Maintaining continuity by building ownership at an early stage is a critical component in the success of the Insurance Office of America, its principals say.
The kind of producer IOA wants is not someone who is going to come into the agency, build a book and then leave with it. "We are looking for someone who wants to build IOA. We want a team player–someone who is willing to sacrifice for the team," said IOA President Dave Maki.
Take Jeff Lagos, a senior vice president, who at the age of 38 is one of those who found a home at IOA. He was one of the first who saw the baton of ownership passed to him by the older generation.
In his case, he said, he was not sure if he wanted to become an independent agent. He spent 10 years on the marketing side with a carrier, but the constant relocating that came with the job became tiresome for him and his wife, with both wanting to settle in Florida.
About five years ago he met Vern Duenow, a senior vice president at IOA, and "we hit it off well–we had similar personalities…He felt I would be a good match to work with his clients. He thought the people who connected with him would connect with me."
Instead of buying the book outright and taking over the business, Mr. Lagos and Mr. Duenow worked with one another visiting clients for a year-and-a-half. The book was subsequently transferred to Mr. Lagos. The retention rate has remained high and Mr. Duenow has benefited under a long-term buyout agreement that pays him an income over a 10-year period.
"It's been a great situation," said Mr. Lagos, noting that while Mr. Duenow receives a set income, Mr. Lagos brought a good foundation from which to grow his own book. He said he received a lot of offers from other agencies, but it was the IOA culture and support staff that won him over.
Another member of the IOA team who is among the new generation coming into the business is Heath Ritenour, 29, a senior vice president and son of the company's CEO. At 19, while working in the office on summer vacation from college, he discovered his own passion for insurance and decided he would turn it into a career, which "blew my father's mind," he recalled.
He has built his own book, under the same agreements as every other producer, with no special treatment. "It is important to me to earn on my merits and not on my last name," he said.
After 10 years of mentoring with many producers and working in every department in the agency, he now helps recruit the next generation of agents and service executives for the agency, which takes on interns from across the country–about 10 last year.
"We are straight-shooters–we don't sugar-coat," he said. "I don't paint a rosy picture [at the start], but I paint a rosy picture at the end…I want to be clear that this is not easy. If it were, everyone would do it, but if you work hard and do everything the right way, you will be very successful at IOA."
Meanwhile, in an agency where the managers depend on sales production for their income, one thing executives at IOA will tell you is they couldn't do it alone, giving plenty of credit to their support staff.
"What we are trying to build is an agency where we are breaking down the barriers between staff and sales," explained CEO John Ritenour.
To give the staff an interest in the agency, Mr. Ritenour came up with an Employee Stock Ownership Plan tied to their 401K, giving stock to employees based on their years there. "It just made the whole place come together as a team," he said.
Quotebox for Maki Photo:
"We are looking for someone who wants to build IOA. We want a team player–someone who is willing to sacrifice for the team."
IOA President Dave Maki.
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