Kentucky IA
September/October 2014
6 Questions that Producers Hesitate to Ask New Prospects Page 11
How to use a drip campaign & auto responder Page 18
Advancing the Value Your Customers Want Page 27
AHHH, KENTUCKY. A WONDERFUL PLACE TO LIVE AND WORK. All of us at KESA are proud to call Kentucky our home and we’re proud to call KESA our workplace home. KESA’s Kentucky roots run deep with 34 years of providing workers’ comp coverage for Kentucky’s employers. All across our beautiful Commonwealth, from the biggest cities to the smallest towns, KESA’s goal is simple - to keep Kentucky’s workforce safe and provide coverage when a workplace injury occurs. We’re proud of the work we do and we’re proud to be a long-standing part of the Commonwealth of Kentucky.
Thank you for partnering with KESA.
Contact us about our SAFETY W.O.R.K.S program at www.kesa.org. 200 Executive Park, Louisville, KY 40207 502.894.8484 | 800.367.5372 | www.kesa.org
2 | www.iiak.org | September/October 2014
What's
Inside
Page 11
On the Cover
11 6 Questions that Producers Hesitate to Ask New Prospects
18 Test the Waters
Learn How to Effectively use a drip campaign and auto responder
Page 18 Page 21
27 The Next Steps for Advancing the Value Your Customers Want
In Every Issue 4 From the Chair
14 Trusted Choice
5 Benefits Spotlight:
21 Technology - NEW
Virtual Risk Consultant
31 Advertiser Index - NEW
7 E&O - NEW
31 Classified Ads
9 Industry Partners The Kentucky IA is the official magazine of the Independent Insurance Agents of Kentucky, and is published bi-monthly. Editorial offices are located at 13265 O’Bannon Station Way, Louisville, Kentucky 40223. Telephone:(502) 245-5432 Email: iiak@iiak.org Fax: (502) 245-5750 The Kentucky IA welcomes all advertising and editorial submissions. Inquiries for advertising, news releases and editorial contributions can be directed to Nikki Petrowski at the editorial office address or via email at npetrowski@iiak.org
10 Education Calendar
31 New Members 31 Social Media Links - NEW
Mission Statement The mission of the Independent Insurance Agents of Kentucky is to be the preeminent advocate for Kentucky Independent Agents and support their businesses and professional development needs.
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Chair
Officers
From the
John Funkhouser, CIC, CWCA Chair, Danville 859.236.5922 Michelle L. Love Chair-Elect, Owensboro 270.926.2806 David M. Houk Vice Chair, Horse Cave 270.286.2724 James D. England, AAI Treasurer, Pikeville 606.437.7361 Stephen R. Kinkade, CPCU, AAI National Director, Leitchf ield 270.259.5465 William S. Latta Immediate Past Chair, Henderson 270.827.3543
Directors Chip Atkins Louisville, 502.585.3600 Jason D. Billington, CIC Murray, 270.753.4751 Allen J. Crawford, CIC, CSRM Somerset, 606.679.6311 Diana G. Hunt, CIC Barbourville, 606.546.4132 Michael G. Johnson, CIC Lexington, 859.233.1461 Aaron LaRue Bardstown, 502.348.0050 Skip McGaw, CIC Madisonville, 270.821.3122 Mark “Ross” Richey, AAI, CWCA Bowling Green, 270.754.4881 Ray A. Robertson, CIC Mt. Sterling, 859.498.3410
Staff Peggy P. Porter President & CEO Crystal Brown Administrative Assistant Katie M. Freshley Education & Events Director Nikki S. Petrowski Communications Director Tara T. Purvis Marketing Director
Aristotle said, “There is only one way to avoid criticism: do nothing, say nothing and be nothing.” Your association cannot be criticized for any of the above, especially during the month of August. Trusted Choice has partnered with Make-A-Wish® nationally and we in Kentucky have joined forces with them. This partnership not only helps to get our brand out to numerous individuals across the Commonwealth, it also helps us to fulfill part of our mission. It just doesn’t get any better than that. In fact, IIAK/Trusted Choice was one of the Presenting sponsors at the Make-AWish® Big Wish Gala on August 1st. I was honored to give the opening remarks at such a worthwhile event. Those in attendance were blessed by the inspirational words of Kinsey Morrison who had a wish granted at age 5. Fast forward 12 years, and this remarkable young lady will be attending Stanford University. She shared the impact her wish had on her and her entire family. President/CEO Peggy Porter and I had the pleasure of attending the National Association of Insurance Commissioners(NAIC) Convention in downtown Louisville the weekend of August 15-17. Among those in attendance was our very own Commissioner Sharon Clark. As Clark continues to go through the chairs of the NAIC, it is evident that we aren’t the only ones who recognize her leadership qualities. We sat in on some interesting sessions during NAIC, the most intriguing to me was a session on “Car Sharing” and “Ride Sharing”. I encourage you to keep these terms in the front of your mind, as they could become a reality in a neighborhood near you. IIAK is doing its part to help promote the efforts of TrustedChoice.com. We have just completed a radio campaign that targeted the entire state and are now launching a digital media ad campaign that starts in September. The ultimate goal for all these endeavers are to drive more traffic to TrustedChoice.com, consumers searching for a quote and finding you! Have you signed up for your Advantage Subscription? If not, what are you waiting for? There is no better way to stretch your membership dollars and be found online than by getting a year’s subscription FREE when you commit to two years! Plus, we now have 3 companies on the rating portal: Safeco, State Auto & Travelers. Sign up today! Respectfully,
Kristie Weyer, CISR Insurance Services Manager
John Funkhouser, CIC, CWCA
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Benefits Spotlight: Virtual Risk Consultant
SLUGGISH SALES? HIGH E&O EXPOSURE? We prescribe the Big I Advantage
®
Virtual Risk Consultant
VRC Facts Active ingredients: Commercial and personal risk assessment tools (Exposure identification surveys and coverage checklists) Coverage reference resources and proposal tools (PF&M, ACORD forms, insurance glossary) Marketing and prospecting tools (Client letter templates and web site content) Use: Use liberally for relief of lethargic agency sales and lack of producer confidence. Dosage: Subscribe annually (or get four years for the price of three). Available online 24/7. Side effects: Dizzying improvement in knowledge and professionalism of agency staff. Inoculation against E&O claims from failing to offer proper coverage or identify customer exposure. Rejuvenated content to market your agency’s services. Warning: Prolonged exposure to VRC will result in agency success.
