The Oregon Agent, Spring 2014

THE

Spring 2014

Official Publication of the Independent Insurance Agents and Brokers of Oregon

Build Your Irresistible Brand CAP It! What Should You Do When Buying, Selling and Merging Agencies 14 Customer Service Questions to Ask for 2014

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Spring 2014 • The Oregon Agent

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THE

SPRING 2014

Spring 201

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Official Publica

tion of the Ind

IIABO Office 5550 SW Macadam Suite 305 Portland, OR 97239 Phone: 503-274-4000 Fax: 503-274-0062 Toll Free: 866-774-4226

Vice President Marketing & Communications Barb Demings barbd@insureoregon.org Assistant Vice President Education & Finance Tyra Dressel tyra@insureoregon.org Director Agency Products & Services Abby Kahl abbyk@insureoregon.org IIABO Lobbyist Roger Beyer roger@rwbeyer.com

For more information on advertising, contact Jim Aitkins Blue Water Publishers 22727 - 161st Avenue SE Monroe, WA 98272 360-805-6474 fax: 360-805-6475 jima@bluewaterpublishers.com The Oregon Agent is the official magazine of the Independent Insurance Agents and Brokers of Oregon and is published four times yearly. IIABO does not necessarily endorse any of the companies advertising in this publication or the views of its writers.

nce Agents and

Build Yo

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Letter from the President, Steve Wilson

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IIABO 2013-2014 Leadership

10 Build Your Irresistible Brand 14 CAP it!

16 What Should You Do When Buying, Selling & Merging Agencies?

19 14 Customer Service Questions to Ask for 2014 20 Tools That Enhance Claims Information and Efficiency for

Independent Agents & Brokers 25 Thank You for Sponsoring Our 2014 Portland ACSR Classes 26 4 Keys to Selling More by Delivering Great Customer Service 29 The 6 C’s of Successful Selling

Anderson and Murison

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BCE Consulting

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Burns & Wilcox

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Quirk & Co.

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RT Specialty

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EMC Insurance

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Ron Rothert Insurance Services 22

Grange Inc.

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Griffin Underwriting

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TAPCO 11

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The Oregon Agent • Spring 2014

rand

What Sh ould Yo u Do Wh Buyi en and Me ng, Selling rging A gencies 14 Cust Questio omer Service ns to Ask for 2014

INSIDE THIS ISSUE:

Capital Insurance Group

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CAP It!

THANK YOU ADVERTISERS:

Imperial PFS

Brokers of Ore

ur Ir resi

IIABO Staff Directory Executive Vice President Jim Perucca jimp@insureoregon.org

ependent Insura

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Western National Ins Group

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FROM THE PRESIDENT

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n April 9, 2014 the Independent Insurance Agents and Brokers of America (IIABA) will host their annual Legislative Conference in Washington D.C. During this event, over 1,400 agents from across the country will converge for a “Day on the Hill”.

All 50 states and the District of Columbia will be represented and scheduling visits with their respective legislators.

The IIABA is a powerful lobby for independent insurance agents, and the Legislative Conference allows us to display the depth of our grass roots.

Agents begin the day with a breakfast briefing and insights from a variety of legislators, both Republican and Democrat. Over the years, the breakfast audience has heard from Presidents Clinton and Bush, and key leaders such as Senate President John Boehner. You don’t attract this caliber of speaker unless your organization is recognized as a major influence in congress.

Later that day, up on the Hill, the Oregon delegation will conduct meetings with each of our state’s national representation. Last year we spent considerable time with Representatives Walden, Bonamici, Schrader and DeFazio. We also met with the senior staff at the offices of Senator Wyden and Merkley.

We remind our lawmakers of the importance of state regulation, the importance of Federal Flood Insurance Reform, the need for Terrorism Insurance (TRIA), distribution of Crop Insurance and our desire for a national producer licensing bill.

The IIABO will constantly remind legislators of the important role the independent agent serves as advisor, advocate and expert. The purchase of even the most basic policy is complicated and requires the services of a trusted advisor. Putting a “face” on our business and educating legislators and staff is one of the most important things the IIABO does for its membership.

This year Oregon will be represented by our National Director, Brian Wilbur (Forest Grove), board members John Timm (Portland), Ed Davis (Salem) and our Executive Director, Jim Perucca.

If you would like to learn more, or to get involved in the IIABO, give me a call. I’d love the opportunity to hear from you.

