e-Insight - February 2021 by Big I Illinois

FEBRUARY 2021

INSIGHT CUSTOMER CARE and

CUSTOMER EXPERIENCE - CX in Insurance for the “Now” Generation - How to Improve the Insurance CX

Plus

It’s Time to Make Your Reputation a Top Priority

Pamper your customer’s business with a policy from West Bend. Your customers gave their business what it needed to grow to the pride and joy it’s become. Now help them nurture it. An insurance policy from West Bend is the best way to keep it happy, healthy, and profitable. So wrap it in the cozy warmth of the Silver Lining®.

FEBRUARY 2021

Editor & Graphic Design - Rachel Romines

Advertising - Tami Hubbell

CONTENTS 12

IIA of IL Wellness Series: I’m Fine (and Other COVID Lies)

15 18 22 24

Why it’s Time to Make Reputation Your Top Priority

27 28

Were You Prepared for the Hard Market?

By Claudia St. John

By John Graham

Customer Experience (CX) in Insurance for the “Now” Generation

By Jake Levant

Customer Care and Customer Experience

By Lani Hamilton

How to Improve the Insurance Customer Experience

By Benedict Clark

By Curtis Pearsall

Getting Motivated to Prospect

By John Chapin

In This Issue

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

7 8 9 11 17

President’s Message Trusted Choice Brett’s Two Sense Government

e-Insight

30 32 32 33 34

Associate News Young Agents Agency Members in the News IIA of IL News Classifieds

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

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

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.

Board of Directors Executive Committee

Regional Directors

ADVERTISERS 35

ACUITY

APPLIED UNDERWRITERS

BERKSHIRE HATHAWAY/GUARD INSURANCE CO

CIRCLES CONCIERGE

4 10 5

ENVISION HEALTHCARE GRINNELL MUTUAL REINSURANCE COMPANY IIAPAC

INSURANCE PROGRAM MANAGERS GROUP

SWISSRE

W.A. SCHICKEDANZ AGENCY, INC.

WEST BEND MUTUAL INSURANCE CO.

Committee Chairs

IIA of Illinois Staff

Budget & Finance | Bennie Jones (312) 960-6200 | bjones@rmsoa.com

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

Education | Teresa Fleming, CIC, CISR (815) 849-5219 | tess@leffelmanassoc.com

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

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

Accounting & Admin Services Tami Hubbell - (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 - (217) 321-3013 - jjacobs@iiaofil.org

Director of Membership Services Tom Ross, CRIS, CPIA - (217) 321-3003 - tross@iiaofil.org

Sr. Vice President/Chief Financial Officer Mark Kuchar - (217) 321-3015 - mkuchar@iiaofil.org

Products & Services Administrator Janet White, CISR - (217) 321-3010 - jwhite.indep12@insuremail.net

Chief Executive Officer Phil Lackman - (217) 321-3005 - plackman@iiaofil.org

Director of Prof. Liability & Ins. Products Carol Wilson, CPIA - (217) 321-3011 - cwilson.indep12@insuremail.net

Central/Southern Marketing Representative Lori Mahorney - (217) 415-7550 - lmahorney@iiaofil.org

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IIAPAC

Independent Insurance Agents

Y R T

S U D

Political Action Committee

N I R

U O TY

R O P

P U S

The Independent Insurance Agents Political Action Committee (IIAPAC) supports candidates for and members of the Illinois General Assembly who support the legislative agenda of independent insurance agents.

IIAPAC is a bi-partisan committee, making significant contributions to both Republican and Democratic candidates.

IIAPAC - Your Association Fighting For You Fought off retroactive business interruption efforts. Joined efforts in beating back a harmful workersâ&#x20AC;&#x2122; compensation rule. Make changes to the Department of Insuranceâ&#x20AC;&#x2122;s regulation on the Premium Fund Trust Account (PFTA). Introduced legislation to provide parity to total loss of auto claims. Introduced legislation to make several changes to the Surplus Lines Code. Introduced legislation to give agent notification for lapsing life insurance contracts. Introduced legislation to provide consumer protections from bad actors in the public adjuster arena.

