When you start an independent insurance agency, one of the perks is that you can build a business that reflects your vision. When Suzanne McCollum, the agent and owner at McCollum Insurance Advisors, started her agency, she wanted one that was the right size for her. A network partnership made that possible.
- Suzanne McCollum
What Do You Do When Your Boss Closes Shop?
For 13 years, Suzanne was the office manager at a local State Farm agency, until one day her boss retired.
It’s a situation in which many insurance professionals find themselves. She wasn’t ready to retire so she was forced to evaluate her next step. For Suzanne, the logical next step involved starting her own agency. “I wanted to spread my wings a little bit,” she said, explaining the limitations of working as a captive agent. “I felt like I was held to one carrier and just didn’t have other avenues when they didn’t fit.”
A Big Leap
Going from the office manager of a captive agency to the owner of an independent agency was a pretty big leap. Instead of just having one computer system and one set of underwriting guidelines to worry about, Suzanne suddenly had over a dozen. “There was a big learning curve,” Suzanne said. “You just kind of had to dig in and go for it.”
That’s true, but a little guidance and support can make things much easier.
Suzanne knew another agent who had partnered with Smart Choice, and he told her about the program. Suzanne liked what she heard. “It just seemed like it was a good fit,” she explained.
In particular, she liked that Smart Choice could supply fast access to carriers so she could start building her book. She also liked that she had some guidance to navigate the ins and outs of each carrier, and general agency operations. “You jump in by yourself. I mean you don’t have really anybody to turn to, to help you out and guide you along the way,” she said. With Smart Choice, things were different. “I had somebody who could help if I had some questions or concerns.”
That person was often Christy Stevenson, a Smart Choice territory manager in Georgia. Whenever Suzanne was having trouble, she could reach out for advice and answers. “I’ve always had those connections with my leaders and the people at Smart Choice,” Suzanne said. “I think that’s been really important to my success. I think that’s what’s missing with some of these carriers now.”
Not Too Big, Not Too Small – Just Right
Suzanne wanted her agency to be the right size for her.
“I’ve never really wanted to be a huge agency managing a lot of employees,” Suzanne explained. “I’m more hands-on with the policyholders.”
While there is nothing wrong with this approach, some carriers and aggregators might see things differently. They ideally want high-volume agents who will bring in multimillion- dollar premiums year after year, and if you can’t meet their production requirements, it will be nearly impossible to get appointed. Because of this, a small agency can have trouble surviving, especially in the early days.
However, Suzanne wasn’t interested in being a high-volume agency, and wanted a small, personal, boutique agency - and Smart Choice helped her create, build and maintain it.
Meeting Client Needs as a Boutique Agency
Carrier access isn’t the only potential hurdle that smaller agencies can face. Regardless of the size, running an agency can require a lot of specialized knowledge. Imagine you’re pretty comfortable selling homeowners and auto insurance. Then one of your best clients asks for help securing commercial coverage which is beyond your specialty. What do you do? Turn down the business and risk losing the client? Or find a way to offer the coverage?
Even if you’re a small agency, you need to be able to offer your clients the products they need, including commercial, life, and excess and surplus. If you can’t offer everything, your clients might find it more efficient to work with a broker who can. You could lose all their business, not just the one tricky product in question. At the same time, you don’t want these occasional sales to eat up a disproportionate amount of your time.
To manage these scenarios, you need a partner, and Suzanne has found that partner in her network. When Suzanne has a client who needs a policy she can’t handle on her own, she turns to Smart Choice.
The Freedom to Run Your Business Your Way
Some agency owners dream of exponential growth and enormous books of business, but that’s not right for everyone.
“My choice is to keep it smaller,” Suzanne said, citing the personal touch that she likes to give her policyholders.
With Smart Choice, maintaining a small, boutique agency has been possible. Smart Choice doesn’t have startup fees or monthly fees. It doesn’t have performance minimums, either. This gives agents like Suzanne the freedom to run their agencies on their own terms.
Are you interested in a network partnership that can help you start the independent insurance agency of your dreams? Learn more about joining Smart Choice.
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