SIAoF's Agents First! - August 2014 by FYI Express

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AGENTS FIRST! News & Views of Specialty Insurance Agents of Florida

Is Your Agency Worth Anything? By Al Diamond of Agency Consulting Group, Inc.

In This Edition IS YOUR AGENCY WORTH ANYTHING?.................................... 1 KICK START 2015 INFO .................. 2 HOW TO SIGNIFICANTLY INCREASE BUSINESS .................................... 11 INVITE YOUR CUSTOMERS TO REVIEW YOU ................................ 13 SIAOF MEMBERSHIP BENEFITS .... 15 NON-STANDARD AUTO REPORT.... 16

In bad times and in good times, most owners of independent agencies expect and desire to one day perpetuate or sell their agencies. In many cases, the agency represents a very large, if not the largest, component of the owners’ asset base and an important part of their retirement benefits. You’ve heard us (and many others) say that “MULTIPLES” were as inaccurate method of determining agency value as it would be to try to sell your home for a multiple of your investment in it. But over the years many agents continue to try to establish a ‘rule of thumb’ multiple to try to establish the value of their agency in a transfer to another owner. Most times, they are either cheating themselves or the potential new owner of the agency. Once you have established your agency’s value it is easy to convert that number into a multiple (of commissions, of revenues, of EBITDA, or of anything else you care to use). But it is never valid in the other direction, attempting to establish the value of one agency based on a multiple built on other agencies values. Recently, however, actions of many courts regarding the impact and enforceability of NonCompetition Agreements and NonPiracy Agreements may make any concept of agency value a relatively moot point.

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Page 1

The Basis of Value The basis of value of an agency (or of any business) is actually relatively simple – TO WHAT DEGREE CAN THE BUYER BENEFIT FROM THE ACQUISITION OF THE AGENCY? The “benefit” that a buyer achieves is the financial benefit over time that he expects to achieve from the acquisition. That financial benefit is the amount of actual (after tax) earnings the buyer can expect to make as the result of the acquisition of the seller’s agency. So every buyer tries to calculate the economic benefit of an acquisition. Many buyers, internal and external, use the services of Agency Consulting Group, Inc. to calculate these earnings potential through our Agency Valuation service. We look at every line of revenue and every line of expense to determine how much more money the buyer can expect to make as the result of the acquisition. Because we do so many valuations and mergers and acquisitions, our estimates of value have proven to be quite accurate. The buyer has to determine how long he is willing to give up those additional earnings to pay the seller. Whether the seller holds a note or the buyer borrows the money and repays a bank, the buyer’s cost is based on the additional value to the buyer over the period during which he is willing to allay that benefit to pay the seller. Continued on page 4 August 2014

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Is Your Agency Worth Anything? Whether the Non-Competition and Non-Piracy clauses are specific or are implied in the hiring process (stated in employee manuals), the expectation of agency ownership of client relationships is the primary basis of value of an insurance agency.

Continued from page 1 If a buyer finds that he could generate $200,000 each year in additional after-tax earnings from the purchase and is willing to give up those additional earnings for four years, he could afford to pay the seller $800,000 for the transfer of the property. After the purchase period, the buyer will enjoy the economic benefit of the acquisition.

Would you buy and agency from an owner when you know that every producer and/or employee could leave and take any clients with them to their new employer?

The Changing Face of Agency Value

Using A Non-Competition Agreement Against An Agency

The basis of both the value and the cost of an agency transfer is difficult to calculate but easy to understand considering the explanation above. However, the key ingredient is the maintenance of the book of business that is being purchased.

Every year we see more courts ignoring the ownership of clients by agencies in favor of trying to establish a “rule of thumb value” to these noncompetition agreements in support of compensation for the theft of accounts. Unfortunately, the agents are often their own worst enemy when they establish a value to the loss of business within the Agreements.

How many acquisitions would take place if there were no expectation of the retention of the books of business? This is why non-standard agencies whose business churns very often have a lower value basis than standard insurance agencies. The only non-standard agencies that maintain a high value are those who have marketing and advertising methods in place to generate continuous strong growth even considering the relatively low retention expectations.

When a Non-Competition Agreement ties a specific number or multiple to the value of lost accounts, you have established the MAXIMUM penalty for the loss of the accounts. Courts can and does force negotiations lowering that maximum based on any number of subjective issues that occur in every such dispute.

One of the key indicators of agency client retention is Employment Agreements and Producer Agreements in which the employees and producers acknowledge that the books of business for which they are responsible belong to the agency. The agency maintains the carrier contracts and relationships, has the systems and ‘brick and mortar’ locations and, most importantly, the service and administrative staff to support the client after the sale. SIAoF’s Agents First!

The Real Value of Damages In actuality, damages in the event of the theft of accounts from an agency should be determined by several categories of loss: Continued on page 6 Page 4

August 2014

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Is Your Agency Worth Anything? Continued from page 4 1. How much agency profit would be lost for the expected remaining lifetime of each lost policy or client? 2. How would the loss of the clients taken affect the value of the agency should you need or desire to sell the agency? 3. Most agents acknowledge that much of their growth comes from referrals. How many referrals will you lose by not having that client base and what is their future value if a book of business (your clients) is taken from the agency? Lifetime Studies A lifetime study determines the average life of an agency’s policies and/or clients. Before the change to 15 year amortization of goodwill by the IRS, values of agencies included lifetime studies in order to justify amortization of goodwill as a legitimate expense to an agency based on the average lifetime of policies within that specific agency. This was a MUCH better and more justifiable (to the IRS) basis of amortization than any industry averages. While this is no longer necessary in agency valuations (since we are all forced to amortize our acquired books of business over 15 years), it is still a valuable thing to know in support of the value of your book of business if some of it is “stolen” from the agency by a former employee. Two simple calculations can be made to ascertain average lifetime of clients. Both are based on the original effective date of the policy (the Original effective date, not the date of any change of carrier, cancel/rewrite, or reinstatements). An Active Lifetime is defined by the average lifetime of all policies currently active in the agency. An Inactive Lifetime is defined by the average life of policies that have left the agency (for any reason). SIAoF’s Agents First! Page 6

