4 minute read
Q&A with Michael Gaetano
Mike Gaetano is president of The Hartman Group, an independent agency with offices in Williamsport, PA and State College, PA.
Q. How did you get your start in the insurance industry, and how did your career progress?
A. I graduated from the University of Scranton in 1981 with a bachelor’s degree in business management and started my career at Aetna as a surety bond representative in Harrisburg, PA. I came to Hartman in 1988 as a bond specialist and learned the P&C side and have served as agency president since 2002.
Community is an important part of my career, and we emphasize community service at Hartman, leading to my service on numerous boards including a term as chair of the Williamsport Lycoming Chamber of Commerce.
Q. Tell us about the changes you’ve seen in the independent agency system over the years – the good, the bad, and the ugly!
A. The good – the evolution from being sales based to consultancy based. Agents now become a key part of the client’s “team” and contribute to their success.
The bad – the emergence of modeling as a predominant underwriting strategy and less reliance on field and character underwriting.
The ugly – inadequate investment into agency perpetuation has created a path of least resistance, in favor of M&A, relative to internal perpetuation.
Q. Your agency has received many accolades, including its recent distinction as a Best Practices Agency. To what do you attribute this success?
A. Hard work, knowledge, and integrity. We build around these attributes as our core. In today’s business climate, we believe that organized strategic planning is essential. And we execute the plan. We owe our success at Hartman to our team. I’ve had incredible partners … two who have been beside me for over 25 years and are like brothers (well, one is my brother), two in their 40s, and two in their 30s. Leadership matters. Lastly, you need great employees, and we are absolutely blessed in that respect.
Q. Your agency has taken a proactive and deliberate approach to perpetuation planning. Tell us about the process.
A. We committed early in the process to remain independent as we perpetuate the company we have built. The only way to successfully accomplish this is to identify excellent young people with leadership potential and feverishly mentor them. Our planning meetings focus heavily on human resources and culture, and how to perpetuate our approach to business. The financial/ ownership structure of the insurance agency system has changed drastically over the last several years. Agencies must have a commitment and willingness to invest in the independent system and need the support of the insurance carriers.
Q. What advice would you offer to the leadership at other independent agencies based on your own perpetuation-planning experience?
A. Don’t give up. It is heavy lifting, but if your objective is to be a better company for your clients, your employees, and your communities, make perpetuation a keystone priority. We have found this to be the hardest part of our strategic planning, but you can do it.
Q. The Hartman Group has several young agents in its ranks. What strategies have you found most valuable for employee recruitment and retention?
A. We “prospect” for human resources constantly, in a manner that is similar to prospecting for new business. We are continually involved with our community, and we meet individuals that display interest, or personality traits, that could serve our industry; and then we talk with them.
After someone joins our team, we mentor them and include them fully in our focus on creating value. We believe our level of engagement with our employees, and then extended into the community, are key factors in creating a meaningful workplace.
Q. When you’re not working, how do you enjoy spending your time?
A. I enjoy reading, exercising daily, watching Penn State wrestling, and spending time with my six grandchildren. I am very fortunate that my three children decided to stay in the Williamsport area to raise their families, so they keep my wife and me hopping.
