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Consolidated Insurance It’s all for one and one for all

Small brokers have discovered the power of joining a group

Beth Fitzgerald//January 20, 2014//

Consolidated Insurance It’s all for one and one for all

Small brokers have discovered the power of joining a group

Beth Fitzgerald//January 20, 2014//

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Four years later, the network is working better than they could have imagined.

Consolidated Insurance Agents of New Jersey has grown to 42 agencies, and its aggregate premium revenue has been rising by double digits, to $350 million in 2013.

John K. Tiene, Consolidated’s chief executive, sees no end to the growth. By mid-year, he said the network should have about 60 New Jersey agencies. At that point, Consolidated expects to start signing up agents in Pennsylvania, New York and Connecticut, then Massachusetts and Maryland.

Tiene thinks total premiums will reach $450 million this year.

The ability of Consolidated’s members to handle all types of insurance has been key, Tiene said.

“Everything from the small corner nail salon to some of the largest construction companies in the state — we do it all,” he said. “Our agents write the full depth and breadth of insurance for the business community of New Jersey.”

Here’s how it works: Consolidated pools the premiums its members generate into a single master contract with an insur ance company such as Chubb or Hartford. This allows small agents to do business directly with insurance companies and their underwriters, thus enabling the agent to provide faster and more efficient service to the client.

The traditional alternative for a small agent is to go through a wholesale insurance broker, which places the policy with a carrier and splits the commission. Consolidated collects a portion of the premium to cover its overhead, but Tiene said as Consolidated’s members generate more business, their share of the commission grows.

Consolidated’s setup made sense for Bill Scuorzo, the president of BCG Advisors, a nine-person agency in Jersey City.

Founded in 1999 as a benefits broker, BCG began building a commercial insurance business from the ground up in 2008.