Acordias New Head Pilots Through Storm Whereothers may be looking at the whirlwind of events affecting theinsurance world over the past few years as a massive storm withruinous implications, the new head of Acordia sees opportunity thathe says his firm is well positioned for in the coming years.

After 17 years with Acordia, most recently as chief operatingofficer, Kevin Conboy was named president and chief executiveofficer of the firm in early February. He replaces Frank Witthun,the founder, who navigated the Chicagobased firm to become one ofthe countrys top 10 insurance brokers, eventually finding animportant partner in financial services company, Wells Fargo &Co., which acquired Acordia in 2001.

Mr. Witthun remains with Acordia as non-executive chairmanconsulting on acquisitions and representing both SanFrancisco-based Wells Fargo and Acordia at industry events andbefore London-based Heath Lambert Group, Wells Fargo said.

In an interview, Mr. Conboy discussed Acordias present andfuture, its relationship with Wells Fargo, and how he sees hismission with the organization.

Growth appears to be the number-one priority for the firm, whichit plans to achieve through acquisitions and by branching out itsservices for clients and building to meet their risk managementneeds.

Mr. Conboy noted that the firm formed Acordia Re last year toprovide reinsurance and risk programs within property-casualtylines and recently announced the creation of a risk finance group.This group offers clients consultation and other insurance servicesto protect them from financial risks associated with corporategovernance, errors and omissions, employment practices, andenvironmental liability.

This is part of a strategy–”a multi-prong approach,” he calledit–that also involves Wells Fargos clients. Here, there is a “veryaggressive cross sell program” that will prove “very rewarding interms of new customers that we expect, for the balance of the year,will have a meaningful impact on our sales results.”

“We are clearly focused on the challenges and opportunities intodays market place,” he observed.

Acordia looks to remain working with its bread and butter clientbase, the middle market, but the dynamics of growth among its ownlong-time customers and the desire of others seeking alternativesto “the big three” are presenting newer opportunities for thefirm.

“Clearly our footprint and focus is built in being a mid-marketbroker and we plan to continue there,” said Mr. Conboy. Butcreating these niche markets beyond the middle market, while notbeing “a material part of our business,” allows the firm to offerservices needed for its “upper-end customers.”

However, Acordia is not necessarily looking to replace Marsh,Aon or Willis.

“I dont see the risk management revenue stream playing adifferent role at Acordia than it does today,” said Mr. Conboy.“What we are seeing is, because of the market dynamics of thosecustomers that were once considered mid-market, that have growneither through acquisition or market dynamics, they have nowelevated themselves to a new level. And because we have expandedour base and are now operating in some large metropolitan areas,there is an opportunity to expand that base. That is the area thatwe are looking to develop.”

In the current hard market environment, one he referred to as “aperfect storm,” Mr. Conboy said the firm is well positioned “with agreat group of professionals” to deliver “new and creative ways” toaddress clients insurance exposure and the financial impact ofinsurance on their bottom line.

“I think the marketplace, right now, is the best marketplace[for Acordia],” he observed. “It may not be that for the customer,but certainly in terms of our business and our opportunities, andour ability to win new business, this is where we shine.”

In discussing the relationship with Wells Fargo, he said it hasturned into “a very positive one.” Since Wells Fargo took over thefirm, as in any acquisition, he said, “there were a few rub points”as the two firms “got to know one another.” But it has worked outto be a “positive” experience that has translated into turning thefirms people into a “very pumped” sales force. One benefit of theacquisition is that Acordia will see its information technologytransformed onto one platform over the next two years.

“On balance, it has been a very positive experience,” hesaid.

Today, Mr. Conboy is spending a lot of time “communicating,communicating” with Acordias people, which has translated into alot of frequent flyer miles, he joked. But the essence of the firmremains the people, he noted.

“It may be an old line, but your people are your greatestasset,” he said.

For the future, there remain many projects he says he would liketo see come to fruition, but to choose one as the most important“would be like looking at your children and saying which one youlike better.”

It is important, he emphasized, that Acordia run as it hasalways run, as a decentralized firm with a keen entrepreneurialspirit that is “not micro-managed, maybe micro-watched, but notmicro-managed.”

And, he added, he aims to see that the firms revenue grows tobetween $800-to-$900 million, from its last reported $600 million.“Thats not going to happen by internal growth,” he said.

“I spend 30 to 40 percent of my time in front of potentialacquisition prospects,” he said. “I give them a phone directory ofeveryone in our company and tell them to call anyone to ask aboutour commitments and to ask how Acordia is run. I think that is avery strong testament not only to our people but to the culture andspirit of the company, and that is something that not too many ofour competitors can say.”

Reproduced from National Underwriter Edition, April 21, 2003.Copyright 2003 by The National Underwriter Company in the serialpublication. All rights reserved. Copyright in this article as anindependent work may be held by the author.