What are some great benefits of being a non-public brokerage agency?

Mike Milligan (pictured), the managing director at C3 Threat & Insurance coverage Companies, believes there are many benefits to being a privately held brokerage agency. In an interview with Insurance coverage Enterprise, he highlighted that the absence of shareholder strain permits a privately held agency like C3 to constantly prioritize purchasers and workers and supply forefront analysis and merchandise for purchasers’ profit.

“I’m unsure a publicly traded agency can try this to the specialised extent that we are able to,” he mentioned.

A big a part of C3’s consumer and worker focus includes creating expertise to higher inform their purchasers. Milligan defined that C3 has developed new instruments and platforms, giving them an edge in analysis and outreach. These instruments embrace C3 Profile, which offers complete public firm data immediately; C3 Lightning, which expedites worldwide medical trial placements throughout 125 nations; and C3 The Reply, a device that analyzes 13,000 administrators and officers (D&O) lawsuits in 80 alternative ways.

The expertise is not only about effectivity and offering the most effective data to their purchasers, but in addition about advancing the trade. Milligan famous the historic reliance on hypothetical information in D&O. He recounted that in his first IPO, D&O legal responsibility insurance coverage price $428,000 in premium for a $30 million restrict.

“The board didn’t spend time on D&O,” he mentioned. “Premiums elevated into the thousands and thousands yearly and D&O grew to become a poison in our trade.”

Milligan identified that The Reply was constructed for such conditions. It addresses tough questions like how a lot insurance coverage a enterprise wants, the implications of insider possession throughout litigation, and the affect of assorted monetary situations. The expertise of The Reply provides C3 purchasers a extra correct, nuanced evaluation and outlook of their insurance coverage wants, all primarily based on precise collected information as a substitute of hypothetical projections.

With their specialised expertise and platforms, Milligan emphasised the methods through which particular information can higher forecast insurance coverage wants for his or her purchasers.

“We meet with a D&O prospect who has Section 3 outcomes coming,” Milligan defined. “They are going to file an NDA and get an FDA resolution. We are able to search for Section 3, NDA, CRL lawsuits and present what number of fits have occurred. We are able to inform boards swimsuit dismissal charges, settlement charges, settlement quantities, and market cap issues.” 

Dedication to purchasers

The dedication to particular person purchasers and workers is greater than a speaking level for Milligan and his crew – it’s the muse of how they function. Expertise with information pushed selections and steering is important to their technique of serving to their purchasers – a lot in order that Milligan even as soon as satisfied a board member in opposition to shopping for $100 million price of insurance coverage.

“I promote insurance coverage for a residing. I’m pleased to promote you $100 million. However listed below are your threat components,” Milligan suggested the board member after using The Reply to develop a cushty answer. 

Whereas the trade has seen vital consolidation with a relentless tempo of mergers and acquisitions, there was a subsequent shift from privately held to publicly held possession. Nevertheless, C3 has seen development by 35% yearly for 4 years, all because it remained privately held.

With plans to take care of its impartial development and technological edge, C3’s consumer roster – together with firms with market caps starting from $100 million to $50 billion – is a testomony to its method.

“We work with actually wonderful firms as a result of they belief us,” mentioned Milligan. “We’re completely targeted on our purchasers and our workers, and that’s what makes the distinction.”