There’s a lot of opportunity: A Q&A with Amy Evans
Amy Evans is president of Colibri Insurance Services, and, if you can believe it, loves open enrollment.
Paul Wilson: How did you get your start in the benefits industry?
Seventeen years ago, I was with a marketing company that was doing guerrilla marketing using online message boards and chat rooms, when that was what social media looked like. I helped develop that company and, in the process, had to sell the product. When I flew to Atlanta to pitch Coca-Cola and they bought it, I thought, “Huh, maybe sales is actually something I’m good at.”
When I was looking for a new path, I was approached by a recruiter for Aflac. It was a good fit for me at the time, so I entered the benefits world and spent 10 years with them learning about benefits, honing my sales skills and learning that managing a team of people wasn’t my strong suit.
I worked closely with brokers the entire time I was there and knew that was the direction I wanted to go. I knew what it looked from interacting with them at open enrollment meetings and I wanted to learn the technical aspects of the business, so I took a job with a small national full-service brokerage. I spent two and a half years with them, learning the ins and outs, and started my own agency four years ago.
PW: What prompted you to start your own agency?
I have a very entrepreneurial spirit and have started a handful of business in my life. My arc, even if I wasn’t completely aware of it at the time, was always to eventually start my own agency. What appealed to me about it was going back to being full-service for my clients.
Also, I saw a lot of groups here in Southern California that were profitable but underserved because they didn’t meet the revenue-generating number that larger agencies needed to see to take them on as clients. I knew these 40-, 50-, 75-employee groups could be profitable for me as a solo broker and that many larger agencies weren’t giving them the attention they deserved. I was able to take the skills I learned at a larger agency and bring that to those groups. And that’s my bread and butter. There’s a lot of opportunity.
PW: Within the small-group area, are there any niches you’ve found?
While I can serve any group that needs what I do, I have developed a niche that I could not have seen coming. I work with a number of staffing companies that do long-term contracts. These are highly technically skilled, degreed people who are hired for specific long-term projects or by public entities.
Staffing agencies have some unique challenges when it comes to benefits, because they’re essentially leasing their employees to their clients, and in some cases, the clients want to have a say about the benefits offered. There’s also higher turnover, and these companies tend to be applicable large-employers under the ACA, so they have reporting requirements. And the majority of the employees are off-site, so they need online enrollment.
PW: What are some of the highlights and challenges of working in California?
I’ve never worked anywhere else, so I am the frog in the pot of boiling water. I have no idea how messed up my situation might be, because it’s the only place I’ve been. However, I know for sure that a lot of the forward-thinking strategies I hear discussed in other places are not applicable in California.
We have a really crazy market; our group dividing line is 100 lives. I talk to a lot of other brokers around the country, and we don’t have the same flexibility because we’re swimming in a pool of HMOs and Kaiser’s managed care that other people aren’t dealing with. We also have very restrictive issues with our stop-loss coverage that doesn’t make self-funding a great option for small groups. So we really have to play within the bounds of what the small-group market offers. There are a lot of carriers, and we’ve got some interesting regional carriers popping up, including Oscar, Sharp and Western Health.
I think the perception is that some of these more creative funding options are more beneficial to the employer, and if there’s one thing you can say about California, it’s an employee-friendly state.
PW: What are the biggest trends and innovations you’re watching?
I’m starting to explore level funding. I had some experience with that when I worked for the larger firm, so it’s a conversation that I’m comfortable having. I’m still trying to get my head around when in the process to have it, because it really feels like it’s a conversation that needs to happen months before renewal. It takes some real education for the employer to understand how it works and how it’s going to affect and benefit them.
PW: How did you become interested in health care reform? Any predictions?
I got involved a few years ago through my local chapter of the Los Angeles Association of Health Underwriters and CAHU. I went to D.C and Sacramento and lobbied on their behalf so that I could better understand how the ACA would affect our business. It keeps evolving, and each new administration takes their own spin on it, but if I were to take a big swing, I’d say we’re headed for a national socialized health care system. I say that knowing that could spell the end of my business.
We had that conversation very seriously in California a few years ago with SB-562, which would have created a single, government-run system in the state and eliminated insurance carriers and agents. You can imagine that wasn’t super popular among my crowd. I really don’t think it’s possible to put a system like that in place at the state level. It’s failed in several different states—Vermont, California, Colorado—because the logistics of doing it on a state level don’t make any sense. You drive doctors out of the state, you drive people who want the care into the state.
