A Group of Second and Third Generation Brokerage General Agents Helping Each Other Succeed in a Tough Business
Depending on which statistics you read, today the average age of an insurance producer is somewhere in the mid to late fifties. Another statistic we are constantly reminded of is that the number of individuals entering the insurance business has drastically decreased during the last decade. The major concern for many in the industry is how to recruit and retain successful young insurance marketers.
In the wholesale brokerage market, one of the best sources for recruiting the young is looking to the next generation—the sons and daughters of successful agency owners!
Members of the TYGERS are an excellent example of successful young BGAs. Each of the nine members has inherited his enthusiasm for the insurance business from his family, and most joined the family business as soon as they finished school.
Fifteen years ago, after spending time together each year at the annual NAILBA meetings, these young men decided to form a group. Initially they were looking for an excuse to get together a couple of times a year for a short meeting and to play golf as much as possible. They decided to call themselves the TYGERS, which at the time stood for “The Young Guns Early Retirement Society.”
As the years progressed, their meetings started to put more emphasis on the business aspect and, they say, “the business sessions are the most valuable component of our meetings today.”
They all roll their eyes now at their naiveté and say that if they were forming the group today it would be TOGWBWFS—the old guys who’ll be working forever society.
Let’s meet the TYGERS and hear what they have to say about the complex industry they all share.
Paul (P.J.) Doyle, Jr., LUTCF, is a graduate of the University of Southern Mississippi. He joined his father, Paul Doyle, Sr., at Crisis Management Agency in 1990. In 1997, the agency merged with the Harrison James Group, where P.J. was a partner and regional brokerage manager.
In 2002, P.J. and long-time business partner Angie Dean opened up a CPS affiliate office, CPS/Gulf States Brokerage, LLC, where he serves as principal/owner. In 2008, CPS/Gulf States Brokerage merged with Crisis Management Agency.
P.J. has been an active member of the TYGERS, Mississippi and Alabama NAIFA, Society of Financial Service Professionals and Rotary International (he is a Paul Harris Fellow). P.J. served in the U.S. Army from 1982-84.
John W. Felton, IV, started working at Tennessee Brokerage Agency in 1986. After graduating from The University of Tennessee in 1988, he became a marketing specialist for Manhattan Life Insurance Company in Cincinnati, OH. When Manhattan Life was sold in 1989, he moved back to Knoxville and became a marketing manager at Tennessee Brokerage Agency. When his father, William Felton, retired in 1996, he was named president. Felton’s sister, Karen, is also in the family business.
Felton has served on many local and state insurance association boards as well as local civic and social organizations. He is currently a member of the board of directors of LIFE Foundation, past chairman of the National Association of Independent Life Brokerage Agencies (NAILBA), past president of the National Association of Insurance and Financial Advisors (NAIFA)–Knoxville, and past president of TYGERS.
Parks LaMarche is president of CPS/Integrated Marketing and Insurance Services (CPS/IMIS). He founded CPS/Integrated Marketing with his father, Daniel L. LaMarche, Jr., in 1986.
LaMarche is a long-time member of the National Association of Independent Life Brokerage Agencies (NAILBA) and served on the board of directors from 2006 to 2008. He also served as co-chairman of the membership committee. He is a charter member and immediate past president of the NAILBA Charitable Foundation, and has served on its board of directors since 2007. He is also a member of NAIFA and NAHU.
LaMarche earned a BS degree in business administration from Colorado State University in Fort Collins, CO.
David B. Lea, III, is partner and vice president of brokerage at Broker’s Service Marketing Group and has been in the insurance industry since 1992. He worked at First Colony Life before joining his father at Brokers’ Service Marketing Group in 1993. Dave’s area of expertise is product analysis. He works closely with brokers on case design. Dave’s brother and fellow TYGER, Jason, and sisters Deborah Ross and Jeanne Hunt are also in the family business.
Lea is an associate member of the National and Rhode Island Societies of Financial Service Professionals and the National and Rhode Island Societies of Financial Advisors. He served as president of TYGERS, has been on the board of the National Association of Independent Life Brokerage Agencies (NAILBA) and is past president of the NAILBA Charitable Foundation. He is a licensed insurance agent and is NASD registered.
