Winter 2020
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What's
Inside
Page 7
Contents
6 Thank You 2019 KAPAC Contributors
7 A Day in the Life of a Big I KY Lobbyist 12 House & Senate Committees on Banking and Insurance
Page 21
13 Thank You 2019 InsurPac Contributors 14 2019-2020 Board of Directors 20 In Memoriam 21 Chair Spotlight: What do you say Ray?
Page 26 The Kentucky IA is the official magazine of Big I 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
26 Without Customer Trust Nothing Else Matters 30 Convention 2019: We told you we have BIG news! 36 3 Reasons You Should Care About Best Practices
In Every Issue 4 From the Chair
39 Advertiser Index
10 Education Calendar
39 Classified Ads
24 Industry Partners
39 Social Media Links
Mission Statement Create value for our members through innovative resources and legislative advocacy while fostering industry relationships. Winter 2020 - Kentucky IA | 3
OFFICERS Ray A. Robertson, CIC Chair, Mt. Sterling 859.498.3410
Kevin T. Desmond
Chair-Elect, Bellevue 859.491.5100
Whitney L. Floyd, CIC
Vice-Chair, Henderson 270.827.3543
Allen J. Crawford, CIC, CSRM Treasurer, Somerset 606.679.6311
Stephen R. Kinkade, CPCU, AAI National Director, Leitchfield 270.259.5465
Aaron LaRue
Immediate Past Chair, Bardstown 502.348.0050
DIRECTORS Philip Anderton
Lousiville, 502.585.3277
Mark Linkous, CIC
Edmonton, 270.432.3491
John Purdom
Murray, 270.753.4751
Carolyn Reynolds
Richmond, 859.623.8485
Eric Schumacher
Maysville, 606.759.5663
Adam Sheridan
Emerging Leader Chair, Somerset 606.679.6311
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
What does Big I mean to you? To me, it means an advocate for my profession, my life and being an insurance agent. Member benefits are a plenty, a great health insurance plan and E&O plan just to name a few, but the main ingredient is the legislative advocacy. For you insurance agency owners who noticed a lower tax bill last April, you can thank the National Big I. Insurance agents were left out of the initial tax changes and your national association went to work in Washington. This lobbying effort changed the landscape for agents across the country. Some of you shy away from “getting involved” in legislative advocacy, or don’t see the point. You saying “they are going to do whatever they want in Frankfort or DC.” I have come to learn that State Legislators rely on the Big I to understand issues and to get the information needed to decide. I recently met with State Senator Rick Girdler of Somerset to help deliver the KAPAC check for his reelection campaign. He told us about the checks he received from State Farm, All State, Farm Bureau, Travelers and others. KAPAC and InsurPac checks are an absolute necessity to gain access and an influential spot at the table. I am proud to say our agency personnel have stepped up and are at the 100% level of giving for 2019. The political action arena must have funds and I challenge everyone in this room to contribute or raise your level of contribution. I look forward to my year as chair. The Big I is here for you and your agency. You have invested in this association so utilize it. If you want to make a difference, SHOW UP… Attend events, contribute to a PAC, volunteer on a committee or help someone get a job. We all become better when we use the tools in front of us and participate in something BIGGER. Sincerely,
Amy Good
Financial Services Director
Katie Hines
Membership Services Director
Nikki S. Robins
Communications Director
Kristie Weyer, CISR
Insurance Services Director
Cassie Young
Workforce Development Director
4 | Kentucky IA - Winter 2020
Ray Robertson
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 BIGIKY.ORG/KAPAC
Your donations helped us exceed our goal and raise more than $22,000! Tommy Adams Hamilton Alverson Philip Anderton Nathan Arant John Arnold Chip Atkins Joe Barnes John Bell Robert Blain Brad Blain Sandra Blain Malcolm Blane Brian Burkhead Teryl Carter David Clarke Bobby Clarkson Susan Coblin Chandler Cohoon Tim Conder Beth Cottongim Elden Cox Allen Crawford Steve Crawford Gary Criscillis Virginia Danner Kevin Desmond Dennis Desmond Bob Detherage Mark Dexter Maddie Dobson
Logan Edelen Jim England Stuart Ferguson Whitney Floyd Steve Ford Neel Ford John Funkhouser Paula Gibson Matt Gould Debra Green Danny Greene Bill Greenwood Jeff Greer Jeremiah Hale Duran Hall Hannah Hall Joseph Hall Norm Hatter Mike Hazelwood Ann Heidemann Shannon Helm Chad Hennessey Mike Hepp Sharon Hill Stephen Hill Miller Hoffman David Houk Danny House Tripp Humston Diana Hunt
6 | Kentucky IA - Winter 2020
Phillip Hunt John Ison Brock Jamison Mike Johnson Steve Kinkade Aaron LaRue Alex LaRue John LaRue Bill Latta Brody Layton Ron LeMaster Mark Linkous Lori Linville-Cobb David Livingston Stan Logan Michelle Love Rick Mason Lynn McCandless Bill McCarty Ryan McCarty Ted McClain Skip McGaw Matt Meyer Dustin Million Tom Million Nick Morris Tim Murphy Adam Murphy Bill Murrey Danny Neely
Diana Norwood Brooks Palmer Robert Palmer Charles Polin Warren Pulliam John Purdom Tara Purvis Jared Pursley Carolyn Reynolds Paul Reynolds Ross Richey Keith Riley Ray Robertson James Roe Nick Rolf Charles Rudd
Debbie Sanford Donna Schlie Austin Sebastian Nathan Shanks Adam Sheridan Lisa Switzer Steve Turner Kevin Wallace Kristie Weyer Ashley White Chip Wilkins Kimb Wilson Chris Wiseman Tommy Wong Danny Yackey Laura Yount
DONATE EARLY! Scan the QR code below to help us reach our 2020 goal
Most of you reading this are successful insurance agents. Enterprising business owners who proudly employ Kentuckians and help your customers protect themselves, their families and property from financial loss. By all accounts, a very noble profession. One your mother would be quite proud of. But this article isn’t about you. It’s about me, Dustin Miller... and I’m a lobbyist. And, thanks to some not-so-ethical individuals, my profession is not one that is noted for being particularly noble. But I am trying to change that. What does a lobbyist DO? I recently presented at 5th Grade Career Day, I was a fill-in because the local veterinarian had an emergency (nobody was more disappointed than the kids to see me). I realized in the first few minutes (after the disappointment washed over the students) that I had to answer the question...What does a lobbyist do? The dictionary says a lobbyist is a person who takes part in an organized attempt to influence legislators. Clear enough, but thought I needed something more descriptive, particularly for 5th Graders. Which led me to the meme below: I hope you enjoyed that! It makes me laugh. But, it is the simplest way to describe the lobbying profession. So what does that look like on any given day? I really do sit in a lot of meetings and listen to a lot of regulators and other lobbyists testify to committees, while I listen attentively for legislators’ reactions and votes. But, there is a lot more to it and with the General Assembly currently in session here is a better picture. 6 AM The average day starts with my phone buzzing (this will be a common theme) with emails, texts and phone calls. The correspondence ranges from emails from our Big I Kentucky President and Winter 2020 - Kentucky IA | 7
CEO, Tara Purvis, asking me about a bill that was filed the day before. If I am on my game, I knew the bill was going to be filed or the sponsor told me to expect they were going to file the bill. This happens rarely and I get into my texts to find out if the bill sponsor or lobbyist for the industry can provide me some details. Drive Time My commute is consumed by the latest audiobook from a favorite author James Lee Burke, Michael Connelly, or Malcom Gladwell. I rarely get to enjoy them, as my phone is buzzing and I end up on the phone all the way to the Capitol. Mostly with legislators about bills or to schedule meetings for myself or my clients that are visiting the Capitol, lobbyists -- some friendly and some foe -- to discuss bills that I am negotiating, and my teammates to see who’s covering what meeting now that three legislative appointments have been rescheduled. Arrive at Capitol I arrive at the Capitol straight into the Big I’s legislative breakfast to mix and mingle with Big I members and their legislators. This is KEY. If am a more effective advocate for YOU when legislators associate me with the Big I. That way, they know when I come to see them about a bill on behalf of the Big I, really I am coming to see them on your behalf. The connection that Big I members have in their local community is
a huge advantage for our advocacy efforts. So get to know your legislators!!! Post-Breakfast Juggling I leave the breakfast and try to figure out how I am going to attend two committee meetings at 10 and Noon, make legislator appointments at 10:45, 11, and 11:30 all while trying to see a list of about 10 legislators that I don’t have appointments with, but need their votes or to talk to them on various issues. Fortunately Prentice Harvey, your other Big I lobbyist and my business partner, is there to bail me out! Pause Everything goes on pause for 15 minutes while I take a call from House Banking & Insurance Committee Chairman and Big I Member Bart Rowland. He informs me that he has heard there may be an issue that is problematic for the Big I. His position as Chairman is good for the Big I and our members. He understands what you do in your offices and how important it is for consumers and he is able to work through his position as B&I Chair to protect our industry. So I listen closely about his take on the issue and how I can be of assistance providing message points or research from another state to bolster his opposition to the bill.
