More Tips & “How-To” videos at www.FYIExpress.com
EXPRESS “What You Don’t Know Can’t Help You!” … Eddie K. Emmett, Editor / Publisher
INSURANCE EXPO 2016
It seemed like the world of auto insurance in Georgia was coming to an end almost 30 years ago.
Our continued existence was uncertain … “No Ifs, Ands or Buts” about it!
Every day we were notified of carriers pulling out of the state due to rising loss ratios and the GA DOI Commissioner’s refusal to grant rate relief.
I’ve been around long enough to know that the insurance industry is cyclical … feast and famine. Many, if not most, of today’s insurance agencies have never experienced an Apocalypse like the one descending upon the Georgia Insurance Industry.
Contracts were being terminated. Production restrictions were commonplace.
So what should you do about it?
One carrier stopped taking new business and reduced renewal commission to ZERO and still got the renewals.
Make plans to attend Insurance Expo 2016 on July 27-28 at Holiday Inn Roswell / Atlanta.
Thank goodness for agency-owned premium finance companies and high-commission add-on products.
You’ll learn survival skills not used since the late 1980’s.
It was so bad that we started sending most of the new personal auto applications to Assigned Risk at 10% commission and no binding authority.
You’ll hear directly from the marketing reps on how to best keep your contract when others are being terminated. Continued on page 2
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June 2016
More Tips & “How-To” videos at www.FYIExpress.com EXPO – APOCALYPSE Continued from page 1 You’ll learn how to place business with the “Coverage of Last Resort”; Assigned Risk & Georgia Underwriting Association.
Five Reasons Your Company May Fail at Customer Service
You’ll learn how to be proactive and not have your clients scatter to the wind when, not if, they get the dreaded “Non-Renewal due to Agency no longer represents Company” letter. You’ll learn how to make enough income (legally) in six weeks to carry your agency through the remainder of the year. You’ll learn how to contact other agents’ nonrenewals. You’ll earn 3 hours FREE CE just by attending the FREE Trade Fair and talking with each of the Exhibitors. You’ll earn a voucher for 24 hours FREE P&C CE (including 3 hours Ethics) by attending one of the morning & afternoon “How-To” seminars. Make plans to attend Insurance Expo 2016 on July 27-28 at Holiday Inn Roswell / Atlanta. You’ll notice I changed the dates to Wednesday & Thursday for IE2016. If there is a slow time in the week of an insurance agency, those are the dates! Agents & CSRs register at http://ie16agent.eventbrite.com.
There are a number of reasons that companies fail at customer service. As I read dozens of articles each week, numerous books on the topic throughout the year, as well as conduct some of my own research, there are some very clear reasons. Sometimes it’s not what you are supposed to do, but what you should avoid doing. If you’ve been following my work, some of this may seem like a review, yet we must constantly be reminded of these reasons. So while there are many, here are five common reasons that companies fail at customer service:
Exhibitors & Sponsors register at http://ie16reps.eventbrite.com. Remember, only the attendees will survive!
1. There’s no clear definition of what customer service looks like in the organization. You can’t just say, “Let’s give great customer service.” You have to define what it is, what it looks like and what you want the customer to experience. It has to be crystal clear. I just worked with a company that created a four-word mantra, as I like to call it. A short one sentence phrase that is easily understood and remembered. Put the customer first. But, to just say it is nothing more than lip service. Continued on page 4
FYI Express
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June, 2016
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Five Reasons Continued from page 2
5. They treat employees one way and expect the employees to treat the customers a different way. The behavior of leadership and management toward employees is incongruent with the customer service initiative. The remedy is my Employee Golden Rule, which is to treat employees like you want the customer treated – maybe even better.
2. This company created an entire program around those four words. Every employee is participating in training sessions and the effort will be ongoing, not for a few days or weeks, but hopefully for years to come. 2. Good people are in the wrong jobs. A customer service culture starts with the people. And, there are plenty of good people out there; just some of them aren’t suited for a truly customer-focused organization. It starts with hiring the right personalities to fit the culture. But, what about current employees? Make sure they buy into your customer service definition and are ready and willing to be a part of the initiative.
