Brokers key to growing FM Global’s overseas business

FM Global named Randy Schreitmueller to the position of manager of broker relations with responsibility for “championing the voice of the broker” and maximizing the development of long-term broker relationships worldwide. That gives him the opportunity to continue to build on the foundation of FM Global’s engineering-driven underwriting and risk-management services and property-loss- prevention research.
Schreitmueller is at the hub of an increasing focus on the challenges and possibilities facing the commercial insurance industry, as extreme weather events and the interconnectedness of international supply chains impact global business relationships.

PBN: What’s the major change in your work in your new position?
SCHREITMUELLER: It’s the first time FM Global has had a single, dedicated person overseeing broker relations. Having said that, I should confess I’ve been doing that job on a part-time basis for the last six or seven years.

PBN: Why did the company create this position?
SCHREITMUELLER: It’s probably a function of the growth and the success of FM Global. We are a company that has roots in Rhode Island for 175-plus years, but we’re also a global company and we’ve been a highly successful company in the commercial-property space. Just about two-thirds of our business is derived through brokers. The other one-third of our business comes through direct sources. That is a fairly unique thing in our segment of the business, having two delivery channels. … We’re now a $5.6 billion revenue company and more than two-thirds of that revenue comes through our broker channel.

PBN: Is the change in the global marketplace a major reason for the creation of a new position focusing on the brokers? SCHREITMUELLER: Probably more indirectly. It’s probably a function of the fact that our revenue and our profitability have been growing over time [and] that justifies having a full-time position dedicated to brokers. That being said, it is a challenging market environment. As we look at the prospects going forward, sustained growth means we need to be able to operate in any market. We need to be able to attract new business not only in North America, but outside.

PBN: How many countries do you have brokers in?
SCHREITMUELLER: We service FM Global clients in more than 130 different countries. We inspect about 65,000 client locations that we engineer. So in the course of insuring those clients, we’re dealing with literally hundreds of brokers around the world. The big relationships in our business are with a handful of brokers. The top five or six brokers account for maybe 50 percent of our brokered business. We also deal with a plethora of small- to midsized brokers, and local brokers, in every one of those countries.

PBN: Do extreme weather events affect how you work with brokers?
SCHREITMUELLER: The main connection would be the fact that we are so closely associated with helping our clients protect their supply chains, in helping them to be more resilient. That has implications both on the engineering side, as well as the insurance-coverage side. I think our clients look to us, and will continue to look to us, to help them harden their facilities to these types of occurrences. As the world population grows, particularly in areas like Asia and Latin America, companies are exposed to more and more of these natural catastrophe-type of events, be it earthquake, be it flood, be it windstorm, and we get very much involved in helping them protect against these. What makes it a broker issue is that the brokers recognize we are one of the best in the industry at helping clients manage their supply chains and making them more resilient. PBN: What are the issues with selecting commercial insurance, as with residential insurance, regarding the cost of all these extreme weather events and how that impacts the company?
SCHREITMUELLER: The clients want to make sure they work with a carrier that has the experience and the financial wherewithal to meet their obligations. So they very closely monitor financial ratings. They ask probing questions about balance sheets and do you have adequate capital in order to meet all your obligations and the quality of your reinsurance. They also want to know that you have a fairly robust business model when it comes to selecting risk – that’s one of the things we pride ourselves on.

PBN: With FM Global’s focus on engineering, how are the brokers involved in recommendations for improvements to facilities?
SCHREITMUELLER: Part of my job is making sure the brokers, certainly the major ones, are aware of our products and services, helping them to understand the things that make FM Global different. … The broker works for the client, and the broker’s job is really to ensure that the insured see that there is a connection between the best insurer for that client, best in terms of coverages, products and services. So to the extent I can help them understand the unique benefits of FM Global, the brokers are then in a position to make a good recommendation to their clients that we are a good solution. •

INTERVIEW
Randy Schreitmueller
POSITION: Vice president and manager of broker relations for FM Global
BACKGROUND: Schreitmueller has been with Johnston-based FM Global for 36 years, with 23 of those years in Rhode Island. Prior to being named to the newly created position of manager of broker relations on Nov. 1, 2013, he was vice president and manager of global services and market relationships. He has held positions of increasing responsibility in underwriting, client servicing, sales management and marketing.
EDUCATION: Bachelor’s degree in economics from Colby College, 1977
FIRST JOB: Unloaded bales of peat moss at a garden center
RESIDENCE: East Greenwich
AGE: 58