Fullerton Stresses Producer Autonomy

Apparently such autonomy has contributed to a relatively happy workplace as the company experiences "virtually no turnover," he noted.

"In fact, a number of our employees have been with us for more than 20 years," Mr. Nielsen said. "That is because we only hire people who truly understand what it means to take care of a customer."

Such low turnover enables customers to have one agent for a long period of time while knowing the entire agency is at their disposal. "Nothing goes in a file," said Amy Blake, a Fullerton customer service rep. "Everything is in an active database, which means that anyone in the agency is able to help any client."

This pays off in the long run for clients and the agency alike, Fullerton explained in its award program essay. "Because we have very little turnover, and because every agent is empowered to make decisions, no time is wasted in getting up to speed and waiting for approval from a supervisor," the agency wrote.

Maintaining Trust

Establishing long-term credibility and trust with clients is always a crucial component of maintaining a high renewal ratio (Fullerton's commercial renewal rate was 96.9 percent last year). But it's never been more critical than in the past year, with the industry coming under fire as a result of state and federal investigations questioning contingency fee compensation schemes that–even if perfectly legal–can present potential conflict minefields.

The best approach, Mr. Nielsen believes, is to be totally open with clients. "Fullerton & Company has always been proud of the work we do, and we have always been willing to divulge our compensation," he said, noting that his firm has experienced no problems over such issues with buyers. "We strongly believe that our clients should understand all the cost components of their insurance program."

This year's "Honorable Mention" from NU is not the first time Fullerton has been recognized nationally. Indeed, for the past eight years, Fullerton has been picked by the Independent Insurance Agents & Brokers of America as a member of an elite group of agencies receiving top honors for "Best Practices."

"It gives us an excellent opportunity to demonstrate financial discipline and helps us develop and refine management benchmarks," Mr. Nielsen said.

The designation also serves as an internal indicator to the staff that their efforts contribute to the agency's success. "We have publicized our designation through our local press and received excellent feedback from the community in general, our clients and carriers," Mr. Nielsen said.

Fullerton's commercial property-casualty business comprises about 60 percent of its commission volume, with personal lines and group life and health the runners-up. The agency serves a wide variety of businesses, mostly in the Northwest, with virtually all clients coming through either referrals or its 16 producers' extensive involvement in community affairs.

"An agency that claims to be acting in the best interests of its insureds needs to show their involvement in the community," according to Mr. Nielsen.

Fullerton employees serve as board members, sponsors, teammates and associates of groups such as the Oregon Humane Society, Boys & Girls Clubs of America, and the U.S. Olympic Committee.

"We take our role as corporate citizens very seriously," he said. "We recognize the importance of working with our insureds, who are our community members, to protect them from foreseeable risks while also protecting other community members who lack the necessary resources."

Industry Leaders

Agency representatives also take leadership positions in insurance trade organizations as well as panels working with major carriers.

Fullerton officials have served as president and as board members of the state and local chapters of CPCU and CLU and affiliates of the Independent Insurance Agents & Brokers of America, among other groups. The agency has also sent its people to serve on a number of insurance company advisory councils.

Brenda Grootendorst–one of the agency's eight principals and a vice president–came to Fullerton in 1989 after serving as regional administrative manager for TransAmerica Group in San Francisco. For her, working with various outside organizations provides an opportunity to be on the cutting edge of industry trends.

"The interaction with other agents brings in good competitive intelligence," she said. "It is an opportunity to obtain good benchmarking data and creates an opportunity to have a personal relationship with company managers and others. The time it takes is definitely worth it."

Ms. Grootendorst can definitely say about her job that "this time, it is personal."

"One of the greatest compliments I can receive from a client is for them to call me and ask for my advice about something totally unrelated to their insurance needs," she said. "That's when I know I'm an important member of their management team."

She recalled numerous occasions brainstorming with clients about solving various business problems, as well as helping clients get leads through networking.

While most of its clients are located in the Northwest, the one Fullerton segment that is national provides liability coverage for check-cashing services throughout the country. Fullerton is one of a handful of agencies specializing in protecting these operations, which provide valuable services for that portion of the population without access to more traditional financial services.

The agency got into the business through an acquisition in the mid-1990s and has since grown it considerably. Producer Mike Reggiani said the business creates interesting challenges in that "everyone has unique problems to address."

That was just one of the many acquisitions over the years that have helped build the agency to its current position of strength.

"We have a history of successful acquisitions," Mr. Nielsen said. "Our strong leadership and corporate structure along with our financial stability positions us to leverage the opportunity for an acquisition and enables us to integrate both the customers and staff into our culture, creating a synergism that is healthy for all parties involved."

Fullerton's personal touch can also provide more effective service when carrier representatives come to the office to meet with sales representatives and producers.

"Staff uses this opportunity to discuss their accounts one-on-one with the company representatives and determine their interest in the account," Mr. Nielsen said. "This is more effective sometimes than just sending off a submission."

Infobox: (with agency logo)–see 10/11/04 edition, page 14, for template)

Flag: Agency At A Glance

Head: Fullerton & Company Profile

o Headquarters: Portland, Ore.

o Commercial Premium Volume:

2002: $32.6 million

2003: $36.5 million

2004: $41.6 million

o Principals: 8

o Employees: 60

Caption for three-shot:

Fullerton & Company's leadership–including (l-r) Timothy Nielsen, President and CEO; Brenda Grootendorst, V.P.; and Rich Abrahamson, V.P.–strongly believes that empowering individual producers helps keep clients and employees on board long-term.

"Our company is able to eliminate the middle-management and make each expert consultant the client's single point of contact."

Timothy J. Nielsen, President

Fullerton & Company