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Steve Wilson, President IIABO Ashland Insurance

Your association staff: Executive VP Marketing & Communications Education & Finance Products & Services Toll Free Numbers: 6

The Oregon Agent • Spring 2014

Jim Perucca Barb Demings Tyra Dressel Abby Kahl

1-866-77-IIABO or 1-866-774-4226

503-274-0583 503-274-4000 ext. 26 503-274-4000 ext. 31 503-274-4000 ext. 23

jimp@insureoregon.org barbd@insureoregon.org tyra@insureoregon.org abbyk@insureoregon.org

Acquisition Strategy

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2013 - 2014 IIABO LEADERSHIP

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Steve Wilson President Ashland Insurance, Inc. Ashland

Gary Githens Past President Brown & Brown NW Bend

Mark Atkinson Board Member Atkinson Insurance Group Portland

Trish Fulwiler Board Member J.D. Fulwiler & Co. Portland

Ed Davis Vice President/Legislative Chair MaPS Insurance Services, LLC Salem

Keith Blackerby Board Member Bisnett Insurance, Inc. Lake Oswego

Jim Ginger Board Member KPD Insurance, Inc. Springfield

Adam Harris Board Member LaPorte & Associates, Inc. Portland

Greg Horner Board Member Insurance Partners, LLC Portland

Kay Hunkapillar Board Member Wheatland Ins. Ctr., Inc. Pendleton

Marty Kantola Board Member Chet Hill Insurance Portland

Debbie Krambeal Board Member CAL/OR Insurance Specialists, Inc. Harbor

Ryan Miller Finance Chair Miller Insurance Tualatin

Matthew Pidcock Board Member Valley Insurance LaGrande

Steve Smelley Board Member PayneWest Insurance Beaverton

Brett Slater Board Member Slater & Assoc. Insurance, Inc. Tualatin

John Timm Board Member Timmco Insurance, Inc. Portland

Brian Wilbur National Director Pacific Insurance Partners Forest Grove

The Oregon Agent • Spring 2014

Steve Fitzwalter Board Member Rogers, Fitzwalter & Powell Portland

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Build Your

Irresistible Brand

N

othing is easy about selling a product that people wish they didn’t have to purchase and which they hope they never have to use. The secret to success lies in the strength of your brand.

As an independent insurance professional in a highly competitive marketplace, your most valuable asset is your brand. It builds trust and provides clients and prospects with an assurance of quality and value.

If this sounds like a lot more than a logo, tagline, website or marketing brochure—it is. A strong brand represents an emotional bond that is built over time.

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The Oregon Agent • Spring 2014

By Patrick Galvin, The Galvanizing Group

What Makes a Brand?

A brand is defined as everything that a person thinks or feels about a product, service, experience or organization.

Logos, taglines, websites and marketing brochures are ways to communicate a brand, but they are not the brand themselves. A strong brand guides all aspects of the insurance business—from the delivery of products and

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services by independent producers to the ongoing management of agency operations.

If this didn’t already sound hard enough, consider this: today’s digitally savvy consumers expect to connect with brands and have conversations using tools that did not exist previously.

The good news is that these same consumers have developed a healthy skepticism of the expertise that talking geckos and fictional spokespeople put forth on the topic of insurance. Instead, policyholders and prospects seek ongoing educational content from qualified insurance experts, i.e., real people, on everything from protecting assets to mitigating risks and avoiding liabilities.

By acting as a source of helpful information, you are more likely to be rewarded by word of mouth referrals.

According to a 2011 National Association of Insurance Commissioners report, 79% of people asked family and friends for referrals when shopping for insurance; 65% also asked colleagues and social acquaintances.

How to Stand Out In a sea of information, how do you and/or your agency stand out? It comes back to the strength of your brand. Avoid the common trap of mistaking a high rate of retention for having a strong brand. High retention rates are often a result of inertia.

Worse yet, policyholders may simply be sticking around because your competitors haven’t come knocking on their doors—for the time being, anyway.

The question that independent agents should be asking themselves is, “How much more can I achieve with a strong brand?” Whether you are revitalizing an agency brand or working on your own personal brand, follow these strategies: 1. Define your brand promise A brand promise is exactly that—a promise. Typically a single sentence, a brand promise is a clear and concise statement that explains what your brand stands for and how it connects with policyholders and prospects on an emotional level. More important, a brand promise implies action. It guides the actions of producers and helps with the creation of agency guidelines, standards, quality controls, employee training and more.

Practical tip: Use laddering techniques To arrive at a meaningful brand promise, start with non-differentiating functional features (e.g., competitive rates, great customer service) and ladder up to the 12

The Oregon Agent • Spring 2014

emotional, spiritual and cultural values that form the backbone of all strong brands. This involves asking a series of questions designed to get to the whys and hows of what is most important in the lives of your target audience.

For example, I worked with a small regional agency whose size we turned into a competitive advantage by focusing on its ability to respond quickly with hands-on, personal attention and support. The resulting brand promise reflects the sense of belonging and gratitude associated with clients who feel respected, appreciated and heard.

2. Identify and prioritize your brand touch points A brand is only as strong as its weakest link. In other words, your brand is the sum of every interaction that you have with the outside world. Each one of these interactions, or touch points, is a chance to reinforce your brand promise—or take away from it.

Only by identifying all your high-impact brand touch points can you begin to develop a plan for managing them. Yet far too few insurance professionals have a formal brand touch point plan in place. This can lead to some unfortunate “brand breakdowns” along the way.

Practical tip: Create a brand touch point wheel The touch point wheel is a helpful tool to identify and prioritize opportunities for making an impression throughout the insurance sales cycle. As the name implies, it is a circle that is divided into sections (e.g., pre-purchase experience, purchase experience, postpurchase experience). Within each of the aforementioned sections, brand touch points are broken down further to include every possible point of interaction with policyholders, prospects and the public—from sales calls to claims.

