Kentucky IA - Winter 2019

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What's

Inside

Page 12

Contents

6 House & Senate Committees on Banking and Insurance 7 Thank You 2018 InsurPac Contributors 9 Thank You 2018 KAPAC Contributors

Page 22

12 Convention Highlights 18 Follow the Leader: Reducing E&O Exposure from the top down 22 Aaron LaRue: 2018-19 IIAK Chair 26 2018-2019 Board of Directors 32 Ten Technology Tips to Enhance Your Agency’s Productivity

Page 32 The Kentucky IA is the official magazine of the Independent Insurance Agents of Kentucky, and is published quarterly. Office Address 13265 O’Bannon Station Way, Louisville, Kentucky 40223. Telephone:(502) 245-5432 Email: iiak@iiak.org Fax: (502) 245-5750 All advertising and editorial submissions are welcome. Direct any inquiries and submissions should be directed to Nikki Robins, Communications Director at nrobins@iiak.org

38 Don’t start the New Year with Backlog

In Every Issue 4 From the Chair

30 Education Calendar

5 DOI News

43 Advertiser Index

17 Upcoming Events

43 Classified Ads

21 Industry Partners

43 Social Media Links

Mission Statement The mission of the Independent Insurance Agents of Kentucky is to be the preeminent advocate for Kentucky Independent Agents and support their business and professional development needs.

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Officers Aaron LaRue Chair, Bardstown 502.348.0050 Ray A. Robertson, CIC Chair-Elect, Mt. Sterling 859.498.3410 Kevin T. Desmond Vice Chair, Bellevue 859.491.5100 James D. England, AAI Treasurer, Pikeville 606.437.7361 Stephen R. Kinkade, CPCU, AAI National Director, Leitchfield 270.259.5465 Michael G. Johnson, CIC Immediate Past Chair, Lexington 859.233.1461

Directors Allen J. Crawford, CIC, CSRM Somerset, 606.679.6311 Whitney L. Floyd, CISR Henderson, 270.827.3543 Mark Linkous, CIC Edmonton, 270.432.3491 Barrett H. “Skip” McGaw, II, CIC Madisonville, 270.821.3122 Carolyn Reynolds Richmond, 859.623.8485 Nicholas Rolf Emerging Leader Chair, Ft. Thomas 859.781.0434 Chris J. Wiseman, CIC Bowling Green, 270.781.2020 Laura Yount, CIC, CISR London, 606.878.0100

Staff Tara T. Purvis President & CEO

Chair From the

Happy New Year to Everyone! I hope 2019 has started off with a bang for you, as it has for your association. However, I would be remiss if I didn’t point out that 2018 closed strong for us as we were able to hit both our KAPAC and InsurPac goals for the year. Thank you to everyone who invested in protecting our industry! I’m going to use this opportunity to touch on two things that I talked about in my previous article and at our annual convention. First, the apprenticeship program your association has been developing is in full swing. Several of our pilot agencies have met with local high school administration and students. Some agencies have already completed the interview process with students, made a hire and are implementing the student into their agency operations. As the agencies continue the process, we plan to compile our results and develop a good blueprint for all of our members to use. Among our pilot agencies, the consensus is that the school administrators and teachers are extremely excited about and supportive of this opportunity these students. Early indications show that this apprenticeship has the potential to e a game changer when it comes to bringing mew talent to the IA Channel. Second item hits on my introduction regarding our PACs. In 2018, we had 114 KAPAC investors and 82 InsurPac investors. Our association has 249 members agencies with an estimated 3,000 employees/staff. Hypothetically speaking, if each agency as a whole invested $100 in KAPAC and $100 in InsurPac OR if each employee/staff member contributed $15 total, we would easily surpass our annual goals. In our agencies, we are constantly investing in our staff, training, marketing, technology, etc. All extremely important, BUT what happens (or doesn’t happen) in Frankfort or DC could have a much greater impact on our agencies. To steal a regularly used line from a colleague, “Those relying on a few to carry the water should beware that one day these few may be gone. Then what happens?” I strongly encourage you to make an investment in protecting our livelihood. If you’re not sure how... CALL ME! Here’s to a great 2019 to everyone. We have a great board of directors you will see on page 24. Your staff continues to do a terrific job as well. Mark your calendar for February 13 for Kentucky Agents Legislative Day. Join us in Frankfort for an informative session and meet your legislators. IT DOES MATTER! Thank you,

Amy Good Financial Services Director Katie Hines Membership Services Director Nikki S. Robins Communications Director Kristie Weyer, CISR Insurance Services Director Cassie Young Director of First Impressions

4 | Kentucky IA - Winter 2019

Aaron LaRue


Lower Your Health Care Expenses This New Year

By: John Melvin

This year, make a New Year’s resolution to stay healthy and reduce your health care expenses. I know that sounds like a formidable task but with a few tips, you will be on your way to better health and fewer health care expenses.

Know your numbers

There are five numbers you need to know and manage when it comes to your health: blood pressure, cholesterol (LDL and HDL), blood sugar, and body mass index (BMI). Knowing this information provides a path to improve your health: get these numbers in the ‘acceptable’ range and lower your risk for certain medical issues, like heart disease, stroke, and diabetes. This is especially important in Kentucky where 14.5 percent of the adult population has diabetes and based on CDC estimates, as many as one in three Kentucky adults have prediabetes.

Move

Exercise improves your physical and mental health. You do not have to purchase an expensive gym membership to exercise more and it does not have to be that intense. Walking – whether alone or with friends – is a great way to improve your health and feel better. Make it a daily habit. However, before you start a new exercise routine, be sure to check with your doctor and come up with a plan that works for you.

If you smoke, quit

Adults who smoke are damaging every organ system and will have more health care bills, in the long run, than non-smokers. Quitting tobacco takes time and energy but you can get help. Quit Now Kentucky helps those who want to break the tobacco habit. Call 1-800-QUIT-NOW or visit https://www. quitnowkentucky.org/en-US/.

Get organized.

Keeping track of test results, prescriptions, and other medical information in one place will not only help you make better decisions about your care, but it will also assist doctors and loved ones in case you are unable to advocate for yourself during a medical emergency.

Below is a list of basic information to keep in your health file: • A list of your doctors’ names and their contact information. This will make it easier for your doctors to coordinate with each other if necessary. • Copies of your health insurance cards, Medicare cards and their phone number(s) to verify coverage. • A list of emergency contacts, along with your relationship to each person and their contact information, so that loved ones and/or health care professionals will know who to contact in the event of a medical emergency. • A list of your medications, including dosages, frequency, date started and reason for taking. This will help medical staff avoid adverse interactions. • A list of all surgeries or major medical events and recent test results. • Copies of your health care proxy, advance directives and/or living will. If you don’t have these already, now is the time to fill them out. • A health history of diseases that run in your family.

Make the most of wellness programs and take advantage of any free preventive services that are offered through your insurance provider. We know that preventing disease is less costly than treating one.

You cannot ‘predict’ illness so it is hard to control health care costs, but try these common-sense tips to reduce the burden and feel better every day. For more information, visit the Kentucky Department of Insurance’s consumer information that is available on our website: http://insurance.ky.gov/news/ fpubs.aspx?Div_id=4. From the Kentucky Department of Insurance, Happy New Year!

Lack of relevant health information can make the cost of care more expensive. Centralized medical information can lead to fewer medical mistakes when those involved with your care have your latest health information.

