More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com
EXPRESS “What You Don’t Know Can’t Help You!” … Eddie K. Emmett, Editor / Publisher
Are you breaking the law when you buy or sell an insurance agency? Where’s Your Privacy Policy? In This Edition ARE YOU BREAKING THE LAW WHEN YOU BUY OR SELL AN INSURANCE AGENCY? ....................................... 1
WHERE’S YOUR PRIVACY POLICY? . 1 CYBER LIABILITY, YOUR AGENCY & YOUR CLIENTS ............................. 10
Last weekend, as I was updating the content of my “How to Evaluate, Buy & Sell a ‘Mom & Pop’ Insurance Agency” Ethics CE seminar to be presented on Thursday morning at Insurance Expo 2014, I stumbled over a potential roadblock in the “Buy / Sell” scenario.
A COMMODITY VS. A RELATIONSHIP ................................................... 12
Did you know that our insurance companies have Privacy Policies? Ever read one?
ACQUIRING AND KEEPING GOOD PRODUCERS ................................ 18
Have you created such a notice for your agency?
OPPORTUNITY KNOCKING ............. 22
The Gramm-Leach-Bliley Act (GLBA) imposes privacy obligations on every insurance agency:
STRONG VERBAL AND PRESENTATION SKILLS ......................................... 22 SELF-STARTER ............................. 22 HUDGENS: GWINNETT COUNTY COUPLE ARRESTED ON INSURANCE FRAUD CHARGES ......................... 24 CAN YOU ‘CHEAT’ YOUR WAY TO MORE CUSTOMERS? ..................... 28 HOW WILL YOUR IDEAL PROSPECTS FIND YOU? .................................. 31
FYI Express
Privacy Notice Disclosure Requirement. Every insurance agency must provide all customers with an initial and annual notice that describes the manner in which their nonpublic information is collected, maintained and disseminated.
Are you breaking the law when you buy or sell an insurance agency? Since the prospective buyer was not a party to the original application for insurance, does the owner have the right to sell the personal information without getting permission from each policyholder? Would that be considered a Data Breach under the current regulations? Insurance agencies are at risk of having a data breach on multiple fronts — negligence, a rogue employee, stolen equipment, or a network security failure. If the proper insurance protection is not secured before a data breach occurs, the future of the business could be in jeopardy due to extensive recovery and reimbursement costs as well as damage to its reputation.
Opt Out Notification Requirement. Before sharing nonpublic personal information about a consumer with a nonaffiliated third party for a nonexempted purpose, the consumer must be notified of the right to prohibit the sharing of such information for such a purpose (an “opt out”).
Core Cyber™ provides organizations the expert assistance and financial relief needed to confront a data breach head on.
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Continued on page 2
More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com Security Mechanisms are designed to protect the nonpublic information from inadvertent disclosures. Integrity Mechanisms are intended to protect nonpublic personal information that is maintained in an electronic medium from becoming corrupted. Have you ever read your Agency – Company Agreement? Agents should be careful about agency contracts that include specific provisions requiring agents to adhere to an insurance company’s privacy policy. If the privacy polices of different insurance companies address security and integrity mechanisms differently, agents agreeing through agency contracts to adhere to those differing requirements may find it impossible to comply with all of them. The Gramm-Leach-Bliley Act (GLBA) imposes privacy regulations for all insurance producers unless they qualify for an insurance agent exception. Do you qualify for the exception? I’ll explain at the seminar sponsored by Unique Insurance Company. Contact Scott Levenstein at slevenstein@amigo-mga.com for a 50% off discount code. But there’s no exception for your responsibility for a data breach regardless of the reason. That’s why you need Cyber Liability … before and after the sale!
Privacy Policy Continued from page 1 With a host of value-added consultancy services available before, during and after a data breach incident; and financial assistance in the event a covered breach occurs, Core Cyber is the comprehensive solution organizations need to ensure a data breach incident does not challenge their future. More information https://biz.identityfraud.com/goagents
at
BTW … during the “Evaluate, Buy & Sell” seminar 1800-We-Insure™ is going to a Big Announcement called the 1-800-We-Insure™ Opportunity.
Data Security and Integrity Requirement. All insurance agencies that collect or maintain a customer’s nonpublic personal information must institute mechanisms for protecting the security and integrity of that information. FYI Express
It is an agency changer. Will you be there to see it?
Page 2
July 2014
Giving agents and organizations new products and benefits. Increase sales. All online. Easy to use.
OFFERING HIGH QUALITY NICHE PRODUCTS Home Warranties Appliance Protection Plans Auto Service Contracts Power Sports Service Contracts Pet Health Insurance Boat Insurance Discount Medical Plans Individual Identity Theft Business Identity Theft GoAgents is proud to be working together with the highest valued companies in the industry to bring you niche products, enabling you to cross sell and increase revenue with new and existing clients.
Questions? Call us at: (Toll Free)1-855-854-7387 or Learn More online at www.goagents.com
More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com
GIAA Selects GoAgents.com and Identity Fraud, Inc. to Deliver Cyber Liability and Risk Management to Policyholders Atlanta, GA – Georgia Insurance Agents Alliance (GIAA) is pleased to announce that it has selected GoAgents.com, an on-line insurance provider, and Identity Fraud, Inc. (IFI) a cyber-insurance program administrator, to deliver agency members of PIA Texas a new cyber liability insurance program designed for the agents and their small to mid-sized business clients (SMBs). Based on continued high profile breach cases like Target Stores and increasing security and privacy compliance pressures, the relationship is timely to help agents bring affordable and comprehensive cyber insurance solutions to main street America. “Georgia companies and institutions have had their fair share of data breaches and although our cyber education and insurance demand has increased, we’ve lacked a solid solution to endorse. I am pleased to say we now have a proper cyber protection and distribution solution that is comprehensive, affordable and simple, three important criteria when working with small businesses. Our agency members can quickly and easily protect their own agency risks and then migrate the solution out to their customers”, states Eddie Emmett, Executive Director of GIAA.
Everyone has data and everyone needs cyber protection. Our combined efforts simplify the process and make it workable in the SMB space,” states Michael Mandell, COO of GoAgents. SMBs have become the targets of choice for many cyber criminals. The damage caused by corporate identity fraud or a data breach of personal information held in trust by SMBs can be devastating.
Program Highlights: Prevention • Computer Vulnerability Scans (Internal) • Unlimited Access to Employee Education Modules • Risk Assessments, Written Policies/Templates, Incident Response Plan • Keystroke Encryption Software Protection • Limits of Liability – $50,000 up to $1 Million – Retentions $1,000 ($2,500 for limits at or above $500,000) • Cyber / Breach / Privacy Legal Liability and Defense Coverage – Loss/Theft of Personal and/or Business Data – Failure to Disclose/Notify – Regulatory Fines and Penalties
“We are excited to be working with the GIAA, their members and GoAgents to deliver our cyber protection to members and their clients. As insurance professionals, we all know coverage gaps exist in traditional insurance policies and that these gaps need to be filled. Agents can now more aggressively pursue and succeed in providing valued cyber solutions to their clients based on having our program”, states Tom Widman, president and CEO of Identity Fraud, Inc.
– PCI DSS Fines and Related Contractual Obligations ($250,000 sublimit)
The new program combines the GoAgents.com unique agency distribution platform together with the cyber risk management and insurance solutions provided by Identity Fraud, Inc. and their A rated insurers. The program has important protection to satisfy mandates and appropriate risk management, while also delivering the peace of mind that comes with financial protection and on demand breach assistance.
• Expense Coverage with a $25,000 up to $250,000 limit, respectively, for eBusiness Network Interruption, Data Reconstruction, Cyber Extortion, Law Firm/Breach Coach, PR Firm, Forensics, Consumer Notifications and Consumer Remedies for identity theft education and assistance, victim cost reimbursement insurance and credit file or identity monitoring ($1,000 retention, sublimits may apply).