Shep Hyken is a customer service expert, keynote speaker and New York Times bestselling business author.
3. There is a lack of proper training. Training is not something you do one time. It’s not something you teach during orientation and never bring up again. It’s an ongoing effort. The best companies have ongoing reminders and trainings to keep customer service front of mind. 4. They treat customer service like a department. For a truly customer-focused culture to work, everyone has to be aware of how they impact the customer’s experience. One of my favorite sayings has always been that customer service is not a department. It’s a philosophy to be embraced by every employee, from the CEO to the most recently hired.
FYI Express
Shep Hyken, CSP, CPAE is a customer service expert, hall-of-fame speaker and New York Times and Wall Street Journal bestselling author. He works with organizations to build loyal relationships with their customers and employees. He is also the creator of The Customer Focus, a customer service training program that helps organizations develop a customer service culture and loyalty mindset. For more information contact (314) 692-2200 or www.Hyken.com
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June, 2016
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More Tips & “How-To” videos at www.FYIExpress.com
Extreme Branding: Search and Deliver 65% of viewers watch more than ¾ of a video, which is more than can be said about text-based content. By 2017, video will account for 69% of all consumer Internet traffic. Adding a YouTube video can increase the chance of a front page Google result by 53 times. 65% of viewers visit the businesses website after watching a video. And the best part is that posting videos on YouTube is free … for now. You can read a step-by-step tutorial on how to create & post videos to YouTube at http://www.wikihow.com/Make-a-YouTube-Channel How to create animated videos classroom at https://www.powtoon.com/blog/working-powtoonclassroom-students Join my classroom at www.powtoon.com/edu/joingroup/955E/ Imagine having hundreds of electronic billboards popping up all around your town.
Deliver with Facebook Facebook, on the other hand, allows businesses to deliver their message directly into the personal Facebook of a laser-targeted prospect.
And each one with your logo in blazing color along with your contact information. And the message on each one automatically changes to fit the needs of your laser-targeted prospects.
All you have to do is figure out the specific demographic characteristics of the prospects, create the video and BAM!
All the interested prospect has to do is touch the screen to find out more. Does this sound like some futuristic movie device?
The message is shown on the prospect’s Facebook, usually seen on a mobile device.
No … it’s real and it’s available for every business owner.
If the prospect is not interested at that time, it costs nothing to brand your business into their subconscious.
It’s called Extreme Branding using YouTube and Facebook.
If they are interested, watch at least 10 seconds of the video and / or click through for more information the cost is about a penny per prospect.
Search with Google
You can watch a tutorial on how to do it at Facebook Ad Creation Basics at https://www.facebook.com/business/learn/facebookcreate-ad-basics
In this day and age, folks who have an immediate need search the Internet. And more often than not the answer comes in the form of a YouTube video.
DIY or DFY?
If a picture is worth a thousand words then one minute of video is worth 1.8 million words.
I can personally train you on how to DIY (Do It Yourself) or use my special skills to create and manage your Extreme Branding DFY (Done For You).
Do you have the time and energy to write 1.8 million words?
Make plans to attend the Extreme Branding seminar th at IE2016 from 10:00 a.m. – 12:00 p.m. on July 27 .
That’s the equivalent of 3,600 typical web pages. If you wrote an average of one web page an hour, it would take you 150 days of writing to achieve the impact of one minute of video.
Cost is only $24.00 and includes a voucher for 24 hours FREE Online CE. Register at http://ie16-agent.eventbrite.com.
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More Tips & “How-To” videos at www.FYIExpress.com
3 Steps to Running a Successful Brand Campaign Facebook is one of the best places to build your brand locally. Find and connect with people near your business and help drive awareness for your business. Make your next campaign a success with tools and solutions that are designed to help you raise awareness and reach people on mobile.
Reach people near your business with locally relevant brand ads
Capture the attention of your audience with videos and slideshows
Measure and understand the results of your campaign
DIY or DFY? I can personally train you on how to DIY (Do It Yourself) or use my special skills to create and manage your Extreme Branding DFY (Done For You). Check out my website at www.FYIExpress.com, call or text me at (770) 312-2342 or send an e-mail to eddie@FYIExpress.com for a free consultation.
