Fred Stone’s insurance career began in 1977 in his hometown of Stuttgart. He has owned insurance agencies in Stuttgart, Heber Springs and Fayetteville. In 2005, he became CEO of Rebsamen Insurance, which changed its name in December 2007 to Regions Insurance. Regions Insurance is a subsidiary of Regions Financial Corp. of Birmingham, Alabama. Stone lives in Rogers and commutes most weeks to Little Rock.
Fred Stone has been CEO of Regions Insurance Inc. since 2005
What’s the most important thing a company should consider when shopping for a policy?
Generally, corporations are concerned about protecting their balance sheets. The focus is always on improving the safety for their employees as well as asset protection for their company. New risks, like cyber liability, constantly keep risk managers searching for new solutions. For the personal lines clients, they are interested in protecting their family members first and foremost. Providing ample coverage for their homes, cars and other toys also demands that the buyer takes into consideration that not only the price is fair, but more important, the terms of their policies fit their specific needs.
What is one thing most people get wrong about the insurance industry?
Many consumers think that all policies are created equal, when in fact the terms and conditions change from policy to policy as well as between carriers. Risks also differ within regions of the country, so pricing will differ accordingly. Working with an agent or broker whom you can trust with your assets eases many concerns for the client. We suggest annual stewardship reports for larger clients as well as those that have a lot of changes in their exposures.
What challenges are you seeing in the commercial property/casualty lines of business?
Consolidation of major insurance carriers will increase in the next few years. Also, consolidation of insurance agencies is on the rise. Finding and developing today’s workforce is a real challenge in many areas. Most state capitals, including Little Rock, had seven or eight national carriers 20 years ago. This provided training and education for employees, who would usually drift over to the local agencies. We have recently developed a “producer academy,” which consists of a yearlong training program for producer development. Next we are working on similar training for a career development program for our support staff.
What advice can you give to the executives who are responsible for risk management?
You are responsible for the safety and well-being of your workforce and your company as a whole. A real key is knowing the balance between the retention level your firm can assume and the insurance coverages you will need to purchase. Actually buying an insurance policy is the most expensive part of that equation. Knowing the total cost of risk for your firm is critical to knowing how much insurance to purchase and how much retention to assume. Also, most larger firms should have a captive insurance presentation prepared for them every five years.
Who was the most important influence on your career in insurance?
Al McDowell, the previous CEO of Rebsamen Insurance. Al was a great mentor, a very sharp insurance man and taught me the importance of working with our major carriers, not just locally, but in New York, London and Zurich.
How is Regions Insurance planning on growing in the next two years?
We are in the acquisition mode in Arkansas, Texas, Missouri and Oklahoma. Organic growth is also critical for our firm. We’ve recently opened offices in Dallas and the Houston area.
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