Kentucky IA - Winter 2021

Winter 2021

INSURANCE IS SEXY: SELL THE SIZZLE, NOT THE STEAK P. 15

KENTUCKY P&C INSURANCE MARKETPLACE SUMMARY P. 21

NETWORKING IS A WASTE OF TIME P. 29 1 | Kentucky IA - Winter 2021

ClearFocus ClearVision ClearPath to

Success Reaffirmed AM Best Rating “A-“ (Excellent) with a Stable Outlook Leading Regional Insurance Company Workers’ Compensation that is Clearly Better

9960 Corporate Campus Drive, Suite 1400, Louisville, KY 40223 t 502.894.8484 | 800.367.5372 | clearpathmutual.com 2 | Kentucky IA - Winter 2021

What's

Page 7

INSIDE

Contents

7 Seven Tips for Selling Insurance from Home 12 Advance your Career with a Designation 15 Insurance IS Sexy!

Page 21

21 Kentucky P-C Insurance Marketplace Summary 29 Networking is a Waste of Time 37 2020 PAC Contributors

In

Every Issue 4 From the Chair

Page 29

5 From the Commissioner’s 39 Advertiser Index Desk 39 Classified Ads 18 Industry Partners 39 Social Media Links 20 Big I News

All advertising and editorial submissions are welcome.

Our

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: info@bigiky.org Fax: (502) 245-5750

20 Upcoming Events

MISSION

Create value for our members through innovative resources and legislative advocacy while fostering industry relationships.

3 | Kentucky IA - Winter 2021

Chair From the

Another year has come and gone...thank Goodness! Typically when the holidays are approaching, we reflect on the passing year… but good riddance 2020. How about New Year’s resolutions? Maybe next year.

Something we all can agree on is writing more insurance in 2021 than we did in 2020. I have 34 years in this business, and it never fails that January makes me want to rekindle that prospecting flame and set our agency up for a good growth year. Did you know the Big I can help your agency succeed? The new IMS program provides great markets for all agencies, the Leadership Conference is also a good time to brainstorm “cutting edge” ideas. In September, we will be holding our Emerging Leader Summit at the University of Kentucky Gatton College of Business. This is an opportunity for Big I members to get ahead of the crowd.

Big I Kentucky has focused on being your “go-to” resource for all things insurance. The group health plan has stayed competitive and Kristie Weyer is always available to answer questions or get you a quote to save you money. She can also assist with a top-of-the-line E&O product from Westport.

Legislative advocacy is always a focus within our association. Kentucky has 28 new representatives and senators coming to Frankfort for their first session. The Banking and Insurance Committee has 20 members with 7 new members. Big I will keep you up-to-date on the latest happenings in Frankfort. Our members need to stay informed and be ready to reach out to a hometown legislator to provide guidance on insurance issues. On the Washington front, the Big I team is working on our behalf to provide information and direction. In 2020, your Big I National staff was recognized for being one of the top lobbying groups on Capitol Hill.

Enough with what Big I Kentucky can do for you, how about the things that you can do to help your association. We need you to stay involved and participate in virtual agency visits so you can take full advantage of your membership and get the most for your money. We need your voice on legislative issues, and we need you to attend, either virtual or in-person, meetings and conferences. Big I Kentucky needs your contributions to KAPAC and INSURPAC every year to make our presence known in the field of Legislative Advocacy.

Our members are involved in every facet of small towns and large cities across our state. I am proud to be an insurance agent, I am proud to be involved in my town and I am very proud to serve Big I Kentucky as Chair for another term.

4 | Kentucky IA - Winter 2021

From the

Commissioner’s Desk Who would have thought in April we would still be in the throes of COVID-19?

Little did I know, when we departed our offices in March and April, we would be working from home for almost an entire year. However, our work goes on, and I am proud that my DOI family continues to meet the challenges presented.

Rate and form filings continue to be reviewed and approved or, sometimes, disapproved by our health/life and property and casualty folks. Our Licensing Division continues to operate accordingly even though we have not been able to reopen testing in Frankfort yet. Investigations by our Fraud Division continue, and our Consumer Protection Division still addresses consumer inquiries/ complaints. Our Financial Standards Division and I participated in our national, five-year accreditation process in September—virtually, of course. I am happy to report we were awarded a full, five-year accreditation status. Good job, folks.

The Department continues to closely monitor COVID-19 in our state and will reissue the guidance for our industry as needed. You can always access that information on our website (www.insurance.ky.gov). We are in close communication with our industry and your Big I associations. Communication is vital right now, and the Department wants that to be a two-way street. If there are issues where we can assist, we need to know, so use that email capability.

The legislative session will soon be here, and while the Department is not proposing any legislation, we are already reviewing bills and providing assistance to our legislators and legislative staff.

To sum it up, life and work go on even during a pandemic, but we have a job to serve the public, the industry and our agents. I want to close by sharing a personal story with you.

Like many of you, I have not been able to see distant family. For me, that includes my daughter, son-in-law, and two grandchildren in Boston, who I have not seen for a year. I am grateful for FaceTime, but it is not the same as in-person hugs. On a recent call, my daughter told me to ask my 2-year-old grandson why he hit his sister earlier that day. His sincere, little face looked at me through the computer screen and said, “Because of the coronavirus.” To no surprise, his pronunciation was a little off.

COVID-19 has disrupted all of our lives, but I am confident that our insurance agents will continue to assist their clients and do the valuable work their clients and the Department of Insurance expect from them. Just know that the DOI recognizes the work you do and how important you are.

