How Can A Syndicate Benefit From Chart?

by Glenn W. Clark, CPCU

We belong to an organization of CEOs called Vistage. The group serves as a private peerto- peer advisory board. Earlier this month, we had Ian MacDougall (ian@corplife.com) – an expert on Organizational Lifecycle Stages – address the audience. His presentation focused on three questions:

1. What does it take to make a great company?

2. What are the “trip hazards” or challenges to #1 above?

3. What causes a company to “age”?

The exhibit below shows the life cycle of growing and aging companies. NOTE: in the context of this illustration, aging is a mental – not chronological – concept. Young companies can be prematurely old and more “seasoned” firms can be mentally young.

“At the current churn rate, 75% of the current Fortune 500 Companies will be removed from the Index by 2027” – Ian MacDougall

How would that apply to Coverholders and Risk Takers? Every mentally young business has a driver called “E”. “E” can be defined as the entrepreneurship of the enterprise and requires other “E”s to make ideas happen (energy, execution, exceptionalism). When organizations lose their “E”, it accelerates the aging process. What are the top reasons for the loss of “E”?

1. Satisfaction with how things are today – happy with the status quo.

2. Content with present market share

3. Loss of a true entrepreneur from the ranks.

4. The mental age of key employees has become “old”.

Ex’-change: to give up something of value in order to obtain something of greater value.

Lloyd’s of London is chronologically the oldest insurance marketplace in the world. It is comprised of over ninety Syndicates: some both chronologically and mentally young; others have been around longer but maintained their youthful mentality. One of the BEST ways of maintaining and growing a company’s “E” is to partner with other “E-rich” entities.

Refer back to the Lifecycle exhibit provided earlier. The CHART Exchange has graduated from the “Courtship” stage in 2015 when we held our first Declaration of Interdependence Event last October in Philadelphia PA.

Over three dozen new London program deals were surfaced in those sessions. We thank the 330 Early Adopters who made our “courtship” of London a success.

In 2016 CHART has become a living, breathing infant. We are growing and developing into a full-fledged membership exchange built to give each member a competitive advantage.

Our goal for 2016 is to progress to the Go-Go stage where we become vital partners for like-minded, growing companies and Vitamin “E” to some of the mentally aging firms who seek to reverse that trend.

Syndicates should take the following brief, ten-question quiz to determine if they fit the CHART Exchange model.

CHART EXCHANGE SELF-AUDIT QUESTIONNAIRE DESIGNED FOR LONDON RISK TAKERS

Ask yourself these ten questions. Is your Syndicate:

1. Seeking to develop new sources of business flow, without alienating existing distribution channels?
☐ Yes ☐ No

2. Interested in hearing about new product or program ideas from the originator of the concept – discussed in an open, unfiltered environment?
☐ Yes ☐ No

3. A life-long innovator as opposed to a self-professed expert in the status quo?
☐ Yes ☐ No

4. An adherent to the idea of “Exchange” – that some expenditure of resources or effort is required to obtain a greater return?
☐ Yes ☐ No

5. Willing to leave egos “at the door” and interact with product distributors (agencies) and vendor specialists as equal partners?
☐ Yes ☐ No

6. A “hunter” of new opportunities…as opposed to a “gatherer” of other people’s efforts?
☐ Yes ☐ No

7. A creative deal maker who would prefer to be at the birth of a new idea rather than the “life support” for a losing program?
☐ Yes ☐ No

8. Confident enough to articulate its risk appetites, capabilities, and specializations to an audience of U.S.-domiciled agencies in an interactive forum?
☐ Yes ☐ No

9. Seeking to attend events in the U.S. that are 100% London-centric?
☐ Yes ☐ No

10. Looking to join an organization that guarantees a quantifiable return?
☐ Yes ☐ No

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