Available for purchase exclusively to Big “I” members over the counter at www.iiaba.net/VRC. Big I Advantage® Virtual Risk Consultant Powered by Rough Notes
www.iiak.org | September/October 2014 | 5
You’re an independent agent.
Do you trust your pit crew?
The Big “I” Professional Liability Program Protect. Prosper. Prevent. Our risk management resources keep your agency from making common preventable mistakes.
Our superior coverage and expert claims teams are in your corner in the event of a claim.
When you know you have the best E&O protection, you can focus on growing your most important asset–your business.
The Big “I” and Swiss Re are jointly committed to providing IIABA members with leading edge agency E&O products and services. The IIABA and its federation of 51 state associations endorse Swiss Re’s comprehensive professional liability program.
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Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas. Westport is a member of the Swiss Re group of companies and is licensed in all 50 states and the District of Columbia. ©2008 Swiss Re
6 | www.iiak.org | September/October 2014
Potential Claims: Should I Report it to my E&O Carrier? By: Brian Snyder, J.D. The decision whether an insurance agency reports a potential claim to its professional liability carrier brings with it a host of issues to consider. What effect does reporting a potential claim have on my agency’s loss history? How will it affect my agency’s premium? What difference can it make? After all, it is a potential claim. My customer has not hired an attorney or filed a lawsuit against my agency. Am I only creating trouble for my agency by reporting this potential claim?
The customer was outraged by the lack of insurance coverage though it did not take issue with the carrier’s coverage position. Like many business owners, the customer believed that the significant premiums he paid each year entitled him to coverage in the event of a loss regardless of policy language.
The best source to answer this question is the agency’s professional liability policy. The policy requires that an agency report potential claims to its carrier. But apart from that, there are additional, common sense reasons for doing so. The following example highlights those reasons. An agency’s most important and long-term customer owned an engineering business along with numerous commercial buildings. The agency handled all of the customer’s insurance needs obtaining, among other coverages, commercial property coverage. A pipe burst in one of the commercial buildings resulting in over $200,000 in damage. Unfortunately, the building was vacant for several years, a fact not shared by the customer with the agency. As a result, the commercial property coverage placed by the agency contained limitations on coverage for vacant buildings. Even though the agency suspected the carrier would invoke the vacancy provisions of the policy, the agency thought it was best, nevertheless, to report the claim to the carrier. The agency’s suspicions were well-founded as the carrier denied coverage for the property claim because the building was vacant at the time of the loss and was vacant for several years.
