SYNERGY SUCCEEDS AT COMMUNITY BANK-OWNED AGENCY

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1 SPECIALTY LINES: VACANT BUILDINGS COVERAGE MARKETING: TOOLS FOR SERVING THE MANUFACTURING SECTOR TECHNOLOGY: ONLINE EFFICIENCY FOR SMALL COMMERCIAL RISKS BENEFITS AGENCY: FREQUENT CLIENT CONTACT & EDUCATION SPURS GROWTH PROPERTY & CASUALTY AGENTS AGENCY MARKETING INSURANCE MARKETS NEW PRODUCTS AUGUST 2013 MARKETING AGENCY OF THE MONTH: SYNERGY SUCCEEDS AT COMMUNITY BANK-OWNED AGENCY ALSO: OPPORTUNITIES IN THE AVIATION MARKET

2 MARKETING AGENCY OF THE MONTH THE POWER OF PARTNERSHIP Internal referrals are a big part of this bank-owned agency s success

3 Photography by Paul B Riley Members of the Tompkins Insurance senior leadership team include (from left): Tim Spezzano, Vice President, Personal Insurance-NY; Don Herman, CFO & Treasurer; David Boyce, President & CEO; and Suzanne Winkelman, Vice President, Operations. By Dennis H. Pillsbury has been nothing less than an outstanding move for our employees. That s the way David Boyce, president & CEO of Tompkins Insurance Agencies, Inc., Batavia, New York, This describes what has occurred since the acquisition of the agency by Tompkins Financial Corp., a financial services holding company, on January 1, At the time, the agency had about $3.4 million in revenue and was operating only in western New York State. David had already been with the agency 14 years at that point. He followed his father into the agency. Tompkins Insurance Agencies had an excellent reputation within its marketing footprint. It had been serving the area for more than 100 years, tracing its roots back to However, the agency was facing some perpetuation issues and started looking for a solution. David s family was friends with the CEO of a local bank holding company, which had recently been acquired by Tompkins Financial and was interested in acquiring an insurance agency. At that time, Dave s agency and a fellow member of a cluster group came together to form Tompkins Insurance Agencies. They all saw a good fit and reached an agreement that Tompkins Insurance would become part of Tompkins Financial. Since then, the agency has expanded both financially and geographically, now boasting 26 offices throughout New York State and southeastern Pennsylvania. Revenues have grown to $28 million, boosted by 12 acquisitions and strong organic growth. About 75% of that growth has come from acquisitions, while 25% is from organic growth, David points out. Tompkins Insurance Agencies employs 170 insurance people and they are what makes it go. Our people truly are our differentiator, David maintains. Reprinted from the August 2013 issue of Rough Notes Magazine We have the horsepower of a larger regional agency combined with the local staff that wants to serve its community of any size. David Boyce

4 Opportunities abound What has made this so special is the fact that we can bring young people into our organization and give them a career path, says David. Before the acquisition, the career paths were limited. We didn t have the plethora of opportunities available to offer our people that we now have, he continues. We bring college graduates into our organization and usually start them out in our care center where they learn to help some of our 32,000 personal lines clients. These young professionals service our clients and, at the same time, start to get a feel for where they would like to wind up within the organization, David says. As part of this process, we provide, on average, about 50 hours of training a year for each staff member. And this is not geared just toward meeting continuing education requirements; its primary goal is to give each person the opportunity to advance. Some of our college grads have moved into marketing or IT. In fact, they can be found in a whole lot of places some remaining in insurance and others moving into banking opportunities. One of the most important areas is claims. We have a dedicated claims team that includes some of our most dedicated professionals, David says proudly. Their goal, working alongside our risk assessment and management people, is to help clients prevent claims, but when one does happen, it s all hands on deck. The service we provide takes into account that claims don t always happen during business hours, so we re available 24/7. In fact, we had a large fire last fall that occurred at 2 a.m. We had three people on site soon after we received the call. They were there from the very start, taking the lead for our customer during a very emotional time. They immediately started making contact with the insurance companies involved so the claim could be processed as quickly and efficiently as possible. Our claims people know their counterparts at the insurance companies, as well as the insurance adjusters, and have developed an important rapport with them. They know what it takes to make certain that our claims make it to the top of the pile by immediately providing the type of information the insurance company claims people want and need to properly process the claim. A balanced revenue stream While the agency insures more than 32,000 personal lines clients, this Employees use the Tompkins Insurance training room to keep current with their insurance skills and knowledge. The agency consistently exceeds state-mandated continuing education requirements.