AmGUARD • EastGUARD • NorGUARD • WestGUARD
Thank YOU!
HAPPY NEW YEAR to our agents, policyholders, employees, and friends who made this past year a successful one for Berkshire Hathaway GUARD. We look forward to working with you again in 2020! APPLY TO BE AN AGENT AT:
WWW.GUARD.COM/APPLY/
8 | Kentucky IA - Winter 2020
Twitter Time A quick look at Twitter. This happens throughout the day and if I am looking at my phone I am trying not to ignore people sitting in the meeting or walking down the hallways at the same time. Twitter allows me to see what legislators, the Capitol press corps, and my fellow lobbyists are tweeting about and what is on their mind. I have been unsure about the dawning of the social media age, but it is an invaluable tool to get on the fly news as well as context about legislators, regulators and lobbyists that I am working with. It is a lot to process, but I do my best. Communication is key While standing in the legislators office lobby waiting for an appointment to discuss an insurance bill, I draft message points, amendment language, or action alerts for Tara to consider sending on an issue of importance to the Big I. Tara and her team do a great job of communicating with members about what is going on in Frankfort and to focus the myriad of bills and issues down to those of specific interest to members. Further, when we can’t move or stop a bill of interest the Big I is great about asking for you to call, text, and email your legislators. The Calvary!!! The better you know your legislator before you reach out to them on a bill the more impactful your contact with them will be. Just know it is the air support that we need on issues sometimes and we greatly appreciate it!!! 2 PM The House and Senate usually convene at 2 pm. If I don’t have a bill being voted on the floor of either Chamber it is a time for a Diet Coke and a protein bar... you will notice I missed lunch. Then, it is off to meet with industry groups on bills. The Big I participates with the Kentucky Insurance Council. The KIC meeting brings together lobbyists from lots of insurance companies and other insurance trade groups. This is an opportunity to gather feedback on the various insurance bills that have been filed and to discuss lobbying strategy. 4 PM It’s still early in the session so the floor actions in the House and Senate are short and so members get back to their offices by 4 pm and this is a prime time for me to talk to members on various bills. Some for, some against, but all are important. Relationships Matter Normally things wind down at the Capitol in the early evening and I either head home or to a reception one of my clients is having that has brought their
local association members to Frankfort. Again these relationships matter, so I will go and visit just like I did at the Big I breakfast in the morning. Newsletter Prep I usually arrive home in the evening where I will then peruse 400 news articles selecting the top ones for 5 newsletters that I publish nightly. Then I look at the day’s bill filings, read the bills and track them on our bill tracking software and alert Tara to any that may have been recently filed that will impact insurance agents. All while binge-watching The West Wing for the 20th time. Then I sleep... A Note About Lobbyists Though the meme (page 7) and my opening remarks carry on the negative societal view of my profession, it is the only job I have ever wanted or ever done. I am sometimes introduced in Frankfort as “the only person I ever met that actually wanted to be a lobbyist.” I am not a former legislator or the son of a prominent politician. I enjoy being a lobbyist and work hard to represent my clients as best as I can in a way that would make my Mother proud. Lobbyists are not lucky charms my mere representation of the Big I doesn’t make us successful. I am just the honest front man trying to help explain what you do to help your customers. I am fortunate to have an understanding spouse, Laura, and two boys, Davis and Blake, who don’t mind that I disappear from January to April of every year. Dustin Miller is a Partner with Government Strategies, LLC in Frankfort. He began his career handling Government, Community and Media Relations for State Farm Insurance. He has represented clients before the General Assembly from various sectors including regulated utilities, insurance, health care and education since 2003. He served on several boards during Republican and Democrat Administrations including the Healthcare Transparency Committee and the Governor’s Earthquake Council.
Stay in the Know
Check out our Legislative Bulletin every Monday to stay up-to-date on bills affecting our industry.
Not receiving them? Email Nikki Robins at nrobins@iiak.org Winter 2020 - Kentucky IA | 9
DATE/TIME
SEMINAR NAME
CE CREDITS
February 24 @ 1 pm March 23 @ 1 pm April 27 @ 1 pm
Agency Management Based E&O and Ethics
3
February 5 @ 3 pm March 4 @ 3 pm April 1 @ 3 pm
Annuity Basics and Where They Fit
1
February 19 @ 11 am March 18 @ 11 am April 15 @ 11 am
Business Auto Claims That Cause Problems
2
February 5 @ 11 am March 4 @ 11 am April 1 @ 11 am
Business Fraud Protection
1
February 21 @ 11 am March 19 @ 11 am April 17 @ 11 am
Certificates of Insurance – Emerging Issues and Other Stuff that May Scare You!
3
February 14 @ 2 pm March 13 @ 10 am April 10 @ 2 pm
Commercial Lines Claims That Cause Problems
2
February 25 @ 1 pm March 31 @ 1 pm April 28 @ 1 pm
Commercial Property Endorsements That Can Make You Money!
