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e-Insight
online journal at www.iiaofil.org/Resources/Insight INSIGHT e
DIGITAL TRANS FORMATION IN THE INSURANCE INDUSTRY
INSIGHT FEBRUARY 2020 MAKE YOUR VOICE HEARD
IIAPAC An Investment in Your Business Plus
MORE ATTACKS ARE COMING
5 Things to Know About Cyber in 2020
By Shawn Ram Printed on PropertyCasualty360.com
GET INVOLVED GET INVOLVED LEGISLATIVE CONFERENCES
Hear from industry leaders on issues that affect your business. Learn about impactful legislation in the insurance and employer industries.
MAKE YOUR VOICE HEARD MAKE YOUR VOICE HEARD
WEDNESDAY, MARCH 18 WYNDHAM CITY CENTRE, SPRINGFIELD
General Session - 2:00 pm
Featuring a variety of speakers that will discuss the 2020 Census, redistricting, and the Graduated Income Tax.
Breakout Sessions - 3:45 pm
There will be a new format to the breakout session and will feature a legislative issues presentation and panel discussion from the leaders of the IIA, IIA of IL, and ILHIC. This is a great opportunity to hear from the top Government Relations leaders in the industry and learn about some of the most impactful legislation in the insurance and employer industries.
Legislative Reception - 5:30 pm Following the breakout session will be the Legislative Reception from 5:30-7:30 pm at the Illinois State Library in Springfield. Legislators from all over the state will be in attendance. MAKE YOUR VOICE HEARD! MAKE YOUR VOICE HEARD!
LEGISLATIVE CONFERENCES
MAKE YOUR VOICE HEARD MAKE YOUR VOICE HEARD
Each year, IIA of IL coordinates a group of members to represent Illinois at the Big “I” Legislative Conference. Attendees have the opportunity to visit with their elected officials and provide valuable insights on issues that impact agents and insurance consumers. The conference will include speakers from both political parties and a featured guest or panel presentation that will be announced later this spring.
IIA of IL provides travel incentives, scheduling assistance, and opportunities for members to network with their peers and association leadership. By taking part in the conference, agents will experience the benefits of state and national association membership first-hand. For all participating IIA of IL members, the association covers conference registration and hosts dinner Wednesday and Thursday nights. First-time attendees will be reimbursed for a two-night stay at the Hyatt Regency. Returning participants may request a $250 travel stipend. Attendees are responsible for booking their own travel arrangements arriving in Washington, D.C. by 1:00 p.m. on Wednesday, May 13th. and departing any time after 10:30 a.m. on Friday, May 15th. IIA of IL will coordinate hotel reservations.
For the latest updates to the conference schedule, visit: www.independentagent.com/Events/ Pages/Calendars/default.aspx
For information on travel incentives, scholarships, hotel reservations and any other questions about the trip, contact Jennifer Jacobs at (217) 321-3013, jjacobs@iiaofil.org or Evan Manning at (217) 321-3002, emanning@iiaofil.org.
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Reinventing Retirement in the Insurance Industry
Retirement deserves a revamped definition - one that honors retirees’ goals and needs and supports businesses’ growth.
Baby boomers (born roughly between 1946-1964) are exiting the workforce in droves - as 10,000 of them turn 65 every day. But many employers aren’t yet prepared to replace them, resulting in a growing talent gap.
Industries like insurance are particularly vulnerable because boomers are retiring at the same time there’s a shortage of millennials entering the industry. This shifting dynamic has become a hot topic- one that is shining a light on boomer retirement and its impact on businesses and the economy.
These days, nothing about retirement is predictable. According to a recent article in the Chicago Tribune, the changing nature of retirement presents employers with three core challenges:
It’s hard to plan when baby boomers will retire. Boomer retirement dates are constantly changing. Some boomers retire early, and some retire late. In general, though, retirees are living longer and retiring later.
It’s difficult to know what retirement looks like. As stated in the article, nobody has a clear definition of what ‘retirement’ means these days since it’s no longer “a magic moment when you stop working entirely.” Retirement (or pretirement) today might include in-home offices, communal workspaces, flexible hours and video-meetings. Work arrangements become less tied to geography and 40-hour weeks, and more attuned to where and when employees work most efficiently for their employers’ purposes. As retirement’s chronological age is redefined, the physical factors influencing remote work and flexible hours will redefine retirement as well.
It’s hard to figure out how to replace boomers, especially in certain industries like insurance, which are staffed by fewer young professionals than many other sectors. The insurance industry has an abundance of qualified, sharp, motivated and experienced professionals who are prepared to continue working as they approach and reshape the landscape of retirement. While they are virtually
By Sharon Emek
irreplaceable, our wisest move is to employ them, honor their work-life balance needs, and continue to innovate as insurance firms that are prepared to serve clients with engaged, experienced employees.
