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Bob Charlesworth is a member of Charlesworth & Associates, L.C., a risk management consulting firm based in Overland Park, KS. He can be contacted by sending an e-mail to Bob@Charlesworth.net.
How did you get started in the insurance business?
My dad, Art Charlesworth, started the company in 1977 in Springfield, MO. At the time, the concept of risk management was just beginning. I went to work for another firm, and then in 1984 I thought it would be interesting to help him out. He was one of my professors in college (I took three insurance courses from him.) so I guess it was ultimately meant to be that we work together.
Tell us a little about where your company is today.
We’re a small, family firm, and I see us as a hired gun for the smaller to medium-sized firm that needs some outside help from a consultant who doesn’t have a financial stake in the outcome. We generally work on cases where something unique is needed.
What are some of the big challenges you face as a consultant?
We control the market selection process and make sure we stay neutral and give the customer what they need. It used to be when I talked about risk management, people thought property/casualty. I think people and businesses are becoming smarter and more intellectual when purchasing life and disability. They realize risk management applies to life and disability. It’s about finding the best benefit program and risk transfer alternative tailored for that client.
Can you give us an example of a successful case you’ve written? What made it unique? What challenges did you have to overcome?
Sure, it was a self-administered, self-insured disability program. The question was: Do we pursue a fully insured option? The group just didn't have the in-house claim management resources that an insurance company would. It was also a funding issue. An insured program can make it easier to budget for the future. But it was tough because moving to a fully insured program required a change of budgeting philosophy at the group. The Standard ended up winning the business because they took the time to understand the unique coverage and funding issues with this group.
What qualities do you look for in the carriers you recommend to your clients?
Insurance is still a people business. Who is the rep with the insurance company? Do they follow you, or do you have to spend half a day explaining the problem? Do they really try to understand the important issues? Are they willing to take on a challenge to help the client?
What are some red flags that might tell you a carrier is a poor fit?
If the quote is too low it indicates they may not quite understand what you’re asking for. I’ve got a pretty good head for numbers, and I have some idea of what the quote should look like based on the coverages that have been requested.