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

George Atkins III

National Director, Louisville 502.585.3600

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

Amy Good

Financial Services Director

Katie Hines

Membership Services Director

Taylor A. Lee

Communications Director

Kristie Weyer, CISR

Insurance Services Director

Cassie Young

Workforce Development Director

5 | Kentucky IA - Winter 2021

We are third-generation, family-owned & independent.

Honesty, Integrity & Trust.

We’ve been Doing the Right Thing since 1964.

We are a third-generation, family-owned, independent managing general agency and wholesale insurance broker with a history of valuing and trusting business relationships. Our underwriters and brokers coordinate among specialty teams to meet the needs of multi-faceted risk opportunities, piecing each risk puzzle together for our producers.

We strive to be a premier resource through our core pillars of honesty, integrity, respect and trust.

Managing General Agents | Wholesale Insurance Brokers

Let us help you find the right solutions.

800.878.9891 ArlingtonRoe.com

Aviation | Bonds | Cannabis | Casualty | Commercial Agribusiness | Farm Healthcare & Human Services | Personal Lines | Professional Liability | Property | Transportation | Workers’ Compensation 6 | Kentucky IA - Winter 2021

7 Tips for Selling Insurance From Home By: Cody Askins

1 HAVE A CONSISTENT LEAD FLOW

You need some type of lead flow. Whether that means buying digital leads, live transfers, direct mail leads or creating your own leads, it doesn’t matter. The point is you must have a steady and consistent lead flow if you want to be successful selling insurance over the phone.

2 KEEP YOUR ACTIVITY HIGH

Most agents will never put in the amount of dials and overall effort it takes to be successful in telesales and selling insurance over the phone. Keeping your activity high is a great way to stay ahead of your competition and is a way to make sure you have had a successful day. You may not always want to make that extra dial or send out another follow up text or email but could be a way for you to find success selling insurance over the phone.

3 LEARN TO FOLLOW UP

Like I just mentioned, following up is such a critical yet often overlooked part of the insurance business – especially in telesales. I teach a “12 Touch Follow-Up System” in the first 72 hours of receiving or generating a lead. This is how it works:

Day 1: 3 Calls. 1 Text, & 1 Email Day 2: 2 Calls. 1 Text, & 1 Email Day 3: 1 Call. 1 Text, & 1 Email

80% of sales happen between the 5-12 contact, yet most insurance agents only call a lead once or maybe twice. If you want to be successful selling insurance from home, mastering the follow-up is crucial.

4 HAVE A GREAT SCRIPT

You need a great script and overall system when selling insurance from home. Having a good script can take a lot of the guess work out of the equation and make you sound much more polished and professional over the phone. Avoid sounding like a robot though! Play around with the way you say certain words or say certain phrases with a different cadence in your voice. People can tell if you’re reading a script, so it’s important you master your words so that they can never tell!

5 STAY IN CONTROL

You must gain control of the phone call – and no, I do not mean just talking more than the prospect!

Great salespeople ask questions, listen and steer the path of the conversation.

6 BUILD A RELATIONSHIP

Insurance sales is a relationship business. You need your prospect to know, like and trust you in order to make a sale, which is even harder to do when selling completely over the phone. Take the time to get to know the person and build a relationship and you will see the difference it makes!

7 | Kentucky IA - Winter 2021

7 ASSUME EVERY STEP OF THE WAY

From the beginning, assume they are going to answer the phone. Assume they will love talking to you and assume they are going to buy! If you already have a pre-conceived notion you are bothering them or they’ll probably just hang up on you like the last person did, you have already failed. Go into each new call as if you are talking to a person who is going to be your next client!

Cody Askins is the founder and owner of Secure Agent Leads, 8% Nation Insurance Wealth Conference, Cody Askins Insurance Training & co-owner of Secure Agent Marketing. He was born in the state of Arkansas, but has been in the Southwest Missouri area for the last 17 years. He attended and graduated at Baptist Bible College with a Bachelor’s Degree in Business Management. While attending college, and playing basketball for his college team, he decided to go full time in the insurance business.

8 | Kentucky IA - Winter 2021

9 | Kentucky IA - Winter 2021

BROUGHT TO YOU IN PARTNERSHIP WITH

Cybersecurity & insurance to keep your business safe Coalition is the best way for a company to manage cyber risk. We provide comprehensive insurance coverage, free cybersecurity tools to monitor and protect your business, and 24/7 expert incident response to help you quickly respond to a cyber incident.

Hackers are smart, breaches are common, accidents happen.

You need the most comprehensive protection. That’s Coalition.

State-of-the-art cybersecurity

Best-in-class cyber insurance

Our cybersecurity platform includes 24/7

We protect the value of your entire business

security monitoring, automated security alerts,

including financial, intangible, and tangible

employee training, and access to security experts to prevent cyber incidents before they occur

damage with up to $15M of the most comprehensive cyber insurance

The most innovative and comprehensive coverage available Coalition covers more of the financial, tangible, and intangible exposures your business faces as than any other insurance company.

Ransomware

Wire Fraud & Social Engineering

Phishing and Data Breaches

A hacker has encrypted all of your files

A funds transfer request is sent to your

A hacker gains access to an employee’s

and won’t unlock them until you pay a

controller by someone pretending to

email or breaches your network. We’ll

ransom. Not to worry, we’ll cover the

be your CEO. The funds may be out

cover costs to fix the problem and

costs to restore your data and get you

the door, but at least you’re not out of

breach related expenses such as credit

up and running again.

pocket—we’ve got you covered.

monitoring and regulatory penalties.

Coalition, Inc. · 1160 Battery Street, Suite 350, San Francisco, CA 94111 · coalitioninc.com Insurance products underwritten by Coalition Insurance Solutions, Inc. (CA License # 0L76155).