Each wheel is different. The point is that your brand touch points have to be identified before they can be prioritized, assigned and measured.

3. Communicate with consistency Strong brands don’t happen overnight. They require a long-term commitment and clear and consistent communications. In the digital age, they also require a basic understanding of the power of strategic, optimized content—the type of content that educates and entertains

while building brand awareness and generating word of mouth.

Practical tip: Develop a brand content calendar To make branded content a cornerstone of your marketing efforts, you need a detailed six to twelve month plan that aligns with your brand and business goals. What is your area of expertise? What is your unique point of view? How will you develop content for different media outlets?

Content calendars can take different shapes and forms, but I recommend starting with a list of highlevel topics and themes that can be adapted to different formats. Some of your clients may prefer to receive print newsletters—and that’s okay as long as you create a plan for repurposing what you already have into new ways that showcase your expertise and are meaningful for your targets. (For example, can you turn newsletter excerpts into informative 140-character Tweets?)

It also helps to schedule ongoing brand-building activities like weekly blog posts, bi-weekly Facebook posts and monthly podcasts. This provides structure and accountability for tasks that often get pushed to the back burner. It also leads to easier decision-making.

Should you share that update on Facebook? Post those pictures to Pinterest? If something doesn’t support or enhance the brand objectives that you’ve outlined in your content plan, move on.

A Final Word At its most basic, branding is about connecting with the values and beliefs of your customers—backed up with stellar service, competitive products and services, and expert knowledge. None of this comes easy, of course. Yet as an independent insurance agent, you are in a unique position to build solid relationships of trust. Add to that a strong brand that is worth buzzing about, and the return on investment is clear.

Patrick Galvin is the chief galvanizer of The Galvanizing Group (www.galvanizinggroup.com) in Portland which helps companies leverage word of mouth to increase loyalty, referrals, and sales without advertising. He is also past president of the Oregon Chapter of the National Speakers Association and speaks to audiences throughout the country.

He will present on “Building Your Irresistible Brand” and “Beyond Networking: Cultivating Your Real World and Online Connections to Grow Your Agency” at the IIABO 2014 86th Annual Convention & Trade Show, August 24-26, 2014, at the Eagle Crest Resort, Redmond, Oregon.

Spring 2014 • The Oregon Agent

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Jim Perucca IIABO Executive VP

CAP it!

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e all know the value of utilizing independent agents and why the independent distribution channel is superior to other methods. You offer choice, analysis, advice and service when it is needed most. However, we are often frustrated because consumers are not aware of these facts and succumb to advertising gimmicks pushing price ahead of coverage and value. So how do we get the message out?

For the past few years, the Independent Insurance Agents and Brokers of America (IIABA) and Trusted Choice®, in a collaborative effort with six independent carrier partners, have been working behind the scenes to develop an online marketing program to help independent agent members recapture market share from direct marketers and captive agency carriers. This effort has included expenditure of millions of dollars in research and development and untold man hours of insurance and technology experts.

Those collective efforts, known as Project CAP, have resulted in a re-designed consumer based website for TrustedChoice.com that was recently rolled out. While still a work in progress, you now have the opportunity to consider what is evolving.

What is this Project CAP and what does it do? CAP is an acronym for Consumer Agent Portal. Trustedchoice. com was initially created to allow consumers to find Trusted Choice® agencies. Once completed, the new version will allow consumers to obtain competitive quotes from multiple independent channel companies. Upon selecting a quote, their information will be electronically transmitted to a local independent agency which will then bind coverage and handle their account. The Trusted Choice® website also serves as a tool to help consumers research insurance questions and educate them about insurance choices including the advantage of utilizing independent agents.

The projectcapmarketing.com website provides agencies information about marketing tools and experts available to assist member agencies enhance your websites, increase your visibility on the web, push your content higher in web search results, assess your brand image, evaluate your use of social media, and more.

The first phase of the project is focused on personal lines since that is where the captives and direct marketers have the biggest market share. It will eventually evolve to include commercial insurance options as well.

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The Oregon Agent • Spring 2014

So, is it for you? What’s the cost to participate?

Your basic listing on the agent locator is a member benefit and populated with your membership data. You have the option to complete an enhanced agency profile. Agencies doing so are provided an expanded listing, receive enhanced search placement and are qualified to receive “get a quote” submissions completed by consumers. The established cost is $75 per month, but special pricing is available during the initial launch now through part of 2014. Details can be found at projectcapmarketing.com. Or, if you prefer, you can call 855372-0070 and speak directly with CAP staff members.

As I noted, the project is evolving, and as we have seen on the healthcare exchanges, there can be glitches in the implementation process so all is not yet perfected. Even if you are not interested today, you may want to check back periodically as modifications and tweaks are made to services, pricing and the Trusted Choice® portal.