Jason Lea, CFP, is executive vice president at Brokers’ Service Marketing Group. He joined his father, David Lea, Jr., brother Dave Lea, III, and sisters Deborah Ross and Jeanne Hunt in the family business in 2000 and leads the company’s sales team. He graduated from Davidson College in May 1999 with a BS degree in economics.
Prior to joining Brokers’ Service Marketing Group, Jason Lea was employed by MFS Investment Management. He is past president of the Rhode Island Society of Financial Service Professionals and is a member of the Financial Planning Association of Rhode Island, the Rhode Island Estate Planning Council, and Boston Estate Planning Council. Jason Lea has served as president of the TYGERS. He is FINRA registered series 6 and 63.
Seixas “Chad” Milner, III, is the fifth generation of his family to be in the insurance business; he joined The Milner Group nine years ago. His great-grandfather Willis J. Milner, Jr., founded the company; his grandfather Seixas Groves Milner took over the agency in 1960, and his father Seixas “Chip” Milner, Jr., is currently CEO. There are six other members of the Milner family, representing two generations, who are currently part of the business as well.
Chad Milner is now the annuity director and vice president of The Milner Group.
Milner has been recognized by NAIFA–Atlanta as one of its 2011 Top Advisors Under 40. He has received the accreditations of Certified Senior Advisor, Certified Annuity Advisor, and Certified Annuity Specialist. He is currently working toward his masters in financial services through the Institute of Business and Finance.
Douglas A. Mishkin, a third generation insurance professional, is president and CEO of Algren Associates, Inc. Algren Associates was founded in 1960 and is one of the oldest brokerage general agencies in the United States.
Although Mishkin entered the family industry, he chose a different career path from his father and grandfather, who owned a large multiline and benefits firm. He started his career as an agent with MassMutual Financial Group and The Guardian Life Insurance Company. In 1993, he moved to the independent brokerage industry by joining Bufkin, Hefferon & Siegel, a brokerage general agency in Manhattan, as their brokerage manager. He was offered the opportunity to join Algren Associates in 1997 and, in 2001, was named president of the agency. In 2006, the title of CEO was added when Algren’s founder, Sydney Dickerman, retired.
Mishkin was 2008 chairman of the National Association of Independent Life Brokerage Agencies (NAILBA), previously serving as a board member for seven years and as chair of its membership committee. In addition to his NAILBA involvement, Mishkin is also an active member of NAIFA, LifeMark Partners, SUB-Centers, Professional Life Advisors Network (PLAN), MDRT, and TYGERS. Beginning in 2012, Mishkin will sit on the board of directors of the LIFE Foundation.
Mishkin is a graduate of Franklin & Marshall College in Pennsylvania, where he earned a bachelor’s degree in business management.
Jeffrey Mooers joined H.D. Mooers and Company in 1990, joining his uncle, Douglas Mooers, and his father, Donald Mooers. He is the third generation of Mooers in the insurance business; his grandfather, Hal Mooers, founded the agency in 1937.
After graduating from the University of California at Davis, Mooers started in the marketing department and in 2000 was named president of H.D. Mooers and Company.
Mooers is active in the National Association of Independent Life Brokerage Agencies, and has chaired both the marketing and strategic communications committees. He is president-elect of his local NAIFA chapter and founder of the TYGERS. He is a member of the Marketing Alliance.
Luke Ramsey grew up in the independent brokerage business. His father, Walter “Jiggs” Ramsey, started The ASA Group in 1977. Luke joined The ASA Group in 1999 after he graduated from The University of Arkansas, where he earned his degree in marketing.
Ramsey has worked in various roles at The ASA Group over the years. Currently, he is senior marketing director and enjoys working closely with agents to build their agencies. He specializes in trust services, advanced underwriting, large case design, impaired risk underwriting, CASE negotiation, sales and operations.
