An interview with Bill McGraw
Bill McGraw joined his father Pat – already a 25-year agency veteran – in McGraw Insurance Agency in 1984. Almost a decade later they purchased Yazoo Insurance Agency, Inc., and Bill, a self-described “non-techie,” was given responsibility for automating the business. Today, the agency is a $4 million operation with property and casualty equally distributed between commercial and personal lines. About 15-18% of their total agency revenue comes from the benefit side. Their eight-person staff has been together, serving the 12,000 residents of Yazoo City, Mississippi, since 1995.
Now co-owner along with his father and brother Mike, Bill McGraw shares his perspective on the agency, agency management systems and the independent insurance industry with enthusiasm and candor. His bottom line? “This industry is primarily a people business. It’s still about identifying and meeting needs of people.”
SIS: You’ve used other agency management systems. Tell me about your experience with Partner XE.
Bill McGraw: What I love about Strategic Insurance is that I can still talk to a person when I have a problem, and that person can solve the problem.
I love that and the fact that Partner XE is a great fit – the best fit actually – because it is scalable. No matter how big or small the agency is, this technology fits, whether you’re a single agency or you’re an agency in multiple locations, or you’re operating all over the country. SIS has created a system with the technology that enables me to run a business well regardless of size, everything from handling emails and faxes, document storage, the use of multiple monitors and scanning capabilities – they’re all there – but so many agencies don’t know how to use it all well. We’re probably one of them [laughter].
SIS: What was your experience like upgrading from SEMCI to Partner XE?
Bill McGraw: It was not very difficult at all. We knew how the system functioned. We had a few glitches that were resolved quickly so it has been a great transition. The benefits are wonderful, too. I wanted mobility, and the web innovation with Partner XE gives me that mobility. I can be anywhere in the country and have access to my office. That’s important to me because I want to spend more time at the customer’s office or his home and be more efficient and be more productive outside my office.
SIS: What has been your experience with SIS’ customer service?
Bill McGraw: My experience has always been outstanding with SIS customer service. That is really what sets them apart from other vendors. The SIS customer service people are, well, “customer” oriented.
There’s never been a time where anybody made me feel dumb when I called with a dumb question. I’m an insurance agent. I am not a techie. So whether I call and say, “I’m having a problem with this. Can you help me?” or if I email them and say, “I want to do this. How does the system do it?” They are able to help me understand how to use the system step-by-step. I don’t think you get that with some of the other vendors; they’re strictly troubleshooters, not working to help me work smarter.
I love the SIS people.
SIS: What’s your opinion of agency management systems and the technology available to agencies today?
Bill McGraw: Agency management systems have really evolved. Their big advantage is that they give us easy access to useful information. And we all need to utilize technology well and get results. But we’re busy in the insurance business; we’re agents, not techies. We don’t have time to sit down and play with this machine to figure out what it will do. Frankly, no vendor is doing a great job helping the independent insurance agent understand the best practices. Obviously, every independent agency is different, but with the technology that’s now available, there are ways to work that are more efficient.
Agencies have to help each other and share what works. Vendors need to help independent agencies by not just giving us lots of features but showing us how to use them and helping us understand why we should care. I know there’s a lot more we can – and probably should – do with Partner XE, for example.
SIS: How have you seen the insurance business change over time?
Bill McGraw: Well, the two biggest changes I’ve seen are automation and specialization. It seems like companies are designing plans that fit on their computer platforms as opposed to designing plans to fit the needs of the customers, which is very disappointing. A few companies were successful with it for a while but then they merged or the technology changed. The reality is that this industry is primarily a people business. It’s still about identifying and meeting needs of people.
SIS: Tell me about your observations of the economy. There’s a growing sense that maybe things are turning around a little bit across the country. What do you see?
Bill McGraw: Insurance is an industry of cycles. It’s been nearly two decades since the industry operated to make an underwriting profit or risk management. We have spent the past 18 years not worrying about losses but looking to increasing premiums so that we can invest the money and earn off of the investment.
The turn recently is back to risk management, but the industry has lost a lot of the underwriting experience that allows the industry to scrutinize and underwrite our risk to make a profit. We moved from underwriting to collect premium dollars to invest toward underwriting to make a profit by managing risk.
SIS: What’s your vision for the future of the industry?
Bill McGraw: Well, now this is just Bill McGraw talking [laughter]. Whereas right now an agency or an agent has to go out and acquire companies to sell products – and the companies are real cautious and stingy about giving out new contracts – I see a reversal coming. I envision that the industry will move from companies pushing to the agents who push to the clients. Instead, with all the changes in technology and the changes in the insurance industry, I see agents becoming brokers for multiple companies.
When that happens, the customer needs will be heard more clearly. An agent will be able to ask customers what they need and then help them find exactly what fits those needs from 200 companies. Right now we are limited to less than a dozen primary companies, of course, but I see that change happening in the next ten years.
We need to be ready for it with the right technology in our agency.
