A family business meeting includes David L. Specht, president of ERA Specht Realty, Inc. (left), Donald F. Specht, chairman of the board and Pamela Specht, CIC, president of Specht Insurance Group.
When Pamela S. Specht entered the family business in 1979 with a Muhlenberg College degree in her hand and fire in her eyes, she told her father she wanted a different kind of challenge. Specht men had made their mark in Southeastern Pennsylvania real estate sales. It was time, she reasoned, to show how well a woman could do.
"Try down the hall," Donald Specht, company chairman, said. "That's where insurance is."
That's where the success has been too. Today, less than 20 years later, Pamela is president of Specht Insurance Group, Ltd. The agency has grown from a staff of two to ten; from a single room to a corporate office suite in one of the region's fastest growing communities; and to writing more than $5.5 million in annual premiums.
The Royersford, Pennsylvania, agency was founded by Pamela's father in 1965; and when Pamela joined the firm it was writing $325,000 in volume, mostly homeowners business as an accommodation to the real estate operation. The agency has succeeded by broadening its client base, aggressively seeking niche opportunities long before that phrase became a popular marketing concept, and by providing outstanding service.
When Pamela started out, "I had virtually no insurance knowledge at all," she recalls with a laugh. She had taken only one insurance course at Penn State, but she was determined to learn, and her intuitive business sense and degrees in accounting, business administration and economics served her well. She took and passed the P-C licensing exam in February 1979, and then the life-health exam three months later. She became a broker after only two years.
To increase the agency's volume, Pamela made greater use of commercial insurers, including Harleysville, that already had a relationship with the agency. She studied the competition, too, and in only a few months bought up a crosstown rival. The purchase immediately gave Specht Insurance Group, Ltd., additional bulk, leverage and a broader range of carriers.
However, competition for commercial business was strong, and Pamela realized she needed some way to differentiate the agency from the numerous competitors. She decided to become a specialist that would focus on particular markets and develop an expertise in those markets. Today the agency's commercial lines niches include construction, daycare, municipalities, motorcycle and recreational vehicle dealerships, restaurants and delis.
"Working in certain niches makes our job much easier," Pamela notes. "We put all our energy into learning about an industry so we can provide them with the coverages they really need and the service they want."
In some cases finding clients has been a hand-in-glove exercise. Specht's real estate market dominance often resulted in referrals to the insurance division. "We already knew several contractors in the area, and they knew us," Pamela explains. Relying on Specht for insurance coverage was a logical extension of the relationship in several projects.
But there's more to it, Pamela warns. "It's extremely important to keep current customers happy," she says. Customer service is key. We're constantly pressing everyone at the agency on service, service, service. Because when you provide excellent service, customers will send other people to you."
Contractors serve a case in point. "We've been successful, our retention rate is high, and our good reputation spread through word of mouth. We get probably four or five calls daily from contractors, thanks to referrals from our current clients."
Of course, having a good program helps too. Pamela gives credit to The Maryland Insurance Group, the company's production underwriter, Caroll McClimans, and its Home Builders Insurance Program. Maryland has more than 4,000 agencies using the program nationwide, and Specht Insurance Group, Ltd., ranks 22nd among them in total premiums.
The agency has been successful in finding similarly attractive programs in the daycare and equine mortality markets--horse insurance. The Spechts are horse owners themselves, and they know their way around the stables. Pamela readily identified the needs breeders, owners and caretakers faced in insuring their animals, and those of others. Finding the right package with the proper components at the proper price took some digging. Her research and her familiarity with the market continue to pay off.
It's the same in daycare. One client, a national franchiser of early childhood education and care centers, told Pamela of his vision for a comprehensive insurance package that covered all possible needs, for corporate and franchise matters alike, in all 50 states. Turning the client's vision into reality took almost a year, as Pamela and her staff did their homework. The business has blossomed handsomely; Specht Insurance Group is the agency of record for 49 of 50 franchisees, and more are being added each month.
Being able to effectively communicate all that the agency can do for clients demands market savvy and good collateral materials. For the former Pamela has relied in the past 10 years on consultant Jack Fries, a principal in Fries and Fries Consulting of Morgan Hill, California. According to Pamela, Fries has helped to provide direction and has aided the firm in discovering untapped potential. He also recommended that the agency join ARM Mid-Atlantic, a member of Associated Risk Managers, International, an organization Pamela credits for helping to broaden the agency's product lines even further.
Pamela also is a member of Network 2000, a close-knit group of 30 successful agencies from across the country which meets twice a year. "We get together to discuss markets and what they're doing," Pamela says. "It often sparks an idea about an area where we can grow, or where we can improve what we're currently doing."
To support its marketing efforts, the agency has developed an extensive inventory of brochures, contact letters, advertising and other items to "get the word out" on its specialty lines. All materials are consistent in theme and appearance, which reinforces recognition and helps in account rounding campaigns.
However, in today's intensively competitive market, account rounding isn't accomplished simply through flashy advertising. More and more agencies are chasing the same niches. So Specht Insurance continues to emphasize service, including quick settlement of claims. They work at developing trust and then keeping that trust by providing excellent service at both ends of the transaction.
When claims occur, "Our people know that we emphasize the need for quick settlement. We know the adjusters who work in our niche areas. We're able to work with them to make sure claims are handled expeditiously," says Pam.
The people of Specht Insurance are active in industry organizations and community organizations. Pam herself is on the board of directors of ARM, is a member of The Maryland's HBIP Advisory Council and has just been invited to join the advisory council for Agency Services, Inc. She also is active in the Independent Insurance Agents of Pennsylvania and the Professional Insurance Agents Association.
In addition, Pamela provides local leadership to chambers of commerce and a contractors organization, coaches a junior high school cheerleading squad of 22 girls, and is president of a local youth football organization.
Seven years ago that football organization, the Boyertown Midget/Mites Football Association, needed both new uniforms and the players to fill them. At the time its teams involved only 55 boys. Pamela and other parents combined to form what she describes as "a great group of people for the effort." They raised more than $150,000 in funds, and so strengthened the program that tryouts have expanded to a field of between 185 and 200 youths each fall.
It's this kind of effort she brings to the agency, with her simple message of "service, service, service." At least it sounds simple. Specht Insurance Group is a well-deserved recipient of our Marketing Agency of the Month recognition. *
©COPYRIGHT: The Rough Notes Magazine, 1997