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House & Senate Committees on Banking and Insurance HOUSE COMMITTEE - Chair -

- Vice Chair -

Rep. Bart Rowland* R - Tompkinsville

Rep. Joseph M. Fischer R - Ft. Thomas

- Members Rep. Terri Branham Clark D - Catlettsburg

Rep. Adam Koenig R - Erlanger

Rep. Dean Schamore D - Hardinsburg

Rep. Deanna Frazier R - Madison

Rep. Stan Lee R - Lexington

Rep. Ken Upchurch* R - Monticello

Rep. Jim Gooch, Jr.* R - Providence

Rep. Derek Lewis R - London

Rep. Rob Wiederstein D - Henderson

Rep. Kathy Hinkle D - Louisa

Rep. Michael Meredith R - Oakland

Rep. Dennis Keene D - Wilder

Rep. Sal Santoro R - Florence

SENATE COMMITTEE - Chair -

Sen. Jared Carpenter R - Berea

- Vice Chair -

Sen. Rick Girdler* R - Somerset

- Members Sen. Julie Raque Adams R - Louisville

Sen. Morgan McGarvey D - Louisville

Sen. John Schickel R - Union

Sen. Tom Buford R - Nicholasville

Sen. Dennis Parrett D - Elizabethtown

Sen. Brandon Smith R - Hazard Sen.

Sen. Christian McDaniel R - Taylor Mill

Sen. Albert Robinson R - London

Reginald Thomas D - Lexington

* These legislators are licensed as insurance agents in the state of Kentucky 6 | Kentucky IA - Winter 2019


Thank You 2018 Contributors Tommy Adams Philip Anderton Chip Atkins Joe Barnes George Burks Robert Clarkson Tim Conder Allen Crawford Gary Criscillis Dennis Desmond Kevin Desmond Lisa DeWitt James Downing James England Stuart Ferguson Whitney Floyd Neel Ford Steve Ford John Funkhouser Steve Garrett Virginia Goff Danny Greene Bill Greenwood Jay Hall Eric Harden James Harville

Norm Hatter Mike Hazelwood Mike Hepp Sharon Hill Stephen Hill Katie Hines Miller Hoffman David Houk Diana Hunt John Ison Mike Johnson Bill Kantlehner Steve Kinkade Aaron LaRue Alex LaRue John LaRue Bill Latta Ron LeMaster Mark Linkous Stan Logan Michelle Love Bill McCarty Ryan McCarty Ted McClain Tim Murphy Danny Neely

DONATE EARLY!

Scan the QR code below to help us reach our 2019 goal

Tom Nolan Diana Norwood Sheldon Palefsky Lindsey Pruitt Chandler Purdom Tara Purvis Richard Rankin Carolyn Reynolds Ross Richey Nathan Riedel Keith Riley Ray Robertson Nikki Robins Patrick Roe Nick Rolf

Allen Rudd Donna Schlie Eric Schumacher Nathan Shanks Adam Sheridan Robert Shipp Bill Stiglitz Lisa Switzer Steve Thompson Steve Turner Robert Werner Buddy Wilson Chris Wiseman Danny Yackey Laura Yount

IIAK would like to welcome our newest members: Agency Member

Barnes Insurance Group • Florence CBI Insurance • Louisville Ditsler Insurance • Louisville Jack Roe Agency, Inc. • Morehead

Associate Member The Hartford KRF SIF RT Specialty Group, LLC Selective Insurance

For information regarding IIAK membership, contact Amy Good, Financial Services Director 502-245-5432 • agood@iiak.org Kentucky IA - Winter 2019 | 7


WHY GIVE to KAPAC? TOP 3 REASONS TO GIVE TO KAPAC

1 2

RELATIONSHIPS

Build relationships with the new faces in Kentucky’s legislature and educate them on important insurance issues. KAPAC helps open doors and gain access to our legislators!

COMPETITION

Some of the largest PACs in Kentucky are from groups that often have very different interests than independent agents. A strong KAPAC means we can effectively compete with these powerful PACs when needed!

3

LEGISLATION

Insurance fraud & PIP are some of the significant insurance issues facing Kentucky’s legislature today and tax reform is always on the horizon. Our voice needs to be heard as decisions are made that could have a long-term impact on our industry!

MAKE YOUR CONTRIBUTION ONLINE AT IIAK.ORG/KAPAC

8 | Kentucky IA - Winter 2019


Thank You 2018 Contributors

Tommy Adams Donny Anderson. Philip Anderton Chip Atkins Joe Barnes John Bell Jason Billington Robbie Blain Justin Bruce Bryan Buchanan Brian Burkhead David Clarke Bobby Clarkson Tim Conder Allen Crawford Steve Crawford Gary Criscillis Stephen Crouch Ginny Danner Denny Desmond Kevin Desmond Bob Detherage Lisa DeWitt Mark Dexter Jim Downing Jim England Brad Felts Stuart Ferguson Whitney Floyd James Flynn Neel Ford Steve Ford John Funkhouser Danny Greene

Bill Greenwood Jay Hall Eric Harden Matt Harville Norm Hatter Ann Heidemann Shannon Helm Mike Hepp Sharon Hill Stephen Hill Miller Hoffman Bob Horton David Houk Dennis Houlehan Danny House Tripp Humston Diana Hunt Brett Ison John Ison Susan Jewell Mike Johnson Steve Kinkade Aaron LaRue Alex LaRue Jack LaRue Bill Latta Ronald LeMaster Michelle Love Jennifer Lucas Ryan McCarty Bill McCarty Ted McClain Joe McClain Skip McGaw

Don Mitchell Adam Murphy Tim Murphy Danny Neely Raymond Nelson Diana Norwood Brooks Palmer Chuck Polin Lindsey Pruitt Warren Pulliam Chandler Purdom John Purdom Jared Pursley Tara Purvis Rick Rand Carolyn Reynolds Ross Richey Bob Roberts Ray Robertson Nick Rolf Bart Rowland

Allen Rudd Steve Salmon Debbie Sanford Donna Schlie Nathan Shanks Adam Sheridan Robert Shipp Debbie Strozyk Aimee Stumler Lisa Switzer Carolyn Thomason Kurt Turner Steve Turner Bob Werner Ashley White Buddy Wilson Chris Wiseman Danny Yackey Hope Yager Cassie Young Laura Yount

DONATE EARLY!

Scan the QR code below to help us reach our 2019 goal

Kentucky IA - Winter 2019 | 9


HONORING

Our Past Presidents & Chairs During the second night of the 122nd Annual Convention & Trade Show, IIAK hosted a reception to honor our Past Presidents and Chairs. These men and women represent 40 years of leadership and have decades of experience in our industry from Buddy Wilson who was president in 1988 to Immediate Past Chair Chip Atkins. We are grateful for their service to our association and were happy they were able to join us.

Front Row (L-R): Michael Hepp, David Houk, Sandra Blain, Michelle Love, Tim Conder, John Funkhouser, Bill Latta Back Row (L-R): James England, Buddy Wilson, Steve Kinkade, Chip Atkins, Tommy Adams, Keith Riley, Phillip Hunt, Dennis Desmond

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We know what it took to build this unique business.