We Need Your Help Your financial support will help elect and re-elect candidates who share our business philosophies. In 2019, only 22% of IIA of IL member agencies contributed to IIAPAC which amounted to $41,100 - far below the average of comparable industries.

www.iiaofil.org/Government/IIAPAC

president's message | INSIGHT

Happy New Year! Happy New Year to all of our members. I’m focusing my remarks this month on the important role our association plays in the legislative and regulatory process. I think we all understand that our great business is regulated on the state level. This creates a challenge for the IIA of IL to ensure the voices of our members are represented in Springfield. In order to represent the independent agency channel, the IIA staff takes a very intentional approach to creating relationships with the IL Legislature and IL Department of Insurance. Invariably, several pieces of legislation surface each year that, if passed, would have a very negative impact on our clients and our independent agency channel. At the same time, each year, there are several items our association is typically introducing that benefit the independent agency channel and our clients. The one constant we could all agree on is that our business continues to be challenged by new proposed regulation and legislation. I was planning to share some detailed examples of recent rules and bills that have been contemplated or adopted recently that impact our business to demonstrate the power of government relations. However, I decided against that since Evan Manning does such a good job on a very regular basis keeping our membership updated on legislative and regulatory issues. In fact, I urge you to read Evan’s update in this current issue of Insight. I want to focus a few words on how you can help. There are three ways you can impact your business legislatively.

3. Contribute to IIAPAC every year. Currently, only 22% of our members are contributing each year. We can do better and we need to do better. IIAPAC benefits 100% of our members but, currently, only 25% of our members are supporting IIPAC. We have found that the biggest reason our contribution percentage is low is that most of you are so busy and don’t realize you are not contributing. I have sent a video message urging this support. The IIAPAC provides the funding to create and strengthen relationships with many key legislators that impact our business. As you know, Illinois has a new House Speaker, new Director of Insurance, and several new legislators. The legislative agenda is very aggressive this year. Help us defend the Independent Agency system by sending your IIAPAC donation in today. My Message is simple. We are all in this together. Therefore, I am asking all of you to simply go to iiaofil.org and give to IIAPAC today. Nobody will judge the contribution amount. Whether you are comfortable with $25, $50 or $500, it’s completely up to you. Again, on behalf of all of our members, a special thank you to our IIA staff for all you do every day to protect and promote the independent agent channel. All the Best,

1. Hire professional and competent representation in Springfield. The great news is that you have already done this very well. By your commitment to membership in the IIA, you have Evan Manning, Brett Gerger, and Phil Lackman working every day for all of you. I can tell you from personal experience that all three of these gentlemen are so well respected by legislators and regulators. They are all known for being very fair in their approach. They are relied on by legislators and regulators for guidance, education, and counsel on many relevant insurance related issues. 2. Get to know your local legislators and stay informed. There are dozens of new legislators in the 102nd General Assembly, so this is a perfect opportunity for you to reach out and develop a relationship. Know your legislator - reach out, meet them and become a resource for them in your local community. It is also important that Evan is aware of your relationship, as these connections are one of our strongest advocacy assets. Please take a few minutes out of your schedule and read updates from Evan and our government relations committee. The IIA staff always appreciates any perspective you have, so make sure your voice is heard if you have something to contribute.

George Daly with former Senate Insurance Committee Chair John Mulroe and IIA of IL CEO Phil Lackman

George Daly - IIA of IL President - (708) 845-3311 - george.daly@thehortongroup.com february 2021

insight

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Rebating My standard answer when I was at the Department - If you’re going to ask the question, it’s probably a rebate. Rebating is one of the easiest laws to violate in the Illinois insurance code. 215 ILCS 5/151 of the Illinois Insurance Code is an antiquated law that could use an update (hopefully in the near future). Technically, by the letter of the law anything that you give to a consumer that has value and induces them to purchase insurance is a rebate. Luckily, in 2012, the Director issued a bulletin which detailed prohibited and allowable practices. This bulletin is currently in place today as it has not been replaced by any subsequent Director bulletin. This bulletin provides reasonable conditions and guidance. Highlights of the bulletin are as follows:

B r e t t ’s 2 Sense

Acceptable

Prohibited

Value added services that relate to service of the policy, risk reduction or provide general information regarding insurance

Flex spending administration; Pre-paid legal services; Payroll services; Employee benefit programs; Other HR services

Existing clients – meals, sporting events, -insurance other non-insurance social related activities

Potential clients - meals, sporting events, -insurance other non-insurance social related activities

Gifts – Minimal value (not defined) pens, pencils, calendars, golf balls provided to general public; raffles with no obligation

Gifts – predicated on quote or purchase

Food & refreshments at educational seminar where nothing is sold Charitable donations as long as client does not influence the donation

The good news is this has become a national issue and risen to the National Association of Insurance Commissioners (NAIC) Information & Technology Committee. The NAIC is working on a model law to address this issue. The Association is actively engaged and participating in this process. The model law that is currently being consider includes many things that are

currently in the 2012 bulletin. The model law as drafted right now will allow states to set the minimal amount. This aspect will be huge as it will give producers the clear guidance that has never really existed due to being left up to the discretion of each individual Director. 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 february 2021