Copyright © 2020. All rights reserved. Coalition and the Coalition logo are trademarks of Coalition, Inc. or its affiliates.

BROUGHT TO YOU IN PARTNERSHIP WITH

Don’t just protect your network, protect your business We offer a full suite of security apps including 24/7 security monitoring, automated threat and intelligence alerts, DDoS mitigation, security benchmarking, ransomware protection, employee training, patch reminders, and more—included with each policy at no additional cost.

We’re here for you when you need us most Incidents happen, which is why you have insurance in the first

“I never thought I’d say I was passionate

place. Coalition is the only insurance firm with a dedicated

about an insurance platform, but what you

24/7 incident response and claims team to help you quickly

guys have built is exceptional.”

respond to an incident. Join thousands of other organizations

— VERIFIED COALITION POLICYHOLDER

who rely on Coalition to provide emergency first response.

The capabilities of Coalition. The financial backing of Swiss Re, Lloyd’s of London, and Argo Pro US. Coalition’s insurance products are offered with the financial security of Swiss Re Corporate Solutions, Lloyd’s of London, and Argo Group (A+, A, and A- ratings, respectively, by A.M. Best).

Ready to protect your business?

To learn more visit www.bigiky.org * Consult your quote or policy for specific carrier information.

Coalition, Inc. · 1160 Battery Street, Suite 350, San Francisco, CA 94111 · coalitioninc.com Insurance products underwritten by Coalition Insurance Solutions, Inc. (CA License # 0L76155).

Copyright © 2020. All rights reserved. Coalition and the Coalition logo are trademarks of Coalition, Inc. or its affiliates.

11 | Kentucky IA - Winter 2021

ADVANCE YOUR CAREER WITH A DESIGNATION

CRM : CERTIFIED RISK MANAGERS The Certified Risk Manager (CRM) designation demonstrates that you are knowledgeable in all areas of managing risks, hazards and exposures.

Control of Risk February 17-18, 2021 $440.00 Topic

Date

Time

Join Webinar

Feb 17, 2021

07:45 AM-08:00 AM

Risk Control and Mitigation Human Resources

Feb 17, 2021

08:00 AM-12:15 PM

Lunch

Feb 17, 2021

12:15 PM-01:15 PM

Risk Control and Mitigation Property & Liability

Feb 17, 2021

01:15 PM-05:15 PM

Exam Briefing

Feb 17, 2021

05:15 PM-05:30 PM

Join Webinar

Feb 18, 2021

07:45 AM-08:00 AM

Crisis & Disaster Planning

Feb 18, 2021

08:00 AM-12:00 PM

Lunch

Feb 18, 2021

12:00 PM-01:00 PM

Claims Management

Feb 18, 2021

01:00 PM-05:00 PM

“

Speaker Mark Gaskamp

CIC, CRM, CPCU, ARM, CSP, ALCM

Mark Gaskamp

CIC, CRM, CPCU, ARM, CSP, ALCM

Graham P. Kenyon CRM

Graham P. Kenyon CRM

For more information, visit www.bigiky.org/Education/Pages/Designations

I chose to get my CRM because the role of the agent is ever-changing and the client is getting more sophisticated everyday given the availability of information. I wanted to better understand the 5 steps of risk management in an effort to let my clients identify and manage not only the current risks but what emerging risks were in their industry.

The CRM courses gave me a vantage point and skills to better serve all of my clients no matter the industry or their level of sophistication.

12 | Kentucky IA - Winter 2021

Philip D. Anderton, CIC, CRM

CLCS COMING TO ABEN ON-DEMAND! The CLCS (Commercial Lines Coverage Specialist) designation program was created with the learning needs of new insurance producers, agents, managers, CSRs and corporate staff in mind, it is the most complete professional learning program available for industry professionals seeking to master the subject of commercial lines coverage.

COURSES:

“

• • • • •

Insurance Principles- 1 hr CE Commercial General Liability – 3 hr CE Business Auto- 1 hr CE Commercial Property- 3 hr CE Workers Compensation- 1 hr CE

members:

$699.00 non-members:

$749.00

For more information, visit www.bigiky.org/Education/Pages/Designations

The CLCS designation was important for me on many levels.

As a new producer, not only did I need to garner as much insurance education as possible, but I also needed it to tie in closely with who I would be serving from the get-go—small commercial clients. This designation helped put me on a fast track to learning what I needed to best protect and educate myself and my clients.

Adam Sheridan, CLCS

The new CRC Indianapolis office is your Midwest insurance solution.

Aimee Stumler

Joni Denny (Garage)

P 317.581.3243 E astumler@crcgroup.com

P 606.260.4018 E jodenny@crcgroup.com

Indianapolis Office

crcgroup.com

450 E. 96th Street Suite 500 Indianapolis, IN 46240

13 | Kentucky IA - Winter 2021

Pamper your customer’s business with a policy from West Bend.

Your customers gave their business what it needed to grow to the pride and joy it’s become. Now help them nurture it. An insurance policy from West Bend is the best way to keep it happy, healthy, and profitable.

So wrap it in the cozy warmth of the Silver Lining®.

INSURANCE IS SEXY Sell the Sizzle not the steak Chris Boggs

Right off the bat, I know the title isn’t politically correct; but that has never stopped me before.

If you’ll hang with me, hopefully you won’t be so upset when I’m done.

This is not a complete list of the neat things I’ve experienced, but I have some great stories to tell – all because of my forced-into-yet-ultimatelychosen career. Tell me this stuff isn’t sexy.

