OMNIA VINCIT LABOR (WORK WINS)

Rough Notes, Mar 2007 by Pillsbury, Dennis H

MARKETING AGENCY OF THE MONTH

A focus on community and education leads to success for The Starke Agency

The Starke family has a work ethic that has spanned generations and of which it is justifiably proud. And that ethic is exemplified in the motto of The Starke Agency, Inc., Montgomery, Alabama-Omnia Vincit Labor. It also appears on the tombstone of the first Starke to come to Alabama-Professor John Metcalfe Starke, who founded The Starke University School and became known as The Great Educator in the region.

His high standards for work, education and ethical behavior were passed on to his son, Boiling P. Starke Sr., who brought those standards to The Starke Agency when he and his brother founded it in 1929 as an insurance and real estate operation. At the time, the agency primarily focused on serving the personal lines needs of the community.

Bolling's high ethical standards were put to the test when the United States entered World War II. Due to a physical disability and age, he was not eligible for military service, but he felt a need to serve his country. He made call after call to contacts he had in military and political circles and kept hearing that he was too old. However, he was not about to take "no" for an answer and persisted. He wound up serving with the Red Cross in the European Theater. When he returned, he and his brother agreed to disagree and split up the agency into its two constituent parts, with Bo taking over the insurance business and his brother, the real estate business.

Today, the insurance agency is headed up by the third generation, with Boiling P. Starke III (Trey) serving as president and majority stockholder. He took over the agency from his father in 1996. His father had been president since 1963 and remains chairman of the board.

Little has changed and a lot has changed. The agency still stands firmly on the bedrock of hard work and service to the community. But it no longer just focuses on personal lines. And it no longer has the majority of its business with one company. (Eighty-two percent of the agency's business was with one company when Trey took over.) Commercial lines, including bonding, make up the largest percentage of its business. The agency also writes life and health business as a "cross-selling and retention tool," Trey points out. The result is that The Starke Agency now boasts $3.7 million in revenue and 26 employees. It has enjoyed steady growth averaging better than 7% a year.

Goodwill is the lynchpin

"Everything we do emerges from the goodwill we have in our community," Charlie Harris, an owner, observes. "And we work hard to maintain that goodwill. When other agencies were abandoning the personal lines market because it was too difficult to make a profit, we stayed with it and it has paid off. We had always focused on package policies, which represent the most efficient and effective way to market personal lines. We've continued with that approach, marketing primarily to the upscale market. Our combination of excellent service, strong company representation and goodwill in the marketplace has allowed us to retain our current personal lines clients and reach new clients.

"We have a personal lines team with no division by alphabet where everyone on the team can access every client's information and help that client, whether they have a coverage question or need to change coverage or get an auto ID card. As we develop new ways to service and sell to this market, this team approach lets us bring in new people that have the skill set necessary to complement the people who are already here. For example, we have added people with claims expertise so we can be better advocates for our clients with our companies," Charlie says, adding: "It's been very effective. We want our people to be in touch with those people about their insurance needs on a regular basis. They need to be seeing more than an annual bill from us. Our focus is to make that group of accounts larger and larger."

Turning to commercial lines, Trey says, "It's all about production. We have five commercial lines-focused producers and hire a new producer about every two years or so. The new producer is given an established book of business and builds on that book. That system has worked well for us," he comments.

"Our strongest niche is construction, followed by professional service organizations, of which there are many, thanks to the fact that we are located in the state capital. Naturally, the commercial lines department works closely with the bonding department for the construction accounts. And again, it is our expertise that has helped us stay ahead of the competition. We have a seasoned CSR in the bonding department with more than 25 years of bonding experience who works with one of the youngest bond producers in the state. It really gives us a leg up when our producer Kyle Drumwright appears before a contractor with energy and youthful enthusiasm, accompanied by a strong knowledge of the business. He came to us after getting his MBA and then went on to become an AFSB (Associate in Fidelity & Surety Bonding), the professional designation offered by the National Association of Surety Bond Producers. There are very few problems Kyle can't take on by himself, but he also has backup when something comes up that is beyond his control."