If a policy leaves and then returns, he moves back from the Inactive to the Active Lifetime lists. Inactive Policy Lifetimes It is important in many ways for an agency to know the average lifetime of its dead accounts. Doing this study has led to many agencies implementing Recovery Marketing Programs (call us for more information – 800779-2430) that re-markets to dead accounts over an extended period to win them back. Regaining lost clients is always easier and more efficient than soliciting new clients. You will never know more about potential new prospects than you already know about clients who you have insured for many years. Their data in your files does not “stale” for several years and recovering these valuable assets can generate many thousands of dollars of income. It is not unusual for Inactive Policy Lifetimes to be relatively low. We already know that the first few years are the most tenuous for clients with an agency. If you don’t establish strong relationships, the same motivators that cause the client to move to you can be used to move the client away from you. That is why it is so important to use the first few years to build strong relationships between the agency and the client on a number of levels (not just through the producer). Active Policy Lifetime While the lifetime of your dead accounts can be verified as a stable average for your agency, the lifetime of your active accounts is, hopefully, a fluid and growing number. Whatever the average life of Inactive Accounts, it is not uncommon for Active Lifetimes to double or triple that number and continue to grow. Once a client has formed a strong relationship with the agency (in reality or perceptually) only a major change in perception would cause the client to leave you. Continued on page 8 August 2014

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Is Your Agency Worth Anything?

At this point the relationship between your agency and the clients that the producer has solicited is damaged beyond repair. His claim is that it is the clients’ right to choose their agent. It is your contention that the right of the client is not abridged and that the only prohibition is that of your former employee to assume those clients for a reasonable enough period of time adhering to an agreement or enough time that the confidential information to which he had access is no longer current enough for him to replicate your file without active solicitation of the client.

Continued from page 7 And, if you are doing your job properly communicating with your clients, you would know that there was something wrong and would do something to respond and solidify the relationship. Here is where the theft of accounts most disturbs a client/agency relationship. A producer leaves. The day he leaves (or within some period of time thereafter) you get Broker of Record letters from some of your clients naming another agency as the BOR. It happens to be the agency that hired your former employee. Another possibility is that the producer just starts “picking” clients with whom he has been familiar and solicits them away from you without even the benefit of a BOR.

A COMPARATIVE ANALOGY

Either way, you contact your attorney and file for a restraining order claiming that the producer is “stealing” accounts for which he had confidential information gathered while employed by you. He claims that the clients have every right to be insured wherever they want. You agree but point out that the producer had access to information confidential to your agency for which you paid his compensation in expectation that he would honor that confidentiality. Even stronger is a contract in any form in which the employee agreed that the clients belonged to the agency.

SIAoF’s Agents First!

Imagine a farmer hiring a farmhand to tend his herd of dairy cows. The cowhand tends the existing herd and enhances it as new calves are born. The herd responds to the cowhand even though it (including the calves) “belongs” to the farmer who hired the farmhand. Page 8

Continued on page 9 August 2014

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A third level of damages involves the value of the cattle once their productivity ends to the farmer. At the end of their productive lifetimes, the farmer would have sold the cattle and gained a further terminal profit from them.

Continued from page 8 If the farmhand decides to leave and takes part or all of the herd claiming that there were no fences in the pasture and the cattle could have wandered off to any land they desired to graze, isn’t he still “stealing” the cattle from the farmer?

A final level of damages involves the diminished value of the farm, itself, due to the reduction of the herd due to the theft. Should the farmer need to sell his farm, he will no longer be able to get the same price as he would have received had the herd remained intact. We understand that the farmer is not obligated to sell his farm. The farm’s value has, nonetheless, declined as the result of the theft of a part of his herd. The other level of damages addresses the lost income potential of the farmer assuming his continued operation. This measure of damages considers the immediate reduction in value as the result of the action of the former employee.

Yes, they could certainly wander off on their own and it’s the farmer’s responsibility to replace the cowhand and keep the herd together. He can’t blame his former employee if the farmer fails to replace him and lets the cattle wander off as they grazed. But the case in point isn’t the accidental wandering of the cattle. It is the purposeful theft of the herd by the former employee. The key isn’t the wrongdoing. A court can decide whether a theft took place or not. The key to damages is for how much the cowhand is responsible as the result of his wrongdoing.

A Better Alternative An agency must make clear to every employee that the agency’s value is resident in its client base and that the employee is being hired to enhance or maintain that book of business on behalf of the agency.

If he could simply return the herd, the extent of damages is limited. However, if he takes the herd in such a way that they cannot be returned (i.e. he takes them directly to slaughter), then the extent of damages is much different.

Whether that statement is made in a letter signed and acknowledged by the employee at the outset of his employment, is a part of the employee manual that every employee receives (and signs for) when employed, or is resident in an Employment Agreement or Producer Agreement within the Non-Competition or Non-Piracy section of the agreement, it is a defined agreement between the employee and the employer.

The former employee shouldn’t be able to rationalize a limited damage estimate by claiming that most of the cows that perished on the farm died during their first year of life. That shouldn’t matter since all of the cattle taken were alive when stolen. Yes, a few could have perished in their first year, but we can determine the percentage normally lost each year through the farm’s retention records (and adjust for those expected losses).

Do NOT state the value of any clients lost through wrongdoing. Stating the value of clients limits your loss and will be used by courts who seek the simplest solution to the damage problem, not the total damages done to your agency.

The farm’s records will determine the current average and maximum lifetime of cattle on the farm. The future value of the stolen cattle BEGINS with their productivity (profitability to the farmer) for their remaining expected lifetime. This implies that any living calf or cow taken from the farm would have lived AT LEAST as long as the average lifetime of the cattle on the farm (with an adjustment for a percentage expected to perish early using the average lifetime of deceased cattle as their lifetime productivity expectation). All cattle already over the average lifetime would be projected to live to the current maximum lifetime (the average lifetime of the 10% oldest cattle on the farm).

Instead, you should indicate the levels of damages that will be used in the event of a wrong-doing by the employee. In this way the employee has acknowledged both the fact that taking accounts is wrong AND how damages will be calculated in the event of a wrongdoing. Call us to review your current agreements within our GPP Analysis (Growth, Productivity and Profitability) of your agency (800-779-2430). This is an automatic part of our analysis as is the analysis of the compensation models for both your production and non-production staff and management.

Once the damage is estimated based on the lifetime profit expectation of the stolen cattle, the second level of damage must come from the expected offspring of the cattle taken. The farmer expects a certain percentage of his cows to produce offspring that will also create profit streams for the farm that the theft and destruction will eliminate. SIAoF’s Agents First!

