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December 2012
Priorities Preserved
By Barbara Fagan

     Long-term vision is woven strongly into the life insurance firm of Barry, Evans, Josephs & Snipes (BEJS). “A life insurance policy is a contract,” says John Barry. “If you think about it, it’s the longest contract that any of our clients will ever enter into.”

     Barry—partner, president and CEO—is the second generation of his family in the firm. His father, Ernest Barry, along with Don Evans, Rick Snipes and Alex Josephs, flipped the traditional business model upside down when they founded the company in 1984.

     “The typical insurance advisory firm out there consisted of a large sales force and a small support staff,” explains partner Clint Crocker, “but the principals of BEJS realized that the idea of buying a life insurance policy and putting it in a safe deposit box to gather dust didn’t work for their clients’ level of sophistication.   Their clients needed ongoing service of their plans, so for every one or two people they had out in the field marketing, they had three or four people in the office dedicated to serving their clients.”

     That founding principle of high level, ongoing service continues today through the leadership of BEJS’ five current partners: John Barry, Clint Crocker, Gerald Applefield, Ernest Barry, and Scott Jones. With close to $5 billion of total insurance in force, BEJS specializes in the unique insurance needs of affluent families, high income executives, and businesses concerned with preparing for business succession or developing select executive benefit plans.

     “Attributes of the affluent marketplace require certain products or specialties that can’t be accessed through the routine insurance firm,” explains Crocker. “We can bring those clients something that’s not ‘off the shelf.’ We specialize in helping families and businesses protect what’s important to them.”

     “Everything is customized,” adds Barry. “We don’t come with a solution looking for a problem. Our tagline is ‘Priorities Preserved.’ We’re relationship-oriented, so we work on understanding the priorities of each client, and we play long-term, so we can fully understand what those needs are.

     “Most insurance agents or brokers take a product they are given and try and sell it, but we have 30 years of experience underwriting the high net worth and executive marketplace, and that knowledge sets us apart and allows us to be innovative.”


Select Membership

     One of those innovations is BEJS’ membership with M Financial Group, an elite financial services company that provides products and services specifically tailored for the affluent market.

     “We know that because of access to better health care, better education, and a better standard of living, the higher net worth market has a better risk profile,” Barry explains. “Information suggests that an investable net worth of $1 million or more starts to show an improvement in mortality rates and that improved risk should translate into better pricing that we could then deliver to our clients.

     “But when we first suggested that to the large insurance companies they laughed at us. The only way the insurance companies would consider doing something like that is if we put our capital at risk, side by side, with theirs. The vehicle through which we invest capital alongside another insurance company is our reinsurance company.”

     Through M Financial Group’s reinsurance platform, which represents $47 billion in face amount and $8 billion in assets under management, BEJS is able to offer clients a differentiated pricing advantage that lowers policy costs and offers better value for that cost. They can also offer M Financial Group proprietary products specifically designed for the high net worth and executive market.

     “The proprietary products we offer are issued by name brand insurance companies like Pacific Life, The Prudential, and John Hancock, but the product you get from those carriers through BEJS is priced differently and better suited to our clients than the product you would get from your local agent,” Barry points out.

     Although the company is licensed to sell insurance in several states and has clients in Texas, Arizona, California, Florida, Illinois and in states along the Northeast corridor, Barry describes BEJS as a “Carolinas company.”


Local Focus

     With three founders from Charlotte and one from Rock Hill, S.C., the firm’s original focus was the Charlotte metro area. In the heyday of Southern textile mills, Barry says the firm “owned the textile mill market” from Anderson, S.C., through Greensboro, N.C. The privately held, multi-generational business model so typical of the textile industry is still a big part of the firms’ core client base.

     “We take tremendous pride in our multi-generational work. Today, we have families where the grandparents, children, and grandchildren are all clients,” says Barry. “That’s very much a part of who we are, but it’s not what we do exclusively.

     With specialized products and services, BEJS can step in when standard employer benefit plans are inadequate to fully protect a high income professional and his or her family. Customized plans can provide additional disability protection or supplement a retirement program.

     And in keeping with their long term vision, BEJS has expanded their focus to include high income professionals.

     “We realize that there is an entire level of professionals who will one day be leaders in their organizations,” explains Barry. “They’re young, bright, articulate, and aggressive, and they are already doing well and working their way up. They may not be high net worth today, but they’re likely to be high net worth tomorrow, and we want to get the message out that they may be able to benefit from our resources and services now and also in the future when their needs change. We fundamentally believe that acorns grow into big trees and want to invest in building relationships with emerging leadership talent.”

