Brown And Brown Inc's Business Segments

Brown & Brown is a diversified insurance agency, wholesale brokerage, insurance programs and service organization with origins dating from 1939 and is headquartered in Daytona Beach, Florida. We market and sell to our customers insurance products and services, primarily in the property, casualty and employee benefits areas. We provide our customers with quality, non-investment insurance contracts, as well as other targeted, customized risk management products and services. As an agent and broker, we do not assume underwriting risks with the exception of the activity in The Wright Insurance Group, LLC (“Wright”), which was acquired in May 2014. Within Wright, we operate a write-your-own flood insurance carrier, Wright National Flood Insurance Company (“WNFIC”), which is a Wright subsidiary. WNFIC’s entire business consists of policies written pursuant to the National Flood Insurance Program (“NFIP”), the program administered by the Federal Emergency Management Agency (“FEMA”) and excess flood insurance policies which are fully reinsured, thereby substantially eliminating WNFIC’s exposure to underwriting risk, as these policies are backed by either FEMA or a reinsurance carrier with an AM Best Company rating of “A” or better.

Brown & Brown Inc. is a prominent provider of insurance products and services across multiple segments. Below is an extensive overview of their operations, specifically detailing their segments, products, and services.

Retail Segment

The Retail Segment of Brown & Brown Inc. consists of a variety of insurance products and comprehensive services tailored for a diverse clientele including commercial enterprises, public entities, professionals, and individuals. Their offerings can be classified into several key categories:

1. Property Insurance: This coverage protects against physical damage to buildings and property, addressing potential interruptions to business or additional expenses arising from unforeseen events such as fire, windstorm, or other risks.

2. Casualty Insurance: This includes legal liability coverage, cyber liability, workers’ compensation, and both commercial and private passenger automobile insurance. It also encompasses fidelity and surety bonds.

3. Life and Health Insurance: Brown & Brown provides group and individual insurance options, including life, accident, disability, health, hospitalization, medical, and dental insurance, as well as other ancillary products.

4. Related Services: They offer extensive risk management services which consist of loss control surveys, analysis, consultation for insurance placements, and claims processing.

The retail operations are diversified such that no significant percentage of revenue comes from a single client, ensuring resilience across their customer base.

National Programs Segment

The National Programs Segment partners with over 40 reputable insurance carriers, providing over 50 specialized programs which fall within five broad categories:

1. Professional Programs: These programs deliver professional liability and related packages specifically designed for various professional groups including healthcare providers, legal professionals, accountants, and real estate agents. The aim is to address their unique risks and coverage requirements.

- Healthcare Professionals: Offerings include the Allied Protector Plan® (APP®) for healthcare practitioners, providing customized liability and business insurance, inclusive of data breach insurance.
- Certified Public Accountants (CPAs): The CPA Protector Plan® caters to CPAs with tailored liability insurance and risk management services.
- Dentists: The Professional Protector Plan® (PPP®) for Dentists provides a suite of insurance products specially crafted for dental professionals.
- Financial Professionals: Coverage solutions for agents, financial advisors, and others in the fiscal sector, along with claim handling services.
- Lawyers: The Lawyer’s Protector Plan® (LPP®) focuses on law firms with a tailored approach to professional liability.

2. Arrowhead Insurance Programs: Arrowhead functions as an MGA, offering innovative product development, underwriting, marketing, and claims administration for various commercial sectors.

3. Commercial Programs: This section includes specialized insurance products marketed to distinct industries, addressing the particular needs of sectors like construction, food service, and non-profit entities.

4. Public Entity-Related Programs: This service administers tailored insurance trusts for governmental entities, offering coverage solutions designed for municipalities, counties, and special taxing districts.

5. National Flood Program: Operated through a subsidiary, this program provides flood insurance policies in alignment with FEMA regulations.

Wholesale Brokerage Segment

The Wholesale Brokerage Segment specializes in marketing excess and surplus lines of insurance primarily aimed at retail agencies, covering a range of products such as:

- Personal Lines: Homeowners insurance, yacht insurance, and private passenger automobile coverage.
- Commercial Lines: Covers diverse needs including general liability, commercial property, and automobile insurance, particularly for hard-to-insure risks.
- Excess Coverage: Providing additional layers of coverage for liability and workers’ compensation.

The segment engages with various U.S. and U.K. surplus lines insurance companies, along with serving as a correspondent for Lloyd’s of London.

Services Segment

Brown & Browns Services Segment represents a suite of specialized services linked to the insurance sector, designed to support both individuals and companies. It includes:

1. The Advocator Group: Assists individuals seeking Social Security Disability coverage and provides health plan selection support for Medicare beneficiaries.

2. American Claims Management (ACM): Offers comprehensive third-party administration services, including claims adjusting, litigation, and managed care for both commercial and personal insurance lines.

3. Colonial Claims: Focuses on multi-line claims adjusting services, particularly in handling specialty loss claims like catastrophic and flood events.

4. ICA: Provides claims management solutions, including vendor management, daily claims services, and training for independent adjusters.

5. Specialty Services: These include Medicare Secondary Payer compliance services and claims administration for governmental entities through subsidiaries like Preferred Governmental Claims Solutions (PGCS) and USIS.

This detailed segmentation of Brown & Brown Inc.s products and services showcases the companys capacity to meet a diverse array of insurance needs across multiple market sectors. Their commitment to customized solutions and specialized programs facilitates effective risk management and financial protection for their clients.