The agency was worried about losing its most important customer though it knew it did not breach any duty owed to the customer. After all, the customer never told the agency about the change in the building’s status: from occupied to vacant. And the agency also agreed with the carrier’s coverage position. Faced with an angry customer who was litigious by nature, and a significant uncovered loss, the agency decided to report a potential claim to its professional liability carrier, Westport Insurance Corporation. The Westport claim handler made his initial contact with the agency within 24 hours of the potential claim being received by Westport. After collecting the claim information, the Westport claim
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handler and the agency worked together as a team to develop a strategy focusing on both the customer and the carrier. The customer was assured that the agency would advocate on the customer’s behalf with the carrier in an effort to identify any avenue of recovery for the customer. At the same time, it was explained to the customer that the agency did nothing wrong in placing the property coverage that included vacancy provisions. The customer’s indulgence was sought so that the agency could have time to then discuss the situation with the carrier. A commitment was made to provide frequent updates to the customer. The focus then turned to the carrier. As there was no dispute with the carrier’s coverage position, the Westport claim handler and agency agreed on a twopart strategy that would leverage the agency’s long-term profitable relationship with the carrier, and the customer’s profitable account history. The agency appealed to the carrier using empirical data to prove that the carrier benefited throughout the years by doing business with the agency and the customer. As a result, the carrier agreed to make a business accommodation by paying the customer $100,000 on the uncovered claim. This decision was relayed to the customer. The agency believed that the carrier would contribute more. After further discussions with the Westport claim handler, the agency made an additional appeal to the carrier resulting in an agreement to pay an additional $100,000 bringing the total recovery to $200,000. The agency’s contact with the carrier said that he had never seen a payment of this kind on a loss that was clearly not covered by the policy. The Westport claim handler and the agency had many conversations about not only what to say to the customer and carrier, but how to say it. 8 | www.iiak.org | September/October 2014
Of utmost importance were creating and keeping goodwill with the customer. While not every potential claim is resolved on such favorable terms, this example shows what can be achieved when a thought-out, collaborative approach is taken by an agency and Westport. Without question, had this potential claim not been reported to Westport, the customer would have sued the agency and the carrier, and the agency would have lost it most important customer. The agency may also be concerned about whether the mere reporting of a potential E&O claim will
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LOCAL KNOWLEDGE. PERSONAL SERVICE. “I’m a safety nerd and my license plate proves it – it says “R U SAFE.” I love to find trends policyholders aren’t aware of, then give them a variety of ways we can work together to reduce the losses. It’s fun to see the lightbulbs go on!” Linda Hudson, CSP Loss Control Consultant Midwest Region Kalamazoo, Michigan Now, let’s talk about your business. General liability • Auto • Property • Crime Workers’ compensation • Umbrella Inland marine • Agribusiness • Surety Coverage available in 18 states. © 2014 FCCI
IIAK is proud to acknowledge our Industry Partners (as of 8/26)
PREMIER
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have any adverse underwriting effect on their E&O. Each situation is unique and each carrier is different. Westport will review the facts and circumstances of the individual situation, but as a general rule the mere reporting of a claim does not automatically result in any underwriting action or increase in premium. Because your E&O professional liability policy is claims made, it is imperative that you report any potential claims immediately to your E&O carrier. In fact, Westport recommends that you report them as soon as practicable to ensure that the claim is reported during your policy period so coverage can be determined. In the situation described above, there generally would be no underwriting action taken or premium increase as a result of the potential claim. Not every potential claim will end up with a result like this one, but if you give yourself (and your E&O carrier) the opportunity to resolve things before they develop into something bigger, the probability of a positive outcome increases dramatically. And if you don’t, the possibility is completely gone. By taking steps to report potential claims to Westport early, you may avoid actual claims and maybe even litigation. Brian Snyder, JD, is Assistant Vice President and Claims Specialists with Swiss Re Corporate Solutions. Brian joined the company in 1995 and has worked in several claims departments during that time, and handled insurance agents and brokers professional liability claims since 2001. Prior to joining the company, Brian spent three years as a litigation attorney in Kansas City, Missouri. This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article do not necessarily represent the views of the Swiss Re Group (“Swiss Re”) and/or its subsidiaries and/or management and/or shareholders. Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re Corporate Solution. Copyright 2014 Swiss Re
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Education
E&O - Risk Management Seminar on - sit e IIAK Offices - Louisville c lass! October 9, 2014 • 9 am - 4 pm ____________________________________________________________________________________ ABEN Webcasts - (http://iiak.aben.tv/)
Annuity Basics and Where They Fit October 9 @ 12 pm EDT November 4 @ 12 pm EDT
How Insurance Agents Become Invincible to Lawsuits & Save Thousands in Taxes October 9 @ 2 pm EDT November 4 @ 2 pm EDT
Certificates of Insurance October 9 @ 2 pm EDT November 4 @ 2 pm EDT
Commercial Lines Claims That Cause Problems
Make the Wholesaler Your BFF October 8 @ 10 am EDT November 13 @ 10 am EDT
October 14 @ 10 am EDT
National Flood Insurance
Data Privacy Insurance
October 15 @ 10 am EDT November 10 @ 10 am EDT
October 28 @ 10 am EDT November 13 @ 1 pm EDT
Directors and Officers Liability Insurance October 2 @ 2 pm EDT November 17 @ 2 pm EDT
Estate Planning Basics October 9 @ 2 pm EDT November 4 @ 2 pm EDT
The New Health Age: The Future of Health Care in America October 22 @ 10 am EDT November 26 @ 10 am EDT
Personal Lines Claims That Cause Problems October 22 @ 10 am EDT November 26 @ 10 am EDT
Home Based Business Exposures
Professional Ethics in the Insurance Industry
October 14 @ 2 pm EDT
October 13 @ 2 pm EDT November 20 @ 2 pm EDT
For questions on any of these courses or IIAK’s education program, contact Katie Freshley at kfreshley@iiak.org or call 502-245-5432 10 | www.iiak.org | September/October 2014