And we know what it takes to protect it. Underwriters who know and understand what coverages are necessary for each unique business. Loss prevention professionals who use a hands-on approach to help develop programs tailored to each specialty business. Claim reps with the expertise and technology to process claims quickly and efficiently. As an Official Supplier of the Silver LiningÂŽ, you and West Bend will find a specialized insurance plan for your valued customers. To find out more, talk to your West Bend underwriter.

Celebrating 125 years of valued relationships with our agent partners.


More than 300 attendees joined IIAK at The Omni Hotel in Louisville for the 122nd Annual Convention and Trade Show November 14-16, 2018. This year we shook the schedule up a bit and we are happy to report that it was a hit! Many agents and company representatives began their convention festivities with an afternoon of horse racing at historic Churchill Downs. The 4th race was the Kentucky Trusted Choice Classic and IIABA Chair-Elect, Joe Leahy, was on-hand to present the trophy. Convention officially kicked off Wednesday evening at the Emerging Leader Reception. Outgoing Emerging Leader Chair Danny Neely welcomed the membership and recognized committee members: James Flynn, Chandler Purdom, Danny Yackey, Danny Greene, Eric Harden, Nathan Shanks, Jared Pursley, Nick Rolf, Adam Sheridan, Logan Edelen, Stephen Hill, Tripp Humston, Diana Norwood and Lindsey Pruitt.

A short “getting to know you” video gave a fun insight into the Emerging Leader Committee members. They answered off-the-wall questions including “What is your most used emoji” and “What would you bring with you in a zombie apocalypse.” For the full version, check out our YouTube channel at www.youtube.com/user/IIAKentucky.

12 | Kentucky IA - Winter 2019

Neely updated the membership of the many activities and fundraising efforts the committee accomplished in 2018 and welcomed 2018-19 Emerging Leader Chair, Nick Rolf to the stage. Rolf outlined his plans for the year and Danny Neely was presented with the Michael D. Hepp Outstanding Emerging Leader Award.

After a break for dinner, attendees met back at the Omni for an evening of fun at their speak-easy-themed bowling alley, Pin+Proof. Thursday started bright and early at the Welcome Breakfast and General Session. Chair Mike Johnson introduced your leadership for 2017-2018 and recognized members who finished their terms on the Board of Directors: Danny Neely and Chip Atkins (right). IIABA Chair-Elect Jon Jensen followed, informing us of the newest happenings with IIABA and encouraging members to keep up the good work in supporting state and national PACs. He also challenged the membership to take advantage of the resources made available to them through IIAK and IIABA.


After breakfast, Keynote Speaker David Lau (right) presented “Active Threat Response and Resiliency.” His presentation gave insight to attendees on how to mentally prepare for an active threat in order to come out whole: physically, mentally, emotionally and spiritually. Then, it was time to present the E. Starling Holloway award to honor an individual who has made a significant industry contribution, enhanced the ideals and reputation of the insurance industry and made a significant contribution to their state. In what could be one of the best rouses of all time, Buddy Wilson took the stage to present Jay Hall with the E. Starling Holloway Award. In order to get Jay to PROMISE to attend Convention a team (yes, a team) of people including Jay’s wife, Debbie, and family and IIAK staff told Jay that HE would be presenting an award TO Buddy. While initially at a loss for words, Jay was able to overcome the shock and accept this distinguished award from his dear friend.

Mike Johnson then took to the podium to present Chair Awards to Sandra Blain and Nick Rolf in recognition of their impact on him and the association during his time as Chair.

As with all Conventions, we never leave our guests and spouses without something to do. This year they enjoyed a special on-site wreathmaking class lead by Bridget Davis of Mahonia Studio. These natural wreaths surely held a special place in their homes this holiday season. Meanwhile, your association had a big announcement for lunchtime with a very special guest. IIAK has been making strides in education and career development and has teamed up with the Kentucky Education and Workforce Development Cabinet to give students an avenue to take advantage of opportunity in the insurance industry. IIAK has developed a nationally recognized apprenticeship program and Secretary of the Education and Workforce Development Cabinet, Derrick Ramsey was on-hand to unveil our certificate. There are 10 pilot agencies who will be taking co-op students beginning January 2019. These students will flow right into the apprenticeship program and immediately start a career in insurance. Pilot agencies include: • The Limestone Agency, Mount Sterling • Reed Brothers Insurance Services, Somerset • Hall & Clark Insurance Agency, Prestonsburg • Mountain Valley Insurance, London • Kinkade-Cornell Insurance Agency, Leitchfield • E.M. Ford & Company, Owensboro • Hyland Insurance Agency, Louisville • Al Torstrick Insurance Agency, Lexington • LaRue-Carey Insurance Group, Bardstown • Neely & Wade Insurance Agency, Winchester

The next presentation was from Make-A-Wish®, the chosen philanthropy for Trusted Choice. This year Trusted Choice has committed more than $412,000 to the foundation and more specifically $10,000 to the Kentucky Chapter. Kentucky Regional Director and “wish dad” Kevin Lerme shared the positive impact that granting wishes has on children with life-threatening illnesses. More than $986 was raised that morning for the charity, and as with all the money raised in Kentucky, it will stay in the state to grant more wishes. If you would like to donate to the Kentucky chapter of Make-A-Wish, please contact Lisa Reeves at lisar@makeawishky.org.

Kentucky IA - Winter 2019 | 13


Mary Taylor from the Kentucky Department of Education (left) followed this presentation with a deeper look at apprenticeships and how they work in Kentucky. After lunch, the Commonwealth Ballroom buzzed with excited exhibitors and attendees for a newly extended Trade Show. But the excitement didn’t stop there - it was time for the much-anticipated Silent Auction and Wine & Bourbon Toss. A $20 donation to the Kentucky Agents Foundation awarded participants 3 tosses in hopes that their ring would land them a bottle of their favorite spirit. While some remained thirsty, we had some definite ringers! The 26 silent auction items and ring toss were able to raise more than $9,800 for Kentucky Agents Foundation. A huge thank you to the Emerging Leaders Committee and everyone who participated! Next was the Leadership Dinner which opened with a moment of silence for a special member we lost this year, R.C. Riley (left). R.C. Riley served this industry, his clients and our association with integrity. His career included many notable achievements, including IIAK Board President in 1978-79, named 1979’s Insuror of the Year and IIABA President 1991. He was honored with National’s highest award, the Woodworth Memorial Award, citing his distinguished service. Then began the ceremonial “Passing of the Gavel”, which recognizes past association Presidents and Chairs in attendance, and the swearing in of new leadership. Aaron LaRue of LaRueCarey Insurance Group in Bardstown was inducted as our newest Chair. Installed alongside LaRue were Ray Robertson, CIC of Limestone Agency, Inc. in Mt. Sterling as Chair-Elect and Kevin Desmond of Desmond Brothers, Inc. in Bellevue as Vice Chair. Mark Linkous of 14 | Kentucky IA - Winter 2019 Glass & Thompson Insurance

in Edmonton, Carolyn Reynolds of Reynolds Insurance Agency in Richmond, and Nick Rolf of Gross Insurance Agency in Ft. Thomas were also appointed as members of the 2018-2019 Board of Directors. After officially being handed the gavel, LaRue addressed attendees with his plans for his year as Chair. (Turn to page 20 to get to know Aaron a little better!) And as if that weren’t enough, attendees headed to the Liberty Mutual/Safeco Dessert Reception for some sweet treats!

