to say we by no means had insurance coverage privilege. It was by no means inherited or handed on. To make all of it alongside. And so we ended up in a really powerful area of interest the place it looks like service appointments are handed down from angels to the subsequent technology, and it is not possible for a startup to get it. So for us, one of many causes we joined PCF was the entry to markets in a tricky area of interest. Could they assist convey a useful resource to us that we could not get into? My grandchildren. We’re promoting insurance coverage. The manner this business works and so realizing why you joined after which actually working arduous to make that occur has been big for us. And so getting access to markets, experience in that area of interest has been an amazing useful resource for us and it is already bought us profession appointments that we’d not have in any other case gotten.
Bethan: [00:11:46] It’s an amazing instance. Thanks, Seth. Blake, what would you add there?
Blake: [00:11:51] Well, previous to PCF, I felt like we have been working our personal company island, and we have been actual sturdy opponents, and we needed to actually have a stage of mistrust for people who have been on the market in addition to our, our associates that have been associates within the enterprise and so forth. It’s turn out to be rather more of a cooperative endeavor with PCF due to all of the companions. And it feels good to have companions, it feels good to have sources and folks you may belief to not take your online business or to not pawn it in your on what you labored arduous for. So that that created has created a whole lot of synergies for us.
Bethan: [00:12:31] Donnette, what would you add to that one?
Donnette: [00:12:33] Well, one in all our first duties have been for sources. We actually wanted some loss management experience and a few claims advocacy. PCF was capable of present that and we have been in a position to make use of these sources to retain our shoppers, to develop our e book and to compete out there.
Art: [00:12:54] Bethan, if I may add, we really had our loss management staff on the town final week. They got here and spent the complete week with us. They flew in from Salt Lake, spent per week with six of our high shoppers which have have distinctive dangers, exposures and the worth that we have been in a position so as to add to that relationship and to these shoppers is one thing that I may have by no means been capable of provide after I was out alone. The useful resource of getting three people with over 100 years price of expertise, threat administration expertise, to have the ability to take them out on a name with six of my high shoppers would have been one thing that I had solely dreamed of previously.
Bethan: [00:13:35] Now, becoming a member of a big company community like PCF may typically create battle between company tradition and company tradition. And we have already mentioned a few of the legacy a part of that. But arguably each forms of tradition are necessary at completely different instances. What recommendation do you might have for company principals about tips on how to navigate that? Blake, I’ll come to you first.
Blake: [00:14:02] It turns into sort of a difficulty at first as a result of there’s sort of a stage of, oh, what simply occurred within the company and what we selected to do. My companion and I is take it actually gradual, no less than when it comes to speaking to our shoppers about this new relationship, made positive that we we sort of did that nose to nose versus simply sending a clean e-mail out to everybody and saying, hey, that is what occurred. And we did the identical factor with our staff. Bring out the nice sources and the optimistic issues about it, which have been actually what they have been, after which simply sort of transfer ahead methodically.
Bethan: [00:14:43] Thank you. And, Donnette, what would you add to that?
Donnette: [00:14:45] I’d need to say PCF tagline is propelled by individuals, and I believe that claims all of it. You function inside your individual company construction, however you profit from sort of a agency company basis. The companions actually collectively have a voice and are capable of information and recommend to company management and the board of administrators their concepts and ideas. I believe this can be a nice follow and it actually sanctioned from high down. We’re all companions and we actually couldn’t coexist with out each other. So having a collective objective, we discover workable options.
Bethan: [00:15:20] Excellent. Thank you. And, Seth, how have you ever navigated that at Zinc?
Seth: [00:15:26] Oh, it hasn’t been a lot of a difficulty. We’re clear. We really selected PCF primarily based on tradition. So it was actually necessary to me to seek out people who aligned with who we have been as a small group comparatively. And I knew that for those who get tradition proper, then it should dictate the proper behaviors, whether or not it is company, giant, company or small company. And if the behaviors align, then the outcomes are all however assured. And so when an agent seems to be at making a transfer like this, for those who begin at a cultural alignment, no matter your alternative are, it should you are virtually assured then that each one the behaviors are going to line up and be proper on either side of the group. And subsequently, the entire outcomes are going to be what everybody hopes for. And so whenever you begin in the proper place, you finish in the proper place for positive.
Bethan: [00:16:11] Yeah. Art, I believe you had the same expertise.