• Web Site / Media Liability for libel, slander and certain related web site risks
Response • Data Breach Incident Response On-Demand™ (iROD) 24/7
“Our relationship with the GIAA has been Pricing: $229 per year up to $1699 based on longstanding. We are pleased to have the GIAA organization size and desired limits. leverage our click and bind platform that has now also Learn More: integrated the cyber protection program from IFI. Agents http://www.goagents.com/data-riskcan not only add value to their customers but reduce liability?code=fyiexpress their E&O exposures as well. FYI Express Page 4 July 2014
INSURANCE EXPO 2014 “Licensed to Sell!” July 10 – 12, 2014 Sonesta Gwinnett Place in Duluth, GA All Under One roof You spoke and I listened. You wanted a place that could host the South’s Best Insurance Industry Trade Fair, the Best Continuing Education Classes, the Best Insurance Agent Party and the Best Hotel Rates … all under one roof … and at affordable prices.
Why Should You Attend? It is 3 days of non-stop action and brand-new education designed especially for the Independent Insurance Industry.
Earn up to 24 hours Continuing Education!
Pay for only as much as you need! But wait … there’s more! Free Trade Fair, Free Hospitality Suites, Free Continuing Education … we’ve got it all.
You got it! Sonesta Gwinnett Place will be the place to be on July 10-12. Single, Double, Triple, Quad Rooms are only $94.00 if reserved by July 6, 2014.
Agent / CSR Online registration at http://www.fyiexpress.com/agents--csrs.html Exhibitor / Sponsor Online Registration at http://www.fyiexpress.com/exhibitors--sponsors.html IE2014 Agenda
More info at www.FYIExpress.com
Insurance Expo 2014 Continuing Education Agenda
Thursday, July 10th
1:00 p.m. – 3:00 p.m.: 3 hours FREE CE Commissioner Hudgens and his staff are going to bring you up to date on the plans for GA’s Insurance Industry
9:00 a.m. – 12:00 p.m.: 3 hours Ethics CE
This CE is free to everyone but you must register online at http://www.fyiexpress.com/agents-csrs.html since seating is limited to the first 240 registrations. Attend DOI Update and Trade Fair and earn 3 hours Association CE Credit (max 3 hours per year)
3:00 p.m. – 6:00 p.m.
“How to Evaluate, Buy & Sell a Mom & Pop Insurance Agency!”
Free Trade Show
Topics: 99-point Evaluation Checklist – You really didn’t think it was just the last 12 month’s income, did you? Automation – Lack of an Agency Management System cuts your perceived value by 50%. If you don’t have one, pick up one at IE2014 Trade Show. e-Signatures, apps & payments – Want to easily add to the value of your agency? Start selling online with e-Signatures for all your insurance products and services. Your clients will love you and you have a proven business model to enhance the agency value. You will increase business so easily that you might change your mind about selling! Internet Presence – So what does your Internet Presence have to do with agency value? Think about it … prospective buyers will check you out online way before contacting you personally (& they will have already formed an opinion of your operation).
Trade Show Open Bar sponsored by United Auto Insurance Group. Free admission to everyone except marketing reps from non-participating companies. They are “Persona non Grata” Look it up. 6:00 p.m. – 10:00 p.m. Poolside Party Your mission, if you choose to accept it, is to enjoy the hors d’ouveres and open bar sponsored by Aggressive Insurance.
“Tail” E&O – You can’t sign off your liabilities unless all parties agree. And it is impossible to get approval from all of your current and recent policyholders. Employee Agreements – Did you know that some employees think the book of business belongs to them and plan to take those policyholders with them if they can’t get along with the new owner? Fortunately, agency owners have a new way to discourage that practice. It’s called “Cyber Liability”. Cyber Liability – State & Federal cops take PI Theft very seriously. Not only do they go after the thieves but the agency owner for losing the data. BTW … do you have permission to share your policyholder’s Personal Information with a potential buyer?
6:00 p.m. – 11:00 p.m. AccuAuto Hospitality Suite #131
Dinner on your own
You’ll learn all the above and much, much more! IE2014 Agenda
More info at www.FYIExpress.com
Friday, July 11
th 3:00 p.m. – 6:00 p.m.
9:00 a.m. – 12:00 p.m.: 3 hours Ethics CE
Free Trade Show
Trade Show Open Bar sponsored by United Auto Insurance Group. Free admission to everyone except marketing reps from non-participating companies. They are “Persona non Grata” Look it up. 6:00 p.m. – 11:00 p.m. AccuAuto Hospitality Suite #131
“If it’s free … It’s for me!” I’ll demonstrate the latest arsenal in free tools for enhancing your agency’s web presence, social media, video, agency automation. Aspirin will be on hand in case your head explodes. Bring your laptops & iPads for “Hands-On” Training. 1:00 p.m. – 3:00 p.m. : 3 hours FREE CE “The Next Big Deal” Listen ... that noise you hear is opportunity knocking! Did you get in on the Obamacare Confusion" Some agents made over $100K. What's the next Big Deal"? Immigration Reform comes to mind. Cyber Liability is another. Attend this seminar then complete your active participation by visiting each of the Exhibitors in the Trade Fair from 3:00 - 6:00 p.m. to earn 3 hours Association CE 50 Years of Bonding with Agencies Insurance House, Southern Insurance Underwriters and Strickland General Agency are celebrating a combined 150 Years of Bonding with the Insurance Industry.
Dinner on your own
Saturday, July 12
th
“How to be #1 in your niche”: 3 hours CE “Being busy does not always mean real work. The object of all work is production or accomplishment and to either of these ends there must be forethought, system, planning, intelligence, and honest purpose, as well as perspiration. Seeming to do is not doing.” Thomas A. Edison There's a step-by-step procedure needed for any successful program. 1. Confirm customer need 2. Find suitable solution 3. Train employees in this special niche 4. Zero in on local prospects 5. Put in place targeted promotional material
In honor of their Golden Anniversary, IE2014 is giving away 3 hours CE (150 minutes) to all attendees.
Follow the simplified formula in this seminar and you are guaranteed to be #1 in all niche products offered by your agency.
This CE is free to everyone but you must register online at http://www.fyiexpress.com/agents--csrs.html since seating is limited to the first 240 registrations.
All attendees can get a free Excel spreadsheet of all prospects with a specific need within 31 mile radius of their office.
Attend Roundtable plus Trade Fair and earn 3 hours Association CE Credit (max 3 hours per year)
IE2014 Agenda
I can do that with any special niche.
More info at www.FYIExpress.com
More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com But, that day was different. I was in a different mood and so were many of the passengers. And it was all because of our pilot, Gerald Worthington. His mood was contagious. And that is what brings me to the point. You may have heard the old expression: Enthusiasm is contagious. Well here’s a new one: Customer service is contagious. Actually it might be better to say that…
When it Comes to Customer Service, Be a Leader
Friendly customer service is contagious. There is no doubt that Gerald put us into a better mood. His mood made accepting the bad news easier. It wasn’t the airlines fault that there was bad weather. And, by the way, there are many passengers that seem to think it’s the airlines fault when there is a delay due to weather. But, I digress. It just seemed that the outward friendliness of our pilot made everyone a little happier, more accepting and more tolerant. And, guess what else? The other captain and all of the flight attendants were in a better mood too, and as a result, they delivered an even higher level of customer service. Here’s the lesson: A friendly, outgoing, customer focused employee can raise the bar for everyone. Gerald set a great example for the rest of the employees to follow, and they did. In a sense, Gerald created the plane’s “culture.” Just like any other company might have a customer focused culture, it starts with leadership. And, here is a reminder about leadership. My friend and colleague Mark Sanborn says that you don’t need a title to be a leader. And when it comes to customer service, anyone can step up and be a leader and role model. So, step up. Set an example. Others will follow. It’s contagious!
I was boarding a very early morning flight to Dallas. One of the pilots of the plane, Gerald Higginbotham, was greeting every single person who walked on the plane. He was so outgoing and engaging. He welcomed everyone and built rapport with many of the passengers. He would ask, “Where are you going?” If they said anywhere other than Dallas, he would say, “Well we’re flying to Dallas, and as long as that is on your way, you’re on the right plane.” Then he would laugh.
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
He had lots of little sayings that put smiles on everyone’s faces. I was sitting in my seat and admiring this amazing display of enthusiastic interaction. I’ve seen pilots engage with passengers before, but not at this level.
