Acuity bursts the insurance industry`s buttoned

Acuity bursts the insurance
industry’s buttoned-down image
By MaryBeth Matzek
Photographs by Shane Van Boxtel, Image Studios
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Acuity CEO Ben Salzmann says
innovation and discipline are
keys to the company’s success.
lbert Einstein may have famously
asked, “If a cluttered desk signs a
cluttered mind, of what, then is
an empty desk a sign” of? In Ben
Salzmann’s case, it’s the sign of a
creative, innovative man looking to
shake up the insurance industry.
Salzmann’s desk is scary clean. “If someone gives me
something to look at, I get right through it and return it as
quickly as possible,” says the president and CEO of Acuity, a
Sheboygan-based firm covering 20 states.
But that doesn’t mean Salzmann’s office is empty – its
shelves are filled with books, annual reports and other
documents that he’s able to quickly find. “Innovation and
discipline are keys to our company’s success and it drives us
to continually get better.”
That drive is paying off. Acuity’s sales premium increased
8.1 percent to $63 million in 2011 and its combined ratio –
which is comprised of the claims ratio and the expense ratio
— was 9.5 points more profitable than the industry. Earlier
this year, the company announced plans to hire 50 new
employees at its headquarters and throughout the 20 states
where it does business.
Those new employees will join what is recognized as one
of the best places to work in the country. Acuity has won
numerous national awards, including Entrepreneur’s Great
Place to Work 2011 Best Medium Workplace Award.
“And that’s against everyone … even some software
companies where they have all of these different things
going on, like riding a scooter through the office. That we’re
Making a mark
In addition to being known for selling insurance, Acuity
has also garnered attention for its annual reports. Forget
your typical white paperbound book and instead think of
storybooks, boxes of chocolates or a record album.
“I like to keep it fresh,” says President and CEO Ben
Salzmann, who comes up with the different ideas himself
(sometimes based on ideas from his wife) with DuFour
Advertising of Sheboygan.
The storybook annual report – which looks like a
pop-up book – received a CLIO Awards 2011 Design
Short List mention and is now a permanent part of the
rare books section of the Cooper-Hewitt collection at the
Smithsonian Library. DuFour even put together a website
at http://makingofapopup.com showing how the unique
report came together.
Last year’s annual report came with a box of chocolates
celebrating “how sweet it is” to do business with Acuity.
As to what the insurer has in store for this year’s annual
report? You’ll have to just wait and see.
20 | Insight • J u n e 2 012 Industry leader
Here’s a look at how Acuity compares to insurance industry
averages in several key areas:
Combined ratio (below 100 is ideal) 2011 Long-term average
Acuity
99.6%95.8%
Industry
109.1%103.8%
Sales growth
Acuity
Industry
2011 Long-term average
8.1%10.6%
3.2%3.8%
Surplus growth
Acuity
Industry
2011 Long-term average
9.2%14.4%
-1.4%5.4%
Source: Conning Research
“One main difference is
that we educate our people.
No other carrier in the
country has provided
more continuing education
credits to its agents.”
Wally Waldhart, vice president of sales and communication
able to compete against that and come out ahead really says
something,” says Wendy Schuler, vice president of finance.
Setting and Raising the Bar
ebster’s dictionary defines the word acuity as
“sharpness or keenness of thought, vision or
hearing,” which is what company leaders were
looking for when they changed its name from
Heritage Mutual Company in 2001.
And it’s something that’s played out every day at the
property and casualty insurer.
“We drive innovation into everything we do,” Salzmann says.
w w w. i n s i g h t o n b u s i n e s s . c o m
Acuity’s annual reports are an
example of the company’s style
– one report was an awardwinning pop-up storybook.
Whether it’s developing new products, embracing
technology, redefining workplace communication or
figuring out new ways to ensure employees and agents feel
valued, Acuity does what it can to set itself apart from the
competition. And that competition is fierce. Not only does it
compete against traditional national firms such as State Farm
Insurance and Liberty Mutual Insurance, it also competes
against Internet upstarts such as Geico and Progressive. Then
there are smaller, regional firms like West Bend Insurance or
Secura Insurance.
Salzmann says Acuity has an advantage over firms
like Progressive, which only focus on one product – auto
insurance – while the Sheboygan firm can provide a full
line of products for both individuals and businesses from
auto, home and life coverage to workers' compensation and
liability insurance for businesses.
Besides competing for customers, there’s also intense
competition for agents to sell their product. In insurance,
some agents work exclusively for a nationwide company,
such as American Family Insurance, which is based in
Madison, while others are independent agents and can offer
customers products from a wide portfolio of insurers. Acuity
falls into this second category.
Communication – especially with its 5,000
[continued ] »
w w w. i n s i g h t o n b u s i n e s s . c o m Insurance cluster
Look around the New North and you’ll find it’s home to
several insurance organizations, including Acuity, Secura
Insurance and Integrity Insurance in Appleton, Jewelers
Mutual Insurance in Neenah and Society Insurance in
Fond du Lac. There are also several insurance companies
in the region with hundreds of employees including
Guardian in Appleton and Humana in Green Bay, not to
mention financial organizations like Thrivent Financial for
Lutherans who employ workers with some of the same
skills, like actuaries.
To help area companies better train current and future
employees, the University of Wisconsin-Oshkosh launched
an insurance major inside its College of Business where
coursework centers on insurance and risk management,
networking with professionals, and preparation for
various certifications, including the Chartered Property
Casualty Underwriter (CPCU).