Continued on page 10

Page 9

August 2014

More Information about SIAoF Membership at www.SIAoF.com Is Your Agency Worth Anything? Continued from page 9 We cannot control the human behavior traits of most courts who wish to side with the individual over an organization. However, our courts are still grounded in the concept of legally binding contracts. If you prepare your agency appropriately you will never need to enforce your agreements because they will be so clear that your employees will not be tempted to steal your business if they move on to another job. But if they do decide to defy your agreements by taking your only source of value, your clients, the courts will have less latitude to decide in their favor if the agreements are extremely defined in the ownership issues and the ways of adjudicating loss if a wrongdoing is done.

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Agency Consulting Group, Inc. is a consulting practice, established in 1980 and dedicated to the needs of independent agents throughout the U.S. It is headed by Al Diamond, a 32+ year veteran of the insurance industry with agency, stock company and direct writing experience. With its own attorney and Enrolled Agent (tax specialist licensed to practice before the IRS) in addition to agency management specialists, Agency Consulting Group, Inc. is staffed to assist agencies through the maze of business issues toward growth and profit. The firm operates nationally on behalf of independent insurance agents.

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August 2014

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How to Significantly Increase Business by John Chapin You can absolutely double, triple, or even quadruple your business if you’re committed but make no mistake, it’s going to take a gut-wrenching, monumental effort. So if you’ve got the stomach for it, put on your helmet, fasten your seatbelt, and follow this plan. Three Steps to a Massive Business Increase Step 1: Start with what built this country many years ago. In other words, start with a lot of blood, sweat, and tears. No whining, no complaining, no entitlement, just hard work, self-discipline, and a great attitude. Hard work is the reason why the average legal immigrant to this country is four times as likely to become a millionaire as someone born and raised in the country. The most successful people on the planet are still the hardest workers. Michael Phelps, eight hours a day in the pool, Oprah Winfrey, Bill Gates. All very successful and still extremely hard workers. In your own business, you’ve got to work especially hard and put in a ton of hours. You have to push yourself harder than anyone else. You have to be a self-starter. There are no magic bullets or shortcuts. Regarding self-discipline, you have to show up and do what needs to be done whether you feel like it or not, because there will be days when you don’t feel like it. Failure comes from what you fail to do. You have to put your plan together and be committed to work the plan everyday regardless of how your day may be going. By the way, will power does work. If you’re on a diet, you’re either going to eat that donut or you’re not based upon a simple decision that the economy, your boss, or your spouse have nothing to do with. Next, you have to have the right attitude. You’ve got to have passion. You need a dogged determination and a drive to succeed. You have to be extremely persistent. You need a blue collar mentality and you’ve got to be hungry. You have to have a thick skin, you can’t take things personally, and you have to keep getting up no matter how many times you get knocked down. SIAoF’s Agents First!

Along with passion, you need conviction. You can’t fold like a lawn chair or a cheap suitcase when someone comes up with an objection or brings up the competition. You’ve got to belief in yourself, your product, and your service and know that people need you and are better off because of you. Next, you have to be committed. Your attitude must be “all-in”, “failure is not an option”, “I’ll make it or die trying.” Finally, you have to let go of excuses and stay away from negatives and negative people. Where you end up in the future will come down to two things: what you put in your head and who you hang out with. Step 2: Put together a grand plan. You can make your business linear. How many new customers and business from current customers do you need? What actions do you need to take? How many prospects do you need? How many phone calls do you need to make, how many doors do you need to knock on to significantly grow your business? You need annual, monthly, and weekly goals, all broken down to daily activity. Think 80/20 Rule. The only activities that pay you are prospecting, presenting, closing, and account development. Delegate everything else. The fastest way to build business is by calling on people in-person or on the phone. Not e-mail. You’ve got to get out and network, meet people, knock on doors, and ring phones. Your biggest problem is obscurity, no one knows who you are because you are not talking to enough people, so you don’t have enough prospects, and thus you don’t have enough business. Do everything necessary to get a ton of qualified prospects including cold calling. Business and sales is a contact sport, it’s a numbers game. The more people you talk to, the more business you will do, even a blind pig finds corn. When you talk to people you have to get their attention. In addition to your competitors, you’re competing with e-mail, voicemail, the doctor’s appointment, school. Everything. What are you doing to be heard through the noise? Why you? What’s your value statement? What’s your differentiator? Get creative and have a value statement that isn’t based on price and doesn’t sound like your competitor.

Page 11

Continued on page 12 August 2014

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Tips from the Redneck Book of Manners

How to Significantly Increase Business

1. Never take a beer to a job interview.

Continued from page 11

2. Always identify people in your yard before shooting at them. 3. It's considered poor taste to take a cooler to church. 4. If you have to vacuum the bed, it is time to change the sheets. 5. Even if you're certain that you are included in the will, it is still considered tacky to drive a U-Haul to the funeral home. DINING OUT 1. If drinking directly from the bottle, always hold it with your fingers covering the label. 2. Avoid throwing bones and food scraps on the floor as the restaurant may not have dogs. ENTERTAINING IN YOUR HOME 1. A centerpiece for the table should never be anything prepared by a taxidermist.

DATING (OUTSIDE THE FAMILY) 1. Always offer to bait your date's hook, especially on the first date. 2. Be aggressive. Let her know you're interested: 'I've been wanting to go out with you since I read that stuff on the bathroom wall two years ago.' 3. Establish with her parents what time she is expected back. Some will say 10:00 PM; others might say 'Monday.' If the latter is the answer, it is the man's responsibility to get her to school on time. 4. Always have a positive comment about your date's appearance, such as, 'Y’all sure don't sweat much for a fat gal.' DRIVING ETIQUETTE

Also, there is no new relationship selling, it is and always has been all about personal relationships. Always work on building and advancing relationships. You want prospects to become customers and customers to become close friends. Stay in touch, communicate often, do more than expected, go above and beyond, and always do what’s right for them. Step 3: Realize you’re at war but it’s a war you can win. It’s a tough world out there. There are stock market crashes, economic downturns, Boston Marathon Bombings, natural disasters, then you’ve got the personal stuff: health issues, flat tires, family and relationships. There’s always going to be something or someone getting in the way or trying to stop you, the competition and people will be against you. But if your motivation is strong enough and you have powerful reasons why you absolutely must succeed, then you’ll continue to show up every day and swing away, and eventually the law of averages will end up in your favor. Remember, at the end of the day your life and your business are up to you. 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 26 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. 508-243-7359 - 24/7 johnchapin@completeselling.com LINKEDIN: once logged in find me under: johnchapin1 FACEBOOK: http://www.facebook.com/johnjchapin TWITTER: http://twitter.com/johnjchapin

1. Dim your headlights for approaching vehicles, even if the gun is loaded, and the deer is in sight. 2. When approaching a four-way stop, the vehicle with the largest tires always has the right of way. 3. When sending your wife/girlfriend down the road with a gas can, it is impolite to ask her to bring back beer.