According to the experts, our industry is in almost immediate need of nearly 400,000 new workers due to retirements and other transitions. However, many hiring managers say the industry is having the same problem it has always had – insurance is not sexy.

When I talk to many of my friends in the industry, they tell me the same types of stories.

Well, I beg to differ!

Insurance is the sexiest profession out there!

During my time in this great industry: • I have had the opportunity to tour areas of museums not open to the public. Kept in these areas are the displays that are NEVER seen by the public; • I’ve had the opportunity to see how many products are made – something few others ever see; • I’ve gotten stuck in a basement with no way out (and a hole in the middle of the floor no one knew how deep it was); • I’ve seen corpses drained and embalmed; • I’ve had to learn about various facets of electrical engineering, hydraulics and fire protection; • I’ve had the opportunity to investigate a fire loss in which a Smokey the Bear costume was burned up (a certain amount of irony); • I’ve seen the oil changed in a locomotive engine; • I learned about arson investigations; • I’ve insured operations involved in top-secret government projects; and • I taught an insurance class in England.

Yes, insurance has a lot of legal language, statutes, numbers and guidelines, but there are also a lot of very cool aspects we never talk about with those looking for a career.

If you go into a high school or onto a college campus to recruit for the industry and you focus on the idea that “insurance is a good, steady career,” or “you can help people avoid financial disaster,” you will mostly be ignored. While all of this is true, it’s boring.

However, if you go in and tell them how your fraud investigation team helped break up a multi-state theft ring or how you insure a unique operation and have access to parts of the operation few others ever get to see, this will attract the talent.

Those in the insurance industry know we get to experience a whole lot of unique things and meet a whole lot of unique people. We just need to tell the stories more effectively. Sell the sizzle, not the steak.

Yes, we are necessary for society, we take care of people and we deal with contracts – but that is all boring. Beyond the mundane, we get to see and experience things people in most other industries do not. This is what makes insurance sexy.

Chris Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS, is a veteran insurance educator.

He is Executive Director, Big I Virtual University of the Independent Insurance Agents and Brokers of America. He can be reached at chris.boggs@iiaba.net.

15 | Kentucky IA - Winter 2021

Skimping on your agency risk management efforts and ...hoping for the best?

A little risk management goes a long way in protecting your future.

One false move can land your agency in court facing a professional liability lawsuit, costing you valuable time, energy and resources. But many common missteps can be easily avoided. Big “I” Professional Liability provides the E&O Happens Risk Management Website, featuring more than 700 pages of insurance agency risk management information, available exclusively, and at no cost, to Big “I” members. Features include:      

Claim examples - See benefits of when protocols are followed and what happens when they aren’t.

Risk management articles - Research case studies providing advice on mitigating or avoiding E&O claims. E&O Claims Advisor newsletters - Read archived newsletters providing tips to all positions in the agency.

Sample disclaimers - Use these tools to help manage customer expectations and aid in defense of E&O claims.

Sample customer letters - Facilitate file documentation by confirming client discussions.

Webinars and podcast archive - Access discussions of hot topics influencing agents’ exposure to lawsuits.

Log into www.iiaba.net/EOHappens.

11/2020

16 | Kentucky IA - Winter 2021

17 | Kentucky IA - Winter 2021

Thank You

2021 Industry Partners

BRONZE

GOLD

SILVER

PLATINUM

DIAMOND

(as of 1/1/21)

JM Wilson Auto-Owners Insurance EMC Insurance Companies RT Specialty Westfield Conferences

Kentucky Growers Insurance Co., Inc. Imperial Premium Finance Services

ICW Group Anthem Blue Cross Blue Shield Selective Insurance Grange Insurance Frankenmuth

Big I Kentucky gratefully acknowledges these fine companies, our 2021 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.

TO BECOME A SPONSOR OR FOR MORE INFORMATION ABOUT OUR INDUSTRY PARTNER PROGRAM, PLEASE CONTACT TAYLOR LEE, COMMUNICATIONS DIRECTOR, AT 502-245-5432 OR TLEE@BIGIKY.ORG 18 | Kentucky IA - Winter 2021

Commercial | Personal | Farm-Ag | Specialty

Joy, Personal Lines Underwriter

Jeri, Specialty Lines Underwriter

Tyler, Farm & Agribusiness Lines

Underwriter

Honest relationships SECURA’s team of insurance experts is making insurance genuine.

They are here to support you and your clients. Our underwriting teams are quick to reply, open-minded, and know their stuff. Plus they are backed by our caring claims group who will get your clients back on their feet.

Lisa, Kentucky Sales Manager

Marc, Commercial Lines Underwriter

Hear from our experts.

Want to learn more about what SECURA has to offer? Scan the QR code or visit secura.net/ky-agents for more information about the SECURA team.

Interested in building a relationship?

Contact us at secura.net/contact.