Friday morning began with a Legislative Breakfast. Nathan Riedel (above, left), IIABA’s Vice President of Political Affairs updated the membership on the NFIP extension and Farm Bill. Dustin Miller (above, right) of Government Strategies, LLC then took the stage to delve into recent election results and the future of Kentucky’s political landscape. Convention officially wrapped up with Brent Kelly’s (right) presentation, The Vital Few. This highenergy presentation left attendees with success routines to maximize their performance and practical steps on how to bring back the joy to their business and life. Of course, none of this would have been possible without the help and support of our Industry Partners. Thank you to all attendees, company representatives and all of our generous sponsors.


THANK YOU TRADE SHOW EXHIBITORS ABA Insurance Services AFCO Agency Revolution Amerisafe AmWins Anthem Arlington/Roe Berkshire Bolton Burns & Wilcox Capital Premium Financing Columbia Insurance Commercial Sector Insurance Brokers EKU First Call Free Legal HIIG ICW Group

IIAK Marketing Table IPFS Irwin Siegel J.M. Wilson KEMI KY DOI KY Registered Apprenticeship/Track KY Retail Fed Leavitt Market Finders Insurance Orion Networks Penn Lumber Mutual Prime Insurance Progressive RPS RT Specialty

Safeco/Liberty Mutual Safelite Auto Glass Schooley Mitchell Service Guarantee Servpro of KY Solepro State Auto The Hartford Titan Web Travelers Trusted Choice United Home United Mail WAHVE Westfield Westport/SwissRe Women Leaders in Insurance

Kentucky IA - Winter 2019 | 15


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Agents Legislative Day February 13 Capitol Annex - Frankfort

CRM: Practice of Risk Management February 20-22 Hilton Garden Inn Northeast - Louisville

Road Shows April & May Somerset - Lexington - Owensboro - KDV - NKY - Louisville

Leadership Conference June 12 & 13 Holiday Inn University Plaza - Bowling Green

123rd Annual Convention & Trade Show November 20-22 Omni Hotel - Louisville

Kentucky IA - Winter 2019 | 17


Follow the Leader:

Reducing E&O Exposure from the top down By: Mark Heimsoth

Most of us think we have a pretty good idea of what a good leader looks like in action. We may be hard pressed to define “leadership,” but we’re proud members of the “I know it when I see it” school of thought. That’s OK. Sometimes it takes a rocket scientist to put their finger on the painfully obvious, such as when Albert Einstein said, “Setting an example is not the main means of influencing others, it is the only means.” If you want the next generation of your agency to find the path to success, you’ll need to let your example show the way. Good habits can take many forms, but a survey of Swiss Re Corporate Solutions claims handlers highlighted five that can help reduce or prevent errors & omissions claims: Standard operating procedures. Effective E&O prevention depends on written standard operating procedures, as well as written minimum standards for writing and servicing business. There should be a written procedure for every workflow in the agency: new business, renewals, rewrites, policy changes, claims handling and cancellations, just to name a few. Put SOPs in place and make it clear that everyone needs to follow the rules — including you.

18 | Kentucky IA - Winter 2019

Education. Everyone at the agency should participate in ongoing and meaningful continuing education, both to strengthen their knowledge of insurance products and to develop inhouse expertise about things like the agency management system—and they should see you sitting front and center, taking notes. Documentation. Good documentation can save an agency in a bad situation. But to be effective, it needs to be timely, detailed and easy to understand. All documentation should be kept in the same place and readily accessible to everyone who works with the account. Consistency. Improvisation is great for comedians, but bad for insurance agencies. If your agency finds that a particular process works, do it consistently, and incorporate it into a mandatory checklist. For example, if you follow up with a client when their premium payment is due or past due, you’ve arguably created a duty to follow up every time there is a similar situation. Self-audit. Doing a self-audit will reveal both the good and the bad—where your agency’s procedures are working, as well as the areas that need renewed focus internally and through continuing education.


Review procedures, forms and documents and conduct an overview with key managers or supervisors. No one at the agency should be exempt from the audit—we all make mistakes, and we can all use them as learning experiences. Equally important: Listen to every voice when it comes to making improvements. Every employee should feel that their insights are valued. Sometimes it takes a fresh set of eyes to see an old problem. Mark Heimsoth is an assistant vice president, claims specialist with Swiss Re Corporate Solutions and works out of the office in Overland Park, Kansas. Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re. Copyright © 2018, Big “I” Advantage, Inc. and Westport Insurance Corporation. All rights reserved. No part of this material may be used or reproduced in any manner without the prior written permission from Big “I” Advantage. For permission or further information, contact Agency E&O Risk Manager, 127 South Peyton Street, Alexandria, VA 22314 or email at info@iiaba.net. This article is not intended to provide specific advice about individual legal, business, or other questions. It was prepared solely for general informational purposes, and is not a recommendation that a particular course of action be followed. If specific legal or other expert advice is required or desired, the services of an appropriate, competent professional, such as an attorney or accountant, should be sought.

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AARON LARUE 2018-19 IIAK Chair

Aaron LaRue was already a busy man before taking on his latest role as IIAK’s chair. He had just finished speaking at the inaugural career fair at Bardstown High School on the morning of this interview. While he didn’t see himself being an insurance agent in his youth, despite growing up (literally) in the industry, his passion for insurance and the independent agency system is evident and even got this admitted insurance novice thinking about getting my license after seeing how passionate and impactful one agent can be.

Congratulations on being Chair. So tell me, how did you get started in insurance? I worked for a monument company in Elizabethtown engraving tombstones and when the company switched ownership I knew I needed a career change. I went to my dad’s office in Hodgenville and asked him if I could really make a living selling insurance, which looking back now was a silly question to ask since he’d supported our family my entire life by doing just that. I don’t know why insurance never occurred to me as a career until that time. I actually went to school two blocks away from the office at Our Lady of Mercy Elementary School from first to sixth grade. Every afternoon I would walk there and hang out after school for a few hours. But I am definitely where I’m supposed to be. 22 | Kentucky IA - Winter 2019

By:Nikki Robins

Tell me about your agency My grandfather worked as an accountant in the Army and when he got out he started his own practice in Hodgenville in the 1950s. He took on a partner to do insurance and then my dad got involved in the mid-70s. In 1994, they sold the accounting practice and dad went 100% insurance. Our second location opened here in Bardstown in 2006. Carey insurance was a completely different agency that started in 2012. When we found ourselves competing against each other, especially on commercial accounts, we began to think it might be best to pool our resources and merge officially January 1, 2016.

How did you get started in IIAK? We have been members of IIAK for as long as I can remember. But when I joined the agency dad encouraged me to go to Young Agent events because he knew it would help me in my career. Even though at the time we were only a two person shop - I made 3 - he knew that my time out of the office would be worthwhile to meet other young people in the business.


If you had to pick your favorite benefit of being a member of IIAK, what would it be? Aside from the social aspect, probably the ability to pick up a significant amount of knowledge on everything from running an agency to what is going on in our industry whether it is carriers, state trends or legislative issues. IIAK is my lifeline to know what is going on. There is a lot of stuff that goes on in Frankfort that I wouldn’t have a clue about without the association keeping me informed and updated. So, you were presenting next to a captive agent this morning at the job fair. Could you ever be a captive agent? No, I could never be a captive agent. There are so many limitations to what you can do. We have a number of personal lines and commercial lines carriers to find the best fit for our clients. There is no monotony in the independent agency system. There is no typical day. That’s one of the best things about being an independent agent. In one week I could be dealing with a claim, making sales presentations, working on marketing materials or changing light bulbs! What would be your “elevator speech” to not only get someone into insurance, but into the independent insurance channel? If you want the potential to help people while making a nice living then this is the career for you. There’s never a dull moment, you get to work with great people and have flexibility when you need it.