2
February 6 @ 10 am March 5 @ 10 am April 2 @ 10 am
COPE – Property Underwriting and Effective Loss Control
2
February 7 @ 2 pm March 4 @ 2 pm April 3 @ 2 pm
Data Privacy Insurance
2
February 5 @ 10 am March 4 @ 10 am April 1 @ 10 am
Directors and Officers Liability Insurance
2
February 10 @ 1 pm March 9 @ 1 pm April 13 @ 1 pm
Double Trouble - Certificates of Insurance and Business Auto Endorsements
2
February 10 @ 10 am March 9 @ 10 am April 13 @ 10 am
E&O Risk Management – Meeting the Challenge of Change (6 hour course)
6
February 25 @ 10 am March 24 @ 10 am April 28 @ 10 am
E&O Risk Management – Meeting the Challenge of Change (Part 1)
3
February 26 @ 2 pm March 25 @ 2 pm April 28 @ 2 pm
E&O Risk Management – Meeting the Challenge of Change (Part 2)
3
February 13 @ 3 pm March 12 @ 3 pm April 9 @ 3 pm
Estate Planning Basics
2
February 5 @ 11 am March 4 @ 11 am April 1 @ 11 am
Ethics and Business
3
DATE/TIME
SEMINAR NAME
CE CREDITS
February 5 @ 11 am March 4 @ 11 am April 1 @ 11 am
Flood Program Overview - NFIP Then and Now
3
February 13 @ 2 pm March 10 @ 11 am April 9 @ 2 pm
Home Based Business Exposures
2
February 6 @ 11 am March 5 @ 11 am April 2 @ 11 am
Hot Topics in Personal Lines
2
February 13 @ 11 am March 13 @ 2 pm April 9 @ 11 am
Liability Issues to Worry About – Indemnity Agreements and Additional Insureds
2
February 3 @ 10 am March 2 @ 10 am April 6 @ 10 am
Long Term Care Insurance
2
February 28 @ 2 pm March 27 @ 2 pm April 24 @ 2 pm
Personal Fraud Protection
1
February 5 @ 1 pm March 4 @ 1 pm April 1 @ 1 pm
Personal Lines Claims That Cause Problems
2
February 28 @ 11 am March 27 @ 11 am April 24 @ 11 am
Professional Ethics in the Insurance Industry
3
February 6 @ 1 pm March 5 @ 1 pm April 2 @ 1 pm
Property & Liability Concepts - Comp. Cov. Series
2
February 18 @ 9 am March 17 @ 9 am April 21 @ 9 am
Rental Cars: More Than Meets the Eye
2
February 18 @ 10 am March 15 @ 10 am December 20 @ 10 am
Shake, Rattle, and Roll with it- Earthquake Basics
1
February 24 @ 11 am March 23 @ 11 am April 27 @ 11 am
Those Kids and Their Cars!
2
February 15 @ 2 pm March 18 @ 2 pm April 15 @ 2 pm
Top 5 Life Insurance Uses
2
February 19 @ 10 am March 18 @ 10 am December 15 @ 10 am
What You Need to Know About Employment Law & Coverage
2
February 22 @ 1 pm March 26 @ 1 pm April 25 @ 1 pm
Workers Compensation Beyond the Basics
3
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. Wilson Stone D - Scottsville
Rep. Jim Glenn D - Owensboro
Rep. Derek Lewis R - London
Rep. Ken Upchurch* R - Monticello
Rep. Jim Gooch, Jr.* R - Providence
Rep. Michael Meredith R - Oakland
Rep. Rob Wiederstein D - Henderson
Rep. Kathy Hinkle D - Louisa
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 insurance agents in the state of Kentucky 12 | Kentucky IA - Winter 2020
THANK YOU 2019 CONTRIBUTORS
Your donations raised more than $18,000 and went towards InsurPac’s record-breaking $1.2 million national total Tommy Adams Paul Allison Philip Anderton John Arnold Chip Atkins Joe Barnes John Bell Brenda Berryman Brad Blain Sandra Blain Malcolm Blane Dick Burks Chandler Cahoon Emily Calvert Ever Carroll David Clarke Bobby Clarkson Chapin Collins Tim Conder Allen Crawford Gary Criscillis Alex Dean Dennis Desmond Kevin Desmond Bob Detherage Maddie Dobson Jim Downing Phyllis Earlywine Jim England Scott Ferguson Stuart Ferguson Whitney Floyd Neel Ford John Funkhouser Stan Gentry
Virginia Goff Danny Greene Bill Greenwood Jeremiah Hale Jay Hall Norm Hatter Mike Hepp Sharon Hill Stephen Hill Katie Hines Miller Hoffman David M. Houk Clinton Houck Tripp Humston Diana Hunt Phillip Hunt John Ison Mike Johnson Susan Keffer Steve Kinkade Aaron LaRue Alex LaRue Bill Latta Brody Layton Stan Logan Michelle Love Bill McCarty Ryan McCarty Ted McClain Matt Meyer Dustin Million Tim Murphy Danny Neely Raymond Nelson Jr. Diana Norwood
Paula Pfister Chuck Polin John Purdom Jared Pursley Tara Purvis Terry Quested Rick Rand Alex Rankin Carolyn Reynolds Keith Riley Robin Roberts Ray Robertson Stephanie Robertson Patrick Roe Nick Rolf Bart Rowland Allen Rudd Donna Schlie Eric Schumacher Austin Sebastian
Nathan Shanks Adam Sheridan Thomas Shriner Julie Spurlock Bill Stiglitz Lisa Switzer Carolyn Thomason Steve Thompson Cheryl Thornsburg Steve Tobin Steve Turner Rusty Wells Ashley Welsh Ethel Welsh Kimb Wilson Chris Wiseman Danny Yackey Hope Yager Laura Yount
DONATE EARLY! Scan the QR code below to help us reach our 2020 goal
Winter 2020 - Kentucky IA | 13
BOARD OF DIRECTORS
2019 - 2020 BIG I KY
14 | Kentucky IA - Winter 2019
Chair RAY A. ROBERTSON, CIC Limestone Agency, Inc Mt. Sterling Phone: 859-498-3410
Email: ray.robertson@limestoneagency.com
Immediate Past Chair AARON LARUE
LaRue-Carey Insurance Group LLC Bardstown Phone: 502-348-0050
Email: aaron@laruecareyinsurance.com
Chair-Elect
Vice Chair
KEVIN T. DESMOND
WHITNEY L. FLOYD, CIC
Email: kevin.desmond@desmondinsurance.com
Email: wfloyd@fieldandmaininsurance.com
Desmond Brothers, Inc. Bellevue Phone: 859-491-5199
Field & Main Insurance Services Henderson Phone: 270-827-3543
Treasurer
National Director
ALLEN J. CRAWFORD, CIC, CSRM
STEPHEN R. KINKADE, CPCU, AAI
Email: acrawford@rbisomerset.com
Email: steve@kinkadecornell.com
Reed Brothers Insurance Services Somerset Phone: 606-679-6311
Kinkade-Cornell Insurance Agency, Inc. Leitchfield Phone: 270-259-5465
Winter 2020 - Kentucky IA | 15
Director at Large
Director at Large
PHILIP ANDERTON
MARK LINKOUS
Email: philipanderton@sterlingthompson.com
Email: mark@glassthompson.com
Sterling Thompson Insurance Louisville Phone: 502-585-3277
Glass & Thompson Insurance Edmonton Phone: 270-432-3491
Director at Large
Emerging Leader Chair
ERIC SCHUMACHER
ADAM SHERIDAN
Email: eschumacher@maysvilleky.net
Email: asheridan@rbisomerset.com
Schumacher Insurance Agency, Inc. Maysville Phone: 606-759-5663
16 | Kentucky IA - Winter 2020
Reed Brothers Insurance Services Somerset Phone: 606-679-6311
Director at Large
Director at Large
JOHN PURDOM
CAROLYN REYNOLDS
Email: john@themurrayinsuranceagency.com
Email: carolynins1@reynoldsinsuranceagency.com
The Murray Insurance Agency Murray Phone: 270-753-4751
Reynolds Insurance Agency, Inc. Richmond Phone: 859-623-8485
Director at Large
Director at Large
CHRIS J. WISEMAN, CIC
LAURA H. YOUNT, CIC, CISR
Email: cwiseman@higusa.com
Email: laura@mountainvalleyinsurance.com
Van Meter Insurance Agency Bowling Green Phone: 270-781-2020
Mountain Valley Insurance London Phone: 606-878-0100
Winter 2020 - Kentucky IA | 17
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In Memoriam
Marion Custer Blair
September 9, 1930 - January 15, 2020.
