FARMINGTON, Conn., May 2 - As it marks its second anniversary, InsurBanc continues to finely tune its operations to become the preeminent financial partner for independent insurance agents and brokers seeking financial backing for their business plans, says InsurBanc President and CEO Michael Herlihy.
InsurBanc is the federal savings bank developed jointly by the Independent Insurance Agents & Brokers of America (IIABA) and the W.R. Berkley Corporation to serve independent agents and brokers as well as their clients. InsurBanc officially opened April 30, 2001.
On its second anniversary, InsurBanc had more than $26 million in deposits and $40 million in assets, more than doubling in size from the previous year.
"During our second year, InsurBanc staff listened closely to what agents and brokers were saying about the challenges they face in their current banking arrangements,” says Herlihy. “Agents and brokers told us that their current banks do not understand their business operations and thus their business’s credit needs are not being adequately addressed.
“In response to this opportunity and to fill a need for our core constituency, InsurBanc has concentrated its efforts on developing financial products and services to serve the needs of agents and brokers,” explains Herlihy. “As a result, we have created an unmatched expertise in agency financing and invested nearly $15 million in agent-broker perpetuation and acquisition loans.”
“Through this strategic refocus, InsurBanc quickly is becoming the bank of choice for agents and brokers as they seek funding for equipment purchases; acquisition and expansion strategies; perpetuation plans and a range of other business needs,” says IIABA CEO Robert A. Rusbuldt.
“InsurBanc is a welcomed alternative to traditional banks because it is providing financial products tailor-made for the unique needs of independent agencies and brokerage firms. Through the commitment of a staff that understands the insurance business, InsurBanc quickly is becoming the ‘go-to’ financial services provider for IIABA members,” says Rusbuldt.
As word continues to spread about InsurBanc’s expertise in agency financing, more and more independent agents and brokers will make the bank their choice as a financial partner, agree Rusbuldt and Herlihy.
Along with agency financing products and services, InsurBanc puts a wide array of consumer banking products at the disposal of agents and brokers and their clients, including consumer loans, credit cards, home equity loans, mortgages, certificates of deposit and money market accounts. For business clients, the bank offers working capital lines of credit, commercial term loans, commercial real estate loans and cash management services.
To compete in the Internet economy, InsurBanc has been structured to work with clients wherever they are. Customers can transact business with InsurBanc via e-mail, on the Web, by fax, by phone, and, of course, through their independent agent or broker.
InsurBanc is doing business with agencies on a national basis and is authorized to pay referral fees to agents in 18 states, including all products and services in six states: Connecticut, Massachusetts, New Jersey, Maine, Rhode Island and Delaware. The bank can pay referral fees to agents for credit card applications and settlement fees for residential mortgages in a dozen states: Kentucky, Illinois, Iowa, Indiana, Louisiana, Missouri, Minnesota, Nebraska, South Carolina, Oklahoma, Oregon and Virginia.
“It has been an exciting second year for InsurBanc. We have enhanced the banking experience for agents and brokers across the country,” says Herlihy. “We’re extremely proud of how our brand of banking has been so well received by both IIABA members and consumers.”
Headquartered in Farmington, Conn., InsurBanc is the operating subsidiary of Peyton Street Independent Financial Services Corporation, a thrift holding company jointly owned by IIABA and W.R. Berkley Corp. and its subsidiaries. Organized in 2001, InsurBanc is a federal savings bank, the deposits of which are insured to applicable limits by the FDIC. Web address: www.InsurBanc.com.
Founded in 1896, IIABA is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of more than 300,000 agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life and health—as well as employee benefit plans and retirement products. Web address: www.independentagent.com.
Founded in 1967, W. R. Berkley Corporation (NYSE: BER) is an insurance holding company which operates in five segments of the property and casualty insurance business: specialty insurance, alternative markets, reinsurance, regional property casualty insurance, and international.
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