Robert Holmes

President/Meteorologist
Spectrum Weather Insurance
Liberty, Missouri

How did you get started at your agency?

I’m a meteorologist by education. I went to college and graduate school at the University of Wisconsin – Madison, and then I worked as a researcher at the university for eight years. One day I got a call from an energy trading company in Kansas City, Missouri to come and work for them in a new kind of industry called weather risk management. After two years, I left for a new company that was formed with a focus on the weather risk management activities—we got out of the energy portion of the business. After several years, that company was purchased by an insurance carrier, after which I formed an insurance agency subsidiary to offer weather insurance policies provided by the new carrier.

After being in the industry for a little over 10 years, I left the agency and formed Spectrum. Spectrum is my own brokerage, which allows me to specialize in weather insurance. I primarily provide rain insurance and event cancellation insurance for outdoor fairs, festivals and concerts, and even some indoor events in the wintertime.

Why focus on special events?

I think special events are probably the industry most affected by weather, so it’s just been kind of a natural progression. Also, so many of these events have such a large financial exposure that a day or weekend of unfavorable weather can ruin them. It’s rewarding to help them avoid such a disaster.

Biggest special events insurance changes over the years?

There’s been greater interest and greater placement in events cancellation insurance, which includes weather and non-weather perils, such as a power outage, non-appearance by the artist, a bomb threat or a labor strike. The nice thing about the cancellation policy is that it covers all perils unless specifically excluded. As the world changes, I’ve adjusted to the market differently and added event cancellation insurance as another arrow in my quiver. Event cancellation insurance is especially important for larger three-day music festivals and other big events.

Biggest challenges in insuring special events today?

Part of the problem is complacency. Festivals that have purchased rain insurance for the last 10 years from the same agent that probably supplies their liability coverage—it’s the same vanilla rain insurance that was available 10 years ago, and probably with the same carrier as well. Now, there are other options available from other carriers that could provide more applicable coverage. But because their agent is not a specialist, or includes a basic rain insurance option as part of the overall insurance package and therefore is not aware of these options, the event organizers may not ever be aware of all of the options available. Educating the client is always something that takes a lot of effort. People get comfortable doing the same thing and don’t necessarily want to change, even though there might be better options that cost less money.

Advice for a fellow special events agent?

It’s really kind of a grassroots product. Many of these events and festivals are put on by volunteer boards—either a board or a chamber of commerce. You really need to get to know those people and develop a grassroots marketing campaign—maybe you just focus on the local area, or if you already do business with a chamber of commerce, there’s the opportunity to provide rain insurance for the annual fundraiser or golf outing.

I’m a member of many fair and festival organizations, like the Missouri Association of Fairs and Festivals, the International Association of Fairs and Expositions, and the International Festivals and Events Association. When I started my brokerage, I decided I wanted to be laser-focused on customer service. I want to be recognized as having the best customer service in the industry, and I attempt to accomplish this, in part, by travelling to as many fair and festival meetings and conventions as I can so that I am able to meet the people, rather than just being a phone number, website or fax machine.

Favorite special events success story?

There have been a couple times when being a meteorologist has really paid off in the claims process. Many of these policies are written based on the rainfall observation at an airport, and I’ve had instances where claims have initially been denied because the airport reported zero rainfall, even though it rained extensively at the event. As a meteorologist, I can look at the raw observations from the airport, which contain codes that indicate whether or not the precipitation mechanism was functioning properly. There have been instances where the code indicated a malfunction or that something was not operational, and in those instances, I’ve been able to explain to the carrier that there was a problem with the rain gauge, provide supporting documentation and other meteorological data, and ultimately get the claim paid.

My carriers and their claims departments respect what I do. We have gotten to know each other over the years because as a meteorologist, I look at it a little bit differently than the average agent who may see the same numbers. When I see the possibility of some misinformation, I will step up and do what I can do get the claim paid. I write more of this business than any other broker in the country, so when I call, they want to listen. They answer the phone, and my client gets served. That’s what’s most important.

Jacquelyn Connelly is IA senior editor.