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THE CHANGING FACE OF THE INDEPENDENT AGENT Showing his mettle Patrick Watkins is the driving force behind his agency's exponential growth By Elaine Tolen Everything’s bigger in Texas, and in the city of Austin, that means big growth and big opportunities for independent insurance agents like Patrick Watkins, CIC, CRM, president of Watkins Insurance Group. “I am a true Austinite,” 36-year-old Patrick says. “I’ve spent my entire career here and have watched the city grow.” He certainly has had a lot to watch: In the 1990s, the now-16th largest U.S. city grew by nearly 50%; and as of 2005, the metro area had more than 1.4 million people. Located in the heart of Texas in the beautiful Hill Country, Austin has long been an attractive place in which to live and work. Known as the “Live Music Capital of the World,” Austin is home to the state capital and the University of Texas (UT). Austin is a center of technology, due in part to UT’s nationally renowned supercomputing facility and the university’s many collaborative ventures with other research and private entities. Dell Computer calls the Austin area home, and an Austin organization called LEARN has created an ultra high-speed fiber optic network here. Patrick’s experience in insurance has grown along with the city he loves. Growing up in an insurance family, Patrick started working as a 12-year-old in the agency his father, David, owned. His first jobs included cleaning the office and filing. “I never thought that I would go into insurance,” Patrick remembers, “but I guess it was in the back of my mind. It was a natural transition” to join the Watkins Insurance Group. Joining the firm in 1994 after attending Texas A&M University, Patrick assumed the role of president when his father retired in 2002. After he came on board in 1994, the agency staff was comprised of three full-time (including Patrick and his father) and two part-time employees in a quaint house that had been converted to an office. Patrick’s first jobs included handling payroll, account management and sales. Now—13 years later—the agency has 80 full-time employees in nine locations throughout the Lone Star State. At the time he joined Watkins Insurance Group, the agency did not have enough access to insurance carriers, according to Patrick. Determined to change that, in 1995 Patrick attended his first Independent Insurance Agents of Texas (IIAT) annual convention armed with production reports and other agency information, with the goal of securing more insurance company appointments. “That event was inspirational and got me focused,” Patrick recalls. “It was the first time I was outside of the agency making contacts. We began to make significant connections in the industry—with carriers and peers.” Building relationships with carriers didn’t happen overnight, Patrick concedes. “I spent those first five years attracting markets; now they are finding us. But at that time, many of them told me, ‘No, we’re looking for agencies that can make a larger first-year commitment.’ Those rejections had a way of motivating us to win folks over.” Right place, right time, right plan Patrick points to several factors that have influenced the agency’s growth over the past 13 years, less than 20% of which has been from acquisitions or book purchases. As previously mentioned, Austin’s economy has been booming for years. “Companies all over the country like doing business here,” Patrick explains. “Austin is a very competitive market because it’s a desirable place to do business from the insurance company perspective relative to other parts of the state, primarily due to having less catastrophe exposure.” While the high-tech industry is a big part of the economy, Patrick reports that the city has diversified and a number of industries can be found here. And while the Watkins agency has a few specialties such as high-tech companies and condo/homeowners associations, Patrick describes it as a diverse generalist agency. “And I’m very proud of that,” he says. “I can work with a plumbing contractor in the morning, a software developer midday and a tool manufacturing company in the afternoon.” The agency’s book is 48% personal lines, 40% commercial lines and 12% employee benefits. When the agency was founded in 1949, Patrick explains, it was originally a division of a mortgage company that sold homeowners policies to mortgage customers, “so we’ve been in personal lines from the beginning.” “From 1970 to 1995 direct writers took a lot of business away from independent agents,” Patrick says. “A lot of agencies steered clear of personal lines, but we didn’t. At that time, commercial accounts were the focus of independent agencies, but now personal lines have gained new popularity with agencies. So as a large personal lines writer, we’re a little ahead of the curve. We compete against direct writers a lot, and win most of the time.” In addition to being in a thriving part of the country and having a solid book of business, another key to the Watkins agency’s growth and success has been the determination of Patrick’s father to think progressively about perpetuation planning. “In many family-owned agencies there’s a problem with transfer of ownership. Perpetuation is not handled in a timely manner,” Patrick observes. “My father is a visionary; he has talked about the importance of youth in the agency since day one. He has promoted and supported young employees. Right after I was hired, my father and I began bringing key team members on board to generate growth. My cousin Rodney Watkins was first, followed by Mike Mosley and another cousin, Rae Blevins. All three have become partners and remain central to our success today,” says Patrick. To ensure a smooth transition, “five years before Dad wanted Rodney and me to take the reins, he started turning over the operations. He didn’t put limitations on the other employees or me about what changes we could or couldn’t make; he