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August 2014

More Information about SIAoF Membership at www.SIAoF.com I’m visualizing the wedding invitation with a footnote that reads: We love this hotel, but you might not. So, if you don’t, please, please, please don’t post a negative review on the Internet. The hotel will charge us $500 if you do. Thanks in advance, and we’ll see you at the wedding!

Invite Your Customers to Review You

Contrast this with the hotel I stayed at that has a sign at the front desk that asks you to leave a review on Yelp. That tells me that they have confidence, which gives me confidence. If there is a problem, the staff will probably take care of it. The hotel staff is asking to be reviewed, so they are going to do their best to get a good one. Customers used to talk to their friends over the phone or at parties about their experiences. Now they post on social media networks like Facebook, Twitter, Yelp and others. They have a microphone and can be heard by many. Certain businesses are more likely to be reviewed online, versus others whose reviews may come in the form of discussions with colleagues and friends. Either way, accept that you may be reviewed by the customer. But, even if you’re not going to be reviewed, perform as if you are. Treat every situation, opportunity and interaction as an opportunity to show how good you are. (Copyright ©MMXIV, Shep Hyken)

Shep Hyken is a customer service expert, professional speaker and New York Times bestselling business author. For information contact (314)692-2200 or www.hyken.com. For information on The Customer Focus™ customer service training programs go to http://www.thecustomerfocus.com. Follow on Twitter: @Hyken

Get mobile in two minutes! Recently I read an article about a hotel that had a unique social media clause written into their special event contracts. This hotel was built in the 1830’s and appears to specialize in weddings. The property looks to be quite beautiful; however their social media policy is not. It appears that the hotel is concerned about any negative comments that are posted via social media or any other Internet site. An article from NYpost.com quotes the following online policy from the hotel: “Please know that despite the fact that wedding couples love Hudson and our inn, your friends and families may not,” reads an online policy. “If you have booked the inn for a wedding or other type of event . . . and given us a deposit of any kind . . . there will be a $500 fine that will be deducted from your deposit for every negative review . . . placed on any internet site by anyone in your party.” This tells me the hotel fears for their reputation, and fear can cause a loss of customer confidence. Are they capable of delivering a great experience? And, why would anyone want to sign a contract with a hotel, or any business for that matter, that would require a guest to sign away their rights, and their guests’ rights, to their freedom of speech?

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August 2014

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The vehicle took down three trees and two light poles, and dug up the turf in a Minneapolis park. The Lamborghini also paid a steep price. A front wheel was torn off and panels crumpled. Lawless Lamborghini ride means pike to prison By James Quiggle Stashed in David Juntunen’s storage facility for the winter, the sterling silver Lamborghini Gallardo was a dream machine, a $200,000 eye-popper. The feisty road stallion could roar up to nearly 200 mph, powered by an adrenal 520-horsepower, V-10 engine. A client had stored the machine with Juntunen’s Minneapolis-based firm Top Gear Autoworks, which repairs and services exotic European vehicles. Juntunen called himself “Superdave” had to give the Lamborghini a super joyride late one night. Small wonder. An online reviewer wrote: “This thing is so quick, so fast, so loud, and sounds so angry at fullthrottle that it may scare kids, old people, pets, and livestock. But that's just part of its charm.” Juntunen should’ve drank warm milk and gone to bed early. His adrenal road rampage smashed up the car and earned him a criminal insurance-fraud conviction. He squeezed into the bucket seat. He’d enlisted employee Pamela Jean Dupont to join him for the avenue antics late one night. Juntunen had no business driving the car. He was allowed to drive only vehicles with an ignition interlock. He’d been charged with 30 driving-related offenses, including 13 counts of driving after his license was revoked and 10 counts of driving while impaired. His contract with the car’s owner, Minneapolis lawyer Jud Champlin, also was insistent: Juntunen could only pick up and drop off the car by towing it on a trailer. Champlin thus had suspended his collision insurance while storing the cherished Lamborghini for the winter. Juntunen sped down the roadway. He was unfazed by the contractual irritant or that he’d breezily left Champlin unprotected in case of a crash. Which, of course, the fates quickly dealt Juntunen. A police officer was making a DUI arrest and saw the Lamborghini zoom by around 1:45 a.m. A tow-truck driver onsite to remove the DUI offender’s car recorded a partial license-plate number. The Lamborghini was more machine than Juntunen could handle. He lost control about 15 minutes later. It bolted from the road like a feisty colt from a corral. SIAoF’s Agents First!

Juntunen crept away under cover of night. He had one of his tow-truck drivers quietly haul the woebegone car to his main facility, and didn’t report the incident to police. He filed a claim the next day with his commercial insurer Travelers Insurance. The battered Lamborghini needed nearly $82,500 in repairs, a claims adjuster determined. “This thing is so quick, so fast, so loud, and sounds so angry at full-throttle that it may scare kids, old people, pets, and livestock. But that's just part of its charm. “Travelers began investigating and denied the claim. Juntunen’s excuses collided more than the desolate Lamborghini had. First he said was driving the car from the storage barn to his main facility. Then he shifted gears. His passenger Dupont was the driver and was moving the car to another facility, he lied. She swerved to avoid hitting an animal and careened out of control, he said. With some discipline, Juntunen and Dupont stuck to that lie when further interviewed separately. Still, they bailed on an appointment to give Travelers formal statements under oath. More evidence peeled away their storyline. The crash also happened around 11 p.m., they lied. But the police officer and tow-truck driver who initially spotted the fast-moving car came back to haunt them at trial. They’d seen Juntunen behind the wheel, and around 1:45 a.m. Juntunen even privately admitted to Champlin that the joyride was unauthorized. The lies were in such shambles after the nine-month investigation that Juntunen pleaded guilty. He received six months in the county workhouse and three years of probation. He also must find the money to repay Champlin and Travelers $192,000 total. The speed-soaked excursion doubly victimized Champlin: His car was ruined and his own insurer denied a repair claim because the drive was unauthorized. The park also sustained $10,000 in damage. Juntunen says he’s trying to turn his life around and stay sober. Champlin is skeptical. “He's wasted so much time for so many people,” Champlin said. “I don't want him to be simply able to talk his way out of this.”

