Local agency credit and collections

Rough Notes, Sep 2000 by Mason, James Woolverton

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."

Another concept Barile has promoted within the walls of Arrowhead, but multi-dimensional in scope, is the concept of field underwriting. It is a concept he credits Commercial Division Vice President Robert Young with evolving into a prototyped, valuable tool. The concept allows commercial underwriters to go into agency offices and go face to face periodically with the agent.

"It allows up-front, timely turnaround where the underwriter is already there quoting the risk on a laptop using our technology, and it makes the agent ask, `Do I really want to spend the time sending this out?"' Barile says. "If the business is priced appropriately and the insured is not upset with the price, then the concept always has potential."

Next on Kilkenny's team of experienced professionals to fit Kilkenny's mold of entrepreneurial spirit, is Richard S. (Dick) Rohde, a rejuvenated 25-year veteran of Barney & Barney, a top-50 privately owned insurance agency founded in San Diego in 1909. Rohde joined the management team on January 1 of this year.

Rohde is president and CEO of the ArrowSource division. ArrowSource was formed to develop Arrowhead's existing products and technologies by focusing on the use of its Internet platform, as well as extending "worksite" sales, strategic partners and association opportunities. ArrowSource's objectives, Rohde explains, "are to increase sales of Arrowhead products, using our core competencies of distribution, underwriting and marketing and still supporting the independent agent, but our ultimate goal is to define new and different methods of doing it."

Arrowhead's prototypes and models, along with its think-tank like style under Rohde's direction, is all in the works and just waiting to be unveiled. "All this is exciting," Rohde says. "I look back on my 25 years and it was time for new vistas. It was a commencement of new enterprise. The automation side of our business is essential in making the independent agent strong. With Arrowhead, I can work with interest in bringing them into a position of greater strength and depth that they won't necessarily develop on their own."

At this point in the mix, Rohde's instinct and experience are still churning out ideas vs. conducting any type of formal marketing research. "There are known needs demonstrated from my experience," Rohde says. "They have been demonstrated based on the needs in our industry."