NU Online News Service, Oct. 3, 10:56 a.m.EST

COLORADO SPRINGS, COLO.—Two major global insurance brokers andan international insurer are using three different techniques togrow their businesses through relationships with smaller brokersand agencies.

The three firms sat down with National Underwriteryesterday as insurance brokers and other industry figures gatherfor the 98^th annual Insurance Leadership Forum of theCouncil of Insurance Agents & Brokers held here.

For Marsh, a subsidiary of Marsh & McLennan Companies, animportant part of the firm's growth strategy is Marsh &McLennan Agency, the middle-market brokerage subsidiary ofMarsh.

David L. Eslick, chairman and chief executive officer of thesubsidiary, says the firm continues to be on course for expansioninto the middle-market business since it opened its doors in2009.

He says since last year, the agency continues to expand andtoday boasts revenue north of $300 million.

MMA has accomplished its goal of establishing itself in the Eastand is now aiming at expansion west. That westward expansion wasestablished with the acquisition of RJF Agencies inMinneapolis.

“We are where we want to be,” says Eslick of the firm's pace ofacquisition, which now stands at 11 with the acquisition ofPrescott Pailet Benefits of Dallas in July.

“This is a strategic build and we are building for Marsh in theU.S.,” Eslick says.

George A. “Shad” Steadman III, vice chairman of Roanoke,Va.-based Rutherfoord, a member of MMA, says the firm was not forsale when it was approached by Eslick.

However, the firm “took a leap of faith” on the entire conceptEslick presented. Today, he says, “we enjoy partnering with our newcolleagues.”

Steadman says that while Rutherfoord still concentrates itsefforts on organic growth, partnering with Marsh gives the firmtools to engage with a breath of expert brokers within theorganization and access to capital they would not have hadotherwise.

As one of MMA's platforms for expansion, Rutherfoord can pursuean acquisition strategy it would have had to walk away from in thepast.

As far as independence, Eslick stressed that he wants theplatforms within MMA, such as Rutherfoord, to remain “nimble,responsive and able to make decisions quickly.”

“It is a very collaborative culture, that is what Dave hasbuilt,” says Steadman.

At Willis, Alastair Swift, CEO, global placement, says thecompany has not shied away from acquisitions, but does not make ita centerpiece of its strategy.

“If it makes sense we'll do it,” he says, but the concentrationis first on organic growth and acquisitions “are a bonus for awell-run company.”

The firm has developed relationships with small brokers andagencies by giving them access to markets they would not have hadotherwise.

In the United Kingdom, there is the Willis Commercial Market,where brokers partner with the larger firm to gain access tocarriers.

In the United States, the firm has adoptedthat same philosophy, but instead of having a physical relationshipwith the agencies, it utilizes its information technology platform,Insurance Noodle.

This online insurance exchange serves the same purpose as theUnited Kingdom concept, giving agencies a pathway to insurers.

Swift says Willis does not broker the business or act as awholesaler. Instead, it facilitates the exchange of business.

The model has been successful enough that Willis is planning onexpanding the access globally.

At Zurich, since 2009 the carrier has been pursuing its SelectBroker Strategy where the company closely examines the books ofbusiness it has with brokers and engages in critical conversationsabout whether the broker and company are in a mutually beneficialrelationship.

Michael T. Foley, CEO, North America commercial and regionalchairman of the Americas for Zurich, says the company has beenengaging brokers in a conversation about how important Zurich is totheir overall book of business.

Foley says what the company is doing is continuing partnershipswith brokers who truly want to partner with Zurich and want to do asubstantial amount of business with the carrier. This means, hesays, having the mix of business that fits Zurich's appetite andworking with the broker so he or she understands that appetite.

What the program has done is “reduce the number of appointmentswithout reducing the number of quality submissions, and we aregetting better results and better outcomes,” says Foley.

The result is that the program has developed betterrelationships “on both sides for a better [relationship]overall.”

Regarding the relationships that Zurich ended, Foley says a poorrelationship is not good for either partner, “but if we can havegood relationships there's no limit to how many we would aspire tohave.”

Updated Oct. 6, 11:54 a.m. EDT to reflect a correction inthe name of Zurich's Select Broker Strategy. Foley has anadditional title of chairman of the Americas.