By Laura Biddle-Bruckman laurab@in.net
"A man to carry on a successful business must have imagination. He must see things as in a vision, a dream of the whole thing."
--Charles Schwab
For 13 years, the office of Community Insurance Center, Inc., was located in a basement on Chicago's south side. However, "the view from the basement," according to the agency's president, Milton Moses, "did not obstruct the skyward vision of the agency's direction."
Milton Moses was an enthusiastic 23-year-old when he began his insurance career as a debit agent for Supreme Life Insurance Company of America. Walking home from work on the day that he was hired, he decided to knock on a few doors. At one house, he met a woman whose husband had recently died and who was looking to purchase life insurance on herself and her children. Moses sold her the policies but had to call his manager in for back up, as he hadn't yet been taught how to complete an application! The next day he was the talk of the sales meeting. Moses recalls with a laugh, "Everyone was talking about the 'new guy' who just sold three policies."
Since his life insurance customers often asked him for other lines of insurance, Moses eventually decided that it would be easier to work for an agency that sold all lines. Through a contact he made in LUTC class, he joined what was, at that time, the largest African American-owned agency in Chicago. "I thought it would be so easy," recalls Moses.
In 1965, he got the call that changed the direction of his professional life. At 10:00 p.m. his telephone rang and on the other end was Ralph H. Metcalf. Of course Moses knew who Mr. Metcalf was, but how did Metcalf know who Moses was?
Metcalf was a legendary figure, having won medals in both the 1932 and 1936 Olympics, running with Jesse Owens. Metcalf was named the director of the Chicago Commission on Human Relations' civil rights department while concurrently serving as the Illinois State Athletic Commissioner from 1949 to 1952. In 1952 he was elected Third Ward Democratic Committeeman and won a seat on the Chicago City Council in 1955. In 1970, he was elected as the First District Representative. Metcalf worked hard to expand the rights and opportunities for minorities and minority-owned businesses. He fought to eliminate redlining and was a highly visible and well-respected community leader.
Metcalf, who had been given Moses' name by mutual contacts in the industry, was looking for someone to manage a separate venture, his small insurance agency, Community Center Insurance Agency, Inc. In the 3 1/2 years since it had opened, it had gone through four managers. The problem had been, according to Moses, that no one before really understood how to manage a property/casualty agency. Moses began by analyzing the existing book of business and found that the majority of the business was high-risk auto and that the agency had one carrier--CNA. The agency had about 10 commercial accounts. He met with CNA and found that the agency had a full-lines contract. He added a local company to service the small business market.
With this work done, Moses began improving the agency's internal procedures. An essential problem he identified was that incorrect information was being sent out. There were only three employees, so it was relatively easy to set up a cross-reference system. The agency had not been sending renewal notifications, a procedure Moses immediately implemented. He had employees concentrate on account completion and take industry courses to enhance their knowledge and professionalism. Within three months, the agency began to show its first signs of profitability.
Moses began targeting the businesses in the community. Access to the community was aided by Alderman Metcalf's name. It made getting in the door a bit easier, but as with all new businesses, it was necessary to build loyalty and credibility.
"Themain focus of educating clients is in making sure that they understand the concept of insurance. This includes telling them that
generally, insurance companies are fair..."
Milton Moses, president of Community Insurance Center, Inc., Chicago, IL
In 1967, Metcalf made the decision to devote his full talents to public service and Moses purchased the agency. In 1968, he purchased another agency--Campbell, Dawson, Metcalf, Harvey and Holman--names that represented the black political power in Chicago at that time. Of particular interest was one large account. It was comprised of several different businesses and apartment buildings and the account was not being handled properly. Taking care of these people would significantly help his business.
The next few years were devoted to growth of the agency. In 1973, Moses installed the first generation of data processing equipment; in 1974 changed the name to its present "Community Insurance Center, Inc."; and in 1976 moved the agency to its current location. At that time, many businesses were moving downtown. Even then, Moses was focusing on being a neighborhood business and downtown identified with no particular neighborhood. So he broke ground and built his roots deeper on the south side of Chicago.
