From Vision to Action: A Leader's Journey in Insurance Growth with Steve Ford

How did you end up in the insurance industry?

Well, let me share a quick story. Right out of college, I had envisioned myself joining the family business, which was a men's clothing store. It seemed like the natural path for me. In fact, I even had an opportunity to work for one of the largest tuxedo companies that my family had a hand in starting. But just before committing to that, I made a last-minute decision to explore an underwriting role in insurance. The funny part of the story is, during the interview for the underwriting position, I was asked what an underwriter does. Without missing a beat, I confidently explained that it involves assessing damages in accidents – a task typically carried out by claims representatives, not underwriters. Surprisingly, I still landed the job. 

But that was just the beginning of my journey in insurance. Over the past 30-plus years, I started off in personal lines underwriting and gradually transitioned into various other roles within the industry, predominantly on the carrier side. I've dabbled in everything from commercial underwriting to claims processing. Along the way, I've also had my fair share of experience in field marketing, serving as a field representative for carriers. 

One significant part of my journey was when I ran a region for a company called Grange, based in Knoxville, Tennessee. I oversaw operations in Tennessee, Georgia, South Carolina, and Virginia, with around ten field reps reporting to me. I got to know Smart Choice Sales Leader, Paul Taylor, through my work with Grange. When he approached me about a role on the corporate side at Smart Choice, it felt like a natural progression. 

So, obviously, that led you in the Smart Choice direction. At the same time, did you look at other aggregator networks if you were pivoting your career in that way?

At that time, I didn't. It's funny, actually. Carol Drake and I, worked together at Grange and attended the Smart Choice annual meeting when it was at Ballentyne. We were both joking around, like, "Who even works at a network?" because we were diehard carrier people. And now, here we are, both at Smart Choice. 

I knew quite a few others in the field. I even helped a few get started, like Agency Partners out of Georgia. I provided them with some info to kickstart their journey because I was a big advocate for networks from the carrier side. I brought that perspective into Grange as well. 

So, my relationship with Paul was instrumental. I knew several other networks, but honestly, I didn't consider them as an option. Paul reached out to me directly to help run Smart Choice commercial division and get it off the ground. Jason Boger was in that role prior to me, I eventually took over from him and then passed the torch to Oliver. 

I never thought I'd leave the carrier side, to be honest, but the opportunity with Smart Choice was just too exciting to pass up. 

What's compelling about Smart Choice that makes your job better than if you were working with some other aggregator or network?

Well, there are several factors that come to mind. Firstly, it's the people we work with. Having been both on the corporate side as the head of commercial at Smart Choice and now out in the field, I've gained a unique perspective. Our network has an impressive array of carriers, and our contracts are top-notch. It's no surprise we have over 10,000 agencies across the country. We prioritize doing right by our agents. 

Secondly, our contracts are more favorable compared to most competitors, and we offer just as many market options. This sets us apart. Finally, our field presence is a major strength. I'm proud of our team, including the Territory Managers and State Directors, who ensure our field presence is stronger than that of any other competitor. Some networks rely solely on inside sales or lack the boots-on-the-ground approach we have, engaging directly with agents. I believe these factors truly make us stand out. 

What’s happening in the three states you're handling? Are they seeing growth, unique challenges, or feeling the effects of a hard or soft market?

Let me give you some context on why I chose to focus on this region. When the opportunity arose, I had the option to go out west or consider North Carolina, Indiana, and Michigan. I saw immense growth potential in Arizona, Nevada, and New Mexico, especially considering that about seven years ago, when I arrived, we only had around 70 agencies in this area. Now, we're boasting a group of nearly 400. 

Arizona particularly stands out as one of the top property casualty markets in the country. It's often a key destination for carriers introducing new products or expanding into new states. It's been a rewarding experience working with agents in Arizona. 

New Mexico presents unique challenges as it's a smaller, less populated market with fewer options. However, it's surprisingly profitable due to its niche market characteristics. 