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government | INSIGHT

Prejudgment Interest Coming to Illinois

By Evan Manning

During the “lame duck” session that concluded on January 13th at noon before the 102nd General Assembly was sworn in, legislators took final action on a number of bills. One of the most impactful pieces of legislation will have serious ramifications on the insurance industry. House Bill 3360 passed on January 13th will impose prejudgment interest in tort actions. The effect of this legislation will be an extraordinary burden for the citizens and businesses of Illinois to absorb. Illinois law has not previously recognized prejudgment interest in tort actions for personal injury or wrongful death. Instead, Illinois’ judgment interest statute only imposes post-judgment interest in tort actions at the rate of 9 percent per year from the date of the judgment’s entry through the date of the judgment’s satisfaction. This may change, however, following the General Assembly’s passage of House Bill 3360. American courts have traditionally applied the common law rule that prejudgment interest is not available in tort actions in the absence of a statute or court rule. This legislation would contradict this common law rule. Even in states that allow prejudgment interest on personal injury judgments, many of them – including Tennessee, Utah, Maryland, Arizona, Oregon, and Washington -- exclude non-economic damages from the calculation. House Bill 3360 states that prejudgment interest at the rate of 9 percent per year is to be imposed in all tort actions seeking recovery for personal injury or wrongful death. It states further that prejudgment interest begins to accrue “on the date the defendant has notice of the injury from the incident itself or a written notice.” in all actions brought to recover damages for personal injury or wrongful death resulting from or occasioned by the conduct of any other person or entity, whether by negligence, willful and wanton misconduct, intentional conduct, or strict liability of the other person or entity, the plaintiff shall recover prejudgment interest on all damages set forth in the judgment. Prejudgment interest shall begin to accrue on the date the defendant has notice of the injury from the incident itself or a written notice. In entering judgment for the plaintiff in the action, the court shall add to the amount of the judgment interest on the amount calculated at the rate of 9% per annum. Finally, the bill is effective immediately upon enactment into law, including in cases where the alleged personal injury or wrongful death occurred before the bill’s effective date for any personal injury or wrongful death occurring before the effective date of this amendatory Act of the 101st General Assembly, the prejudgment interest shall begin to accrue on the later of the effective date of this amendatory Act or of the 101st General Assembly or the date the alleged tortfeasor has notice of the injury. This pre-judgment interest proposal could result in over-compensation to a plaintiff and make a defendant financially liable for delays that a defendant did not cause. february 2021

A 9 percent interest rate could provide a windfall to a plaintiff in a time of court delays. This is particularly true when one considers that inflation is non-existent, and the federal prime lending rate is 3.25 percent. Pre-judgment interest rules could also be counterproductive, as they make settlements more complicated and less likely. For example, adding interest to punitive damages lacks any logic and complicates the ability to reach fair settlements, because these damages do not reflect compensation to the claimant for any loss and their value is set by the jury at the time of trial based on considerations such as the reprehensibility of the conduct. Adding prejudgment interest to the punitive damages amount simply adds another layer of punishment that the jury did not deem appropriate. At this crucial time when small businesses are struggling to re-gain their footing, imposing a 9 percent pre-judgment interest rate on any claim against them when the court system is under siege raises costs and puts them under even more pressure to simply close rather than endure trying to defend slow moving court cases while pre-judgment interest rates compound. This is especially egregious where court delays related to the COVID-19 pandemic are certainly not the responsibility of the defendant but place additional pressures on defendants. House Bill 3360 now heads to Governor J.B. Pritzker (D) for signature. Bills approved during the lame-duck session must be sent to the Governor within 30 days of passage. The Governor has 60 days from receipt of the legislation to act. Because the 101st General Assembly has concluded, any bills that are vetoed by the Governor are considered dead. Legislators may reintroduce any vetoed legislation as new legislation for consideration during the 102nd General Assembly. Because Illinois has a two-year statute of limitations for most tort actions and a four-year statute of limitations for construction-related injuries, House Bill 3360 has the potential to add as much as two or four years of interest to a plaintiff’s judgment before any suit is even filed. It is therefore not surprising that the bill was championed by the Illinois Trial Lawyers Association and opposed by numerous business, medical and defense interests, including the IIA of IL, National Association of Insurance and Financial Advisors of Illinois (NAIFA-IL), Illinois State Association of Health Underwriters (ISAHU), Illinois Association of Mutual Insurance Companies (IAMIC), Illinois Chamber of Commerce, the Illinois State Medical Society, the Illinois Defense Counsel, the Illinois Insurance Association, the National Association of Mutual Insurance Companies, and the American Property Casualty Insurance Association. The IIA of IL as well as a number of the trade associations have sent letters to the Governor urging him to veto the bill. We will keep our members updated with any developments with this legislation. Evan Manning is the Director of Government Relations for the IIA of IL. He can be reached at emanning@iiaofil.org. insight

