Opportunities in Brokering 2006

2005 Arthur J. Gallagher & Co.

Opportunities in Brokering2006

Opportunities in Brokering2006

By Paul Gilkerson & Tom LannenWith Christy Zada

ARTHUR J. GALLAGHER & CO.ARTHUR J. GALLAGHER & CO.

2005 Arthur J. Gallagher & Co.2

IntroductionsIntroductions Tom Lannen, Area President, Gallagher Benefit Services

B.S. Business Management, Bradley University 198411 years with Employee Benefits Insurance Carrier11 years with Employee Benefits Broker

Christy Zada, ??

Paul Gilkerson, Associate, Buisness Development, Gallagher Benefit ServicesB.S. General Business and Trumpet Performance, University

of IllinoisFormer Gallagher Intern


Outline/AgendaOutline/Agenda

Background- Arthur J. Gallagher & the Industry

What does it mean to be a broker in Today’s world?

Arthur J. Gallagher’s Internship program


Who we are:Who we are:

Founded in 1927

World’s Fourth-largest Insurance Brokerage and Risk Management Services Firm

Over $1.5 Billion in revenues

8,200 Employees

250+ Sales & Service Offices (including international)


Gallagher Industry BasicsGallagher Industry Basics

School

Factory

Corporation

Insurance Carriers

A.J. Gallagher


We Are A Provider Of Risk Management Services Including:

We Are A Provider Of Risk Management Services Including:

Brokering

Consulting

Claims Management

Risk Control


Real-Estate

Healthcare

Environmental

Garment

Entertainment

International

Marine

Captives

Higher Education

Aviation

Employee Benefits Services

Religious

Construction

Hospitality

Public Entity

Transportation

Restaurants

Professional Services

AJG focuses on clients in areas such as:AJG focuses on clients in areas such as:


What is the role of a Broker?What is the role of a Broker?


Role of a BrokerRole of a Broker

Assist Clients with Protecting the Assets of the Organization People (Employee Benefits, Workers Compensation) Building/Inventory/Vehicles (Property & Casualty)

Liaison between client and vendor companies Insurance Companies Third Party Administrators

Regulatory Compliance Consulting


Property/Casualty Consultative ProcessProperty/Casualty Consultative ProcessConsultative Process: Total Cost of Risk (TCOR)Consultative Process: Total Cost of Risk (TCOR)Consultative Process: Total Cost of Risk (TCOR)Consultative Process: Total Cost of Risk (TCOR)

Identify Risks

Identify Risks

AnalyzeAnalyze

Design/SelectBest SolutionDesign/SelectBest Solution

Execute/Implement Solution

Execute/Implement Solution

Measure Results

Measure Results

1. Identify Risks Identify exposures to loss Develop risk management criteria

2. Analyze Collect quantitative and qualitative data Compare against internal/external benchmarks Interpret data

3. Design/Select Best Solution Generate alternative solutions Identify risks for each solution Determine “best” solution vs. criteria

4. Execute/Implement Solution Develop action plans Anticipate and plan for potential problems Implement change

5. Measure Results Implement performance measurements Track short and long-term performance Evaluate outcomes Enhance measures and improve solutions as needed


Contemporary Employee Benefits Brokerage Services

Contemporary Employee Benefits Brokerage Services

Benefits Administrator

Benefits Manager VP, HR CFO, CEO

EE Communication

EE Engagement

Market Analysis

Regulatory Compliance

Benchmarking

Financial Analysis

Strategic Planning

Healthcare Risk Mgmt


Generate new business Referrals Conventions Phone prospecting

Service existing clients Renewal planning Periodic stewardship reports Risk Management Consultation

A day in the life of a broker…A day in the life of a broker…


Continuing Education Maintain professional standards Stay ahead of the industry Doing your “homework”

Industry Relationship Building Carrier seminars Vendor Capabilities

A day in the life of a broker…A day in the life of a broker…


What does it take to be a broker?What does it take to be a broker?


A Single digit handicap…

And a big appetite…



Expertise in the field

People skills

Analytical skills

Self motivation



Ability to think on your feet

Guts

It’s all about relationship building With client With carrier Between client and carrier


Why become a broker?Why become a broker?

Ability to make nearly unlimited income The harder you work, the more you earn

Extremely social environment

Perform a service that directly impacts lives

Variety – no two days are the same


How do I become a broker?How do I become a broker?

Funny you should ask…


AJG Summer Intern ProgramAJG Summer Intern Program

Christy Zada, AJG Summer Intern 2006


AJG Summer Intern ProgramAJG Summer Intern Program

Just Anothe

r Summer Job!


Program ObjectivesProgram Objectives

Let interns assess a career in insurance, in sales, and in sales at Gallagher

Let Gallagher assess interns for future employment potential


How Are You Going to Learn Our Business?

How Are You Going to Learn Our Business?

9 week internship

On-the-Job Training

Fast-Paced Environment

Interaction with Executives

Classroom training

Rotations


What Are You Going to Learn?What Are You Going to Learn?

All Aspects of Insurance – Property, Casualty or Employee Benefits

Negotiation Skills

Client Relationship Building Skills

Presentation & Public Speaking Skills

Writing Skills

Personal Strengths & Weaknesses


Intern ProfileIntern Profile

All Areas of Study

Sophomores and Juniors

Open to Brokering Career


Record of success

Above average grades

Involvement in activities

Leadership roles

Competitive nature

Strong work ethic

Intern ProfileIntern Profile


The DetailsThe Details

Location: Metropolitan Chicago and 36 other national locations

Dates: June 4 to August 3, 2007

Compensation: $4,000

How and when to apply


Apply Online www.ajg.comApply Online www.ajg.com

ajg.com


Why do we enjoy what we do?Why do we enjoy what we do?


QuestionsQuestions

Thank you.

Documents

Opportunities in Brokering 2006