Look Out For Lockton!

Lets say, for the sake of argument, that the Kansas City Royals managed to sign baseballs best all-around player, Alex Rodriguez, after A-Rod left the New York Yankees as a free agent. Such a high-profile hire would immediately put competitors around the major leagues on notice that the Royals mean business. Perhaps a more appropriate analogy for Locktons recruitment of Julian James, formerly director of worldwide markets at Lloyds of Londonthe New York Yankees of the insurance worldwould probably involve soccersay, the signing of David Beckham by the Los Angeles Galaxy.

Be that as it may, the fact is Lockton scored quite a coup earlier this year when the Kansas City-based brokerage announced Mr. James would be joining the organization in a newly created positionexecutive chairman of international operations.

In our profile of Lockton in this week's edition of of NU (click here for Mark Ruquet's article, “Lockton Ready To Battle On Global Stage”), its clear this already well-respected brokerage quickly became a major multinational player with its acquisition last year of London-based Alexander Forbes International Risk Services. The deal substantially boosted not only revenues but its global reach with the rebranded Lockton International Holdings.

The challenge will be to integrate the two organizationsa task that should be greatly facilitated by the expertise and experience brought aboard by Julian James.

Mr. James is no stranger to the brokerage world, having been development director of Sedgwick Energy and Marine and a member of the divisions executive management committee, after spending five years working in senior posts with Sedgwick in North America, prior to joining Lloyds in 1997 as head of the markets North America business unit.

Although Lockton announced his hiring in January, Mr. James remained at Lloyds to tie up some loose endssuch as the markets successful entry into the China market this past springthen took some time off before formally starting his new job at the Monte Carlo Rendezvous last month.

Ironically, although Mr. James lives in Londonwhere Lockton International is basedhe will be responsible for all non-U.S. operations outside the United Kingdom, including South and Central America, the Asia-Pacific and continental Euorpe.

When Mr. James decided to seek out new challengesleaving Lloyds after a decade in which he turned around the markets poor media relations and expanded its already impressive reachLockton caught his eye because while it did not draw the kind of press commanded by mega-brokers such as Marsh, Aon and Willis, with their clients, they were certainly not operating under the radar, he told me in a recent interview.

When I did my due diligence, in talking with risk managers, what impressed me immensely was Locktons intense focus on customer service, while also supporting its producers and partners, he said.

He added that he sympathized with buyers who expressed a desire to have an alternative to some of the global brokers. There is a great appetite and need for another option.

While Lockton has been placing international business for awhile, the Forbes acquisition puts the firm on the map as an emerging global power. Developing those capabilities is where Mr. James comes in.

My first priority is to talk to our existing client base to understand what they want from Lockton globally, he said, noting he would also be racking up frequent flyer miles as he meets with Locktons foreign offices to coordinate with his direct reports.

My goal is to take Locktons philosophy of putting the customer first and replicating that around the world, he added.

Expect him to do just that.