Born in Carlisle, Kentucky the only child of the late Marion Custer Blair, Sr. and Bernice Darnall Blair, Custer was a 1948 graduate of Carlisle High School and a member of the Kentucky National Guard. Following the untimely death of his father in 1949, he took over the family business, M.C. Blair Insurance Agency. For nearly 70 years, his agency has been providing personal and commercial coverage to the people of Nicholas County and surrounding areas. In addition, he has represented Northwestern Mutual Life Insurance since 1950, and later became a partner in the Millersburg Insurance Agency. He was a member of the Independent Insurance Agents of Kentucky, dedicating much of his life to his business, and enjoyed both his agency and his client relationships until his death. A faithful member of the Carlisle Presbyterian Church, it served as a source of great joy throughout his life. Music was a beloved passion and he sang in the church choir every Sunday. Deeply involved in all facets of the church, he was an elder and held the office of treasurer for over 60 years. Custer served on the Board of Directors for the Deposit Bank of Carlisle and the Paris Stockyards, was a past President of the Carlisle Rotary Club, a life member of the University of Kentucky Alumni Association and a University of Kentucky Henry Stites Barker Fellow. He was predeceased by his wife, Caroline Proctor Wood Blair. Custer & Caroline Proc shared many interests and passions, especially traveling with their family to University of Kentucky sporting events and spending precious time with their grandchildren. He lived the last two years of his life at The Willows at Hamburg in Lexington. He stayed very active until his death, enjoying their parties, field trips and activities. The family wishes to express deep gratitude to the Willows staff for their exceptional care and friendship. He is survived by his two children, Proctor Wood Blair (Sara Jim) and Beth Blair Mercer (Brian), both of Lexington; five grandchildren, Amanda Blair Milward (Jeff), Stacy Blair Forrester (Rob), Blair McIntyre Mercer, Proctor Wood Mercer and Benjamin King Mercer; and three great-grandchildren, Mary Carter Milward, Harrison Proctor Milward and Callihan Williams Forrester. A Memorial Service was held on, January 18, 2020 at the Carlisle Presbyterian Church. Charitable donations may be made in Custer’s memory to the following organization: Carlisle Presbyterian Church P.O. Box 111, Carlisle, Kentucky 40311
20 | Kentucky IA - Winter 2020
Joseph Brooks “Joe” McClain May 25, 1928 - January 12, 2020
Joseph Brooks (Joe) McClain passed away on Sunday, January 12, at the age of 91. A native Kentuckian, he was the son of Eulis Wilson McClain and Frances Brooks McClain. He is survived by his two sons, Ted (Ann Davis) McClain and Jody (Melinda) McClain, both of Paris; his daughter Jennifer McClain of Sacramento, CA; and his two grandchildren, Brooks McClain, and Courtney McClain. He was preceded in death by his wife of 64 years, Virginia (Jinni) Haag McClain; his daughter, Kathleen McClain; and his sister, Paula Reilly. Joe was born on May 25, 1928, in Paducah, and grew up in Mayfield. He attended the University of Kentucky, where he graduated with a Bachelor of Science degree in commerce and was a United States Army veteran. It was at UK that he met Jinni, the woman who would be his cherished lifelong companion. The two were married in 1950. They moved to Paris soon after where Joe opened an insurance agency in late 1955, and Paris would be their home for life. Joe dedicated himself to his profession, and his business (the Hopewell Company) thrived. In 1965 he was named Insurer of the Year by the Independent Insurance Agents of Kentucky (IIAK). He was elected president of the IIAK in 1969 and served as its state-national director in 1970. He loved his work and remained actively engaged in the agency he had founded until 2017. Joe was a life member of the UK Alumni Association and a UK Fellow. He served on the board of directors for Kentucky Bank and participated in civic affairs, as president of the Paris Kiwanis Club and as a member of the Paris Rotary Club. Joe’s connections to his Mayfield roots remained strong throughout his life. Although he was a blue-blooded Kentucky Wildcats fan, nothing ranked higher on his list of desirable sporting outcomes than a good trouncing of Paducah Tilghman by Mayfield High. Those he leaves behind will remember him in different ways; as a man of integrity, a trusted friend, a great storyteller, a terrific uncle, an awesome grandpa, and a stellar dad. All will remember him with love. Visitation was held at the Hinton-Turner Funeral Home in Paris on January 15, with a private graveside service immediately following at Paris Cemetery. Memorial contributions are suggested to the Paris-Bourbon County YMCA and The Hopewell Museum.
What do you say
RAY
By Nikki Robins
It’s 11 am on a rainy Friday morning and Ray Robertson is making his usual rounds - from his driver’s seat. He gives me anecdotes about our surrounding while we drive. “We’re in the middle of Stepstone and Howard’s Mill. Two of the big cities,” he says, as we make our way down a winding road. “This house is supposedly haunted,” he comments as we pass by a seemingly abandoned house. Our first stop is at the scene of a house fire where Slate Creek Contracting, a longtime partner of the agency, is working on restoration. As we pull into the driveway, we get a phone call from First Christian Church. It’s a recording that announces the death of a parishioner. “I already knew about that,” Ray reports. I start to notice this pattern in our day together. Saying that Ray has his finger on the pulse of his community is an understatement. We enter the home to find a full crew working. Ray greets each by name, and Brent Pergrem gives us a tour of the damage. This fire started in the kitchen, and proceeded to gut the home. Brent and Ray then tell me several stories involving past jobs everything from a home converted from a barn that filled with water to the hometown barber and what families are responsible for all the brickwork in town. And all this from a non-native. Ray is actually from a small town about 17 miles away, called Bethel. This news comes as a shock to me, as he seems to know everything about everyone in Mt Sterling. Our next client meeting is a little delayed, and its getting close to lunchtime, so we head to The Corner Store. When I ask if he goes there every day, he informs me that he’s already been in this morning, so I take that as a yes. But, before we make it there, Ray takes another phone call about an issue with a backyard building delivery, another Ray’s small business ventures. Putting out fires is something that comes naturally to Ray. He consoles the man on the other end, comes up with a game plan, and we’re off to lunch. It’s Friday, so that means catfish. Lodema (next page, top left) greets us, starts Ray’s order (he did tell me he was a regular after all), and I am given confirmation that Ray does, in fact, eat here
more than he eats at home. “Except for Tuesday. That’s meatloaf day,” he says with disgust. Since we have our choice between two different booths, I am informed that this is a slow day. “Most of the time you sit with whoever has a seat open,” Ray informs me. As we eat, a majority of our fellow patrons speak to us. It’s the interactions that you can only get in a small town - and that seems to be just how Ray likes it. “How can you not know everybody? That’s just how you live.” We finish our meal and we’re off to our next appointment at Mike Murphy’s tobacco farm. This will be a bit of a drive from our current location, so I take this time to ask Ray a few questions.