Why should you even worry about internet marketing or an online presence at all? Well, simply put, we will eventually have to evolve with the rest of the world. Statistics indicate that 75% of consumers conduct research on insurance coverage online before making a purchase. I would seriously doubt that statistic will decrease as the Gen Y, Gen X and millennial generation get older and the number of baby boomers making purchasing decisions dwindles. Clearly, it is becoming increasingly important to consider how technology and an online presence have become incorporated into your marketing strategy.

If you want to hear answers from the top, plan to attend the 86th annual IIABO convention, “Get Around..Get Ahead”, August 24-26, 2014 at the Eagle Crest Resort, Redmond, Oregon. IIABA National Chairman Tom Minkler will provide details about the project. Tom’s presentation is scheduled for our convention breakfast session, August 26th at 7:30AM. Who knows, before the end of the session, you may have any number of ideas you want to implement in your marketing program!

CAP is only available to members of the IIABO. If you are an independent agent who would like to join or learn more about membership, please email me at jimp@insureoregon. org or call my direct number at 503-274-0583. Membership applications can be found at our website, www.iiabo.org.

Spring 2014 • The Oregon Agent

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G G What should you do

?

When Buying Selling

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Merging Agencies

Insights from the Experiences of Swiss Re Corporate Solutions Veteran Underwriters

O

ne of the biggest decisions of your professional insurance career comes when you decide to either sell the agency you’ve worked long and hard to create or to buy another agency that someone else has worked long and hard to create. You’ve met with the owners of the agency, you’ve looked at the book of business, you’ve agreed on a price, hopefully your attorney helped draft the buy/sell agreement and you’re a few short days away from closing the deal when suddenly someone asks: what about the E & O coverage? Who’s doing what? Are you going to pick up the prior acts or am I? Can we just transfer the E&O policy to the new owners?

What kind of losses have you had? All of these questions should be asked at the beginning of the talks regarding the sale/purchase, because they can have a big impact on the deal. Unfortunately they usually aren’t discussed until the last minute.

Think about this: when you buy a new car or sell your current one, one of the first things you should do is contact your insurance provider. It’s no different when you are buying or selling an insurance agency. It’s the same for when you are only buying or selling a book of business. Most E&O policies state that you must notify your E&O provider within 90 days of a merger or acquisition (check your policy to verify time limits). Failure to notify your carrier in a timely manner could result in a gap in coverage. So let’s go through the steps you should follow when you are making a life- and business-changing decision regarding your agency.

When buying an agency You’ve been talking with a fellow agent about buying their agency for some time, and now you’ve both decided the time is right. There are many details to consider; the first of which is to do your due diligence to review the other agency’s operations, book of business, finances and E&O policy. At this point it is advisable to retain an attorney to help you through the process. However you and the seller should each seek separate counsel, because an attorney can only represent one party, not both. It’s also a good idea to have a confidentiality agreement with the seller so you can freely review all the documents necessary to begin the ownership change.

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The Oregon Agent • Spring 2014

After you’ve completed your due diligence and both are to provide for, you should include how they will be taken care comfortable with all aspects of the agency, the attorneys will of in the agreement. It could be a source of negotiation as the draft the buy/sell agreement. Included will be such things as the seller may not wish to add any permanent staff, so make sure it timing of the sale, the assets to be transferred, price and who is is brought up in your discussions with the buyer. responsible for the liabilities of the selling agency. The cleanest An important aspect mentioned previously is protection way to do this is for each party to retain their own liabilities. The for you if a claim should arise after the sale. Again, the best seller would purchase tail coverage, and the buyer would add the way to ensure this protection is to purchase tail coverage from new book of business to their current E&O policy. your current E&O carrier. While you may not want to add the The reason this way is the cleanest is because the seller expense and you think you are protected enough through your would have peace of mind in knowing that should a claim arise agreement with the buyer (they will provide coverage for prior after the sale for acts while they owned the agency, their E&O acts and maintain an E&O policy), you have no guarantee policy would still provide coverage for them. For the buyer, it will be done. It is not unheard of for the buying agency to they would know that they wouldn’t be responsible for any acts either go out of business after the sale, sell their agency to that occurred prior to the purchase. It would be true even if the another party not agreeing to provide prior acts, or have their selling agency continued as a separate entity for the buying E&O policy terminate. In each of these cases you could be left agency. In most cases, even when the buyer maintains the new without coverage. agency as a separate entity or location, it can be included on Another thing to consider is whether your agency should their current E&O policy for errors and omissions that are made be added as an additional insured on the buyer’s policy so that after the sale. any claims, regardless of whether they are for your agency or Another option, while not the best way to transfer the buyer’s agency, would be subject to the policy limit of the ownership, would be for the purchasing agency to agree buyer’s policy, even if it results in multiple claims. In other to accept responsibility for prior acts by adding the selling words, are you comfortable that the policy limits of the buyer’s agency to the buying agency’s E&O policy. However, it must E&O policy are sufficient to cover both yours and their claims? be approved by the E&O carrier before the sale is completed.

It also should be made clear who would be responsible for any (Another reason it is imperative to contact your E&O agent as deductible payment. soon as you begin the buy/sell process!)