(Copyright ©MMXIV, Shep Hyken) I’ll show you how to do all of the above at Insurance Expo 2014.
Then came the bad news. Our flight was going to be delayed by at least a half hour due to weather. That didn’t scare too many people. But, a few minutes later we found out it would be at least an hour. Typically when this kind of news is announced many of the passengers start to get restless. They want to leave the plane, see a gate agent, call reservations or do just about anything, to feel like they are proactively doing something to avoid missing connections or being late to their destination. I’m one of those passengers. FYI Express
www.FYIExpress.com Page 8
July 2014
Introduces New Mobile App
CELESTITE POLICY SCAN - Photo Upload Made Easy
Simplifying the new policy submission or new vehicle endorsement process by allowing Insurance Agents to capture required photos and upload them directly onto the specific policy. AVAILABLE NOW FOR IPHONE & ANDROID SEARCH For - Celestite Policy Scan
Marketing Jim Childs (770) 840-5077 Jim.Childs@aggressiveusa.com Janice Cantrell (912) 398-5295 Janice.Cantrell@aggressiveusa.com David Emmett (770) 490-7861 David.Emmett@aggressiveusa.com
More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com
Cyber Liability, Your Agency & Your Clients It seems every day some business gets hacked and their data exposed to the world. It’s no secret that identity fraud and data breaches of the personal information held in trust by you or your customers are becoming a huge exposure. In fact, most of the associations tracking these crimes have stated that small businesses have become the target of choice for hackers and fraudsters. And, “Nearly six out of ten (59%) of SMBs do not have a contingency plan outlining procedures for responding and reporting data breach losses” — National Cyber Security Alliance and Symantec Small Business Survey How it happens…
Our new Cyber Program will provide you with a strong response. It offers a streamlined underwriting approach without a long detailed application. We can link your agency to an automated platform that describes the coverage and processes quotes, binders and policy issuance. Our carrier is a market leader in this class and offers a competitive product, with limits, SIR’s and underwriting guidelines specifically tailored to the SMB market segment. We’re offering this program to our members to be used in two ways… First, protect your own agency. You have data and data risks and need comprehensive and affordable protection. Think of all the personal information you have on clients and prospects. What would you do if you suffered a data breach? Simply go online and purchase. Limits are up to $1 million. All documents are issued instantly. Take advantage of these risk management tools right away.
Lost or stolen laptop, unsecure smart phones, or hacked systems Fraudulent purchase orders used to buy goods in the company name ID Thieves who impersonate the company to collect account receivables A disgruntled former employee selling the personal information of your customers. Why are small businesses targets? Credit limits are higher than most individual victims Lack of formal internal data security used by larger companies Businesses control large amounts of Personal Identifying Information of others (credit card transactions, file records, customer and employee data) Delayed reaction times to discover a problem The consequences of fraud or a breach... Financial loss and damage to credit ratings Negative impact on future revenues Damage to the company brand and reputation. Loss of customer confidence and loyalty Disruptions with vendors and suppliers We are pleased to announce a new strategic alliance to provide all of our members with a Cyber Liability program specifically designed for your small to medium sized customers. FYI Express
Visit www.goagents.com/FYIExpress Next, protect your clients All of your SMB customers are at risk, and the exposure to a small business can be devastating. Not only will you add value and help protect your clients, you will strengthen your relationships, deliver the optimal or “best deal” available and reduce your own E&O risk along the way. Leave the administration and fulfillment our new program partner while you build a new source of incremental, recurring revenues. SMBs having less than $10MM in revenue and 50 or less full time equivalent employees automatically qualify for our pre-pricing – the quotes are already live. Simply bind and print. (For data risk liability, select the Core Cyber™ program. To add business identity protection/business identity insurance, monitoring and alerts, choose SB Core Protector which is the flagship program providing the most comprehensive protection, i.e. cyber liability, business identity, employee identity coverage and more…) Many experts agree that when it comes to SMB ID Theft and Data Breach exposures it’s not a case of ‘if’, but ‘when’. Don’t run the risk of becoming victimized without the proper coverage, and take steps to point out these exposures to all of your SMB customers. We encourage you to check the link to the program to learn more and make this coverage part of your new and renewal placements. In today’s market these data risks are simply too serious to ignore. Free Cyber Liability CE seminar on Friday afternoon at Insurance Expo 2014. Page 10
July 2014
Premium Insurance Agency Website
Web Marketing Service
$35/month, $99 setup fee
$495 setup, $100/month
• Service descriptions • Online payment links • Contact info, contact form and location map • Up to 15 pages • Agency blog • Insurance information videos • Custom QR Codes • Links to social media and review sites to build your online reputation • Online quote forms • Agency staff photos and individual contact info • Optimized for mobile devices
• Create agency business listings for visibility with more than 10 of the biggest listing and social media sites: Facebook Business Page Twitter for Business Account Google Places Listing Bing Listing Yahoo Listing Yelp! Business Listing CitySearch Listing …and more! • Independent Agency blog for inclusion in your agency website Professional content added regularly Make your site interesting to customers, potential customers, and search engines • Inclusion as preferred agent in our online directory listing of local agents • Basic monthly analysis of online presence • Setup and monitoring of Google Ad Word campaigns based on a budget you specify
Elite Insurance Agency Website
Web Consultant Service
$60/month, $99 setup fee
$1995 setup, $250/month
• Includes all the features of the Premium Insurance Agency Website, PLUS: • Up to 30 pages of content • Custom design services for a unique look • Custom submission forms for your preferred lines • Online chat • Insurance Glossary • Multi-location interactive maps • Regular changes by our staff upon request • Optimized for mobile devices
AgencyThrive - Insurance Agency Internet Marketing & Social Media
Includes all the features of the Web Marketing Service, PLUS SO MUCH MORE: Elite Website included with Instant Auto Quote (where available) Weekly updates of Social media sites Includes Google Adwords campaign (no additional click charges) Monthly email blast to your customers upon request Monitoring of online reviews to protect your reputation Detailed monthly analysis of online presence Preferred placement on our directory listing site of local agents Monthly action plan to increase traffic and sales
More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com
A Commodity vs. a Relationship While most agencies have great slogans and logos about personal service, the reality is that the pressure of time and volume of work causes us to treat most of our clients just like the “commodity” that they feared they would become if they just signed up on line or over the phone.
By Al Diamond www.AgencyConsulting.com
One of the reasons that the direct writers and internetbased companies do so much business is that the buying public, feel that insurance is a commodity -we’re all the same and the price is the only differentiation. In an impersonal internet-based world in which texting replaces actual conversations this concept makes sense – until a sour experience with a claim or service issue illustrates the need for personal service and relationship. The statistics show that while a large number of people “shop” for insurance on line, most people choose to actually BUY from a human being. They want to touch, feel and speak to their financial counselor. But I’m pretty certain that they don’t quite know why – it just comforts them. The actual reason is that they are assuring themselves that they are spending their insurance money wisely and the hope that someone stands behind them in case they need to use the protection. But attitudes about insurance agents tend to change in the year after they purchase the product depending on the attitude of the agent or of the agency. FYI Express
We treat them like numbers. We don’t get to know them. At best they may know the agent who sold them the insurance but are not likely to establish relationships with the agency or with other staff members. Yet few intelligent agents deny that their best clients are ones with whom they have a long and lasting relationship, personally and professionally. Some may have been friends before becoming clients, but most agents create a relationship with clients who are important to them and friendship often follows and stems from a strong business relationship. So where’s the DISCONNECT? Why do we only see many of our clients once a year (if that often) to confirm renewals? Are these the same clients that you wooed and enticed when you initially sold them on using your service because they lost contact and trust with their prior insurance provider?
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Continued on page 14 July 2014
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More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com
A Commodity vs. a Relationship Continued from page 12 Too Much To Do, Too Little Time to Do It, Too Many Clients to Visit--When it boils down, the reasons we hear in response to the questions above is a) We have so much to do that we’re lucky if we see any clients at all b) Our agency operations take up so much time that we are hardly in the insurance business at all any more – we’re managers, administrators and “firefighters” c) We promise on-going communications and relationships but, in reality, we have hundreds of commercial clients and thousands of personal clients – we simply can’t see them all. Before we can even address the issues raised above, we must actually gauge our commitment to the concept of Personal Relationships as the primary point of differentiation between our agency and your competitors.