What made you pick insurance?
I didn’t, it picked me! I was umpiring little league baseball one summer and someone told me that if I wanted a part-time job while at UK, there was a guy from back home that would hire me. I stayed there all 4 years I was in school and then 6 years after that. I wound up being a field rep on the company side. I had an opportunity to become a part of the agency in Mt. Sterling in 1996. Before the birth of our second child, Laken, in 2000 we officially moved back to Mt. Sterling and have been here every since. I like being an insurance agent. I can’t stand the thought of being behind a desk. This is a typical day.
What do you find most fulfilling about being an insurance agent?
Being able to help someone when they’ve had a claim. I know this can’t always be the case, but if I know about a fire, for example, I like to be there before the fire department has left the scene. That helps you get a better understanding of what happened, and get an adjuster on the case as fast as possible. I don’t really consider that going the extra mile. Because the people that I deal with as a customer, I expect them to do the same for me so that’s just how I do things. I can’t imagine doing what I do in a big city where I don’t know EVERYbody. I like the small town aspect and being able to be in touch with people. I never turn my cell phone off. I got a phone call on New Year’s Eve around 7 pm. And sometimes you can’t help at that time, but its important to me to be accessible.
Do you think you would still get that same level of involvement if you were a captive agent? I don’t think so. I can’t imagine not being independent.
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Tell me about your agency.
Well, we have a little bit of an identity crisis - depending on which location you’re in, our customers could know us as Limestone, Hoffman-Robertson or Woodford-HillThompson. Limestone is the corporate brand and was started in 1847 by Miller’s great-great grandfather, who’s picture is on the wall at our agency. We actually have a check that my great grandfather wrote to the agency in 1927. (top, right) I have been here 23 years and we have had an agency in Paris since 2005.
How has your agency responded to the ever-changing needs of your customers and the industry?
You meet your customers where they’re at. We have some that we email frequently and others that prefer the “old” way of doing things. And while we have a lot of technology at our disposal - from docusign to a website and social media - I insure in a very “old-school” manner. I will not insure anything that I haven’t physically seen. I deal with everything from tobacco barns and outdoor sheds to homes worth millions. I am adaptable, but I am also a very visual person and seeing helps me wrap my head around the needs of a current or prospective client.
As an agent, what keeps you up at night?
Various day-to-day tasks that might not have been taken care of that day. I don’t worry too much about people buying direct on the internet. Those people aren’t usually our customers. I know that future generations are going to use that more, but I am confident that we are doing the right things for our clients. But honestly not a lot keeps me up at night. I’m a sound sleeper.
Are you involved in any activities in your community? I have been on the Planning & Zoning Committee since 2001 and Chairman since 2003. I’m on the Regional Board of Traditional Bank, Chairman of the Board for Longview Cemetery in Bethel and have been Chairman of the Board for Mt. Sterling Main Street for 21 years.
What are the lessons from your personal life that you’ve incorporated into your career?
You’ve got to believe in you. If I’ve done anything over the years, whether it be with coaching baseball or with my own children - it’s that you have to believe in what you’ve got. You have to believe in your own talents. That’s not to say that everything is always going to work out. We certainly didn’t win every game. But you have to believe that you did all you could do.
My mother taught me to stand up for what I believe in, to defend the people that need you and to stand beside those who stand beside you. I have some of the greatest friends in the world that have rallied around me in my time of need and I would do the same for them.
How will the “you’ve got to believe” mentality feed into your time as Chair?
It drives me crazy that some members aren’t involved or do the bare minimum and think they’ve gone overboard. This is our livelihood. When the teachers were threatened with retirement issues, there were sick outs and going to Frankfort. The whole Capitol grounds were covered with teachers. I feel sometimes that insurance agents get complacent and just assume everything is going to work out. The Big “I” Government Affairs team is the reason why all of us are included in the tax cut for pass through income. I think most people didn’t know anything beyond their taxes being lower - instead of their national association fighting for us. I want everyone to become more involved. I’ve committed to go to every Road Show because I think its important for people to see someone who’s involved in leadership.
Tell me about your family.
Stephanie and I have been married since 1994. She’s tolerant and she’s an awesome mother. We have a daughter, Ashlyn Ray, who will be 22 in February and a son, Laken Scott, who will be 20 in March. They both attend the University of Kentucky. Ash will graduate in May and is currently interviewing at physical therapy schools. Laken is a sophomore studying Integrated Strategic Communications.
How do you strike a balance between work and family? Well, it helps that I have a great wife. She understands how I do business. She knows that people are going to walk up to our table at resaturants or local games. She knows the phone is going to ring... As if on cue, Ray’s phone rings. He empathizes with a client concerning a bond problem and receives a phone call from Mike at our next location. Mike’s tobacco bailer is broken down and his grandson has to get a part. Ray assures him that’s not a problem, and that we only need pictures for this very article.
How has your membership affected your life both personally and professionally?
I have gotten to do a lot of things and go a lot of places that I wouldn’t I have gotten to do otherwise. But the biggest takeaway for me are the connections. It really helps when you can identify with people who have the same problems you do. I have made friends through this association that I know I can trust and will be there for me and would probably even drive across the country if I asked them to. We arrive at Mike’s farm. “You know, I have some clients that call me for small things. And, like I said, I always answer because that’s what I’m there for. But when Mike’s house burned to the ground on a Saturday night, I didn’t find out about it until Sunday morning because he said it was the weekend and he didn’t want to bother us.” This anecdote, accompanied with the call from earlier give me a sense of the man who greets us in the tobacco farm. When I ask him about the fire, he tells me, “well, what’s done is done, so I figured it could wait until Monday.” After a few more stories and a firm handshake, we’re back on the road toward the office.
If you had to pick your favorite Big I Kentucky benefit, what would it be? Legislative Advocacy - I wouldn’t have said that a year ago, but after being in Washington, DC and seeing it up close, that rose to the top for me.
What are your goals for your time as BIG I KY chair?
Is live through it an answer? Ha! But honestly, not that I’m wishing for a big issue, I just want to see members get more involved and realize the importance of legislative advocacy.
Do you have any words you’d like to share with the membership?
Get involved. To find out what’s going on, you’ve got to come to a meeting. Find out what’s REALLY going on, don’t just rely on what you hear.
What would you be doing if you weren’t in insurance?
You know, I don’t know. I always wanted to be President of the United States when I was growing up. That’s what I was for Career Day. I never set out to be in insurance, but it definitely matches up to what I like to do. I don’t feel like I have a job - I just like helping people. I can’t imagine doing anything else.