You will be required to provide a loss history of the seller, and the carrier may require an application providing information about the mix of business, gross annual premium, commissions, staff, etc. In some cases the carrier may not agree to provide prior acts due to claims history, nature of the book of Imperial PFS, the leader in premium financing, business, etc. In that case the seller continues to focus on the success of our agency partners. should purchase tail coverage from their The relationships we have developed with our agency partners are a current E&O carrier. critical element in the way we do business. These relationships have One final thing to keep in mind enabled Imperial PFS to continually develop and improve programs is that the cost of tail coverage or and services. Customer focus is why we operate a nationwide network of local offices, each shaped by the region it serves. We additional premium expense if the prior look forward to your continued partnership with Imperial PFS and acts are provided by the buyer can, and providing you the most comprehensive benefits in the industry. should, be considered in determining the sale price of the agency.

powered by

TeamWork

When selling an agency As a seller of an agency, you may think it important to maintain your agency’s legacy. If it is important to you, be sure to discuss it with your attorney so it is properly addressed in the agreement. If you have valued employees you wish

ipfs.com marketing@ipfs.com Bothell: 800.888.2750 Spokane: 800.234.7373 Spring 2014 • The Oregon Agent

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11716 WA IIABA ad.pdf

Mergers If you are merging with another agency to either form a new agency or be a continuation of one of the two, there are different ways to handle it in regard to E&O coverage. One way is to have a new E&O policy for the newly created entity.

This option ensures a clean slate for all involved. If a new policy is created, each of the former agencies could purchase tail coverage or could be added as additional insureds on the new entity’s policy. Again, keep in mind that any claims would be subject to the limits of the remaining policy, which must be approved by the E&O provider prior to the completion of the agreement (to ensure that the carrier could comply).

Another way to handle a merger is to terminate one policy and have that agency added as an additional insured to the policy of the “surviving” agency. The agency terminating their policy could either purchase tail coverage or be added as an additional insured upon approval by the E&O provider.

Three key points to remember 1. Consult your attorney and have a formal written agreement outlining the duties and responsibilities of all parties.

2. Contact your E&O provider as soon as possible to ensure that coverage can be provided as you intend and there are no coverage gaps.

3. Giving timely notice to your E&O provider is of utmost importance as many carriers may be unable to comply with your intent after the transaction has been completed.

You spent your professional insurance career building a business that provided you with a livelihood and personal fulfillment. If you are either growing or selling your agency, you want peace of mind in knowing that you have adequately protected yourself.

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Transfer of a book of business Remember that even if all you are doing is transferring a book of business, either as a buyer or a seller, all of the things mentioned previously still apply. While you might think that a transfer of only a small book of business should be uncomplicated, as soon as a claim is made it can become very complicated indeed.

12/18/12

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Internal sale Many times an owner has a key agency employee they believe is qualified to take over the agency. Everything already stated also applies in this situation. There should be due diligence by both parties, attorneys should be retained, agreements drafted and entered into and all other aspects of the change of ownership should be carefully contemplated and resolved.

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14 Customer Service Questions to Ask for 2014

By Shep Hyken

I

love a good list of customer service ideas, and since it’s the New Year, I thought it would be appropriate to share a list. These customer service questions are for you to ask yourself and others in your company. These are conversation starters you can use to have discussions about delivering amazing customer service.

1. What three things do you do best that differentiates you from your competition? Really look at how you are different. What is it that your competitors can’t say about themselves that you can say about yourself?

2. You can’t be the best at everything, so what is it you are not good at doing? Don’t try to change what you are not good at. Focus on what you are good at and improve upon where you excel.

3. What does your competition do that you can learn from? By the way, don’t copy the competition. Learn from them and improve on what you learn.

4. What do you do to make people want to be around you at work? The focus of this question is on your internal customers. Do they enjoy working around you? If so, why?

5. What, if anything, do you do to come up with creative and innovative ideas? Does your company have some type of employee suggestion program?

6. How does your company train employees in customer service and relationship building skills? Many times companies spend a lot of money and time on training technical skills. The best companies also train soft skills, like customer service.

7. What policies or processes stand in the way of delivering amazing customer service, and can they be removed? In other words, how easy is it to do business with you?

?

8. What does your company do to actively seek out complaints and problems? A complaint is an opportunity to show how good you are. Seek them out.

9. How do you or your company debrief negative experiences, turning them into teaching opportunities? Use a negative experience or bad review as a learning opportunity to get better.

10. How do you celebrate success with our employees? When you have success, let everyone know they are appreciated.

11. Have you mapped out the typical customer experience and examined the impact from all touch-points at the front line?

The customer journey map is a powerful tool for spotting opportunities to improve existing customer service.

12. Have you identified how everyone behind-the-scenes impacts the front-line customer experience? Everyone has a customer – and sometimes it’s an internal customer. Jan Carlzon, former chairman of Scandinavian Airlines says that if you aren’t actually supporting the customer, you are probably dealing with someone who is.