What are some challenges that you have faced? Making sure that the staff and employees are properly trained and they have all the tools they need to be successful. If they are successful, then the agency is successful. There’s a lot of competition out there, so acquiring new business is always a challenge. How do you feel about the future of the industry as a whole? I still see the independent agency channel having a big role in individual and business operations. You can buy insurance off a shelf, but you don’t necessarily know what you’re getting. You’re not getting someone to advise you on what is right or wrong for your life and being there for someone after they’ve had the worst day of their life and need to file a claim. Those are the things that really matter and can’t be done by calling a 800 number. What do you find most fulfilling about being an insurance agent? Nobody likes to talk about insurance or buy it. It’s up to us to plan for the unthinkable. But it’s a great feeling to tell someone “we’ve planned for this and taken these steps to get you back to where you were before this happened.”

Kentucky IA - Winter 2019 | 23


What do you like most and least about your day-to-day? I have the same answer for both: email. It’s so useful, but there’s just SO MUCH of it. Do you have a personal mantra, or any words you try to live your life by? In the words of Spike Lee, “Do the Right Thing!” But all joking aside, that’s really it: do the right thing by your clients and by your staff and the rest will work itself out. How are you involved in your local community? I coach basketball and little league baseball. I used to coach soccer, but then my daughter, Audrey advanced passed my skill and knowledge level! Our family is involved in boosters for cross country, soccer and track, as well as church. How do you strike a balance between work and family life? At this point in my life, I just go. I like to stay busy. If I’m at home on a Saturday with nothing to do I’m just lost. Being in this career lends itself to that balance. If I need to leave early to go to a school or church function, I can do that. I may come in at 6 in the morning or work from home some days, but there is a flexibility that I couldn’t have anywhere else. I also have a great staff in place which makes it even easier and I try to return the favor when they have something come up. I tell them “family comes first and work will be here when you get back.” Tell me about your family. Tanya and I have been married for a little over 16 years. Our daughter, Audrey is 14 (going on 21) and a freshman at Nelson County High School and our son Clay, is in 5th grade at Foster Heights Elementary School is Bardstown. My mom and dad still live close by in Hodgenville. Dad still runs the agency at our original location and mom is the administrator for the Lincoln Museum. My brother, Jack also works at our Hodgenville location and my sister, Alice is in her first year of teaching 5th grade at Campbellsville Elementary School.

What about hobbies or personal interests, where do those fit in? I honestly love being involved and attending our children’s sporting events. I’m not an avid golfer, but there are several tournaments that I make sure to play in every year. What is something that people would be surprised to discover about you? I was originally supposed to go into the Nuclear Power program in the US Navy out of high school. Is that what you wanted to do when you were little? Be in the Navy? No, that idea didn’t come until closer to high school. I didn’t have any idea what I wanted to do when I was a kid. Probably be a professional baseball player since I was never big enough for football or tall enough for basketball. When it’s all said and done, what do you hope IIAK members take away from your time as chair? Well, first and foremost that I didn’t screw anything up! But I hope we continue to grow and build on projects like the apprenticeship program. Granted, I know that I won’t be able to take credit for that, as the IIAK staff and Department of Education have lead the way. But it is an honor to be a part of this exciting time in our association during my year as chair. Ok, lightning round! What is your favorite: Food - Hot wings Drink - Mt Dew or a cold Miller Light Color - Blue Music - I like all 90s Alternative TV Show - Seinfield or This is Us Movie - Snatch Thank You Aaron and good luck this year as our Chairman. I know you’ll do great things for our association. Nikki Robins is IIAK’s Communications Director and can be reached at 502-245-5432 or nrobins@iiak.org

24 | Kentucky IA - Winter 2019


Doing The Right Thing Since 1964

James A. Roe, CPCU, ASLI President

Our people will earn your trust. Our service will keep it. We understand the needs of today’s independent agents, so we offer more than a diverse line of product offerings. We have personable experts who will work seamlessly with your team to meet the needs of your customers, where and when you need it. When you want service that exceeds your expectations, we’re ready.

Let us help you find the right solutions. ®

800.878.9891 ArlingtonRoe.com Aviation | Bonds | Brokerage | Commercial Lines | Farm | Medical Professional Personal Lines | Professional Liability | Transportation | Workers’ Compensation


BOARD OF DIRECTORS

2018 - 2019 IIAK

26 | Kentucky IA - Winter 2019

Chair AARON LARUE

LaRue-Carey Insurance Group LLC Bardstown Phone: 502-348-0050 Email: aaron@larueinsurance.net

Immediate Past Chair MICHAEL G. JOHNSON, CIC Al Torstrick Insurance Agency, Inc. Lexington Phone: 859-233-1461 Email: mjohnson@altorstrick.com


Chair-Elect

Vice Chair

RAY A. ROBERTSON, CIC

KEVIN T. DESMOND

Treasurer

National Director

JAMES D. ENGLAND, AAI

STEPHEN R. KINKADE, CPCU, AAI

Limestone Agency, Inc Mt. Sterling Phone: 859-498-3410 Email: ray.robertson@limestoneagency.com

Peoples Insurance Agency Pikeville Phone: 606-437-7361 Email: james.england@pebo.com

Desmond Brothers, Inc. Bellevue Phone: 859-491-5199 Email: kevin.desmond@desmondinsurance.com

Kinkade-Cornell Insurance Agency, Inc. Leitchfield Phone: 270-259-5465 Email: steve@kinkadecornell.com

Kentucky IA - Winter 2019 | 27


Director at Large

Director at Large

ALLEN J. CRAWFORD, CIC, CSRM

WHITNEY L. FLOYD, CISR

Director at Large

Director at Large

NICHOLAS ROLF

CAROLYN REYNOLDS

Reed Brothers Insurance Services Somerset Phone: 606-679-6311 Email: acrawford@mikrotec.com

Gross Insurance Agency, LLC Ft. Thomas Phone: 859-781-0434 Email: nicholas.rolf@gross-ins.com

28 | Kentucky IA - Winter 2019

Field & Main Insurance Services Henderson Phone: 270-827-3543 Email: wfloyd@fieldandmaininsurance.com

Reynolds Insurance Agency, Inc. Richmond Phone: 859-623-8485 Email: carolynins1@reynoldsinsuranceagency.com


Director at Large

Director at Large

MARK LINKOUS

BARRETT H. “SKIP” MCGAW, II, CIC

Director at Large

Director at Large

CHRIS WISEMAN, CIC

LAURA H. YOUNT, CIC, CISR

Glass & Thompson Insurance Edmonton Phone: 270-432-3491 Email: mark@glassthompson.com

Van Meter Insurance Agency Bowling Green Phone: 270-781-2020 Email: cwiseman@vanmeterins.com

Riddle Insurance Madisonville Phone: 270-821-3122 Email: smcgaw@riddleins.com

Mountain Valley Insurance London Phone: 606-878-0100 Email: laura@mountainvalleyinsurance.com

Kentucky IA - Winter 2019 | 29


DATE/TIME

SEMINAR NAME

February 25 @ 1 pm March 25 @ 1 pm

Agency Management Based E&O and Ethics

3

February 7 @ 3 pm March 7 @ 3 pm

Annuity Basics and Where They Fit

1

February 20 @ 11 am March 19 @ 11 am

Business Auto Claims That Cause Problems

2

February 14 @ 11 am March 14 @ 11 am

Business Fraud Protection

1

February 22 @ 11 am March 21 @ 11 am

Certificates of Insurance – Emerging Issues and Other Stuff that May Scare You!