19 | Kentucky IA - Winter 2021

UPCOMING EVENTS

BIG I NEWS

CRM

February 17-19, 2021 Hilton Garden Inn Louisville Northeast

NEW MEMBER WELCOME

LEADERSHIP CONFERENCE

AGENCY

May 10-12, 2021 Embassy Suites Northern Kentucky

Price Point Insurance Services Black Diamond Insurance Group

AWARD-WINNING MEMBERS 93 MEMBERS WITH OVER 40 YEARS EXPERIENCE Tom Stickler

Alan Ramsay

Beverly Hatfield

Phyllis Earlywine

Sandy Downs

Chris Houk

Gary Thornsberry

David Houk

Fred Foltz III

Stan Gentry

Robert Shipp

Deborah Cordle

Alex LaRue

Jeanine Fowler

Terri Knight

Jean Salyer

Linda Hoard

Jack Martin

Jay Hall

Stephen Parrish

Tom Smith

Lee Askew

Tim Murphy

Peggy Kroger

Kimberly Phillips

Mike Hepp

Kevin Desmond

Cyndee Pedersen

Gary Mabry

Martin Upchurch

Bobby Clarkson

Karen O’Hara

Buddy Underwood

Donna McCarty

Rusty Wessel

Dick Clark

Paul Reynolds

Cherie Brewer

Jeffri Northcut

Linda Cole

Raymond Nelson

Ron Smedley

Bob Fletcher

Frank Rassiga

Gary Criscillis

E. David Meena

Agnes Yates

Charles Fox

Tallu Smith

Missy Harlow

Bobby Wilson

Bradford Blain

Sue Orth

Mark Stephens

Tim Hyland

Brenda Berryman

Sandra Blain

Scott Pippen

Russ Wardlaw

Stan Logan

Debbie Hunter

Mark Bruckert

Greg Stickler

Rob Wessel

Deborah Perry

Bill McCarty

Melinda Cornell

Jean Troll

Mary Britt

Kimberly Quintela

Fran Ramsey

Mark Dexter

Sheila VanMeter

Joan Close

Lindy Suiter

Buddy Wilson

Kenneth Goins

Ethel Welsh

Lynn Colyer

Lisa West

John Dyer Carr, Jr.

Ruth Kirkpatrick

Tom Wheeler

Tim Conder

Joseph Wheatley

Joan Gibson

Vicki Frye

Malcolm Blane

Alma Cornett

Cindy Williams

Miller Hoffman

Linnie Claywell

Jim Brown

Jerry Ditsler

CONGRATULATIONS, JEFFRI NORTHCUT! She is retiring from Hyland Insurance in Louisville after 40 years in the industry.

Have any GOOD NEWS to share from your agency or your participation in your community? We would love to hear!

We can promote your success in our magazine and on our social media. Contact Taylor Lee at tlee@bigiky.org or give us a call at 502-245-5432.

20 | Kentucky IA - Winter 2021

MARKETPLACE REPORT

Kentucky Property-Casualty Insurance Marketplace Summary DECEMBER 2020 P-C Insurance Industry Analysis Provided by:

Check out this sneak peek of information. You can get the full report at bigiky.org.

Real Insurance Solutions Consulting, LLC Paul A. Buse, Principal realinsurancesc.com 301.842.7472

_________________________________

BIGIKY.ORG © 2020, Big I Kentucky. All rights reserved.

21 | Kentucky IA - Winter 2021

Kentucky vs. National Agent Premiums, by Line

Source: © A.M. Best Company — used by permission.

22 | Kentucky IA - Winter 2021

© 2020, Big I Kentucky. All rights reserved.

Kentucky vs. National Total Premiums, by Line

Source: © A.M. Best Company — used by permission.

© 2020, Big I Kentucky. All rights reserved.

23 | Kentucky IA - Winter 2021

Kentucky Total - All Lines of Business (LOB)

IA Distribution-Average: 47.0% IA Trend Ave. Loss Ratio 4.6% 60%

All Premium Trend 3.9%

2019 Loss Ratio 58%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019) Insurer Group

Direct Premium-This LOB

2019 Loss Ratio

Direct Premiums-All LOBs *

Kentucky Farm Bureau Group (G)

$1,078,353,000

61%

$1,078,353,000

State Farm Group (G)

$1,055,769,000

59%

$1,055,769,000

$565,586,000

56%

$565,586,000

Liberty Mutual Insurance Companies (G) Progressive Insurance Group (G)

$418,197,000

59%

$418,197,000

Allstate Insurance Group (G)

$296,684,000

46%

$296,684,000

Top Independent Agent Policy-Issuing Insurers (2019) Insurer Name

Direct Premium-This LOB

Commission Paid

Progressive Casualty Insurance Company

$158,752,000

11%

Insurer Group (“…” is No Group) Progressive Insurance Group

Kentucky Employers’ Mutual Ins Authority

$158,457,000

10%

...

Cincinnati Insurance Company

$147,925,000

18%

The Cincinnati Insurance Companies

Auto-Owners Insurance Company

$130,304,000

17%

Auto-Owners Insurance Group

Safeco Insurance Company of Illinois

$102,440,000

13%

Liberty Mutual Insurance Companies

Source: © A.M. Best Company — used by permission.

24 | Kentucky IA - Winter 2021

© 2020, Big I Kentucky. All rights reserved.

IA Penetration All Lines of Business

Source: Š A.M. Best Company — used by permission.

Here we see the percentage of p-c industry premiums that are going to independent agents. This highlights the room for IA growth in several lines.

This measure is attained by dividing the total direct written premiums for each line of business written by insurers that are designated as using independent agents by the total of all premiums for all insurers in that line of business.

Š 2020, Big I Kentucky. All rights reserved.

25 | Kentucky IA - Winter 2021

Commissions

Source: © A.M. Best Company — used by permission.

Commission Rates are a calculated based on a page in insurer Yellow Books called “Exhibit of Premiums and Losses (Statutory Page 14).”

Once a year, insurers break-out all LOBs by state and provide 12 columns of data on each based on direct written premiums by state. Along with direct premiums written, direct premiums earned and direct incurred losses also provided is commissions and brokerage expenses.

By dividing commissions and brokerage expenses by direct premiums written for each of the above LOBs, the average commission paid in Kentucky is obtained.

We’ve shown top lines of business in Kentucky.

26 | Kentucky IA - Winter 2021

© 2020, Big I Kentucky. All rights reserved.