helped us.” While officially retired from day-to-day operations, David Watkins remains chairman of the board. He is in the office almost every day, according to Patrick, and is a great resource: “our biggest champion.” Another great resource and mentor to Patrick was a principal at a competing firm, Andre Juneau, who passed away in February 2006. “He was a super producer—he wrote more business than anyone I’ve ever known. People met him and loved him. He had so much energy and was upbeat about everything. He was a model that I wanted to follow; a roadmap for life and work.” Gaining momentum Growing from one office to nine in the last 13 years included establishing “the East Texas hub,” Patrick notes. Rodney Watkins opened a branch office in the East Texas town of Mineola, and eventually added four more locations in the area. “After a successful career in retail management, Rodney wanted to move back to his home town,” Patrick explains. “So he got licensed and set up an office in Mineola. Within two years of opening that office, it was generating 100 policies per month, not bad considering the town’s population is 5,000. Rodney is a tremendous asset to the agency.” The Watkins agency’s growth—and increase from five employees 13 years ago to 80 employees today—has come from a systematic approach, says Patrick. “Our goal is to serve our clients; everything else follows. The revenue will come if you do the right things while moving in the right direction. “To create an agency that is consistently focused on service, we started by investing in our people through professional development, as well as in systems and technology,” Patrick explains. “All of our employees are licensed and are encouraged to earn professional designations. We’ve gone out of our way to attract good employees and train them. Bringing in great people and creating a culture built on integrity, combined with good products and capabilities, will produce impressive results. Without first focusing on the culture inside a company, customer service is nothing more than protocol. It has to be an inherent driver at all levels. “When you have a positive culture, positive energy is a natural result, which creates positive production,” Patrick continues. “Many agencies don’t have energy and can’t get their people to try new things. We talk daily with employees about what we’re writing. We don’t sit around. We expect to write new business every day. We have the infrastructure in place to take advantage of new opportunities.” Obviously Patrick and Rodney can’t talk to all 80 employees every day, but they are in daily contact with the branch managers. “I don’t have to travel to these branches because we’re in constant communication,” Patrick explains. “I encourage feedback from the bottom up. We also stay connected as a firm through staff meetings and family-oriented picnics and holiday parties.” Investing in operations and employees affects more than customer service and employee morale, according to Patrick. “Insurance companies are interested in strong operations as well as employees in agencies because they can deliver growth over time,” Patrick explains. “In fact, we’re on the radar screen of all the carriers we represent. We also have all of the carriers that turned us down in the beginning!” Patrick recommends industry association involvement as well as serving on companies’ agent councils as a means to promote one’s agency and to grow professionally. He has been asked to serve on several companies’ agent councils, including Safeco, The Hartford, United Fire, America First and Travelers. “Getting the most out of markets and contracts are priorities for most agencies,” Patrick says. “You have to grow strong relationships to work in partnership with insurance companies to meet customers’ needs. Serving on agent councils can help shorten the time that takes. Carriers ask agents from firms they feel they can grow with to join these councils, so it’s a compliment to the agency to be invited to serve.” Patrick says that becoming active in the Independent Insurance Agents of Austin (IIAA) was another turning point in his career. For his work with IIAA, just three years after becoming a full-time insurance professional, in 1997, Patrick received the association’s Presidents Award. “I worked my way through the chairs and became president in 2002, when I was 31,” he explains. “The members of IIAA have been great resources and gave me confidence when I was a beginner in the business.” In 2005, Patrick was honored when the Independent Insurance Agents of Texas (IIAT) named him Young Agent of the Year. His involvement at the state level includes serving on a number of committees over the years. “I have met so many agents and insurance company people through these groups,” Patrick continues. In addition to his many industry involvements, Patrick gives back to his hometown in a variety of ways. He teaches a monthly workshop about the basics of insurance through SCORE (Service Corp Of Retired Executives) for people starting small businesses. He is an active member of the Entrepreneurs’ Organization as well as St. John Neumann Catholic Church. Patrick’s volunteer work in the community includes the Austin Children’s Shelter and Celebration of Love, a charity that provides food to those in need. What does Patrick do in his free time? “I have four children, so that’s what I do with my free time,” he laughs. Seriously, he says, “I have a wonderful wife, Misty, and we are blessed with Landon, Augie, Lily and Lawson. Soccer, T-ball, and homework all keep us busy as a family. “Family is a major commitment and priority for me, but it is a struggle to fit everything into 24 hours,” Patrick admits. “I have to draw the line professionally, but ultimately I do make sacrifices on both sides of the equation. The truth is, my family is the anchor of who I am. My business success grows out of that stability and happiness.” * |
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