Ramsey has served on the National Association of Independent Life Brokerage Agencies (NAILBA) membership advisory council. Also, he has planned life marketing training schools for BRAMCO and is past president of the TYGERS. He is an active member of The Plan Group, which focuses on distribution through wirehouses.
While each member of the TYGERS has an impressive heritage in the wholesale brokerage business, they bristle when someone mentions that fact. Without a doubt they are proud of their family accomplishments, but they view themselves “as a great group of friends who do the same thing for a living—we are not big or powerful, or even all that smart. We do have a common goal—to help each other.”
Alan Palmer
All members of the TYGERS were adamant about mentioning their late friend and one of the founding members, Alan Palmer, who was president of The Palmer Agency for only five years, from 1998 until his untimely death in 2003.
An active member of several professional associations, Palmer served on the board of the National Association of Independent Life Brokerage Agencies (NAILBA) and was vice president and marketing chairman of the NAILBA Charitable Foundation. He was also involved in NAIFA and the Georgia Health Underwriters Association, and had served as president of Life Leaders of Georgia.
Palmer’s work on behalf of charities was tireless. To honor his memory, the TYGERS take great pride in what they do for the Alan Palmer Scholarship Fund, given to a rising sophomore at Oxford College of Emory University.
Speaking for the group, Jeff Mooers said, “While we are all very close, Alan was at the TYGERS core. What made him so beloved was his sense of humor, his generous compliments, his sincerity, his sarcasm, his caring, his friendship, his big hugs. We all miss him terribly. Personally, I would say he was my best friend of the TYGERS; and I’m willing to bet most, if not all of us feel the same way. We all miss him terribly.”
“Today, Myra Palmer, Alan’s sister, is leading the agency admirably. The Palmer Agency—and Alan’s legacy—remain very close to us all. Our biggest point of pride is raising money for AP’s scholarship fund.”
Support and Friendship
When each was asked how the TYGERS helped them personally, the collective response was that they rely on each other’s advice on how to solve problems and create opportunities.
Luke Ramsey said, “Many of the TYGERS have been in my exact situation and have vital input about the struggles of growing a successful agency.”
Jason Lea agreed, “The most powerful aspect for me has been the common bond we all share—growing a small business in a family environment.”
John Felton added, “While we are all technically competitors, we truly want to help each other succeed. I know that each of the TYGERS has my best interests at heart.”
Dave Lea mentioned that he met most of the TYGERS at the first NAILBA meeting he attended. “Today,” he said, “I can ask these guys anything and get answers immediately.”
Jeff Mooers said, “I sometimes wonder if the TYGERS have helped me more with business, or with life in general—it may well be the latter. From a business standpoint we discuss everything from best practices all the way down to pricing for overnight mail delivery…The TYGERS provides a fantastic sounding board—I don’t do much without getting their input.”
P.J. Doyle added, “The TYGERS are home base for me; we help each other gain a better perspective of what is going on in the industry.”
Doug Mishkin added, “I agree, the TYGERS provides a great forum for getting ideas to help grow my business. And, of course, we do have some fun getting together.”
Parks LaMarche concluded, “Drawing upon the collective experience of such a close group of friends has enabled each of us to grow so that we can better meet the needs of our brokers with a best practices philosophy.”
How the Business Has Changed
When asked how the insurance business has changed since they entered it, the group gave varying answers. But the majority mentioned increased competition. Here are some of the responses:
P.J. Doyle: “Business has spread out…we used to fight for company contracts and work hard with the few we had. Today, nearly everybody has contracts with all the companies.”
Dave Lea: “I agree with P.J., business has spread out. It used to be that BGAs worked in their area of the country and the companies’ contracts assigned a certain territory. With increased competition, those territorial lines blurred and, now, we must be prepared to conduct business across the country.”
Luke Ramsey: “The introduction of guaranteed universal life contracts and improved technology has allowed many new BGAs to enter the marketplace. This increased competition has made us re-evaluate business models and processes to maximize our efficiency and focus.”