IIA of IL Wellness Series

I’M FINE (and Other COVID Lies) By Claudia St. John

One day this past week, Lisa Ritchie, our VP of Recruiting and Talent Selection, and I were on a video call. She was having a rough day and needed to vent about something non-work related: managing the virtual schooling of her children due to COVID school closures. “You know,” she said, “I’m perfectly fine going along and going along and then one day, Bam! I hit an emotional wall. Do you know what I mean?” she asked. Yes, I absolutely do know what she means. I too have hit emotional walls over the past few months, sometimes over something very upsetting and important such as the COVID death of someone I’ve known my whole life, and sometimes over something trivial, such as the lack of paper towels in the grocery store. And, I’ve fielded many calls from clients who have hit their own emotional walls. What I’m learning is that as the global health pandemic lingers on in its insidious way, our resiliency is challenged in unexpected and sudden ways. Our ability to handle adversity is occasionally compromised. And unfortunately, our moments of poor emotional intelligence are unpredictable and inconsistent. And it seems that no one is immune to these emotional gyrations. This is a very real workplace challenge that many business owners and managers are facing these days. When talking with your employees, it’s important to let them know that they may be experiencing unpredictable ups and downs. Feel free to share your own emotional struggles so

insight

that others know it is normal to experience feelings like frustration, sadness, and anger. It helps to know none of us are alone in our feelings. Fortunately, there are things you can do to help. To manage those feelings, here are some steps to improve emotional intelligence:

Step 1 – Self Awareness

Often times, we don’t realize our emotions have hijacked us until we’re in a full-blown state of fight, flight, or freeze. We may find ourselves lashing out at others, or freezing from anxiety or fear. These are indications that our brain has been stimulated by a stress signal and stress hormones like histamines, cortisol, and epinephrine are flooding our bodies. Chances are, however, that before you were in an extreme emotional state, your body was sending you signals that you were feeling fear or anxiety or sadness or anger. Start paying attention to your body. For me, I feel stress as butterflies in my stomach. I find myself clenching my fists or clenching my jaw when I’m angry. I feel frustration in my shoulders and head. Most of the time, I feel these emotions in my body before I have identified my emotion or why I’m feeling it. The most important element of managing your emotions is to notice that you’re having an emotion. For the next few days, try to pay attention to the signals your body is sending you indicating that you are having an emotional reaction to something around you. Listen to your body.

february 2021

Step 2 – Self Regulation

While being aware that you are in an emotional state is a critical part of improving emotional intelligence, it’s not enough to help you manage stress. The second most important step is to do the things that you know calm you. Ask yourself, “Why am I stressed? Why am I feeling this way?” Simply asking yourself those questions will force your brain to redirect the stimulus from your amygdala (the primitive part of your brain responsible for releasing those nasty fight, flight, or freeze hormones) to your higher cortex (the part of your brain responsible for cognitive thought). Once you’ve had a chance to think about the fact that you are in an emotional state, try to identify ways to self soothe and calm yourself down. Some common techniques include: • Taking deep breaths • Going for a walk • Meditating • Listening to calming music • Looking at artifacts of beloved people or places, such as pictures, artwork, rocks, shells, pottery • Exercising • Spending time with friends • Spending time alone • Redirecting thoughts through the use of a mantra or soothing saying There are many things you can do to calm your emotions. The important thing here is to start your calming techniques as soon as you feel your body responding to a stress signal. If you wait too long, your amygdala will pump those hormones into your body, and they are likely to hijack your emotions for up to 8 hours. So the faster you can recognize and redirect your emotions, the faster you will be able to move on from them.

Grace is equally important. It is a kindness that you can show to others, whether they have earned that kindness or not, and it is a kindness you can give to yourself, particularly when you find yourself feeling guilty, insecure, or in a state of self-loathing. There is no point in treating others with grace if you fail to do so for yourself. The more self-love you can show yourself, the greater the capacity you will have to love others. Finally, as we all work to manage the occasional emotional storms during this difficult time, I wanted to share a special prayer that I practice which I learned during my training as a Reiki healing practitioner. I hope it brings you comfort in the days and months ahead: Reiki Prayer

Just for today, I will not worry Just for today, I will not be angry Just for today, I will be grateful for my blessings Just for today, I will work honestly And Just for today, I will be kind to every living thing (including myself). Claudia St. John is president of Affinity HR Group, Inc., Big “I” Hires’ affiliated human resources partner. Affinity HR Group specializes in providing human resources assistance to associations such as Big “I” Hires and their member companies.

