IIC Profile - Tom Chase, CEO

A native of Waco, Texas, Tom Chase graduated from Waco High School and went on to complete
a BA in History at Vanderbilt University. Tom then went on to enroll in law school at the University of Texas graduating with JD with Honors and going to work as an attorney for Naman, Howell, Smith & Lee in Waco prior to joining Insurors.

Below are some excerpts from my interview with Tom:

Tell me a little bit about how you got started?

I had decided I wasn’t interested in being an attorney and wanted to try my hand at business. My uncle was running an insurance agency and he asked if I would join him. At the time the agency was called Stribling, Woodward & Greig (SWG) and had been in business since the early 1900s. After several years working as a producer I offered to buy the agency from my uncle and his partner and it became Insurors of Texas. Running the agency, I saw a lot of inefficiencies in the carriers we used and with the encouragement of Clifton Robinson who had founded National Lloyds I started Insurors Indemnity Company (IIC) in 1984.

What I found out was that efficiency wasn’t as important as size and financial strength. This made getting started very challenging. However, with a conservative approach to growth focused on building financial strength, IIC was able to get Gen Re reinsurance as well as its current A- (Excellent) A.M. Best rating. This approach facilitated going into bonds in 1992 and later the commercial property & casualty business in 2001.

Who had the most influence on you in terms of building IIC?

Without a doubt Clifton Robinson who focused on being sure you built a strong company. National Lloyds was a carrier for the agency and this was how I got to know Clifton who ran it. When I first approached him with the idea of starting an insurance company he not only encouraged me to go for it but said he would help me. When I applied for the license, Clifton testified on my behalf at the Department of Insurance telling them, “If they (IIC) get in any trouble we’ll help them out.” His backing was crucial and he has remained a good friend for many years.

Are there any particular events or incidents you remember from when you were first getting started?

One that stands out in my mind is early on when a client got mad and called me up to tell I was the worst agent he knew and he was switching his business. About a week later he called me back and said, “I was wrong, you are the second worst agent because I met one that was worse than you and I want you to take all my business back.” He ended up becoming a good client and friend.

Another key event I remember is when IIC started its relationship with Gen Re. The fact that a sound company like that would back us affirmed the approach we had taken to grow the company as we focused on conservative growth and financial strength in our operations. This opened up a new world for us as their backing meant we were a good company to write business for from the agent’s perspective.

What do you think it takes for an agent to be successful?

It is the ability to go to a client and shoot straight with them and convince that client or prospect that you will take care of them. Not beating around the bush but rather being upfront with a customer – letting them know the good and the bad so they know you’re looking out for their best interests not just selling them something.

Finally, where do think the greatest opportunity for growth will be for agents?

It really depends on what the agent wants to do. For example if an agent wants to work more like a lawyer then there are huge opportunities in advising companies and individuals on their coverages and what to buy. At the same time there are huge opportunities in becoming a real marketing organization getting into several specialized niches and exploring multiple sales opportunities. Those are two totally different ways to go but both great opportunities. The main thing is being trusted your community and having a great reputation.

The other thing that will become important in the future is for an agent to include retirement planning as part of how they advise clients on their coverages because so many people who are in their 40s, 50s and 60s haven’t saved enough for retirement.

Outside of IIC what personal interests do you have?

Barnett's Building in late 1800s

Downtown urban redevelopment of Waco has been a major interest of mine. As part of that we moved our headquarters to the former Waco Drug Building, built in 1911, which we restored. I also bought another building downtown and opened an Irish Pub in it named after the original building, ‘Barnett’s’ which was built around 1883. As a side note the Barnett building at one time housed John Fall Undertaking Company and some people think it’s haunted.

Barnett's Building Today

My weekend interest is restoring the native prairie which I have been working on at my ranch for several years. This involves getting rid of cedar, cactus and other invasive vegetation that came after European settlement in the early 1800s and replanting native grasses and forbs. I was inspired by seeing the effects of overgrazing and the overgrowth of cedar and wanted to restore prairie back to how it was 200 years ago in the time of the buffalo and native Americans who inhabited central Texas.