Discover how you can:
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FYI Express
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UH
June 2016
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AccuAgency provides a secure location for all your agency's customer data. Disaster-proof your data, improve E&O documentation, enhance operational efficiency, and boost your profitability. When you are empowered by AccuAgency, your clients are provided more personal attention. Your staff can devote more time to customer service instead of dealing with unorganized files and documents.
Cloud-based rating and management at your fingertips
If you write auto insurance and represent multiple auto insurance carriers, AccuAuto, our personal auto comparative rater, is affordable, easy-to-use, and fully integrated with our AccuAgency agency management system.
Take AccuAgency and AccuAuto for a test drive
If you would like to try AccuAgency and/or AccuAuto for a risk-free 30-day demo, please call (800) 229-2009 ext. 3. One of our training staff will schedule hands-on training to help you learn and appreciate the many features available.
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Announcing AccuAgency: New Name, New Look, Same Great Company! Assurance Systems, Inc., is best known by its long-standing product name, AccuAuto. Many agents still refer to us as AccuAuto, but an update is long overdue. For years we have offered independent insurance agents more than just an auto rater. Our new name, AccuAgency, encompasses our suite of products, including AccuAuto rater, AccuHome rater, AccuAgency management system, and AgencyThrive web marketing and website services. The name AccuAgency emphasizes our commitment to help independent agents be more efficient, productive, and successful in an increasingly competitive market. As we officially adopt our new name this January, we are also excited that 2016 marks our 30th year in business, still under the same ownership and still committed to supporting the independent agent. Only our name has changed, we are the same great company with the same great service. AccuAgency looks forward to supporting you, the independent agent, for many years to come. We’re excited about our name change and about offering agents a variety of products to Get Your Agency In Check!
A complete web-based system that integrates agency management and document storage all in one easy-to-use service. Loaded with features to help organize and run your agency. Fully integrated with our AccuAuto comparative rating where available.
If you write auto insurance and represent multiple auto insurance carriers, you know how timeconsuming it can be to enter the same quote on each carrier's website. Auto rates are always changing. You may be familiar with the rates and underwriting rules for a company one day, but they may change the next. With AccuAuto, you always have the most current rates and underwriting rules in one easy-to-use, web-based service
A new product in our line-up, and only available in certain areas, AccuHome capitalizes on our many years of experience with comparative rating to add a new tool to your arsenal for writing homeowner policies.
Do you need a website for your insurance agency? Absolutely. If you don't have one (or you do, but it isn't getting any traffic), you are missing out on the fastest growing marketing tool for insurance there is. We believe in creating a simple, clean, professionally designed site for your agency. But this is just the first step. Getting visitors to your site is step two, and we can help with that. We will do the work involved in claiming your agency listings and marketing. Need a phone number changed or have a great new photo of your staff you want added to your site? You can reach us by email and phone for any updates or questions. Support is always included with an AgencyThrive website.
Visit us at http://www2.accuagency.com/fyi.
About Assurance Systems, Inc. Since 1986, Assurance Systems, Inc., has offered a variety of services for independent insurance agencies, in addition to custom solutions and analytical products for insurance carriers.