Due to this uncertainty about the when, what and how of retirement, many businesses are adopting flexible work models that delay the when in its entirety and stave off the immediate how of replacing veteran workers. As mentioned in the Tribune, “the share of companies offering older workers partial-year employment and shorter hours is expected to rise sharply. About two in five companies surveyed are considering offering part-time work or flexible hours by 2020, nearly double the current rate.”
This approach benefits both employers and baby boomers. Boomers who want or need to work can keep working while enjoying a flexible schedule. Employers get to keep their experienced workers while opening space for up-andcoming younger employees.
It’s time to build smart, flexible, mutually beneficial solutions that pair talented veteran insurance professionals with insurance companies who need their skills. Veteran workers boost company culture with knowledge, motivation and experience. They benefit from being able to contribute economically and professionally while gradually shifting into fewer working hours. Companies retain top talent while maintaining a diverse workforce that meets their clients’ needs.
Retirement certainly isn’t cut and dry like it once was, but our life expectancy and economic landscape are not what they once were, either. As people live longer and need to work longer, retirement deserves a revamped definition - one that honors pretirees’ goals and needs and keeps our businesses growing, as we leverage our industry’s most experienced talent.
BUSINESS ETIQUETTE FOR AGENTS Some Finer Points
By John Chapin
Most business etiquette is common sense. The following are some finer points:
• If someone tells you that you didn’t get the business,
smile, find out why, thank the person for his or her time, make sure the door is open for the next opportunity, and exit courteously. • Always allow the customer or prospect to decide where you’re going to eat unless she is visiting your home turf and asks you to choose. At that point, ask what kind of food she prefers, and give her a choice of locations. • If you have someone else from your company with you, always let the customer or prospect sit in the front seat of the car, unless he begs you to sit in back. • Always pick up the check. • Know the rules of any game you’re going to play with a customer or prospect. Walking across someone’s putting line in golf can really tick some people off. • Don’t be overly competitive, you might even let the customer win if possible. • Make sure you’re at least of average skill before you try bonding over any kind of game. • Extend common courtesy to everyone you encounter. This includes all people at the company you’re calling on, not just the person you’re there to see. In addition, be polite to the competition, people you pass on the street, and even the in-laws you don’t particularly like. You don’t have to go overboard - just be pleasant and professional. • Don’t sit down until the customer or prospect is seated. • Never assume anything, and always give the customer or prospect a chance to save face. • Never argue with the customer or prospect. • Never walk into a customer’s facility with a competitive product that is sold on the premises.
• Watch what you say. Don’t say anything you don’t want someone to hear. For the most part, avoid any controversial topics. • Be sociable. • If you’re unsure of what to wear, it’s always better to overdress. You can always take something off. • Don’t drink too much. • Be selective about whom you hang out with. • Watch what you do and how you act.
Items You Present to the Prospect or Customer
Brochures, proposals, business cards, gifts, and other items speak volumes about you, your company, and your product. They may not make or break the sale, but they can dramatically affect your image.
Keep these rules in mind:
• Brochure pictures and the brochure itself should be in color and professionally printed. • Make sure all spelling and grammar is correct. • Have the prospect’s name and title correct. • Proposals should be thorough but not overwhelming. If you are answering a request for proposal (RFP), follow the instructions completely. • Make sure all gift items are clean, brochures and proposals are not wrinkled or soiled, and written information is clear, concise, and professional.
Don’t skimp on business cards. Here are some quick rules:
• Get your cards printed by a professional, not on your home computer. • Use raised print. • Use color. • Add your picture to your business card. • Add distinguished honors, club memberships, etc., to your business card. • If you are a member of the 100 Percent Club, the Inner Circle, or any other specially recognized group within your industry, have these printed on your card. • If you would like to present an image that’s out of the ordinary and a “cut above,” try:
o A card that is twice as thick as a standard business card. o A larger card than usual. o A shape other than rectangular. o A magnetic business card. o A folded card with details inside.
Use good judgment with your business card design. If you’re selling to conservative bankers, you don’t want hot pink business cards. At the same time, if you’re in the flower business, a scented and colorful card might work.
The Pen You Use
Have a high-quality pen and make sure it works. Also, have a backup pen. By high quality, I mean a Cross pen or something similar.
Note 2: All the pens you use should have black or blue ink unless you have a great reason related to your business that dictates another color.
