Insurance CEO Is Selling Teamwork

March 24--Thomas P. Nerney runs his insurance company much the same way he coaches basketball teams.

Recruitment and training are top priorities, and employees are expected to be team players.

"Individualism is huge in the insurance business," he said Friday at the University of Mary Washington's 2012 Executive-in-Residence Breakfast Program. "I knew I didn't want to do that."

About 100 regional business leaders and community member attended the event, which was held at the Jepson Alumni Executive Center. John F. Chappell, former chairman of worldwide pharmaceuticals for SmithKline Beecham, was moderator.

Nerney, who once considered making basktball coaching his career, is the chief executive officer of United States Liability Insurance Group, an A++ rated company that's part of Berkshire Hathaway. It specializes in underwriting low-premium, low-hazard specialty insurance products for small businesses.

USLI has 700 employees, but no human resources department. Instead, the entire staff is taught how to recruit potential employees, who then undergo eight lengthy interviews before a decision is made about hiring them. The last interview is with Nerney.

The idea, he said, is to find people who can work together cohesively. If someone becomes a problem, the person who recommended him is the first one to step in and deal with the situation.

"We have a 96 to 98 percent retention rate," Nerney said. "I attribute that to recruitment rather than [our corporate] culture. We try to get people who will fit our culture."

USLI is also an in-house "People's College" for employees, providing training in 15 areas of competency. It takes 21/2 years to complete training in one area, and employees are given a mentor when they finish.

"Four or five years later, they're in that role and embedded," Nerney said.

A graduate of Cabrini College near Philadelphia, Nerney began his career as a basketball coach but soon realized he needed to go into a field where he could make more money. He accepted an offer to work for Philadelphia Insurance Cos., where he stayed for 18 years. He ended up as president and CEO, then left to get his Ph.D. and coach.

"That lasted two weeks," he said.

Nerney was asked to head United States Liability Insurance Group in 1996. The culture he found there was so bad, he said, that some people were asleep in their cubicles. He knew he wanted to wake up the firm by starting his own corporate culture instead of following the game plan of his former business.

"I thought, 'I'm not going with muscle memory. I'm not going to do that. What am I going to do?'" he said.

Nerney, who coaches girls basketball teams in his spare time, decided to borrow ideas from his coaching playbook.

"I wanted a team," he said. "We're going to wake up every day and be the best we can be."

To do that, Nerney tossed out annual reviews and employee manuals. Employees should continually ask themselves if they're doing the right thing, he said. If they aren't doing a good job, they should be told at that point instead of a year later.

Nerney, who makes it a point to have lunch with 150 employees a year, also instituted a buddy system. Each employee has a buddy with whom he or she can kick around ideas to make sure he's on the right track.

"Mine will challenge me," he said. "They'll tell me the opposite of what I think. I hate it, but I need it."

In addition to giving a talk at the breakfast, Nerney also hosted a career forum, "Planning Career Development and Understanding the Importance of Corporate Culture," at 2 p.m. Friday at the alumni executive center. It was open to the campus community and the public.

Cathy Jett: 540/374-5407

Email: [email protected]

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