IIAV Past President - H. Powers Thomas

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This is the 25th in our series of conversations with former leaders of Independent Insurance Agents of Virginia. H. Powers Thomas served as IIAV Chairman of the Board after being elected in 1996 at the convention at Hilton Head, SC.

The conversation was probably a short one. Stating the obvious rarely requires a lengthy dialogue. Carolyn Thomas more than likely just finally blurted out, "Powers, you've run out of things to do."

With that, H. Powers Thomas must have realized that, at nearly 60 years old and retired, he was just "frittering his life away." It was time again to do something more meaningful than design and plan another rock garden with cascading waterfalls near the pond. It was time to come out of retirement.

Powers and idleness are not synonymous. Born into a farming family with Welsh roots, Thomas can easily trace his family’s establishment in Round Hill, VA in Loudoun County, to 1784 and a mere 10 miles from his current home. Thomas’ father helped found the Armfield Harrison & Thomas Insurance Agency there in 1945. 

After growing up in rural Loudoun County, Thomas sought to chart his own future. His father had attended Hampden-Sydney College and Thomas had applied there, as well as to the University of Virginia and Tulane University. However, his uncle, Tom Powers, had as a personal friend Dr. Earl Moreland. As President of Randolph-Macon College, Moreland — after having discussed the virtues of young Powers — sent a two page personally written letter to Thomas urging him to attend the then all-male college in Ashland, VA. Without having to apply, his acceptance was all but certain, so off to Ashland and R-MC he went.

At Randolph-Macon, Powers was on the tennis team, debate team, was a news director, sang with the Glee Club, and was a member of the Kappa Sigma fraternity. After graduation, Thomas served on the Board of Alumni for eight years.

Upon graduation in 1963, Thomas began working at UVA in the physics library on doctoral programs and was actually on the faculty for two years. He had applied to the law school at T.C. Williams in Richmond, at Tulane, and was also awaiting acceptance from UVA. Thomas had not yet received an acceptance letter from either law school. Thomas did, however, receive an "acceptance" letter of sorts when Uncle Sam sent him his draft notice in 1965. Having no opportunity for deferment, Officer Candidate School in the Navy seemed like a reasonable alternative and Thomas soon departed for Newport, RI.

Forty-five days into the OCS program, Thomas decided to approach his superior, Capt. Lemon. "Things are really heating up in Vietnam," blurted Thomas, "and I’d like to know what my options are." Thomas knew that in another month and a half he’d be on his way to Pensacola to train as a Navy pilot. Powers actually suggested to Capt. Lemon that he should be assigned to work for an Admiral. Thomas argued that he had all the qualifications and talents necessary to serve as an Admiral’s aide; he could write and handle public relations issues. Without much further discussion, Thomas was dismissed. About a week later, Capt. Lemon summoned him and asked if he’d like to serve as an enlisted man for an Admiral based in Norfolk on the USS Intrepid. Without finishing OCS, and thereby not becoming an ensign, Thomas was off to Norfolk. There, for the next 18 months, he wrote public service announcements, filed medical and fitness reports, was in both the Caribbean and Mediterranean seas, and got to witness — first hand from the bridge  — the retrieving of astronauts during the Gemini space projects.

Thomas shares this story: During his Mediterranean tour, the fleet had just departed Naples when the Admiral approached Powers — his confidant and caddie — with a conundrum: He had left his golf clubs inland; what should he do? Powers suggested that the Navy could send a chopper back to pick up the clubs. And so it was. What great use of US Navy resources! Powers commented that "the closest thing to a demigod on Earth is an Admiral."

In 1966, Powers Thomas was out of the Navy. Although still thinking about the prospects of law school, he returned to Loudoun County and went to work in the mailroom at the AH&T Insurance offices. He was about 25 or 26 years old and decided to stay with this career path. From mailroom and then to producer, Thomas excelled and was tapped as the agency President in 1981. Thomas built the agency by "wanting more chiefs than Indians" and the agency’s growth exploded. Thomas recalls that when he began with AH&T, the agency wrote about $800,000 in premium volume. When he became President, the agency was enjoying about $1.6 million in revenue. Over the next 16 years he built the agency into one of the largest independently-owned insurance agencies in the Mid-Atlantic.

In 1995 Thomas enlisted the help and wisdom of former IIAV President Bob Nein and installed an ESOP program for the agency. Thomas recalls that "he was only 57 years old and every young buck in the agency wanted his job and most of them were talented enough to carry it out if given the chance." AH&T brought in Bobby Reagan of Reagan Consulting (best known for their "Best Practices" surveys and consulting services). Reagan concluded that AH&T was "far too top heavy" and probably should be more streamlined for the agency’s long-term growth and perpetuation plans. While at the top of his game and with the agency now writing $50 million in premiums, Thomas took early retirement.

Powers Thomas was influenced by the Independent Insurance Agents of Virginia early in his career. His father would go to IIAV conventions and often take Powers with him. As a result, he got to know many industry people professionally and socially. Whether playing tennis with the likes of IIAV Past Presidents Vic Arthur and Bob Nein, or playing the piano at socials, Thomas interacted well. He was asked to work on the IIAV Crime Solvers program. Later he served on the IIAV Casualty Committee with Bill Lineweaver and Frank Hargrove. On other IIAV issues, Thomas recalls working with IIAV Past Presidents John Sim, Barney Grier and Dan Peacock.