13. What do you “give back” to your community? Community can be defined as local, global, causes you are involved in, etc.

14. Does everyone understand that customer service is not a department, but a philosophy? It’s also an attitude!

What questions would you add to this list? Let me know.

Copyright 2013 by Shep Hyken. Reprinted with permission.

Spring 2014 • The Oregon Agent

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Tools That Enhance Claims Information & Efficiency for Independent Agents & Brokers

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The Oregon Agent • Spring 2014

Several tools are now available to agents that can streamline their claims processes significantly and enable them to automatically download claims information. The author demonstrates how an agency can fit each of these tools together to create more efficient claims workflows. The article also points out the critical role agents play in advocating for their carriers and vendors to provide these tools and then to implement them in their agency.

By Donna J. LaGoy AIT, ACE

T

his article discusses technology tools that have been introduced to permit independent agents and brokers to serve their clients more promptly and effectively in claims situations.

Claims download, real-time claim inquiry, real-time filing of First Notice of Loss (FNOL), real-time requests for loss runs, and Activity Notes all have great promise to make agency workflows more efficient.

Most of these new capabilities have already been introduced by some carriers, but we need to see much broader usage. The agents will play the critical role in making this happen, but first they need to be convinced that these new technologies will materially improve their workflows. This article seeks to make that case.

Claims Download One of the most exciting new opportunities is for the automatic downloading of new claims and claims status information into agency management systems. An ACORD standard has been put in place for claims download, and several vendors and carriers have begun to implement the new capability.

However, an agent might ask: “How exactly will claims download benefit me? I already have claim inquiry available via carrier websites or through my agency management system using real-time inquiry.” Or, the agent might say: “Why do I need download, when I already receive an e-mail or Activity Note into my agency management system that tells me there is a claim?”

Spring 2014 • The Oregon Agent

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Real-time claim inquiry has been a great enhancement for agents and will continue to be so for up-to-the-minute information. But, it is only beneficial if the agent knows the claim has taken place! Further, real-time claim inquiry does not populate the agency management system’s database, and so the agent must enter the claims information into his or her system.

E-mails or Activity Notes1 are also great “incremental” steps, but again, the agent has to enter the claim into the agency management system and update the information as the status of the claim changes.

The goal is for all of the latest features of technology to work hand-in-hand to make the claims process as streamlined as possible.

overtime under terrific stress, and they want the needed claims information to be handy in their system. They want to spend their limited time assisting their clients regarding the claim and demonstrating the value added that their agency provides to its clients. The last thing these employees want to spend hours upon hours doing is entering all of this claims information into their system.

Claims Download Critical in Disaster Situations The horrific storm seasons we have had in recent years provide an instructive example as to how claims download can help agencies. If an agent has had no power and has had clients reporting claims directly to the carrier, how does he or she know what claims have been filed? Once the agency finds out about the claims, who is going to enter the hundreds or thousands of claims into its agency management system? Who is going to update the status on each of the claims, as it is paid or closed? The agency’s employees are already working

Claims download would save the typical agency hundreds of hours per year, as well as enable agency employees to provide better service to their clients should a claim occur.

The Oregon Agent • Spring 2014

Claims download allows for all of the claims to be: • automatically entered into the agency management system • updated as the status is changed, and • closed when the carrier closes it.

Recommended Claims Workflow The question, then, is how do claims download, real-time claims inquiries and e-mail or Activity Notes work most efficiently together? Consider the following workflow: 1) The claim is reported directly to the carrier by the

2) 3)

4)

5) 6)

7)

8)

client (FNOL reported by the agent is a different workflow and is addressed below.).

An e-mail message or Activity Note is sent to the agency instantly notifying it of the loss.

Overnight, the claims are processed via a batch process and downloaded into the agency management system.

A log is waiting for the agent in the morning, when he or she comes in to review what was attached (similar to policy download) and what went to suspense to be attached.

The claim is now in the agency management system and is ready to be serviced.

Claim inquiry can be used at this point to look at anything that has transpired during the current day, if necessary. An example would be that the adjuster had not been assigned when the claim was downloaded, and you need to get that information today.

Any updates to the claim will download each night (or at given intervals during the day, if the carrier and vendor provide this feature). Again, this download information will populate a log for review.

The agency is now in the position to run reports from the agency management system to track losses.

First Notice of Loss (FNOL) Claim Reporting Another very important technology for agencies is real-time FNOL claim reporting, where the agent can submit the claim to the carrier and instantly get back the claim number and adjuster for the claim. What a terrific service to be able to provide the client with this information on the spot! Even where the agent is using real-time FNOL, however, claims download still plays an important role, because it allows for the automatic updating of the status of the claim, including payments made, adjuster notes, and the closure of the file.

Real-Time Loss Runs Requesting loss runs through the agency management system and receiving them back in Real Time from the carrier is another significant improvement for agents, providing clients with immediate service and saving considerable time for the agent.