More Tips & “How-To” videos at www.FYIExpress.com Why You Should Consider Laying off 20% of your Salespeople Every Year by John Chapin Before you bite my finger off based upon the title, just look to where it’s pointing. The biggest issue I see in the workplace by far is a lack of accountability. Similarly, the biggest issue I see in sales forces is letting salespeople stay on the payroll while doing close to zero, or in some cases, while even losing the company business. I’m not talking about non-production over a period of days, weeks, or even months, I’m talking years in many cases. This absolutely needs to be addressed if you are going to be a highly successful sales organization. In one case an insurance agent was on the payroll for seven years with almost no production the entire time because he was a friend of the agency owner. In another case I saw a salesperson do virtually no business for over three years yet stay employed because the owner needed to “save this person and his family.” Non-productive salespeople are killing your business, not only in salaries and related items, but also by dragging down everyone around them. You are also hurting, not helping them, by keeping them around. So if you are one of those who keeps people around much longer than you should, or you’re wondering why motivation and morale are lacking in your office, read on. 1) The bottom 20% are causing 80% of your headaches and problems. They are also the biggest drain on your time, money, and resources while bringing in only about 2% of your business. In insurance agencies I see the bottom 20% continually go back and argue and fight with office staff over taking a second look at less-than-desirable business and bad risks because they have no other business prospects. I see this same 20% call underwriters at insurance companies and waste hours of their time trying to push through miniscule, risky business opportunities, so they can get a measly little sale. These people sap energy, dampen enthusiasm, and kill morale within the office, not to mention your bottom line. These people are your business dragnet and they are hurting all involved including customers, prospects, other employees, vendors, you, and even themselves and their families. 2) By keeping the 20% you are actually hurting, not helping them. It baffles me when someone keeps a person in a job that they obviously are not cut out for, that they perform horribly at, and one in which they do not like, but I see it all the time for a myriad of reasons. I once had a business owner tell me, “I can’t get rid of this person; he is married and has three kids.” The employee he was referring to had recently missed two mandatory sales meetings because he was traveling with his family two States away to check out, and subsequently purchase, a FYI Express
$600 puppy. The next time the owner uses that excuse, he’ll have to add the “new puppy” in after the three kids. Here is a struggling salesperson, who has no qualms about taking on another mouth to feed, and yet the owner feels more responsible for the salesperson’s family than he does. While the owner is under the delusion that he is somehow “saving” this person, in reality he is squashing his future possibilities for success along with his confidence and self-esteem. It’s impossible to be in a job that you don’t do well, and that you aren’t cut out for, and feel good about yourself. The owner is also robbing him of the opportunity to take full responsibility for himself and his family while finding something he is good at and does enjoy. Let’s go back to the example in which a company kept an underperformer around for seven years. This man, who came in confident and assured, was a shell of a man after seven years. He had no self-esteem, no selfworth, and was also experiencing significant marital and other family issues. People in a bad job situation similar to this look for distractions and these distractions are rarely good. Also, how you feel about yourself affects every part of your life, not just work. Keeping this person in this job was far more damaging than a brief blow to the ego by letting him know early on that this wasn’t the right job for him. They finally let him go but even years later; the significant negative effects are still evident. When you keep people around that you shouldn’t, you do everyone a disservice. You hurt the employee by not allowing them to see and deal with reality, you kill morale and attitude within the organization, and you set a bad example. Also, what you put up with you condone, promote, and create more of. This approach also builds resentment and disdain. You look weak as a leader. People start talking behind your, and one another’s backs, and rumors start flying. It creates the worst possible scenario. 3) Getting rid of 20% of your salespeople will give you a bump in motivation and production. A real estate manager had been putting up with very bad behavior out of her top producer for 5 and a half years. When I first suggested letting her go, the office manager told me I was “loony toons” because she comprised 41% of total office sales. When she finally had no other choice but to let her go, she said the next day it was like a weight had been lifted. That day, two of the bottom producers quit, and the other people started working because they realized she meant business. The result was a 53% increase in sales the following year and in the cases where they competed head-to-head with the former agent, they won the business 11 out of 13 times.
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Continued on page 14 June 2016
More Tips & “How-To” videos at www.FYIExpress.com
Laying off 20% Continued from page 12 The point of this story is: first, your 20% aren’t always your lowest performers, and second, in addition to low performers, you also have to deal with your attitude issues. Underperformers and negative people infect everyone. It is literally like letting someone with a contagious, deadly disease openly walk the floor of your business. No one likes to fire people and yet, that isn’t a sufficient reason for not doing it. The goal of laying off your non-producers and attitude problems is to eventually end up with a sales team that is hitting on all eight cylinders and in which you don’t have to fire anyone. You want a professional, accountable sales force that shows up every day, does what needs to be done, and brings in lots of good, clean business. Once you have these people in place, you no longer need to lay people off. You will however continue to improve the work environment and invest in personal and professional development. How do you attract better employees? Become a better company, one in which people are held accountable and negative attitudes are jettisoned. Note: Your number may be something other than 20%. It may be 40%, or only 10%. This is really a question of who is hurting your organization and who is helping?
