In the realm of insurance, growth is not just a goal; it's a testament to adaptability and strategic planning. According to Jim Hickey (pictured), executive vice president and head of personal lines at World Insurance Associates LLC, the company implements a robust growth strategy that is not just about acquisitions but also internal operations. This dual focus sets the stage for a comprehensive approach to sustained growth.
"At World Insurance Associates, the acquired revenue typically ranges from $120 to $150 million," Hickey said. "Internally, we have an operations team that focuses on organic growth, hand in hand with the integration of acquired offices.”
The model adopted by World Insurance Associates involves providing carriers that differ from what agencies were accustomed to, expanding their horizons both in terms of who they can write with and where they can write. Hickey emphasized the national presence of the organization, offering the ability to write in different parts of the country, paired with geographic expertise to navigate regional intricacies.
While Hickey oversees the personal lines department, his focus extends beyond that. With a career rooted in generalist expertise, his current position involves orchestrating the department's operations, revealing the company's commitment to a diverse portfolio.
To facilitate further growth, World Insurance Associates has implemented a Private Client Group Practice internally. This practice aims to provide expertise for those unfamiliar with high-net-worth clients, offering not only a carrier base but also geographic insight. Hickey highlights the importance of understanding the differences between writing policies for locations like Telluride, Colorado, versus those in Illinois.
“We're a national organization, and we offer the ability to write in different parts of the country and provide the geographic expertise to help carriers because not everybody in New Jersey is aware of the wildfire problems in Colorado or California, the earthquake in California, or the hail storms in Texas, for example,” Hickey said.
Balancing risk with aggressive sales is a common challenge in the insurance industry. The concept of surplus lines has evolved and increased prominence in high-net-worth placements. This shift is driven by the industry's response to loss ratios and the need for additional outlets to manage risks effectively.
"Prior to 2020, less than 10% of all high-net-worth placements were done through surplus lines. The expectation moving forward is that it may grow as high as 40%," Hickey said.
With a wealth of experience in the field, Hickey reflected on the distinction between high-net-worth and standard business. While the high-net-worth book comprises 12-15% of the total, the company writes $800 million in premium across all offices, with $85 million in high-net-worth business. Hickey anticipates a shift where standard business will take a more active role in mitigating risks, aligning with the industry's evolving dynamics.
The role of innovation also plays a crucial role in the insurance landscape, particularly when it comes to information aggregation. Technological tools now enable insurance professionals to access information on risk exposures, property details, and construction information with greater ease.
As the industry continues to evolve, Hickey sees the potential for technology to streamline processes and enhance client interactions. He emphasizes the importance of leveraging technology to make interactions more efficient and gather more relevant information.
"Innovation helps expedite the aggregation of information through third-party resources," Hickey said.