Agents Play Key Role Whether we are talking about claims download or real-time claim inquiry, FNOL, loss runs, or Activity Notes, agents will play the critical role in making these improved workflows a reality within our industry. Agents should advocate for these improvements with their carriers, and then “walk the walk�

Spring 2014 • The Oregon Agent

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by implementing them within their agencies when they are introduced by particular carriers. High agency usage will be the dominant factor in convincing additional carriers to leave the sidelines and join the game by implementing these new capabilities.

The Future As exciting as these new technologies are, the future will require the industry to take yet another step, and that is to permit the agency’s clients to access their claims information directly from the agency’s website. Claims download and real-time claims inquiry will provide the foundation for this enhanced consumer capability. Consider once again what this would mean to an agency devastated by a disaster, struggling to make or receive phone calls of any kind. What a godsend it would be if anxious clients could go to the agency’s website and learn that their claim has been received and is in processing, and receive the assigned adjuster’s contact information. Organizations like ACT will continue to work with carriers and vendors to make this future a reality.

Most important today, agents, carriers, and vendors should continue to collaborate to harness the exciting technologies that are available to us now to significantly improve the overall customer experience and to make our distribution system more efficient and responsive.

Donna LaGoy is a Client Partner of Applied Systems, Inc. and is Chair of the ACORD Claims Download Working Group. Before taking her current role, Donna was an independent agent, with many years of experience working for a national broker and then owning her own agency. She is dedicated to improving the technologies and workflows available to independent agents and brokers, both internally and with their insurance carriers. She has been deeply involved in ACT, AUGIE, ACORD, and ASCnet. Donna LaGoy can be reached at dlagoy@appliedsystems.com.

She prepared this updated article for the Agents Council for Technology (ACT) which is part of the Independent Insurance Agents & Brokers of America. For more information about ACT, contact Ron Berg, ACT’s incoming Executive Director, who can be reached at ron.berg@iiaba. net. This article reflects the views of the author and should not be construed as an official statement by ACT. Note that Activity Notes today are typically downloaded after the close of the business day. In the future, it is hoped that carriers will deliver time sensitive Activity Notes multiple times a day to their agents’ IVANS mailboxes and agencies will pick up those messages several times a day as well.

1

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The Oregon Agent • Spring 2014

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Spring 2014 • The Oregon Agent

25

4 Keys to Selling More

by Delivering Great Customer Service

O

By John Chapin

ne of the best ways to ensure you make more sales is to make sure you’re taking excellent care of your customers and one of the best ways to do that is to go back to the basics of GREAT customer service. Providing great customer service ensures that your customers feel appreciated and are being taken care of; if you take care of customers, they will take care of you.

4 KEYS TO GREAT CUSTOMER SERVICE

1) The customer is always right.

Yes, this still is, and always has been, the number one key to GREAT customer service. Over the past several years I’ve heard some debate over this fundamental rule. No wonder why customer service is absolutely horrendous in most businesses.

Make no mistake, this key must be in place if you’re going to provide superior customer service. In conjunction with this fundamental rule, keep the following ideas in mind: • The customer is always your top priority.

• Customers come before the phone, paperwork, and rules and procedures.

• Focus on helping the customer, don’t focus on the sale.

• Treat each customer with the same high level of service.

• Get it right/fix it right the first time.

• Good: Treat customers the way you want to be treated, better: treat them the way they want to be treated.

2) Be a great communicator.

It is said that the majority of problems in relationships stem from either a lack of communication or a breakdown in communication. You have to stay in touch with customers and they must be able to stay in touch with you. Here are some ideas to keep in mind in regard to communication: • Have a regular schedule for staying in touch with customers.

• Communicate clearly, be understandable, and don’t use industry jargon or acronyms people aren’t familiar with.

• Answer your work phone as much as possible.

• Answer your cell phone as much as possible even when not at work.

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The Oregon Agent • Spring 2014

• •

•

•

•

Return all calls and e-mails received before the end of the work day, on the same day.

Be extremely detail oriented but not too wordy. Cover the what, why, who, when, where, and on what conditions and be as succinct as possible.

Stay in touch and build long-term relationships: Get people on a mailing list, send cards, visit them occasionally.

Communicate, even when there’s nothing to communicate. In other words, if you’re working on something for someone, give them scheduled, timely updates even if there’s no news, just so they know you’re still working on it.

Ask people when they want to hear from you and in what form they want to hear from you.

3) Do what you say you’ll do and go above and beyond.

• Call when you say you’ll call.

• Show up on time, prepared.

• Follow up with people promptly and with correct information.

• • • •

Look for unique ways to deliver sooner and more than expected or paid for.

Give something for nothing and/or add something extra.

Take an extra step when helping someone.

Be better and be different in a good way.

4) Treat people right.

• Treat each customer as if he/she is a close friend or family member.

• When you first meet someone focus on being likeable, agreeable, getting along, and making a friend.

• Say please, thank you, and you’re welcome; be as nice a person as possible all day every day.

• Make it easy for people to do business with you.

• Take personal responsibility and see things through to the end.

• Before you say goodbye, make sure your customer is completely happy and ask, “Is there anything else I can help you with?”

