Behind the Scenes: Inside the business of insurance.

• Author: Barbour, Tracy
• Position: INSURANCE

In the realm of commercial insurance, brokers render invaluable support for their clients by ensuring proper coverage and protection for their employees and physical assets. Brokers are the conduit between the insurance carrier and the client, says Todd Wheeler, a principal and vice president at Parker, Smith & Feek. "We're viewed as trusted advisors by our clients and in the same light as they view their CPA, banker, or counsel," he says. "The premiums that we are able to save them are real dollars that are injected back into the Alaskan economy."

In essence, insurance is a mechanism that helps companies manage risk, which is a critical function of their success and survival, says Chris Pobieglo, president of Business Insurance Associates. Insurance allows a company to take an unknown risk and transfer it into a known cost such as an insurance policy. Pobieglo explains: "Insurance takes an unknown and puts a known value on it. This helps companies with preparing budgets and not being caught by surprise by a catastrophic event that can put them out of business."

In terms of economic impact, insurance contributes significantly to the state of Alaska, according to Pobieglo. "Taxes on insurance policies were the second-biggest revenue generator for Alaska," he says.

However, the relevance of insurance is sometimes more subtle and latent, according to Pamela Whitfield, founding partner of Elite-VB. Whitfield, who sells voluntary or supplemental insurance from multiple carriers, emphasizes the potential effect of COVID-19 in the workplace and how employee-funded voluntary insurance may be applicable. She says, "As financial times get tougher and tougher on businesses, employers may drop their employer-paid programs and find that adjusting those benefits to be employee-paid can work to retain valuable benefits without having a strain on the company's bottom line."

Bridging the Gap

Insurance brokers help clients demystify the complex options offered by insurance carriers, and they use diverse approaches to bridge the chasm between the two entities.

Take Parker, Smith & Feek, for example. The regional insurance broker has six locations and more than 300 employees, with 30 of them working in Alaska across its Property & Casualty and Employee Benefits departments. These employees apply a variety of skills to effectively assist clients, including interpersonal communication, listening, problem-solving, time management, and relationship building. Possessing patience, the right attitude, and a willingness to learn are also critical attributes for the firm, which figuratively places clients at the top of its organizational chart. "Ultimately, we look for people who want to work hard, have fun doing it, and be part of a team that takes pride in helping our clients achieve success," Wheeler says.

Parker, Smith & Feek, which was established in 1937 in Seattle and opened its Anchorage office in 1986, serves a unique role in Alaska. While it is not a large national/international firm, Parker, Smith & Feek has all the same resources as the big firms, Wheeler says. And it considers itself to be a "glocal" business--one that has a global reach and presence but is local. The depth of the firm's resources includes housing its own claims, risk control, builders' risk, and analytics teams, as well as...