Similarly, I know agents who have hundreds of commercial clients and thousands of personal clients and are so committed to the concept of personal relationships that every client thinks that the agent (or agency) considers them a VIP and treats them accordingly. If you commit to personal relationships, you understand that there are others in the industry who can outspend you – there are always better prices than yours if the client looks hard enough – but as long as your clients know that you give them a grade of service that they cannot achieve elsewhere, they will not only remain your clients, but they will tout you to their friends as their ‘go to’ insurance expert. If you’ve reconciled your feelings and find that the Personal Relationship point of differentiation is the one that will best serve your and your clients’ needs, you are ready to attack the “symptoms” of the ailment that keeps you from maintaining strong relationships with your clients after the sale.
Commitment is the way you operate your life. That to which you are committed (marriage, children, church, sport, hobby, your business) gets attention and gets accomplished. That to which you aspire but are not committed are the things that you TRY TO DO. And, in the words of the immortal Yoda, “Do or do not. There is no try.” I know folks who are COMMITTED to golf. They are agents and some are successful, but they play golf three to four times each week – they certainly maximize their success at that which they are committed. FYI Express Page 14
1.
We All Have Too Much To Do – Lack of Prioritization – We have a small staff and a very busy consultancy. We have to remind each other of lunchtimes and at the end of the day or we will work through them. But there are a few things that we remember because they are our priorities. Our health and alertness is a priority so we remind ourselves and each other of break and lunch times in order to be most effective in our business and personal lives. Continued on page 16 July 2014
For Comprehensive Mobile Homeowners Insurance, put your trust in a company that has been insuring homes for over 50 years.
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National Security has provided competitive, affordable insurance to policyholders for over 50 years, but we also provide a lot for our agents, with competitive commissions, excellent customer service and experienced company adjusters. As an admitted Southeastern based regional company, National Security prides itself on fast, efficient service from a friendly small town company, and online contact for all agents, providing fast quotes, online policy issuance, online dec page printing, and realtime policy information.
We are now accepting new appointments. Find out more by calling Sharon at 1-800-239-2358 x213 or visiting us at nationalsecuritygroup.com.
Elba, Alabama • 800-239-2358 x213 • www.nationalsecuritygroup.com
More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com
A Commodity vs. a Relationship Continued from page 12 Our families are priorities so no matter how much work we have, we force ourselves to become husbands, wives, parents and grandparents evenings, weekends, during time off (we criticize each other for calling in while on vacation) and whenever a family event needs to supersede our daily lives. For agents and their staffs who have become converts to Personal Relationships, seeing and talking to clients must become the primary function of your working lives. Many of us have been shocked by longterm clients who we visit at renewal who tell us that they have found less expensive insurance elsewhere. We are hurt and feel that we think of the clients first, but we fail to keep the clients in the loop. The worst case scenario is when our agency DOES spend a great deal of time working on behalf of customers but we never bother to include the customer in the communications loop. They never assume that you are working on their behalf unless you actually tell them of your efforts. 2. We are pushed and pulled into management of people, process, underwriting, marketing, administration and anything else instead of being able to work with our clients – Lack of Delegation and/or Lack of the right managers. As our agencies grow we tend to take on more and more work instead of identifying lead workers who could become supervisors and eventually managers who should take on these needed roles IN OUR SUPPORT as the key producer/insurance professional. Once you have more than three or four employees you must breed your own managers. If you have ten or more employees and are still the only manager, you are automatically doing your clients a disservice by spending your time on administration instead of with them.
FYI Express
3. We have TOO MANY CLIENTS to communicate with regularly – Lack of Process. Classify every client (we spreadsheet ours) by the appropriate number of times that client should be seen or communicated with in a year. Then by virtue of the revenue size and/or personal relationships, define who should be seeing or speaking to the customer and start tracking and managing that communications line every week and every month. When we establish a relationship, it doesn’t always have to be with the agency owner or producer. Most clients find themselves dealing with service staff much more than with a salesman anyway. If a client is large enough, the owner/producer should be the lead (but not necessarily the only) point of contact. But size DOES matter. You must differentiate in treatment between a $10,000 commission account and a $100 commission account. Both should feel they have a special and personal relationship with someone in the agency, but not every personal relationship has to be with the owner. PRIORITIZATION – DELEGATION – PROCESS MANAGEMENT are the tools that allow the agents truly committed to PERSONAL RELATIONSHIPS AS THE POINTS OF DIFFERENTIATION between them and their competitors to accomplish their goals and to have the vast majority of their clients feeling “special” all of the time. Contact us and we’d be happy to advise you how to teach Personal Relationships to your agency and to establish all of the tools needed to make you successful as an independent agent competing against the Commodity Agencies and against the direct writers who thrive on making insurance a commodity business.
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www.AgencyConsulting.com
July 2014
Looking for Markets? We Are Your Solution The Atlas General Difference Atlas is a National Full Service Program Manager offering a wide range of insurance solutions including workers compensation, contractors general liability and BOP, available for apartments, auto services, convenience stores, restaurants, offices and taverns. Now writing trucking-local (no new ventures, $10,000 minimum), artisan contractors, healthcare, assisted living, hospitality, auto service repair, and many other classes. Atlas has expertise in developing and underwriting specialty programs with a variety of insurance carrier partners. We are committed to providing exceptional services and unique options for our clients. Best of all, we have no premium volume commitments to become appointed with us. For marketing information, please contact: Shane Cosey, Marketing Rep 404-593-3336 or shane@atlas.us.com
Garland Byrd, VP Marketing 865-588-1986 or garland@atlas.us.com
To learn more about our products or to become appointed, visit atlas.us.com
More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com
ACQUIRING AND KEEPING GOOD PRODUCERS By Al Diamond www.AgencyConsulting.com
Deferred Compensation and Shadow Stock Producers, experienced or new, who are talented enough to help agencies develop, are the goals of every agency owner that is focused on growth and perpetuation. No one strives to be a maintenance owner, servicing a declining agency client base. Yet many agencies find themselves in that very position. They only grow when rates or the market drives premiums higher. And they pay no attention to the key element of agency success growth of client base. So their client base silently and slowly erodes until the pressures on cash and profit drives the agency to sell or merge to maintain some value to the asset. The answer for insurance agency owners is to recruit producers who will both grow the agency in support of their compensation needs AND become the agency owners’ successors.
They are considered Journeymen Producers. They work in the field for five or ten years to attain a large enough client base to support their compensation needs and then move from agency to agency, taking their clients with them, until the agency realizes that it bears little profit or growth from the producer after the initial rollover of clients. The producer has Retired In Place and is taking producer compensation (usually higher than service compensation) to become a service representative for the same group of clients that they have had for years. However, every year there are some experienced producers who realize that they will never achieve their earnings potential or agency ownership with their current employer. While they may have non-competition periods that require an investment by a new agency, their motivation is exactly what most agents are seeking – someone willing to work consistently, grow a book of business for which they expect fair compensation AND some form of equity to support themselves and their families in retirement. Two simple methods exist for those producers, Deferred Compensation and Shadow Stock. Both can be used to sponsor and retain good producers, whether new to the industry or experienced, without giving them real agency ownership until they have proven their value over a long period of time.