6 Questions that Producers Hesitate to Ask New Prospects By: Alan Shulman, CPCU An insurance license is a license to be nosy. The job’s very nature demands that producers ask multiple questions to new business prospects. Yet, too many agents limit their inquiries to formal underwriting topics and shy away from qualifying and other sales queries. The main reason for this is comfort. Questions about property values and payroll are mandatory, while more “self-serving” inquiries are not. Producers need to ask questions, like those below, in order to better qualify their leads and increase the odds of the sale. A person shops for a product or service in response to one of two motivations: needs or wants. If they need what you sell, they are always more amenable to the buying conditions that you establish, as long as they are reasonable. However with wants, only the shopper knows what’s really important to him or her, so they aren’t as committed to the purchase. Price-only shoppers fall into this category. Only they know what premium satisfies their desire to save. In contrast, shoppers who understand the need for, and hence the value of, insurance make better prospects. They are willing to explore their various coverage options, along with watching the bottom line. Plus, many experienced buyers know how to mask the measure of their desire, making it difficult to distinguish whether it’s a need or want situation. The only way for a producer to differentiate one type from the other is to steadfastly ask revealing
questions and to demand answers. So, boldly use your role as the interlocutor to mix “need vs. want” questions in with basic underwriting queries to obtain the desired responses. In mixed economic times, some agents are happy just to have some new business to quote. But that’s all it will be in many cases, just a quote, if the right preliminary questions aren’t asked. In addition to the questions on the app and on checklists, every producer must make sales driven inquiries. Make it clear, from the start that your commercial prospect must answer some revealing questions before your pricing investigation is initiated. Essentially, they have to qualify for the quote. State this as nicely as possible, but remain resolute. The sales-oriented questions that you ask [examples below] are often less intrusive than those required by most commercial lines applications. When a prospect answers your questions, whether hesitatingly or enthusiastically, they are doing their part to move the process forward. However, when the person resists answering anything and offers you only prewritten policy specifications, it’s a common indicator of price shopping. Insist upon at least some answers and end the meeting if they aren’t provided. If you begin to walk away and the prospect gives in, then you are in a much stronger position now and at renewal time. But if you back off and accept the buyer’s terms, yet still somehow end up writing the account, you’ll
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likely face the same showdown next year. So ask yourself, is a testy one-year client good for your business? The 6 Questions The following list of questions may seem obvious, yet they are posed to new commercial prospects less often than you might imagine. Do you routinely ask most of them? You should. The answers assist you in better qualifying your leads and moving the sales process forward.
“In mixed economic times, some agents are happy just to have some new business to quote. But that’s all it will be in many cases, just a quote, if the right preliminary questions aren’t asked.”
1. Why did you agree to meet with me [or accept my phone call / reply to my email or social message]? Busy managers seldom agree to meet with new insurance agents unless they are either unhappy with their current agent, coverages, or carrier and are considering a replacement (need)—or they are simply searching for a better price (want). The frankness of this answer is essential to determining whether or not you should offer a quote. 2. How does your company’s insurance review process work? This question is less personal than the potentially insulting, but more common question, “Are you the insurance decision maker for the firm?” When answered, it allows a producer to learn who makes the buying decision as well as the company’s general approach to the purchase.
3. What do you like the best about your current insurance agent and the job that he (or she) is doing? Be positive. Find out what the incumbent is doing right in the eyes of the buyer. However, if the prospect reveals something of questionable ethics that benefits his business, such as an intentional misclassification, this positive becomes a negative. The natural follow-up question is to ask “What do you like the least about your current insurance program, other than its price?” 4. Who are your main competitors? The answer to this question, or the intentional lack of one, reveals the prospect’s sincerity about doing business with you. When names are provided, 12 | www.iiak.org | September/October 2014
you’ll learn what class the firm places itself in and you may pick up some leads you hadn’t thought of before. If the prospect resists this basic inquiry, the person is unveiling an uncooperative nature, and that bodes poorly for a future relationship.
5. Who are our main competitors other than your current agent? This is a logical follow-up to the above query. Their reply helps you to learn if you are the only other agent invited to quote on their business. If you discover that you are part of a long list of invitees, insist that your written proposal be kept confidential, discuss who uses which carrier, and be certain to ask question #6 [below]. 6. Will you decide “yes or no” immediately after my proposal presentation concludes? Making this request, alone or in concert with other “rules of the game,” potentially eliminates the danger of the long “no.” Delayed decisions allow time for the incumbent or other rivals to undercut your offer. If the buyer won’t agree to this by stating that they’ll have to review your proposal in detail, offer to conduct a side-by-side comparison with any other quote, as part of your presentation. Alan Shulman, CPCU is the publisher of Agency Ideas® newsletter, a creative subscription-only sales and marketing trade publication for growing agencies. He was a successful P&C producer and agency partner in Western New York for 17 years prior to launching his popular newsletter in 1990. His website is www.agencyideas.com.
IT’S THE RIGHT THING TO DO. From left to right: Andy Roe, Katie Roe Weiper, Jim Roe and Patrick Roe
Arlington/Roe. You have our word on it. “Whether you choose Arlington/Roe for our breadth of knowledge, product line diversity, market access or industry know-how, you may be assured we are in business primarily to serve you. We will do our best to earn and keep your trust. You have our word on it.” – James A. Roe, CPCU, ASLI, President
Managing General Agents and Wholesale Insurance Brokers
800.878.9891
•
ArlingtonRoe.com
Aviation | Bonds | Brokerage | Commercial Lines | Farm | Medical Professional | Personal Lines | Professional Liability | Transportation | Workers’ Compensation
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®
®
Make-A-Wish BIG Wish Gala “A Night of Stars” Huge Success The Ohio•Kentucky•Indiana chapter of Make-A-Wish® held their annual BIG Wish® Gala on Friday, August 1 and Independent Insurance Agents of Kentucky, along with UAW Ford were presenting sponsors. After a short cocktail hour followed by a silent auction, BIG Wish® guests were greeted by MC Brent Rogers and our very own John Funkhouser gave the opening remarks. After a delicious gourmet meal, the evening progressed with a moving speech from Kinsey Morrison. Kinsey’s wish to go to Disney World was granted at age 5. After being diagnosed with severe Aplastic anemia, a bone marrow failure disease, in 2002, Kinsey’s future didn’t look promising. However, the now 17 year-old shared her story, concluding that she has “gone from 4 weeks to live to planning the next 4 years at Stanford University” and that “while Make-A-Wish® did not provide the medial treatment that I needed to get back my health and my hair, it gave me back something even more important: my smile and my fighting spirit.” To see Kinsey’s full speech visit our YouTube channel at: www.youtube.com/user/IIAKentucky This event and its activities helped raise over $130,000 for Make-AWish®.