3

February 25 @ 2 pm March 8 @ 10 am

Commercial Lines Claims That Cause Problems

2

February 12 @ 2 pm March 12 @ 10 am

Commercial Property Endorsements That Can Make You Money!

2

February 12 @ 1 pm March 7 @ 1 pm

COPE – Property Underwriting and Effective Loss Control

2

February 1 @ 2 pm March 6 @ 2 pm

Data Privacy Insurance

2

February 6 @ 10 am March 6 @ 10 am

Directors and Officers Liability Insurance

2

February 5 @ 9 am March 5 @ 9 am

E&O Risk Management – Meeting the Challenge of Change (6 hour course)

6

February 26 @ 10 am March 26 @ 10 am

E&O Risk Management – Meeting the Challenge of Change (Part 1)

3

February 28 @ 2 pm March 28 @ 2 pm

E&O Risk Management – Meeting the Challenge of Change (Part 2)

3

February 14 @ 3 pm March 14 @ 3 pm

Estate Planning Basics

2

February 6 @ 11 am March 6 @ 11 am

Ethics and Business

3

February 14 @ 2 pm March 12 @ 11 am

Home Based Business Exposures

2

February 7 @ 11 am March 7 @ 11 am

Hot Topics in Personal Lines

2

February 7 @ 11 am March 8 @ 2 pm

Liability Issues to Worry About – Indemnity Agreements and Additional Insureds

2

February 21 @ 11 am March 21 @ 11 am

National Flood Insurance Program Basic Course - 2016

3

February 21 @ 11 am March 21 @ 11 am

National Flood Insurance Program Basic Course - 2016

3

30 | Kentucky IA - Winter 2019

CE CREDITS


DATE/TIME

SEMINAR NAME

CE CREDITS

February 15 @ 2 pm March 15 @ 2 pm

Personal Fraud Protection

1

February 13 @ 11 am March 14 @ 11 am

Personal Lines Claims That Cause Problems

2

February 22 @ 11 am March 22 @ 11 am

Professional Ethics in the Insurance Industry

3

February 7 @ 2 pm March 7 @ 2 pm

Property & Liability Concepts - Comp. Cov. Series

2

February 19 @ 9 am March 19 @ 9 am

Rental Cars: More Than Meets the Eye

2

February 15 @ 10 am March 15 @ 10 am

Shake, Rattle, and Roll with it- Earthquake Basics

1

February 25 @ 11 am March 25 @ 11 am

Those Kids and Their Cars!

2

February 20 @ 2 pm March 21 @ 2 pm

Top 5 Life Insurance Uses

2

February 13 @ 3 pm March 14 @ 3 pm

What you Need to Know about Employment Law & Coverage

2

February 12 @ 1 pm March 7 @ 1 pm

Workers Compensation Beyond the Basics

3

VISIT IIAK.ABEN.TV FOR: • • • • •

Class descriptions Faculty Group discounts Bundle discounts Professional development courses

Kentucky IA - Winter 2019 | 31


In today’s environment, getting the most out of an agency’s technology investment is critical to maximizing staff productivity and bottom line profit. While training your staff to fully use the functionality in your agency document and policy management systems is certainly important, I have found that the effective implementation of small, innovative tools can also produce significant productivity gains. In this article, I discuss my candidates for the top ten cool tools in 2009 that deserve your attention.

Voice Recognition

People have always talked to their computers — using fourletter words in many cases — and until recently, computers didn’t listen very well. Affordable, usable, and reliable voice recognition software has been an “any day now” technology for at least a decade. This technology has finally become a useful tool. If you tried it in the past and gave up you should give it a fresh look. I use and recommend Dragon NaturallySpeaking (version 10 preferred). 32 | Kentucky IA - Winter 2019

After installing the software, you will need to spend about 15 or 20 minutes to train it to your voice. After that, accuracy should be about 95%. And as you use the software to correct recognition mistakes, it learns from the mistakes and recognition accuracy improves. The software works seamlessly with Microsoft Word, Excel, Internet Explorer, and Outlook. It is available at many retail stores and through http://www.nuance.com.

Easy Video E-mail

Getting your message through to existing clients and prospects takes creativity. Everyone experiences e-mail overload. Anything you can do to make your E-mail message stand out in an Outlook inbox is a good thing. Eyejot is a web based service that allows you to quickly and easily send Video email (v-mail) to anyone. All you need is an inexpensive web cam and an Eyejot account. The best part is that the basic service is free (at least for now).


Ten Technology Tips to Enhance Your Agency’s Productivity By:Steve Anderson With a web cam and an Eyejot account, it really is as easy as clicking record and speaking to the camera to create and then send a v-mail. The actual video is stored on the Eyejot servers and an e-mail is sent to the recipient. The recipient clicks on a link and your video message is played. You can use Eyejot to communicate with clients. If you do, then the PRO Plus version is worth the $100 per year cost. Messages can be a maximum of five minutes in length; you can upload pre-recorded video; you have extended message storage time; it is advertising free; and you have the ability to attach and send documents. You can brand several Eyejot notification elements with your agency logo and color scheme. The service also will alert you when your video messages have been viewed. (http://www.eyejot.com)

Manage Unstructured Information

I read lots of information from many different sources. The problem I have is deciding where to store all of this information so I can find it again when I need it. I’ve tried several methods; none that worked very well. Evernote is a program that allows me to capture information easily in any environment using whatever device or platform I happen to be using, and makes this information accessible and searchable at any time, from anywhere. There are three parts to the Evernote system: a program (for Windows or Mac), a website where all data is synchronized and stored, and a mobile phone application. Here is how it works. First, you capture the things you want to remember using any platform you are using at the time—your Windows laptop,

the Web, or your mobile phone. If you are reading an article on the Web, you can select the text of the article and trigger the Evernote hotkey (Windows-A). The captured text is stored in the Evernote program database that resides on your computer. That information is synced with your Web account when you are connected to the Internet. You also can use your mobile phone to take a note or a snapshot. This information is uploaded to the Web account and then synced with your computer the next time you connect to the Internet. For example, I have taken a snapshot of a bottle of wine that I wanted to remember. That picture went to my Web account and then to my desktop—seamlessly. Best of all, the information is run through a recognition technology and indexed for fast searching and retrieval. (http://www.evernote.com)

