The Heart of Insurance: A Conversation on Market Dynamics, Mentorship, and Opportunity with Carol Drake

What's your background in the insurance industry? Could you share how you initially became involved in insurance and where your journey has taken you since then? 

After college, where I studied finance, I moved to Columbus, Ohio, hoping to work at a bank. By chance, I ended up with a temporary job at Midland Life Insurance Company. My work caught the attention of the company president, who offered me a permanent position. That's how I got into the insurance world, and I stayed at Midland for about 10 years. 

The Midland was eventually acquired by Swiss Re Life and Health, where I spent a year before transitioning to the property and casualty side. After that, I joined Grange Insurance and worked there for 15 years   first leading Marketing and then in Sales as VP of National Accounts growing and managing Agency Networks.  

In 2017, I made the leap to Smart Choice, where I continue to learn a new perspective in this field. With over 20 years in the industry, I've seen a lot, and each experience has shaped me into the professional I am today. And hey, let's just say I've earned every gray hair along the way! 

In your opinion, what value does Smart Choice bring to the marketplace? 

I believe the foundational value Smart Choice provides is in our advice and counsel for agencies. Our state directors and territory managers in the field act as consultants, offering guidance on how to grow and diversify your business. They help agents and their customers navigate the marketplace, particularly during challenging times. 

Currently, we are emerging from a hard market, and some regions are still facing difficulties. This is where the experience of our field team becomes invaluable. They assist agents in finding the best value, securing the right coverage, and saving money, all while dealing with the pressures of rising prices due to inflation and other factors impacting the insurance market, such as extreme weather events and high repair costs. 

Our partnerships enable agents to succeed, whether they join Smart Choice for personal, commercial, or Express Markets. Ultimately, it's all about diversification. 

With so many networks and aggregators out there, what sets Smart Choice apart? 

What helps make Smart Choice stand out is our contract. Not only do we bring expertise, but our contract isn't exclusive. We partner with agencies to add value. We provide markets and share in the success together. If we don't enhance their business with extra markets and consulting services, there's no sharing. This alignment, where the agent's success means our success, fosters mutual growth. Agents maintain ownership of their business because they're independent agents. We provide options and tools to facilitate their success year after year. 

It's gratifying to see numerous agents sharing examples of how Smart Choice has aided their growth and diversification. Trust in our organization is earned through our longstanding reputation, exceptional personnel, and strong partnerships with carriers and agents. Being part of Smart Choice is like being part of a supportive family. 

What negative feedback have you encountered, and how does Smart Choice address it? For instance, how do you respond to concerns about commission structures, such as the 80/20 versus 70/30 differences, when agencies are comparing networks? 

That's an excellent question, and the answer is quite simple. We're one of the few organizations with a commission cap, which we call "achieving leadership status." Once an agency reaches $67,000 in gross commissions with us, they hit that cap. Any further growth beyond that point means 100 percent of the commissions go to them.

Additionally, they get to share in contingencies and bonuses. The more they grow, the more financial benefits they reap. This aspect of our contract strengthens our partnership and ensures that the agent benefits as they succeed.

You've recently transitioned to a new role at Smart Choice. Could you describe your new position and what you aim to accomplish in this role?

At the start of 2024, I was promoted to the role of Senior Vice President, Personal Lines. In this capacity, my main goal continues to be in line with our previous focus: ensuring profitability for our carriers and agents within the personal lines vertical. We continue to prioritize bringing markets to our agents and facilitating profitable partnerships between them and our carriers, all while delivering value to consumers. 

My background leans towards numbers and analysis, which allows me to contribute to those areas. However, I recognize that this industry is built on relationships. Therefore, my aim is to blend analytical insights with strong interpersonal connections. This balance has always been a hallmark of our organization, and I'm committed to maintaining it moving forward. 

How can independent agents maximize profitability during the hard market?

Effectively engaging with customers through consultative conversations during the hard market is crucial for building retention across customers, policies, and carriers, which in turn has a significant impact on financial outcomes.

For instance, in personal lines, introducing telematic solutions offered by many carriers can provide substantial discounts to consumers. By discussing options such as telematics, which are easily accessible through mobile devices and can lead to savings of up to 20-30%, agents can deliver lasting value, nurture customer retention, and bolster profitability. 

Many agents express a desire to transition from personal lines to commercial, citing it as more lucrative. What arguments would you make to persuade agents to remain in personal lines?

Rather than advocating for one over the other, I believe in the power of diversification. Having both personal lines and commercial offerings is key. Often, personal lines clients also own businesses, highlighting the importance of catering to all their needs. Including Express Markets in your office ensures you can provide solutions for various customer profiles, from personal to commercial. 

The insurance market goes through ups and downs, where tough times in one area can be balanced by good opportunities in another. You can see this balanced approach in how Smart Choice has grown over time. Smart Choice keeps a good mix of personal and commercial insurance, so it can adjust when the market changes. While we were once predominantly focused on personal lines, we've since diversified.

This strategy has allowed us to attract and support more agents, steadily increase our revenue growth, and expand our organization to over 10,000 agencies. Our success lies in offering diverse solutions and guidance to empower agents to thrive. 

Is there one specific message or detail you'd like to highlight, whether related to your position, market insights, or any other aspect you feel is important for people to be aware of?

One important aspect to highlight is the insurance industry's vast potential for growth and opportunity. Unfortunately, we often fall short of recruiting new talent. Personally, I stumbled into this industry, but I've been fortunate to have incredible mentors along the way.

I challenge everyone in the industry, whether you work for a network, agency, or carrier, to actively mentor young people.

There's so much to learn and so many opportunities available in this caring and dynamic field. If more people understood the positive impact insurance has on people's lives, especially during critical moments, they would see what a truly wonderful industry it is.