Kendra Funkhouser, Wish Kid Kinsey Morrison and her sisters, Tegan and Jillian, and John Funkhouser.
Did You Know? • Since its alliance began with Make-A-Wish in 2011, Trusted Choice® has collectively raised more than $1.5 million nationwide for Make-A-Wish • From playgrounds, to roller coasters, to trips to Hawaii Trusted Choice is proud to have sponsored wishes for more than 29 children through their annual Facebook “share” campaign in the month of August. • This year, Trusted Choice has committed more than $530,000 to Make-A-Wish
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Debbie and Tim Conder
Jacquelyn and Matt O’Brien
Rick Landberg and Michele Lucas
Bill and Annie Dawson
Allen and Karla Crawford
Jill and Jimmy Blount
Donna and Brian Smith
Nikki Petrowski, Amanda England, & Mickey England
Katie Freshley & Tara Purvis
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Haven’t renewed your IIAK membership?
Time is running out! #1
IIAK strives to be the resource for all your agency’s needs.
What’s NEW for you?
• new website • new agency consulting program • new digital marketing opportunities • new telecom services program • new ABEN webcasts • member pricing on insurance (E&O, health, cyber liability, umbrella, etc.)
We invite you to renew your membership before time runs out. THANK YOU to those who beat the clock!
Renew online at www.iiak.org
16 | www.iiak.org | September/October 2014
IIA Kentucky 7.5x10.pdf
1
8/30/12
10:26 AM
Test the Waters How to Effectively use a drip campaign and auto responder email marketing
Drip, drip, drip. Effective marketing techniques are similar to water torture—both are repetitive yet irregular, and eventually the recipient responds to your call to action (CTA). Part of marketing is getting your message across to your different audiences through different conduits. Placing a single print ad one time isn’t as effective as printing the same or similar ads in the publication month after month. What has recently changed is the technology supporting the ever-changing marketing landscape, especially email coupled with online tools. I’m specifically referring to auto responder and drip campaigns, which are a series of email communications linked together and triggered automatically. For every email marketing campaign, focus on accomplishing two goals: getting your target to open the email and getting him to respond to your CTA. With auto responders, the emails are sent as a result of a recipient triggering a CTA. But not everyone will click links or visit your website, and that’s where drip campaigns really shine.
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By: Rick Gilman, APR, CMP
Drip Campaign Targets There are two reasons why someone won’t engage with you beyond an initial meeting: They don’t need your services, or they don’t know, like or trust you— the three-legged stool imperative to successful sales. Drip campaigns address those issues by regularly keeping your name in front of your prospect without the sales or marketing pitch. Through a series of emails that provide valuable information and education on what interests your prospect, deployed over several months, you demonstrate knowledge, expertise and value. This process helps the prospect get to know, like and trust you because you’re doing this without any strings attached. As every successful entrepreneur and marketing professor knows, the fortune is in the follow up. Pull out every business card you’ve accumulated from past networking events. These are the perfect seeds in which to plant your drip campaign. System Features You’ve probably received drip campaigns from businesses that use services like Constant Contact, MailChimp or iContact. I use a product called officePRO. Your needs may vary, but there are three things to look for in a drip campaign system.
First, find a system that conveys content in a compelling manner, including lots of imagery and multimedia messaging. Second, the system must be able to archive and cluster these emails to structure the drip campaign. Finally, schedule each of these emails to automatically deploy at regular intervals and respond to an activated CTA to stop the campaign. Some of the differences can be seen in the pricing (a la carte, flat fee, subscription). Some systems limit the campaigns you can build before charging extra. Others incorporate lead capture forms and landing pages to support the campaign and the effective creation of a CTA. The system you choose should trigger a followup campaign for prospects who haven’t activated any of your CTAs. This second campaign could be similar to the original, except the intervals should be further apart—quarterly instead of monthly.
Your system must be compliant with the CANSPAM Act laws. It must: • Be permission-based • Include a link in every message to report abuse or unsubscribe • Have a physical address in the message so someone can contact you. Drip campaigns, like water torture, work their magic by being consistent and almost neverending. With marketing campaigns, the idea is to position you and your company as a valuable resource and get the target of the campaign to want to do business. You could say a successful business relationship is one where the prospect becomes a client when he or she is willing to open up to you with his or her secrets from a business needs perspective. Rick Gilman is executive director of the Personal Lines Growth Alliance. This article originally appeared in the National Underwriter and was reprinted with permission.
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Relax...