Understand Your E-mail

A free plug-in module for Outlook called Xobni (pronounced “ZOB-nee” which is inbox spelled backwards) adds some social networking and data-mining features to your existing Outlook e-mail. Once installed, it lives as a vertical panel on the right side of your Outlook screen and doesn’t block or intrude upon Outlook’s own panes or functions. Xobni indexes all of your stored e-mail, starting with the most recent messages. Once your e-mail is indexed, the Xobni sidebar shows a profile of the sender for any e-mail you have selected in the message list in your inbox or other folders. Each profile is divided into different sections, including a search box that is much faster than Outlook’s search function. Other sections include the name of the sender for any e-mail you have selected, with a photo (if available), a phone number, and a bar chart showing how many e-mails you’ve received from that person, as well as times of day when that Kentucky IA - Winter 2019 | 33


person appears to be most or least active on e-mail. Also included is the sender’s e-mail network—other people included in e-mails to you, “Conversations” which display e-mail threads (other e-mails you’ve exchanged with the sender), and a section which lists all the files that are attachments on received e-mails. (www.xobni.com)

free), enter your search, the type of alert you’d like (News, Web, etc.), how often you’d like to receive results, and your e-mail address. When you’re done, click the “Create Alert” button. You will receive a confirmation e-mail. Clicking the link in the e-mail will activate your Alert. (http://www. google.com/alerts)

Adding Instant Message Capability to your Website

Send & Receive Large Files

Are your clients able to communicate with you any way they want—whether by phone, e-mail, Web, call center, or live access? Instant Messaging (IM) is an option that is becoming easier to implement. Understandably, agencies are often concerned about the practical aspects of IM. How will the conversation be documented? Is it worth the time?

One service worth considering is Provide Support, a software and Web process that provides a “Live Chat” option on your website. You are given code that enables you to add a button on your site that a client can click to start a live chat with someone in your office. You select individuals who become part of a chat rotation. When someone clicks on the Web button, a box pops up on the computer of the next person in the rotation. That person is responsible for the instant message conversation. The price depends on how many users you add. One user costs $99 annually, three users is $198 annually, and ten operators is $396 annually. The software provides a transcript of each conversation after the call is finished, along with a management recap at night. (http://www.providesupport. com)

Automatic Web Searching

Google offers a host of tools that will help streamline your online experience. One of those services is Google Alerts. Google Alerts performs predefined searches automatically daily. New results are E-mailed to you when new items are found for the specific search terms you want to track on an ongoing basis. What kinds of topics make for interesting Google Alerts? Well, if it’s interesting to you, it’s a good subject for a Google Alert. You could set up an alert to monitor news items for your largest 25 clients. Or, you could use them to keep current on a competitor. They are also useful for keeping up-to-date on what’s happening in a particular industry. We use it to automatically track information about major insurance technology vendors. To create customized alerts, simply visit the Google Alerts home page, create a Google account (it’s 34 | Kentucky IA - Winter 2019

Being able to attach large files to an e-mail to send to someone else is becoming more difficult as organizations place limits on the size of received e-mails. This problem can arise when trying to send a submission to an underwriter or with a client who needs to send you a picture or large spreadsheet. SendThisFile.com and YouSendIt.com are Webbased services that streamline the process of sending and receiving large files. Using either service is as easy as entering the recipient’s e-mail address into a form, selecting the file you want to send, and clicking the Send button. The recipient receives a link to his or her file via an e-mail message and then clicks on the link to download the file to his or her computer. There are no e-mail attachments and no software to install. There are no file size limits so any file up to 2 gigabytes (a browser limit) can be sent. A free account is available to test the service and for sending a small number of files. (http:// www.sendthisfile.com or http://www.yousendit.com)

Easily Manage Website Passwords

Managing multiple website passwords is one of the more difficult tasks for agency personnel. While tools like Transformation Station and TransactNOW help with this process, there continues to be many sites that your staff goes to daily where they have to manually enter User ID and password information each time. RoboForm is a tool that can help. I’ve been using it for a while and don’t know how I got along without it! The program installs as part of your Web browser (either Internet Explorer or Firefox) and manages login and passwords for you. When you log into a website, RoboForm offers to save the online login information into a Passcard after you click the Login/Submit button. The Passcard is saved into a fully encrypted file that requires a master password to access. Once the login information page is saved, a true one-click login is available by clicking on the website name in the Passcard list. The program automatically navigates to the


website’s login page, fills the stored login information into the form, and clicks the submit button. You are logged in with one click. (http://www.roboform.com)

Reduce Keystrokes

I hate keystrokes. I am always looking for ways to eliminate or at least minimize the number of keys that have to be typed during a day. A program I rely on extensively is called ActiveWords. Simply described, ActiveWords turns words into actions. What I like about the program is that these actions are highly customizable. ActiveWords allows you to leverage your vocabulary and innate naming ability using words you enter or select in any context to substitute text. It’s Word’s “AutoCorrect” on steroids. For the first time you can use text substitutions in any program that accepts text input. For example, I type my e-mail address into different forms and programs a lot. Now I type “sa,” hit the spacebar twice (the ActiveWords action key) and our full e-mail address (steve@steveanderson. com) is inserted into the field. Three keystrokes verses 23 keystrokes. A savings of 20 keystrokes. So what? Multiply that by the number of times it is typed in a day and it adds up, not to mention the increase in accuracy. And these text substitutions can be used across your entire computing environment. Think about your agency management system and the number of times the same information is entered over and over again. These entries can be assigned to a code or short phrase and be inserted automatically. (www. activewords.com)

Outlook Rules & Alerts

“E-mail is one of the biggest productivity drains in an insurance agency today.” When I make this comment during presentations, most people in the audience nod their heads in agreement. At the same time, it’s hard to imagine running a successful agency without being able to use e-mail as a communication tool. The problem with e-mail is not the e-mail. The problem is us. As the use of e-mail has exploded over the last several years, we have not stopped to figure out how to effectively manage our Outlook inboxes. The first step to begin to learn how to manage E-mail is to master Outlook Rules and Alerts.

Outlook Alerts

Most people use Outlook alerts to notify them when new e-mails arrive. The problem with alerts is that they interrupt your train of thought when you’re working on something else. The alert pops up and you naturally look at the e-mail to see if it’s something you need to respond to right away. If the e-mail doesn’t require your immediate attention, it takes you a few minutes to get back into the project you were working on prior to being interrupted. Turning off alerts will help.

Outlook Rules

For e-mails that do deserve immediate attention, create an Outlook rule. Outlook rules will help you flag a particular e-mail so that you can respond appropriately. For example, you might want to set up a rule that whenever an e-mail is received from one of your top ten clients, Outlook will notify you of the received e-mail. There is a tremendous amount of functionality available in Outlook rules. Fortunately, Outlook provides a step-by-step process that allows you to create a rule easily. Once you get more familiar with the process of creating rules, you can use more advanced options to fine-tune how the rule will function for you. You can learn how to use both of these tools by going to Outlook help and entering “Rules and Alerts.” Each of these tips may not be appropriate for every agency, but I encourage you to try them out. Many agencies have seen significant productivity gains by employing these tools in their organizations. Editor’s Note: You can subscribe to Steve Anderson’s free weekly emailed newsletter, “TechTips”, by going to www. steveanderson.com/act and subscribing. Tech Tips is a quick read and highlights one new “thing” that will help your organization increase its productivity and effectiveness. Steve Anderson has been involved with the insurance industry for over 30 years and is an active participant in ACT. He is a frequent speaker before agent and industry groups, consults with insurance agencies and publishes numerous reports, as well as the monthly “The Anderson Agency Report.” Steve can be reached at steve@steveanderson.com. Steve prepared this article for ACT. For more information about ACT, contact Jeff Yates, ACT Executive Director here. This article reflects the views of the author and should not be construed as an official statement by ACT.