Art: [00:16:15] I did. So it was actually clear after I interviewed with Peter and I interviewed Jeremiah and a few of the different management that our cultures have been only a excellent match. And I believe that was necessary. So what we have been capable of do is we have been capable of overcommunicate with our workers and clearly talk what the expectations are, what the imaginative and prescient is, and to allow them to perceive what the facility of the agency is and the way it should profit them, how it should profit our shoppers. And so we have been just like Blake. We’ve been gradual to roll it out to our shoppers simply because we need to make it possible for the imaginative and prescient is being carried out, that the tradition is true and it has been. We’re now 9 months into it and it has been clean crusing.
Bethan: [00:16:56] Now it is clear that you’ve all loved success since becoming a member of PCF Insurance, and that is nice to listen to. For these watching, what recommendation do you might have for principals trying to maybe promote their company within the coming years? Seth, I’ll come to you first.
Seth: [00:17:13] Yeah, rather a lot has modified. I believe there’s extra misinformation on the market than there may be correct info. And so I believe if an company principal is working on perhaps what they’ve heard or perhaps they’re working on an information set or information set that is 3 to five years outdated, they’re lacking the entire full image. So a lot has modified on this mannequin that there is often someplace the way in which they’ll discover a good match for them and what they’re making an attempt to unravel uniquely inside their company. And so I’d encourage individuals, it doesn’t matter what you suppose or what you suppose you have heard, go searching as a result of issues have modified and actually have turn out to be extra advantageous to company ideas.
Bethan: [00:17:50] Mm hmm. That’s fascinating. Art, what would you add to that?
Art: [00:17:55] I’d suggest, undergo the method, have the conversations, attain out to a dealer or an organization just like PCF or PCF and have the dialog see what’s on the market. So to an extra level, you do not know what you do not know and after which ask your self a few actually arduous questions and reply them your self. So like Seth mentioned, do not go to a peer. Ask them. And what? Ask your self, what’s my succession plan? Do I’ve a real perpetuation plan in place? And in that case, can these individuals really afford to pay me what it’s that I’m going to wish ten, 20, 30 years from now? And then? Also, what’s the horizon appear to be? How a lot am I going to need to proceed to reinvest out of my very own pocket to get me to the place I would like our enterprise or our enterprise to get to the place we would like it to be? And then am I creating probably the most alternative for my staff members? I take a whole lot of satisfaction in that in our company, and I need to make it possible for I’m giving as a lot alternative as doable to our staff members. And after I do not take a look at different choices, I really feel like I’m holding them again and I’d by no means need to do this. So ask your self, are you holding your staff members again by not no less than having the dialog?
Bethan: [00:19:07] Yeah, that is necessary. Dig deep and ask the proper questions. Blake any recommendation to share?
Blake: [00:19:15] I believe everybody who has began and constructed an insurance coverage company is absolutely good and desires to be higher at serving our shoppers. So I’d I’d take a look at that basically arduous and say. At this sort of mannequin, say, will this assist serve our shoppers in a greater manner now and into the longer term? And will it assist us develop? Because development additionally helps to serve our shoppers higher. So that is the recommendation I’d give.
Bethan: [00:19:44] Excellent. Thank you. And Donnette any remaining phrases so as to add.
Donnette: [00:19:48] Yeah, I believe you must take a look at the method. Being courted is intoxicating, however the actuality is it is disruption and on any stage that may open the door on your opponents and your workers alike. And I believe for those who nonetheless have the need to prosper, to take care of your legacy, to deal with your staff and your shoppers within the least disruptive method, I believe PCF deserves a severe look. If you are guiding and also you care about your steering, your monetary future, I additionally suppose PCF could need to turn out to be a part of your plan round UBI. We say UBI constructed a rocket, however PCF offered the gas.
Bethan: [00:20:28] I actually like that analogy. Thank you all a lot. Lots of nice recommendation and ideas there for company principals probably trying to promote. Seth, Blake, Donnette, thanks once more for sharing your insights with us on IB TV. This actually has been an interesting panel dialogue on an important subject and it has been nice to have you ever on the present.
Art: [00:20:51] Thank you, Bethan.
Donnette: [00:20:52] Thank you.
Seth: [00:20:53] Thank you.
Bethan: [00:20:54] Thanks additionally to our viewers for tuning in. I’m Bethan Moorcraft, senior editor at Insurance Business, and this was IB TV. See you subsequent time, everybody.