Going global

Rough Notes, Dec 2000 by Hanavan, Brett

RiskProNet is a virtual worldwide network whose members share expertise to serve clients around the globe

Paul Simon's 1987 song "Boy in the Bubble," on the Graceland album, Simon sang with conviction about these being the days of miracle and wonder. It's a song about hope and amazement at the achievements of society, tinged with caution about the unforeseen consequences of progress at any price. Simon's lyrics described technological advances and breakthroughs that amazed him. He sang of loose affiliations of businessmen: "millionaires and billionaires."

While by no means a loose affiliation, RiskProNet International, Inc., unquestionably offers a unique style of insurance and risk management for its 29 broker-owners and their clients around the globe.

Although technology has progressed well beyond what Simon sang about in 1987, the technology available and the systems that support it are all essential to the infrastructure of the business and insurance world today.

RiskProNet International's innovative approach is built on this base of technology: its member brokerages communicate through a closed Internet facility to share expertise about various aspects of risk management worldwide. The network of U.S. and Canadian brokers, through its partnership with Globex International, has established a formal presence in 100 countries that helps it attract and satisfy the needs of clients all over the globe. Key to RiskProNet's success as a fastemerging, non-advertising organization is its strong focus on clients and their needs.

Birth of a vision

The vision began in Atlanta in 1997, when Michael Flynn (Diversified Risk Insurance Brokers, Emeryville, California), Steve Tanner (Tanner Insurance Brokers, Pleasanton, California), and John Langsfeld (Merritt & McKenzie, Atlanta) began to brainstorm and develop the concept of an informationsharing resource for brokers.

"When we all first got together, we talked about a better way to handle national and international issues for our clients," Flynn says. "The same issues would come up at joint sales meetings," Tanner adds. "We were worried about being vulnerable to international brokers. We knew John [Langsfeld] was working on an Internet and intranet venture at the time. We met in late 1996 and determined we shared a lot of common needs and concerns. We also talked about what kinds of opportunities existed."

Although Langsfeld's original idea had been to sell the concept of an Internet-based information resource to about 200 brokers across the country, he adjusted his marketing plan to target a smaller group of large regional brokers

who were on the cutting edge of electronic communication. RiskProNet was formed, and its members began to transform their vision into reality.

Into action

Immediately after RiskProNet's formation, responsibilities were defined, working criteria were established, and guidelines for participation were worked out. "The first criterion was that an owning brokerage must have $4 million in commission revenue," Tanner says. "They also had to be one of the top five producers in that region, be highly regarded, be proactive agents for their carriers, and uphold strong professional ethics."

With those standards in place, Flynn, Langsfeld, and Tanner began to recruit candidates for RiskProNet ownership, bringing together the first 13 potential member brokerages in a meeting in Phoenix. They set management goals and expansion criteria, deciding that they wanted to add another 15 territories to complement the mix and establish representation in virtually every major market in North America.

Today RiskProNet is comprised of 29 broker-owners in 36 states and Canada who are involved in personal and commercial property/casualty lines, employee benefits, and consulting. (Areas of expertise are highlighted in the sidebar on page 55.) Eight members are among the 100 largest brokers in the United States. RiskProNet represents combined annual revenue of $497 million and more than $5 billion of annual written premium, which makes it the fifth largest broker/producer organization in the United States.

"Membership in RiskProNet is by invitation only, and we don't envision getting much larger than 30 members anytime soon," says Flynn, who currently serves as the organization's president. Seven board members are chosen each year to govern RiskProNet. The organization currently has no employees but plans to hire an executive director, Flynn says. Four working committees guide the organization's operations and chart its course for the future: corporate governance, communications (which oversees the Web site and public relations), market relations, and new opportunities/partnerships. In addition to meetings of the board of directors and the committee chairs, which principals are required to attend, RiskProNet holds separate meetings for special interest groups like marketing managers, information technology professionals, and employee benefits specialists.

No risk transfer is done through RiskProNet. Each broker deals directly with the carrier to bind coverage and issue policies. In the future, Flynn says, members may have the ability to make submissions and issue insurance certificates online.