Jill Jinks describes how this specialty insurance wholesaler finds a way to say yes when everyone else says no.

In 1986, a veterinarian infected monkeys with HIV in an effort to better understand and possibly find a cure for AIDS. He housed them on an island off the coast of North Carolina and later transported them to various laboratories. Most insurance companies wouldn’t touch that scenario with a 10-foot pole, but Atlanta-based Insurance House gladly raised its hand.

“When everyone else says no, it is our job to find a way to say yes,” said Jill Jinks, CEO of Insurance House, a $110 million regional provider of boutique property and casualty insurance products.

Rather than provide customers with standard auto, life, and property insurance, Insurance House chooses to insure individuals and businesses that represent significant risk. “Most insurance is predictable—based on statistics, you can determine how many auto accidents or house fires to expect, but have you ever thought about who insures the Triple Crown horse race or the space shuttle?”

Jinks explained that if a customer has an unusual claim—an $8.5 million Picasso, for instance—he or she would call an independent agent. If the independent agent is unable to find an insurance carrier to take on the risk, it calls on a wholesaler, such as Insurance House. “We may call our friends at Lloyd’s in London or a specialty insurance company here in the states to craft a policy for that agent.”

Jill Jinks

John called his good friend, the chairman of Progressive Insurance, which at the time specialized in high-risk driver’s insurance, and asked if he would be willing to write claims for his newly formed company. “Progressive agreed, and we wrote our first account for Coca-Cola,” said Jill. Since then, Insurance House has added Lloyd’s of London, The Chubb Group, Hanover Insurance Company, and several other specialty insurance companies to its list of underwriters.

“We had a nice beginning, but it has not been easy because the type of insurance we specialize in scares people. We chose to take this path because we have knowledge and skills that others don’t, and we can charge more because we take on greater risk,” she said, adding that the company has been profitable since day one and closed 2006 with $130 million in consolidated premium writings.

Growth through acquisition
In 2006, Insurance House purchased Takoma Park, Md.-based L.E. Harris Agency, a wholesaler founded in 1922 that specializes in commercial lines with premium volumes in excess of $12 million. The purchase expanded the company’s footprint into the Washington, DC and Maryland markets and strengthened its position in Virginia.

According to Jinks, Washington, DC is a ripe market for Insurance House with high-profile individuals, historical land marks, special events, and other potential non-standard claims. In addition, L.E. Harris has a strong book of directors’ and officers’ insurance, as well as errors and omissions policies. “We wanted more expertise in those niches, which made the company so attractive to us,” said Jinks.

Two years prior, Insurance House acquired Deering & Associates, another wholesaler based in Durham, NC, enabling the company to expand and enhance its product offerings. “Our industry is consolidating, and we want to grow, so it makes sense for us to look for acquisitions,” said Jinks. Today, Insurance House has commercial lines offices in Atlanta and Durham, and personal lines offices in Atlanta and Winston-Salem.

Jinks explained that Insurance House’s strategy is to serve multiple distribution channels, so it also owns two insurance companies, based in Georgia and Arizona. The companies are attempting to expand geographically by channeling business through other non-affiliated general agents.

Culture change
As the insurance industry continues to rely more heavily on technology, independent agents are often forced to use a different software program for each insurance company they write business with. “Imagine if you had accounts at six banks. Every time you wanted to transfer funds or check your balance, you’d have to navigate six systems,” said Jinks. “It can make you crazy.”

Although there’s not much Insurance House can do to reduce the number of programs independent agents deal with, it has made its commercial lines program as user-friendly as possible with the help of a technology firm based in Connecticut. Agents can log into IHExpress.com, an aggregating site for general liability and property insurance, to compare quotes from several insurance companies. “They can determine the coverage and pricing without having to call us,” said Jinks, adding that the technology is particularly handy for smaller accounts. For personal lines, Insurance House developed ARES, a rating system for non-standard private-passenger automobile insurance.

For its staff of 205, Insurance House is investing heavily in training. Jinks explained that up until the early 1990s, large insurance companies trained underwriters and the independent agents who represented them. These agents went back to their respective agencies and shared their knowledge. However, when the industry began consolidating, those training opportunities were eliminated. In reaction, Insurance House has spent the last two years developing the Insurance House Way, which is comprised of a thorough orientation program; Insurance House University, which provides technical training for employees and agents; and Leadership Insurance House, a succession planning program.

“It is a cultural change for our company. The kind of skills and training we need to write complex insurance cannot be found in someone who is right out of college. You have to have three to five years of grease under your finger nails, and you have to have lost a few battles. We need a more sophisticated underwriter working for us, and that requires a lot more training,” said Jinks. “Our COO and I have struggled with this, but we are learning some valuable lessons.”