Step 3 – Practice Gratitude and Grace

It is said that the brain cannot process fear and gratitude or anger and gratitude at the same time. This is why, in times of stress and uncertainty, so many therapists and counselors recommend keeping a gratitude diary. A gratitude diary is a record kept every day of the three to five things you are grateful for. I don’t personally keep a diary because, well, I’m not disciplined enough, but I do know that being grateful is critical to my own mental health and happiness and has been for years. You can be grateful for something small, like securing a perfect parking spot, or for something big, like the love of a dear friend or one’s children’s good health. Whatever it is, that gratitude brings health and emotional healing.

february 2021

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Send new submissions to wcnewsubmissions@ipmg.com or call Nathan at 630-485-5968

Why it’s time to make REPUTATION YOUR TOP PRIORITY By John Graham A recent alert grabbed my attention. It made the bold statement that the most important issue facing businesses today is managing their reputation. This wasn’t about splashing on a bright, new coat of PR paint, issuing selfserving press releases, or scheduling TV ads featuring “happy and grateful” employees. More than ever, today’s consumers align their dollars with businesses that share their values and concerns. It may be somewhat ironic that it took the COVID-19 pandemic to get our attention focused on where we’re spending our money. In the past months, companies have responded with new bursts of transparency. They want us to know what they care about, the good they are doing, and the causes they are supporting. They may also have come to realize there’s no place to hide and it’s in their best interest to take a stand. But we shouldn’t stop there. Every employed person who wants to keep their job, is looking for a job, or wants to move up should be equally concerned with the care and cultivation of their reputation. Watch out! Someone is out to replace you. Or, the boss is scrutinizing the team to decide who adds value and who doesn’t. Reputation makes a difference. To take a closer look at the implications of reputation management, here are three questions that apply equally to both businesses and individuals: 1. Do we value top performance? We say we do. So does our marketing messages. Everyone says they’re onboard, but where’s the evidence? Are we assuming that front-line workers behave with customers how we say they do? How rare is it that we encounter people with the ability, training, and desire to put themselves in someone else’s shoes? How often do they give out information that’s inaccurate? What happens with frontline workers is a reflection of what occurs throughout companies. We say, “Customers First.” But do our actions tell the same story? Unfortunately, nonprofits, who depend on volunteers to help deliver services to those with the greatest need, have similar stories. Many volunteers, who are good people, lack the necessary training to help those they’re asked to serve. How might their clients feel? Just more of what they’ve come to expect. 2. Why are we in business? When asked this question, “To make money” is the instant response. That may seem to be a popular answer, but not for everyone. For a growing number of workers, there’s more to it, particularly many members of GenZ, those born between the late 90s and 2012. They want to feel they’re making a difference and they’re looking for a place that’s welcoming and they can be committed, not just do a job. february 2021

If done correctly, corporate vision statements possess relatable value. For example, the Starbucks vision is to establish the company “as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.” The Walt Disney Company’s corporate vision is “to be one of the world’s leading producers and providers of entertainment and information.” It’s aspirational, with a pull that attracts both talent and viewers. Companies and individuals that have the courage (read: guts) to boldly and unequivocally express publicly their vision let it be known that they are committed to caring for their reputation. It’s actually a daring a step, so make no mistake about it. They are saying, “Judge us by our performance. Measure us by our own words.” 3. How do we respond when something goes wrong? The answer to this question depends on whether or not you take reputation management seriously or if you believe you can get away with twisting the truth to fit your whims. Once again, it pertains to both companies and individuals alike. Often, our behavior reflects what we try to get by with. A political leader urges his constituents to stay home for Thanksgiving, then gets on a flight to be with family. Another, who also seems to have seen himself as an exception to his own public appeal, invites his mother for the holiday dinner. Both apologized—but only after getting caught. We’re all aware that things don’t always go as planned. The unexpected happens. Then, why do we ignore dealing with this possibility in advance, so we are prepared before a project, product or event derails? Why is it so difficult to face up to the possibility of negative outcomes? The task of reputation management isn’t figuring out the spin to put on an issue after something goes wrong. It’s looking ahead, anticipating consequences, and making the right decision. And, by the way, there’s nothing better than the truth, the sanitizer that kills 99.99% of blowback. The famed author William Faulkner’s personal life often seemed to be at odds with his brilliant fiction, which he seemed to grasp. In a new book, Michael Gorra, writes, Faulkner “seemed to know how much his personal reputation might damage the reputation of his work.” It applies to all of us. 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, 617-774-9759 or johnrgraham.com.

