Brooke Subsidiary Introduces Auto Insurance Specialty

Shawn Lowry, president of Overland Park, Kan.-based Brooke Corp.’s franchise subsidiary, announced the introduction of a Brooke franchise for insurance agents that specialize in the sale of automobile insurance.
Lowry said that auto insurance sales is more of a “servicing-type activity” rather than a sales activity like other lines of insurance, and therefore deserved a separate Brooke franchise.

Lowry noted that Brooke Franchise Corp. was founded on the principle that local ownership of insurance agencies is important because insurance sales usually result from personal sales contacts and the rewards of ownership provide excellent motivation for sales professionals. However, different skills and personalities are required by the owners of agencies specializing in auto insurance than by the owners of other insurance agencies.

Management, organizational and marketing skills are probably more important to owners of auto insurance agencies than sales skills. Additionally, owners of auto insurance agencies must have personalities well suited for administrative tasks. The organizational traits required to make auto insurance agencies successful are often characteristic of larger organizations that are not necessarily locally owned.

Because Brooke Franchise Corp. has the required organizational traits, Lowry expects the Brooke organization to acquire and establish auto insurance agencies in addition to assisting franchisees with acquisitions of this type of agency.

Lowry noted that a separate marketing department has been established to assist Brooke franchisees specializing in auto insurance sales. The marketing activities associated with auto insurance sales rely more on advertising to attract customers into a retail store location staffed with service representatives and rely less on a salesperson working from an office location to make personal contact with prospects. Accordingly, location is more important to those specializing in auto insurance sales than to those selling general insurance.

With the development of an auto insurance specialty, Lowry noted that Brooke franchisees may now specialize in one of four business specialties. The general insurance services franchise was Brooke Franchise Corporation’s first business specialty. Franchises for financial services and funeral services specialties were subsequently developed. Lowry noted that insurance is the common link between the four Brooke business specialties.

Through its franchise subsidiary, the company distributes insurance, financial and funeral services through a network of more than 220 franchised and company owned locations. Through its finance company subsidiary, the company has originated more than $100 million in associated loans which have been sold to participating lenders or to investors through asset backed securitizations. Through its insurance brokerage subsidiary, the company also sells insurance on a wholesale basis through its franchisees and others.

Topics Auto Agencies Excess Surplus