Behind the Report DATA SOURCE The source of the data presented is A.M. Best and its Financial Suite, a system that offers a view of industry data via various industry and custom reports. In this report for you, standard industry reports and customized reports are combined and manipulated to arrive at the various agent-focused presentations of data. A.M. Best obtains this data on individual insurers from the required filings with state regulators. You may be familiar with the term “Yellow Book” for the annual statement required to be made by p-c insurers with their primary regulator. That is where this data comes from. Historically, insurers in different insurance categories had a designated color for their annual reports—such as yellow for p-c or blue for life.

READING THE DATA An aspect of U.S.-based insurer filings is the required delineation of data by “Lines of Business” (LOBs).

These LOBs are standardized for all insurers. LOBs are also often grouped by similar LOBs as they are tracked as part of annual statements. As some LOBs are overly specific (for example, automobile physical damage is separate from automobile liability), it is logical to combine some of these lines. In other cases, the individual lines are often so small they have been combined with other smaller lines in the results. Fire & Allied lines is a good example of that sort of LOB combination. In all cases, the goal of this summary is to present the LOBs data to align with insurance agency operations, marketing strategies or staff assignments. If a combined LOB represents important subsidiary LOBs or another analysis of a more specific LOB is needed it is broken out at the end of this report as an appendix.

For the most significant LOBs, five years of premiums and adjusted loss ratios is provided with all Kentucky premiums written in the state contrasted with premiums written through insurers using independent agents. The designation of an insurer as using independent agents is as determined by A.M. Best. Total premiums for the LOB in the state is dark blue and the independent agent portion of those premiums is shown in light blue. Loss ratios for the LOB are shown in red. It should be noted that the loss ratios shown are adjusted calendar year loss ratios. That means for each LOB the losses used in the ratio of losses to earned premiums are the paid losses that year, plus any estimates of future losses that will be paid from claims that year (also known as “reserves”) plus any changes in “reserves” from prior years. The “adjusted” part is if dividends are paid out under an LOB, the loss ratio is adjusted for that cost.

QUESTIONS? ASK THE EXPERT P-C Insurance Industry Analysis Provided by: Real Insurance Solutions Consulting, LLC Paul A. Buse, Principal realinsurancesc.com 301-842-7472 27 | Kentucky IA - Winter 2021

28 | Kentucky IA - Winter 2021

networking is a waste of time Mark H. Maxwell

The “heart” of networking is rooted in selfishness, taking and using; while the great leaders all teach us that true success comes through serving.

College freshmen are lectured about it on their first day of class. Young professionals race to one more boring party so they can be seen and shake hands with someone that might be able to help them — just like the business books and podcasts have instructed. Young musicians are chronically obsessed and depressed with their number of likes, views and followers on social media.

Today, for almost any definition of success we might identify, one common path to achieve it is being shoved down our throats. That road to success is called networking. Networking is defined as the cultivation of relationships that can help us advance or move to a higher position. The key takeaway from this definition is anything valuable in life which involves relationships — be it business, marriage, charity work or entertainment – is only attainable by networking.

There are serious problems with this single path to success. Of course, we do need others — “real” relationships and collaboration are so important. So, how can we cultivate those and bypass all the ineffective networking garbage?

THE ANSWER IS SERVING.

Anybody can be great because anybody can serve.

Martin Luther King, Jr.

Don’t live for yourself. That is too easy. You will gain nothing from that endeavor. Live for others. That is where you will find true riches in life.

Scooter Braun

See, the “heart” of networking is rooted in selfishness, taking and using; while the great leaders all teach us that true success comes through serving — giving generously and loving others without reservation.

1 2

So, what happens when you focus on serving instead of networking? Here are five key things:

SERVING ERASES CONFLICT

SERVING CREATES PURPOSE

30 | Kentucky IA - Winter 2021

When your work is done with care, compassion and humility, conflict evaporates. As a music business attorney, I sometimes find myself in tough negotiations with some arrogant attorneys who cause our dealings to get “heated and personal”. Many of them tower over me with wealth, intellect and recognition, so it can be easy to get intimidated. But, I have learned over the years to respond to them by serving, not by throwing more heat on the fire or putting on my boxing gloves. Humility, genuine interest and compassion for my opponent are the mighty equalizers.

With those, “my” heart changes toward them, “their” heart changes toward me and the logjam is supernaturally removed often immediately.

When your work is centered on others, purpose is found. When my son Harrison turned 16, we handed down to him my Black 1989 Range Rover that we affectionately call “The Beast,” and he and I started talking about potential summer jobs that would help him pay for his gas and other costs. I began naming a few places he could apply: Chick-fil-A? “Boring.” How about that new Publix? “That would be really boring.” How about the Juice Bar. “Nah, kind of boring.” Finally, I stopped him. “OK, enough with the “boring.” I want to help you get a fresh vision and purpose for your first job. You must see this first job (and every job) as a place to serve others — not as a place for you to get your emotional needs met.” Ask the question, where is a place that is filled with people that need me and my gifts? Then, step into that place desiring to bring life and joy to customers and co-workers, and you will have a true purpose that enables you to get through the tough days at any job. It’s important to remember: there is no dream job, but serving can create purpose and contentment that can make even the most difficult job feel like a dream. Oh, by the way, he nailed a job at Starbucks!

