A LITTLE BIT OF COUNTRY ... AND A WHOLE LOT OF FAMILY FUN

Rough Notes, Jan 2004 by Boone, Elisabeth

Akers & Arney also insures general, trade, and specialty contractors and subcontractors; hotels, motels, condominiums, apartments, and campgrounds; restaurants that run the gamut from family and fast food to fine dining and specialty offerings; and a number of retail operations.

Marketing challenges

Being a small-town agency with big-ticket clients can present some major marketing challenges. How does Akers & Arney find a home for its theatre and hospitality risks?

"Over time, we've learned which of our markets are most receptive to the kinds of business we write," Akers says. "We've put together a matrix that shows at a glance which carrier is most likely to accept a theatre, a hotel, or a museum." In today's constricted market, Akers & Arney often comes out a winner with its carriers, he observes. "What a company won't write elsewhere, it will write here," he says. "We work at building strong relationships with our companies' regional offices."

Adds Arney: "Branson has some unique exposures for a small town. We have to find underwriters who aren't too conservative to look at our business." What's more, he says, "Not many carriers want to write theatres because of the hazards they pose. Business interruption is a big concern: A power failure during a show can shut down a theatre and cause substantial losses in revenue. Contingent business interruption also conies into play because one business depends on another." All theatres are not alike, Arney points out. "Theatres differ in their capacity, operations, and clientele; some cater to bus groups, and others attract seniors," he says. "Our main carrier for theatres is St. Paul; several carriers, including State Auto and General Casualty, will look at our smaller theatres."

The severe injuries sustained by illusionist Roy Horn of Siegfried & Roy, who was clawed and bitten by a white tiger during an October performance in Las Vegas, have put the spotlight on shows like Branson's Kirby Van Burgh Magic Show that uses wild animals in its acts. Akers & Arney expects to see premium increases and underwriting caution that reflect insurers' new awareness of this exposure.

In the lodging arena, Arney says, size is a key criterion. The agency has two programs: one for small motels and one for luxury resorts. Carriers for this business are Columbia Insurance Group, AutoOwners, and Safeco.

Another underwriting concern is the seasonal nature of Branson's attractions. Although Branson is no longer strictly a summer destination, "Seasonality is a dirty word to insurers," Arney comments. "We work as partners with our underwriters to help them understand our clients' exposures and feel comfortable insuring them."

A key factor in successful smalltown marketing, Arney says, is developing relationships by becoming involved in local service and service organizations and the school and hospital boards. Edd Akers serves on the board of Skaggs Community Medical Center, a state-of-the-art facility that is the agency's largest client. Skaggs is rated among the top orthopedic facilities in the country, and it recently began to participate in a cardiac program with the prestigious Washington University School of Medicine in St. Louis. Akers & Arney partners sit on other boards and are also involved in the Chamber of Commerce and Rotary, where they have served as presidents.