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FE BR U AR Y

20 21

INSIGH T

CUSTO and MER CA RE CUSTO MER E - CX in X PERIE Insura nce fo - How NC r th to Plus

Improve

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It’s T e to Reputim ation aMake Your Top Pri ority

INSURANCE SPEAK:

Core Values are More Important Than Ever in the COVID-19 Era In this month’s e-Insight. february 2021

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Customer Experience (CX) in Insu FOR THE “NOW” GENERATION The “now” generation expects much from Insurance today: comprehensive choices, efficiency, flexibility, and speed-of-delivery. The global obsession with the digital world means that customer experience in insurance is no longer judged in a vacuum – against other insurance providers, but rather against other digital service providers. And, accordingly, to compete, insurance companies must focus on delivering CX in more intuitive and innovative ways. Quick Summary: This article covers key considerations for customer experience (CX) and how it relates to Insurance • Why CX is so important to the insurance industry right now. • The role of key CX ingredients of digitization and automation have on claims processing. • Nine CX Interventions your Insurance business can implement today.

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Insurance businesses have traditionally had limited direct customer interactions. They might have been limited to an occasional ad mailer or renewal notice, with a couple emails dropped in. Today, this fails even the most basic customer experience. In today’s digital environment, insurance players must harness new CX standards to find ways to effectively meet consumer expectations - especially during the underwriting and claims process.

Why Customer Experience in Insurance is Important 81% of companies expect CX to be the key battleground in the race for market dominance. Meanwhile, a McKinsey study shows that a whopping 70% of consumers base their opinion of a business on the quality of its CX. The importance of customer experience is true across product and service categories, and even more so when providers are selling intangible benefits - like in Insurance industry.

february 2021

With the advent of digitized technology, the claims process can be completely reinvented. Claims processes can be digitized, accelerated and automated. While insurance companies have started to address many of their core systems, claims processing is is the most difficult, and important processes to reimagine. You may have already automated premium payments, quote generation, and policy renewals. But have you considered digitizing the entire claims process? Digitization effectively shifts the focus from antiquated, manual processes to consumer-focused, digital processes.

surance By Jake Levant

McKinsey estimates that P&C and life insurance carriers derive about 30-40 % of business costs from the top 2030 core end-to-end processes. Many of those core end-to-end processes live in the claims arena and are notoriously slow in digitizing, let alone accelerating. While digitizing claims processes provide basic savings, a Deloitte’s study on life insurance underwriting suggest that prospects are 20% more likely to purchase a life policy as the underwriting and application process gets closer to real time. The value of applying that process acceleration to claims processing is the biggest CX opportunity for insurance companies.

So, what does the ideal CX claims processing look like? • Instant, integrated processes enable claimants to complete claims on the first try (first call resolution). Insurers use simplified mobile-friendly claim forms and allow customers to attach supporting evidence with selfie-style pictures of damages. The mobile approach means that claimants in natural disasters or on the road can complete claim submissions on the spot. These solutions can be completed from any phone, anywhere without downloading a clumsy dedicated application. • Thanks to client-friendly workflows, claim processing can move swiftly between the claimant, agent and assessors towards adjudication and payment. Removing manual overheads and digital document processing ensures documents are complete and correct – removing rework and costly time from processing. More than 5 days are saved on claim payouts alone.

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The Impact of CX on Customers and Insurance Companies Claims processes that are digitized, automated and accelerated, have clear benefits for customers and insurance businesses. Customers can file their claims, check the status of their claims, manage their policies and make decisions about their file easily. They can log on at a time of their choosing to receive personalized information and increase/decrease coverage as needed. For the insurance industry, they can ensure that claims are accurately and completely filled. They are automatically sent to assessors. Carry-on workflows can be triggered without manual intervention, and payment cycles can be expedited. Reducing the heavy costs associated with manual workflows and slow payments are clear wins for today’s insurance businesses. Those CX dreams may sound lofty, but there are many CX wins that are close at hand for insurance industry. Here are a list of 9 Insurance CX interventions your business can capitalize on today.

9 Insurance CX Interventions #1 Move from Paper to Digital Documentation Digital workflows and collaboration channels including, reviewing quotes, document completion, and eSignatures slash the transaction costs of all types of policies, especially P & C. Our customers estimate that Lightico’s eSignatures alone save $15 dollars per transaction in paper costs, faxing/scanning/emailing time alone – not including agent calling time. #2 Move to eForms to Shorten Sales Cycles & Improve Closure Rates Purchasing insurance is a big deal, especially for customers who don’t see risk as an important element in their life. Therefore, customers are most inclined to purchase a policy when an agent is speaking with them to review the risk factors covered and the benefits of a policy. That makes it critical to complete documentation and signatures while you are speaking with a customer. Agents estimate that the likelihood of closing customers halves every few days. This underscores the importance of binding policies while you are speaking with clients. #3 Eliminate Time-consuming, Frustrating Errors with eForms Eliminate errors and frustrating rework associated with sloppy paperwork. Use preconfigured smart eForms and guided eSignatures to eliminate errors like missing data and signatures. It is important to have the customer review information and input their own details as if they are on a website, without the clutter of PDF’s and irrelevant information. During the claims process, a policyholder is anxious to get payment as soon as they can, and Insurance companies want to reduce the time it takes to pay claims. An agent should talk through the process and allow the claimant to accurately fill out paperwork, take photos, verify ID, and submit payment details. continued...

