For John Bloomstine and his staff of 21 people at Insurance Management Company, a small brokerage in Erie, Pa., everyday starts with a meeting about customer service.

"Communication--it's the key" to good service, says the president of this third-generation, family-owned commercial lines broker. "Our mission statement is 'service beyond expectations.'"

 The implementation of that mission statement helped make IMC the 1999 winner of the Arthur Quern Quality Award, presented by the New York-based Risk and Insurance Management Society at its recent annual meeting in Dallas.

The whole IMC staff offers their take on the business and their customers at these 8:15 a.m. meetings, which "put everybody on the same page," Mr. Bloomstine explained.

Everyone has a chance to speak up, because the company has "a non-competitive atmosphere," he noted--probably a good thing, considering that the top executives of the company are siblings.
John, the president, is brother to Chris W. Bloomstine, vice president, secretary and account executive. Beth A. Dubik, vice president and treasurer, is their sister. And the company's senior client advisor is William C. Bloomstine, son of the founder and father to the current crop of executives running the brokerage.

IMC is a relatively small broker, generating commission and fee income of $2.5 million each year. Its high marks for quality are an interesting twist in an industry that seems to be following the "bigger is better" rule for brokers--especially since the nominating client is far from a small, local business.

Cary, N.C.-based Lord Corp., which nominated IMC for the RIMS award, is a $390 million company with facilities in seven states and 10 countries. The firm has 2,000 employees.
Despite its size, Lord has maintained its 29-year relationship with IMC, even after the firm moved its headquarters from Pennsylvania to North Carolina.

"A lot of people can talk quality. These guys really do it," explained David A. Davenport, risk manager for Lord, which manufactures specialty chemicals and systems to manage mechanical motion and control noise.

At one point, he said, "we had a global program with one of the large letter-house brokers and we have moved it from them to Insurance Management."

"We get much better service [at IMC] because they know the company. The larger brokerage concerns just never took the time," he said. How does a small regional broker win out against the big guys? It's quality service, according to Mr. Bloomstine. "We're on the phone with [clients] daily, or at least weekly," he explained, and service is accessible 24 hours a day, seven days a week.
He noted that the mid-sized manufacturing firms that make up much of his customer base often have risk managers who wear other hats, acting as a treasurer, chief financial officer or operating head in addition to their risk management duties.

IMC focuses on providing as much information and insight to clients as possible, but also always keeping in mind how busy many of these part-time risk managers can be, Mr. Bloomstine said.
Constant conversations with clients refine IMC's service, he explained -- for example, leading to the development of a quick-fax service that gives clients short updates on important items like workers' compensation law.
"We're doing lunches, we're doing visitation, we're putting on seminars...we walk them all through the insurance program. That way it takes the pressure off the buyer who is not a full-time risk manager," he said.

In addition, he said, the broker works with risk managers to help "sell" a program to top management in their firms, conferencing with executives and providing materials to explain the risks and programs.

While some say that global brokers have an advantage in the marketplace because of their size, Mr. Bloomstine doesn't agree.

"The executives of the regional brokers have personal and business relationships with the executives of the insurance companies," he noted. While top executives at major brokers may have those personal relationships, the front-line brokers may not, he contends.
"We're wired in, we know what's going on in the industry and if you do have a problem with a regional broker, you get the top executives," he said.

The constant access to top people -- and the same people -- is another reason why Lord Corp. has kept using IMC.

"I've been dealing with the same people for the nine years I've been with [Lord]," Mr. Davenport said. He noted that "they are always looking at my job and what they can be doing to make my job easier...that's just the type of company that they are."

Despite its small staff, IMC has a global reach, Mr. Bloomstine explained. Through broker associations and the recommend-ations of insurers, his firm has relationships with the best regional brokers worldwide to help them place business in foreign countries, he said.

He highlighted Chubb as one insurer that connects him with other brokers to work on a program.

By using international networks, Mr. Bloomstine said, IMC is able to pick the best broker in any country for one particular job. He said he works out good arrangements to make sure his client is getting top service -- even, in some cases, allowing the foreign broker to take the whole commission on that piece of business.

"We're not locked into one broker overseas," he said. “We pick out what's best for the client.” In addition, the firm has no overhead from maintaining other offices. "I don't know what we couldn't write overseas," he added.

IMC started focusing on con-tinuous quality improvement in 1991, after a local initiative encouraged clients to explore quality issues. "The Erie Chamber of Commerce started a community-wide quality, initiative, one of the first in the country," Mr. Bloomstine explained. At first apprehensive about how quality techniques could apply to a service industry like insurance broking, the broker began looking into quality issues after talking to clients, he said.

The firm hired consultants that put the entire team through continuous quality improvement training and interviewed clients and business partners about improving its service. In 1992 and 1993, IMC was recognized with quality awards from the Erie Chamber of Commerce. The firm has since gone on to win statewide quality honors.

The Quern award, inaugurated last year, is given to an individual or company in any facet of the industry that demonstrates a commitment to quality, said Amy Geffen, RIMS director of professional development. Last year's winner was Exton, Pa.-based ECS, Inc., a provider of environmental risk management services.

Mr. Davenport said the quality approach shows through in everything IMC does, from organized and thorough renewal presentations to clear cut explanations of cost and coverage expectations.
"They are really fighting to get the best price...and always looking for the best ways to expand the coverage," he said.

"I just think they're great," he added. “They are helping to move the industry forward."