Once on the IIAV Board, Powers quickly ascended though the chairs on the way to the office of Chairman. Along the way, Thomas was grateful for the leadership and encouragement of IIAV Past President Vernell Hogan.

It was during Thomas’ term as IIAV Chairman that he initiated and installed a formal evaluation and review process for the Association’s executive officer. Past Presidents Chuck Crallé and Harold Slemp were also instrumental in the process. While at AH&T, Thomas did something similar; he hired a human resources firm and, after much data gathering and surveys, determined that many personnel responded better by being "recognized rather than being rewarded." After introducing this new system at AH&T, personnel performances skyrocketed.

A Blue Ribbon group was formed by Thomas, along with Walker Syndor, Walter Robertson and Bruce Cabell, to address an insurance regulatory problem. Insurance filings in Virginia were unnecessarily sluggish and this was causing problems in an industry that needed to adjust to market changes. The Bureau of Insurance was approached with a logical and reasonable solution and, consequently, the existing cumbersome process was streamlined and the insurance industry benefitted.

It was also during Thomas’ term that serious discussions began regarding enlarging the IIAV office building, expanding the Young Agents segment of the Association and putting a greater emphasis on IIAV education planning. All three of these long-term planning projects have paid enormous dividends.

Roughly 30 years ago, IIABA had a very successful national marketing and branding project featuring actor Raymond Burr (Perry Mason, Ironside) promoting the "independent agent." When Burr died, the program died with it, as no spokesperson remained. IIABA contracted Powers to produce what turned out to be a 100-page research position paper on the declining role of the independent insurance agent without a national marketing advertising plan. Thomas took a year off to conduct the study and create the report. State insurance executives and major carriers were interviewed. During the process, it became clear that other industries were similarly losing market share. The report cited the cotton industry as a prime example, as it was by losing ground to synthetics. That industry created the "Cotton Is king" slogan and brand and the industry raised $1 per cotton bale to be used for a national marketing program. Powers had the idea of adding $1 per insurance policy for a similar campaign. State insurance departments and many carriers initially had no objections but IIABA, according to Thomas, shot it down by not letting it go to the Board for action.

Powers Thomas suffered through his retirement for about three years. He acknowledged that it literally nearly drove him crazy. Thomas, frankly, was embarrassed to not be working in his late 50s. He hesitated to answer the phone and cringed when anyone drove up his driveway.

A friend of Powers had shared with him that Erie Insurance Company was seeking an agent appointment in western Loudoun County (precisely where Round Hill is located). Powers knew the insurance industry inside and out. Starting an agency required no inventory and a very low initial payroll. After negotiating for six or seven months, H. Powers Thomas was back in the insurance business. Ten years after that second beginning, Powers Thomas Insurance serves nearly 700 accounts with a 50/50 mix of personal and commercial business. The staff of three just moved into a new, larger office in "downtown" Round Hill. Powers still likes to use the old USF&G slogan, "Pick your agent as you would your doctor, lawyer or accountant." It has served him well over the decades and he proudly boasts that he is now insuring third generation clients.

Starting a new agency from scratch is not an easy chore. But Thomas admits it has been fun and exciting. He recalls playing in a much larger arena at AH&T, recounting that one year the agency was seeking to take on Hartford. During the negotiations, Hartford sought a $1 million first year premium commitment. After carefully considering the terms, Thomas agreed. The agency worked hard and was focused on satisfying the commitment, actually surpassing the first year goal. Such hard work and commitment led to Thomas being named Jonathan Trumbull Council Chairman.

Next month Thomas will be 70 and is looking forward to continuing to grow the agency. After all, it is still a "young" agency. Offering advice to newcomers in the insurance business, Powers Thomas comes to the table with a rather unique resumé. "Newcomers will do well to take the necessary time to talk with veterans of the insurance business to see how their successes were accomplished," advises Thomas. He further adds this sage advice, "Spend time in the trenches; win the confidence of those with whom you are working; do what you say you are going to do; take no shortcuts; and do your homework."

During a recent session with a commercial account Thomas was trying to win, he discovered some major problems with the manner in which the other agent was writing the account. The class of business was mis-rated, the workers' compensation policy was missing a key endorsement, and significant elements of coverage were completely overlooked. Thomas spent countless hours with the client learning his business before preparing and presenting the proper coverages. Properly written, the account was going to be accompanied by a substantial increase in premium. After all the hard work and showing the client how woefully exposed he had been and how he was now in professional hands, Thomas won the account. Thomas wryly stated that "sometimes you gotta make ‘em sick before you can make ‘em well."

Even today, Thomas is keen on the business and keen on IIAV. He has recently made two suggestions to add value to the Association and IIAV is taking his recommendations quite seriously.

As was pointed out earlier, Powers and idleness are not synonymous . . . . but H. Powers Thomas can always be coupled with independence and success.

If you missed the previous articles you may find them on our website at www.iiav.com under News. 

Danny Mitchell (dmitchell@iiav.com), IIAV Membership/Marketing Director