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#4 Reduce Customer Rework, Legal & Compliance Issues with eSignatures Audited, court-admissible documented client interactions surpass ESIGN regulation and enable insurance professionals to execute binding policies with unparalleled simplicity: customers can sign policies from their mobile phone with their finger.

#9 Offer Unparalleled Convenience Onboard clients who can’t get into your office. Manage onboarding remotely and ensure that you use facetime to build relationships. Speed & simplify documentation that customers can approve remotely which leads to higher efficiency, lower not-take rates and greater customer loyalty.

#5 Increase Customer Satisfaction by Completing Processes in RealTime Take advantage of agent-customer time by guiding the customer through required paperwork. Use in-call tools that allow for eSignatures and documentation to simplify the work with insurance professionals. Customers are demanding this simplicity and ability to transact from their mobile phones. By providing solutions that exceed customer expectations, agents see improved retention and referrals.

According to the New Horizons report, insurance companies lag behind other industries in the realm of digital transformation. While 42% of respondents maintain that complex regulatory requirements are the biggest barrier to digitization in their companies.

#6 Go Digital to Speedup Binding Cycles/Time To Commission Payout Help customers instantly complete and submit their forms to expedite forward processes. This speeding of processes shortens the time until agents receive their commissions, a paid agent is a happy agent! #7 Improved CX is a Win for Business Productivity Too By using a digital collaboration toolset including built-in automation and workflows, agents can spend more time with customers and less time managing backoffice paperwork, almost eliminating after call work. With customizable eforms and instant eSignatures, and simple payment solutions, agents can create and sign customers on policies and claims in real time. No call backs, scans or emails. #8 Eliminate Misunderstanding Risk & Frustration: Ensure Customer Get Coverage they Want The insurance industry is highly regulated, and any missteps can be costly. Using ESIGNapproved technologies, agents create flows that can eliminate any further disputes that they “weren’t shown that disclosure,” or “opt out of that coverage.” Also, agents can use a collaboration portal to display and have the caller review any important documentation like terms and conditions. The portal then records a tamper-proof, audited trail that documents exactly where and when customers opt into coverage terms. february 2021

Jake Levant is the VP of Marketing at Lightico. He is also a Tech Marketing Adviser, Speaker, & Writer. Reprinted with permission, the original blog can be viewed at www.lightico.com/blog/customer-experience-cx-ininsurance-for-the-now-generation/.

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Customer Care and Customer Experience By Lani Hamilton How we interact in the digital age has become more important than ever. Technology platforms have undeniably increased efficiencies in placing business however the human element and connection is becoming a lost art form. How do we, as the participants watching the way we work evolve, step in to ensure that automation does not equate into agents and their insureds being left to deal with automated bots to service their needs, undermining the overall client experience? Simple, keep your client at the center of how you create or improve processes and enhance your technology. We should be looking at our customerâ&#x20AC;&#x2122;s experience in the following touch points: Client Center Focus, Personal Connection, look at each interaction as a collaborative partnership instead of a transaction, Does the technology we use help or hurt the experience, and Adaptability.

Client-Centered Focus Are you doing your best to provide the best experience possible for your clients? Do you build processes to make their life easier, or yours? When issues arise, is the priority resolution to the maximum satisfaction of the client â&#x20AC;&#x201C; or the path of least resistance? If you answer no to any of these questions, it is time to reevaluate the why in what you are doing.

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Personal Connection What did your last few interactions with clients look like? Are they all cold and transactional? Is the underlying tone, gimmie, gimmie, gimmie? Do you respond well to that approach and would you go the extra mile if you knew this is what lies on the other end of the line? I am sure not. We are a social bunch by nature, and it is natural to want to build a conversation that shows the care goes beyond the deal currently on the table. Know your clients, what they are looking for and need out of you. Whether it be pricing, response time or relationship, we should know what solution we are providing and why it is important to them.

