What led you to pursue a career in the insurance industry?
Interestingly enough, my background is in biology and chemistry. For most of my life, I was convinced I was going to become a physician. I took an accelerated path through college, swam competitively, graduated early at the top of my class, and began preparing for medical school. I had taken the MCAT and was in the process of applying to medical schools when I was approached with an opportunity to consider a completely different career path in the insurance industry.
After some serious reflection on what I wanted in life, I narrowed it down to three priorities: my faith, my family, and my fitness. I realized that if I could find a career that allowed me to champion these three areas, it would be the best path for me.
Looking at insurance through that lens and seeing the opportunities it had provided for my family and others, I ultimately decided to take on a territory manager position. That’s how I found my way into the insurance industry and wouldn’t change it for anything.
Could you explain the role of a state director and how they support our agents?
As a state director, my primary responsibility is to manage and nurture relationships with both agencies and carriers across the state. This role involves significant travel to meet with agencies in person, offering guidance at every stage of their development—from launching their business to scaling up, and even through acquisitions or perpetuation planning.
On the agency side, I focus on providing market access and agency development, helping agencies chart their course and reach their objectives. On the carrier side, I partner closely with carriers to ensure their profitability and production goals are met, especially during these challenging market conditions. This involves strategizing on ways to enhance profitability, appointing the right agents in the right areas, or deepening partnerships within specific agencies, as each carrier may have a unique approach to recovery.
Ultimately, the role of a state director is about balancing and supporting the needs of both agencies and carriers by positioning Smart Choice as a key partner in achieving mutual goals.
Do you have any specific advice you like to share with your agents?
I have no shortage of industry tips I pass along to agents depending on what they’re struggling with. However, given the current market conditions, the most relevant advice is for agencies to stay vigilant about their carrier relationships. Maintaining contracts and market access is crucial right now because many carriers are scaling back or terminating agency contracts in their efforts to improve profitability.
When the market eventually softens and carriers are eager to write new business, agencies that have retained their carrier contracts through this challenging period will stand out. These agencies will be well-positioned to capitalize on new opportunities as carriers ramp up their sales efforts.
Agencies that lose their carrier partnerships due to lack of engagement or profitability may find themselves at a disadvantage. Even with Smart Choice’s support, there are limits to what can be done if a contract is lost. Agencies that preserve their contracts and market access are likely to be the leaders when the market rebounds.
What difficulties is the insurance market currently facing in Indiana?
Indiana has been relatively fortunate compared to other states, as it has historically performed well and hasn’t faced as many carrier restrictions or severe effects from the hard market. However, this stability has led to complacency among agencies, which have grown accustomed to extended periods of a soft market.
As the market shifts, some agencies have struggled to adapt to the current hard market conditions. Carriers continue to make difficult decisions, including terminating agents who remain disengaged at this stage of the market cycle. Lack of engagement and adaptation can result in losing carrier contracts and not being well-positioned when the market eventually softens again. Therefore, helping agencies navigate and adjust to these challenging market conditions has been a significant focus.
Do you believe Smart Choice can assist agencies in overcoming these difficulties and adapting to the hard market?
Absolutely. Smart Choice is committed to helping agencies navigate these challenges. We continuously provide our agencies with the latest industry trends and insights through monthly lunch and learns, where agencies can connect, share experiences, and discuss market developments.
We offer a range of tools designed to help agencies build, repair, and enhance their operations. While it’s up to the agents to implement these tools, Smart Choice has worked diligently to equip agencies with up-to-date techniques and new market opportunities. We’ve also been successful in maintaining valuable carrier appointments, even when others have faced cutbacks. Overall, Smart Choice provides significant support to agencies during this hard market.
What does the future hold for Indiana, and how do you see it unfolding for you and your team?
I believe the future looks very bright for Indiana. There are promising developments on the horizon. Smart Choice has already begun discussions with carriers about planning and implementing new business rollouts. The next step is to reintroduce ourselves into a market where carriers have been focused on limiting new business and improving their profitability over the past few years.
As we start engaging in conversations about new appointments, business opportunities, and market expansions, it feels like a fresh beginning. The exciting part is that we have numerous carriers eager to collaborate with Smart Choice in Indiana. We’re currently working through these opportunities, and the results of these efforts will unfold in the coming months and years. It’s an exhilarating time to partner with both our carriers and agencies as we move forward into this new market cycle.
With the average age of insurance agents around 57, how does their pre-technology experience impact the current industry?
Many agencies have been slow to adopt new technology. This is partly because technology can be expensive, and its benefits aren’t always clear. Many people have had negative experiences with tech vendors who promised more than they delivered, which has made others wary. Many agents feel hesitant and unsure about integrating new technology.
As someone who is tech-savvy, I often help others understand and use technology. Many agents, averaging around 57 years old, share a similar hesitation when it comes to adopting new technology. Many agents are cautious about investing in new tech due to its cost and the risk of not seeing a return on their investment.
For new agencies entering the market today, is it feasible to avoid using technology, or will that approach negatively impact their ability to find and service clients?
For new insurance agents, avoiding technology is not practical. Investing in technology is crucial because it automates tasks that don't require a licensed agent's expertise, such as downloading policy reports or managing communications. If a task doesn’t require a license, it’s better handled by technology, which is often more cost-effective than using a licensed agent’s time.
While an agency can’t be completely automated, technology can streamline operations and reduce costs. This allows agents to focus on revenue-generating activities, which are most critical at the start of a new agency.
What impact do you think AI will have on insurance agencies?
AI is set to significantly impact insurance agencies. The key takeaway is that agencies and employees who adopt and use AI effectively will have a competitive edge over those who don't. AI is a long way away from replacing the role of an insurance agent but will be a significant tool to enhance efficiency and productivity.
While AI is a trendy topic right now, it's not entirely new—many platforms have used AI for years. For insurance agencies, integrating AI early can lead to substantial benefits. Embracing AI will help agencies stay ahead and thrive in a rapidly evolving industry.