INDEPENDENT AGENT

Juggling family time, client needs & changes in legislation keeps Steve Brooks on his toes

By Laura Biddle-Bruckman laurab@in.net

A new generation is moving into leadership roles within our country. We see it in our elected officials as well as in the private sector. Our own industry faces the challenge of change too. If the independent agency system is to survive, it is our collective responsibility to help attract younger agents to the field of insurance. The good news is that numerous young, dynamic agents are striking out on their own, working in key roles within existing agencies or perpetuating family agencies.

Over the next year, on a bimonthly basis, we will be profiling a number of young agents in our series "The Changing Face of the Independent Agent." Is this next generation different? How are they acquiring business? What can we all learn from their experiences? What kinds of struggles do they face? These are some of the questions that we will examine in our look at the "new" agent.

Getting there...

While six out of eight young agents are challenged with taking over family businesses, Steve Brooks of Calabasas Park, California, is going it alone. Steve has been on his own since 1989, and the past few years have been challenging. But Steve has never looked back with any regret even though the first few years were definitely lean.

A graduate of California State University, Northridge, Steve began his insurance career working for his own insurance agent. His agent recruited him because Steve had sent him so many referrals. At the time, Steve took a cut in pay to make the move. But a vision of eventually owning his own agency drove Steve, and he stayed there for four years, learning the business. The plan was for Steve to join as a junior partner and eventually take over the agency.

It began as a father/son type of relationship minus the biological ties. But as is sometimes the case with "real" family, there was some reluctance by "Dad" to delegate power or responsibilities. Steve's attempts to make even minor changes in the workflow of the agency resulted in other employees going to the owner who would often override Steve's authority. When there was an uprising over a particular type of paper clips (Steve ordered multi-colored paper clips and the owner preferred the standard silver), Steve felt he was ready to take the leap and go on his own. The owner paid Steve for his small interest in the agency and he was out on the street nailing up his shingle.

Timing

Steve had developed good working relationships with a couple of the biggest carriers, but it wasn't as "easy as he thought it would be." Even with the positive working relationship, the companies still wanted financial statements and business plans. According to Steve, it wasn't just a matter of saying, "Hey, I am on my own now!" Shortly after he opened his agency in 1989, Proposition 103 was passed in California. Proposition 103 shook up the auto insurance industry, and many carriers pulled out of the state of California. Rates were frozen and auto insurers had to rebate money to consumers. Further, it dictated underwriting guidelines, which made companies very nervous. In the beginning Steve was forced to concentrate on other lines of personal insurance while the auto market settled down.

Steve's personal life was beginning to take a major turn as his wife was pregnant with their first child and for 18 months after starting his agency, Steve took no paycheck. He did it all and hired temps when necessary but had no real employees. After 12 months, now with a new baby at home, Steve said the realization really hit that he had limited time to pull this together. He was working 70-hour weeks and doing it all on his own. But he was seeing progress and nurtured his business along. He now has about 2,000 clients.

In recent years the California auto market has improved and companies now are seeking auto business again but are reluctant to write homeowners. Steve's marketing efforts of late have been focused on account completion. His strongest source of new business is referral business, but he recently made the decision to do some direct mail marketing for auto insurance.

Interacting with peers

Shortly after starting his own agency, Steve was invited to an IIAA Young Agents meeting. Through his association with the IIAA, Steve has been able to grow professionally and personally from spending time with his peers in the industry and developing his relationships with companies. As the owner of a small agency, Steve has found that the opportunity to build company relationships has been critical to his success. He is on the council for Mercury Insurance and Safeco Insurance. In this capacity, Steve gains prestige as well as having the opportunity to give input on insurance issues within his key companies. Steve has a website through the IIAA and has a listing there but sees the future of the Internet in service and information rather than the actual selling of insurance. Steve also is active in his community and with his sons' sports teams.

Balancing

Steve's life has changed dramatically since he went out on his own a few years ago. He now has two sons to rear and is as dedicated to their upbringing as he is to his insurance business. Steve coaches his sons' baseball, soccer and hockey teams, devoting the same kind of energy to rearing his children as he does to his business. Steve also is the current chairman for Young Brokers and Agents Committee for California. So his life continues to be busy; the 70-hour weeks continue...but that is part of being a young agent and a member of the next generation of insurance professionals.