Finding producers that fit into the successor category The first rule is never give ownership or equity of a is excruciating. Most of the experienced insurance book of business or the agency to a producer who is agency producers who are available are only available new to the agency and hasn’t shown evidence of his/her because they are not supporting themselves or their long term value. Continued on page 20 current agency. FYI Express Page 18 July 2014
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More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com ACQUIRING AND KEEPING GOOD PRODUCERS Continued from page 18 We have had countless experience as Expert Witnesses in cases which an optimistic owner granted either equity in a producer’s book of business or even agency ownership as an enticement to acquiring a producer the owner hoped would be the agency’s salvation and perpetuation – only to find that the promises weren’t kept and the equity position remained. In the rare occasions that ownership is appropriate for a new entrant to an agency, a contract of at least two years in duration that provides some ownership interest to the producer IF the growth expectation is actually achieved. The participant should have no concern that the ownership potential may not be forthcoming because of the contractual relationship. But the agency owner no longer need be concerned about being the only participant at risk if the situation does not mature as expected. Regardless, we NEVER recommend equity in only the book of business generated by the producer for the agency. It is ALWAYS our position that the business brought to an agency through the efforts of an employed producer belongs to the agency. By agreeing to an equity position for a producer, you are yielding the possibility that the producer’s efforts could be separated from the agency’s owned business. No one has ever suggested that the future purchases of an appliance store client belong to the salesman who first sold them a refrigerator. Future purchases BELONG to the store and the commissions for those purchases belong to the salesperson who sells the products to the store customer. The customer is the store’s customer, not the salesman’s customer. If all agencies treated their books of business in that way there would be little need for litigation if a producer leaves and tries to steal customers and the confidential data produced on those customers by the agency. The second reason we don’t recommend granting equity in a producer’s book of business is that you are trying to get everyone in the agency concerned with the growth, retention and profitability of the agency. Equity in a book of business naturally inclines the producer to be concerned first (and sometimes ONLY) with the book of business in which the producer has an equity position. They will certainly use the agency’s assets to support them and their customers, but will assume the customers to be “theirs”. However, the trail to agency ownership and success often lies with young or experienced producers who first build a substantial book of business for the agency and then become more valuable to the agency in its growth and progression than simply through their sales. FYI Express
The Second Rule is to make sure a producer validates sufficiently to support himself before ANY consideration of extending long term compensation and other benefits to him/her. The validation level must be at the discretion of the agency owner. Some agencies are satisfied with producers who have achieved $100,000 or $200,000 of agency revenue before they are considered sufficiently valuable to be giving retention incentives. Others look for producers to break into six digit earnings (taking commission compensation above $100,000) before being considered valuable enough to warrant retention programs. Deferred Compensation – the first level of retention program. In a deferred compensation program, the producer is told that for every dollar generated by him, a percentage will become a deferred liability to the agency, payable to the producer upon retirement (from the business of insurance), death or disability, or, minimally, upon achievement of a time period in the agency (usually at least ten years). At the triggering event payments will begin over a stated period of time to add to the producer’s other benefits. This program is good for pure producers and for producers who are pretty much concerned only with their task of selling insurance. There are many producers who are good at what they do and will never have (nor want) ownership or management involvement. The deferred compensation program is designed for them because they know that they are working toward retirement and this builds their value. The key to a deferred compensation program is to specifically indicate that this only applies if they remain employed by the agency through the triggering event. If they leave early for any reason, the deferred compensation agreement terminates without benefit. As you can imagine, the longer the producer is in place and the more successful (s) he becomes, the greater the loss if they leave early. Shadow Stock – on the path to ownership The second level of Retention Program is Shadow Stock, a side agreement between the agency and a producers that promises the producer an equivalent value to a percentage of ownership if the producer dies, becomes disabled or retires from the business of insurance – or if the agency is sold before another triggering event. The appropriate time to use this retention tool is when a producer becomes sufficiently successful to have an impact on agency value if (s) he leaves. Shadow Stock has no impact on agency ownership since it is a side agreement, not a real ownership position.
Page 20
Continued on page 22 July 2014
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More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com ACQUIRING AND KEEPING GOOD PRODUCERS
SOFTWARE SALES EXECUTIVE (ROSWELL, GA)
Continued from page 20
Advanced Insurance Systems, Inc. is looking for an experienced and self-motivated professional who will manage our existing clients and acquire new clients through prospecting and conversion of leads into sales. This position enjoys a high degree of autonomy and reports directly to the CEO.
However, it is used to create a sense of ownership and to determine whether that producer can be as concerned with overall agency growth, retention, profitability and value as the producer has been concerned about personal production. The third level of Retention is actual granting of stock through stock sales or stock options for producers who have evidenced the desire and capability of becoming the next agency owners. Each level of Retention Program, Deferred Compensation, Shadow Stock can be upgraded for the lucky producer who comes into an agency, builds a strong book of business on behalf of the agency, becomes a valued asset whose loss would impact agency value and, finally, becomes worthy of being a part of the agency’s ownership and succession plan. Please call Agency Consulting Group, Inc. (856 779 2430) to discuss how to establish one or more of these retention programs within your agency to attract new producers, to motivate continued growth of existing producers and to retain successful producers and agency perpetuators who will be constantly accosted by your competitors with offers of “greener pastures.”
Opportunity Knocking
RESPONSIBILITIES: Prospecting & Selling Responsible for selling our insurance billing software application including web portal and cloud services Provide sales demonstrations to qualified accounts Client Communication Communicate with new and existing clients to verify satisfaction with products/service purchased Escalate client issues/concerns to management Software Support Provide technical assistance and help-desk service to clients Install our software and debug issues SKILLS REQUIRED: Four-year college degree preferred Three years' software sales experience Insurance experience preferred (property and casualty)
Hello all, We are searching for an entry level person who is interested in a new career. This individual should possess a good work ethic and basic office skills. We can teach them about insurance. If you know of anyone, please have them send their resume to me at cappi@foster-associates.com. Thank you very much for your time. Cappi Arneson Foster & Witmer 911 Duluth Hwy Ste D-1 Lawrenceville, GA 30043
FYI Express Cares! Unemployed Insurance Professionals may attend Insurance Expo 2014 with my compliments. Bring your resumes, attend as many CE seminars as you wish, enjoy the Thursday night Poolside Party, Hospitality Suites and Trade Shows. Free registration at www.FYIExpress.com.
FYI Express
Familiarity with ODBC, Microsoft SQL Server (backup, restore, basic inquiries), browsing to user folders on a Terminal Server, Win7 and Win8 environments Working knowledge of Microsoft Office Familiarity with Sales Force software preferred Strong verbal and presentation skills Self-starter Excellent time management skills Strong writing skills (emails, letters, RFPs ) We offer a competitive compensation package (salary and commission). For confidential consideration, please only fax your resume and phone number to 877-2910303. We are an equal opportunity employer. Arthur Waters, CEO of Advanced Insurance Systems, Inc. will be attending Commissioner Hudgens’ presentation at 1:00 p.m. on Thursday at Insurance Expo 2014. Bring your resume, meet Art, earn 3 hours Free CE and tour the Trade Show compliments of Advanced Insurance Systems, Inc. Page 22
July 2014
More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com HUDGENS: GWINNETT COUNTY COUPLE ARRESTED ON INSURANCE FRAUD CHARGES
The Next Big Deal: 3 hours FREE CE
Atlanta – Insurance Commissioner Ralph Hudgens today announced that warrants have been issued for the arrest of a Gwinnett County insurance agent and her husband on multiple counts of insurance fraud.
Friday at 1:00 at Insurance Expo 2014 Sponsored by Insurance House Do you have a crystal ball? Even if you did, would you be ready for the “Next Big Deal”? You are invited to share your ideas and listen to our industry’s experts as we predict the areas in which your agency should maximize the opportunities. Immigration Reform Cyber Liability sSignatures & Virtual Insurance Agencies
Insurance agent Cynthia Dunn, 48, is facing charges of one count of insurance fraud, one count of forgery, and one count of misappropriation of premiums. Ronald Alan Dunn, 53, who is not a licensed agent, will be charged with seven counts of insurance fraud, three counts of forgery, two counts of identity fraud, and three counts of violating state licensing requirements. An investigation by Hudgens’ Fraud Division revealed that the suspects who own Dunn Right Insurance Agency in Loganville, Ga., kept premium payments made to them by three area businesses and created fraudulent Certificates of Insurance, leading their clients to believe that actual insurance coverage was in place. The businesses were seeking to obtain Workers Compensation and General Liability Insurance. “An investigation into the business practices of Dunn Right Insurance Agency has been conducted over the past several months,” Hudgens said. “Cynthia and Ronald Dunn are alleged to have defrauded at least $31,000 from their clients. This fraudulent activity exposed their victims and the public to potentially uncovered losses.” Disciplinary action against Cynthia Dunn’s license to sell insurance is under review. The case will be prosecuted by the Walton County District Attorney's office. Hudgens urges consumers who may have conducted insurance business with Dunn Right Insurance Agency to contact the insurance company listed on their policy to be sure they have the coverage they paid for. If there is some doubt about your coverage, call Hudgens’ Consumer Services Division at 404-656-2070. Phone lines are open from 8 a.m. to 6 p.m., Monday through Friday.