     Business succession planning is also a specialty of the firm and one in which expertise is enriched by the company’s own personal experience. “We’ve gone through every type of business transition event possible,” says Barry. “We’ve added partners, had partners retire, and had partners die. We’ve done a reorganization and also a strategic partnership with a public company. We’ve sold to a public company and then bought it back. Having actually gone through those events puts us in a better position to plan for our clients with a great level of empathy.”


Valued Relationships

     And while BEJS can help clients in any one of their specialty areas, they find that their initial work with a client in one area often broadens into other areas. “We may begin by working on executive benefits,” Barry explains, “and that turns into succession planning, which then turns into transfer planning. Or an initial engagement in estate planning turns into executive benefits.

     “We never know where we’ll begin with a client, but we do know that because we are relationship-oriented and play long term, we might be involved in multiple projects with a client over a 20-year relationship. The initial project may be at a superficial level, but as that relationship builds over time, other issues are revealed, and we start to address them as well.”

     “We not only work with clients, we also work very closely with the clients’ other advisors,” adds partner Gerald Applefield. “Whether it’s their accountant, attorney, investment manager, or trust officer, we do tremendous work advocating and supporting the advisory community. Our efforts are collaborative.”

     “Often, a client’s advisors will come to us for help in working through a particular situation,” Barry explains. “Recently, we helped edit a resource book called The Advisor’s Guide to Life Insurance published for the American Bar Association. Providing educational resource to the advisory community in our area of expertise is a part of our culture.”

     “There’s a misconception out there that insurance companies all provide about the same service,” adds Crocker, “but we’ve got a service department you won’t find at other firms. We put a lot of energy and resources into taking care of our existing client base rather than just on acquiring new clients.”

     “We want to make this a pleasing experience for our clients,” says Barry. “That’s why we spend so much money on our staffing and administration team and do so much training. We have really bright people who have the ability to advocate on the client’s behalf.”

     “We can distribute and even assist in manufacturing the product, but we also understand how important it is to properly service the product,” adds Applefield.

     “Back in 2003, there was a regulatory change regarding the tax code for a popular insurance planning concept known as ‘split dollar,’” Barry recalls. “Gerald is known for his work in this area, so we were inundated with calls from attorneys asking for help.

     “The attorneys told us that other agents were ignoring the issue because they weren’t getting paid for it. It was pro bono work, but we felt it was part of building relationships. Because of that, we ended up getting new work, but the point really is taking care of the client even when, sometimes, it’s not transaction-based. It’s a testimony to making the investment in the long-term relationship.”

     Maintaining existing accounts is enhanced by the firm’s customized service process where a firm member sits down with a client in a “shirt sleeves session” to discuss their current situation and what is meaningful to them, ensuring that their needs continue to be met—preserving priorities. The customized service process is complemented by strategic reviews to address specific changes that may affect insurance needs.

     “You can’t buy insurance like you used to,” states Barry. “Somebody needs to monitor that insurance to optimize performance with due consideration to goals and objectives that change over time. Just like you would expect a stock broker to manage your portfolio of securities, our clients can expect us to manage their portfolio of insurance.”


An Honored Role

     But BEJS’ aspirations run even higher than effectively managing a client’s insurance. Barry describes the greatest affirmation of their work as being part of a client’s “inner circle.”

     “In this business,” he says, “there’s always talk of the ‘need moment’ when the unfortunate happens. We are very sensitive to earning the opportunity to be a member of the inner circle in that ‘need moment.’ We believe it’s an honor to be one of those advisors that gets the call.

     “It’s important to be included among a client’s other advisors when that client explains how they wish things to be handled so there’s no confusion when they die. That’s a critical role to play and we value the opportunity to be part of that.

     “It sounds corny,” Barry continues, “but there’s nothing more satisfying than knowing that you did something that made a positive difference in someone’s life. That’s what we call psychic income.”

     BEJS looks at growth differently than most businesses. They mark it with milestones such as when previous partner Ernest Barry Jr. rejoined the firm in 2009 and when Scott Jones, formerly of Executive Financial, became a partner in 2011.

     Last year, the firm’s assistance in making TIAA-CREF a carrier partner of M Financial was another growth milestone. As the firm continues to grow there are plans for the addition of new, younger partners because as Barry proudly states, “One of the founding premises of this company is that the institution would be here to service the client in perpetuity.”

     It’s a foundation based on long-term vision.


Barbara Fagan is a Greater Charlotte Biz freelance writer.
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