Moving on to Nevada, it's quite a unique challenge. This state has a reputation for being litigious, especially in auto insurance. If you've ever driven around Las Vegas, you've probably noticed billboards every mile urging people to sue after car accidents. This legal environment has made it tough for insurance companies to operate, and there aren't as many carriers available compared to other states. Nevada’s regulatory processes have made it difficult for carriers to raise rates promptly, causing many of them to scale back their operations there. 

So, Nevada has seen more market closures, particularly in personal lines, compared to Arizona and New Mexico. That's a bit of background on the states and the challenges we're dealing with, especially in the current hard market conditions. 

Do California's strict regulations have an impact on Nevada? Is Proposition 103, the consumer protection act, making it tough to set rates?

Absolutely. Both California and Nevada have elected insurance commissioners, which means politics has come into play. Similar to California, Nevada's regulatory environment can be influenced by political factors, leading carriers to react accordingly in both markets. After all, they're businesses, and if they're consistently losing money, they can't sustain operations. In Nevada, there have been instances where rate approvals have been delayed for months, leaving carriers struggling to stay afloat. While it's not as severe as California, it presents its own set of challenges.

Phoenix's growth has been impressive over the last five to ten years, which surely benefits Arizona. Compared to states like California, Florida, and Texas, Arizona seems to have fewer risks.

Absolutely. Arizona's weather is favorable, with minimal risk of tornadoes, hailstorms, ice storms, or hurricanes. While there are occasional wildfires in rural northern Arizona, they don't pose the same threat as wildfires in California or other states. Arizona's regulatory environment is also favorable, attracting carriers to the state. Windshield claims are common due to windstorms, especially with highways lined with rocks. With a zero-glass deductible in Arizona, windshield claims are one of the largest auto loss items in the state. However, the increasing cost of windshields, especially for newer cars, has posed a challenge for insurance claims.

Clearly, you've been successful. What are the secrets of your success? 

Well, I think my prior background plays a big part. I've covered a lot of ground in the insurance industry, especially in commercial insurance. When I came into this role I remember saying, “I'll flip over every rock in the desert to find the right agencies”. I think I’ve done well with that. Bringing on new agencies, guiding them through growth, and helping them get established has been a focus.  

Although I was late to the game I found my niche. For instance, I've been successful in working with many captive agents transitioning to independence. I've also been proactive in supporting newer startup agencies. Plus, my emphasis on commercial insurance and encouraging agents to pursue it has set me apart. 

It seems there's an opportunity with certain alliance groups based in specific regions. You've been involved with NAAIA (National African American Insurance Association). Could you tell me about the Phoenix chapter, your role, and the value it brings?

Absolutely. When the opportunity with NAAIA came up, and when I learned that they were considering opening a chapter in Arizona, I saw potential. I have strong relationships with several African American agents here, so I invited them to the initial meeting. One agent, Robert Branscomb, was particularly enthusiastic and took the lead in starting the chapter. I pledged my full support, and together, we launched the charter. We now have an official chapter with about 40 or 50 members. I serve as a board member, focusing on fundraising. Leveraging my carrier contacts, I've been able to secure funds and recruit agents to join. Robert has done an excellent job leading the chapter, and our recent participation in the Western Forum meeting in Las Vegas was a success. I'm glad to support and partner with NAAIA any way I can.

Tell me about the future. What's next for you and your three states and what are some new opportunities?

I'm currently managing everything solo, but I'm thrilled to say I'm in the final stages of interviewing some potential team members. The ADM (Agency Development Manager) has been a lifesaver, helping me handle the workload of hiring across all three states. My next move is to bring on Territory Managers (TM). I have a candidate lined up in Nevada, and hopefully, another in Arizona to work alongside me as partners. This collaborative approach will help us tackle our ambitious growth goals.  

Strategically, we're refining our approach with new territory managers, ensuring they understand our program thoroughly before diving into recruitment. We anticipate the market improving soon, as we've likely passed the bottom of the bell curve in market cycles. As long as there are no unexpected weather events, carriers are expected to open up new business opportunities late this year or into the next. Despite current challenges, agents are reaching out to us for solutions left and right. Looking ahead, the future of the independent agent industry remains bright, particularly in commercial insurance, where independent agents dominate 80% of the market.