While many agencies concentrate on niche marketing, this can still pose a problem for an African-American agency. According to Moses, concentrating on particular markets is not the most efficient way for his business to operate. Discrimination still exists and often his producers find it difficult to get an appointment to meet with the decision-makers in some corporations. Therefore, rather than niche market, the agency "neighborhood" markets, finding products that will meet the client's needs. While the agency is licensed in 20 states, the bulk of the business written is in the Chicago area. "People have confidence purchasing insurance from someone they know or who is recommended to them," says Moses. Moses is also proud of the fact that a large percentage of his business comes from referrals.
He also works with business groups such as Straight Talk Economic Roundtable and the Cosmopolitan Chamber of Commerce to maintain visibility and cultivate contacts. "We discuss the opportunity to get a quote. We tell prospective clients that 'we can't promise the lowest price. We want you to get the best value for your dollar. Unless we get the opportunity to at least give you a quote, you will never know where you are.'"
Community Insurance Center, Inc., focuses on insurance education along with comparisons of coverage. "The main focus of educating clients is in making sure that they understand the concept of insurance," says Moses. "This includes telling them that generally, insurance companies are fair; they are not crooks and they are not trying to take your money and not pay your claim." Moses continues, "Our own industry hasn't had the best public relations and at times tends to come across to people that 'all we do is take your money and don't give you anything for it.' That little piece of paper doesn't mean anything unless you have a claim. People also need to understand that insurance isn't going to make you rich...you're not going to get everything new because you had a loss."
"A lot of what we do doesn't generate immediate remuneration. We try to look at the overall program. Commission is secondary. If we do a good job for our clients, we know we will be rewarded."
When it comes to claims, Moses believes in giving the extra measure of service. "You've got to hold the client's hand sometimes and let them cry and complain about what happened. It's important to acknowledge the value claimants may place on a car, for example, while making them understand that their 'value' may be greater than the car's worth."
In the spirit of serving the needs of the community, the agency has established relationships with life and health and P-C carriers that cater to the small business market. Minimum premium BOPs can be difficult to place or the business owner often receives little to no contact with his/her own agent. It is part of the philosophy of Community Insurance Center, Inc., to seek out these businesses. Moses realizes that he's not going to get rich writing minimum premium BOPs, but there is opportunity in writing the small business.
"A lot of what we do doesn't generate immediate remuneration," Moses says. "We try to look at the overall program. Commission is secondary. If we do a good job for our clients, we know we will be rewarded." In writing a minimum premium BOP, an agent should keep in mind that the business owner has many other insurance needs so there is a golden opportunity for reviewing the total account. "Many small business owners know large business owners or may grow to be large business owners...that's where your referral network is critical to success." Further, Moses points out, there is often little competition for the "small" account, and an agent who is focused on total account selling can harvest rich rewards.
Moses has also concentrated on creating a product to market to another under-served segment...group health for small business owners. "The sole proprietor or corporation with only a couple of employees has a difficult time securing health insurance coverage," says Moses. "We have a product to offer that fills a critical gap."
Still growing, still looking to serve the community, Community Insurance Agency, Inc., offers experts on staff in the area of property and casualty loss control and inspection services. This is part of the agency's philosophy of giving a client more than expected. They position themselves as "part of the staff" and become a client's insurance consultant without any of the consultant fees.
Their marketing effort is strong. "In this business if you have a marketing plan you have a career. If you don't have a marketing plan, you have a job," says Moses. Part of the current marketing plan is to concentrate on larger accounts and to show that a small agency can do a good job for major businesses. However, this is never done at the expense of the small accounts. Says Moses, "You don't want to grow one segment of the business at the expense of another segment. We don't intend to sacrifice the small business market."
As he has built his own agency, Moses also has reached out to help others. He is chairman of the Independent Insurance Agents of America Urban Opportunities and Minority Agents Committee. He also is chairman of the Insurance Vocational Education Student Training (INVEST) committee of the Kennedy-King College of Chicago.
Community writes 60% commercial lines and 40% personal. Moses says that he is comfortable to the extent that the business is good, but is still growing. Using premium volume as a measure, Community Insurance Center, Inc., has grown to become the largest minority insurance brokerage in the Midwest, according to Moses, with 17 full-time and 1 part-time employee. His son has also joined him in the business in the accounting department and is learning the ropes.
Things are still looking up at Community Insurance Center, Inc. "We still have that skyward vision," muses a still enthusiastic Moses. *
©COPYRIGHT: The Rough Notes Magazine, 1997