Getting rid of your chronic underperformers and attitude issues will make you a more credible leader. It will motivate all others to either leave or get to work. Resentment will disappear. You’ll stop wasting the time of all your support people. Morale will increase. And you will see a positive impact, and most likely a substantial one, to the bottom line. John Chapin is a sales and motivational speaker and trainer. For his free newsletter, or if you would like him to speak at your next event, go to: www.completeselling.com John has over 28 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For permission to reprint, e-mail: johnchapin@completeselling.com. John Chapin # 1 Sales Rep w 28+ years’ experience, Author of the 2010 sales book of the year: SALES ENCYCLOPEDIA (Axiom Book Awards) - The largest sales book on the planet (678 pages). 508-243-7359 - 24/7 johnchapin@completeselling.com www.completeselling.com LINKEDIN: once logged in find me under: johnchapin1 FACEBOOK: http://www.facebook.com/johnjchapin TWITTER: http://twitter.com/johnjchapin
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More Tips & “How-To” videos at www.FYIExpress.com Why be a Limited Subagent with no binding authority when you can be a fully licensed Personal Lines Agent?
Only $79.00! Don't Pay until you pass Final Exam
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Page 15 of 21
20 Hour Personal Lines Agent Study Manual Join GIAA and all of your CE + Limited SubAgent Pre-licensing + Personal Lines Agent Pre-Licensing is FREE for all agency staff. www.GeorgiaAgents.com
June 2016
More Tips & “How-To” videos at www.FYIExpress.com
What’s the “lessons learned”?
E&O Tips: Matching coverage – why this is not the best approach Probably more often than not, when new potential customers discuss their insurance program with an agent, they request that the agent essentially “match the coverage that they have”. One of the many fallacies with this approach is the prospect probably firmly believes that the coverage they have is the coverage they need. This could be due to the fact the prospect does not truly understand their insurance program and any potential flaws or gaps.
When an agent is provided a copy of the prior policy, if they agree to match the coverages, they then have a duty to match the coverages and limits. It is probably best to advise the new customer that an exposure analysis will be done and the appropriate coverages suggested. More E&O Tips at http://www.agentseotips.com
Consider this actual E&O claim: The prospect approaches the agency and provides them with a copy of their current policies and states that they want the new agent to match their current coverages and “save them some money”. The new agent proceeds to market the account and is able to match the coverages that appeared on the Dec page of the current policies. Unbeknownst to the agent, within the policies (not listed on the Dec page) was a sub-limit for extra expense coverage. On the policy procured by the new agent, there was thus no extra expense coverage. A fire occurs and when the customer made a claim for the extra expense coverage, it is denied due to the lack of coverage. The customer then looks to the agent and advises him that he had this coverage prior and had asked the agent to provide matching coverage. This type of issue can be problematic for the agency since they had undertaken a duty to secure the same coverage per the request of the customer.
GIAA Membership has More Advantages! FREE Online CE FREE Online Pre-Licensing for Personal Lines Agent & Limited Subagent More info at www.Georgia-Agent.com
This claim clearly shows one of the downsides of agreeing to match coverage for a prospect. Another problem with this approach centers on the belief the prior agent did a professional job in handling the insurance. For example, if the prior agent did not handle the valuation properly, by the new agent matching the limits determined by the prior agent, they are essentially duplicating the mistakes of the prior agent.
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Â
Go to www.EandOQuote.com for more information
More Tips & “How-To� videos at www.FYIExpress.com Proper classification is vital
First, clearly identify the problem. Then move forward in finding the solution The Producer Online IN ACTION is a monthly reminder of how you can turn the knowledge gained from The Producer Online into powerful sales opportunities. The starting point for all underwriting and rating is proper
A beautiful thoroughbred sustained an injury but after intensive rehabilitation she regained her strength and was preparing to race again. Unfortunately, another more serious injury did not turn out as well.
classification. If the classification is wrong, everything is wrong. Any new decision is flawed because a restaurant is not the same as a florist and a window washer is not
See how the courts reacted when Great American refused to pay after the second injury because the horse had been misclassified.