Obamacare 2015 The registration process for agents and brokers in the Federally-facilitated Marketplaces (FFM) is now live for the 2015 plan year! You can begin by accessing Part I (training, exams, and the FFM Agreements) on the Medicare Learning Network® (MLN) at https://Marketplace.MedicareLearningNetworkLMS.com. Below are the 5 tips that we hope they will help to ensure a successful registration experience for the 2015 plan year! #1—Any agent or broker who wishes to facilitate FFM enrollments for the 2015 plan year must complete Part I on the MLN website again, for the 2015 plan year. #2—If you have already successfully completed Part II, you don’t need to do Part II again this year. #3—If you successfully registered last year, use the same MLN user ID when you complete Part I again for plan year 2015. (This will best enable our systems to recognize you as the same user from last year.) #4—Make sure your NPN is correct in your MLN profile before you complete Part I this year. #5—Finish Part I before September 30, 2014. (You are not required to finish Part I before September 30, 2014, but we highly recommend that you do so, to ensure there is no lapse in your FFM registration status.) Remember that there is an array of supporting materials for you on our webpage: http://www.cms.gov/cciio/programs-andinitiatives/health-insurance-marketplaces/a-bresources.html, under the section titled “Registration for the Federally-facilitated Marketplace (FFM) for the individual market and the Federally-facilitated Small Business Health Options Program (FF-SHOP).”
Insurance fraud is a felony with a penalty of two to 10 years in prison and/or a fine of up to $10,000. FYI Express
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July 2014
www.underwritersinsider.com
9
More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com
17 Terrific Networking Tips by Emily Huling, CIC, CMC Networking should play a big part in your overall personal development and career plan. Why? Networking demonstrates your commitment to your industry and your clients. Networking gives you the most exposure for the time spent. Networking sows the seeds for long-term friendship and business relationships. Networking exposes you to peers who have similar aspirations. Networking enables you to connect colleagues who don't know each other. Here's a short course for effective and constructive networking:
12. Remember names. Say the person’s name when introduced. 13. Be curious about the other person. Ask questions. Those that are interested are interesting. 14. Jot down relevant information on the back of their business cards (or yours if they forgot theirs). Transfer that information to your electronic format later. 15. If you have to eat, eat early so you can concentrate on the crowd. Avoid alcohol. You are there to work! 16. Stay late. Some of the best connections are made after the crowd thins. 17. Follow up with those you meet with an e-mail or personalized LinkedIn request to stand out and to provide your contact information electronically. Emily Huling, CIC, CMC helps the insurance industry create top-performing sales, service, and leadership organizations. She is the author of Selling from the Inside, Great Service Sells, and Kick Your "But." Visit www.sellingstrategies.com to learn how Emily's programs and materials can benefit your organization. Emily Huling
1. Get involved in the organization by knowing the leaders, volunteering, and going to all the meetings.
Selling Strategies, Inc.
2. Be prepared. Have business cards and pen handy. Keep your cards in one pocket and those you receive in another.
P.O. Box 200 Terrell, NC 28682 Phone: 888-309-8802
3. Practice your 20-second compelling personal commercial that briefly tells people who you are and what you do.
www.sellingstrategies.com
Mobile: 704-516-5114
4. Have a goal. How many new people do you intend to meet and learn about? What’s realistic for that specific event?
#1 Networking Event in 2014
5. Arrive early. Position yourself near the door to meet and greet.
Insurance Expo 2014
6. Wear your name tag on the right. It makes it easier to see both the person and name badge. 7.
Free Afternoon CE
Have a good, strong handshake. It tells a lot.
8. Don’t spend time talking to those you already know. If a longer conversation is needed, schedule a follow-up call. 9.
Free Trade Shows Free Hospitality Suites
Travel solo even if you arrive with a friend.
10. Walk the crowd, work the room. Look at people’s faces and make eye contact.
Free Poolside Party
11. Be approachable. Have a smile on your face. Make sure your posture and stride exude a positive attitude. FYI Express
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July 2014
Celebrating 50 Years
SOUTHERN INSURANCE UNDERWRITERS, INC CMGA
4500 Mansell Road, Alpharetta, Georgia 30022
TF: 800.568.1700 PH: 678.498.4500 FX: 678.498.4600
www.SIUins.com
More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com
Can you ‘cheat’ your way to more customers? Yes, and embracing technology can increase revenue, retention By Michael Jans Let’s look at the good news. For starters, let me share my perspective. With more than 20 years of training, coaching and designing directresponse marketing campaigns, tactics and strategies, I don’t put a lot of stock in people’s opinions.
What agents can do But there’s a glaring, eye-squinting ray of bright news in the recent industry analysis. According to this new analysis, it seems, insurance agents can (almost) “cheat” their way into more customers, more revenue per customer and higher retention. How is that? Let’s look at this revealing research from the standard bearers at J.D. Power, which has identified five ways that consumers interact with the industry: 1.) No interaction 2.) Agent only 3.) Agent who uses emerging technology
Even my own. I prefer to see tests, the answers to tests, real metrics—and proof. If someone says, “That ad has too many words” or “It should have more pictures,” I want proof. Run that split A/B test—that digital marketing makes so easy—and “show me the money.” There’s a reason I’m sharing this: The insurance industry has been under the microscope lately. Several of the major research and consulting firms seem to be thinking this industry is either ripe for disruption or already has been disrupted (and perhaps we haven’t noticed)—and they want to reveal the trends they’ve discovered. Candidly, a lot of what they’ve discovered should be filed under “bad news.” For example: • Eighty percent of new private passenger auto written in 2003 was by local agents. This dropped to 63 percent in 2010. • Roughly, 40 million quote requests were submitted online. Seventy-two percent of those went to GEICO, Progressive Direct and Esurance. • Seven percent of private passenger auto policies were purchased online if the relationship is five years or older. • Twenty-six percent purchased insurance online if the policy is a year. In 2007, the service experience delivered by local agents was the No. 1 driver of customer satisfaction. Now it’s No. 4. GEICO doubled market share (4.8 percent to 9.7 percent) in 10 years. (No other carrier came close. Progressive came in second in that race.) Fifty-one percent of small-business owners declare they are “likely or very likely” to be open to purchasing their commercial insurance online. And on and on …
4.) Agent who uses traditional technology 5.) No agent And, here’s the magic: Whether it was measuring the interactions of the Millennials or the interactions of baby boomers, J.D. Power found the same thing: the Customer Satisfaction Index went up in one critical interaction category: Agents who use emerging technology. According to the 2011 J.D. Power National Auto Insurance Study “emerging technology” is classified as email, smartphone apps, chat and texts. For example, the baby boomers reported an 852 Customer Satisfaction Index rating if they interacted with an agent who used emerging technology. The study also found that as the Customer Satisfaction Index rating went up, the revenue per customer increased as well. What this means is: Those (happy) clients retain at a 95.5 percent. Compare that to the lower Customer Satisfaction Index score of 750; those clients only retain at a (dismal) 82 percent. And, yes, the math on that is easy: an extra $130,000 for every million dollars in your book of business. (And, by the way, that delivers an extra $3,694,595 over the next 10 years.) Those (happy) clients “intend to recommend” the gent to others at a sky-high rate of 63 percent. (That’s not just “like” you or “might recommend if the situation occurs.” They intend to.) Compare that to a meager 29 percent at the lower level of 750. (Want to reduce your customer acquisition costs? Unleash 63 percent of your happy customers on the marketplace!) Those (happy) clients won’t leave— even if your carriers (or the market cycle) throws a serious premium increase at them. Forty-five percent claim they won’t leave “at any price increase.” (Compare that to 21 percent in the lower and middle tiers of customer satisfaction.) Continued on page 30
FYI Express
Page 28
July 2014
More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com
Can you ‘cheat’ your way to more customers? Continued from page 28
The future is now For an agency owner who is serious about marketing; committed to building long-term equity; and somewhere between “bewildered” and “terrified” about changes in consumer behavior, the trove of recent research doesn’t all show, as McKinsey declared, that “there are signs now that the economics of the traditional agent model are beginning to unravel.” Well, on the other hand, perhaps McKinsey was right. If “traditional” means “old school” or “still acting as if it’s the 1990s,” then, for those agents, the end may be near. But, as consumers, industries and technologies change, the savvy entrepreneur changes, too. And, as always, the future belongs to those who embrace it, not to those who deny it. I’d like to end with one observation. Simply installing “emerging technology” in your agency or brokerage is not enough. Scratch the surface and you’ll discover that there are the agents who know what to do with it ... and those who don’t.