3

SERVING CREATES VALUE FOR YOU AND OTHERS

4 5

SERVING CREATES PROVISION FOR YOU AND OTHERS

SERVING CHANGES THE THE WORLD BECAUSE BECAUSE IT CHANGES OTHERS

We live in a world where you can be famous for being famous. The popularity of social media faces like the Kardashians is misleading us. What have they created? What value have they brought to the world? It’s easy to buy into the promise that “if you want to attract new clients or build something, you have to make yourself visible.” A few years ago, I booked a flight to Austin to spend a week at the South By Southwest music festival — hundreds of bands — with my sole purpose of finding new band clients. I spent loads of money, handed out lots of business cards, shook hands and met so many people. I came back to Nashville and never received one single new client from the trip. What happened? On reflection, I realized I missed so many opportunities to love and serve others that week, because my focus was only on me, my needs, my business and not on the needs, brokenness and businesses of those with whom I was rubbing shoulders. You see: “I was trying to make myself visible, SERVING is about making ourselves available.”

Giving Value Lasts.

Serving gives and attracts while networking takes and repels. “The Best Marketing Plan” for your product or business comes through genuine love, generosity and care for others. When you build relationships on those themes, without strings attached, you open up a stream of provision that flows both ways. I have given free legal work to a client who could not afford to pay and watched him become my highest billing client a few years later. This is a spiritual principle on which you can stake your business, your relationships and your life. It never fails.

The world calls it karma, but God calls it planting and harvesting.

We all want to leave a mark, but sometimes our dreams seem so out of reach. They could be beyond our education, age, abilities, resources and networks. What is the key? Start small. When I start getting frustrated with my impact on the college campus where I teach, my wife, Carol always reminds me, “It’s one student at a time.” Find someone who is lonely, someone hurting and shine a light on that person. Just change one. Then, do it again. You don’t need a license to change someone. You just need to care.

31 | Kentucky IA - Winter 2021

In a world filled with hate and disconnection, SERVING astounds the world. A few months ago, the comedian Sarah Silverman did just that. She had a Twitter troll lash out at her with a strong hate remark. Instead of ignoring his bait or fighting back, she publicly tweeted back with compassion and concern for his emotional needs and back pain. Their conflict evaporated. Thanks to Sarah’s response, there were doctors lined up to help treat this man’s back disease.

Life moves pretty fast. We must make every conversation count.

Be real. Be truthful. Be sensitive to the needs of others! Our days are limited.

Mark H. Maxwell is the author of the new book Networking Kills: Success Through Serving. He is also an entertainment attorney, music business veteran and college professor. As a lawyer, Maxwell represents a diverse roster of recording artists, celebrities, record labels, music publishers, authors, songwriters, and producers. As a professor in Belmont University’s prestigious entertainment business and songwriting program, he created their popular course on Bob Dylan and teaches courses on music business, faith and culture, and copyright law. Maxwell is passionate about serving as a mentor to the next generation of creatives and entertainment business professionals. He lives in Nashville with his wife and children.

AmGUARD • EastGUARD • NorGUARD • WestGUARD

Commercial Insurance Solutions We offer insurance solutions for small, medium, and large businesses with competitive pricing, an easy submission process, and the opportunity for multi-product discounts.

Visit www.guard.com to see what we can do for you.

Businessowner’s Commercial Auto Commercial Umbrella Homeowners

Personal Umbrella Professional Liability Workers’ Compensation Pay-As-You-Go options with over 200 payroll partners!

Not all Berkshire Hathaway GUARD Insurance Companies provide the products described herein nor are they available in all states. Visit www.guard.com/states/ to see our current product suite and operating area.

APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY/

32 | Kentucky IA - Winter 2021

RETIREMENT SERVICES.

RETIREMENT SAVINGS MADE EASY, PEASY LEMON SQUEEZY...

DENTAL, TOO!

WE COULD ALL USE A LITTLE SIMPLE IN OUR LIVES If you have 100 employees or less and want a retirement savings plan that is straightforward and virtually effortless, the lesser known Simple IRA plan ϐits the bill.

When compared to a 401(k) Plan, a Simple IRA is an easy to administer plan that provides the same underlying savings features of the 401(k) plan but with a streamlined design that reduces the amount of administrative efforts with no annual compliance testing or 5500 ϐiling.

IIABA’s Big “I” IRA Program has partnered with administrative service provider iraLogix to provide state of the art administration along with low cost investments from a variety of fund families including

the ever-popular Prudential Stable Value Fund.

Additional beneϐit programs are available for you and your employees through the Big “I” including: The

BIG I MEP 401k Plan life insurance Group short- and long-term disability Group dental Group vision Group

Our programs are designed to meet the needs of Big “I” members with maximum ϐlexibility at a competitive cost.

Reach out today to see how easy peasy it can be!

Contact IIABA’s Christine Munoz at christine.munoz@iiaba.net, or visit www.independentagent.com and click on “Retirement.”

Empowering Trusted ChoiceÂŽ Independent Insurance Agents.

Your customers will love what the RLI Personal Umbrella can deliver!

JM Wilson 100th KY Indep Agent CMKY outlines.indd 1

RLI’s A+ rated, stand-alone Personal Umbrella policy has stood the test of time. You asked us to find ways to make our umbrella policy available to more of your customers.

And we listened.

35 | Kentucky IA - Winter 2021 4/3/20 8:23 AM

MEMBERSHIP MEANS MARKET ACCESS Let’s face it – Independent agents need good markets to be competitive. Greater access means more opportunities for success. WE’RE HERE TO HELP. Independent Market Solutions creates company relationships for agents who may be unable to secure appointments on their own.

Through association membership, agents can access multiple insurance carriers and grow their business into long-term, direct appointments.