• Deliver as close to 24/7 personal customer service as you can. After I give someone my cell phone number, I say: “You can call that number at anytime, 24 hours a day. At night I put my phone on silent, so even if you think of something at 3 in the morning, call.”

Keep in mind that when it comes to customer service, you are compared to everyone your customer comes into contact with.

This not only includes other insurance companies, it includes all other companies your customers have to deal with including the phone and cable companies, the power company, credit card companies, grocery and department stores, and anyone else they do business with or communicate with. If you follow the four keys above regarding great customer service, you will always stand out when compared to these other organizations and you will make more sales as a result.

John Chapin is an award winning sales speaker, sales trainer, coach, and co-author of the gold-medal winning “Sales Encyclopedia” a comprehensive how-to guide on selling. “Sales Encyclopedia” is written for sales professionals in all industries at any level of experience. Utilizing more than 21 years of sales experience and as a number one salesperson in three industries, John co-founded Complete Selling Incorporated, a company helping salespeople double their sales and find their motivation.

If you would like access to John’s free white paper on what it takes to be successful in sales along with a monthly newsletter, you can visit John’s website at www.completeselling. com. For permission to reprint, or to reach John, email him at johnchapin@completeselling.com.

Tough, high-hazard property, casualty, transportation and professional and management liability risks require detailed expertise and specific industry experience. At RT Specialty, our brokers draw on the most comprehensive resources worldwide to provide better, faster, smarter insurance solutions. We do whatever it takes to find the solution that meets your clients’ complex coverage needs. When it comes to tough risks, experience the difference a tough broker can make. Tough risks demand tough brokers.

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Spring 2014 • The Oregon Agent

27

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6

C’s of

The

Successful Selling

By John Chapin

S

uccessful selling can be broken down into 6 key areas or character traits which in this article we will refer to as the 6 Cs. If you are new to sales, or are struggling a bit, you’ll find that by focusing on these 6 keys, sales success will quickly follow. If you are already a highly successful salesperson, refocusing on these 6 factors will make you even more successful.

THE 6 KEY CHARACTERISTICS NECESSARY FOR SALES SUCCESS:

1) Commitment To be successful in sales you have to be committed to your customers, your company, and yourself.

When you are 100% committed to your customers, you’ll go above and beyond and focus on delivering more than customers expect. This is a prerequisite to selling at the highest levels. 100% commitment to your company means being completely committed to your “internal” customers: your manager and other salespeople, other people in other departments, and all other personnel within your company. Finally, 100% commitment to yourself means you will do whatever it takes to reach all your personal and professional goals including being the absolute best salesperson you can possibly be.

2) Confidence Confidence means complete belief in your ability to do your job at the highest levels and also belief that you have all the tools necessary to meet all your commitments listed in point number one above. You may need some additional skills or you may need to work on areas such as product knowledge or time management, but with confidence you know you are up to the task and will do what needs to be done to fill in those gaps.

3) Consideration for Others Consideration for others means you are as nice a person as possible in both your personal life and professional life. It means you have empathy for all those you come into contact with regardless of who they are. It also means you are able to put yourself in other peoples’ shoes and you are able to place other people ahead of you when necessary. It means you do what’s right and what’s best for the other person without regard to your own personal loss or gain.

4) Communication To be at the top in sales you must be good at open, honest, direct communication. Good communication means staying in touch, it means you don’t hesitate to communicate when there is a potential issue or problem and you don’t leave any loose ends or questions unanswered. Good communication also means staying in touch in order to build long-term relationships.

Spring 2014 • The Oregon Agent

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5) Competence When you are competent you speak intelligently about your industry and you stay up to date on the latest news and industry trends. You also know as much about your competitions’ product as you know about your own.

Competence means you continue to educate yourself and get better at what you do. If you are new and have some gaps in areas such as product knowledge, competence means you are honest with customers about what you don’t know and that you do whatever you have to do to get correct answers and follow up in a timely fashion.

6) Competitiveness Top salespeople are highly competitive and they will do whatever it takes to win, ethically of course. They are extremely motivated and do not rest on their laurels or on last weeks, last months, or last year’s numbers. They continue to push themselves to grow both personally and professionally.

At the same time, they also realize that both sales and life are 7.5team x 4.625 sports and they do all they can to help, work with, and jgs_umbrella_7.4x4.625v1 cooperate with the people in their lives.

By focusing on and developing, or further developing, the 6 key characteristics above, not only will you have more sales success and make more sales, you’ll also find that your personal life will benefit greatly too.

John Chapin is a speaker, sales trainer, and co-author of the gold-medal winning “Sales Encyclopedia” a comprehensive how-to guide on selling. “Sales Encyclopedia” is written for sales professionals in any industry at any level of experience. Utilizing more than 21 years of sales experience and as a number one salesperson in three industries, John cofounded Complete Selling Incorporated, a company helping salespeople significantly increase their results.

If you would like free access to John’s free white paper on what it takes to be successful in sales along with a monthly newsletter, you can visit John’s website at www. completeselling.com. For permission to reprint, or to reach John, email him at johnchapin@completeselling.com

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