An element of protection

Seth Zaremba of Zinc Insurance named PIA National's Young Insurance Professional of the Year

By Elaine Tolen

When Seth Zaremba was 18 years old, he left home with $200 and a duffle bag. His parents, like many others of high school graduates, had given him two options: “Shape up, or ship out.” Seth wasn’t college bound, so he started on his big adventure.

“I really had nowhere to go though,” Seth remembers, so he left his hometown of Hinckley, Ohio, and visited a friend attending college in North Hampton, Massachusetts. “He offered me his couch. It was my best (and only) offer, so I took it!”

For the next two years, he worked as a landscaper from 6:00 a.m. to 3:00 p.m., then washed dishes at a local restaurant from 4:00 p.m. to midnight. Every other day, he loaded fresh farm vegetables onto trucks for a local co-op from 1:00 a.m. to 3:00 a.m.

“I’ve been supporting myself ever since,” Seth asserts.

With such a work ethic, drive and determination, it’s no surprise that Seth, who today is the founder and principal of Zinc Insurance in Broadview Heights, Ohio, was named 2010 Young Insurance Professional of the Year by the National Association of Professional Insurance Agents (PIA National).

Seth wouldn’t be in the insurance industry, though, had it not been for a bum shoulder. After the various jobs he held during those first two years, Seth moved on to other endeavours, eventually becoming a steel fitter. The job finally took its toll. After his third shoulder surgery in 1999—at the age of 27—his doctor told him he needed to “push paper instead of steel.”

Seth’s uncle, who owned an insurance agency in Cleveland, offered him a job there. “I thought, ‘How hard could it be?’ My uncle sat me down with a phone book and told me to tell prospects that they can save 15% for the next two years on their premiums,” Seth remembers. “That’s all I knew about insurance or selling!”

A quick study, Seth learned the technical aspects of insurance on his own and on the job, as well as through State Auto’s two-week PaceSetter sales program. He progressed through the ranks, becoming a vice president at the agency.

By that time, Seth knew that he wanted insurance to be his career. He also wanted to own an agency and hoped that someday he might be able to buy his uncle’s agency. When that proved unworkable, Seth decided to start his own agency. He began saving as much money as possible, and by the time he left his uncle’s agency, he had put away enough funds to live on for two years.

This was a brave venture for someone with a wife and three children under the age of five, whose non-compete agreement left him with zero clients. “What’s the worst that could happen? If I fail, I’ll just go to work for someone else,” Seth recalls thinking. “I figured I could invest in the stock market or invest in myself. I chose myself.”

In January 2008, Seth founded Zinc Insurance. “I was toying with the name ‘Z Inc.’ when my wife, Jennifer—a science teacher—suggested ‘Zinc,’ an element known for its protective qualities, which represents what I want to do for my clients,” he explains.

Agency of the future

While at his uncle’s agency, Seth became involved in the PIA of Ohio and was beginning to build relationships with the association and other agencies. He was appointed to the association’s Agents Resource Committee (ARC), a hand-picked “think tank” whose members look for ways to help agencies stay independent, plan for perpetuation, and prepare for tomorrow’s insurance market.

From the ARC, the Agency of the Future Task Force was created with PIA agencies and company CEOs to build a model agency that would use methods and technologies to be competitive and successful in the future.

Zinc Insurance was chosen as the Agency of the Future’s model agency. “The biggest challenges I faced—besides funding—were the physical setup of the agency, securing company appointments, and developing the service model,” Seth says. Being part of the Agency of the Future project was a dream come true, according to Seth. “I benefited from the subcommittees’ research about how to get appointments, new technologies, etc. It was like having other agents, association staff and companies on my board.”

Seth’s first company appoint-ments were Ohio Mutual and Westfield, for which he is grateful “that they gave me a shot; I owe these companies everything.”

Even though the task force is no longer operating, Seth says that agents can call the PIA for the same information and resources that helped him.

Being the lone employee doesn’t mean Seth works alone, though. His innovative, outside-the-box thinking has led to partnerships that expand Zinc’s ability to offer other products and services.

“I saw what was happening in the industry,” Seth says. “Many agency principals are not prepared for perpetuation, but because values are low right now and they don’t want to sell, we can help them increase agency revenue now, and work towards a purchase later.”