With Acuity looking to hire at least 50 people at its
Sheboygan headquarters within the next year, programs
like that at UW-Oshkosh and other area colleges to help
train employees are crucial, says President and CEO Ben
Salzmann.
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agents – is an integral part of the company’s success,
says Wally Waldhart, Acuity’s vice president of sales and
communication. Twice a year, top company leaders go out
and meet with agents across the country to answer questions
and to educate them not only about what’s happening with
Acuity but with the insurance industry in general.
“One main difference is that we educate our people. No
other carrier in the country has provided more continuing
education credits to its agents,” Waldhart says. “We also
provide stability to agents. Today, so many carriers have
merged, gone out of business or dropped lines and agents
Acuity
Headquarters: Sheboygan
What they do: Sell property and casualty insurance to
both commercial and personal customers across 20 states
Employees: 850 (including about 600 at the Sheboygan
headquarters)
Assets under management: $2.5 billion
2011 written premium: $63 million
2011 revenue: $840 million
Website: www.acuity.com
Year Founded: 1925
“We focus on writing the
best business and year after
year, that sinks in and you
continue to grow.”
Wally Waldhart, vice president of sales and communication
spend a lot of unproductive resources moving their books
of business.”
Since 1982, Dave Ademino has sold Acuity products and
says the company delivers on its promises something he –
and his customers – appreciate. There’s something else that
sets the company apart: they are fun, he adds.
“Their marketing really sets them apart. Insurance is such
a buttoned-down industry, but they come up with these great
annual reports and promotions – like last year we received
a box of chocolates – that helps break through the shell that
insurance is this boring industry,” says Ademino, who owns
Ademino & Associates in Kimberly.
Besides the fun, Acuity invests heavily in technology,
which Ademino says helps him better serve his clients by
Acuity’s headquarters features a
fitness center, café and … torture
chamber. The small room houses a
“rack” and promotional materials.
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 online: Click to see a video of Ben Salzmann discuss
Acuity's business practices and style.
offering the latest technology that keeps him up-to-date
on customers and any claims they may have. “They are
an extremely well-run company and help me provide my
customers with a great product.”
Acuity received 53 technology awards from ACORD
(Association for Cooperative Operations Research and
Development) during the past 12 years as well as being
named one of the Information Week Best 100 Technology
Companies for the past eight years in a row.
Ademino also appreciates the annual education programs
to help stay updated on the latest industry trends. By the way,
all Acuity employees receive the same information given to
agents and company leaders often have town hall meetings or
lunches with groups of different employees to make sure the
communication keeps flowing.
Waldhart says Acuity also differs in the way it does
business by understanding that its sales support its
underwriting – not the other way around. “We don’t go
out there with any stated growth goals to our underwriters
because they are then forced to make some not-so-good
decisions,” he says.
For Salzmann, making good, solid decisions is integral
in what he does every day. During the recent economic
downturn, he was able to keep Acuity going – and growing –
through discipline and following its underwriting guidelines.
That also includes empowering Acuity underwriters to “just
say no” to unacceptable risks, Schuler says.
“We focus on writing the best business and year after
year, that sinks in and you continue to grow,” he says. “If
you’re writing something just to write something, that’s not
going to work. We succeeded because of Ben’s vision and
sticking to it.”
In 2011, new state expansion generated $200 million in income.
“By staying true to our mission, we now see a huge
potential to grow,” Salzmann continues. “Not only are we
growing thanks to the economy, but we are also growing
w w w. i n s i g h t o n b u s i n e s s . c o m our footprint and expanding into more states. I think it says
something that we were able to keep at it and grow in this
kind of economy without growing into new states. Now,
think what will happen as we move into new states. The
potential there is huge.”
While Acuity plans to hire 50 people initially, Salzmann
thinks that could just be the tip of the iceberg. First up is the
addition of underwriters and processors and once they bring
new business online, there will be the need for additional
help in claims. And then eventually the need for business
support employees.
“It will be measured, well-planned growth,” he says.
The place to be
uring the economic slowdown, the company
never did layoffs, kept giving raises and made
401(k) contributions. That kind of dedication
along with a whimsical air – for example there
have been special employee activities such as bringing in a
mechanical bull, creating personalized Wheaties boxes for
employees or encouraging employees to roller skate around
the spacious headquarters – helped the company receive
multiple workplace honors.
In addition to winning the Entrepreneur Great Place to
Work Award as the best middle-sized employer for the past
two years – it has also been among the top five each of the
past eight years – Acuity received a top 20 employer award
from AARP for the past six years and a Top 10 Leadership
Development Award from Executive Excellence Publishing
for the past two years.
The more than 600 employees in Sheboygan work in an
expansive 400,000-square-foot building that sits on 100 acres
of land just off Interstate 43 (Acuity has about 200 employees
who work off-site in their own homes or at regional offices).
In addition to traditional corporate headquarter amenities,
such as an onsite fitness center (with free massages) and café,
there’s also a torture chamber. Yes, a torture chamber. After
a visit to Europe, Salzmann was inspired to create a small
room filled with a couple of chains, a replica of the “rack” and
plenty of promotional materials. He jokes that it’s “torture”
for employees to go in and get items such as hats, golf shirts
and more to give to clients. “It also definitely serves as a
talking point,” he says.
The light-filled building is full of stunning artwork,
including seven hand-blown glass starbursts by artist Robert
Kuster suspended from all three galleria ceilings. The
collection is called “The Seven Sisters” after the Pleiades star
collection in the Taurus constellation.
“At the end of the day, it’s just a place you feel good about
working at,” says Schuler.
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