Page 14

August 2014

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PERSONABLE INSURANCE

non-standard auto independent agency TRENDS REPORT

AUGUST 2014

INTRODUCTION Welcome to the August 2014 Personable Insurance Non-Standard Auto Independent Agency Trends Report. The purpose of this report is to provide an alternate perspective of the auto insurance marketplace and current industry trends through the lens of an independent agency, incorporating the knowledge that certain trends can have many different effects on independent agencies than they would on the auto insurance industry as a whole. This report was compiled from a collection of articles and data points produced by reputable organizations with proven records and research credibility (see References on page 15). Our intent is to provide you with the most current data available; all referenced articles or reports were published in January 2012 or later, although those articles/reports may include or reference historical data that predates January 2012. Furthermore, all data referenced within this report is (at the highest level) based on the Property & Casualty insurance industry. When the opportunity was available, we restricted our article selection to those specific to the auto insurance industry and independent agencies, in order to provide the most accurate reflection of our current industry trends. When this information was not available or reliable in nature, we instead referenced a relevant article that spoke to the P&C insurance industry as a whole. That said, readers should keep in mind that there are some varying factors across the studies, articles, and corresponding data sets we have summarized in our report that could possibly affect and minimize the proper application to our specific market segment (non-standard auto insurance and independent agencies) and proposed conclusions.

Varying factors may include, but are not limited to: • Demographic differences across study participant pools, including shifts in average age of insureds, and gender roles • Physical location of where the study took place/data was collected, leading to different limitations based on state regulatory laws, for example • Sample set size, length of study, etc. • State of the economy during data collection Although these small variances create a slight limitation of the following report, we stand firm in our belief that the key takeaway points are solid in validity and absolutely relevant to non-standard auto independent agencies. Lastly, while we have carefully examined and analyzed the following industry information in order to produce this report, we are leaving it up to you, the reader, to draw your own conclusions and decide which changes to make to your business. We have made suggestions as to the possible changes you may choose to make, but you are the ultimate responsible party who should digest this information and, at your discretion, identify and implement actionable items that will be valuable to your agency.

The Importance of Industry Trends As an independent business owner, it is absolutely vital to be proactive in adjusting your company’s strategies to complement current industry trends. By staying abreast of current industry trends, you can maximize potential profits and stay ahead of your competition. In the auto insurance industry, marketplace trends arise from a complex combination of current economic conditions and consumer buying behaviors. Both of these factors can (and do) fluctuate over time, but it is important to take a step back from the hard data every so often to observe the overall trends that are developing and the effects they may have on how you run your business. Throughout this report, we will discuss some of the most important and prevalent auto insurance industry trends that have been noted recently by respected industry professionals and associations. Our goal is to: clearly describe the trend we are seeing occur in the marketplace, provide background on possible (and logical) causes of the trend, discuss possible or probable effects this trend may be having on independent agencies specifically, and finally, propose suggested solutions and/or business strategies that may work to offset any negative effects this trend may be having on your agency. Data collected by the National Highway Traffic Safety Administration supports the idea that recent changes in customer demographics and their driving habits, in addition to the state of current industry and economical conditions, are causing the available pool of potential auto insurance premium dollars (aka: the “total opportunity”) to shrink. This is additionally validated by research completed by Nomura Equity Research, which found that dollar for dollar, auto insurance advertising spending in 2013 yielded more profit than payments to personal lines independent agencies did, based on data from 10 large personal auto insurers.1

If our “total opportunity” is shrinking due to factors outside of our control, how can independent agencies adapt their business strategies in order to remain profitable? This question drove us to investigate current industry trends, and their causes and effects, to find answers and possible solutions for your agency.

Today’s Auto Insurance Customer The auto insurance industry is seeing a major shift in customer base demographics; most notably, in the average age of the largest customer groups and their driving characteristics. We have investigated the causes and effects of this customer shift and have a few ideas about how you can maximize revenue during a time with limited organic growth opportunity. 1

“Spending on Ads Still Beats Spending on Auto Insurance Agents: Nomura - Carrier Management.” Carrier Management. Carrier Management, 21 July 2014. Web. 24 July 2014. <http://www.carriermanagement.com/ news/2014/07/21/126448.htm>.

Why is this trend occurring? The most obvious shift we are seeing is in the age of our drivers; we now have a high number of young “Millennials” (drivers born after 1980) and older “Baby Boomers” (those born before 1964)2 on the roads; these will be two important groups of customers to monitor over the next decade for independent agents.

U.S. Population by Age and Sex: 2012 and 2050 Highlighting the Baby Boom Population M = millions

Age 100+ 90 80 70 60 50 40 30 20 10 0 Age 100+ 90 80 70 60 50 40 30 20 10 0

Male

2012

Female

Baby Boom Population

Male

2050

Female

Baby Boom Population

Source: U.S. Census Bureau, 2012 Population Estimates and 2012 National Projections

Fig. 2. White, Joseph B. “Older Americans’ Car-Crash Fatality Rate Has Declined, Study Says.” The Wall Street Journal. Dow Jones & Company, 20 Feb. 2014. Web. 12 July 2014

Norén, Laura. “Who Is the Millennial Generation? | Pew Research.” Graphic Sociology RSS. The Society Pages, 4 Oct. 2011. Web. 1 April 2014. <http://thesocietypages.org/graphicsociology/2011/10/04/who-is-the-millennialgeneration-pew-research>.