Seth formed a separate entity called EZR, named for the principals, Michael Embrescia, Seth Zaremba, and Joe Randazzo. Michael and Joe are partners in Financial Network of America in Twinsburg, Ohio, a financial services firm that offers products such as retirement and estate planning, life insurance, LTC and annuities. With Seth’s portfolio of commercial and personal lines offerings, EZR provides a complete “package” that agencies can promote under their own name.

Seth says this approach has been a win-win situation for his firm and the agencies.

Another type of partnership—with non-insurance firms—has also been very profitable for EZR, Seth reports. “We round out the services that these other firms offer,” he explains. “For instance, we partner with an accounting firm that refers its best clients to EZR for property/casualty, health, and personal and financial products.”

Expanding the market

Around 2004, while still at his uncle’s agency and serving on the Agents Resource Committee, Seth and other volunteers working with PIA of Ohio Executive Vice President George W. Haenszel, CAE, were discussing how smaller agencies were struggling with markets, and how the PIA might be able to help them. As a result, the Agents Resource Committee and the PIA created and developed MarketSource, which helps agencies have access to certain markets without direct appointments.

“Many companies just laughed at us,” Seth recalls. “But Indiana Insurance—now Ohio Casualty— understood the idea and signed on right away. Now we’re one of their fastest growing companies.”

Four years later, MarketSource finished 2009 with $36 million in premium, with 450 agencies in three states. One thing that makes this group different, Seth says, is that potential business goes through one of MarketSource’s three front-line underwriters before being sent to a company. “We’re trying to prevent bad business from getting through and hurting our company partners,” he says.

Unlike most other market access companies, 100% of the commissions go to the agents. Last year, that meant MarketSource agencies netted $4 million-plus in commissions. Also, last year, MarketSource broke even and made a profit, right on schedule.

George Haenszel says, “MarketSource is the biggest volunteer undertaking that I’ve witnessed in 30 years of association management. PIA didn’t have the resources to staff such a large venture, so Seth along with all the volunteers and the staff at PIA handled every aspect.

“I am always on the lookout for leaders—especially young leaders—and when I met Seth, I knew I’d hit the jackpot,” George continues. “Seth’s youth brings a vital perspec-tive to deliberations on many issues, especially on topics related to technology and the needs and buying habits of younger consumers. Seth is committed to and passionate about the independent agency system and the PIA. He comes to association meetings prepared and ready to contribute.”

In addition to his PIA of Ohio committee work, Seth is now in his second term on the board of directors.

Looking to the future

In addition to all the responsibilities of a small business owner, Seth’s challenges as an independent agent stem from the national and local economic environment, direct writers and a packed schedule.

“In the Cleveland area, the economy has hit construction accounts especially hard,” Seth says. “My pro forma was blown away,” he laughs. Drawing from his steel fitter experience, Seth was building a niche in construction and machine shops. Now he’s more of a generalist. “Fortunately, I can relate to my customers whatever their backgrounds. I’ve worked in the trenches like them.

“In this economy, I have to out-manage, out-sell, and grow more with less resources,” he adds.

“Competing with direct writers poses a continual problem, especially when it comes to consumer friendly online technologies. Banks have figured out how to offer clients cash halfway around the world with an ATM card, while making it a secure transaction.

“Yet as independent agents, we can’t offer our clients access to their own policy online, nor can they perform simple actions regarding their account,” Seth continues. “We have to change quickly. Gen X and Gen Y won’t do business with a company that doesn’t provide real time, seamless service,” he concludes.

Making time for business, family and community is a challenge for most successful agents, and Seth is no exception. “Building a business from scratch wouldn’t have been possible without the huge support from my wife, Jennifer,” Seth says. Most days he leaves the house at 4:30 a.m., hoping to be home in time to see his three children, now ages 6, 5 and 3, before they go to bed. “My goal this year is to be home at 5:30 p.m. And weekends are for family.”

Another priority for Seth is community involvement. Projects have included creating a fund-raiser for the local American Cancer Society, serving on the board of a community center for underprivileged families, and being a volunteer counselor in his congregation.

With so much to do and not enough hours in the day, “somehow it all gets done,” Seth comments. “I try to keep life in perspective.” His advice: “Will beats skill, always has, always will!”