5 Above: Members of the Wyomissing (PA) team include (from left): Stephen Brunner, Vice President; Tracy Burns, Supervisor-Western PA; Michael Herr, Executive Vice President-PA; David Greif, Senior Vice President; Samuel Harter, Vice President; and Rhonda Mayer, Account Executive. At right; Members of the Blue Bell (PA) team include (front, from left): Jeannette Russell, Account Executive; Amy Ellison, Assistant Vice President; and Suzy Gordon, Supervisor-Eastern PA. In the back are (from left): Michael Bove, Vice President, Personal Insurance-PA; and James Turner, Senior Vice President. At left: Members of the Central New York Region team are (front, from left): Karen Besemer, Assistant Vice President/Employee Benefits Specialist; Melissa Ellenson, Claims Coordinator; and Tammi Rhodes, Claims Supervisor-CNY. At rear (from left) are: Jeanne Prill, Commercial and Personal Lines Supervisor-CNY; Neil Olver, Senior Vice President; Lisa Olver, Commercial Lines Account Manager; and Mark Kreydt, Executive Vice President-CNY. still represents the smallest percentage of total revenue with 29%; commercial lines business accounts for 39% and benefits for 32%. So even though many new hires start out by providing service to the personal lines clients, there are plenty of opportunities to move into commercial lines or benefits. In fact, the agency provides a host of benefits services free of charge that has proven to be an attractive opportunity for some of its people. These services include HR consulting, COBRA administration and wellness consulting. We pride ourselves on being creative in this arena by providing clients with a complete portfolio of voluntary benefits as well as the more traditional life and health products, David points out. We can help our clients establish flexible spending accounts or health reimbursement accounts or health savings accounts through our sister banks that will coordinate with their health insurance program. Our ultimate goal is to create a program that meets our clients needs, while fitting into their budget, by using every possible method to control costs. In commercial lines, the agency primarily plays in the middle market. We try to stay in areas where we belong, David says. Along the way, we have developed an expertise in certain areas and have deep penetration in niches like contractors, municipalities and schools. Why it works We ve all seen too many examples of bank and insurance agency combinations producing less than optimal results for both parties. The hoped-for synergy just did not emerge. So what makes this combination so different that the agency has such a glowing report of its success? One of the key ingredients in our success, David points out, is the fact that we are affiliated with a community bank, so we really started out on

6 Members of the Joint Opportunities Committee bring their Road Show to the Bank of Castile branch in Batavia, New York. Members of the branch staff (at left) engage in a lively, interactive and information-sharing session with (from left): Maureen Pilato, Wealth Advisor; Greg Knicley, Vice President, Commercial Insurance; and Bob Bennett, Vice President, Business Development Officer. the same page when it came to getting involved in the community and really giving back to the communities we serve to show how grateful we are for their support. Our banking, wealth management and insurance employees are all involved in the communities where they live and work. We re part of Brownies and Scouts and the Chambers of Commerce and so on. So the culture of each organization was certainly in synch in that regard. Another reason, he continues, is that we work constantly on developing relationships among all members of our Tompkins Financial family. All told, we employ around 1,100 people and we want them to all to play for the acorn and leaf (the corporation s logo) and to feel like key components in our overall success. To help with that process, we established a Joint Opportunities Committee that is composed of insurance, banking and wealth management people. The committee meets regularly, planning a number of social events designed to build personal relationships among the employees of all affiliates. People have to feel comfortable with each other before they can really work together well, David observes. That committee goes door to door to educate all staff on what our sister companies do. They travel to each of our locations to bring that message to every employee. The employees learn who is best equipped to handle each type of business opportunity. They also bring with them the message that we make referrals to our sister companies because it is in the best interest of our mutual clients. Referrals benefit our clients, which in turn, helps our organization grow and prosper. A portion of our new business comes from those referrals, David says. The power of partnership has become a key part of the DNA of our company. The company also sponsors social events for employees to get together and learn about what each person does in a more informal setting. These range from bowling functions to beanbag tourneys to family ski days. We have a unique blend of being the same entity in all areas, David notes, and very local at the same time. We re Tompkins Insurance at every one of our locations and offer the same great service at each one of them supplemented by the expertise we are able to have in-house because of our size. So we have the horsepower of a larger regional agency combined with the local staff that wants to serve its community of any size. Summing up When I look back to what it used to be and what we are now, David concludes, I am both amazed and pleased that we have been able to maintain our values to place clients first, while maintaining a workplace where employees are glad to come to work. Change is a constant in our business and positive change is a sign of life and invigoration. And this really has been a very positive change. I see a lot of agencies where the average age of its employees is pretty high. Here, our average age is approximately 46 years old. We re in a different world where 24/7 is a whole lot different from what it was when my dad ran his agency. He was a 24/7 guy and was always there for his clients within a reasonable amount of time. Today, that reasonable amount of time has shrunk to the point where people expect almost instantaneous response to their requests. Thanks to the depth of staff that we have and our commitment to effective automation, we are able to respond to those expectations. We have capitalized on those areas where synergies exist with our financial services affiliates and have worked hard to instill the power of partnership within our organization. And while we are so integrally connected to our bank partners, our leadership team strives to ensure that we remain a successful independent insurance agency, David says. I am convinced we are living up to this goal. We have grown considerably, and it s certainly a different world, but one where there remain important constants like commitment to community and commitment to professionalism. Rough Notes is proud to recognize Tompkins Insurance Agencies as our Marketing Agency of the Month. The agency shows how it is possible to deal with change in a positive and effective manner, while remaining true to the core values that have made the independent agency system the marketing system of choice for the property/casualty insurance industry.n