The Car You Drive
If you have a company car, you can disregard this part. The car you drive projects a certain image. You can impress people with a car, turn people off with a car, and you can make people jealous with a car. Some potential customers will decide you make too much money or, perhaps not enough money, based solely upon the car you drive. When selecting a car, your objective is to drive a business car that is appropriate for what you are selling and one that puts you in a position where you are least likely to be judged negatively. A fire-engine red 700 Series BMW may not be the best car for calling on bankers, yet it would be appropriate for calling on dentists, doctors, or lawyers. A Ford Taurus may not be the best car to drive if you’re selling Lear jets, but it is fine if you’re selling office products. If you sell Cadillacs, you’d better be driving one. Look at what customers and other salespeople in your industry drive. Keep your car as clean as possible. Fuzzy dice and other idiosyncrasies probably aren’t a great idea. There aren’t too many bumper stickers I’d recommend either, especially political or religious ones. Keep the car smelling good.
One more note: out-of-state license plates can be a potential red flag. Make sure the out-of-state plates are appropriate or that you have an appropriate answer for why you have them.
Your approach to a sales call begins in the prospect’s parking lot, sometimes even before. One person I know got cut off in traffic and gave the other driver a “not so nice” gesture. The driver followed him into the parking lot of the company he was calling on. It was the CEO’s secretary. Not good. You never know who can see you from which window or who is in the parking lot with you. Act as if you have a camera and microphone focused on you at all times. We all know of situations where people have said something inappropriate, not realizing that others were listening. Watch what you say about the competition and other people anytime you are in public. It’s a small world - as many of us have learned the hard way.
Where You Park Your Car
Do not park up front in the prime parking spots. These are reserved for customers and sometimes upper-level management. You should park in spots at the back of the lot or spots that are the farthest from the facility.
John Chapin is a motivational sales speaker and trainer with over 26 years of sales experience. He is the author of the 2010 sales book of the year: Sales Encyclopedia. He can be reached at johnchapin@completeselling.com.
Without Customer Trust Nothing Else Matters
When the contractor didn’t deliverer the proposal as promised, the homeowner called to find out when to expect it. “Sorry about that,” was the reply. “You’ll have it later today or tomorrow.” When it arrived, what passed for a proposal was a “cost estimate” and a hand-drawn layout lacking specifics. It appeared to have been dashed off on the way over. The contractor came recommended, but the homeowner chose another company due to a lack of trust.
Hands down, customer experience is today’s #1 marketing hot issue - and for good reason. Up to 82% of customers who leave do so because of a bad experience. While businesses keep trying to plug up the customer experience holes, it’s never enough.
There’s a lesson here: it’s over and done if trust isn’t established as early as possible. Without a reservoir of goodwill available to recover from a bad customer experience, customers bail.
Even though winning sales is the goal, the first objective is winning customer trust. Credibility matters since the doubt meter is always running with prospects and customers. This is why bulletproofing customer relationships is the number one task. Today’s customers don’t automatically trust brands, businesses, or salespeople. It’s earned by actions, experience, and attitudes that develop over time. And here are ways to establish it:
Follow through. When contacting a business, a lack of follow through may be customers’ greatest fear. Allay their worries by acknowledging how they feel: “I know how important this is to you… I’ll be back to you about 3:00 pm today.” or “You have my word…but should you want to contact me here’s my email address and cell number.”
By John Graham
Solve problems fast. “Will-they-or-won’t-they take care of it?” is what every customer is thinking when they have a problem. What they’re looking for is a clue as how a business will respond. Surprise them by letting them know you understand and will take care of it now. If you can’t do it, change the policy!
Be candid. “Why didn’t you tell me?” are words no salesperson wants to hear from a customer. It happens because there’s often a wide gulf between what customers think they want to buy and what’s going to best serve their needs. To assure satisfaction be candid with them to make sure they will be satisfied.
Encourage feedback. Companies may say they want to hear from their customers, but make it difficult, at times nearly impossible, to do so. If you’re serious about getting feedback, make it easy for customers to contact you and then respond promptly.
Personalize content. And not by dropping in the customer’s name a couple of times. Imagine having a cup of coffee with someone and keep that picture in your mind as you write. It’s how you say it - with empathy, openness and understanding that makes it personal.
Make relevant recommendations. Let customers know you “get it” by giving them specific ideas and suggestions that fit them. General offers have a negative effect; they make customers feel you don’t know them.
Test ideas and initiatives first. Before making changes affecting customers ask them to comment and express their views. Don’t bother if you’re afraid you’ll learn something you don’t want to hear. Taking customers into your confidence avoids mistakes - and creates trust.
Respond quickly. When customers contact businesses today, they either don’t expect a response or assume it will take a day or longer. This is no way to build trust. Response Rule: best within 15 minutes…repeat, within 15 minutes. Be up front. Bad customer experiences make consumers wary and doubtful. They’ve heard it all before so they’re ready to do battle when someone says, “We put customers first.” Being transparent in dealing with customers helps boost their trust.
Acknowledge mistakes. Desensitize tense situations by offering an apology and do it in a way so customers know you care - and not just trying to appease them. Then, resolve it to the customer’s satisfaction. Is it worth the effort to build customer trust? It is if you believe that new customers come with built-in skepticism, waiting for the other shoe to fall. This won’t change unless trust is the basis of the customer relationship.
Keep your promises. Many “one star” customer comments, those that inflame customers the most, have to do with “broken promises.” Solution: do what you said you would do when you said you would do it. If you don’t, be prepared to suffer the customer’s wrath! In their mind, you have disrespected them.
John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of “Magnet Marketing,” and publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@grahamcomm.com or johnrgraham.com.
Give meaning to “valued customer.” These two words are useless unless they translate into value for customers. Examples: a higher credit limit, loyalty options, a direct phone number, an assigned CSR, or some special service.
Find out what they expect. Even though trust is the critical component of customer relationships, its meaning can be highly individual. To avoid customer dissatisfaction and disappointment, ask them what they expect from you.
Managing General Agency Excess Surplus Lines Broker
Commercial Insurance Solutions Since 1923 We are a fourth-generation family-owned commercial insurance agency. Our mission is to bring Excess & Surplus lines & Specialty lines products to the marketplace. We do this by representing the industry’s highest regarded domestic and international top-rated A companies & with employees who surpass industry standards in ethics, education, underwriting knowledge, and service.
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2020
conference
April 22-23 DoubleTree Hotel Oak Brook, IL
Powered by:
Day and a half Program focused on Professional Development, Personal Growth, Leadership Skills, and Relationships
Designed to meet the needs of everyone in our industry
young agents, veteran agents, CSR’s
Registration Fee: $120
(includes all education sessions, breaks, meal functions, time with exhibitors, and social function with drink tickets.)
Registration fee increases to $130 on March 1.
A block of rooms has been secured at the DoubleTree Hotel for $114/night. Room block expires March 31.
Exhibitor, Sponsorship & Advertising Opportunities Available
Stacey Brown-Randall Brown-Randall is a member of the business failure club, a contrarian on how to generate referrals and a supporter of the entrepreneurial dream.
Referrals... Without Asking There are many ways to generate leads or prospects to fill your pipeline. From traditional business development tactics like cold calling, networking events, leads groups to newer techniques like social selling, social media ads and thought leadership. While many of the traditional methods and new techniques work, one method is consistently overlooked.
Referrals. The reason generating referrals from clients and COis (Centers of Influence) is typically overlooked is because of old-school advice we have believed for years. Either we have been taught referrals are random, sporadic, something you cannot control, or we have been taught the only way to control them is to ask for them.
But what if there was another way? What if you didn’t have to ask? Join Stacey Brown Randall for a discussion on her 5-step process to generate referrals without asking.
Productivity Demystified Do you ever get to the end of the day and wonder: “Where did the time go?” or “I know I worked all day, but what did I do?” Being busy doesn’t mean you are being productive. How you invest your time, get work done and manage information overload directly impacts your ability to be successful. Taking control isn’t just for “natural” planners and to do list makers ... using brain science and proven techniques everyone can work within their natural style to take control and use time efficiently.
Matt O’Neill O’Neill is renowned for motivating both experienced and new sales professionals through his engaging, interactive style and leaves everyone with actionable insights they can implement for greater success.
Dare to be Different In today’s dog-eat-dog business environment, it is essential that agents stand out in a crowded marketplace... to separate themselves from their competition. Simply put, to be different!
This program will convey that price is the enemy of differentiation. By definition, being different is worth something. Consumers are willing to pay a premium, redefine the buyer/seller relationship, erect barriers to the seller’s competitors and establish the seller as a trusted advisor when a differentiated platform offers perceived value in the marketplace. Dare to be Different is a program filled with diagnostic and consultative strategies focused on navigating the inner workings of a business or family to identify previously unrecognized issues to deliver unanticipated risk mitigation solutions.
Six Secrets to Peak Producer Performance Are you at peak performance? Is your potential being realized? In this engaging and soul searching program, Matt O’Neill will uncover the “6 secrets to peak producer performance.
A Peak Performer is one who is maximizing his or her potential for success. Peak Performers go about their business with clarity and a sense of excitement, purpose, passion and pride. While these individuals come from all walks of life and have differing skill sets, they share these secrets to success. Through this program, you will learn strategies to significantly increase your new business hit ratio, create a steady flow of qualified new business referrals and reduce outside competition on key accounts. Shhh… it’s a secret!
