Hub International expands its Arizona footprint

Jack Clements, and his two sons, Sean and Jim, wanted to take their Clements Agency, an insurance brokerage agency, to the next level.

After several discussions between Clements Agency and Hub International, the fifth largest insurance broker in the world, Hub acquired the agency and its offices in Tucson, Scottsdale and Flagstaff in June 2020.

Jack Clements reflected on the past two years and sees the benefits of the Hub International's acquisition of the agency he founded 20 years ago. "We chose Hub because it fits our personality really well," Clements said. Jack and his sons soon saw Hub's willingness to assist them, sharing information and knowledge as the agency pivoted from a regional company to an international firm, with "tremendously greater resources."

"Because Hub is the fifth largest broker in the world, it gets us in some doors we couldn't otherwise get in being a local and regional firm," Clements said. Today Clements is president of Hub's Arizona operations and a member of Hub Southwest's executive management team, while sons Sean and Jim are senior vice presidents. Clements manages a portfolio of real estate, hospitality, construction, healthcare and technology accounts.

For Hub, the acquisition was all about the quality of the people at the Clements Agency. "When we decided to come back to Arizona, we talked to a lot of firms," said Randy Perkins, president of Hub Southwest. "We wanted someone who was very dependable, had a lot of character and was well known in the community. Jack, Sean and Jim checked all the boxes. The three offices gave us a wonderful platform from which we started building.

"It all starts with people. We wanted to start with the same cultural integrity and mindset that fit Hub's personality and they fit that to a T."

Hub Southwest has continued growth in Arizona, purchasing several Scottsdale-based companies. Since its purchase of the Clements Agency in June 2020, Hub purchased Eagle American Insurance Company, a division of the Insurance Office of America, specializing in coverage for manufactured housing in the Southwest; EPG Insurance in Scottsdale, a property and casualty group, specializing in assisted living facilities; JP Griffin, an employee benefits insurer in Scottsdale; and WealthPlan Advisors, a wealth management and retirement planning firm. Hub Southwest has over 20,000 clients in personal insurance, commercial and bonding insurance, employee benefits, and retirement and private wealth.

Insurance needs vary for business owners, according to Clements. "The more sophisticated a client is, the more they know what they need or want in terms of coverage," Clements said. He educates the client on options and various coverages, informing them on potential issues or claims that they may not have thought about.

Cyber insurance needs have expanded in recent years, Clements said. Potential clients tell Clements that their IT teams tell the company that they have "great controls" to protect from data breaches. These discussions turn to the potential fallout and disastrous public relations when companies are reminded of recent data breaches in the news and the potential for claims against their companies. They start asking more questions about cyber insurance, and they quickly learn why they need it, Clements said.

Perkins said no two clients are exactly alike. Hub sells solutions, and Hub's broad array of talent and resources "is kind of cool to see unfold" and how everyone works together, Perkins said. "We can deliver uniqueness and specialize in various industry-specific resources in a very small community. We address a small business no differently than we address a large business."

With that wide array of resources and international reputation, the company still looks and feels very local, Clements said. "We deliver much more of a personal approach to the way we treat clients and deliver services than some of the big boys, if you will. People like doing business with us because we don't look and feel like an 800-pound gorilla."

Hub Southwest assisted clients in northern New Mexico after the recent wildfires this summer. The company worked to find out what kind of assistance was needed there, including finding shelter and expediting claims, helping clients "navigate through an emotional time in their lives," Perkins said.

Hub also assists consumers, who can obtain homeowners, renters and personal auto insurance through Hub as the company expands in the personal line area. "We may be making more acquisitions," Clements said.

Clements enjoys the insurance business as it allows him to interact with people every day and address their various needs. "It makes the day more interesting," Clements said. "I'll be working with a lumber wholesaler in the morning, and in the afternoon, I'll be working with a government contractor that does top secret stuff. Variety is the spice of life."

Clements is active in the Tucson community, as a member of the Southern Arizona Leadership Council and board member of the Metropolitan Pima Alliance, a member of the Tucson Conquistadors, which sponsors the PGA Tour Event, and a member of the Centurions, a major fund-raiser for Tucson Medical Center and several youth-oriented charities. The proceeds from the PGA Tour Event are all donated to underprivileged, youth-oriented groups.

Over the last three years Hub International also has donated $1.2 million to San Miguel High School to assist below-poverty children through a state tax credit program.

"It's all fun," Clements said of his and Hub's charity work, "but it also is rewarding to give back to the community that is giving us our livelihood."