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Emerging technology allows you to communicate. It lets you do it efficiently, automatically (almost magically).
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The savvy professional, independent insurance agents consider seriously what they are going to communicate. They think deeply about the core values of their business. They ponder their value proposition. They create a culture of success built on world class sales and service. As a marketing consultant to the industry, many agents include me on their email and text-message list. And, sadly, I get a lot of messages that are irritating or pushy or “value-subtracting.” Just because some marketing consultant says you should touch your clients 17-21 times per year doesn’t mean you should irritate them 17-21 times per year! You should be nurturing, cultivating and delighting them on each and every point of contact. Technology multiplies everything. Use it to multiply value. That’s how you grow your business.
Our Newest Member Benefit Do you write Commercial Lines Insurance? How would you like to have an Excel spreadsheet of Company Names, Addresses, Websites, Social Media, and e-mail addresses (if available) for any specific type of risk you can name? Current members can get the information on up to 200 of these risks within a 30 mile radius. Want to try? Are you a member in Good Standing?
Michael Jans is the CEO and founder of Agency Send your type of commercial risk and zip code Revolution, “the most trusted marketing company in the to eddie@FYIExpress.com. insurance industry.” Get a copy of his white paper, The 2014 State of the Industry: 3 Reasons Insurance Will Never Be the Same for free at www.InsIndustryTrends.com or call (800) 606-0477. To learn more about the services of Agency Revolution visit www.agencyrevolution.com. FYI Express Page 30 July 2014
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How Will Your Ideal Prospects Find You? By Victoria Eden
We played tourists walking the main streets looking at the wares in most every store. A shop for expensive, imported Dutch blue and white ceramics was wedged between one selling inexpensive, gaudy souvenirs and another selling cheap trinkets. As we were leaving, the disgruntled shopkeeper muttered loudly enough for me and other tourists to hear, "Yah, why don't you go to the other stores that sell the cheap stuff made in China"
Do you have enough quality prospects? Agents tell me week after week, "If you put me in front of a prospect, I can sell but I don't know how to generate leads." There are three key points that must be addressed for any lead generation campaign to be effective. Those are (1) Market (who are your target prospects), (2) Message (what to offer and say) and (3) Media (how find them, where to advertise). We are addressing "Media" in this article.
Whoa! Not only does that proprietor need an attitude adjustment, but she had another serious problem she's not even aware of (beyond the obvious mistreatment of shoppers).
To avoid the blurry vision of something held too close for inspection, I will illustrate with examples outside our industry. Hopefully that will make it easier for you to focus on the underlying marketing truth.
What kind of problem does she have? My quick survey of the area revealed a sales-killing marketing problem. Her store is situated badly for foot traffic from her ideal prospects. She gets a brownie point for at least being in a tourist town with the correct theme but evidently, that is not enough. Had she done more research, she would have rented across the street.
Example #1 from Outside Our Industry Recently I hired a landscaper. I knew the project was coming up so I collected ads in the weeks prior. I picked three and asked them to quote. Two were eliminated for reasons unimportant to the subject at hand. The third one, John, shined. I tried negotiating his price lower but it was a no-go. Why? He had so much work he was backlogged! In this down economy, how did he have so much new business pouring in? John is able to find abundant ideal prospect by choosing a publication that reaches the exact audience he wants to do business with. Indeed, that is how I found him. He runs a full page ad in a glossy, direct-mail booklet of advertisements only – no other content. Inside are ads for cabinet refinishing, electricians, plumbers, granite counter tops, landscapers, remodelers, decorators, etc. Nothing would appeal to a renter. The target is homeowners who want to improve their house. He told me his phone rings off the hook when the ad appears. Additionally, his ad was effective because it hit the three key points of a successful message: (1) He has an attractive offer (25% off any service), (2) He has a deadline (Offer expires 9/30) and (3) a headline "Low Priced Tree Service". I could improve the ad but hey, it's good enough that he's booked with jobs when other landscapers are dropping out of the game. Wouldn't you like results like those from your promotions! Example #2 from Outside Our Industry Over spring break I visited Helen, Georgia with my kids. Helen was a swiftly-declining logging town in north Georgia which reinvented itself as a popular Bavarianhamlet-themed destination.
FYI Express
There, she could attract more buyers interested in her wares. She'd be perched among the store selling expensive, collectable German steins (the ornate ones with flip-up pewter lids) and elaborate cuckoo clocks priced $300 to well over a thousand dollars. A tourist visiting those shops would not be stopped dead in their tracks to see a butter dish selling for $35 or serving dishes for two or three hundred dollars each. In fact, the upscale tourist would gravitate toward the high-end stores selling classier merchandise and – this is the important point – spend their money there. How Does It Apply to You? What do those examples have to do with your prospecting? Maybe your knee-jerk reaction is, "Those don't apply to me because I'm not a landscaper or store owner." There you'd be dead-wrong. The fundamentals of good marketing apply to every business, anywhere. IGNORE THEM AT YOUR PERIL! The overall lesson is, make choices for your agency that will put you on the radar of the ideal prospect for your product and service and ignore or avoid all avenues that do not deliver up your targeted audience. That's common sense; however, common sense is not necessarily common place. In the absence of correct marketing knowledge, important choices are made willy-nilly – with dismal results. I do not know what the landscaper pays for that ad but it is obviously worth every dollar because his crew is kept busy with paid jobs.
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July 2014
More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com
How will Your Ideal Prospects find you? Continued from page 32 I do not know how much cheaper the shopkeeper's rent is on that side of the street but she is stepping on dollars to chase nickels because the location doesn't result in foot traffic interested in buying her products. Who are your ideal prospects? The first step to being "found" by your ideal prospect is to define him or her. You must have a clue who you are going to sell to and what you are going to sell to them. Only then can you decide on the correct "media" for an effective lead generation campaign. In fact, until you do that, you'll waste money on stupid advertising that doesn't have a prayer of working. You will wander aimlessly, make blunders and be completely unaware of your misstep -- like the angry shopkeeper with a store on the cheap side of town.
Trying to be everything to everyone means you'll be nothing to nobody. That's an unprofitable marketing position. Paraphrased from Lewis Carroll's Alice in Wonderland, "If you don't know where you are going, any road will take you there." Marketing is not magic. It just takes correct knowledge and thoughtful application. There is money to be made out there. You just have to put a goodenough ad in the media where your ideal prospects looks. Then knock 'em dead with a great presentation, excellent service and a client newsletter to be on the road to sales success – even in this tight economy! Would you like to know how to get more clients easier? Visit www.MoreClientsEasier.com to get $223.55 in exclusive how-to-market publications by mail (NOT just a download!) Just cover shipping and handling.
Could that be the stumbling block halting your progress? Your best prospects are those already searching for a way to fix a problem that you can solve – like the landscaper who put an ad where I was looking for service providers. Don't make it hard to find you. Put an effective advertisement (your message) where your ideal prospect (your market) will look (the media) for an easy transition from stranger to prospect to client. A Recipe for Success This is your 1-2-3 recipe for success: Closely match the media to the market to the message. The degree of alignment or non-alignment will determine the response rate for your lead generation campaign. It is that simple. Juggle, tweak and balance those three factors properly and you'll be rolling in fresh hot leads. Here is a fact that you must grasp to become good at lead generation: There is no "bad" media or avenue of advertising. There is only mis-match between the media choice, the intended audience and the message delivered. Scrutinize your past promotions in this light. If they failed, what components were misaligned? Fix those. If something was a success, what was right and how can you make it righter?
