National Underwriter/AA&B

commercial agency of the year award

Punching Above Its Weight: Global Reach, Technical Expertise & Creative Marketing Lets Bartlett Compete With Giant BrokersFirm’s focus on midmarket niches has allowed it to grow at 10 percent a year since 2008; video testimonials, rugby sponsorships draw new-business interest

■ american english

By laura m. Toops, ediTor-in-chief, AA&B

i n a globe-straddling twist on the family-owned regional agency, U.K.-owned bartlett & Co. inc., operated by

second- and third-generation insurance pro-fessionals, combines a unique international footprint, a focus on niche markets and in-novative promotional strategies to create a formidable and fast-growing business that’s more than equal to the task of competing with big brokers for business.

With only three agency principals and a total of seven employees, the Philadelphia branch of the brokerage generated in excess of $11 million premium volume and $1.17 million total P&C commercial income in

2010—and has grown at an average rate of 10 percent since the onset of the global downturn in 2008.

that growth is the result of providing and maintaining exceptional service standards, en-joying high client-retention rates, and achiev-ing organic growth through existing client referrals and other new-business activities.

For its strong performance in troubled times, the brokerage’s Philadelphia branch is a winner of the 2011 NU/AA&B Commercial agency awards for excellence, securing top honors in the sales & Marketing category.

local pasT, gloBal presencethe firm was started in 1940 by Fred bartlett

in the english city of bradford. Unable to join the royal air Force due to poor eye-sight, “he worked down a coal pit to help keep british industry going during the war and later joined the auxiliary Fire service—all while running the business,” says richard bartlett, Fred’s grandson and the principal in charge of the Philadelphia office.

the brokerage is now led by Michael bartlett—Fred’s son and richard’s father— from group headquarters in leeds, england. Under Michael’s leadership the business has grown from a regional insurance broker in the U.K. to a much larger player with more than 120 employees that manages business in more than 35 countries from of-

fices in Philadelphia, leeds, london, Paris, amsterdam, Hamburg, Hong Kong and most recently, Kampala, Uganda.

“We currently have four employees in Uganda who are able to place business from any CoMesa country (Common Market for eastern and southern africa),” bartlett says. the region is currently grow-ing at 8 percent, compared with an annual rate of 1 percent in the U.s.

bartlett opened its Philadelphia office in 1997, originally to service the american business interests of its european clients (each office operates as an independent prof-it center). since then, bartlett has developed a large and expanding roster of U.s. clients.

Currently, about 50 percent of bartlett’s Philadelphia-branch business is generated from overseas; the other half is U.s.-based, much of which has an overseas exposure. Carriers in-clude aCe, aXa, Chartis, Chubb, one beacon, the Hartford, travelers, Zurich and Xl.

“i have big ambitions for our U.s. opera-tion and hope to see a greater percentage of business generated from the U.s. in the fu-ture,” bartlett says. “as [american compa-nies] become increasingly interconnected with other countries—and with 95 percent

of the world’s consumers outside the U.s. borders, coupled with the world-class prod-ucts and services american businesses pro-duce—we only see more and more demand for an insurance broker with our profile.”

focus on niche marKeTsin addition to its ability to offer global service

to its clients, bartlett sees two other factors as critical to the firm’s solid performance in a slumping market: its approach to pricing and a laser-sharp focus on niche markets.

“in a country with 38,000 independent brokers, it’s important not to fall into a ‘race to the bottom’ and compete solely on price when it comes to placing insurance and advising business executives,” says bartlett.

“While price has been a driver in secur-ing new business during the global reces-sion, identifying niche markets which play to our strengths—with higher barriers to en-try and where the expertise of our staff and high service standards will be valued—has enabled us to compete on other differentia-tors and ensure our steady organic growth through demonstrating and delivering value to our clients and prospects,” bartlett adds.

the firm’s industry specializations have been developed first through the knowledge and expertise of its account executives and then by being institutionalized into the business, bartlett explains. “this combines a spirit of entrepreneurialism with the struc-tures and resources of a larger business.”

bartlett’s sweet spot is midmarket cor-porate business, specifically in the specialty

New-Client Case Study: Used-Car Start Up

K w i n n e r at a g l a n c e

Bartlett & co. inc. E entering principal: Richard Bartlett

E location: Philadelphia, Pa.

E Website: www.bartlettgroup.com

E principals: 3

E employees: 7

E commercial-lines producers: 3

E commercial-lines premium Volume: 2008: $10,000,000 2009: $11,400,000 2010: $11,700,000

E p&c commercial income: 2008: $957,000 2009: $1,143,000 2010: $1,172,000

E a Winning Team: (l-r) Pat Riley, associate account manager; Bruce Einstein, managing director of major accounts; Rich Bartlett (sitting), president; Krista Wiseley, associate account manager.