You’ve offered each of your clients a personal umbrella policy.
Right? It might not be quite as relaxing as a day at the beach, but knowing you’ve done everything in your power to protect the customers who trust you to help them will go a long way towards easing your mind. Offering each and every client an umbrella not only protects those who choose to purchase the coverage. It protects your agency from liability. And it protects your book of business, since studies show that customers who have multiple policies are less likely to move their business elsewhere. As a Big “I” member, you have access to a stand alone personal umbrella program from A+ rated carrier RLI, featuring: Limits up to $5 million available Excess UM/UIM available in all states You can keep your current homeowner/auto insurer New drivers accepted - no age limit on drivers Up to one DWI/DUI per household allowed Auto limits as low as 100/300/50 in certain cases
Competitive, low premiums for increased limits of liability Simple, self-underwriting application that lets you know immediately if the insured is accepted E-signature and credit card payment options Immediate coverage available in all 50 states plus D.C.
So cover your clients... protect your agency... and profit from umbrella sales!
Contact Jennifer Hopper, your RLI Administrator at: Email: jhopper@arlingtonroe.com Tollf Free: (800) 878-9891, ext. 8639 Local Fax: (317) 554-8551 Toll Free Fax: (888) 552-9891
Bring Your Own Device: Opportunities & Risks By: Danielle Johnson What Is BYOD? Many workers today expect the companies they work for to allow them to use their personal mobile devices and personal computers at the office, and/or to provide remote connectivity to the office via personal devices. Technologists dub this trend “BYOD” (bring your own device).
work and data syncing between office and home. Thus, BYOD is significant because employeeowned devices are now accessing company systems and being used for work purposes presenting security and privacy concerns to the employer. Employers see the inherent value in a more mobile, more connected and more productive workforce. Many employees and managers have no problem connecting and addressing work issues after hours and/or on the weekends. It can be considered a motivational strategy. What Are the Security Risks? BYOD mobility offers access to enterprise data, systems and corporate email. Employees can store and process data and connect to networks. While BYOD may be considered necessary and convenient, this type of connectivity can raise significant data security and privacy concerns which lead to potential legal and liability risks.
Why is BYOD Important? Mobile devices — along with their applications and on-the-go Internet access — provide attractive options for speed, connectivity and productivity. Many people wouldn’t think of spending their workday without a Blackberry, iPhone, Android, iPad or other device to access company systems and data. Most important, senior managers want to use these devices and are using their organization’s technology more because of them. Many employees see their own personal devices as superior to those provided by their employers. Employees also tend to believe they are more productive if allowed to use their own devices for
Consider: 1. The device gets lost or stolen with access to company data and systems. 2. The device contracts a virus or has malware installed that can obtain company logins and data from that device. 3. The personal device user — however good his/her intentions are — can in effect be circumventing company security standards. 4. The company cannot control the use of the personal device should the employee allow children or friends to use the device. 5. The employee may use the device to place files in personal applications in the cloud which may not be secure. 6. The employee plugs a mobile device into the USB port of his or her office computer thereby transmitting a virus to the office desktop. www.iiak.org | September/October 2014 | 21
Here are some facts to consider when trying to balance personal device access with security: Employees don’t perceive the risk. Many employees perceive the use of their own devices at work as placing no extra burden on technical support. But dealing with any data or system security issue requires know-how and technical resources.
BYOD FYI
Less than 37%of organizations are “fully aware” of the devices accessing their network. (Source: Ovum)
37% of people haven’t activated their autolock feature (Source: IBM)
Over 70% of mobile professionals will conduct their work on personal smart phones by 2018. (Source: Forrester)
81% of Americans use their personal mobile devices for work. (Source: Gartner) 24% of Americans use their personal mobile devices for work. (Source: Gartner)
80% of BYOD activity is going unmanaged. (Source: Ovum)
Executives perceive the risk, but aren’t fully ready. In August of 2011, a Deloitte webcast poll of more than 1,000 U.S. information technology and business executives found that 28 percent of respondents believe there are unauthorized personal digital assistants (PDAs) and/or tablets connecting to company systems, especially to email servers. About 87 percent of respondents think their systems are at risk for a cyber attack originating from a mobile security lapse, the poll reported. The same poll found 40 percent of respondents are unaware of whether their organizations have strategies or controls to enforce mobile security. Further, it found that only 24 percent of respondents believe that “all devices connecting to my intranet are authorized.” Only 17 percent reported that they monitor for rogue connections. Malware is on the move. Malware that targets 22 | www.iiak.org | September/October 2014
mobile devices is increasing, reported IBM Security Solutions researchers in a fall 2011 whitepaper. Citing an IBM security research report, the whitepaper presented statistics showing that mobile operating systems vulnerabilities tripled from 60 to a projected 180+ from 2009 to 2011. Enterprise systems and mobile systems are catching up with each other. While many corporations have for years allowed Blackberrybased access to email and other company systems, users are now demanding that iPhone/ Android-based smartphones and tablet computers be provided access to these same services. How do you proceed once BYOD is determined necessary? Since there are risks to the mingling of personal devices and work systems, companies must take the lead in assessing and managing the risks so as to safeguard their systems and data. Some simple steps include: 1. Institute a strong written BYOD Policy that is consistent with the organization’s Employee Handbook policies such as the IT Policy and Acceptable Use Policy. 2. Determine which data to protect. 3. Define what devices will be supported. 4. Determine which employees need remote access via personal devices. Do not open BYOD participation beyond those employees that have a strong business reason for mobile access. 5. Define security requirements. 6. Train and educate employees concerning policy and BYOD use. 7. Monitor employee mobile devices for compliance with your organization’s policy. 8. Secure employee’s authorization to “wipe” the employee’s mobile device remotely (restore to the original factory state), as a condition of giving access to any of the business’s systems. 9. Place controls over access to and use of the company’s wireless internet. For example: do not broadcast your wireless SSID, restrict access to employees only using MAC address filtering in the router and invoke WPA 2 on the router.