What advice would you give your 25-year old self? Slow down every now and then.
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Thank You
2020 Industry Partners
BRONZE
SILVER
GOLD
PLATINUM
DIAMOND
(as of 01/21/20)
Kentucky Growers Insurance Co., Inc. State Auto Insurance Company
Anthem Blue Cross & Blue Shield EMC Insurance Companies Encova FCCI Insurance Group
Frankenmuth Insurance Grange Insurance Company ICW Group Insurance Companies J.M. Wilson
Market Finders Insurance Prime Insurance Companies SwissRe Corporate Solutions United Home Insurance Company
IIAK gratefully acknowledges these fine companies, our 2020 Industry Partners. Without their assistance, fees for the events and programs throughout the year would be significantly higher and/or the quality of the program would be restricted.
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Are you watching where your agency is going?
A little agency risk management goes a long way. �ou’re caught up in the day�to�day shuf�le, working hard to get and keep business. But if you don’t step back and assess your agency procedures, you can walk right off a risk management cliff, landing your agency in court facing a professional liability lawsuit that may have been avoided. Big “I” Professional Liability provides the E&O Happens Risk Management Website, featuring more than 700 pages of agency risk management information, available exclusively, and at no cost, to Big “I” members. Features include:
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Without Customer Trust Nothing Else Matters
By John Graham
When the contractor didn’t deliverer the proposal as promised, the homeowner called to find out when to expect it. “Sorry about that,” was the reply. “You’ll have it later today or tomorrow.” When it arrived, what passed for a proposal was a “cost estimate” and a handdrawn layout lacking specifics. It appeared to have been dashed off on the way over. The contractor came recommended, but the homeowner chose another company due to a lack of trust. Hands down, customer experience is today’s #1 marketing hot issue—and for good reason. Up to 82% of customers who leave do so because of a bad experience. While businesses keep trying to plug up the customer experience holes, it’s never enough. There’s a lesson here: it’s over and done if trust isn’t established as early as possible. Without a reservoir of goodwill available to recover from a bad customer experience, customers bail. Even though winning sales is the goal, the first objective is winning customer trust. Credibility matters since the doubt meter is always running with prospects and customers. This is why bulletproofing customer relationships is the number one task. Today’s customers don’t automatically trust brands, businesses or salespeople. It’s earned by actions, experience and attitudes that develop over time. And here are ways to establish it: Follow through. When contacting a business, a lack of follow through may be customers’ greatest fear. Allay 26 | Kentucky IA - Winter 2020
their worries by acknowledging how they feel: “I know how important this is to you… I’ll be back to you about 3:00 pm today.” or “You have my word…but should you want to contact me here’s my email address and cell number.” Solve problems fast. “Will-they-or-won’t-they take care of it?” is what every customer is thinking when they have a problem. What they’re looking for is a clue as how a business will respond. Surprise them by letting them know you understand and will take care of it now. If you can’t do it, change the policy! Be candid. “Why didn’t you tell me?” are words no salesperson wants to hear from a customer. It happens because there’s often a wide gulf between what customers think they want to buy and what’s going to best serve their needs. To assure satisfaction be candid with them to make sure they will be satisfied. Encourage feedback. Companies may say they want to hear from their customers, but make it difficult, at times nearly impossible, to do so. If you’re serious about getting feedback, make it easy for customers to contact you and then respond promptly. Personalize content. And not by dropping in the customer’s name a couple of times. Imagine having a cup of coffee with someone and keep that picture in your mind as you write. It’s how you say it—with empathy, openness and understanding that makes it personal.
Make relevant recommendations. Let customers know you “get it” by giving them specific ideas and suggestions that fit them. General offers have a negative effect; they make customers feel you don’t know them.
Acknowledge mistakes. Desensitize tense situations by offering an apology and do it in a way so customers know you care—and not just trying to appease them. Then, resolve it to the customer’s satisfaction.
Test ideas and initiatives first. Before making changes affecting customers ask them to comment and express their views. Don’t bother if you’re afraid you’ll learn something you don’t want to hear. Taking customers into your confidence avoids mistakes—and creates trust.
Keep your promises. Many “one star” customer comments, those that inflame customers the most, have to do with “broken promises.” Solution: do what you said you would do when you said you would do it. If you don’t, be prepared to suffer the customer’s wrath! In their mind, you have disrespected them.
Respond quickly. When customers contact businesses today, they either don’t expect a response or assume it will take a day or longer. This is no way to build trust. Response Rule: best within 15 minutes…repeat, within 15 minutes.
Give meaning to “valued customer.” These two words are useless unless they translate into value for customers. Examples: a higher credit limit, loyalty options, a direct phone number, an assigned CSR, or some special service. Find out what they expect. Even though trust is the critical component of customer relationships, its meaning can be highly individual. To avoid customer dissatisfaction and disappointment, ask them what they expect from you. Be up front. Bad customer experiences make consumers wary and doubtful. They’ve heard it all before so they’re ready to do battle when someone says, “We put customers first.” Being transparent in dealing with customers helps boost their trust. Is it worth the effort to build customer trust? It is if you believe that new customers come with built-in skepticism, waiting for the other shoe to fall. This won’t change unless trust is the basis of the customer relationship. John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of “Magnet Marketing,” and publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@ grahamcomm.com or johnrgraham.com.
Winter 2020 - Kentucky IA | 27
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Product availability varies by state. Get the full scoop at www.bigimarkets.com! As of February 2019
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For information regarding membership, contact: Amy Good Financial Services Director 502-245-5432 • agood@iiak.org
Winter 2020 - Kentucky IA | 29
CONVENTION 2019 We told you we had BIG things in store! This year was BIG for your association. If you weren’t there, and want to know check out the scoop - or you want to relive the memories - read on! The Omni Hotel was filled on November 20-22, 2019 with more than 300 attendees for our 123rd Annual Convention & Trade Show. 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, Bob Fee, was on-hand to present the trophy. Convention officially kicked off Wednesday evening at the Emerging Leader Reception sponsored by Arlington/Roe. Outgoing Emerging Leader Chair Nick Rolf welcomed the membership and recognized committee members: Adam Sheridan, Danny Yackey, Danny Neely, Nathan Arant, Robbie Blain, Chandler Cohoon, Josh Dahl, Maddie Dobson, Logan Edelen, Danny Greene, Stephen Hill, Camille Knight, Dustin Million, Diana Norwood, Jared Pursley, Nathan Shanks, and Chip Wilkins.
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Rolf updated the membership of the many activities and fundraising efforts the committee accomplished in 2019 and welcomed 201920 Emerging Leader Chair, Adam Sheridan (right, top), to the stage. Sheridan outlined his plans for the year and Nick Rolf (right, bottom) was presented with the Michael D. Hepp Outstanding Emerging Leader Award. Next, CEO Tara Purvis annouced an exciting partnership with the University of Kentucky’s Gatton College of Business. Beginning in September 2020, an Emerging Leaders Summit will educate the next leaders of our industry in the following areas: Leadership Development and Communications, Essentials of HR Management, Economics of the Insurance Industry, Finance & Accounting for Non-Financial Managers, Sales Leadership. Since this program is only 2 ½ days, it allows for a huge ROI with limited time out of the office. Those who complete the program with a certificate from the accredited UK Gatton College of Business and will be in the inaugural class of this elite and customized series of courses among like-minded insurance professionals to make relationships that will last a lifetime.