Phot

o by

Ant

hony

Woo

d Ph

otog

raph

y

a good ExAmPlE of how Bartlett ap-proaches new business is evident in its relationship with webuyanycar.com,

a Philadelphia start-up company launched earlier this year. The company, financed from overseas and based on a U.K. business model, allows used-car sellers to get an instant online valuation, then drive the car to the nearest branch for an onsite inspection before selling the car to the company.

Although webuyanycar.com was already

being advised by one of the world’s largest brokers, Bartlett was invited to put a program together due to a number of frustrations the company was experiencing—because it was a start-up company, funded by overseas capital, the company was finding it difficult to access a program willing to underwrite the risk with-out being prohibitively expensive. Bartlett was able to successfully place the risk while achieving cost savings by:J Accessing and analyzing the company’s

U.K. loss history and presenting this to U.S. underwriters as a basis for expected losses.J Advising the company in lease and con-tract reviews to minimize its overall risk exposure.J Using Bartlett’s experience working with foreign-based companies to establish cred-ibility and a confidence level with overseas management.J demonstrating the account’s growth poten-tial to garner underwriter interest. NU

meeT richard BarTleTTrichard Bartlett, principal in charge of the Philadelphia office of Bartlett & Co., joined the business in November 2008 after training as a CPA with PricewaterhouseCoopers in london. “From an early age, I grew up with talk of insurance around the kitchen table and used to spend my summer vacations helping in the business,” Bartlett says.

In his late teens and early twenties, Bartlett spent a lot of time working and traveling in Africa and was torn between pursuing a career in international development or joining the family business. The family business won: He started working in the london office, and in march 2009, he relocated to Philadelphia to run the U.S. office.

winner: sales & marketing

Sponsored by Liberty Mutual

p&C

NationalUnderwriter

T h E L E A D E R I N P R O P E R T Y & C A S U A L T Y N E W S

PropertyCasualty360.com

Top STorieS of The WeekTop STorieS of The Week

OctOber 3, 2011 VOL. 115, NO. 35$6.00

Inland Marine Facing Talent, Competitive ChallengesInland-marine insurers are faced with a thinning and aging talent pool in a line of insurance that requires highly special-ized industry and insurance knowledge, according to a recent Conning Research & Consulting report. E Page 6

CFOs See Hardening Market, Increased M&AInsurance chief financial officers say current market conditions will result in increased mergers and acquisitions, according to data from a Towers Watson survey. E Page 6

Insurers Report More Billion-Dollar Weather Losses As Disasters ContinueU.S. insurers continue to release informa-tion on 2011 weather-related losses, with State Farm saying it has paid policyholders $5 billion so far during the year. E Page 7

Senate Vote Keeps NFIp In BusinessThe Senate, by a 79-12 vote, approved legislation that includes a provision keeping the National Flood Insurance Program in business, at least through Nov. 18. E Page 32

puNCHINg ABOVe ITS WeIgHT

SeRVICe MASTeRS TRAININg TO WINKMRD, Just 6 Years Old,

Seizes Top Commercial Agency Spot In Both Customer Service &

Recruiting/TrainingPage 22

Bartlett & Co., With Only 7 u.S. employees, Wins

Commercial Agency Honors In Sales & Marketing

Page 16

Phot

o by

Tim

Aqu

ero

Phot

ogra

phy

For Its Focus On Risk Consulting And Tech Innovation, parker, Smith & Feek Is Our Commercial Agency Of The Year

See page 12

grand champion

ELECTRONICALLY REPRINTED FROM

National Underwriter/AA&B

commercial agency of the year award

Competitive Edges

areas of life sciences, technology, financial institutions, real estate, credit insurance and due-diligence reporting in mergers and acquisitions. the brokerage recently iden-tified management-liability insurance for the investment community as a technical market currently underserved.

bartlett’s strong international network makes specializing in midmarket global business a natural fit. “Unlike some of our regional competitors, we have expertise in structuring interna-tional insurance programs and are able to assure high service standards through the provision of bartlett personnel worldwide. We are also able to offer a more tailored and personalized ap-proach than the larger global brokers,” bartlett says. “We punch above our weight in the regional market with respect to the type and size of accounts we service—and often compete with the large alphabet house brokers for new accounts.”

