Mom-and-pop insurance brokerages can still succeed today, as clients place great value on developing personal relationships with broker owners, says the head of one of the largest broker networks.
“Brokers will use that against them (large networks) every day of the week,” says Martin Hughes, the chairman and CEO of HUB International, told Insurance Business magazine. “They will say to clients, ‘Wouldn’t you rather be with someone who owns, rather than being with a representative?’ ”
Hughes’ view on the state of the insurance industry today contained some surprises, and will be featured in the launch issue of Insurance Business magazine this October. In an exclusive interview with the magazine, Hughes explains how he started in the business, came to form HUB International in 1999, and how life at HUB has changed since the sale to Hellman & Friedman back in July.
Hughes is upbeat on the future of mom and pop brokerages, and the rewards of operating a family-run brokerage.
“I think mom and pop businesses can do great,” Hughes told Insurance Business magazine. “It is a wonderful business… if you are willing to specialize, in a particular niche, I think mom and pop businesses can do great.” (continued.)
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At the helm of a string of brokerage takeovers during his decades with Mack and Parker and HUB International, Hughes shows no signs of slowing down as a major player in the industry, signing a five-year commitment to stay on at HUB International.
“My commitment signals to the staff that it is business as usual,” says Hughes, explaining the importance of his being there to continue the work he began at Hub, and where he believes Hub will be in the decades to come.
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