Security Solutions If an enterprise is allowing employees to use their own mobile devices, the following security measures should be implemented. 1. Require strong phone startup PIN which is at least 6 – 8 characters long. If not supported, use the maximum allowed. Reduce the PIN required timeout setting to no longer than 10 minutes. 2. Require specified encryption and anti-malware software on each device. 3. Require and install mobile tracking software/applications which allow online access to track the location of a lost/stolen phone and the ability to perform a lock/
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scream and/or remote data wipe. Secure employee’s authorization to take these actions on the device if the device is misplaced, lost or stolen, as a condition to giving the employee access to the business’s systems and data. 4. Do not allow “broken”/”rooted”/“jailbroken” devices on your network. These phones have removed limitations installed on the phone by the carrier allowing the user to run apps and files not approved by carriers. This process opens the device up to security risks. 5. Large enterprises monitoring multiple devices and platforms should consider Mobile Device Management (MDM) software. MDM software centrally controls and protects the data and configuration settings for all mobile devices in the network. MDM can also provide a secure document delivery platform and end to end data transmission encryption. The opportunities of BYOD are present — and here to stay. As an analogy, home security is more complex for a bigger house with more entrances and windows. So too is systems security more complicated as smartphones and other remote devices present new entry points to be analyzed and protected. All of the security tips presented here are simply guidelines to aid agencies in diminishing security and privacy risks and managing them. However, none can be guaranteed 100% effective.
to be easy to work with and do quality work.”
Thomas Tobolic Claims Representative
Danielle Johnson is the VP, Director of Information Technology at InsurBanc, which IIABA and the W.R. Berkley Corporation established to assist independent agencies with their specific banking needs. This article reflects the views of the author and should not be construed as an official statement by ACT.
Managing General Agency Since 1920
800.666.5692
jmwilson.com
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Retention Strategy
#12
life insurance sales
“ a life insurance sale can make a customer for life.” lora Buske, eMc national life life sales representative
The more coverages clients have with you, the less likely they are to switch agents. eMc national life is committed to making life sales simple with easy-to-understand products and online services to speed the sales process. it’s just one of the many reasons policyholders Count on EMC®.
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7/11/13 3:38 P
People who run a business know. The most valuable things
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Your customer’s business didn’t grow overnight. It came from years of hard work, confidence in what they could do, and making smart decisions. That’s why an insurance policy from West Bend makes sense. It protects these valuable and hard-earned businesses so your customers can focus on doing what they do best: taking care of children. And as an Official Supplier of The Silver Lining, it’s backed by your knowledge and experience. West Bend. Insurance your customers buy when they can’t afford anything less.
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The Next Steps for Advancing the Value Your Customers Want By: Kordell Norton The South attacked from the north. And the North attacked from the south. What insights from the battle of Gettysburg are there for businesses? Consider some basic principles. Transactions grow up into Transformation As business matures, and competition increases, most products and services become more transactional. Specialized offerings get more competition, which forces everyone to sharpen their pricing, or get some sort of edge. Eventually products become so generic that the market evolves into a “big box store” or morphs into high value offerings. Consider the overrun of Sears by Wal-Mart (transaction) and Nordstrom (transformation). When you want a makeover you do not go to WalMart. You go to Nordstrom’s for your “transformation”. Think ice cream cones.
Staff Ride? What the heck is a Staff Ride? Today a common occurrence is for a group of executives from XYZ Corporation to travel to Gettysburg, Pennsylvania. There they find themselves on a bus with an expert in the Civil war. For the next several days, these executives are transported to the various Gettysburg locations where history is narrated by this expert. Woven through the lessons of the good and bad leadership of this battle, the group is taken through their own leadership challenges in their modern day environment. Discussions occur, similarities debated, plans made while leadership and management are improved. This is a long way from a leadership retreat. It is a major revolution in the traditional day-to-day business, to taking the customer to place where they have not been before. Henry Ford said, “If I had listened to my customers, I would have built a faster horse.”