The night ended with a casino night, sponsored by Liberty Mutual & Safeco Insurance. Attendees were able to play craps, roulette, Texas Hold’Em, and blackjack. Chandler Cohoon was the night’s 1st place chip holder and took home $300 CASH! Not a bad trade for a few hours of playing with fake money! Thursday started bright and early at the Welcome Breakfast and General Session. CEO Tara Purvis kicked things off with a BIG annoucement. Independent Insurance Agents of Kentucky is now BIG I KENTUCKY! “The evolution of the Independent Agents of Kentucky to Big I Kentucky isn’t simply a new logo and name; this starts the next era of delivering what agents need US to be. Big I Kentucky lays the foundation for the future that we are building for our members, their employees and the independent agency system. It is rooted in a vastly understood and respected name, but now as the forefront of our association, the brand has a modern edge that will also stand the test of time. Our voice will be stronger and bigger to advance and protect the interests of independent agencies. I am proud of the direction that our organization has chosen and am excited about the renewed focus on member experience that the re-branding initiative brings. We will channel the collective knowledge, resources and connections available on a local, state and national level to propel our members to the top. There is no question where our members belong and why, because our team does excellent work. By keeping it simple, Big I Kentucky will be a name that agents remember. We are Invested. We are Innovative. We are Independent. WE ARE BIG I KENTUCKY “ Then, Chair Aaron LaRue gave the membership an update on the achievements from 2019, including the expansion of our workforce development effors, Grassroots efforts that helped kill a Louisville Tax Increase, and continued growth of the Emerging Leader program.
He also introduced your leadership for 20192020 and recognized members who finished their terms on the Board of Directors: Nick Rolf, Skip McGaw, Mike Johnson, and Jimmy England. IIABA Chair-Elect Bob Fee followed, informing us of the newest happenings with IIABA and how they bring value to by helping to protect, grow, and enhance all members. After breakfast, Keynote Speaker Bobby Reagan (right) presented Agency 2025: The Changing Landscape of Insurance. His presentation gave insight to attendees on how to prepare their agencies for what is in store in the not-sodistant future. As with all Conventions, we never leave our guests and spouses without something to do. This year, they enjoyed a candle-making class at Maddox & Rose, followed by lunch and shopping in Louisville’s Butchertown neighborhood. Back at the Omni, it was time for some awards. Aaron LaRue presented Chair Awards to Alex LaRue, Jennifer Lucas, Mike Johnson, David Clarke, Carolyn Reynolds, Adam Murphy, and Cassie Young in recognition of their impact on him and the association during his time as Chair. Skip McGaw took the stage to present the 2019 CSR of the Year Award. This award is given to a person working in Big I Kentucky member agency as a customer service representative who typifies the ideals of service. The welldeserved 2019 CSR of the Year award went to Paula Crick of Riddle Insurance in Madisonville. After lunch, the Olmstead Ballroom buzzed with Winter 2020 - Kentucky IA | 31
excited exhibitors and attendees for our highlyanticipated Trade Show. But the excitement didn’t stop there - it was time for the 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 35 silent auction items and ring toss were able to raise more than $11,900 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 the ceremonial “Passing of the Gavel”, which recognizes past association Presidents and Chairs in attendance. Ray Robertson took the stage to present the 2019 CSR of the Year Award to Cheryl Thornsburg of Limestone Agency in Mt. Sterling. (bottom, left) 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. Steve Kinkade took the stage to present outgoing Treasurer, Jimmy England, with this prestigious honor. (bottom, center) A new award was added this year, the KAPAC Trailblazer Award. This award will go to individuals who contribute the maximum amount to KAPAC for that calendar year. The innaguarl recipient of this award was Alex LaRue. (bottom, right)
Ray Robertson, CIC of Limestone Agency, Inc. in Mt. Sterling was inducted as our newest Chair. Installed alongside Robertson were Kevin Desmond of Desmond Brothers, Inc. in Bellevue as Chair-Elect and Whitney Floyd, CIC of Field & Main Insurance in Henderson as Vice Chair. Philip Anderton of Sterling Thompson in Louisville The following member were appointed as members of the 2019-2020 Board of Directors: (full Board of Directors list on page 14) • Allen J. Crawford, CIC, CSRM • Philip Anderton • Eric Schumacher • John Purdom • Adam Sheridan After officially being handed the gavel, Robertson addressed attendees with his plans for his year as Chair. (Turn to page 25 to get to know Ray a little better!) Friday morning began with a Legislative Breakfast. Former DOI Commissioner Nancy Atkins and Congressman James Comer updated members on accomplishments of the Department of Insurance as well as the overall happenings in Frankfort and Washington, D.C. 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.
32 | Kentucky IA - Winter 2020
Winter 2020 - Kentucky IA | 33
Thank You Trade Show Exhibitors Aetna AFCO Anthem Arlington/Roe Berkshire Hathaway GUARD Bolton and Company Burns & Wilcox, LTD Capital Premium Financing Columbia Insurance Group Commercial Sector Ins Brokers DEVsource Technology Solutions Diversified Brokerage Specialists Eastern Kentucky University ePayPolicy First Connect Insurance Employer Blueprint HIIG Imperial PFS
34 | Kentucky IA - Winter 2020
Irwin Siegel Agency, Inc. J.M. Wilson Kentucky National Insurance Co. Kentucky Retail Federation SIF KY Department of Insurance Liberty Mutual & Safeco Insurance Market Finders Insurance Pennsylvania Lumbermens Prime Insurance Company Provident Insurance Risk Placement Services, Inc. RT Specialty Group Selective State Auto Insurance Company Swiss Re Corporate Solutions Titan Web Marketing Solutions Trusted Choice United Home Insurance Company
3 Reasons You Should Care About Best Practices
By Jacquelyn Connelly
The Best Practices Study, a joint effort of the Big “I” and Reagan Consulting, Inc., celebrated its 26th anniversary with the update released last fall. Since 1993, the Best Practices Study has aimed to help agencies measure themselves against best-in-class agencies, identify performance gaps, and better manage their businesses to address problem areas. If you’re still not convinced you have something to gain by engaging with the research, here are three specific reasons that might change your mind.
1) Valuation.
Reagan Consulting recently determined that if an agency increases growth across the board for commissions and fees by 1% each year, it creates a 5% premium on agency valuation, says John Merrill, vice president at Reagan Consulting. On average, Best Practices agencies achieve an organic growth rate of about 4.6%, according to the 2018 Best Practices Study Update. Calculate yours by taking the yearover-year change in commission and fee revenue (excluding acquired revenue) and expressing it as a percentage of prior-year commissions and fees. “The difference between those two numbers is your organic growth, excluding any contingents and acquired revenue,” explains Tom Doran, partner at Reagan Consulting. In short, “the value of a company that is growing at a fast pace is much, much higher than one that’s not,” Doran says. “There is a real premium on organic growth in the valuation, so a relentless focus on organic growth should be at the top of any agency owner’s priority list.”
2) Perpetuation.