VISIT WWW.IMSACCESS.COM TO LEARN MORE. 36 | Kentucky IA - Winter 2021

Thank You 2020 PAC CONTRIBUTORS KAPAC

SECRETARIAT ($1,000) Gary Criscillis* Ross Richey*

SEATTLE SLEW ($500) Philip Anderton* Kevin Desmond* Prentice Harvey William Latta* Aaron LaRue* Alex LaRue* Mark Linkous* Dustin Miller Roy Riley* Ray Robertson* James Roe* Robert Shipp*

WAR ADMIRAL ($250) Chip Atkins* Allen Crawford* Bob Detherage* Joseph Dever* James England* Neel Ford* Steve Ford Jay Hall* Miller Hoffman* Phillip Hunt* Michael Johnson* David Livingston Stan Logan* Adam Murphy* Tara Purvis* Eric Schumacher* Kimberley Wilson* Hope Yager* Laura Yount*

CITATION ($150) Chandler Cohoon* Tim Conder* Whitney Floyd* John Funkhouser* Norman Hatter* Andrew Kearns Brody Layton* Tim Murphy* Jared Pursley* Nicholas Rolf* Adam Sheridan* Danny Yackey*

AFFIRMED ($100) Charles Adams* Tommy Adams* Bradford Blain* Robert Blain* Sandra Blain* David Clarke* Jordan Clarke Virginia Goff* Danny Greene* Jeffrey Greer* Dennis Desmond* Michael Hepp* Sharon Hill* David Houk* Diana Hunt* Terry Hyland* Stephen Keen* Stephen Kinkade* Jack LaRue Michelle Love* Dwayne Loy* Skip McGaw* Danny Neely* John Nix Purdom* Carolyn Reynolds* Kurt Turner Chris Wiseman*

OTHER

Hamilton Alverson Brenda Berryman* Michael Bowling Caitlin Burbick-Thomas Virginia Danner Lisa DeWitt Phyllis Earlywine* Stan Gentry* Jeremiah Hale Ann Heidemann Katie Hines* Robert Horton Susan Keffer* Katlin Eldersma Lori Linville-Cobb* Jennifer Lucas Paula Pfister* Crystal Reid* Stephanie Robertson* Donna Schlie* Lisa Switzer* Cheryl Thornsburg* Steve Tobin* Ashley Welsh* Ethel Welsh*

INSURPAC Keith Riley

Ryan McCarty Tim Murphy* William Stiglitz III Laura Yount*

GOLD CLUB ($500-$999)

CONTRIBUTOR ($1-$149)

CENTENNIAL CLUB ($1,000+) Ross Richey*

Philip Anderton* Malcolm Blane Robert Clarkson Gary Criscillis* Mike Davis Phillip Hunt* Stephen Kinkade* Aaron LaRue* Alex LaRue Roy Riley* James Roe*

PIONEER CLUB ($250- $499) Chip Atkins* Brad Bolinger Allen Crawford* Kevin Desmond* Joseph Dever* Stuart Ferguson Neel Ford* John Funkhouser* Jay Hall* Miller Hoffman* Michael Johnson* William Latta* Mark Linkous* William McCarty J. Theodore McClain Adam Murphy* Danny Neely* Tara Purvis* Ray Robertson* Eric Schumacher* Robert Shipp* Robert Wessel Andrea Yager*

FOUNDERS CLUB ($150-$249) Joe Barnes Bradford Blain* Sandra Blain* Tim Conder* Whitney Floyd* Norman Hatter* Sharon Hill* John Ison Stanley Logan Jr.

Charles Adams* Tommy Adams* Brenda Berryman* Robert Blain* George Burks II David Clarke* Lori Cobb* Chandler Cohoon* Dennis Desmond* Bob Detherage* James Downing Phyllis Earlywine James England* Stan Gentry* Virginia Goff* Jeffrey Greer* Chad Hennessey Michael Hepp* Stephen Hill Katie Hines* David Houk* Diana Hunt* Terry Hyland* Stephen Keen* Susan Keffer* Brody Layton* Ronald LeMaster Michelle Love* Dwayne Loy* Skip McGaw* Paula Pfister* Charles Polin John Nix Purdom* Jared Pursley* Reginald Rand Crystal Reid* Carolyn Reynolds* Stephanie Robertson* Nicholas Rolf* Bart Rowland Donna Schlie* Adam Sheridan* Lisa Switzer* Cheryl Thornsburg* Steve Tobin* Ashley Welsh* Ethel Welsh* Kimberley Wilson* Chris Wiseman* Danny Yackey*

37 | Kentucky IA - Winter 2021

in case you missed it...

38 | Kentucky IA - Winter 2021

Social Media Are we friends?

Follow us on your favorite social media sites.

Classifieds Acquisitions Established Louisville agency interested in acquiring insurance agencies in Jefferson and surrounding counties. If you are interested in selling, merging, or need assistance with perpetuation, we would like to talk with you in confidence.

Call R. Alex Rankin, CPCU or Philip Anderton, CIC, at Sterling G. Thompson, Co. at 502-585-3277

Facebook

facebook.com/bigiky facebook.com/ELofIIAK

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.

Instagram

instagram.com/bigiky

LinkedIn

linkedin.com/in/bigiky

Twitter

twitter.com/bigikentucky

Advertisers We would like to thank our advertisers for their support.

This publication would not be possible without you!

Arlington/Roe Bolton & Company Big “I” Professional Liability Big “I” Markets Big “I” Retirement ClearPath Mutual CRC Group

6 BC 16 17 33 IFC 13

Guard IMS J.M. Wilson RLI Personal Umbrella Secura Trusted Choice West Bend

32 36 35 35 19 9 14

For classified ads or to advertise in the Kentucky IA, visit bigiky.org/magazine or call 502-245-5432.

39 | Kentucky IA - Winter 2021

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 40 | Kentucky IA - Winter 2021