Arrowhead innovation with an entrepreneural spirit

Rough Notes, Sep 2000 by Hanavan, Brett

The vision took two years to develop and YouZoom, Inc., finally was born with Sweeney and Arrowhead driving the belief that people will choose this mechanism over time. Arrowhead began live demonstrations of YouZoom's capabilities in December 1999, while at the American Agent's Alliance in Indian Wells, California.

For now there are about 150 auto agents using YouZoom. Many more are being added every month with about 250 being the goal for year-end 2000. It is available only in California, but in 2000 YouZoom will open up to Arizona agents. There are also plans to add Florida, Oregon, Texas and Washington as well. Even homeowner products will get into the YouZoom act, including H03s, H04s, and H06s that will be available along with current auto products. Life insurance products are scheduled to be online by the end of the year, and small commercial products should be online by the first quarter of 2001.

Arrowhead's move into the commercial insurance realm was the first outside its comfortable nonstandard auto walls. It happened in 1997 soon after Andrew (Andy) Barile, CPCU, a long-time niche market specialist joined Kilkenny's management team.

Barile's position and tenure with Kilkenny the longest of any in his upper management force, is based on the development of the group's commercial division. Barite moved to Arrowhead from Agency Programs, Inc., where he was president and owner of a consulting firm for insurance agencies and insurers. In this role, Barite acted as a consultant to the Arrowhead Group of Companies along with other clients. Today, Barile's principal focus with Arrowhead is overseeing the development of profitable niche commercial business, a process that takes instinct, insight and often intestinal fortitude. Today, its Artisan Contractor program serves as an aggressive market.

Now in its fourth year, it has grown to be extremely successful-a program that started with no commercial producers onboard but now has 1,000 plus and an internal support staff of 22 commercial underwriters.

As of June 1999, in just two years Arrowhead had written $10 million in artisan contractors liability at an average premium of $1,400. "We've grown so much and added experienced staff who can handle both lines of business," Barite adds. "Our goal is to set ourselves apart by our service commitments of 24-hour turnaround time on quotes and policies."

Arrowhead's growth goals in commercial lines are aggressive. It is launching its next niche program October 1-a California public livery automobile program. Everything in the public transportation mode, except taxi cabs.

"Pat is interesting in the way he has done all this," Barile says. "He allows us to recommend, develop and remain responsible for it. From here my team went to work on the public livery program. Each division takes on an identity of itself, so to speak, in terms of coordinating what the market needs."

"Our team is always accessible, and we take a proactive role in visiting producers to hear what they are saying to us. It is the first barometer," Barile says. "If producers tell me things are roaring, if there are big losses by class or if carriers are pulling out somewhere, it is time to evaluate and think about creating something and going in."