Millennials often live in the cities where they work instead of in surrounding suburbs.3 They also tend to use more alternatives to driving, such as public transportation and ride-sharing services like Uber, Lyft, Sidecar, etc. These factors, in addition to other existing conditions, have effectively lowered the amount of miles driven by this age group.4 To illustrate this trend, consider these key data points: • Between 2001 and 2009, the U.S. population grew by about 10%, but the total distance Americans drove fell by about 1%.5 • Driving miles fell most sharply within the Millennial age group; vehicle miles driven shrunk by approximately 25% from 2001 to 2009.6 • “Young adults aged 18-34 purchased 30% fewer cars in 2011 than they did in 2007.”7 • “The portion of Americans aged 16 to 24 who have driver’s licenses fell to 67% in 2011, its lowest level in roughly a half-century, according to federal statistics cited in a report last year by the U.S. PIRG Educational Fund and the Frontier Group, two environmentally-oriented organizations.”8

While Millennials are viewed by some in the insurance world as an inhibitor of growth to the auto insurance industry because they are driving less, luckily we are seeing another opportunity arise in the increase of Baby Boomer customers. With the oldest Boomers reaching 68 years of age, there are more experienced drivers on the road than ever before, and that number will continue to grow for at least the next two decades.9 To quantify this for you, research done by AAA suggests that by 2025, almost 25% of all drivers on the road will be 65 or older.10 Furthermore, recent industry data has been consistently positive and it appears that older drivers are modifying their driving behavior based on their existing medical conditions and driving ability in order to stay safe on the 3

Sissel, Stephen, and Keith Gates. “2013 Status of the Nation’s Highways, Bridges, and Transit: Conditions and Performance.” U.S. Department of Transportation - Federal Highway Administration and Federal Transit Administration, 31 Jan. 2014. Web. 1 May 2014. 4 Ball, Jeffrey. “The Number of Young People Who Drive Is Plummeting in Amazing Ways.” New Republic. New Republic, 12 Mar. 2014. Web. 20 July 2014. <http://www.newrepublic.com/article/116993/millennials-are-abandoning-carsbikes-carshare-will-it-stick>. 5 Ball, Jeffrey. “The Number of Young People Who Drive Is Plummeting in Amazing Ways.” 6 Sissel, FHWA, Stephen, and Keith Gates, FTA. “2013 Status of the Nation’s Highways, Bridges, and Transit: Conditions and Performance.” <http://www.fhwa.dot.gov/policy/2013cpr/pdfs/littlebook.pdf> 7 Wagner, Kurt. “Carsharing Catches on with Millennials.” Fortune Magazine. Fortune.com, 12 Mar. 2013. Web. 1 June 2014. <http://fortune.com/2013/03/12/carsharing-catches-on-with-millennials>.. 8 Ball, Jeffrey. “The Number of Young People Who Drive is Plummeting in Amazing Ways.” 9 Sissel, Stephen, and Keith Gates. “2013 Status of the Nation’s Highways, Bridges, and Transit: Conditions and Performance.” 10 “Senior Drivers.” AAA Foundation for Traffic Safety. AAA Foundation for Traffic Safety, 1 Jan. 2013. Web. 15 July 2014. <https://www.aaafoundation.org/senior-drivers>.

road. “Despite their growing numbers, older drivers are involved in fewer fatal collisions than in the past. A total of 4,079 people (ages 70 and older) died in crashes in 2012. That’s 31% fewer than in 1997.”11 Considering this information, Baby Boomers may be an important customer group that your agency should focus its marketing efforts on, rather than Millennials, who appear to be shrinking in value to the independent agent.

OLDER DRIVERS, SAFER DRIVERS

U.S. automobile fatalities per 100 million vehicle miles traveled, by age group

1995

10 2001

8 6

2008

4 2 0 Source: White, Joseph B. “Older Americans’ Car-Crash Fatality Fig. 2. 16-19Has 20-24 25-29 Study 30-34 Says.” 35-54 The 55-59 70-74 Rate Declined, Wall60-64 Street65-69 Journal. Dow75-79 80+ AGE GROUP Jones & Company, 20 Feb. 2014. Web. 12 July 2014.

Crash Deaths per 100,000 People

BABY BOOMER MOTOR VEHICLE CRASH DEATHS PER 100,000 1975-2012

6,000 5,000 4,000 3,000 2,000 1,000 1975

1980

1985

1990

1995

2000

2005

2010

2012

Year Fig. 3. Source: “Older Drivers.” Fatality Facts Insurance Institute for Highway Safety, n.d. Web. 9 July 2014.

11 “Topic Overview: Older Drivers.” Topic Overview. Insurance Institute for Highway Safety, n.d. Web. 21 July 2014. <http://www.iihs.org/iihs/topics/t/older-drivers/topicoverview>.

What can you do about it? Consider making a targeting shift, marketing more heavily toward Baby Boomers rather than to less valuable Millennials. That said, Baby Boomers have a unique set of shopping characteristics that you should take into consideration when targeting your marketing efforts to this age group.

BABY Boomers are much less likely to shop around and more likely to stay with one dedicated agent who makes the insurance process easy and simple to navigate. In a study performed by Focalyst, a market research and consulting firm that focuses specifically on Baby Boomers and older consumers born before 1964, findings show that Boomers are the most loyal to their auto insurance provider (72%), even more so than they are to their home and medical insurance providers. In addition, they are less price sensitive and more concerned about being properly insured with the correct coverages from a reputable company that has excellent customer service. Therefore, they are more likely to purchase a more expensive policy and continue to renew with you in the future.12 To market to Baby Boomers, use traditional marketing techniques that have been around for a long time and will be the most familiar to people in this demographic. Baby Boomers truly appreciate the “personal touch” and rarely require advanced technology tools or interfaces. You may want to have your agents check in regularly with these customers to see if they have additional insurance needs, to remind them when their policy is coming up for renewal, or even hand deliver their policy documents to them when appropriate. There are many ways you can provide this next level of service and your efforts will result in a profitable customer who is loyal to your agency, so make sure you are not missing out on this valuable opportunity.

12 “Baby Boomers Stay Loyal to Insurance Brand, Study Reveals.” Insurance Journal News. Insurance Journal, 15 May 2007. Web. 17 Apr. 2014. <http://www.insurancejournal.com/news/national/2007/05/15/79724.htm>.

Big Providers Everyone is aware of the abundant competition within the auto insurance industry, and more specifically, those that go head-to-head with independent agencies. Historically, independent agencies have always competed heavily with direct writers and captive agencies, using their expertise and insurance knowledge to contend with well-known, largely established brands. More recently, however, huge players like Walmart and Overstock.com are elbowing their way into the insurance marketplace and using their existing customers as a massive launching pad to rapidly begin selling insurance products online.13 How can a mid-sized independent agency, let alone a small “mom & pop shop” in a rural area, compete with the likes of these names?

