Exceptional Integrity, Then and Now

October Chairman’s Voice

As I was thinking about what I would write for my first column as chairman of the Big “I”, I asked myself: Why did I get into this busi­ness and what does it mean to be an independent insurance agent? I stumbled across a copy of a speech given by Dan Gibson, founder of our agency, in 1957:

“What if my son were to come to me tomorrow morning, and I hope some morning he does, and say ‘Dad, what about this insurance busi­ness? Tell me something about it. Do you think I should consider the insurance business as my future career?’ I believe my answer would be a little along this line. I believe I would first tell him a little about the history of the insurance business, the purpose of it and the part it plays in our economic life. I would then have to tell him a little about the various insurance companies; the type of men that manage the companies, governing bodies that are set up to attempt to regulate the business for the good of the insuring public. I believe I would remind him no one can legislate integrity, that there are a small minority in the business, both in the company and agency ranks, that may be a little short on this count. By and large, capital stock fire and casualty companies in this country are, for the most part, managed by men of exceptional integrity and they try at all times to be basically fair in dealings with their agents and with the insuring public.

Next, I would talk to him a little bit about the agency business, for that is the phase of the business where I have spent 25 years, and I would like to give him both sides of the picture. I believe I would then explain to him the American agency system and how it has operated throughout the years, and very defi­nitely go into detail on the other methods that have been used in the past and are being used today to merchandise insurance and how they differ with the distribution system known as the American agency system.

Secondly, I would have to explain to him competition that exists both from captive agents, captive agencies, direct writers, part-timers, full-timers, and what have you; but after all, I don’t know a business that doesn’t have competition, and it wouldn’t be much fun without it. I would have to tell him that there are some in our business today that feel the method of distribution, know as the American agency system, is either on trial or is going to be definitely of decreasing or minor importance in the insurance merchandising field.

But when we got all through and had covered the various phases in capsule form, I would have to say this. I think the insurance business is a fine one and I have enjoyed the 25 years I have spent in it. I feel its economic rewards are at least on a par with most any other business or profession, and if he seriously wants to be a qualified and career insurance agent, that there is a very definite place for him in this busi­ness and I want him to be an independent agent and represent the American agency system in its finest tradition. The future still has great problems but also great promise.”

The speech was written as Dan’s farewell address as outgoing president of the Indiana Association of Insurance Agents.

Dan’s son Dave did go into the insurance business and built a very successful agency. Dave also recognized the value of being involved in the Big “I”, serving as president of the Indiana Big “I” in 1982. But I believe his best move was hiring me. Both Dan and Dave instilled in me the importance of giving something back to this great industry. It’s because of them that I am involved and am now chairman of the Big “I”. In fact, Dave gave remarks during my installation ceremony last month.

I find it interesting that in many ways, not much has changed about the industry since Dan’s farewell speech more than 50 years ago. I would still describe our strengths and our challenges in much the same way. There are those who still say our distribution system is a thing of the past, that agents are no longer important in the insurance transaction. Well, 53 years later, we are still here and are proving those skeptics wrong, showing that we do fill a very important roll as trusted advisors to the insurance-buying public.

But most importantly, it is still a business filled with men and women of “exceptional integrity” who try at all times to be fair in their dealings with agents, companies and the insurance buying public. I am proud to be a part of this industry, and look forward to serving as your chairman this year.

—Mike Miley Big “I” chairman