THE CHANGING FACE OF THE INDEPENDENT AGENT
Well-known song rings true for this young agent
who launched his career independently
then joined the family agency
By Elaine Tolen
Hugh M. McGowan, CPCU, is vice president of McGowan Insurance Group, Inc.
When Hugh M. McGowan, CPCU, left his hometown of Indianapolis, Indiana, to attend the University of Notre Dame in South Bend, Indiana, he was not certain that he wanted to follow the insurance path established by his father and grandfather. "Having grown up in the insurance industry, it was always 'there,' but my dream was to become a sports broadcaster," he explains.
In 1930, his grandfather, William K. McGowan, Sr., and a friend started what later became McGowan Insurance Group, Inc. The new company successfully survived the Great Depression, initially focusing on personal lines, but soon took advantage of commercial insurance opportunities. "An early major opportunity for the agency was a discussion of products liability coverage for future pharmaceutical giant Eli Lilly & Co. in 1939," Hugh says. "Eli himself was the contact on the account."
Hugh's father, Hugh B. McGowan, became agency president in 1977, and has overseen "phenomenal growth" since then, according to the younger Hugh, who is now vice president of McGowan Insurance Group, Inc. An initial staff of three has grown to 25, and a modest office in the old King Cole building has given way to executive furnishings in a tall office building overlooking the city's beautiful and historic Monument Circle as well as the Indiana State Capitol.
From childhood, Hugh loved sports and broadcasting. He was active in speech contests and sportscasting in high school. Planning for a sportscasting career while at Notre Dame, he was a student sportscaster and was the "Voice of the Fighting Irish" for the football and basketball teams. He even attended the Sportcasters Camp of America at Loyola Marymount in Los Angeles, California, for more intensive training.
Sportscasting had its drawbacks though, "including extensive travel and an uncertain career path," explains Hugh. Many evenings and entire weekends were spent at games and in travel. Because of this time constraint, Hugh decided not to pursue this field. He thought about law school but decided to major in finance.
During his senior year, Hugh says, he began thinking more about going into insurance. But even then, he still wasn't certain he wanted to align himself with his father's agency. "I really wanted to do my own thing and make a name for myself," Hugh remembers. "Working in a different city as well as a different company (from the McGowan agency) was equally important in establishing my career independence."
Hugh contacted The Chubb Group in Chicago about the possibility of working there. The company hired him as an underwriter in the Department of Financial Institutions (DFI)--a job that Hugh says was the "best of both worlds" because he was involved in both finance and insurance. After a training period, he was given his own list of Chicago DFI accounts to handle.
"While at Chubb DFI, I had a real opportunity to learn," explains Hugh. "We had some employee turnover in the department during that time, which increased my level of responsibility. It was a bit overwhelming at the time, but in retrospect was a great experience."
"Automation is good, but we're still in the people business. We younger agents have to keep up with the fast pace but not lose perspective."
--Hugh M. McGowan
In his office overlooking downtown Indianapolis, Hugh M. McGowan divides his time between the operations of McGowan Insurance Group, Inc., and servicing commercial and personal accounts.
"I really enjoyed the work at Chubb," Hugh continues. "The company does a good job of training new employees and letting them take on the responsibility of handling a book of business. Chubb still hires a lot of college graduates, knowing that some of them will not stay with the company on a long-term basis. We need more companies like that who will give college graduates a chance to work in our industry. Chubb also helps young agents who are just starting out by giving them more access to a national market."
After working about two years at Chubb, Hugh says the time was right to join McGowan Insurance Group, Inc. According to Hugh, the agency's resources and staff had grown to a size that offered a good learning opportunity, and the agency's structure had recently changed. "We had some business that needed a producer to step in and service it. The opportunity to service and sell to these clients was a "win-win" situation. I was able to fill a void for the agency and also gain some real valuable experience and confidence," he explains.
Since joining McGowan Insurance Group, Inc., in January 1995, Hugh has worked in most areas of the agency's operation. He oversees all of the agency's automation and handles human resources with his father. About 50% of Hugh's time is spent on a $1.25 million commercial book of business and, with his father, he handles personal lines. "I came back to work with my dad, not to take over," Hugh explains. "Working with someone as experienced as my father and observing his expertise has been a great education."
