History of Pacific Interstate Insurance Brokers (PIIB)

In 1992 five independent agencies in the South Bay area began weekly meetings to address the pressures of company rising volume requirements, profit sharing minimums and general business pressures on their agencies. They were seeking a way to enable their individual agencies to be more successful, not trying to create a profit center in the form of a cluster. They worked on the “PIIB Model” for two years, including visits to key companies for suggestions, and on June 30, 1994 Associated Insurance Brokers, Inc. dba Pacific Interstate Insurance Brokers was incorporated.

The model created by the five founders has remained relatively constant for over 18 years. The corporation was, and still is, owned by affiliated agencies or principals.  The model was created with each affiliate having direct access to companies. This was more efficient for the agencies, less expensive than central marketing while also giving the companies direct access to the agencies.  PIIB would take only 10% of profit sharing at a time when the industry standard was 25%. The cost of affiliation was a flat monthly fee with all direct commissions paid to the agencies, also unusual for clusters.

 In 2001 Larry Manning, a 30-year veteran of Hartford Insurance Group, joined PIIB as Executive Director. Manning brought 16 years experience as a Regional Vice President for Hartford in Fresno, St Louis and Sacramento. His 15 years in Fresno and Sacramento brought a strong knowledge of agencies in California that would benefit from the PIIB model. Over the next two years PIIB grew in premium, number of agencies and geographic diversity. In 2003 Manning was elected President. 

Recognizing the importance of company relationships, the PIIB Board created their company Trade Show held in the spring of each year and the winter Recognition Luncheon featuring awards for outstanding company representatives. These two events were combined to form part of PIIB’s annual convention in 2007. Beginning in 2006 a fall event was added.  

Over 18 years the organization’s success is reflected in increasing the number of affiliates from 5 to over a 125, increasing companies represented from 8 to 35, increasing premium from $12 million to $250 million and, in the last 9 years, having only two agencies voluntarily leave PIIB.  PIIB’s growth, profit and relationship with insurance companies resulted in securing “VIP” designations with Safeco, Travelers, Allied, Hartford and Golden Eagle.