Futurity First pursues middle-market niche

The January opening of a Futurity First Insurance Group branch in Springfield marks another step in the Rocky Hill, Conn., company's goal for rapid expansion in the next five years.

The insurance group, launched in January 2008, already has 24 branches, said Edward Berube, president and CEO, with plans to have 150 branches nationwide within five years.

Launched with $100 million in capital from New York-based private equity firm Aquiline Capital Partners, Futurity First offers life and health insurance and annuities. When the Springfield office opened, the company had 32 branch offices, but Berube said some "right-sizing" trimmed down that number. Still, he said the company's startup has been rapid.

"We've grown much faster than our original business plan had projected. It's been exciting," he said.

The company offers plans from 12 insurance carriers that are rated by A.M. Best Company as A- or better, primarily for small businesses and middle-income families.

"For me, I felt that the opportunity in the insurance business was the middle market," said Berube, who has been in insurance for 34 years and previously served as CEO and president of Bankers Life and Casualty in Chicago.

"The middle market is far and away the underserved, underinsured marketplace. We felt there was a real opportunity; if we could build the right kind of career agency operation, we could get to that market," Berube added.

By using a career agency approach, the company is building its business on the idea that on-staff career agents in brick-and-mortar institutions can better serve its target market.

"We have what many people would call a contrarian strategy," Berube said. "Most insurance distribution wants to go independent, and we're building a career operation."

Cody Webster, branch manager of the Springfield office, 2422 E. Madrid St., calls the arrangement unique for the industry as agents are offered health benefits and a 401(k) plan.

Webster, a southwest Missouri native and eight-year veteran of the insurance industry who previously managed United American Liberty's Springfield, Ill., branch, said Futurity also offers extensive agent support and training.

Because of the vagaries involved in life and health insurance, Berube said themiddle market isn't well-served by Internet operations, making agent training important.

"A good agent is critically important in the middle market to explain the options available to people, to help them better understand their needs, to provide them with various ways they can protect themselves," he added.

And, he said, it's a market that is best served by independent, career agents who aren't limited to or required to sell a certain company's policy.

Futurity First offers coverage through UnitedHealth Group, Mutual of Omaha, Integrity Life Insurance Co., Assurant Health, Genworth Financial, Ameritas Group, ING, Starmark, John Hancock, Humana, Lincoln Financial Group and Colonial Life.

Springfield agent Fran Moncada views that variety as a significant advantage for him and for his clients.

"I'm shopping for my customers and listening to what their needs are, versus (having) just one product I need to sell them," Moncada said.

Webster said that given Futurity First's goal of serving middle-income families, business owners and seniors, opening a branch in Springfield made sense.

During a site visit, corporate leaders "just absolutely loved everything about it - the population, the middle-income America that it absolutely serves," he added.

While the demographics of the region are in line with the market Futurity First is pursuing, that wasn't the only consideration for opening a branch in Springfield, Berube noted.

"It's much more about the quality andthe talent of the manager and the agents that he or she brings on board than demographics," Berube said. Futurity First has18 agents in Springfield, and Berube said he's very pleased by the branch's work so far.

Webster said the branch's goals are straightforward: Increase clientele and local profitability.

"It's a grass-roots approach. If we work one client at a time, everything else that we need will (happen) in the long run," he said.