Exploring the insurance agent needs of the millennial entrepreneur
The insurance agent’s role is far more consultative in native than one might think.
In my last column, I introduced you to Krystal Haney, a millennial insurance professional.
Now I’d like you to meet David Shapiro, a millennial entrepreneur and insurance buyer.
Restless spirit
David graduated from Duke University, spent semesters in Argentina and Spain, and then went straight to Wall Street for his first job dealing with CDOs. Everything in college was geared to getting a high-paying position above all else, he says. The paycheck was good, but David soon became bored, stuck in an office all day with older people, no contemporaries, doing the same thing all the time. He liked his two bosses, but daydreamed that there was more to life.
From his office window, David watched people lining up at food trucks and marveled at how the food truck business was growing. He decided that this was his opportunity, so he quit his job to become an entrepreneur. He invested with another young entrepreneur who had recently started a new specialty fast-food business in Soho in New York City, became a working partner, starting at dawn, helping prepare the food, driving the truck, and cleaning up at day’s end.
Wearer of many hats
Simultaneously, he obtained his New York State real estate license, hooked up with a family realty brokerage company in Brooklyn, and began selling real estate on the side. The food truck was a major success, but once David tasted life as an entrepreneur he wanted more and was ready to take risks.
David and his new partner, also a millennial, opened a wine bar restaurant in trendy Williamsburg, Brooklyn, and shortly after, a second new vegan wine bar restaurant, also in Williamsburg. As both restaurants did well and income from David’s real estate activities continued to grow, David and his partner, Etan Fraiman, branched out by acquiring properties in New Orleans, some distressed from hurricane damage, renovating and holding them as rental properties.
Finding the right coverage
David’s views as an insurance buyer are based on his own experiences. He observed how extensively his parents’ losses were covered after Hurricane Sandy by flood and homeowners’ insurance. His own business sustained three losses in Brooklyn, and each time his business insurance protected him because he had the right coverage and his broker’s help. He places a high value on the need for a personal relationship with his insurance broker, and welcomes advice and counsel. He advises his own realty clients on the need to buy insurance, especially renter’s insurance. He realizes the value of having the right coverage in place to relieve the uncertainty of financial loss.
I asked David how he thinks most millennials feel about financial planning for the contingencies of death, disability and retirement. He responded that all are concerned about health insurance, but not so much life or disability insurance. Many live “hand-to-mouth” and get by sharing rental places to live or living with their parents. He feels that financially they look mostly to the short term.
Interestingly, when I asked Krystal about these issues, she, too, said that it was difficult for millennials to think long term. However, David and his business partner did take their broker’s advice and purchased life insurance to fund a buy/sell agreement for two reasons: to provide for the orderly transfer of equity in event of the death of one partner, and because the cost for the life insurance was so low at their young ages. Interestingly, the recommendation for their shareholder’s agreement came from their insurance broker (not their attorney; sound familiar?)
Turning to a trusted advisor
To sum up, here’s what David values most highly when dealing with an agent:
- Prompt response;
- Accurate information;
- Communication via e-mail and text;
- A fair price, not necessarily the lowest;
- Discussions and recommendations about risk
- management, and;
- A personal relationship with the agent/broker.
My intent in interviewing Krystal and David was to share the insights of a millennial seller and buyer of insurance. Millennials have now taken center stage, and the industry is eager to learn more about this demographic.
Insurance industry: Are you listening?
Barry Seigerman is an independent broker/producer. The opinions expressed here are his own.
To contact this contributor, please send email to bmseigerman@gmail.com.
Read more Barry Seigerman columns:
The independent insurance agent as an entrepreneur