Strong business relationships a cornerstone of its success

Thirty-five years ago, Century Insurance Corp. joined the Northern Marianas’ finance and insurance sector and remains one of the formidable companies in the region today that offers property and casualty insurance to insureds in Guam and the CNMI. CIC’s product line also includes coverage for workers compensation, commercial vehicle, and public liability insurance.

CIC general manager Gol Corpuz attributes this success to CIC’s unwavering commitment to providing its insureds with the most practical insurance solutions to manage their risks. “Our goal is to ensure that we build value for our stakeholders with the approach of getting optimum results, from applying professional insurance practices, to keeping up our technical competencies and providing excellent customer service. The fourth and most important aspect is embodying a corporate culture that values giving by actively contributing to the community where we do business.”

A 31-year veteran of CIC, Corpuz began his career as a senior underwriter, working his way up to his current position as general manager. It is this same spirit of giving that gives Corpuz the pride to be a member of the team and the desire to remain a CIC employee. “I take pride that our company is very active in helping the community during times of calamities through either in-kind or monetary donations. This help also extends to our employees within CIC and [parent company] TanHoldings Corp.

CIC’s climb to market dominance began in 1988 when it entered the local finance and insurance sector as a sub-agent for Moylans Underwriters Insurance. Two years into the business, CIC became a full-fledged insurance carrier in 1990.

By building and sustaining long lasting alliances and relationships with customers, business partners and vendors, CIC was able to hold its dominance in the local finance and insurance sector from 2004 to date.

Its strong ties with two retail agents known for their integrity and strong reputations in the CNMI and in Micronesia—Aon Micronesia and the Joeten Group through Pacifica Underwriters Insurance—has helped catapult CIC to the top.

Describing the benefits of its collaboration with AON, Corpuz said, “Working with Aon Re helped us secure our first AM Best Rating with B+. Their guidance that stemmed from years of various client experience on rating issues was invaluable. …Thanks also to AON, our head office in Guam also attained a higher AM Best rating of B++ (Very Good) through the infusion of more capital.”

It also helped that, as a subsidiary of TanHoldings Corp., CIC was able to build captive accounts. By virtue of this relationship, CIC has covered almost a third of the market share since 2004 until the present.

Another strategic decision that contributed to CIC’s success was the company’s decision to reinsure through a worldwide known Aon reinsurance broker and reinsurer Gen Re, which is also the highest AM Best-rated reinsurer. Gen Re is a subsidiary of Berkshire Hathaway that is owned by Warren Buffet, known to all as one of the richest men in the world.

Corpuz believes that CIC has reaped the benefits of this approach which has gained the company repeat business, referrals, and even partnerships that have helped the business grow and expand.

“We have made building relationships and partnerships our business. Building relationships with the client is more important to CIC over and above just selling them insurance products. In fact, our records show that we continue to retain 90% to 95% of our clients despite the economic downturn,” said Corpuz.

Underscoring the importance of staying connected with clients both in the good, but most importantly, during the hard and challenging times, is crucial, said Corpuz.

“Our former president, David M. Sablan, provided the template for us on how we should treat our clients and customers. TanHoldings’ chief executive officer Jerry Tan and CIC president George Chiu further promote this corporate value that has been one of our guiding principles. …By making ourselves accessible to clients and partners, we show our sincerity and that we are invested in their success. Saying hello or treating your clients to lunch or dinner might not be much of an ROI (return of investment) [but] it is about building relationships.”

Recognizing clients as part of CIC’s growth has also contributed much to the company’s success. Corpuz explains. “We are one of the few insurance carriers in the CNMI and Micronesia that offers risk management solutions to clients and give them recommendations on certain hazards for the safety and betterment of their assets and facilities. By doing this, we have forged long-term business relationships that haven led to brand advocates and successful outcomes.”

To attest to this, CIC hosts regular fetes for its valued and loyal customers, agents and brokers—a tradition that began when the company hit its 10-year milestone. Most recently, CIC’s partners and customers were honored in joint anniversary celebrations of CIC and TanHoldings Corp.

Practicing reciprocity in business relationships is another virtue that CIC has gained from. “Strong business relationships are about being mutually beneficial to one another. A good example is T&T—Tenorio and Tan. Our company and our team members patronize the businesses of the Joeten group of companies on a fair and equal basis, with employees from both companies enjoying discounts from both businesses,” said Corpuz.

Of course, not to be missed is the prudent underwriting by CIC’s experienced team, which also helps CIC maintain its market dominance.

As what great companies are known to do, CIC followed this lead by first growing its existing assets and capabilities and ensuring continuous strong performance before opening its doors in the neighboring island of Guam.

Taking advantage of a qualifying certificate from the Guam Economic Development Authority, CIC branched out to Guam as part of its long-term plan for growth. In 2006, CIC became a domestic company in Guam and it eventually became the head office for both Saipan and Papua New Guinea branches, becoming the hub for the company’s management team. Two years ago, CIC divested its stake in its PNG branch to concentrate more on its growing business in Guam and the CNMI.

“The demography of Guam and Saipan are very similar. Hence branching out to Guam is not a difficult task as compared to branching to Papua New Guinea,” said Corpuz.

The company is currently doing its due diligence to explore opportunities outside of the Micronesian region. “We balance future plans of expansion with growth, correct risk assessment through feasibility studies as well as consultations with our experienced business partners in both retail and the international market,” he said.