A Century of Cultivation

Two years ago, Barney & Barney (B&B) celebrated something that few independent insurance agencies get to enjoy; its 100th anniversary. Started in 1909 by brothers Phillip and Lorenze Barney, B&B has become one of the oldest independently owned insurance companies in the nation. Despite dealing with the many challenges a century old company may encounter, B&B has a proven history of overcoming those obstacles and has grown from one location in San Diego to three locations in California with about 420 employees.

The brothers’ father, George Barney, who was in the real estate and development business, suggested that his sons join the insurance industry. The Barney brothers sensed a growing opportunity in San Diego to sell fire insurance and wanted to get in on the ground floor of selling automobile insurance.

B&B’s mission today remains the same: to be a full-service agency and support the community in every way possible. "Our market strategy is to invest and create the feeling that Barney and Barney ‘is everywhere’ in the communities in which we operate," said Paul Hering, CPCU, managing principal and CEO of B&B. "Some of this happens from marketing and advertising, some from social media but a lot from our people being out and actively engaged in the community."

Related: Read the article "IIABA Names Top Performing Agencies in Best Practices Study."

In 2008, B&B merged with Saylor and Hill, a 75-year-old firm in the San Francisco Bay area. Over the years revenues have steadily increased, and this year revenues are expected to be more than $82 million, Hering said. The agency splits its revenue evenly between personal and commercial lines. In the past decade, the agency has experienced an 18 to 20 percent increase in growth each year, despite being faced with the effects of a troubled economy.

"We have certainly felt the impact of the soft market in P&C but we have been very fortunate," Hering said. B&B’s success can be attributed to the value-added services that it provides for its clients—such as claims management, risk management, safety and loss control, wellness, actuarial, ERISA, legal and enterprise risk management.

B&B also offers specific practice groups on executive liability, technology/life science, schools/education, construction, healthcare, clean technology, community associations, real estate, hospitality and retirement services/wealth management. "These practice groups help differentiate us in the market, as we can bring a deep understanding of the clients business that others cannot," Hering said.

B&B’s property-casualty carriers include Travelers, Chubb, Hartford, Zurich, Zenith, Chartis, ACE, Hanover and AIX; Aetna, Cigna, United Healthcare, HealthNet, Humana, MetLife and Unum for benefits. As far as reaching new clients, B&B’s communications team works hard to build a multi-faceted marketing strategy with the objective of being perceived as being "everywhere."

The agency participates in the IIABA Best Practices survey and has been a member of Assurex Global for more than 25 years. Last year IIABA named B&B as the top-performing U.S. firm in the larger broker category. More than 1,200 independent agencies throughout the U.S. were nominated and only 224 qualified for the accolade. B&B was among 35 to 40 top-performing agencies in one of 6 revenue categories. In its corresponding revenue category, six agencies were noted as top-performing agencies.

Related: Read the article "Assurex Announces New Board."

B&B management understands that for its clients to be completely satisfied, its associates need the most efficient tools. B&B uses Terrace’s Agency Broker System ABS for large commercial and benefits operations, along with Vertafore’s agency management system and Microsoft CRM. The agency’s management team stays close to what is going on in the organization, and has an innovation initiative that allows associates to suggest ideas and solutions that will benefit the company. B&B’s internal succession plan has held up, with 37 owners that actively participate in day-to-day business operations. Investing in young talent is a tactic that B&B is proud of as well. "We hired two ‘producer trainees’ right out of college. Today, those people are owners of the company. We intend to grow the company but we are also committed to preserving the culture of the company and not lose sight of what made us a great company in the first place," Hering said.

B&B has gone above and beyond to serve its surrounding communities as well as its clients by regularly hosting informative events. In September 2011, the agency hosted a water prevention seminar centered around claims and unique water loss situations as they pertained to homeowners’ associations. Robyn Thaw (director, community association practice, B&B), Andrew Minor (Fireman’s Fund Insurance), Marjorie Hansen (SERVPRO), Rob Sherry (Fireman’s Fund Insurance) and Yvette Green (risk and loss advisors, B&B) served as a members on the panel.

Other ways B&B serves its surrounding communities is The Barney & Barney Foundation. Created to commemorate its 100-year anniversary, the foundation hosts fundraising drives to raise money and provide grants to local charities.

The foundation’s main event is the "Rock the Foundation" benefit concert that helps support local charitable organizations. B&B associates nominate charities from within the surrounding communities that the company operates and nine charities are selected to receive grants at the event. The concert is a private event held for nine recipients and those who have contributed to raising money for the cause.

Related: Read the article "NU ‘Agency Of Year’ Winner Raises Cash For Charity."

Last year’s Rock the Foundation concert was held at the Del Mar Thoroughbred Club and was a great success. More than 450 people attended and the Barney & Barney foundation raised $175,000 via ticket sales, underwriting support, opportunity drawings and auction items. This allowed B&B to give $100,000 to the Burn Institute, Neighborhood Healthcare, New Alternatives, the San Diego Natural History Museum, and Voices for Children, THINK Together, YMCA of Orange County, Alameda County Community Food Bank and the East Bay Center for Performing Arts. Since the foundation was created, B&B has contributed more than $500,000 to local charities.

Although much has changed since 1909, B&B manages to keep sight of the big picture. "In the 102 years since our inception we now have a larger parking lot and no longer have a post to which you can tie your horse when you get to work," Hering said. "At the end of the day, it comes down to having the best people who are committed to tending to clients’ needs. B&B is a great firm in a great industry and I know I speak for many when I say how lucky we feel to be part of this great company."