Smart Choice’s Ashley Wingate joins Insurance Business TV after his firm was named among this year’s five-star networks and alliances. In this interview he delves into what differentiates the network from the rest, how its territory managers are different, and how the company can help agencies diversify their revenue.
[00:00] Ashley Wingate: We don't charge any fees to join our network. We don't charge any monthly fees.
[00:06] Paul Lucas: Hello everyone, welcome to Insurance Business TV as we meet one of this year's winners at the Five Star Networks and Alliances. Yes, every year Insurance Business America asks its retail broker audience what they think of the services and advantages supplied by networks across the US.
[00:22] And today we're meeting Ashley Wingate. He is executive vice president, sales and distribution at Smart Choice who can talk us through his firm's success. Ashley, welcome to Insurance Business TV.
[00:32] Ashley Wingate: Thank you Paul, very glad to be here and appreciate you having me.
[00:35] Paul Lucas: So obviously Smart Choice is doing something right as this award would suggest. Tell us what it does to kind of go beyond what is expected of a network. So I guess what level of expertise does it provide that is perhaps a little bit different to other networks and indeed how are those Smart Choice territory managers differentiated from those elsewhere?
[00:56] Ashley Wingate: So I think what sets our territory managers aside is they're out there in the field every day working with our agency partners, working on their needs, going deeper, getting to know what they need, trying to add the carriers or maybe the support they need. It could be helping them with errors and omissions. It could be helping them with a comparative rater like EasyLinks. It could be helping them with a management system.
[01:23] So it might not just be market access that day. They ultimately become a trusted advisor in our roughly just under 12,000 agency members across the country. And so I really think that team effort of everyone at the home office at Smart Choice and in the field working with our agency partners that cares every day about supporting our agents and the network and helping them succeed is really where the winning combination comes together.
[01:53] Paul Lucas: I wanted to talk to you a little bit more about those field teams if I can because it sounds like from what you're telling me that they don't just get agencies started. Perhaps they participate throughout the life cycle, so start-up, growth, acquisitions, transition. Is that correct?
[02:08] Ashley Wingate: More agents each and every year choose Smart Choice than any other network out there. We're proud of that, but I believe it's the starting process where the territory manager is working with that agency partner to decide where we're a fit to work together, but that's just the start.
[02:27] And so, they are a part of the agency cycle. They are a part of the growth. They are a trusted advisor that when it comes time to perpetuate the business down to a son or daughter or a spouse or an agency manager that's been with them, our territory managers and state directors are right there to support them through that transition.
[02:49] If they don't have that perpetuation plan inside the agency, then we can help them with mergers and acquisitions, as well. So, our Smart Choice territory managers and state directors across the country, they're involved with our agencies throughout the entire life cycle of that agent.
[03:07] Paul Lucas: Talk to us as well about how you help agencies diversify their revenue, and indeed, why is that so important?
[03:15] Ashley Wingate: I think a lot of agencies across the country through the personal lines hard market that we all just went through, one of the hardest and longest personal lines markets we've had in a long time, learned a valuable lesson of diversifying the portfolio inside the agency.
[03:34] Smart Choice had really made a move about 10 years prior pushing commercial lines and what we call our Express Markets vertical, and that's really our large wholesale brokers and specialty niche markets like coastal homeowners. We have a partner, Hagerty Insurance, who does classic cars, not just your everyday auto and home.
[03:56] And so I think for us as a network because we had diversified our options and what we could offer our independent agency partners in the commercial space as well as in some of the E&S space and specialty niche markets, we were able to come alongside them when the personal lines market slowed up.
[04:16] There was a lot of slowing and pausing in new business as they worked to regain their traction in the market to move forward. And so for our agency partners, having that access to write that business helped them survive that incredibly challenging market where unfortunately we did see some smaller agencies go out of business.
[04:39] You did see some smaller carriers go out of business that were focused only on personal lines as well. So I think diversification in the portfolio as a network like we do is incredibly important, but I also believe diversification for our agency partners is key for their long-term success.
[04:57] Paul Lucas: Of course, diversification perhaps applies to the contracts that the different insurance networks out there offer as well. So tell us about some of the concerns that an agent might have with a presented contract and indeed how is the Smart Choice contract different?
[05:12] Ashley Wingate: Some of the contracts out there lock agents into long-term agreements. Some have large upfront fees. Some have monthly fees just to be a part of the network. Some take an ownership position in the agency as well.
[05:29] And so what we like to do at Smart Choice instead of pushing anything about what any other specific network does, we like to just make our agents aware of what some other networks choose to do and encourage them just to read those agreements, review those agreements, and pick the best fit for themselves.
[05:47] That's also where we turn to your second question and talk about the Smart Choice agreement. So, the Smart Choice agreement is one of the most agent-friendly agreements out there.
[05:57] We don't charge any fees to join our network. We don't charge any monthly fees. We have a commission split that caps where an agent can make 100% over that cap leadership level. And we also share contingencies and bonuses.
[06:13] And so, when you look at all four of those things that we do and you look out in the marketplace, we have not seen another network doing all four things. And then we think that's one of the big differentiators for us and why you see the recruiting success and more independent agents across the channel choosing Smart Choice as their network to join.
[06:35] Paul Lucas: Ashley, what you're doing now is working well as this award would suggest. But, tell us a little bit about the future as well, if you don't mind. Ash, what new programs do you have coming up? Perhaps with a major highly popular carrier, if I can tease a little bit, that is perhaps going to benefit agents that are partnered with Smart Choice.
[06:54] Ashley Wingate: We recently partnered with Geico and Geico has been a huge part of Smart Choice growth this year.
[07:01] We've been able to appoint several thousand agents in our network and will appoint many more, probably a total of 5,000 or more agents ultimately when we're done. And then, of course, going forward as we recruit new agents, they will work with Geico and many other carrier partners out there.
[07:21] So, for Smart Choice, our goal is always to continue to have market access to help our agency partners succeed.
[07:29] Paul Lucas: Clearly, a lot on offer with Smart Choice, Ash. I'm sure a lot of brokers will be reaching out to find out more. Many thanks for your time today and of course, thanks to you for watching.
[07:38] We'll see you next time right here on Insurance Business TV.
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