cusTomer reTenTion, aTTracTionCustomer retention, of course, is an im-portant aspect of continued growth, and at bartlett, much of this hinges on acting as the clients’ outsourced risk manager and trusted advisor. the brokerage provides clients with beyond-the-basics services, such as:J Providing risk-management and loss-con-trol advice, including claims and loss analy-sis, business-continuity planning, contract reviews, motor-fleet risk management and workplace-safety reviews.J ensuring account executives become part of a client’s safety committee where they exist or, if appropriate, suggesting their es-tablishment as a platform to monitor risk.J an experienced major-loss advisor who can deploy to clients’ sites anywhere in the world to support claims settlement.J a client extranet site to support claims

processing and other functions.J an online client-feedback survey ensuring early identification of potential problems.J aggressive marketing and benchmark-ing of the cost of risk to ensure premiums are competitive.J regular contact between the client and

the bartlett team at all levels, includ-ing visits (“stewardship meetings”) by the president to key accounts.

and as part of its efforts to secure new business, bartlett has taken a number of steps over the last two years to further enhance its sales process, including:J offering a confidential audit of a pros-pect’s insurance program by a senior bartlett executive at no cost.J recruiting three new team members, who brought a wealth of talent, experience and market relationships to the company.J identifying opportunities to present to target markets within established business networks: For example, bartlett was invited by the World trade Center of Philadelphia to be a keynote speaker on “Managing risk in China.”J Completely redesigning the company website, including a new client video-testimonial section.J Creating and launching a suite of brand-ed marketing documents.

B ARTlETT, winner of the 2011 NU/AA&B Commercial Agency Awards for Excellence in Sales & marketing, distinguishes itself

in several ways:J Technical KnoWledge: Bartlett empha-sizes professional designations and ensures that its staff acquires technical skills. For example, over the years, its larger clients have become accustomed to Bartlett providing specialist due-diligence reports when they have acquired other companies, ensuring they have appropriate pro-tection against historic, current and future liabili-ties. Bartlett employs a full-time due-diligence expert to support trade buyers, private-equity and venture-capital firms in mergers and acquisitions.

J gloBal fooTprinT: Bartlett can service businesses of all sizes worldwide through its overseas offices and corresponding brokers. J marKeT access: “Having an office just around the corner from lloyd’s in london is invaluable,” says Richard Bartlett, principal in charge of the Philadelphia office. “As the market hardens, I believe we will be looking to our col-leagues across the pond for greater support.”   J an uncompromising and unapologetic focus on clients and the maintenance of high service standards. “We’ve come across some agents who treat their insureds as a product as opposed to a client; everything we do is to serve our clients’ interests,” Bartlett says. NU

J designing and building a video-marketing platform, enabling bartlett to run targeted and personalized campaigns at a lower cost than telemarketing or direct mail.

one of bartlett’s biggest recent initiatives in marketing and new business is its creative use of video to reach potential customers.

the brokerage uses online vid-eo testimonials and a bespoke video-marketing platform to reach prospects (view them at: bartlettgroup.com/us/testimo-nials).

“online video is definitely going to play a greater role in websites and online mar-keting in the future,” bartlett says. “the reception we have received on this initiative to date has been great; watch-ing one of our clients talk about how we serve them is really quite powerful. it shows that there is substance to our claims.”

another effort to promote the bartlett global brand is the brokerage’s sponsorship of the irish rugby league’s recent tour to the U.s. the rugby Football league, the sport’s governing body, is one of bartlett’s oldest clients, with a relationship dating back to 1945. bartlett sponsored the nation-al irish team when it came to Philadelphia to play the U.s. tomahawks on March 19 in the donnybrook Cup in an event that attracted both tV and print exposure for bartlett. the brokerage now acts as the in-surance broker for Usa rugby league llC.

the firm also has plans to tap into the expertise of its associates to position the bro-kerage as a thought leader in matters of global insurance and risk management. “When it comes to structuring and managing global insurance programs, we have some of the best minds in the business, both here in the U.s. and overseas,” bartlett says.

bartlett has a host of initiatives under-way to showcase its insurance knowledge including webinars, the publication of white papers and taking on more public-speaking engagements.

by communicating its global expertise to current and potential clients, bartlett anticipates continuous growth and expan-sion, even in the current tough market. “as more middle-market companies expand to overseas markets for production and sales, the need for a global independent broker to service their needs increases,” bartlett says. “in this regard, there is ‘clear blue water’ between us and the competition.” NU

E BarTleTT sponsored the Irish Rugby league when it came to Philadelphia to play the U.S. Tomahawks on march 19 in the donnybrook Cup. The event attracted TV and print exposure for Bartlett, which now acts as broker for the USA Rugby league.

Posted with permission from the October 3, 2011 issue of National Underwriter ® www.propertycasualty360.com. Copyright 2011 All rights reserved.For more information on the use of this content, contact Wright’s Media at 877-652-5295

81715