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During the late 19th and early 20th centuries, a number of black entrepreneurs founded life insurance companies to serve the African American community. These companies were successful in providing much-needed financial protection to black families, and they also helped to build black wealth and economic power. I’m guessing you have never heard of nor could name any of them, but let’s take a quick stroll through history because not only do these names deserve to be remembered, it is time for a renaissance.
To start, let’s look at four of the most influential black life insurance agents of the early 1900s:
Alonzo Herndon, who in 1905 established the Atlanta Life Insurance Company which became one of the leading African American insurance companies in the nation and set the pace for Atlanta’s burgeoning black entrepreneurs of the time. Herndon started his life as a slave and became the first African American millionaire in Atlanta, when $1M meant something. The Atlanta Life Insurance Company continues to serve communities in 17 states and positively impacts the community it was created to serve daily.
Alonzo Herndon, who in 1905 established the Atlanta Life Insurance Company which became one of the leading African American insurance companies in the nation and set the pace for Atlanta’s burgeoning black entrepreneurs of the time. Herndon started his life as a slave and became the first African American millionaire in Atlanta, when $1M meant something. The Atlanta Life Insurance Company continues to serve communities in 17 states and positively impacts the community it was created to serve daily.
The first A.L. of the insurance industry, Abraham Lincoln Lewis was the founder of the Afro-American Life Insurance Company in 1901. The company grew to become one of the most prominent black-owned life insurance and financial institutions in Northern Florida, making A.L. the first African American millionaire in the state of Florida. Afro- American Life ceased operations in 1990, but Lewis’s legacy and impact lives on.
The first A.L. of the insurance industry, Abraham Lincoln Lewis was the founder of the Afro-American Life Insurance Company in 1901. The company grew to become one of the most prominent black-owned life insurance and financial institutions in Northern Florida, making A.L. the first African American millionaire in the state of Florida. Afro- American Life ceased operations in 1990, but Lewis’s legacy and impact lives on.
In 1919 Frank L. Gillespie led a group of investors to start the Supreme Life Insurance Company in Chicago. Gillespie had worked as an agent for Royal Insurance Company and after becoming fed up with the substandard policies that he was forced to write for African Americans versus their white counterparts, he made the move that started the first Black owned life insurance company outside of the south. Supreme was one of the leading members of the National Insurance Association (NIA), which was, at its peak, a group of 46 black owned insurance companies that in 1960 collectively had over $1.65 Trillion (not a typo) of insurance policies in force.
In 1919 Frank L. Gillespie led a group of investors to start the Supreme Life Insurance Company in Chicago. Gillespie had worked as an agent for Royal Insurance Company and after becoming fed up with the substandard policies that he was forced to write for African Americans versus their white counterparts, he made the move that started the first Black owned life insurance company outside of the south. Supreme was one of the leading members of the National Insurance Association (NIA), which was, at its peak, a group of 46 black owned insurance companies that in 1960 collectively had over $1.65 Trillion (not a typo) of insurance policies in force.
John Merrick was born into slavery in 1859 in Clinton, NC. He started working early as a brick mason and also learned to be a barber during slow times in construction work. With hard work and providence, he was able to start his own barbershop that quickly expanded to multiple locations, which was uncommon for the late 1800s. His clientele became the wealthy, white, elite of Durham, NC and this network would prove beneficial to his future endeavors. In 1898, with a loan from Washington Duke, (yes, that Duke) who was one of his barber clients, he founded North Carolina Mutual Life Insurance Company.
The company grew to become the largest black-owned life insurance company in the United States and for most of the 20th century was the largest company run by an African American. Though the company began liquidation in October of last year, John Merrick forged a long and successful career, which is why he has been a huge influence on me and my own career in this industry.
John Merrick was born into slavery in 1859 in Clinton, NC. He started working early as a brick mason and also learned to be a barber during slow times in construction work. With hard work and providence, he was able to start his own barbershop that quickly expanded to multiple locations, which was uncommon for the late 1800s. His clientele became the wealthy, white, elite of Durham, NC and this network would prove beneficial to his future endeavors. In 1898, with a loan from Washington Duke, (yes, that Duke) who was one of his barber clients, he founded North Carolina Mutual Life Insurance Company.
The company grew to become the largest black-owned life insurance company in the United States and for most of the 20th century was the largest company run by an African American. Though the company began liquidation in October of last year, John Merrick forged a long and successful career, which is why he has been a huge influence on me and my own career in this industry.
These life insurance companies provided much-needed financial protection to black families who found it difficult, if not impossible, to get coverage anywhere else at the time. This helped catalyze the growth of black wealth and economic power, even as the nation struggled with Jim Crow, Segregation, and racial disparity, which persists today.
In the mid- to late-20th century, many of these black-owned life insurance companies faced financial challenges. This was due to several factors, including the decline of the inner cities, the beginning of white-owned insurance companies marketing to black customers, and changes in government regulations. As a result of these issues and others, many of these companies were forced to either merge with larger white-owned companies or go out of business.
Today, there are only a few black-owned life insurance companies that remain. These companies continue to play an important role in the black community, but they are not as large or as successful as they once were.
However, this does not have to be the end of Black America leveraging the benefits of life insurance to build wealth and economic power. A black owned life insurance company is great, but what would be the effect of 10,000 successful, black life insurance agents? These would be agents who serve all people and would be able to connect and educate African Americans in a way that they are not today.
We can either bemoan all the factors that led to the decline of the first go at financial security and independence and do nothing, or we can rally around this as a cause. Successful black insurance agents can join together and start sharing the benefits of this career and the financial prosperity it brings to both client and agent. As a cultural group, we all need to wake up to the reality that there is a better way, and we need to trust ourselves to be educated by people who have shown they know this industry.
Despite the challenges we have faced, there are still a few black-owned life insurance companies that are thriving. These companies are committed to providing financial protection to black families and communities, and they are playing an important role in the economic empowerment of African Americans. Now it is time to push and grow, both with those carriers and with a larger agent force.
Here are some things that can be done to help black-owned life insurance companies
succeed:
The life insurance industry took in over $1 Trillion in premium last year. What percentage of that do you think went through the African American community?
If we don’t do something now, our community will be so far behind, we will never catch up. Economics is power and building generational wealth is how you pass power down. This is not just a black issue, this is a minority issue, and while we may be catching up population wise, most minority groups are still way out of proportion when it comes to wealth, health, and education. By taking these steps, we can help to ensure that black-owned life insurance interests continue to play an important role in the economic empowerment of African Americans and demonstrate that other minority groups can do the same.
Give me your thoughts, feedback, and ideas in the comments about this or reach out directly to us at the Pritchett Agency to share your ideas.
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