The grandkids still think soft serve ice cream is great. Not the teenagers. To them, there is something a lot better. They want ice cream, but they also want thousands of choices. The chocolate sprinkles, cherries, Oreo cookie bits and a whole cadre of other choices, all mixed together on a large marble slab that transforms simple ice cream into the Cold Stone Creamery experience. Transformations are the building blocks for Experiences The single serve ice cream cone may cost you a buck. But the Cold Stone Creamery product doubles, triples, or increases the price paid by a factor of 5 or more. It should. It’s a real experience. The single serve is a transaction. It is a generic product that can be purchased at many locations. But that transformation of marble and ice cream is where you take your date for an experience. Today the consumer is pursuing ever more the experience. Consider the following examples: Transaction Single Serve Ice Cream Cone Roller Coaster Starbucks Coffee Association Education Event
Transformational (the experience) Cold Stone Creamery Space Mt. in the Magic Kingdom Sidewalk Cafe in Paris Gettysburg Staff Ride
When Businesses go Experiential People want experiences. They pay big bucks for them because they transform lives quickly and are memorable for a lifetime. The wedding ceremony, graduation, birth of a child and so on. They are anticipated for long periods. Consider the Blue Man Group Concert, those season tickets for your sports team, or a trip to New Orleans or Vegas. They reek of participation. You can watch Guy Fieri on his TV show: Diner, Drive-ins and Dives, or you can make the pilgrimages to the various featured eating locations and relive the magic. Experiences are so powerful we want to share them with others. The wedding invite, the double date, www.iiak.org | September/October 2014 | 27
taking the kids, “now that they are older”, back to Disney World. When your business goes from facilitating the transactions of the sale, to creating customer experiences . . . the businesses of your customers will transform; as will your own organization. Making your efforts more experiential will make sales go up, cost of marketing will decrease, word of mouth buzz will skyrocket, referrals will increase, customer retention improves, and your leadership will grow solid. How do YOU Create a Business Experience? There are hundreds of elements that go into creating an experience like using authority figures, calories, illumination, and eclectic pursuits with smell, taste and touch. A few to consider: Raiment Great experiences require a change of raiment, or clothing. It is the wedding dress, the graduation gown, the sports jersey for the big game. What special clothing is involved with your selling event? Logo’d shirts? One business association has their version of the PGA Green Jacket for their board members, although theirs are red. Are you having a golf tournament? Might you have a prize for best attire, worst attire, most creative, etc.? Sound When one Chamber of Commerce started focusing on outcomes for their members, helping them increase business revenues, they decided to have a theme song. Each of their meetings has the Taking Care of Business rock music playing (Bachman Turner Overdrive to the rescue) in the background as attendees arrive. Liquid Most experiences have some sort of liquid as part of the . . . ah . . . experience. It is the champagne at the wedding, the beer at the graduation. You are going to cruise across the liquid, drink it, surf it, skate across it, partake of it as a sacrament . . . but there will be liquid. Are Business Experiences a must? Generals are always best at fighting the last war. They equip for it. They train for it. But fresh horizons require new tactics. Sears fought against Montgomery Ward. Did they even see WalMart on their radar screen before it was too late? Often we look backward because it is easier than the unknown future. 28 | www.iiak.org | September/October 2014
The future is here and customers are voting with their dollars. They chase down the experience and inhale it to the fullest, like the Super Bowl, a 3-D movie or even a Staff Ride. The experience is the demand of the younger generation and a pleasant surprise for your current business. So are you going to attack from the south, or from the north? Kordell Norton is a Revenue Mechanic who works with organizations who want to increase their sales, improve marketing or grow their membership. He can be reached at www.KordellNorton.com. Kordell will also be speaking our our 118th Annual Convention - we hope to see you there!
Stability. Longevity.
Integrity
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© 2013 SECURA Insurance
Let’s make sure they’re safe at home.
Covering all the bases since 1900 Commercial • Personal • Farm-Ag • Specialty
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Classifieds Acquisitions
Established Louisville agency interested in acquiring insurance agencies in Jefferson and surrounding counties. If you are interested in selling, merging, or need assistance with perpetuation, we would like to talk with you in confidence. Call R. Alex Rankin, CPCU or Steve B. Thompson, CPCU, at Sterling G. Thompson, Co. at 502-585-3277
Looking for Producers
Independent with top best markets looking to expand presence in Jefferson, Oldham or Shelby counties. Wanting Personal lines, Producer or book of business to move or purchase. All arrangements possible, in strict confidence. Please send inquiries to Turner Insurance Agency, 2460 Shelbyville Road, Shelbyville, KY 40065 or call Kurt Turner, CPCU at 502-633-6060.
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Commercial Property/ Casualty Producer/Partner
Louisville Insurance LLC has producer opportunities with flexible compensation plans while offering ownership in book of business produced. Confidentiality provided to all interested parties. Contact Glenn Pike at 502-473-5454 or glenn@louisvilleins.com.
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Young Agents
Producer Wanted
Excellent opportunity for right person. Commissions over 50% to producer. Ownership from day one. Excellent markets and support. Contact Frank, Mutual Underwriters at 502-550-6791 (in strict confidence).
Ad Index Arlington/Roe & Company Bolton & Company EMC Insurance Companies FCCI Guard Insurance J.M. Wilson Kentucky Retail Federation KESA Keystone Insurers Group Motorists Mutual RLI Personal Umbrella Secura Summit Consulting Swiss Re Professional Liability West Bend Mutual Insurance
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For classified ads or to advertise in the Kentucky IA, contact: Nikki Petrowski, Communications Director, 502-245-5432 • npetrowski@iiak.org
IIAK would like to welcome our newest members: Agency Member
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For information regarding IIAK membership, contact: Tara Purvis, Marketing Director 502-245-5432 • tpurvis@iiak.org
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