I think we’re headed toward a national system, but it’s going to take a long time. In my opinion, it would likely be the Medicare platform and they’d keep lowering the age of eligibility and allow the system to absorb the new people. I also think a lot of energy is going to get sucked up talking about it again as we head toward the 2020 election.
PW: Is that your biggest worry these days?
My biggest concern, truthfully, has nothing to do with any of that. It has to do with the carriers continuing to lower our commission rates. And when one carrier does it, all of them do it. The next move in California would likely be from 5 percent to 4 percent, which would mean a 20 percent reduction in my revenue. I’m running an agency with a certain expectation of revenue, and if the carriers lower that commission point again, that’s going to be a serious consideration for me.
Plus, the only thing that exists in California is an agent license, so as much as we call ourselves brokers, because in our hearts we work on behalf of our clients, the truth is that we’re licensed as agents and we work on behalf of the carriers. We don’t have the ability to charge fees for consultations or the strategies and services we provide if it’s directly related to the transacting of insurance. Other states have brokers developing more creative business models where they’re going to the carriers and scrapping the commission altogether and saying, “We’re just going to charge our clients a fee.” There’s some room for that here, but not in the small-group market.
PW: How receptive are clients and prospects to new ideas and strategies?
I’d say most are on the reluctant side of the spectrum. It sounds scary and it’s hard to overcome their initial concern about “what happens if we have a big claim?” I think having conversations over multiple years is effective, because they get used to it, see that it’s still around and not just a flash in the pan. They get used to the language, and I can show them some examples of successes that other clients have had and build a tolerance level.
Typically, the more stable the market, the less receptive clients are to alternative strategies. If we were coming through with 20 percent and 30 percent increases like we were a few years ago, I think they’d be more interested. But right now, they’re less motivated because it’s an evil you know. You’ve budgeted for it, you know how it works and you know what to expect.
PW: What appeals to you about the industry? How can it appeal to a diverse group of brokers?
What continues to appeal to me about it as a woman is that commissions are gender-neutral. I love the fact that if I work hard and do what I say I’m going to do for my clients, I don’t have a glass ceiling. I don’t have to go to someone and ask for a promotion or work twice as hard as the other guy to prove myself. I see a lot of women having success in sales because of that. You can work around having children, you have flexibility when it comes to child care, you can hit your sales goals by working hard and not have to rely on someone else’s opinion of you in order to make your income.
I also believe as the leadership of businesses changes and there are more female and minority business owners, there’s a desire for everyone to serve other people who look and talk and act like them. Certainly in Los Angeles, I’m in a giant market where we have businesses of all shapes and sizes and communities. It’s a wonderful, diverse place where there are a lot of opportunities to find your tribe and work with them.
PW: What are your favorite things about your job?
I enjoy taking care of my clients and giving them the highest level of service. I get to take something complex and simplify it for employers and employees. I still thrive on open enrollment meetings; I love getting in front of people and helping them understand how this all works. I tell them, “I can’t promise it’ll be the same next year, but let’s work with what we’ve got in front of us and make the best of it.”
Health insurance can feel transactional when you’re going through enrollment, but it’s very personal and impactful when there’s a health issue. I’ve experienced that when policyholders have called me and told me their child had been diagnosed with cancer or their husband had been in a terrible accident and they needed to know how to file a claim. I’ve cried on the phone with people and delivered checks to them and I understand the impact this has. I hope they never need it, but I understand what happens when they do. That’s very rewarding.
And I’m an entrepreneur first and foremost, so I really enjoy running my own business.
PW: Where do you look for inspiration?
I like to get on the treadmill and sprint like a five-year-old. Like the “Friends” episode with Phoebe running in Central Park. Just listen to some good hip hop and sprint.
My partner and I run a taco and ice cream blog here in LA. He’s an entrepreneur as well, so when we get burned out after sitting all day, we go out to find the best street tacos in LA. The street food scene here is incredible!
We like adventures and travel. We’re usually doing something adventurous that involves food.
PW: Finish this sentence: The key to success in this industry going forward is…
Adaptability. It’s a crazy business and will continue to change, so adaptability is your best resource.
Read more from our Face of Change series: