e-Insight - August 2022 - Member by Big I Illinois

AUGUST 2022

INSIGHT October 4-6 • Crowne Plaza, Springfield, IL

Plus

Education & Training for Staff Retention Should We Reward Employees for Learning? Can Continuing Education Lead to More Sales? Investing in Your People Can Lead to Big Returns

INSURANCE PROGRAM MANAGERS GROUP CLAIMS MANAGEMENT SERVICES

IN THE WORLD OF INSURANCE, CLAIMS DO HAPPEN. IPMG’s Claims Management Services division (CMS) is that partner. As a full-service claims management company, IPMG CMS accepts the responsibility and expects to be held accountable for the results we achieve on behalf of our clients.

SERVICES AND RESOURCES: » » » »

» » » » » » » » » »

Workers’ compensation claims management Property and liability claims management Auto liability and physical damage claims management Professional liability claims management » Strong emphasis on public entity and long-term care sectors Nurse case management Risk management/loss control Medical bill review Pharmacy benefit management Aggressive litigation management Utilization review Electronic claim reporting with immediate acknowledgment and adjuster assignment 4-hour assigned adjuster contact on every claim Online claim review including adjuster notes and financials Industry leading analytics with national database for benchmarking purposes

INTERNAL QUALITY CONTROL AND COST CONTAINMENT PRACTICES: » Adjuster book of business analysis – to ensure workload does not affect service levels » Closing ration analysis – a monthly review to ensure adjusters are achieving maximum production » Claims diary tracking » Formal litigation handling guidelines and practices » Comprehensive medical bill review – average 59% cost reduction » Pharmacy benefit program – average 35% cost reduction » ISO claims search » Medicare section 111 data reporting and compliance

For more information please contact:

MIKE CASTRO

BOB SPRING

Sr. VP, Claims Management Services Mike.Castro@ipmg.com 630.485.5895

VP, New Business Development Bob.Spring@ipmg.com 630.485.5885

Editor & Graphic Design - Rachel Romines

August 2022

Advertising - Tami Hubbell

CONTENTS 15 16 20 23 24

Using Knowledge as the Sword Against Price

27 30 25

Can Continuing Education Lead to More Sales?

By Kelly Donahue-Piro

Should we Reward Employees for Learning? By Christina Pavlou

CONVO 2022 - The Biggest Event of the Year! IIAPAC Mega Raffle - Win $10,000! Investing in Your Agency’s People Can Lead to Big Returns By Carey Wallace

By Daniel Smith

FAC Summer Meeting Wrap-Up By Shannon Churchill

New Event: Tech Expo

In This Issue

The Independent Insurance Agents of Illinois (IIA of IL) has been providing members with a sustainable competitive advantage since 1899.

7 9 10 12 19

Brett’s 2 Sense Trusted Choice Industry Government

32 36 37 38

Associate News Agency/Agent Spotlight IIA of IL News Classifieds

e-Insight

info@iiaofil.org | www.iiaofil.org | (800) 628-6436 or (217) 793-6660 | Fax: (217) 793-6744 WINNER

2009 • 2010 • 2011 • 2012 • 2013 • 2014 2015 • 2016 • 2017 • 2019 • 2020 • 2021

Insight is the official publication of the Independent Insurance Agents of Illinois (IIA of IL). The magazine is published monthly for the members of the IIA of IL, with the office located at 4360 Wabash Avenue, Springfield, Illinois 62711-7009; Consumer Website: www.ChooseIndependent.com. The IIA of IL welcomes letters discussing concerns of the insurance industry, articles, editorials, other matters of interest to the membership. The editor reserves the right to edit and select submissions for publication. Address submissions for review to Rachel Romines at rromines@iiaofil.org. For advertising information, contact Tami Hubbell at thubbell@iiaofil.org.

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Cover Tip

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SOCIETY INSURANCE

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IIA of Illinois Staff Director of Information and Technology Shannon Churchill - (217) 321-3004 - schurchill@iiaofil.org

Director of Government Relations Evan Manning - (217) 321-3002 - emanning@iiaofil.org

Director of Education and Agency Resources Brett Gerger, CIC - (217) 321-3006 - bgerger@iiaofil.org

Office Administrator Kristi Osmond, CISR - (217) 321-3007 - kosmond@iiaofil.org

Accounting & Admin Services Tami Hubbell, CIC - (217) 321-3016 - thubbell@iiaofil.org

Director of Communications Rachel Romines - (217) 321-3024 - rromines@iiaofil.org

Director of Human Resources, Board Admin Jennifer Jacobs, SHRM-CP Director of Membership Services Tom Ross, CRIS, CPIA - (217) 321-3013 - jjacobs@iiaofil.org - (217) 321-3003 - tross@iiaofil.org Sr. Vice President/Chief Financial Officer Mark Kuchar Products & Services Administrator Janet White, CISR - (217) 321-3015 - mkuchar@iiaofil.org - (217) 321-3010 - jwhite.indep12@insuremail.net Chief Executive Officer Phil Lackman, IOM Director of Prof. Liability & Ins. Products Carol Wilson, CPIA - (217) 321-3005 - plackman@iiaofil.org - (217) 321-3011 - cwilson.indep12@insuremail.net Central/Southern Marketing Representative Lori Mahorney, CISR Elite - (217) 415-7550 - lmahorney@iiaofil.org

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CONVO and Education It’s that time of year again. CONVO!!!!! I can’t wait to see what Shannon and the crew come up with this year. Last year was amazing, and soooooo gooooood to get back in person. Fortunately, last year was a super spreader of… knowledge and comradery. I hope to see more of you this year, as you don’t want to hear all the great stories. You are going to want to be part of the stories and memories. Leave this article right now, go to the event website at ILConvention.com, sign-up, and return to this article. I wouldn’t normally ask anyone to leave my amazing articles, but this is the one exception. At CONVO: you will run into people that you may only see occasionally or never; you will establish great relationships with various carriers at the tradeshow; you will learn things at the educational sessions that will set you apart from your competitors; you will earn and entire years worth of continuing education (if you want it); and lastly, you will have fun. I only need the last reason, but the learning aspect is a pretty good reason for this insurance nerd. Nobody throws together a better CE line-up than the IIA of IL, plus you won’t want to miss my PFTA teaser class that everyone must take. Additionally, I only need to say two words: FOOD TRUCKS. If you don’t go this year, you will regret it as Evan, and I are planning on turning our fun meters up to 10. Last year we held back a little as we didn’t want to scare people off but realize this year it is on like Donkey Kong. When I’m sitting in the nursing home years from now, I will have just finished my apple sauce and told

Brett’s 2Sense the fellas about the stories from CONVO 2022. Isn’t that what life is about, creating long-lasting memories? Speaking of education, as that is what drives me, you need to embrace the life of learning. I strive to learn every day. I recently learned (these two are for Lori) that you can major in wine at Cornell University, and about 700 grapes go into one bottle of wine. Probably a great fun fact for CONVO. Make a commitment to yourself and me right now that this year you will: • Start the journey pursuing a designation. • Finish a designation. • If you have a designation, encourage someone to start the designation journey. Last year I earned my CIC designation, and I am starting the CPCU journey this year. You will better serve and strengthen your relationships with your clients as well as your carriers merely by the knowledge gained with earning such designations. Both clients and carriers will see you as more legit. If you are competitive, I challenge you to a designation competition. You have to have started in January 2021 or after, and we will do a check-in at the 2023 convention. Whoever (Chris Boggs, from Big I, is ineligible as his designations take up two pages) has the most designations is the winner, and the loser buys the winner dinner. To accept this challenge, you have to find me at this year’s convention and accept the challenge with a fist bump or handshake. The first five people to approach me at convention and bring up one of my articles will receive a $5 Starbucks gift card.

It’s On!

As always, this is just Brett’s 2 Sense and I hope it was helpful. If you need any clarification or have any suggestions for future articles please email me at bgerger@iiaofil.org.

Brett Gerger | IIA of IL Director of Education & Agency Resources bgerger@iiaofil.org | (217) 321-3006 august 2022

insight

It shouldn’t take walls collapsed by 140-mile-per-hour winds to find out who your customers can trust.

BUT SOMETIMES IT DOES. And that’s the Silver Lining®.

Free to do what's right for you.SM

Leads vs. Referrals: What’s Better for My Insurance Agency? Leads and referrals can be confused with each other. Make sure your insurance agency knows the difference between these online opportunities. A newcomer to the insurance industry knows learning the lingo is like picking up another language. Between beneficiaries, deductibles, and BOP (business owner’s policy), it can be easy to get lost between the lines remembering every definition. A common confusion we see from agents during our demos is this: what is the difference between leads and referrals? Both are insurance terms and are often used interchangeably but have drastically different meanings. Here’s why knowing the difference means so much to your agency.

What Are Insurance Leads?

Leads are often considered to be any means by which your agency lands business, but often, that isn’t the case. Leads are essentially a list of contacts who may or may not be looking for coverage. In many cases, leads come from local records to help agents target consumers who have recently bought houses, cars, or made any other significant life changes. The contact may not know why you are trying to reach them and may not recognize your agency, limiting your close ratio and narrowing the scope of willing, local prospects you could be working with. Leads are most comparable to cold calls and don’t come with personal endorsements. In short, leads can be a gamble and may take extra time and energy to close, and many consumers will not answer a number or agency they do not recognize. It’s easy to overspend on leads that don’t return a satisfactory ROI (return on investment) and, according to GettheReferral.com, leads only return about a 20% lead-to-close ratio.

What Are Insurance Referrals?

Like a lead, referrals are contacts given to an agent, but they don’t come from just any source. Referrals can be word-of-mouth or come from a trusted insurance referral site - like TrustedChoice.com - and target consumers who are actively shopping for insurance and have expressed interest in finding coverage. In the case of a referral, the consumer is more willing to speak to an agency because they are already in the market for insurance on their own accord. While not every referral is a guaranteed close, the close ratio for referrals is typically higher, around 50%. Referrals do come with a personal endorsement, whether that’s another consumer or another agency, which august 2022

help consumers feel more secure in their choice to find coverage. Because there is no chasing the consumer with a referral, the energy you put into it is more likely to reap some reward without demanding the hours to produce a quality lead. At TrustedChoice.com, we deliver local, high-intent, appetite-matching referrals guaranteed to suit your agency’s preferred business appetite. We do this by means of our Appetite Engine, the smart algorithm we use to accurately match hot prospects with independent agents. See how our appetite engine works here.

What Are Claim-it Leads?

TrustedChoice.com also has a leads program - not to be confused with your standard lead generation site. With Advantage Professional, your agency gets access to what we call Claim-it leads, which are a sort of cross between regular leads and personally endorsed referrals. These are hot, high-intent leads from consumers who have expressed interest in working with an agency but did not select an agency from the agency results page. Claim-it leads are sent directly to your agency’s email and are available for purchase on a first-come, first-serve basis, meaning your agency will never have to compete for hot leads.

How Can I Get My Agency Referred?

TrustedChoice.com is not a lead generation site. We connect independent agents with online prospects through our dedicated team of SEO experts, with our Appetite Engine matching consumer needs to agencies’ preferred business lines, and by referring our agencies to the appropriate consumers. You can get your agency started raking in the referrals by subscribing to Advantage and loading your online profile with all the information local prospects will be looking for, like… • • • • • • •

Logo and location Business hours Five-star reviews Team members Links to your site and social assets Video And more!

Don’t miss out on hundreds of hot, local referrals. Find the right Advantage subscription for your agency, and schedule a demo with a sales representative today to get started. You could be one referral away from your next close! Go to https://solutions.trustedchoice.com for additional details and to get started. insight

INSIGHT | industry

Steady Rate Increases for Q2 2022 By MarketScout

US property and casualty rates are stabilizing at a composite increase of 5.91 percent in the second quarter of 2022, virtually matching the rate increases of the first quarter 2022. Cyber rates continue to increase the most at plus 21.3 percent up from plus 19.7 percent in the first quarter of 2022. Umbrella rates moderated slightly by increasing 8.7 percent in the second quarter as compared to an increase of 9.7% in the first quarter of 2022. Medium sized accounts ($25,000 to $250,000 in premium) experienced the largest rate increase in the second quarter of 2022 at plus 7 percent. By industry classification, transportation is still being assessed with the highest rate increases at plus 8.7 percent. Richard Kerr, CEO of MarketScout outlined the current rating environment by noting, “Mother nature and litigation heavily impact rate increases, but as we all know, we can’t realistically control either. Hurricane season is upon us and soon to be followed by wildfire season. If we have big events, the increase in property

By Coverage Class

rates will come quickly.” Kerr further commented on economic cycles which may impact insurance rates, “Inflation can create a need for rate increases, so we may see that impact over the next four quarters. As for rate decreases, it’s possible higher interest rates could provide insurers with additional investment income which could moderate rate decreases, especially on long tail business.” The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States. A summary of the second quarter 2022 rates by coverage, cyber liability, industry class and account size is set forth below.

By Account Size

Commercial Property

Up 8.3%

Business Interruption

Up 7%

BOP

Up 6%

Inland Marine

Up 3.7%

General Liability

Up 5.3%

Umbrella/Excess

Up 8.7%

Commercial Auto

Up 9%

Workers’ Compensation

Up 1%

Professional Liability

Up 5.6%

D&O Liability

Up 8.3%

EPLI

Up 5%

By Industry Class

Fiduciary

Up 2%

Manufacturing

Up 5.3%

Crime

Up 1.7%

Contracting

Up 6.3%

Up 1.7%

Service

Up 6%

Habitational

Up 8.3%

Public Entity

Up 5%

Transportation

Up 8.7%

Energy

Up 4.3%

Surety

insight

Small Accounts Up to $25,000

Up 5.7%

Medium Accounts $25,001 – $250,000

Up 7%

Large Accounts $250,001 – $1 million

Up 6%

Jumbo Accounts Over $1 million

Up 6.3%

august 2022

industry | INSIGHT

Personal Lines Rates Stabilize US Personal lines rate increases for the second quarter of 2022 were plus 5.16 percent, almost mirroring the 5.2 percent increase in the first quarter 2022. Insureds in the US are experiencing rate increases partly as a result of inflation on home and auto repair, as well as the increased value of fine art, collectibles and jewelry. Richard Kerr, CEO of MarketScout noted, “The Council for Insuring Private Clients gathered in May 2022 with over 250 personal lines professionals sharing information and ideas. The consensus was to expect continued significant rate increases for all lines of personal insurance in areas affected by CAT perils.” “We believe alternative solutions will be developed to provide additional capacity in Florida and California,” added Kerr. “Premium increases and coverage restrictions will drive these new solutions. Forty to fifty percent rate increases are not unusual in CAT prone areas of Florida and California.”

Personal Lines Homeowners under $1,000,000 value

Up 5%

Homeowners over $1,000,000 value

Up 7.3%

Automobile

Up 3.7%

Personal Articles

Up 4.7%

The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States. A summary of the second quarter 2022 personal lines rates is set forth below.

Founded in 2000, MarketScout is an insurance distribution and underwriting company headquartered in Dallas, Texas. The company is a Lloyd’s Coverholder and MGA for US insurers with specialty expertise in workers’ compensation, private client solutions, energy, healthcare, fine art, equine, jewelry, professional liability, and many specialty programs. For more information, go to marketscout.com.

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INSIGHT | government

Illinois Primary Election Roundup Illinois held its primary election not in March as usual, but instead on June 28, marking the latest date in the state’s history that the contest has been held. The reason: a delay occurred in collecting and processing the decennial census data that drives Illinois’ redrawing of Legislative and Congressional districts. Democrats hold a super majority in the Legislature which is tasked with the redistricting process. June 28 marked the first election cycle under the new maps. All 59 state Senate offices were up for grabs, as were all 118 state House seats. In addition, the six Constitutional offices had candidates vying for their parties’ nominations. All 17 Illinois Congressional seats were contested, as was one of the US Senate seats for the state. The Illinois Supreme Court had a race as well, with the 2nd District seeing both Republican and Democratic contested primaries. Currently, Democrats hold all Statewide Constitutional offices as well as veto-proof majorities in both chambers of the State House (41 Democrats /18 Republicans in the Illinois Senate and 73 Democrats/45 Republicans in the Illinois House). While the size of the legislative majorities could change in November, Democrats are expected to maintain control of the General Assembly for the foreseeable future. Election results were favorable for far-right Republicans and progressive Democrats, who defeated more moderate candidates in a number of races. On the other hand, Democrat and Republican general Assembly leadershipbacked candidates suffered defeats at the hands of more left- or right-wing challengers. Voter turnout was key in election contests. Statewide turnout was estimated to be under 20%, the lowest since 2014 when 18.1% of registered voters cast a primary ballot. Turnout in Chicago and suburban Cook County was also estimated to be slightly under 20%. DuPage County reported the highest turnout in the Chicago area at around 22%. Many southern Illinois counties also reported around 20% turnout. Low voting numbers are typical of midterm primaries. This year’s particularly low figures could be further influenced by the abnormal June primary date.

STATEWIDE RACES GOVERNOR: Governor J.B. Pritzker easily held off a primary challenge from Beverly Miles, winning over 90% of the vote. The Republican Gubernatorial primary race featured a battle between billionaires. Ken Griffin channeled $50 million to Aurora Mayor Richard Irvin, who finished third in the primary race, in the hopes that Irvin would be the best positioned candidate to defeat first-term Democrat Governor JB Pritzker in November. The billionaire Governor teamed up with the Democratic Governors Association to counter Griffin’s cash, funneling $34 million into advertising against Irvin and painting Senator Darren Bailey as “too conservative” for Illinois. Bailey and his 12

insight

By Evan Manning

team benefited from the unsolicited advertising as well backing from millionaire Richard Uihlein and a lastminute endorsement from former President Donald Trump. Bailey won the party nomination and will face first term Democratic Governor JB Pritzker in November. It remains to be seen if far-right Donald Trump-style candidates can win statewide in Illinois, particularly in the Chicago suburbs. Additionally, the Supreme Court’s reversal of Roe v. Wade could provide another reason for moderate suburban voters to vote Democrat in a year that is otherwise likely to favor Republicans. ATTORNEY GENERAL: Incumbent Attorney General Kwame Raoul did not have a Democratic primary challenger. Conservative Thomas DeVore, most known for filing numerous lawsuits against the Governor’s COVID mitigations, won the Republican Attorney General nomination. DeVore defeated Ken Griffin-backed international business lawyer Steve Kim and attorney and author David Shestokas in the Republican primary. SECRETARY OF STATE: Former State Treasurer Alexi Giannoulias defeated Chicago City Clerk Anna Valencia and two other candidates in the Democratic primary for Secretary of State. Giannoulias will face Republican Representative Dan Brady in November, who defeated Ken Griffin backed former U.S. Attorney for the central District of Illinois John Milhiser with over 75% of the vote in the Republican primary. Long serving Secretary of State Jesse White is retiring. CONGRESS: Two Congressional races pitted incumbents against each other. The 6th Congressional District featured Democrats Congressman Sean Casten and Congresswoman Marie Newman. The two were locked in a fierce battle, but the race was clouded by the unexpected death of Casten’s 17-year-old daughter in recent days. Casten prevailed in the contest. In the 15th Congressional District, on the Republican side, long time Congressman Rodney Davis faced first-term Congresswoman Mary Miller. Miller, who benefited from an endorsement from former President Donald Trump, defeated Davis. In the 7th Congressional District, Congressman Danny Davis won a tight battle against his opponent Kina Collins. There are four open Congressional seats. The race to replace retiring Congressman Bobby Rush in the open 1st Congressional District featured 17 Democratic candidates. Prominent candidates in this race included Alderman Pat Dowell, Jonathan Jackson, son of Rev. Jesse Jackson, and state Senator Jacqueline Collins. Jackson prevailed. In another open seat, state Representative Delia Ramirez defeated Alderman Gil Villegas. In the 13th District Democrat Nikki Budzinski will face Republican Regan august 2022

government

Deering. Finally, in the 17th District, Democrat Eric Sorenson will face Republican Esther King Joy to replace retiring Congresswoman Cheri Bustos. ILLINOIS SENATE: All 59 state Senate seats are up for election this year. Going forward, over the course of the next 10 years, Senators will be elected based on the term of their district: (4-4-2; 4-2-4; or 2-4-4). On the Democratic side, Senator Robert Martwick survived a strong challenge. Former State Representative Mary Edly Allen is defeated Representative Sam Yingling in the race to replace retiring Senator Melinda Bush. Appointed State Senator Eric Mattson lost to progressive Rachel Ventura. In the open 16th District, Willie Preston defeated Lamont Williams. On the Republican side, Dave Syverson and Steve McClure survived challenges. Senator Win Stoller narrowly defeated challenger Brett Nicklaus in this tightly contested Republican primary. Stoller was endorsed by Darren Bailey, whereas Nicklaus had the support of House Republican Leader Jim Durkin. ILLINOIS HOUSE: All 118 House seats are up for election this year. This is the first election cycle under newly elected House Speaker Chris Welch.

| INSIGHT

Several Democratic incumbents faced challenges in Tuesday’s contests. Representatives Sonya Harper, Michael Kelly, Lindsey LaPointe, Curtis Tarver, Justin Slaughter, Thaddeus Jones, Cyril Nichols, and Natalie Manley all defeated their challengers. Representative Mike Zalewski and Representative Denyse Wang Stoneback lost their primary elections as well as Representative Kathleen Willis. On the Republican side, incumbents Representatives Dan Swanson, Tony McCombie, Tim Butler, Dave Severin, Patrick Windhorst and Paul Jacobs defeated their challengers. Representative David Welter lost his race against conservative Jed Davis. Representative Mark Luft lost to Travis Weaver (son of former State Senator Chuck Weaver). Hoan Huynh won the Democratic primary in the 13th District to replace retiring Leader Greg Harris. Evan Manning is the Director of Government Relations for the IIA of IL. He can be reached at emanning@iiaofil.org or (217) 321-3002.

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Using

KNOWLEDGE as the SWORD

AGAINST PRICE By Kelly Donahue-Piro

As an insurance agent, we can get frustrated when clients are price sensitive, and may feel some anxiety or tension whenever an insurance rate increase happens. But that’s where you come in. When you start to view your role as that of a leader and a guide, you can provide your clients with an actual insurance rate education, and help them understand how insurance works. You may think that a client doesn’t want to spend the time to learn, but by offering them the option, you at least give them the chance to say no. Here are some ways you can use insurance knowledge as the sword against price, provide an insurance rate education, and start shifting the conversation away from price, and over to coverage.

Don’t Use Insurance Speak

When you’re knee-deep in the insurance industry, it can be common to fall back on insurance jargon and agent terminology. But using insurance speak leads to confusion for the client, especially when they’ve been an insurance customer year after year. Using industry jargon will lead them to zone out of the conversation, and they may feel a little embarrassed that they haven’t had a certain coverage all this time. By shifting your language away from insurance speak, you’ll be much more successful at educating your customers.

Make Sure A Client Actually Understands

When you’re speaking with your customers, and you hear noises of confirmation from their end, you might think they’re following along. But the truth of the matter is that they may not actually be understanding as much of the conversation as you think. In order to make sure a client fully understands what you’re saying, open up a dialogue with them. You can ask something along the lines of “What do you know about comprehensive coverage?” to get them speaking, and to see where they actually stand. august 2022

Don’t Only Communicate Electronically

Electronic communication is quick and easy, but emails and text messages shouldn’t be your go-to form of communication with clients. These are great for simple confirmations or other “quick hits,” but really, you’ll have much more power over the phone. Using our voices can be somewhat of a lost art, but if you pick up the phone and call your client, you’re much more likely to find success.

Show Your Value

When we experience an insurance rate increase, our first instinct may be to try to problem-solve as quickly as possible, to placate the customer. But slowing down and having a conversation around insurance rate increases can not only help educate your customer, but show your value. Your role is not just to talk about price, but it’s also to be your client’s tour guide, by educating them with your wealth of knowledge. This can happen during big moments, but it can also happen during little moments, such as when a client is making a payment. In fact, those opportunities for education may be even more valuable during little moments, because during the big moments, it may be too late. As insurance agents, our number one goal is to make sure that every time a client calls, we improve their day, and leave them better educated. If we break out of “transaction mode,” and stop simply processing their payments, we can leave clients more informed, and prepared to make the decisions that are best for them. Kelly Donahue-Piro, founder and president of Agency Performance Partners, is a no-nonsense effectiveness expert who has helped hundreds of insurance agencies identify and capitalize on sustainable improvement opportunities. Connect with her on social platforms, via email at kelly@agencyperformancepartners.com, or by phone at 401-415-6205. insight

By Christina Pavlou Most of us are no strangers to using rewards as motivation. We say things like, “If I finish the laundry today, I can binge-watch three more episodes of my favorite show.” And rewards can get results, at least in the short run. But what about employee development? Are employee incentive programs a good idea when it comes to training? Between busy work schedules and previous experience with “boring” courses, employees may not always rank training high on their list of priorities. Employee training rewards offer a solution, but they also raise some important questions. Do training incentives have lasting effects? Or, are they a quick fix that undermines your real training goals? In this article, we’ll discuss whether you should reward employees for learning, and if so, how to use rewards to inspire real engagement and learning.

How rewards work People make decisions about what they do by asking, “What’s in it for me?” There are two kinds of rewards that influence the answer: • Intrinsic rewards: Sometimes natural rewards are enough to motivate people to action. For example, the inherent benefit of being fit enough to enjoy an active lifestyle might motivate some to stick to their weekly workout plan.

insight

• Extrinsic rewards: Sometimes you need outside help to inspire action. Someone may know exercise will benefit them, but the draw of vegging on the couch after a long day of work is more appealing in the moment. They may attach an external reward - say, stopping for a favorite beverage on the way home from the gym - to get them moving. These rewards motivate people at work, too. Employees are more productive and engaged when they get praise or incentives for their hard work. The same can be applied to your company training strategy. Rewards can be an effective tool for helping employees get started on the right path. But only when used correctly.

Rewards could be sending the wrong message Be thoughtful in your approach to employee incentive programs. If you take the wrong tactics, rewards can actually have a negative impact on learning. For instance, the wrong use of rewards undermines your efforts when they: • Turn learning into a chore. Automatically including rewards for completing training could communicate the idea that “If I need an incentive, the training must not be worthwhile on its own.” • Take the focus off of learning. When the prize overshadows the actual task, it takes the focus away from what you’re really trying to achieve. Something like “Employees who get 3 certificates will receive a gift card” may leave employees counting certificates and flying through training to get to the reward. august 2022

In either case, employees may finish their training, but without any real engagement. They likely won’t retain what they learned, and when it’s time to do more training, they’ll still be dragging their feet.

When do employees really need (or want) training incentives? According to a foundational study, companies showed a 44% increase in team performance with the right incentive program. The key phrase here is “the right incentives.” Not all rewards motivate equally. And not all are a good fit for the situation. For instance, with mandatory training like onboarding courses or content on cybersecurity, employees know it needs to happen. And with training that helps employees grow their skills and careers, people probably already recognize the natural benefits. In these cases, a reward won’t necessarily motivate people. They already have reasons to finish their training. However, incentives can be valuable when the intrinsic rewards are not strong enough to engage employees on their own. For example, if employees have to take the same (or a similar) course on cybersecurity every year, a small prize or an internal competition could make the process more fun. The key to success is knowing how to implement learning incentives in a way that is helpful for learners.

Learning should be the end goal of employee incentive programs If you want training incentives for employees to be useful, make sure the focus is always on the most important intrinsic reward: learning. Whether it’s compliance training or an optional course on how to build assertiveness, employees should know how training will help them. The answer to “What’s in it for me?” shouldn’t be a reward, but an actual career benefit they’ll get. Rewards should help you make the connection between training and the results that will add value to employees and their careers.

Here are a few tips for using employee incentives to support learning:

1. Communicate the Value of Training First and Foremost It’s ok to promote an incentive program for training to get people excited. But be sure you advertise the value of training as the primary message. If you send out an email announcing a new course, start with the purpose of the training. Share why this training is happening and how it’ll help employees. For example, “This week’s compliance training will prepare you to handle changes in policies and processes that will be in place after the first quarter. This course is a great way to get up to speed quickly in your downtime.” Then add information about the incentive. Help employees see incentives as a bonus, not the main reason for finishing their training.

2. Make the Content Relevant and Engaging If you want people to be eager about training, make sure the actual content is informative, up-to-date, and engaging. If you give employees a long technical guide on cybersecurity and follow up with a test, it’s possible no reward will be motivating enough to get them through it. Some may focus on completing the test and getting the reward, but with no guarantee that they’ll actually learn anything. Instead, use best practices to get people to interact with the course and increase their learning. • Vary the types of media you use. Replace text-heavy screens with videos or infographics. • Include practice. Build in quizzes and hands-on exercises that let people put the skills into practice. • Add some competition. Gamification is a good way to make training more enticing. Add leaderboards and badges or points for finishing key tasks. The desire to keep up with their fellow learners will prompt people to come back to continue a course. continued...

If you want training incentives for employees to be useful, make sure the focus is always on the most important intrinsic reward:

learning

august 2022

insight

These tactics will engage employees in deep thinking about the content and motivate them to complete their training.

3. Attach the Reward to the Appropriate Actions Rewarding people for completing their training will likely get you lots of click-throughs to the end. But that doesn’t necessarily mean people are learning along the way. Instead of attaching a reward to a specific outcome (completing the course, passing a quiz), consider linking it to actions that lead to the results you want. For example, reward learners when they complete an assignment to teach what they’ve learned to another person. Or, when they successfully replicate a difficult procedure. Rewarding helpful behaviors will drive the ultimate result: real learning and skill application.

4. Make the Reward Proportionate Too big an incentive overshadows the task itself and isn’t sustainable over time. For instance, rewarding yourself with a latte after a good workout can be the little extra push that helps you do something you know you should. Rewarding yourself with a sports car after one workout won’t have that same effect. Future workouts may be a letdown without such a big reward.

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It’s the same with employee training rewards. Rewards can be motivating and help people get started. But keep them equal to the size of the task. You want the reward to be that little push that gets them started and enhances the natural benefits they’ll get.

Use training incentives to create a learning partnership Done well, rewards are a great way to motivate learners. They’re also a way to show people you care about their career development and success. When you make learning the priority, employees will understand why training matters, and they’ll be an active part of your training strategy’s success. Rewards and employee incentive programs can help you create a partnership that enhances learning. They show employees you value the efforts they put in. And when they know you care enough to invest in their futures, your employees will be happier and more productive long-term. This article originally appeared on the TalentLMS website at https://www.talentlms.com/blog/employee-incentiveprograms-for-training/. Christina Pavlou is a content writer at TalentLMS. Having previous experience in HR, she writes about how to make the workplace a better place.

august 2022

e INSIGHT -

online journal at www.iiaofil.org/Resources/Insight

AU GU ST 20

INSIGH T Octobe

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How To Keep Employees Engaged With Continuing Education By Jeff Kauflin, Forbes In this month’s e-Insight. august 2022

insight

iia of il

October 4-6

Crowne Plaza, Springfield, IL Earn up to 12 hours of Illinois Continuing Education credit with industrydriven educational programming. You’ll hear about the latest topics and news that matter most to you from leading experts and your peers. But don’t take our word for it. Here is what past attendees are saying: CONVO is an investment in your industry and yourself. I have learned something and met so many people committed to this industry every time I have attended CONVO. The knowledge, comradery, contacts you gain by attending is well worth the time commitment. - George Daly CONVO is the single best annual event focused on what we do each day. We are pulled in many directions daily, but it is worth your time to come and experience what your association delivers at this one-of-a-kind event! - Greg Sandrock

Find Opportunities Together The Midwest’s largest industry tradeshow will be held on Wednesday, October 5 from 3:30 - 6:30 pm. This is your chance to see what’s new in the industry and meet with your carrier partners. You’ll be able to let the conversations flow during the three-hour tradeshow event. Explore new market opportunities featuring more than 120 top carriers, MGAs, and a variety of other vendors.

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august 2022

Schedule

Come Together (Subject to Change)

Tuesday, October 4 10:00 – 4:00 p.m.

Independent Agent Invitational Golf Outing The Independent Insurance Agents Golf Outing is the premier golf event of the IIA of IL. Join us at Piper Glen Golf Club in Springfield for a round of golf complete with food, beverages, and friendly competition.

Noon

CONVO Registration Desk Opens

1:00 – 4:00 p.m. 5:00 – 6:00 p.m.

E&O/Ethics Education Session (CE) Welcome Reception and Meet & Greet Kick off CONVO at the Welcome Reception. Enjoy a drink and hors d’ oeuvres before heading out to dinner.

6:00 – 8:00 p.m.

Dutch Dine Arounds/Company Dinners Head out for dinner with your Company Partners, old friends, or new acquaintances. Don’t have dinner plans? Sign up for the Dutch Dine Arounds with the IIA of IL staff. The IIA of IL has made reservations and travel arrangements. **Hence the name “Dutch,” each attendee is responsible for paying for their own dinner.

6:00 – 8:00 p.m.

Past President’s Dinner (Invite Only)

8:00 – 11:00 p.m. Casino Night Hosted by Young Agents, Benefitting Make-A-Wish Feeling lucky? Spin the wheel at roulette, try your hand at poker, blackjack, or one of the many other games. Turn in your chips to win one of many great prizes.

Wednesday, October 5 7:00 a.m.

Continental Breakfast/CONVO Registration Desk Opens

8:00 a.m. – Noon

Keynote General Session (CE) - The Evolution of Insurance Steve Anderson, CEO of Catalyit, will lead us in a journey through “The Evolution of Insurance” using “where we have been” to understand what is coming next. Steve will lead a panel of insurance professionals who will share what their agencies have done to combat some of the challenges agencies are facing from technology to staffing to increasing competition. We will also recognize our award recipients including Agent of the Year, Agency of the Year, Young Agent of the Year and more.

Noon – 1:00 p.m.

Food Truck Lunch and Networking

1:00 – 4:00 p.m.

Concurrent Education Sessions (CE)

3:00 – 6:30 p.m.

Tradeshow

6:30 – 11:00 p.m.

Big Party with Dinner, Dancing, and Drinks In keeping with the evolution theme, join us for a celebration as we party through the decades. The evening will include food, drinks, friendships, music, and lots of fun! Attendees are encouraged to dressed in attire from your favorite decade, whether it is your favorite concert t-shirt or rocking the 50’s poodle skirt, your outfit is up to you!

Thursday, October 6 7:00 – 8:30 a.m.

Hot Breakfast

8:30 – 11:30 a.m.

Forecast...Association Resources, Industry Insights & Election Analysis (CE) Going back to our advocacy roots, we will close out CONVO with an “Industry & Election Forecast... Association Resources, Industry Insights, & Election Analysis.” The session will feature three speakers including Illinois Director of Insurance Dana Popish Severinghaus, Hannah Meisel - NPR State Government and Political Editor, and Amy Walter, publisher and editor-in-chief of the non-partisan Cook Political Report with Amy Walter.

august 2022

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iia of il

October 4-6, 2022

Education Sessions

Learn Together

CONVO 2022 offers a variety of education sessions! The schedule allows flexibility so you can customize your time to fit your needs.

CONCURRENT EDUCATION SESSIONS

Concurrent education sessions provide a little something for everyone in the agency. This year’s topics include: • E&O/Ethics • Sales • Legislative & Regulatory Update • Premium Fund Trust Accounts & Rebating Regulations • Cyber, Phishing, and More • Technology Solutions to Increase Efficiency • Agency Operations/Procedures • Industry Related Hot Topics • And so much more!

Grow Together

Networking and Social Events

CONVO 2022 offers several opportunities to grow your circle of knowledgable professionals, make new friends and contacts, and find out what your old friends and peers have been up to.

WELCOME RECEPTION - Tuesday DUTCH DINE AROUNDS - Tuesday CASINO NIGHT - Tuesday

FOOD TRUCK LUNCH - Wednesday BIG PARTY - Wednesday

Non-scheduled events offer just as much opportunity to chat: elevator rides, at the buffet tables, at the bar, in the lobby - the chances are endless!

Golf Outing

Tuesday, October 4 - Piper Glen Golf Club, Springfield

Join us for a round of golf complete with food and beverages, friendly competition, and a great opportunity to network with agents in advance of CONVO.

Shotgun Start: 11:00 am

$175 Per Golfer

Golf is a separate fee from CONVO registration.

This outing fills up quickly, so secure your spot early! 22

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Exhibit

Company Opportunities

Your company should be a part of the Midwest’s largest industry tradeshow. Exhibit booths are on sale now. Secure your space right away as this event will sell out quickly!

Sponsor

Studies say it takes seven to 11 times for somebody to see your message and actually remember it. One of the best reasons to sponsor a portion of CONVO is the number of people (over 800!) that will have eyes on your brand. This is an opportunity for your business to solidify your presence in the industry. Plus, sponsoring is yet another way your company can build trust with current and potential agencies. And to top it off, you’ll be helping keep the costs down for agents to attend the event. Your contracted agencies will continue to attend to increase their knowledge, which in return, could affect your bottom line.

Advertise

Every person that attends CONVO will receive an event program. This is the guide to the entire event and will be referenced by attendees multiple times throughout the three days, and even after the event is over!

ILConvention.com

For more details and to register, visit the event website.

CONVO registration is required to access the room block at the Crowne Plaza. A link to reserve a room will be sent to you in your registration confirmation email.

MEGA RAFFLE

Win Big $10,000

GRAND PRIZE

2nd: $500 • 3rd: $250 4th: $100 • 5th: $50

$250 Early Bird Drawing September 1 Early Bird Winner is put back into the pot.

$20 each

Go to www.iiaofil.org/MegaRaffle or scan this code. august 2022

ise a r d Fun for

IIAPAC

Independent Insurance Agents Political Action Committee

insight

Investing in Can Lead to The most valuable asset in every agency is their people. There is no question that our industry is based on relationships and the best way to have strong relationships is to have quality people representing your brand, serving your customers, and shaping the culture of your agency. In every survey for the past 15 years, finding and retaining great talent is listed as one of the biggest challenges that agency owners face. That challenge has only intensified for many in the current employment environment. Those agencies that are able to create a work environment that attracts, retains, and provides a long-term career path for their people are the ones that are best positioned for the future from a growth, scale, and value standpoint. If you want to invest in your agency – invest in your people. In the current “Great Resignation” workforce environment, we all need to contemplate the changes we can make to meet the needs of the current workforce as it moves and shifts. According to Gallup’s State of the Global Workplace 2022 Report, it was reported that 71% of the workers in the U.S. believe that now is a good time to find a new job. In addition, only 21% of employees say they are engaged at work, which Gallup describes as “highly involved in and enthusiastic about their work and workplace”. Each agency should ask themselves “Is my organization attracting talent? Are people running towards my agency or away from my agency?”. In order to answer this question, you need to understand the needs and wants of the current workforce, what is needed to create an environment where your employees are engaged, happy, and productive. The following are a few key areas to consider. Build a Strong Culture First and foremost, everyone has a desire to feel valued in every part of our lives. This is a core component of every relationship, and the work relationship is no exception. Creating a culture that demonstrates that you care about your staff is critically important. Many employees cite their relationship with their manager as the biggest influence on their success and satisfaction in their role. Building a strong connection as people is incredibly powerful. This can be best achieved by listening, understanding, and acting. By taking action to solve challenges they face in their day-to-day work environment you demonstrate that you care about them as people as well as employees, and you strengthen your connection.

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Flexible Work Environment Over the past three years we have clearly demonstrated that work can be achieved remotely. Organizations that embrace a flexible work environment and are positioned to accommodate in-person work, remote work, and hybrid roles are the ones that can attract talent and begin to reshape their staff. This has allowed many organizations to adopt custom compensation packages and really meet their employees where they want to be. It also reinforces that you value what’s most important to them and you’re balancing that with the needs of the agency. In order to make this transition, agencies must invest in technology, formalize processes, and be intentional with their engagement to keep their culture strong. It also requires a great deal of trust and respect for this structure to work well. The organizations that are able to implement this flexibility in their work structure have a higher employee satisfaction rate – leading to a higher potential growth, efficiency, and profitability rate that will positively impact the value of the agency. Onboarding & Training In many cases people want to be part of something that works well. Agencies that have a created a well-oiled machine are positioned to provide this stability to their employees. This can be achieved with a strong onboarding process, a well-documented training program as part of that process, assigning a mentor, and investing in documenting the processes that will create success within your organization. Providing this information in a format that is easily consumable and searchable so an employee can find and access the information easily is as important as creating and documenting the information. This will allow new and existing employees to find and access the information they need to be successful and efficient in their jobs. Training on your systems and processes should never stop and should be viewed as an ongoing and evolving task. As things change and evolve so should the process and training. Every employee should have a voice in this to ensure that new efficiencies are documented and shared with the entire staff to remain consistent throughout your organization.

august 2022

in Your Agency’s People to Big Returns By Carey Wallace Data & Technology In many cases the technology that exists inside agencies is being underutilized. Agencies that invest in ongoing training on their systems as well as in new technology are better positioned to provide an environment where their employees are better positioned to succeed. This is an area that many agencies avoid as technology options are vast, the process to choose the right tools can seem incredibly overwhelming and understanding how technology solutions integrate with each other is confusing. Quite frankly technology is always evolving and changing so trying to implement too much at one time can be exhausting for your staff – especially if there are several stops and starts with technology. It is important to be thoughtful in your approach to adopting technology by following a process which clearly defines the goals and objectives of the tool, setting clear expectations on the time it will take to implement and realize the expected results while involving the entire team in the process. People want to be set up for success so providing them with the right tools as well as a voice in the process is key. Expertise & Growth Agencies that invest in their employee’s growth and future are more likely to retain their talent than those that do not. There are several ways that agencies can achieve this. It may look different for each of your employees, so plan to be flexible in your approach. One way to invest in your employees may include supporting them getting a professional designation. There are many options available in our industry and this is a great way to demonstrate how valued they are and also provide them with a way to continuously grow their knowledge, confidence and skill set. The National Alliance for Insurance Education & Research provides several designation options including CIC (Certified Insurance Counselor). There are an estimated 31,500 CICs in the country. Those that complete this designation become part of an elite group of insurance professionals viewed as experts by their clients and peers. The National Alliance reports that agents with the CIC designation make 30% more than their counterparts, have a lower error rate, and are positioned to write larger accounts. This is translated to higher revenue opportunity and efficiency levels for the agency which will improve their growth rate and profitability.

august 2022

Making the investment in any one of these areas is not enough. Simply by investing in technology, education, or data will not grow your agency – it must be implemented well in order to realize those results. It goes without saying that all of these suggestions require consistency and strong processes in order for the investment to translate into results for your agency and your employees. Just like purchasing exercise equipment will not make you fit, the same principle applies here. For those agencies that make these types of investments and implement them well can expect to see lower turn-over rates, higher growth rates and higher profitability. All of these results lead to a higher value for their agency. These are the biggest factors that impact the strength and value of your agency. There is no better investment to be made inside an agency than in your people. Carey Wallace is the founder of AgencyFocus, an independent insurance agency consulting organization. She has worked in the insurance industry for the last 12 years and with entrepreneurial small businesses for her entire career. During that time, she developed key business consulting services to ensure that agencies have the information and support they need to plan for their agency and successfully perpetuate to the next generation. Find out more at agency-focus.com.

Agencies that invest in their employee’s growth and future are more likely to retain their talent than those that do not.

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CIC

PROGRAM

Agency Management

Commercial Casualty

Insurance Company Operations

Commercial Multiline

Life and Health

Commercial Property

Personal Lines

Professional Education for a Thriving Career CIC and CISR courses are eligible for CE credits and are update options for Insurance and Risk Management professionals interested in emerging marketplace trends.

CISR

PROGRAM Agency Operations

Commercial Casualty I

Insuring Commercial Property

Commercial Casualty II

Insuring Personal Auto Exposures

Life & Health Essentials

Elements of Risk Management

Insuring Personal Residential Property

Personal Lines - Misc.

www.iiaoﬁl.org/education

Can

CONTINUING EDUCATION Lead to

More Sales? By Daniel Smith

Whenever the topic of designations and continuing education comes up when I’m talking with a group of independent agents, I often hear the same phrase, “Clients don’t care about the letters behind my name.” Is that true? In most cases, I’d say it is. Most clients will never know what CIC, CISR, CPCU, ever means – much less what it means to earn them. So, why bother? Because knowledge really can give you power – including power to sell.

ordinance or law coverage came into play – on a personal lines policy. The home was not a “Historic” home, but the building codes had been changed significantly in the area since it was built, and the repairs required new wiring. The agent had realized this issue might occur and had worked with the homeowner to change their policy a few years earlier. Without that policy in place, much of their repair costs might not have been covered.

One of the best “cold calls” I have ever heard by an agent was built from education. The agent had taken some higher-level construction risk courses and noticed that there was often an exclusion in their prospects’ policies that could have a major impact if there was a claim. He then called the prospects with a simple message, “I know you don’t want to hear another insurance sales pitch, so all I’m asking for you to make sure that this exclusion is not in your policy. Because if it is, I think you may have a serious coverage gap.” More times than not, the client would want more info and/or schedule time to discuss it further. Some of the prospects didn’t even have the exclusion, but they still appreciated that he had done something that their current agent had not – explained it to them.

Lifelong learning can also help you gain confidence in your selling abilities. Many independent agents specialize in certain areas or industries and learning more about those industries – as well as the coverages that may apply to them – is critical. When you can “speak the language” and know the right questions to ask, people often feel more confident that you “know their business”. When they are confident in your knowledge, they are more likely to trust you. Trust often leads to sales, and in this case that was built on knowledge.

Continuing education can also lead to cross-selling opportunities, as you broaden your mind to less common risk scenarios. I once saw a fairly unique claim issue where

Knowledge really can give you power – including power to sell. august 2022

So, can continuing education lead to sales? Absolutely. But you must actually have a desire to learn and apply knowledge, not just “complete hours” for CE. How can you develop your own path for learning that leads to selling? Determine your goals and then work backwards to find the designations or courses that will position you to achieve those goals. I believe you’ll find that it pays off to learn. Daniel Smith, CAE is the Chief Marketing Officer and Co-founder of Market Retrievers, a digital marketing firm focused on building and implementing strategies for independent insurance agencies. He previously worked for the independent agents association in Tennessee for over 14 years and served as the CMO and COO. He is also a licensed P&C agent. He may be reached at dsmith@ marketretrievers.com. insight

Visit tinyurl.com/SwissReEO

12/2020

EDUCATION OPPORTUNITIES WEBINARS

The IIA of IL offers a variety of webinars/ webcasts that allow you to earn CE credit from your home, office, or wherever you have internet access. Including Ethics, E&O, Flood and so many more.

ETHICS UPDATE As an Illinois Licensed Producer, you are required by the Department of Insurance to take a 3 hour classroom or online live webinar Ethics course every renewal cycle.

E&O SEMINARS Examine E&O risk management from the agency perspective and address the fundamentals of reducing E&O exposures of today’s ever-changing agency operations.

SCHOLARSHIPS The Independent Insurance Agents of IL is proud to offer our members and their staff the opportunity to earn scholarships for all of our classroom education programs.

CIC DESIGNATION ON-BOARDING SOLUTIONS Online learing - ideal for new hires & job changers - on demand, interactive, cost-effective and measurable.

IN-HOUSE Save time, money, and travel. Bring our programs to your office. IIA of IL offers a curriculum that can be customized to fit your agency’s needs.

VIRTUAL UNIVERSITY Members have access to insurance, business and technology articles, many full sample ISO forms, white papers, and more.

CERTIFIED INSURANCE COUNSELOR The CIC Program is the industry’s premier, proven source for practical, real-world education. The CIC designation signifies a high level of professional education.

CISR DESIGNATION CERTIFIED INSURANCE SERVICE REP This nationally recognized program is perfect for newly licensed producers, customer service representatives, company personnel, and those looking to refresh their knowledge.

CISR ELITE It is now possible for CISR’s to keep their commitment to continuing education & earn the highest recognition - CISR Elite.

www.iiaofil.org/education august 2022

insight

Farm Agents Council a division of the Independent Insurance Agents of Illinois

Summer Meeting Wrap-Up – Another Hot and Fun Time With Colleagues By Shannon Churchill The Farm Agents Council (FAC) hosted their 92nd Annual Golf Outing and Meeting on June 16-17 in Bloomington, IL. Always a fun time, well at least when the weather cooperates, this outing brings agents and company representatives together for golf, industryspecific tradeshow, networking, and education. This year’s event was no exception. The golf outing, although it was a very hot day, welcomed over 110 people. For those participating in the outing, well they would probably add a couple of “hots” to that sentence since the event took place in the unseasonably warm week of June. However, the drinks were cold, and the company was good, and groups shot really well so I guess you can’t complain too much.

Congratulations to the first-place winners of the event, pictured below: Marc Musso Taten Musso Steve Foster Dustin Peterson

After the outing, everyone was glad to head back to the DoubleTree hotel for air-conditioning and the evening reception and tradeshow. Over 130 people and 22 exhibitors joined for the festivities. We awarded golf winners, and multiple prizes including our IIAPAC speaker raffle. Throughout the event money is raised to benefit the IIA of IL Political Action Committee (IIAPAC). You can still support IIAPAC by purchasing a Mega Raffle ticket - you could win $10,000! Find details on page 23. On Friday morning following breakfast, the FAC hosted their annual meeting where the Board was recognized. Visit www.ilfarmagents.com to view this year’s current members. After the annual meeting, the education topic was “Risk Management – Go DEEP” presented by Chris Barron of Ag View Solutions, LLC. He presented several factors for agents consider from a farmer’s perspective. He set the foundation of his presentation with beginning the discussion around multi-generational communication and important topics in the art of communicating. He then led attendees through a discussion of building a successful agency. Finally he led attendees through the numbers and went “deep” to help us understand the “WHY” behind decisions we make. He left the attendees wanting more, and we are looking at bringing him back to future sessions.

Congratulations to the second-place winners, pictured below: Ryan Miller Pete Wessler Adam Krultz Julius Dotzert

Overall the event was a great success and the FAC Board is looking forward to welcoming everyone back to Bloomington, IL on June 15-16, 2023. Mark your calendars now! Congratulations to the following winners from the event: Hole Contest Winners: Mark Miller Kevin Feeney Kyle Przykopanski Milan Miljevic Greg Sandrock

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august 2022

Thank you to our Sponsors of the 2022 Golf Outing & Annual Meeting

Harvesting Sponsors Illinois

Insurance Pre-Licensing Program

Cultivating Sponsors

Planting Sponsors ®

Save the Date FAC Mid-Winter Meeting February 2-3, 2023 Embassy Suites, East Peoria, IL

Stay Up-To-Date

Stay up to date with the Farm Agents Council on our website at www.ilfarmagents.com or through Facebook at www.facebook.com/FarmAgentsCouncil. Not a member of the FAC, but would like to find out more? Reach out to us at farmagents@iiaofil.org.

august 2022

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INSIGHT | associate news Thank you to our Associate Members.

Diamond Level

Platinum Level

Progressive Surplus Line Association of Illinois

Gold Level AAA Insurance Arlington/Roe BlueCross/Blue Shield of IL Grinnell Mutual Reinsurance Company Keystone Insurance Group, Inc. Pekin Insurance

Silver Level Imperial PFS IMT Insurance West Bend Mutual Insurance Co.

Bronze Level A. J. Wayne & Associates AMERISAFE AmTrust North America Auto-Owners Insurance Co. Badger Mutual Insurance Company Berkley Management Protection Berkshire Hathaway Guard Insurance Companies BluSky Restoration Contractors Chubb ClickVSC Columbia Insurance Group Continental Western Group Cornerstone National Insurance Company Cowbell Cyber CRC Group CRDN of Chicago (formerly Restoronics) Donald Gaddis Company, Inc. Donegal Insurance Group EMC Insurance Encova Insurance Forreston Mutual Insurance Company Frankenmuth Insurance Grange Insurance Homeowners of America Insurance Company Illinois Mine Subsidence Ins. Fund Illinois Public Risk Fund Indiana Farmers Insurance 32

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Insurance Program Managers Group J M Wilson Liberty Mutual/Safeco Insurance Madison Mutual Insurance Company Marble Box Marsh, Berry & Company Maximum Independent Brokerage, LLC Mercury Insurance Group Midwest Insurance Company Nationwide Pouch Insurance Previsor Insurance & Missouri Employers Mutual PuroClean Emergency Restoration Services Rockford Mutual Insurance Company RT Specialty - Naperville Sensa, Inc. ServiceMaster DSI Society Insurance Specialty Risk of America Synergy Select The McGowan Companies Travelers UFG Insurance UIG - The Agent Agency Utica National Insurance Group W. A. Schickedanz Agency, Inc./Interstate Risk Placement Western National Insurance Westfield august 2022

associate news | INSIGHT West Bend Mutual Insurance Makes Ward’s 50 Ranking

West Bend Mutual Insurance Company has placed in the Ward’s 50 group of top-performing property and casualty insurers for 2022. The recently released list includes the best industry performers of nearly 3,000 U.S.-domiciled companies. West Bend is recognized for its outstanding financial results in the areas of safety, consistency, and performance over a five-year period (2017-2021). It is the eighth consecutive year the company has been included on this list. The Ward Group’s methodology evaluates key safety and consistency measurements and performance tests. Ward’s 50 identifies companies that pass financial stability requirements and measure their ability to grow while maintaining strong capital positions and underwriting results. To be awarded the designation on the 2022 list, insurance companies must pass minimum thresholds of performance. “Being included again in the Ward’s 50 list of top property and casualty insurers in the U.S. is a great honor for us,” stated Kevin Steiner, president and CEO. “I extend my thanks to our associates for their outstanding performance and to the independent agents who represent West Bend Mutual Insurance Company, who are why we’ve achieved this success.”

SECURA Insurance Named a Top 50 Carrier by Ward Group for Ninth Consecutive Year

SECURA Insurance has again earned a place among Ward Group’s 50 top-performing property and casualty insurers for its performance over a five-year period (2017-2021). This is the ninth consecutive year the company has been recognized on this list for superior financial strength. “We are honored to be named a Top 50 carrier by Ward Group once again,” said Garth Wicinsky, SECURA President & CEO. “This recognition speaks to the strength of relationships between our associates and our independent agency partners. Earning a place on Ward’s 50 shows our shared commitment to long-term financial stability and our ability to take care of our policyholders.” Ward Group is the leader in benchmarking and best practices services for the insurance industry. The company analyzes nearly 3,000 property-casualty insurance companies in the United States to identify top performers annually. In addition to being named to Ward’s Top 50, SECURA has an A (Excellent) rating from AM Best, which affirms its solid financial results and ability to pay claims. SECURA is also certified as a Great Place to Work based on associate feedback about the company’s workplace culture, and was ranked number 11 on the Fortune Best Workplaces in Financial Services & Insurance for small and medium companies, number 44 on the Fortune Best Medium Workplaces, and number 38 on Fortune Best Workplaces for Millennials for small and medium companies.

august 2022

Encova Insurance Wins Aite-Novarica Insurance Technology Impact Award

Encova Insurance was announced as a winner of the 2022 Aite-Novarica Insurance Technology Awards for their Personal Lines Transformation. With 65 technology project submissions, Encova was one of 12 winners, and one of three winners in the category of core systems: large property/casualty. “We are honored to receive this award that showcases the technology we have implemented in recent years,” Encova Executive Vice President and Chief Strategy Officer John Kessler said. “The decision to move forward with personal lines and invest in Guidewire’s state-of-the-art technology did not come easy; but it was absolutely the right strategy. We are proud of our cross-functional internal team who implemented this new solution during a pandemic and the outstanding support we received from strategic partners such as PwC and Cognizant to see this through to fruition.” Encova’s Personal Lines Transformation consolidated six legacy systems to improve the online experience for policyholders and agents, using Guidewire’s InsuranceSuite and Digital Portals to create one system. Encova has implemented this project in 10 states so far, with plans to expand. New business counts in 2021 increased by 144% year-over-year, and straight-through processing for issued new business has risen from 0% to 56%. “This transformation reinvented who we are in regard to our personal lines offerings and has modernized our capabilities,” Encova Executive Vice President, Personal Lines, Matt Wilcox said. “Our new system provides our agents and policyholders with a best-in-class experience with state-of-the-art digital capabilities. I couldn’t be prouder of how far we have come and the coverages and digital experience we are now able to offer.” Through this technology, Encova has implemented paperless delivery and automated payments for policyholders, in addition to e-signature and API integration. “Core systems modernization efforts are among the most difficult projects insurer IT organizations can undertake, but they’re often vital for enterprise agility and risk reasons,” Aite-Novarica Group Head of CIO Research Harry Huberty said. “As Encova’s case study demonstrates, these projects can be massive and complex; coordinating mission-critical workstreams across hundreds of resources takes exceptional communication. When they are successful, they can create transformative impact for their organizations.” The success of this transformation was the result of a detailed strategy and plan, effective collaboration and defined goals amongst the team and partners.

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INSIGHT | agency members in the news Dan Passananti Wins Business Insurance Break Out Award

Dan Passananti of Assurance, a Unit of Marsh McLennan Agency LLC, is the recipient of the Business Insurance Break Out Award. The up-and-coming leaders honored in the Business Insurance 2022 Break Out Awards are thriving in one of the most dynamic insurance markets of the past few decades. Whether counseling clients on how to manage through such a tough and volatile environment or managing their own organizations as they rebound from the COVID-19 pandemic, these young managers and executives are helping to shape the insurance and risk management sector as it enters a new, technology-driven era.

The 40 honorees selected for the awards program represent some of the most talented leaders emerging in the industry. To be eligible for the award, nominees must work in commercial insurance or related sectors and cannot have worked in the field for more than 15 years. To maintain diversity in geography and types of organization, the honorees are grouped in four regions of the United States: Northeast, South, Midwest and West. All of the nominations - which highlighted the nominees’ client-service skills, expertise and leadership qualities were reviewed by BI editors. To view all Break Out Award winners, visit www.businessinsurance.com/break-outawards. Congratulations, Dan!

Wondering what other agencies are doing for training? How do your peers handle employee rewards? What are other ways to invest in your employees?

Check out the new community - for members only! Here you can share, discuss, ask questions and more!

connect.iiaofil.org 34

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august 2022

TECH EXPO

Join IIA of IL and Chicagoland IIA for this technology vendor event.

Thursday, August 25 1:00 - 5:00 pm

Joe’s Live • Rosemont, IL

The IIA of IL Technology Committee & Chicagoland IIA have joined forces for an afternoon of learning & socializing. The event will feature exhibitors with live product demos, an education session on cryptocurrency including IL CE, and food and drinks during the networking reception. Stay for Chicagoland IIA’s

Party in the Park

Let Chicagoland IIA buy you a cold drink!

Attendees are invited to move next door after the Tech Event. Rosemont’s Party in the Park will feature Heartache Tonight, an Eagles Tribute Band and post-show fireworks. Reserve your spot today! Attendee Fee: $50 - IIA of IL Member/$75 - Non-Members Sponsors: $500 (includes 2 tickets to both events)

For details, scan this code or go to https://l.ead.me/TechExpo august 2022

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Recently, the IIA of IL asked our members to submit their community service information so that we can help celebrate! If you would like to see your agency highlighted in a future issue of Insight, fill out the short submission form at www.iiaofil.org/Agency-Spotlight.

AAdvantage Insurance Group Throughout the month of April, AAdvantage Insurance Group raised funds for low-income students in the area. Starting April 1, the agency started donating $5 to Veda’s Care Closet for every referral received.

“We are also really hoping to simply support and help fund this incredibly worthy cause,” Blanchette said. “Our CEO, Josh Kaburick, really has a strong sense of community service that he brings to AAdvantage.”

The business has also been collecting shelf stable foods, hygiene products and school supplies.

“We had just decided to start doing a monthly charity spotlight/charity referral program here at AAdvantage so I suggested we feature Veda’s as our first charitable organization,” Blanchette said. “Josh Kaburick and Andrea Wallace [Director and P&C-Operations], had both heard of Veda’s and loved their mission so they signed on to the idea right away.

Veda’s Care Closet was started by Edwardsville High School students Veda Kommineni and Caroline James. Their goal is to provide essentials to low-income students in District 7. The idea behind the organization is that if these students don’t have to worry about basic necessities, they can focus on growing and learning as students. The staff at AAdvantage raised $105 for Veda’s and was able to collect more than 50 items. “The entire team here at AAdvantage is really passionate about this fundraising effort,” said Amanda Blanchette, agency curator and engager of AAdvantage. “We hope that our effort brings awareness to Veda’s Care Closet and its mission to provide students in District 7 with basic necessities so that they can focus on growing as students and not spend time and energy worrying about how to obtain these items.

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In May, AAdvantage Insurance Group donated $5 for every referral to Goshen Market Foundation. Their mission is to provide healthy food to the community, educate about sustainable farming practices and agriculture, and practice sustainable agriculture. The agency had 39 referrals and were able to write a check to Goshen Market Foundation for $195. Great work AAdvantage Insurance Group!

august 2022

iia of il news | INSIGHT

IIA of IL Education Classes

september

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Pre-Licensing-Property & Casualty Virtual E&O Roadmap to Personal Auto & Umbrella Ins Webinar CISR-Commercial Casualty 2 Virtual Flood Insurance, FEMA, and the NFIP Webinar E&O Roadmap To Cyber & Privacy Insurance Webinar CISR-Elements of Risk Management Virtual class Pre-Licensing-Life & Health Virtual E&O:Identity Theft, Red Flags, and Money Laundering Webinar E&O - Roadmap to Homeowners Endorsements Webinar Why Good People Do Bad Things: Ethics Deep Dive Webinar CISR-Insuring Commercial Property Virtual CIC-Personal Lines Virtual E&O - Roadmap to Policy Analysis Webinar E&O: Duties, Best Practices, Certificates and More Webinar CISR-Insuring Persoanl Auto Exposures Virtual

New Members bronze associate member Cornerstone National Insurance Company Columbia, MO

copper associate members IDIQ LLC Temecula, CA Michigan Commercial Insurance Mutual Sarasota, FL Smart Choice Agents of Illinois Chicago, IL august 2022

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Pre-Licensing-Property & Casualty Virtual E&O Roadmap to Personal Auto & Umbrella Ins Webinar Ethics: Essentials for the Insurance Producer Webinar CISR-Personal Residential Property In or Springfield or Virtual Class

Person Virtual!

E&O Roadmap To Cyber & Privacy Insurance Webinar CISR-Personal Lines Miscellaneous Virtual Class Pre-Licensing-Life & Health Virtual CIC-Commercial Multiline Springfield or Virtual Class

son In Petrual! ir or V

E&O:Identity Theft, Red Flags, and Money Laundering Webinar Agent’s E&O: Defenses and Preventions Webinar E&O-Roadmap to Homeowners Endorsements Webinar E&O - Roadmap to Policy Analysis Webinar

New Members member agency Boehler Insurance Springfield, IL D L R Insurance Agency Algonquin, IL Keystone II Insurance Agency, Inc Rockford, IL Partners Hometown Insurance Agency LLC Sparta, IL Titan Insurance Services Inc. Bloomingdale, IL Zanger Insurance Group, LLC Quincy, IL For information regarding IIA of IL membership or company sponsorship, contact Tom Ross, Director of Membership Services, at (217) 321-3003, tross@iiaofil.org. insight

INSIGHT | classifieds for the insurance professional by the insurance professional

INDEPENDENT INSURANCE AGENCIES WANTED

AGENCY/AGENTS/PRODUCERS WANTED

02. Forest Park/Oak Park agency for over 60 years, will meet your needs by providing space, markets, marketing & sales support, automation, merging with or purchasing your agency. Perpetuation/ Succession Plans, BuySell Agreements also available. We have experienced, educated and dedicated staff for you and your clients. Have access to our numerous companies, office services and many other resources. Retain ownership in your book with contingency. Please look closely at us- we are an agency you want to do business with! We’ve done it before, we know how- we make it easy! Visit our website at forestagency.com/agents.html, or call for a confidential discussion and a list of Agency benefits.

17. We are an Independent family-owned agency located in the Chicago area. We are looking to expand through growth and acquisition. If you have a small to medium sized agency and are looking to sell, call or send us a message. We are looking for Personal and Commercial Lines accounts with preferred companies. We look forward to hearing from you.

GALO Insurance Agency, Inc (847) 832-0888 steve@galoagency.com

Dan Browne will provide an agency evaluation/appraisal at little cost to you. Please call:

OPPORTUNITIES/SPACE AVAILABLE/RETAIN OWNERSHIP

13. We are a 100 year old Northbrook agency looking to discuss any mutually beneficial opportunity. Our producers, mergers, clusters and agency purchases receive 50% commissions on new and renewal business without any expenses. We can provide: office space, phones, agency management system, service renewals and changes. The companies we represent are: Badger Mutual, Employers Mutual, General Casualty, Guide One, Hartford, Kemper, Progressive, Rockford Mutual, Safeco, State Auto, Travelers and Met Life. Contact:

Dan Browne or Cathy Hall Forest Insurance (708) 383-9000 www.forestinsured.com/mergers-acquisitions

AGENCY WANTED

20. Since 2004, Central Illinois Agents Group LLC has been providing independent agents with a variety of markets with contingency opportunities. Agents have availability to several markets that they may not be able to sustain or maintain on their own. We have markets for personal, commercial, agricultural and crop insurance lines. Let us help you get to the next level.

Nancy Solomon Martini, Miller & Schloss, Inc. (847) 291-1313 Ron@martini-miller.com

Visit www.ciagonline.com for contact information.

We Make Hiring Easier

CareerPlug’s hiring software helps agents attract more qualified candidates, identify the right candidates with confidence, and improve hiring results. CareerPlug will provide IIA of IL members access to a free account that can be used to post jobs, manage applicants, and improve the organizations’ employment brand. Association members can also access a “Pro” version of CareerPlug for a special rate to take hiring to the next level.

Learn more about CareerPlug and check out the brand new IIA of IL job board at

www.iiaofil.org

insight

august 2022

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