Family support has been key to Hugh's career success. "I have a very supportive family," he says. "My father is my boss, but he's also my mentor and confidant."
Hugh also gives credit to his wife, Kate. "This business involves many long hours and you never really leave it at the office," he says. "Sometimes you get calls in the middle of a Saturday night movie at home, or as you're out shopping. Kate is very understanding of the time involved and very supportive."
Hugh M. McGowan (center) stands with his father, Hugh B. McGowan, and a portrait of his grandfather, William K. McGowan, Sr., who founded McGowan Insurance Group, Inc., in 1930.
According to Hugh, McGowan Insurance Group, Inc., is distinctive in several ways. "The agency has a good reputation within the industry," he explains. "Being a family business, we also have a rich heritage. We're stable, we're not going to sell out. We are committed to Indianapolis and to Downtown."
Hugh says that another important feature of McGowan Insurance Group, Inc., is its team of
25 employees. "Our CSAs are not people performing clerical jobs. We call on each other for opinions. There is an even relationship among employees and we work together to figure out the best way to handle a problem or situation." He says the agency's six producers have varied backgrounds and areas of expertise which add much to the teamwork method.
Part of McGowan Insurance Group, Inc.'s, growth since the 1970s has come from 15 agency acquisi-tions, according to Hugh. Some of these acquisitions have been books of business from producers who are retiring. "Money is part of the reason they choose our agency to sell to, but also they want to know that their business will be taken care of with integrity. Producers work a lifetime to build up a book of business among associates and friends. They want an agency they can trust to continue giving quality service to their clients," Hugh says. He had the opportunity to go out on business calls with some of these experts and says he gained confidence from watching them work. "They had a profound effect on me," Hugh shares.
The agency has a broad spectrum of clients, according to Hugh. "We work with 'mom and pop' shops, dry cleaners, bowling alleys--as well as international companies, financial institutions. That's the fun part," he says. "I may work with a homeowner in the morning who has had homeowners insurance with the agency for 40 years, and meet with a large commercial prospect in the afternoon."
Besides learning more about customer service since joining the family agency, Hugh says he has learned the importance of relationships with carriers. "We have many good company partners," he explains. "We are true middlemen in that we have to keep both our clients and our carriers happy." One of Hugh's goals is to build bigger and stronger relationships with companies. "We don't take our relationships for granted," he says.
Another goal of Hugh's is to improve the agency's infrastructure, so he can step back a little from the day-to-day operations and "get out and sell." He says, "You should never lose a handle on the day-to-day, but it shouldn't consume you, either." He wants to grow his book of business as well as get involved in new sales and marketing initiatives to further the agency's success.
Hugh's long-term goals also include more extra-curricular involvement in the local business community, as well as within the insurance industry. In the last few years he has participated in some national industry meetings, and last year was chairman of the Indiana Young Agents committee. During his tenure, the committee was named the 2000 National Young Agents Committee of the Year. "It was an exciting honor and something we want to continue building on," he says. Other high points during his leadership included a successful spring conference and a first annual Young Agent bowling tournament, which presented opportunities for young agents from around the state to come together for networking and socializing, Hugh explains.
This year, Hugh serves as immediate past chair of the Indiana Young Agents. He is also on the Independent Insurance Agents of Indiana (IIAI) Convention committee. He recently joined the board of the IIAI and is on the board of the Central Indiana CPCU Chapter.
Hugh has seen the insurance industry change greatly since he was a boy visiting his dad's agency. "In earlier years, my dad didn't have eight e-mails, five voice mails and three faxes waiting for him on a Monday morning," Hugh remembers. "Business is much more fast-paced now. Because of advanced technology, people expect instantaneous response."
He continues: "Our industry continues to be more and more automation-driven. Automation is good, but we're still in the people business. We younger agents have to keep up with the fast pace but not lose perspective. We can't forget to keep selling."
Hugh displays loyalty and satisfaction in his family, his city and his work. "I really enjoy what I do and I take tremendous pride in my profession, which makes it easier to work longer hours. Working with my dad has been an invaluable experience," he adds. "I appreciate the opportunity I've been given." *