Gem Insurance Co., Utah's largest health and accident insurer for small businesses, has purchased its exclusive general agency, Intercontinental Insurance Brokerage.
Clark T. Parkinson, president of Gem Holding Co., parent company of Gem Insurance, announced the purchase for an undisclosed amount from the principals, Peter L. Regan, Sidney G. Zipperman and Linda W. Regan.Parkinson sees the purchase as an immediate benefit to Gem Insurance and its policyholders. "IIB is an established well-run agency with experience employees and a network of agents and insurance products. The acquisition is expected to lower marketing and sales costs by creating an in-house brokerage agency," he said.
The agency will be significantly expanded to take care of the increased demand for individual health insurance policies along with the group Health Cost Manager Program which Gem introduced Jan. 1.
During the seven years IIB has been the exclusive general agency for Gem Insurance, premium income to Gem has increased from $1 million to more than $47 million on Dec. 31, 1990. IIB was instrumental in establishing Gem's products in Arizona, New Mexico, Colorado and Nebraska markets, Parkinson said.