The 2018 Best Practices Study Update classifies producers by age group: up to age 35, age 36-45, age 46-55, and over age 55. Understanding the age banding of your agency’s sales force is an important consideration when evaluating the strength of your sales culture, Merrill says, because “you don’t want to be too concentrated in one age group.” “You don’t want to see all your new business generation in the senior category that could be retiring within the next five to 10 years,” Merrill continues. “That’s going to be an
36 | Kentucky IA - Winter 2020
issue when you’re thinking about valuation, perpetuation and mergers & acquisitions—you’d like your new business generation to be more balanced across the board, and you want to be investing in some of those younger classes to create long-term value.” If you discover, for example, that “you’re getting a lot of production out of your junior and senior classes and not a lot from your freshman class, that’s an easy way to determine you’ve got a shortage of young producers being developed,” Doran says. Especially if your agency has producers in their 50s who are “really doing well and hitting big numbers,” Doran says, looking at your new business generation alone isn’t enough to determine whether your sales success is sustainable long-term. “Those producers are going to retire at some point, so you better make sure you’re investing in that next generation of producers in order to maintain your production capability.” As with everything in the Best Practices Study, the research enables you to compare your agency’s production numbers and validated producers to those of your peers, Doran says: “That would help you make sure you’ve got enough producers on board to drive the growth you want to accomplish.” “That’s an issue a lot of us are struggling with—where’s your next sales force coming from?” says Michael Newsom, fifth-generation owner of W.J. Wheeler Insurance Agency in Bethel, Maine. “Are we going to turn one of our current employees into a producer, or are we going somewhere else for that next person who’s going to sell? Are we looking at someone who has insurance experience, or are we going outside the industry?”
3) Motivation.
When the Best Practices Study first started in 1993, “it was a fairly new concept,” recalls Trey Starke, president of Starke Agency, Inc. in Montgomery, Alabama. “I’ve always tended to want to manage through data—I think data can tell you a lot of things. But at that point in time, the data Reagan was getting didn’t exist. I wanted that data from a management perspective.” Why? “We’ve gotten kind of competitive about it, because
we want to be the best in our category,” says Newsom, who credits Best Practices for improving key performance metrics over the 10 years that his agency has been participating in the research process. “When the last round of results came in and we saw our metrics, I thought, ‘Hey, that’s pretty good, but come on— we can do better, right?’ There’s that element of motivation for us. It’s nice to have someone to compete against in a way that’s measurable. I have found that very useful.” Michelle Appelbaum, research coordinator at Reagan Consulting, Inc., notes that “we have a number of agencies that had submitted their data and didn’t initially get selected, but as they continued to track their numbers and progress in subsequent years, ended up becoming a Best Practices Agency by the next study cycle. We’ve seen how agencies continue to improve by taking advantage of benchmarking and understanding exactly where they are.” “It would be difficult to overstate the number of agencies we’ve worked with over the years that took to heart that information that was disappointing initially, and said, ‘Hey, we’re going to manage our business by these benchmarks and we’re going to get better,’” Doran agrees. “We have dozens and dozens of case studies over the years of agencies that have transformed themselves simply by focusing in on a handful of key metrics and putting together a plan to close those performance gaps.” Once you’ve defined where your agency has room for improvement, “it’s a relatively easy matter to unravel the issues,” Doran adds. “That’s the beauty of metrics—they allow you to laser-focus in on the problem and then figure out how to fix it. Benchmarking helps you better understand what ‘normal’ looks like for a well-run company, and then identify where you may or may not be out of sync.” Jacquelyn Connelly is a former IA senior editor. Questions regarding Best Practices should be directed to bestpractices@iiaba.net Agencies that use Best Practices resources benefit from the success some of the nation’s top agencies that have generously opened their playbooks and operations procedures for the betterment and strengthening of the independent agency system. Learn more about Best Practices and get your copy of newly released 2019 Best Practices Study online at independentagent.com/bestpractices.
Congratulations to these Kentucky 2019 Best Practices Agencies Garrett-Stotz Company Louisville
Higgins Insurance Inc Hopkinsville
Houchens Insurance Group Bowling Green
Insurance Service Centers of Southeast Kentucky Inc. Corbin
Lawton Insurance Central City
Moore Insurance Agency Russellville
Peel & Holland Benton
Sterling G. Thompson Company, LLC Louisville
To achieve this status each agency was nominated by either a state association or a carrier partner for the operational excellence, the invitation to participate was sent and the agency moved forward and submitted extensive data and information directly to Reagan Consulting to be scored in the six different revenue categories. Only the top percentage qualified and the annual study is being written based on these high performing agencies.
Winter 2020 - Kentucky IA | 37
© SECURA Insurance
MORE ABOUT CURT • Knows a skid steer from a black angus • Solid Midwest work ethic
KORY • Two decades of insurance experience • Signed a free agent contract with the St. Louis Rams • Knows good coverage from blown coverage • A decade of insurance experience
Most valuable player An original farm boy
Meet Kory, one of our Specialty Lines experts. He and others on his team are in a league of their Meet of ourtoFarm-Ag Hebusiness. and others onsolid his team were so own Curt, whenone it comes insuringexperts. Specialty Their game planfarm and kids fast themselves, turnaround set they’ve first-hand, practical knowledge about It’ssupported the born-andyou up got for big wins. It’s the expertise we look for a infarmer’s a dreaminsurance team. Andneeds. they’re by our raised of expertise we look for inclients a team. Andinthey’re supported by our caring claims group caringkind claims group who’ll get your back the game. so your clients can get back to the work at hand, just like they’ve done for generations.
SECURA Specialty. It’s how you win. secura.net/specialty SECURA Farm-Ag. It’s how you grow. secura.net/farm-ag
Commercial | Personal | Farm-Ag | Specialty Commercial | Personal | Farm-Ag | Specialty
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Classifieds
If you would like to place a classified ad please contact Nikki Robins at nrobins@iiak.org
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 Philip Anderton, CIC, at Sterling G. Thompson, Co. at 502-585-3277
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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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We would like to thank our advertisers for their support. This publication would not be possible without you! Bolton & Company OBC Big “I” Professional Liability 25 Big “I” Markets 28 ClearPath Mutual IFC Guard 8
J.M. Wilson RLI Personal Umbrella Secura Summit West Bend
27 29 38 35 19
For classified ads or to advertise in the Kentucky IA, contact: Nikki Robins, Communications Director at nrobins@iiak.org or call 502-245-5432.
Winter 2020 - Kentucky IA | 39
Are you looking to grow your business? We’re experiencing huge homeowners success and want you to share in that growth! Thanks to all the agents we work with, our homeowners policy business has grown over 350% over the last 3 years. Join us as one of our customers and find out how our great service and rates can help your business grow as well!
The other reason for that growth is we offer a great homeowners product at extremely good rates. • HO3 Coverage available • Prior claims are OK • A Rated company • $100,00 to $10,000,000 in values
Top-notch service is why we’ve been in business for over 53 years. You won’t find quicker rates anywhere else.
Give us a call and compare our service and rates today. Then call your clients and tell them they are covered!
2400 Waterfront Plaza, 325 West Main St., Louisville, KY 40202 502 583-8361 1 800 292-6597 Fax 502 584-6131 www.boltonmga.com