Kentucky IA - Winter 2019 | 35


Are you watching where your agency is going?

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Log into www.iiaba.net/EOHappens.



Don’t start the New Year with Backlog

By: Kel Plasket, CPCU, AAI

During most of my agency visits, there appears to be a common theme regarding backlog. When I ask, “Do you have any backlog?”, the staff looks at me as though I have asked a really stupid question. They answer something to the effect, “Of course we have backlog. This is the insurance business, isn’t it? If I were caught up, they’d only give me something else to do.” Many agencies have been backlogged for so long, it has actually become acceptable not only to the service providers, but to management as well. They no longer consider backlog a problem. For those who accurately identify backlog as a problem, they either do not know how to fix it or lack the patience to solve it.

38 | Kentucky IA - Winter 2019

There are too many other things going on in the course of a day. By not dealing with the problem, they are in effect saying, “…we don’t have time right now to concern ourselves with our employees’ well-being, our agency’s ability to provide superior customer service, the overall agency production and revenue, or the potential E&O minefield that awaits us.” Backlog is a ticking time bomb. It may be an individual that is behind, a service team or an entire department. One person’s backlog may also create a bottleneck for other individuals or departments, depending on the process involved, which compounds the situation. In extreme circumstances, the entire agency may be affected. Backlog is normally quite obvious. It defines itself as piles of paper. This is the initial tip-off that there is a problem. It can be one large pile or numerous smaller piles neatly arranged. Some service providers will begin to create sub-piles from their big piles. The work doesn’t get processed any quicker this way, but in some strange way the service providers feel more organized. A major problem with all of this paper lying around is that the information has not yet been entered into the agency management system, and thus, the database has not been updated. This results in the service


providers having to look through all the papers to find a specific item before they can answer a client’s question. Eventually, the service providers will find themselves going to the pile and the file for every transaction, whether they need to or not, because the integrity of the database is now in question. There are a number of consequences to an agency as a result of a processing backlog. The most costly in terms of an agency’s time, money and reputation is the increased probability of an errors and omissions claim. Unprocessed paperwork could mean a missing or inadequate coverage. It is also very difficult to provide excellent customer service when the client file in your system database does not provide current information. In today’s competitive marketplace given the available technology, it is almost embarrassing for an agency to be unable to provide an immediate response to a client’s request. Backlog forces the service provider to take down the client’s question or information with a promise to “…research the situation and get back to you when the policy has been located.” This response certainly distinguishes your agency from the competition, but not in the way you had hoped. Backlog has a direct effect on the staff’s morale, attitude and how they interact with the client. A frustrated service provider representing your agency will have difficulty in projecting a smiling face and happy voice to your clients. The agency’s failure to adequately address the backlog situation will ultimately result in turnover. The sad part in this scenario is that many times your best workers are routinely given more work to do than their peers and their backlog never subsides, no matter how much extra time they put in. The agency should consider the consequences of having one of its star employees leave the agency.

When an agency admits it has a backlog problem and commits to resolving the issue, it normally does one of four things: • Throw more people at the backlog from other parts of the agency • Hire additional employees • Pay overtime • Arrange quiet-time All of the above solutions have inherent problems. If you add more people to help eliminate the backlog, you have not solved the underlying issue that initially created the problem. While the old piles may eventually disappear, the process has not changed to avoid the creation of new piles. Overtime rarely works unless an on-site manager closely monitors it. Most service providers will use this time to catch up on their routine work and never hit the backlog pile. In essence, the agency pays extra for its employees to do their regular job. In order for overtime to be successful, a specific action plan must be followed that has a standard against which to measure success. Quiet-time has mixed results depending on when it is scheduled, where the work is completed, what work is completed, the number of interruptions, and how the incoming phone calls are handled during this time. If quiet-time is used, it should be scheduled for specific periods of time that coincide with the agency’s “slower” times. Monday is not a good choice. It is best if a specific pile of backlogged work is taken and completed by the service provider in a secluded office or conference room away from the normal workspace. This will help to eliminate routine interruptions and the urge to work on other transactions besides the backlog. Finally, incoming phone calls during quiettime should be handled and completed by the other service providers. The worst thing that can happen to an individual that has successfully completed a pile of backlog is to go back to her desk and find fifteen phone messages. The feeling of accomplishment disappears immediately and the frustration reaches a higher level than it was before the quiet-time. Negative attitudes can blossom quickly.

Kentucky IA - Winter 2019 | 39


Before we can solve this spiraling, potentially endless problem of backlog, it is important to identify the reasons that created this predicament in the first place. Most agencies have made the following comments: “We need more people to do the work…we don’t have the right people…we need more processors…we need more training…we have too many new people…we have too much work to do…we just can’t keep up…every time I think I’m catching up, I was mistaken… we’re fighting too many fires…I can’t get control over my desk…priorities are changing every hour…we were fine until we got this new system…if they actually worked instead of talking about it, more could be accomplished…I will never be caught up so I’m not going to worry about it anymore…”. Sound familiar? The truth of the matter is, backlog is a curable disease, and it can be controlled so it never reappears. One agency I worked with led the league in backlog. They had unprocessed renewals that were six months old and unprocessed endorsements that were thirteen months old. The paper took up an equivalent of four filing drawers (an entire filing cabinet!). The agency staff were very creative in arranging their piles so that they could find the piece of paper easier. They were in transaction type order by carrier by date and further split up depending upon whether the carrier had a service center. There was so much paper they began to make notes in the system that the paper had been received and where it could be located, thinking that this work-around was actually saving them time and making things easier. In fact, all it did was create more work later. The main reason agencies develop backlog is because they do not have standardized workflows in place. The service providers handle similar transactions differently, a renewal timeline is not enforced, and “fighting fires” becomes routine. The roles between the producers, 40 | Kentucky IA - Winter 2019

CSR’s and processors overlap, creating uncertainty as to who is ultimately responsible for completing a transaction. Service providers may also have limited authority for making decisions and delegating work when appropriate. Remember the agency that had the backlog? By creating standardized workflows, assigning responsibility and holding people accountable, this agency was able to process all of its incoming mail on a daily basis and keep the workload current going forward. No new backlog was created. As time became available during normal work hours and with limited overtime, the agency worked to eliminate the existing backlog in a controlled, coordinated effort. In less than twelve weeks, the entire backlog of almost 4,000 transactions had been caught up. Talk about a miracle comeback! This agency went from last to first in less than three months. The good news is that this agency has remained current over the last six months without increasing staff. As a matter of fact, two individuals have left the agency for various reasons over the last six months, and it has not been necessary to replace them. The implementation of standardized workflows, assigning responsibility for job functions, and continuous monitoring have made all the difference. So what is the moral of the story? Any agency can eliminate its backlog as long as it is willing to implement standard workflows and embrace the changes associated with this worthwhile commitment. Those agencies that step up to the plate will experience positive results and never look back! Kel Plasket is a consultant in insurance operations. He works with agencies to increase their growth, productivity and profit through analysis, solutions and implementation. He can be contacted at 256-765-9953 or kplasket@hughes.net . The author produced this article for the Agents Council for Technology which is affiliated with the Independent Insurance Agents & Brokers of America. This article reflects the views of the author and should not be construed as an official statement of ACT.


Kentucky IA - Winter 2019 | 41



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