When is a horse just a horse?
the same as a janitor. A household with a teenage driver is not the same as one with only senior citizens. Likewise, a horseracing track is not the same as a farm and a race horse is not the same as a pleasure horse. Click here for two articles. The first explains the reason every agent should review classification decisions and the other provides guidance on properly classifying a habitational risk.
What is the proper classification? Craig Harrison asked Great American to cover his twoyear-old thoroughbred filly as a racehorse. Unfortunately, after a short period of training, the horse was injured. Harrison asked Great American to reclassify the horse as a pleasure horse while she recovered. Great American agreed and reduced the premium accordingly. Harrison neglected to contact Great American when she had completed her rehabilitation
The underwriter decides which classification is most
and returned to racehorse training. She sustained
appropriate based on the application and your
another injury and as a result of that second injury was euthanized. Harrison filed a claim.
explanation of the risk. However, you can always make a
Great American denied the claim because at the time of
Commercial Lines Risk Evaluation System provides
the loss, the horse was used as a racehorse and not a
suggested General Liability and Workers Compensation codes that you could use as a starting point.
pleasure horse. Harrison argued that the horse had never raced and so was a pleasure horse. Click here to see if the courts agreed that the horse was properly classified at the time of the loss.
FYI Express
recommendation. Each narrative in the Producer's
Click here to view the Horse Farm (Racehorses) narrative.
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June 2016
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Producer Online Plus is designed with the powerful technology and technical insurance content you’ve come to expect from Rough Notes. Narrative overviews of operations and exposures for more than 650 classes of business are just a small part of what is included in this product.
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Check it out at www.FYIExpress.com or www.Georgia-Agents.com
More Information about Georgia Insurance Agents Alliance Membership at www.Georgia-Agents.com
EXPRESS “What You Don’t Know Can’t Help You!” … Eddie K. Emmett, Editor / Publisher
Do CSRs have to be licensed? Do CSRs have to be licensed? The answer is “Yes” if: The CSR is a person who sells, solicits, or negotiates insurance. The CSR receives commission on insurance sales. The CSR handles endorsements and reinstatements. The CSR gives quotes for insurance. The CSR completes insurance applications. The CSR handles renewals. The CSR answers coverage questions. So just what can an unlicensed CSR do? Mostly managerial and clerical tasks only indirectly related to the above tasks. I’m not so sure they can even take payments since that is a vital part of insurance sales. Check out O.C.G.A. § 33-23-4 in the “Laws & Regs” link at the bottom right corner of www.GAInsurance.org for a more murky explanation. So what should an unlicensed CSR do? If they are handling only Personal Lines P&C, a Limited Subagent license should do the trick. The sponsor is responsible for their actions, a state exam is not required and they can take the required 20 hour pre-licensing course from the comfort of their desks for only $79.00 at www.Georgia-Agents.com.
The Georgia Department of Insurance encourages the insuring public to report any complaints about insurers, agencies and agents. The first thing checked is whether or not the person in the complaint is properly licensed for that transaction. Here’s the scenario if the CSR is found to be in violation of O.C.G.A. § 33-23-4: Any person who willfully violates this Code section shall be guilty of a misdemeanor and, upon conviction thereof, shall be subject to punishment as provided in Code Section 17-10-3, relating to punishment for misdemeanors. Code Section 17-10-3: By a fine not to exceed $1,000.00 or by confinement in the county or other jail, county correctional institution, or such other places as counties may provide for maintenance of county inmates, for a total term not to exceed 12 months, or both. That applies to the CSR, the agency owner, and the insurance companies who paid commissions to unlicensed entities. I wonder if they assign adjoining jail cells.
www.Georgia-Agents.com
It gets even better than that! CSRs may study the 20 hour Limited Subagent course, take an exam and download a Certificate of Achievement for free. It serves as great refresher training on Personal Lines such as auto, home and renter’s insurance. But if the CSR handles lines other than Personal Lines, a full blown agent’s license is required.
GIAA Members can earn 24 hours Online CE and 20 hours Limited SubAgent Prelicensing for all employees for only $99.00 per year!