Selecting a strategic partnership
When Zurich withdrew as Arrowhead’s Tow Program carrier earlier this year, the team didn’t see a setback — they saw an opportunity to build something better. But time was short, and the stakes were high. Arrowhead needed a partner that not only had the appetite for this niche market but could also handle the unique risks of commercial auto insurance on a national scale.
The tow market is highly specialized, and few carriers have the capacity or appetite for it. However, Arrowhead’s long-standing expertise and the scale of its business made them an attractive partner. “Our Tow book was valued at $80 to $85 million at the time, and it’s an established book of business,” said Tandy Fitts, vice president of programs for Arrowhead Aftermarket. “We’ve been in this space for over 30 years, and if a carrier is going to take on commercial auto, they want to see that kind of stability.”
Before long, Arrowhead found its perfect partner in AIG. Along with providing flexibility in coverage, they brought strong brand recognition. “AIG gave us the nationwide presence and flexibility we needed to ensure we could continue offering comprehensive coverage,” Fitts said.
The move to AIG was critical in keeping the program competitive, but equally important was how Arrowhead tailored the program itself. This wasn’t just about replacing a carrier — it was about enhancing the Tow Program to offer better options, such as more control over rates and greater flexibility in coverage, especially in high-risk areas.
Navigating a phased launch
With a soft launch planned for August 2024, the team faced a race against time. To meet the deadline, they focused on implementing the core processes needed to launch quickly, with plans to refine and expand over time. “There was this approach of a very minimum viable product, then what’s next, and then what’s next and on down the line,” recalled Norine Culotta, senior project manager in Arrowhead Program’s PMO team.
This phased approach allowed the team to meet immediate needs while building the foundation for a more efficient system. Manual templates were created alongside system development, helping the team move forward while they worked on automating more permanent solutions.
By bringing in experts from different departments to tackle each aspect of the transition, the team accomplished in days what would normally take months. “We had to pull in people from IS, accounting, operations, marketing — everyone,” said Lauren Reiter-Schmid, AVP of Commercial Business Systems. “Once everybody understood the urgency of the situation, they weren’t hesitant to jump on a call and hash it out with us until we could get it figured out.”
Turning challenges into opportunities
Arrowhead’s shared services teams worked tirelessly, repurposing existing systems where possible and building new solutions from scratch where needed. “Norine and Lauren were able to take what we currently use and tweak it here and there to fit the new product and the new carrier,” said Debbie Winterowd, senior program manager for Arrowhead Aftermarket. “They were very efficient in that manner.”
Nevertheless, this proved to be one of the biggest challenges they faced as they worked through the transition. The processes they had used for years under Zurich couldn’t simply be transferred, meaning they had to rebuild parts of the system to align with AIG’s new requirements. “We were trying to leverage existing systems and copy forward that functionality, but it’s not so simple as just going to a copy machine and clicking a button,” explained Reiter-Schmid.
Manual templates were vital during this period, allowing the team to keep things moving while they worked toward automating processes for the long term. There was a shared goal not only to make things work for the upcoming launch, but to build something sustainable.
Each challenge presented an opportunity to improve. By focusing on the end goal — ensuring the program’s long-term success — the team was able to stay agile and innovative throughout the transition, launching the new Tow Program in record time.
“We didn’t have the luxury of planning everything out the way we might have liked,” Fitts admitted. “But the shared services teams were phenomenal. They kept us organized and made sure nothing fell through the cracks.”
Leveraging decades of experience
By August 1, the new Tow Program officially launched with AIG, and the response was immediate. Even without a full-scale marketing push, the program wrote over $4 million in written premiums in its first month. Producers, familiar with Arrowhead’s expertise, were eager to continue their partnership. “Any carrier can provide the coverage, but we know which coverages our clients need,” said Winterowd. “It’s our deep expertise that really sells the program.”
Meanwhile, the program’s seamless transition served to reinforce Arrowhead’s reputation as a leader in the tow insurance market. The team’s ability to pivot, address challenges and maintain service continuity — without overpromising — was key to the program’s early success.
Leveraging decades of experience, the Tow Program’s success came down to teamwork and adaptability. “We had to adjust some of our systems, but thanks to the shared services teams, we were able to keep everything organized and moving forward,” said Winterowd.
“The collaboration across departments really made the difference,” echoed Reiter-Schmid. “Everyone was committed to getting the program live, and that’s what made it work.” Whether it was refining manual processes or adapting systems on the fly, each department played a crucial role in ensuring the launch went smoothly.
Driving growth
While the initial launch was quiet, the Arrowhead team has big plans for 2025. They intend to expand their marketing efforts, solidify relationships with producers and build on the strong foundation they’ve established with AIG.
The goal is clear — to position the program for even greater growth and reach. “We’re excited about what’s next,” said Fitts. “This was a huge step forward, and we’re ready to build on the success we’ve seen so far.”