Each month, LuxeSF.com profiles a member of The Luxury Marketing Council of San Francisco. This month we talk with Wendy Morrison, Vice President and Manager of the San Francisco office of Hub International, one of the nation's leading insurance brokerage firms and a familiar player in the luxury sector which demands special treatment and hands-on nurturing for its insurance needs.

LUXESF: Can you give me some dimension on the San Francisco office?

MORRISON: We're a dominant player in the personal insurance business…one of the top three in the brokerage businesses in the Bay Area.

LUXESF: Give us the brief overview on Hub International. Who are you and what do you do?

MORRISON: Hub International is one of the country's top 10 insurance brokers offering commercial and personal property casualty insurance, life insurance and employee benefit products. What began in Canada with the merger of that country's five largest brokers eight years ago, expanded to the States five years ago and, as a result of aggressive acquisitions of key insurance brokerage firms across the country, Hub has established a notable national presence. This tremendous growth is reflected in the 18 "Hubs" operating in the U.S. and Canada encompassing 206 offices and 3,400 employees. 600 employees are dedicated to personal property casualty insurance and Hub's Private Client Advisors is the specialty practice within the Personal Insurance Division that focuses on the needs of the affluent. The primary strength and expertise in the San Francisco office involves the placement and management of personal insurance including homeowners for single or multiple residences, regular and collector vehicles, yachts and other watercraft, liability coverage, jewelry, fine arts, earthquake insurance, flood insurance, and numerous specialty coverages. We have a particular expertise understanding and mitigating the complex risks that high, net-worth individuals and affluent families face.

LUXESF: Your association with the luxury marketing Council is in partnership with Chubb. Tell us about Chubb.

MORRISON: Chubb in a highly regarded insurance company that has developed insurance products and services addressing the unique needs of the affluent personal insurance market. They have been exclusively focused on this niche since the early 1980s, longer than any other insurance company. They provide personal insurance to more than 60% of the Forbes 400 wealthiest people in the United States , they insure the art collections of 60% of the top 200 collectors as listed in ARTnews, and have three times been named "Best Homeowner Carrier" by Worth Magazine. In the affluent personal insurance market, there are few companies that can truly address the myriad needs of the affluent: Chubb has earned a trusted name in this unique market segment.

LUXESF: Let's move on to the luxury marketplace. Why has Hub decided to go after that business?

MORRISON: Quite simply, they need us. The affluent market is currently underserved. Nearly 50% of the affluent insurance buyers are with a 'direct writer.' A direct writer is a carrier you access directly, not through a broker. The direct writers focus on the middle market and clearly don't have the breadth of services and products required by people with significant assets. As the client's insurable assets and wealth grow, they typically outgrow the coverages offered by these carriers. Hub has the capability and capacity to offer insurance solutions to all segments of the personal insurance market and the breadth of our product offerings, the depth of our risk management knowledge and the dedicated resources Hub puts toward the high-end buyer, makes Hub's Private Client Advisor Group a perfect fit for the luxury marketplace.

LUXESF: We have some understanding of how luxury consumers buy real estate, autos and retail products. Are there any interesting insights into their behavior when they're buying high-end insurance?

MORRISON: They want service, and freedom of choice, it's a lifestyle that the high net worth individuals have come to know and the freedom to choose something they value. They want to be educated, not 'sold,' so that they can make informed decisions about the types of risks they need to insure. They want solutions to their problems. We provide solutions.

LUXESF: Is cost an issue with this sector?

MORRISON: Premium is always a consideration, as are the products, services, and solutions that drive the decision making process for this sector. Cost and value are balanced and tailored to individual needs. We endeavor to allocate insurance premiums in the most effective way possible; striving for the best program at the best price.

LUXESF: But they can get those same products anywhere, can't they? What's the point-of-difference between Hub and another broker?

MORRISON: The real differentiator between Hub and other brokers is the quality of service and breadth of specialty expertise that we offer. Each client is provided a seasoned and dedicated insurance professional assigned to manage the account, not just service it. Managing an account goes beyond facilitating the standard vehicle change or jewelry addition. We take a holistic view of the exposure to loss or risk that our clients face to assure that all their bases are covered. For example, a family that employs domestic help becomes exposed to employment-related suits just like a business. These can revolve around issues of wrongful termination, discrimination, harassment, failure to promote, etc. Our job is to inform clients of this potential exposure to loss and educate them about ways to mitigate and insure this risk. Part of our job, as risk management professionals, involves recognizing situations that put clients at risk for loss and providing thoughtful strategic remedies.

LUXESF: Let me play cynic for a moment. I have property and casualty insurance as well as other personal lines. I never hear from my agent. The only agents I hear from are the people who want to sell me more life insurance every year. I would suspect that that's the experience of a lot of people out there. Where does Hub differ?

MORRISON: Our success is built on the value proposition of best-in-class service. Clients serviced by the Private Client Advisor group receive a risk analysis resulting in customized insurance programs and products. The ongoing effectiveness of the insurance program is monitored in a couple of ways. We have implemented an annual review process that includes a critical review of the insurance cover and program effectiveness taking into account clients' changing needs and lifestyles as well as industry or carrier changes. The account managers, who conduct these annual reviews work with the client to uncover additional or diminished exposure to risk, determine whether an insurance coverage or insurance carrier change is needed and then facilitate changes as required. Typically we'll try to schedule an appointment with the client to discuss the review face-to-face which provides a wonderful opportunity to stay connected.

LUXESF: For the luxury sector, what do you think is the primary factor that induces them to buy from, or do business with, a particular company or broker?

MORRISON: The fulfillment of their service expectations. They expect high-end service. They expect an annual review. They want access to experts such as Hub's Fine Arts Specialist, our Equine Specialist or our Aviation experts. What we found with the affluent market is that they do want to be educated and they want to understand the products and the process, because they have more at stake and they want to make sure that their assets are protected from loss.

LUXESF: How much of your business is a relationship business?

MORRISON: Our business success in the luxury sector is built on relationships with advisors who trust us to do the best job for their clients as well as referrals from highly satisfied customers.

LUXESF: In Personal Lines coverage, what are the major items that the luxury consumer insures?

MORRISON: Major items include, of course, a significant home (or homes), luxury and collectible vehicles, aircraft, yachts and other watercraft including boats and jet skis, Fine Arts and collectables or valuable items such as antiques, jewelry, furs and wine collections. But of course the most important coverage of all for the affluent is liability insurance in adequate amounts to protect their net worth from loss due to lawsuits arising out of negligence causing bodily harm, property damage or reputational injury.

LUXESF: Without giving secrets away, what's your primary marketing strategy?

MORRISON: Building relationships with those who have access to target clients ... networking as we're doing with The Luxury Marketing Council. The types of businesses we want to partner with are those that focus on the growth and preservation of assets in the high net worth marketplace: top financial advisors, luxury real estate agents, high-end mortgage brokers, luxury car dealers and the like. Understandably there may be some reluctance to refer one's high-end client to another service provider for the obvious reasons. So, I think it's very important to do the networking and really get to know potential business partners.

LUXESF:The luxury marketing Council, how did you find out about it and why did you join?

MORRISON: I found out about it from our business partners at Mellon Bank who thought this organization might be a good fit for Hub San Francisco. We look for partners that provide similar value proposition and share that value. For example, we've recently partnered with one of the local real estate agents we met through the Luxury Marketing Council. We look for professionals whose focus is similar to ours. We want to make our clients lives easier by provding value, solutions, and the right to choose and succeed by transferring the worry to us in our area of expertise.