Though solid, the agency , established by Friedlander’s grandfather, Harold, in 1926 and originally called The Friedlander Company had never developed a specialty niche and seemed to be subject to the marketing whims of its companies. Friedlander observed over and over again that just when the New Rochelle-based agency had built up a significant book of business to accommodate a company’s marketing appetite, the insurer’s focus would change and along with it the future of the agency.

lander also notes that during the early 1990’2 the agency’s premium volume ranged at around $5 million yet didn’t seem to be able to move beyond that level. He also recalls reading an article in Inc. Magazine that listed the 500 fasted growing companies and became encouraged to see three agencies listed among the group.

At the time, I felt we were on a treadmill we were stuck in it, says Friedlander. Determined to get off the treadmill and claim some control over the growth and long-term future, Friedlander made the decision to identify and aggressively pursue a specialty that would give his business a competitive edge.

A close examination of the agency’s book of business at the time revealed a significant number of retailers and worker’s compensation insureds. The melding together of Friedlander Group®, Inc.’s retailer clients with the agency’s already proven worker’s compensation expertise resulted in the formation of their first WC Safety Group for Retailers in 19901. Two more WC Safety Groups followed in 1993, one for wholesalers and the other for restaurants, which now counts among its member 100 McDonalds Restaurant locations.

Looking back, Friedlander believes the timing was just right for his agency to make the changes it did. With workers’compensation premium rates rising in the early 1990s at exorbitant rates and generating both a public outcry and growing concern among legislators, the introduction of WC Safety Groups that offered advance premium discounts, a wide variety of loss control, administrative and claim services, and the potential for significant dividends drew an immediate and large response.

According to Friedlander, the first dividend given to members of all three Safety Groups was approximately 30 percent of participant’s net premium. Dividends have since risen as high as 60 percent and advance discounts, originally in the 20 percent range, rose to 40 percent in 1998. Combined, these two features have resulted in the net WC premium paid by members of all three Safety Groups to be the lowest in New York State, Friedlander says.

The numbers are very compelling,he believes, yet emphasizes that these numbers won’t ensure the success of his agency’s Safety Groups. He stresses the importance of service not only in the vent of a claim, but to help members control and contain their workers’comp costs.

Towards that end, Friedlander Group performs a numbers of key functions for members of its Safety Groups, including: acting as an intermediary between the insured and the State Insurance Fund (SIF) to address any questions or concerns; reviewing all Reports of Injury before they are submitted to the SIF and Workers’ Compensation Board; investigation of any claim where indicated; representing the insured at hearing before the Workers’Compensation Board; third party recoveries; working to obtain Second Injury Fund benefits; audit reviews; classification reviews to ensure the most favorable classification and the assignment of payroll to the proper, less costly classification; reserves review and negotiation for lower reserves on open cases; monitoring of the insured’s experience rating; quarterly distribution of a tailor-made WC claims report for each member; workplace safety reviews and recommendations and the opportunity to join a Disability Benefits Safety Group, three of which were formed by the agency in 1996 to competitively address the disability insurance needs of members of its three WC Safety Groups.

While Friedlander Group Inc., aggressively markets its WC safety groups, the key to their success and profitability rests, in large part, on the strong set of standards to which potential Safety Group members are evaluated. We are looking for businesses with a proven safety track record, Friedlander says, noting that the safety groups are composed of low claim members who likewise create a low loss experience as a group. An ongoing commitment among members to maintaining a safe workplace environment is also encouraged through hands-on safety tools such as videos and employee training, as well as yearly analysis can result, upon renewal, with an upward or downward adjustment of the premium discount, or in some cases, removal from the safety group. Additionally, the loss experience performance and dividend potential of each Safety Group is addressed through stop loss protection, which minimizes the negative impact of any singular catastrophic claim upon the entire group.

According to Friedlander, there are currently a total of 1,700 members in all three of his agency’s WC Safety Groups. Last year, alone, the company generated 800 leads as a result of an intensive mailing and telemarketing campaign. Additionally, Friedlander Group has, over the years, established relationships with approximately 450 brokers and risk managers throughout the state who funnel potential Safety Group members to the agency, receiving an annual service fee for their efforts. That arrangement, says Friedlander, has been highly beneficial to both parties, - to the brokers and risk managers by providing them with an additional source of income and vehicle through which to competitively meet their client’s WC coverage needs and to Friedlander Group by creating a distribution mechanism through which an untapped potential customer base can be more efficiently reached.

Today, Friedlander Group has grown from what was once a small, one-person property/casualty agency, to an operation employing 20 professionals and generating approximately $25 million in annual revenues, of which about 80 percent derives from the agency’s workers’ compensation business. Friedlander has set as a goal for 2,000 to write 100 new WC policies per month (the agency currently writes about 90) and to close the year with $40 million in sales. While he concedes this latter objective will be a challenge given the current WC environment that has seen a 50 percent drop in premium rates, he is nevertheless committed to working vigorously towards achieving it. And as he points out with some humor, we still have until December 31.

Friedlander also reports that his agency, while perhaps not appearing on Inc. Magazine’s Fastest Growing Company list, has nevertheless been ranked fourth by premium volume on a Property & Casualty Insurance Agencies list published annually by the Westchester County Business Journal.

The bottom line, says Friedlander, is we knew we had to create a niche and specialize and it worked. The more you focus, the better and more unique your services become and the more competitive your agency will be.

As printed in Insurance Advocate, January 22, 2000 issue