Both Parks LaMarche and Jason Lea say that technology has changed the industry—information travels faster today. Lea added, “Our industry is still way behind others—we still use paper for many things. Our agency is focusing on making our entire operation paperless.”
John Felton: “Brokerage is much more prevalent and widely accepted, which is good. However, we need to become more accountable to the insurance industry and help find ways to bolster the buyers’ confidence.”
Doug Mishkin: “The players have changed; we are now doing significant production with carriers that were traditionally captive. In addition, there are new distribution channels, such as banks and broker/dealers, that have created new opportunities but require different business strategies.”
Jeff Mooers: “While the details of our business are different—more complicated—we still have exactly the same goal: to find secure solutions for our clients. Our business is still based on relationships. Without a doubt our margins are leaner today and we have to be able to do more with less, but the purpose remains the same.”
Conflict and Succession
Issues in a Family Business
Succession is a necessary part of any business, particularly when multiple generations of one family are involved in one business. It is only natural that conflicts and misunderstandings occur, making it very difficult to separate business issues from family issues.
The TYGERS have all faced these issues, and following are some suggestions they have for dealing with them.
Luke Ramsey says that it is important to “make sure that you keep your family as the number one priority, giving each member a chance to explore his different business style.”
Jason Lea added, “Accountability for all family members is a must. You simply can’t run a business fairly without holding everyone to the same standards. If family members are not required to be productive, the morale of your whole team of employees is affected.”
P.J. Doyle says that “everyone must be ‘on the same page’ as far as communications are concerned. Everyone must clearly understand what is expected of them, and those expectations must be realistic.”
Dave Lea and Doug Mishkin agreed that the younger generation must gain the respect of everyone in the agency and stay focused on building the agency’s legacy. Mishkin also said, “At the same time, the ‘next generation’ needs to be given the opportunity to be in a leadership role prior to a transition.”
In terms of setting up a succession plan, the group’s conclusions were: Seek the services of an unbiased third party—someone who can take emotion out of the equation—and set up a formal agreement with the intent known by all. Make sure that everyone’s goals and wishes are considered before setting up an actual plan of action. Finally, setting a transition date is of utmost importance—do not leave it open-ended.
This great group of friends have come of age in the wholesale brokerage business during a time of transition. The issues facing small business entrepreneurs today are tougher—the margins are slimmer, the competition is fierce, and the economy is shaky.
The TYGERS have learned many important lessons from each other. They have put ego aside and banded together as brothers, helping each other survive. Now that’s what wholesale brokerage is all about!
P.J. Doyle can be reached at CPS/Gulf States Brokerage, 3207 Magnolia Street, #306, Pascagoula, MS 39567. Telephone: 228-762-1600. Email: pdoyle@cpsinsurance.com.
John Felton can be reached at Tennessee Brokerage Agency, PO Box 11767, Knoxville, TN 37939. Telephone: 865-588-9555. Email: jfelton@tba.com.
Parks LaMarche can be reached at CPS/Integrated Marketing & Insurance Services, 8447 Miramar Mall, San Diego, CA 92121. Telephone: 858-220-7301. Email: parks@cpsimis.com.
Dave and Jason Lea can be reached at Brokers’ Service Marketing Group, 500 South Main Street, Providence, RI 02903. Telephone: 401-751-9400. Email: dave@bsmg.com and jason@bsmg.com.
Chad Milner can be reached at The Milner Group, 833 Hurricane Shoals Road, Lawrenceville, GA 30043. Telephone: 678-252-1788. Email: chad@milnergroup.com.
Doug Mishkin can be reached at Algren Associates, Inc., 212 West 35 Street, Fifth Floor, New York, NY 10001. Telephone: 212-594-9890. Email: doug@algren.com.
Jeff Mooers can be reached at H.D. Mooers & Company, 3688 Mt. Diablo Boulevard, Lafayette, CA 94549. Telephone: 925-283-7310. Email: jeffm@hdmooers.com.
Luke Ramsey can be reached at The ASA Group, 111807 Hinson Road, Little Rock, AR 72212. Telephone: 501-224-7739. Email: lramsey@theasagroup.com.