Victoria Eden is the author of How to Get More Clients Easier, How to Supercharge Your Sales, Target Marketing: How to Select and Dominate Your Ideal Niche and Little Know Tips and Tricks for Marketing Financial Products, and two monthly newsletters. She accepts a limited number of speaking engagements at insurance associations, seminars and webinars. Reach her via www.MoreClientsEasier.com/contact1 or by fax at (770)
Never stop testing. If a particular media works, change the message and see if it works better. If a message works, try it in a new media. Warning! Only change one thing at a time so you can accurately know what caused an increase or decrease in response. Your ad doesn't have to be perfect – just good enough. Yes, you should learn the basics of how to craft a good advertisement, your "message" (which I am covering in more detail in this series of articles). But the first question for you to contemplate is "Who is your market?" Only then can you select a media and a message to match that. FYI Express
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July 2014
A tten tion Exp o A ttend e es!
Become a "Secret Agent" Armed with Better Marketing! Complete the Survey below to Get This Book Absolutely FREE!
Hurry! First come, first served! Only 100 copies available! Four Fast Survey Questions 1. What marketing problems worry you most? [ ] I don't know how to get a steady flow of fresh, quality prospects coming in. [ ] I hate wasting money on promotions that don't bring me qualified, interested leads. [ ] I'm sick of spending money on worthless leads that don't convert into sales. [ ] I never want to make another cold call again but I still want to have plenty of interested prospects to talk to. [ ] I'm tired of being viewed as just a sales person, chasing prospects who don't want to be caught. [ ] I want more referrals without begging or saying that silly speech, "One of the ways I get paid is‌."
2. How do you prefer getting marketing programs for your agency? [ ] I prefer buying turn-key, done-for-me programs. (more money/less time) [ ] Show me how to do it then I'll do it for myself . (less money/more time)
3. Right now I get new clients by: (Check all that apply.) [ ] advertising, [ ] buying leads, [ ] referrals, [ ] networking [ ] friends & family [ ] Other
4. My income is [ ] under $100k [ ] over $100k
Instructions: 1. Answer the four survey questions at left.. 2. Complete your FULL contact information below OR staple your business card over the box. 3. Check the item which best describes your role in the insurance industry. 4. Bring this to trade show booth #110 to pick up a copy of this book absolutely FREE! (Hurry, only 100 copies available!) Important: Offer only for agents, principles and vendors to agents. Complete this form or staple your business card here. Name Title Company Address City/State/Zip Phone number Email Address
My role in the insurance industry is: [ ] I am an agency owner/producer [ ] I am a licensed sales rep for an agency. [ ] I am a principle of general agency [ ] I provide products/services to agents [ ] I am a principle of an insurance carrier [ ] I am an employee or CSR [ ] Other __________________________ Trade Fair Booth # 110 Client Creation Systems 770-974-6660 ♌ Victoria Eden
Get $223.55 of how-to-market info, 16 items FREE BY MAIL! (Just cover s&h.)
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Social Media Using social media channels can help you grow your business. Social media not only strengthens your relationship with existing clients, but also enables you to reach new potential clients. Here are some tips to help build your agency brand online. Create multiple streams: Facebook pages aren’t enough anymore. Blogs, Twitter handles, and Flickr accounts, for example, are useful in providing you and your agency with a strong online presence. Manage your social systems: Once you’ve created your channels, share content that displays your knowledge, credibility, and influence. Post consistently and frequently and be sure to interact with others. Social media is not a one-sided communication tool. Share engaging content: Accuracy and facts are important, but content also needs to capture the attention and interest of your followers. Explore different ways of sharing information: video, photography, and stories are just some examples.
Let your personality shine: Add personal touches that reflect you, but keep it professional.
Get mobile in two minutes! You know how frustrating it is ... you go to look up a business website on your smartphone and are unable to find the important information you were looking for - the phone number or address, for example - because the website was too tiny to read. It's more than just a frustrating moment - if it's happening to your customers, it's costing you money. 61 percent of smartphone users (your potential customers!) will click away if they don't find what they are looking for right away. For just $99, FYI’s Mini-Mobile can mobileoptimize your website, with the information most important to your customers front and center - your business phone number, its address and its email address. With a 30-day money back guarantee and a one-time only $99 fee, what do you have lose? Nothing! Other than potential customers who can't access your website, that is!
Monitor feedback and activity: Respond to comments and questions appropriately and in a timely fashion. Make content shareable. FYI Express Page 36
Contact eddie@FYIExpress.com July 2014
More Information about Georgia Insurance Agents Alliance Membership at www.FYIExpress.com 10 ACA Questions Small-Employers Are Asking "The majority of Americans, including many small business owners, are still confused about the health reform legislation," according to agent training and support organization Health Partners America. Here are 10 common FAQs small group clients have about the ACA. Read the rest of the article Can Employers Reimburse Employees For Coverage Purchased On The Exchanges? Benefit broker and lawyer David C. Smith breaks down this question that has been somewhat controversial in the past few months, yet he says has a very clear answer. Read the rest of the article 5 Free Content Tools to Enhance Your Social Media Marketing Are you looking for new ways to grab your fans' attention? When was the last time you changed the way you share news and updates? When you present your content in new, engaging and interactive ways, it stands out in a constant stream of competing information. In.... Read the rest of this article...
Create a QR Code for clients to scan while sittng at your desk. I’ll show you how to do it for free at Insurance Expo 2014.
http://www.socialmediaexaminer.com/show-contenton-social-media/
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Please scan this QR Code with your Smartphone and “Like” FYI Express
July 2014
GIAA Membership has More Advantages! Free Online CE for all employees (15 hours Business Ethics through A.D. Banker) Free Classroom CE for all employees (at various locations around Georgia) Free Mobile Site and QR Code Marketing Program Free registration to GIAA Conference on St. Simons Island, GA
Only $160 per year for one office plus $75.00 for each additional office under common ownership Free Online CE for entire staff Free Classroom CE for entire staff Free Micro-Mobile Site & QR Code Marketing Strategy. Scan this QR Code for a current example. This could be your agency! Free registration to Annual Convention Free Agency’s Online Visibility Report complete with improvement tips If your website looks like this on a Smartphone
It could look like this for Free if you join
Free Disaster Planning Toolkit: At least one in four small businesses that close because of a major disaster never reopen. Here’s a new tool for your agency (& your commercial policyholders).
Free 30 second Agency Promotional Video. Click here to enjoy the one I created for Insurance Expo 2013. This could be your agency’s pictures and products!
Free Customizable Business Forms: These documents are free to download and customize for your own professional use.
Free Small Business Handbook: Everything you need to know to run your business, from equity to employees.
Free Marketing Templates: Sets of templates with a coordinated design including letterhead, envelopes, business cards, brochures, etc.
Free Office Poster Software: Templates to create your own custom office posters, all without any knowledge of design or graphical skills needed.
Free Monthly CSR Online Training using interactive quizzes, videos and worksheets Free Monthly Agency Owner’s Tips ‘n Tools
Free HR Policy & Compliance Guidelines Free “How To” Booklets on Agency Management, Buy / Sell / Evaluate an Independent Agency, Internet Marketing & Social Media
Free Claims Apps for Policyholders Free Agency Valuation Consultation Free Voice to be heard in GA Legislature
Georgia’s Only Virtual Agents Organization Join today at www.Georgia-Agents.com
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This is our automated, yet highly customizable enewsletter to keep your name/brand in front of your contacts, and more importantly, get you in front of their friends and family, people normally two or three degrees away from your reach. Also, here are just a few examples of the many clients we currently help, just to give you a visual, I REALLY like the look of these sites:
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Pay-Per-Click Advertising Aides
http://www.p-ninsurance.com/ http://www.bivonainsurance.com/ - loves using video
Month's Page 39
July 2014