The National Association of Casualty & Surety Agents was formed in 1913 . In 1993 , it changed its name to the Council of Insurance Agents & Brokers ( CIAB ). Another trade association , the National Association of Insurance Brokers , was established in 1933 .
“ As the commercial insurance industry evolved , so too did the associations that represented it ,” according to the CIAB ’ s organizational history . “ The National Association of Insurance Brokers was established to promote the interests of commercial insurance brokers . For decades , the NAIB represented the largest brokerages in the world , but an onslaught of mergers and acquisitions in the 1980s and 1990s eliminated the need for multiple associations . Following this period of major consolidation in the commercial insurance industry , the NAIB was merged into The Council in 1998 .”
Arthur Gallagher ’ s three sons — Jim , Bob and John — joined the firm in 1945 . In 1965 , the firm expanded into life insurance and employee benefits , and just 10 years later the employee-benefits division wrote its first self-funded plan . By 1976 , revenue for the entire corporation had reached $ 10 million , and it more than doubled to $ 25 million just two years later .
The early 1970s also saw geographic growth , with operations chartered in Bermuda and London . To this day , those two domeciles are major global insurance hubs . In 1984 , the parent corporation made its initial public offering , and separately the London operation became the first subsidiary of a US brokerage to be accepted as a Lloyd ’ s broker in its own right .
In 2002 , AJG marked two milestones at once : its 75th anniversary and $ 1 billion in revenue . Pat Gallagher was named chairman of the board in 2006 . AIG was incorporated in 1950 and made its IPO in 1984 . Today AJG is based in Rolling Meadows , Illinois . It has 52,000 employees , 2023 revenues of almost $ 10 billion and continues to grow ; in early April 2024 , AJG acquired Specialty Risk Management Services , LLC , based in Fort Myers , Florida .
Pat ’ s time with the company started in 1966 , the summer after eighth grade . “ My father said to me , ‘ I think it ’ s time you should put on a coat and tie and come to work for a few weeks .’ It was not like takeyour-kid-to-work day : he dropped me off at Mabel ’ s office — she was the only one other than the senior executives who had an office — and she put me to work . She was firm , but very kind . I did filing and ran errands around the Loop 2 .”
“ In those days policies were real forms with blanks ,” Pat explained . “ The agent or broker would fill in the blanks and both parties would sign the form . One day we were out of Travelers forms , so Mabel sent me from our office at One East Wacker Drive across to the Travelers office on 175 West Jackson Street to get more blank forms .
“ The Travelers executive took one look at me and realized how young I was , and said ‘ I ’ m not giving you blank forms .’ He lectured me , ‘ These are binding ! Tell Miss Pottinger that I am sorry to send the young man back empty handed , but I am not giving a 14-year-old blank forms .’
“ When I got back to our office and explained to Mabel what happened ,” Pat continued , “ she simply picked up the phone and called the guy at Travelers and said to him , ‘ I have plenty of Hartford forms , but no Travelers forms . I can ’ t sell your policies without forms . I have no problem telling clients that we are out of Travelers forms but can write them Hartford coverage . What would you like me to do ?’ The fellow told her , ‘ send the boy back .’ That is how Mabel worked . She was nice , but firm .”
Remarkably , Pottinger was an active producer in addition to running the office . “ My dad ’ s producer report for 1951 was $ 4,836.25 in commission income ,” said Pat . “ He set a goal of $ 6,000 for 1952 to try to beat Mabel ’ s production .”
Pottinger was also responsible for training . “ The curriculum was simple ,” Pat remembered . “ She said , ‘ Sit down and listen up . This is how you do things : come in early , make the coffee and study fire insurance . Once you get that , you can start on life .’ That is how my father started . My grandfather told Mabel , ‘ When you think John is ready to sell , tell me .’”
In subtle ways , Pottinger also trained buyers . That was one of the keys to her success as a producer . “ She had a license , so she could sell anything ,” Pat said , “ but she took personal lines and smaller lines off my grandfather ’ s plate . She never tried to get clients to buy coverage they didn ’ t want , but she was very sure to sell them what they needed .
“ For example ,” Pat elaborated , “ If a wealthy client had property coverage she would suggest an additional endorsement for jewelry . If the client declined , she would say , ‘ Very well , please sign this letter stating that we have offered that coverage and that you have declined .’ Usually that persuaded the client to take the additional coverage . She really was training the buyers .”
As a trainer and a mentor , Pottinger was “ firm but kind ,” Pat continued . “ She was never mean , but she had a very strong personality . It was a good lesson . I never grew up with any ideas that men were the breadwinners and women just assisted . In the office , Mabel was a force .”
Which is not to say that she always had her way . “ One day my Uncle Bob , who was CEO at the time , thought it would be a good idea to put a suggestion box in the office ,” said Pat . “ Mabel jammed five typewritten pages into the box . The next day my uncle announced that the suggestion box is now retired .”
Pottinger never married or had children . “ She considered Jim , Bob and John her boys and was motherly to them ,” said Pat . “ She thought of Gallagher as her family . I was lucky enough to spend two weeks in the summer working with her , and the boys did take care of her throughout the rest of her life .”
Gregory DL Morris is an independent business journalist , principal of Enterprise & Industry Historic Research and an active member of the Museum ’ s editorial board .
Notes
1 . The subjects of fire and dairy in Chicago cannot help but conjure the myth often connected to the start of the Great Fire of 1871 . The official investigation found that it started in or near the O ’ Leary ’ s barn at about 8:30 pm on October 8 . Catherine O ’ Leary testified that she had been in bed at the time , and the neighbor who first discovered the fire testified that he first freed the animals in the barn , then alerted the O ’ Learys , who were in their house and unaware of the fire . The fabrication that Mrs . O ’ Leary was responsible for starting the fire is today attributed to anti-immigrant and , particularly , anti-Irish bigotry in the town at the time .
2 . The Loop is the central business district in downtown Chicago , so called because in that area the elevated train , “ the L ,” runs on a loop of overhead track .
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