It’s unclear why entrepreneurship is so commonly associated with youth rather than corporate experience, especially given that age is becoming a major contributor to entrepreneurial success. Only 15% of emerging entrepreneurs were between the ages of 55 and 64 in 1997. According to the Kauffman Index of Entrepreneurship, that number had risen to 24% by 2016. Incentives exist for senior professionals to start new firms or work as independent contractors in their industries. They can provide a lot of support for individuals who could follow in their footsteps by pursuing entrepreneurship in their “retirement” years.
It’s unlikely that your business abilities will change as you become older. It’s not a matter of not having ideas. None of this should come as a surprise to anyone. The truth is that some people are born with an entrepreneurial spirit. And experience clearly helps success. Meet Colin Brown, President and CEO of Stratford Underwriting Agency Inc., 72 years old, lots of miles on the clock, but still good energy, steering the company through the early years, building a team that will be good for the long term and leaving the company in the best of hands. Mr. Brown worked for the Insurance Corporation of British Columbia for 22 years that is a quasi-monopoly that essentially sells 90% of all auto insurance in British Columbia. He was the Chief Underwriter, responsible for determining rates and creating coverages. In 1994/5, ICBC offered a new program to make the company more competitive; but, the Board, which was very politically motivated, did not embrace many of recommendations, prompting Colin to depart in mid-1995 and start his own company to compete with ICBC.
Then Colin founded Canadian Direct Insurance (CDI), Western Canada’s first direct insurer. It was a wholly owned subsidiary of HSBC, which was at the time the world’s largest bank. He was titled the first “disruptor” in the Canadian insurance business. HSBC sold CDI to Canadian Western Bank (CWB) for $25 million in 2005. CDI was selling home insurance and auto insurance in BC and Alberta at the time. After a board change at that bank, CDI was sold for $200 million to Intact, Canada’s largest insurer, in 2015, ten years later. In addition, CDI had previously paid CWB $35 million in dividends to maintain the capital ratio. It was hailed as a huge success, and Colin was named Executive Officer of Intact as a result. At the age of 66, he retired in 2016.
What image comes to mind when you think of an entrepreneur? Do you imagine a young person just out of college dreaming about ways to make the world a better place? If that’s the case, you’re not alone. However, while that picture is a common misconception, the truth is that you may be an entrepreneur at any age. Several parties approached Colin in 2017 to “do it all over again,” and by inspiration from everyone, he got motivated to cheer himself up again and agreed to launch another BC auto provider.
Stratford Underwriting Agency was founded in this manner. It is a Managing General Agency, or MGA. They created the auto insurance product, selling it through 200 brokers, and handles all claims. All risk is carried by the underwriting partner, a leading global reinsurer. They wrote $10 million in their first year, $27 million in the second year, and are on schedule to write $40 million this year, all in BC auto. One new auto-related product was introduced in 2021 and another non-auto product is in the works.
The Journey Towards Success
A multidimensional approach is something Mr. Brown strongly believes in. He starts with a well-priced, quality product that is remarkable for a having several secret ingredients. The organization’s goal is to save money for 80% of BC drivers while also providing a product that offers more and provides exceptional service. CDI had received three JD Powers customer service awards, and Colin tries to maintain that standard for Stratford Underwriting Agency Inc. Stratford created the distribution network of brokers once it had a product to be proud of. It has agreements with the major three broker chains and has also added several smaller offices to ensure that it serves the entire province. The CEO handles the radio ads since Colin has been known for over 25 years as the guy who beats the government and ICBC at their own game, saving people money while providing excellent service. The agency offers a web interface that allows brokers to send data to the system in real time and allows consumers to renew their policies online. Better, cheaper, and easier. That is how the agency grows its business.
Everyone requires excellence in their profession to stay afloat in the insurance industry. And being an expert in underwriting is critical when it comes to administering policies. Colin believes that one of the keys to success is good underwriting. He took a 22-year track record of success from CDI to Stratford. CDI provided him with a 20-year Chief Underwriter and a CFO. As a start-up, he knew he’d need the discipline he’d demonstrated at CDI. The fact that Mr. Brown had a readymade heritage (a new firm with 22 years of experience) made the new start tremendously easier. Colin’s mission is to provide outstanding underwriting results. It is at the heart of all the agency does.
Leadership Methodology
Colin Brown attempts to lead by example; having learnt over 50 years in Canada’s highly regulated insurance industry that it pays to have a clearly well-run, controlled company to keep the regulators happy. Allow the personnel, however, to be individuals, innovative, and happy in that setting. He makes an effort to live up to those principles such as to be at ease, involved, and as hands off as possible.
He has established a laid-back, team-oriented atmosphere. He is always ready to make every effort to create technology that supports notions like working from home and other family-friendly concepts. He says that all doors are always open. The employment package includes benefits for medical, dental, well-being, and savings. Colin and his team create a well-run but relaxed atmosphere. That assumption was supported by the number of staff that came over from CDI to experience the Stratford buzz.
One of the most prevalent sources of stress for working adults is balancing work and family life. In today’s productivity-driven environment, an increasing number of people are finding it difficult to fully fulfill their obligations at home and at work.
“My wife, Mykie, and I have four kids and seven grandkids. We are heavily involved with the latter. We have an apartment in Vancouver and some acreage and a house about an hour away. That is our getaway. We go year-round for about 50% of the time. It is a complete change in surroundings and adds real balance. “—says Colin Brown.
Walk the Talk
Colin Brown has been building his own style for over 50 years. Things that were suggested 30 or 40 years ago no longer work. He sticks to what he knows will work, which isn’t difficult. Hire good people, believe in them, and pay attention to them. He believes in his legacy and follows quotes that say, “As a reporting manager, do not agree with me if you do not. I hired you for your brain and opinions. Give them to me. And: plan, do it precisely, based on the best data, but then, monitor, because plans rarely go according to plan. ” I try to walk the talk. Trust is the key, upwards and downwards. ”
He’d like to see the company reach a comfortable position. They’re in their third year and will be profitable this year and going forward. He believes that he will be able to retire again after two or three years of stability and the formation of a strong, young, dynamic squad. He views the company as a $100 million plus enterprise and a gem in the industry.
