Back in late March, InStar Services Group named seasoned veteran Mark Davis as its new president and CEO. Claims' Eric Gilkey chatted with him about his past, his future, and what he thinks are the biggest issues facing the insurance restoration industry right now.

Among your successes, you were co-founder and president of BELFOR USA. What did you learn from that experience that will help you as the new president and CEO of InStar Services?

When we founded BELFOR USA in 1999, we had a clear directive to become the largest insurance restoration company in North America. Although we accomplished that goal within three years, as I look back some of the growth was just too fast. So as my InStar team looks to grow, we will execute our growth at a more manageable pace.

The most valuable lesson I learned while growing BELFOR USA was the necessity of a strong leadership focus. In this industry, that focus came down to two critical areas. First, recruiting, training, and retaining the best people. Whether the people come from inside or outside of this industry, the people are everything. Second, a tireless commitment to the customer. In almost every claim, there are unforeseen issues that arise. It's how we communicate with and solve the issue together with the customer that will get that customer to refer us on the next claim.

You began your career in 1996 with the acquisition of Rocky Mountain Catastrophe. Can you discuss some of the differences between then and now, in terms of customer expectations?

Since the 1990s, the industry has matured dramatically and nowhere is this more apparent than in production. The customer is now more demanding on response time, nationwide coverage, price, and consistency. This has been good for the industry, as it is has improved the quality and service offerings of the contractors. While there are some success stories of companies who have marketed and sold their way to some size, the new reality requires maintaining multiple locations, with all providing outstanding service. Pockets of excellence are not enough; service consistency is key.

Our industry's definition of service continues to expand as the demand for a single-source solution intensifies. It is no longer enough to have a few dehumidifiers and a pickup; more sophisticated customers with more specific needs are demanding restoration companies expand their in-house capabilities.

Competing on a national level in today's market is much more difficult than it was in the late 1990s. You need local service but a nationwide presence, rapid response capability coupled with a diverse set of skills, all combined into a more cost-competitive package.

What are some of the biggest challenges facing your industry right now? Five years from now, will you still face the same issues?

The biggest challenges facing the insurance restoration industry right now are increased competition from home builders and other contractors have entered the business because their industries have all but disappeared; pressure on pricing as a result of the increased competition; insurance coverage and premiums for general liability insurance and health care; and high deductibles and the increase in self insurance both in residential and commercial claims. I am sure they will still be serious issues five years from now, along with several new ones.

However, the biggest unanswered challenge for our industry is environmental compliance and environmental stewardship. I believe our industry has significantly lagged other industries in recognizing and embracing the reality that we live in. To start, we have to do more than comply with environmental regulations. We have to understand that as a company and as an industry, we mitigate risks. Nowhere is this risk more apparent than how we deal with caustic chemicals and dangerous building materials. At InStar, I am proud of my company's environmental compliance program. I believe that approach continues to gain traction in our industry. I also believe and hope that within five years, we will no longer be one of the exceptions in this regard.

A few years ago, you were listed as one of the Top 40 under 40 by Crain's Detroit Business. What will you have to do to make the Top 50 under 50 list?

I am not sure what it takes to make that list, but I know exactly what I will be doing the next 10 years: building InStar into a world-class restoration company with the most talented people, a relentless commitment to customer satisfaction, and a national footprint of company-owned locations to provide immediate response.

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