Why is this trend occurring? First, it is important to understand the differences between these two new opponents. Walmart has partnered with AutoInsurance.com to provide their customers with easy access to affordable auto insurance, offered online through Walmart.com. Walmart is paid in fees for providing their stores and website to AutoInsurance.com for advertising purposes.14 However, that is where their involvement ends. Overstock.com, on the other hand, has partnered with Insuritas, a private-label insurance agency provider, to launch a new insurance agency and create a dedicated section of Overstock.com, where customers can receive auto, home, or small business insurance quotes. If they decide to purchase the insurance policy, it goes into their Overstock.com virtual shopping cart and they are able to check out just as they would during a normal purchase.15 While Overstock.com provides the storefront and acts as the agent during the transaction, the actual coverage comes from major carriers secured by Insuritas, who provide the “backroom services, operational infrastructure, and products.”16 According to Insuritas’ CEO, Jeff Chesky, part of the appeal to partner with Overstock.com was the opportunity to operate strictly online via an extremely well-established platform with a long history of high-volume website traffic and successful sales numbers. Moreover, Overstock.com tends to attract ideal customers for the auto insurance industry - women between the ages of 34 and 55 who have high credit scores and therefore, are good claims risks to have on a book of business.17 In both of these scenarios, the websites have been designed for direct integration with carriers, allowing the customer to compare numerous options quickly and easily. Walmart, for example, provides online comparisons to national carriers including Progressive, Esurance, Safeco, Travelers, and 21st Century.18 In addition, applicant 13 O’Connor, Amy. “Walmart Begins Selling Auto Insurance Online.” Insurance Journal News. Insurance Journal, 30 Apr. 2014. Web. 23 April 2014. <http://www.insurancejournal.com/news/national/2014/04/30/327853.htm>. 14 O’Connor, Amy. “Walmart Begins Selling Auto Insurance Online.” 15 O’Connor, Amy. “Insurance Agents Urged to Follow Overstock.com, Insuritas Online Sales Model.” Insurance Journal News. Insurance Journal, 10 May 2014. Web. 2 May 2014. 16 O’Connor, Amy. “Insurance Agents Urged to Follow Overstock.com, Insuritas Online Sales Model.” 17 O’Connor, Amy. “Insurance Agents Urged to Follow Overstock.com, Insuritas Online Sales Model.” 18 O’Connor, Amy. “Walmart Begins Selling Auto Insurance Online.”

information auto-populates from their previous policies (when available), shortening the amount of time it takes for a potential customer to generate a quote. Low prices also add appeal - a year-long pilot performed by Walmart showed an average savings of $1100 annually by switching from their previous provider.19

Now that we have major retailers with access to existing infrastructures and potential customers to market their products to, how can independent agencies continue to be viable? Furthermore, are carriers who have relied on independent agencies to distribute their products in the past, but are now partnering with Walmart or Overstock.com, undermining the entire independent agency system? While these carriers say that this is a way to increase their brand awareness, they seem to be silently moving away from the independent agency model, slowly but surely. Independent agents have differing opinions on big name companies like Walmart and Overstock.com who have chosen to move into the insurance space. Some believe that this business model doesn’t have the foundation for success, that these companies simply don’t have “the knowledge, professional advice, and account management that is needed to make sure things are being done properly.”20 Critics add that this business model will likely work well for personal lines, but not as well for middle-market commercial businesses and larger agencies because of the specialization that is required during the application process. Whatever your opinion may be, it doesn’t deter from the fact that these new competitors are here to stay, and there may be more to follow soon. Be mindful of these peers and continue to monitor them going forward.

What can you do about it? Take a moment and remember, the best way to prove your worth to current and potential customers is through stellar customer service. Instead of moving customers from carrier to carrier just to give them the lowest price, explain which options are best for them and provide reasons why they should consider paying for higher limits, or for a policy with a company that has a great claims reputation. Also, use your years of experience to share success stories, or instances when insureds had wished they had increased their limits at your encouragement before getting into an accident while underinsured. Education can be a powerful tool during the application process and creates a mutual feeling of comfortability and trust. If you are a knowledgeable agent who forms a personal relationship with your insureds, they will stay with your agency for you - not the price.

19 O’Connor, “Walmart Begins Selling Auto Insurance Online.” 20 O’Connor, Amy. “Overstock.com Brings Insurance Sales to Retail Site, Agents React.” Insurance Journal News. Insurance Journal, 19 May 2014. Web. 2 June 2014. <http://www.insurancejournal.com/magazines/ features/2014/05/19/329034.htm>.

Keeping up with Technology Another change in demographics we are experiencing is the increased use of technology by our customers and therefore, how they are shopping for auto insurance. Many new marketing strategies are centered around technological advances, but it is important to keep in mind how tech-savvy your customer base tends to be. This may even vary agency to agency, so use your employees to find out what technology your customers are using and enjoying. Based on this information, you will need to implement new tech offerings strategically, rather than simply copying other agencies marketing plans.

Why is this trend occurring? Technology has had an enormous impact on the auto insurance industry as a whole; almost every tangible and intangible piece of the business has been affected in some way, from vehicles to personal devices, and everything in between. Therefore, it would be extremely ignorant to believe that technology enhancements aren’t necessary to the survival or growth of an auto insurance provider. In fact, according to Vertafore, 77% of insurance agencies directly attribute their fiscal growth through 2012-2013 to increased use of technology.21 Independent agencies that can find a balanced way to strategically implement new tech-driven features based on their customers’ wants and needs will have the most success doing so, rather than those who blindly try to keep up with the technological times and forget their insureds preferences in the process. Recent technology advances are also changing the way our customers are finding auto insurance providers and shopping amongst them. Customers are now shopping for their insurance online and on their smartphones, with “54% of auto insurance shoppers [reporting] getting their quote online.”22 That said, nearly half of these customers who find an acceptable policy quote by searching online still end up buying their policy from a human.23 This supports additional research done by Accenture, which suggests that providers shouldn’t focus solely on automating their services. Automation should be an option, but not the only one. This may be especially true for your agency if you decide to focus marketing efforts on the Baby Boomer group.

54% of auto insurance shoppers report getting their quote online.

54%

21 “Most Insurance Agencies Say Technology Helped Fiscal Growth: Survey.” Insurance Journal News. Insurance Journal, 14 June 2013. Web. 2 June 2014. 22 Sandquist, Erik J. “An Increasingly Digital Insurance World.” Accenture Insurance Blog. Accenture, 29 Apr. 2013. Web. 1 June 2014. <http://insuranceblog.accenture.com/an-increasingly-digital-insurance-world-part-1-of-2>. 23 Perlman, Jeff, and John Tews. “Online Insurance Quote Applications Now Initiate a Majority of New Policy Sales.” J.D. Power and Associates. J.D. Power and Associates, 2 June 2011. Web. 13 July 2014. <http://businesscenter.jdpower. com/news/pressrelease.aspx?ID=2011061>.

What can you do about it? While technology can sometimes seem overwhelming, it is actually often easier for smaller, independent agencies to implement and use new technologies than it is for larger agencies. For example, smaller agencies tend to use more mobile technology than larger ones, including: • • • • •

Document scanning apps Camera phones for vehicle photos iPads for eletronic signatures Agency applications Automated email solutions24

Why is this? Independent agencies can quickly train a small group of employees on a new technology feature and also ensure that the training does not become diluted from an extended game of telephone, as it might be in a much larger organization. You can even train a small group of technology “experts” in your office who manage the software and troubleshoot for others. 25 While big companies may have more available funds to be more aggressive in their technology advances, they will take much longer to implement it, so use this to your advantage. Find small, manageable pieces of technology that will save your agency time and money and don’t require a huge commitment to complete. Lastly, while automation is an advantage, it is not as important to your insureds as customer service, responsiveness and careful claims handling are, for example. Your agency should focus on working towards a state of “synchronized technology,” steadily implementing apps and software that are manageable for your agency and “in sync” with the rest of your business. 26

24 “Agents Speak out about MGAs.” Insurance Business America 1 Apr. 2014: 12-15. Print. 25 “Most Insurance Agencies Say Technology Helped Fiscal Growth: Survey.” 26 Insurance Business America: 12-15.

Marketing Strategies to Fit the Trends Now that we have discussed a few of the most prevalent industry trends and the possible effects they may be having on your agency, it’s time to do something about it.

Constructing a smart, fact-driven marketing strategy can help your business remain viable and profitable, especially during tough cycles created by outside forces. Keep in mind, while the trends we have discussed within this report should certainly have an effect on the way you are marketing to your customers, we also believe that there are some basics to always keep in mind, no matter the state of the market.

Marketing Basics There are several marketing basics that will benefit every agency. Some are more traditional, like direct mail and regular newsletters, but most are technology-based (social media, email, blogging, etc). Mastery of these basic marketing techniques will provide a solid foundation for growing and maintaining a profitable agency. 27 Keep a constant flow of conversation going between your agency and your insureds using a variety of communication vehicles. Emails are great, but can sometimes stack up unread in a recipient’s inbox or be filtered out completely due to email security settings. Look for opportunities to rise above the competition. For example, while this method may seem outdated, the Insurance Journal recommends an occasional return to direct mailings. (Hint: This could be an especially effective tactic if your agency has decided to target the growing Baby Boomer group.) While sometimes costly, a direct mailing that delivers your message clearly and effectively will stand out against today’s digital landscape and your competitors, thus justifying the cost. 28 Another marketing basic is to manage your agency’s online presence through your website, blog, and social media profiles. Update your website regularly, post to your blog frequently, and interact consistently with your followers on your social media sites. Be authentic, be timely in your responses and always stay true to your brand. As previously discussed, exceptional customer service is the ultimate key to retaining your current customer base and gaining new insureds, so find ways to improve by using a variety of tactics. Instruct your agents to make each customer experience unique to that person and their insurance needs. The more you can tailor your service to an individual, the more secure and confident they can feel with 27 Shulman, Alan. “7 Basic Marketing Approaches for Independent Agents.” Insurance Journal News. Insurance Journal, 25 Mar. 2013. Web. 2 June 2014. <http://www.insurancejournal.com/magazines/ ideaexchange/2013/03/25/285530.htm>. 28 Shulman, “7 Basic Marketing Approaches for Independent Agents.”

their insurance purchase, and your agency. Additionally, involvement in your local community often helps you differentiate your business from the competition, and community outreach initiatives can grow your credibility in your immediate area. People like to support local businesses, especially those involved with community schools, organizations, restaurants, or, of course, driver education courses.

Beyond the Basics: Developing an Intelligent Marketing Strategy While these marketing basics are unlikely to change anytime soon, you will need to consider the aforementioned external conditions and industry trends before deciding on a final marketing strategy. Examine your agency’s existing customer base and consider current economic trends when creating this plan of action so that it will be the most effective for your agency. Do your insureds prefer to transact business and communicate with you digitally? Or do they prefer more traditional methods? A combination of the two? You know your customers and what will best work for them. Weigh all of the options, but only use those techniques that are applicable and proven to be successful with your specific audience. Lastly, set a plan and stick to it for a set amount of time; this will allow you to collect enough data so you are able to analyze its effectiveness and determine if it is a strategy that should be continued. Analysis is key to measuring the effectiveness of your marketing strategy. Use hard data, like new business counts and premium statistics, and compare them to your marketing plan timeline to analyze what seems to be working and what isn’t. Then make slight adjustments to your plan to keep business moving in a positive direction. Measuring and analyzing these data sets can give you all the tools you need to create the most powerful marketing strategy possible for your agency. 29

29 Morin, Bruce. “Creating a Digital Marketing Strategy for Your Insurance Agency.” Astonish. Astonish, 30 July 2013. Web. 2 June 2014. <http://www.astonish.com/blog/creating-a-digital-marketing-strategy-for-your-insuranceagency/>.

CLOSING REMARKS We hope that you found this report to be valuable and were able to discover some information that will positively affect your independent agency. Again, while some of the discussions here may or may not directly apply to your agency and its unique position within the industry, we strongly feel that there are overlying themes that are important to note for all auto insurance professionals. Thank you again for your interest in Personableâ&#x20AC;&#x2122;s Non-Standard Auto Independent Agency Trends Report. We hope that you will share this report with your industry colleagues and business partners. Please provide us with any feedback, comments, or suggestions you may have to marketing@personableinsurance.com. Your input plays a huge role in our creation of future trend reports and is therefore greatly appreciated, so please feel free to reach out with any comments you may have. Best regards, The Personable Insurance Team

Personable General Insurance Agency, Inc. 350 10th Avenue, Suite 1400 San Diego, CA 92101 Phone: (619) 702-7022 Fax: (619) 702-7077 www.PersonableInsurance.com

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