Collaborative Partnership Collaborate and build a relationship with your clients that is one you would want to be a part of, if you were them. Is it easier to work through an issue by picking up the phone instead of going back and forth via email? If you even must pause to think about this, pick up the phone. Our clients are our partners. Truly caring about solving a problem or making your clientâ&#x20AC;&#x2122;s life easier is key to nurturing the relationships we have spent our careers developing. We have found that finding opportunities to compliment our partners only serves for good on all sides. Increased satisfaction in our current business together and even more new opportunities to explore in the future.

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Does Our Technology Help or Hinder? How our customers consume is important. If we create enhancements to how we work but we serve ourselves first, what message is that sending? We care about you less than we care about our business. Due to the recent health climate around the globe, we all know firsthand what it was like to be thrust into a world where we could no longer separate our work and home lives. The work from home (WFH) environment has become normalized in the last year and with that, many challenges have surfaced. In many ways, technology helped the transition to WFH but the frustrations of not being a “tech” person or having to reset your password for the third time in a row can make anyone question how confident they are in their skills. In these moments, adhering to a strict internal process may be a final straw for someone.

We cannot let increased efficiencies and process automation boost our bottom line and kill the customer experience. Each client touch is an opportunity to build something greater than a single bind. Care about the challenges your clients face and find opportunities to engage and bring solutions to those problems. We are all experiencing the same treatment on different levels as technology around the world evolves. Empathize with this fact and consciously make choices to enhance each interaction. Engage in how you are serving your clients, what is working or not working, and how they are responding. Make the necessary tweaks when the personal connection is getting lost. Spend time creating an environment that is efficient and human, to the benefit for not only your clients but for yourself and your company as well. Lani Hamilton is a Workers Compensation Broker for IPMG, headquartered in St. Charles, IL, with service nationwide.

Adapt. Email the document, request the pricing, and solve the problem at hand, then fix the root cause of the issue with the client to alleviate future frustrations. Do the technology platforms you provide make doing business with you easier? For who? If your client is spending more of their time to save yours then I can assure you that you are losing out on opportunities. We also must be cognizant of whether automating processes allows for flexibility. Deadlines can pop up out of nowhere and if an automated process makes processing requests a ten-day lead-time, how do we accommodate our client when the need and urgency is very real. These should be top considerations when creating or improving our technology/service offerings to our clients and we can identify opportunities to enhance the overall customer service experience by simply asking yourself, what solutions do we bring to the table for our clients?

Adaptability Similar to technology, our ability to adapt to industry and situational changes is key to keeping client satisfaction as high as possible. Knowing the market and how it impacts not only your business, but your client’s business, is key. We often find that many of our clients have specialized in a few niche markets and focus time and energy in getting that business on their books. What happens when those lines or industries become harder to place? Are you on the forefront of helping with that change and are you able to pivot quickly to accommodate? We are only as useful as the solutions we bring to our clients. “I don’t know” or “We can’t/won’t do that” is closing the door to your partner and their experience with you.

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How do we, as the participants watching the way we work evolve, step in to ensure that automation does not equate into agents and their insureds being left to deal with automated bots to service their needs, undermining the overall client experience?

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How to Improve the

Insurance Customer Experience

By Benedict Clark

“Yes, I’m satisfied with my insurance provider” – said a paltry 29 percent of surveyed customers. And with only 16 percent willing to buy more products from their providers, it’s clear the insurance industry has got some way to go in the eyes of consumers. But how do you keep your customers satisfied when they’ve come to see your very service as not much more than a necessary evil? Choosing an insurance policy isn’t exactly high up on people’s lists of how to spend an afternoon.

Insurance Companies Can Do More

The battle for consumers’ attention has traditionally played out as a kind of frantic price limbo, suppliers jostling around to prove just how low they can go to tempt people in. But, clearly, this isn’t a sustainable approach. Insurers can’t simply keep on eroding profit margins all the way down to zero. So, what does represent a more practical route forward – and one that still resonates with consumers? According to research from Newsweek Vantage, the answer is “a differentiated customer service experience”.

Figure to the lower left shows top three options in terms of impact on successful competition

Source: https://c1.sfdcstatic.com/content/dam/web/en_us/www/documents/ industries/financial-services/insurance_competition.pdf

And the proof of this approach is very much in the pudding. Over a five year period, for example, US auto insurance carriers consistently providing best-in-class insurance customer experience generated two to four times more growth in new business and around 30 percent higher profitability than companies showing an inconsistent customer focus. So, it’s clear that creating a great insurance customer experience is crucial. But what exactly does that experience consist of?

What Your Insurance Customers Want Now

Ultimately it comes down to the expectations of the modern-day consumer. Let’s take a look at what those are. A frictionless experience Incidents leading to insurance claims may hit like a bolt out of the blue. This means customers need to be able connect with insurers at any time, in any place, through any method. At what could be one of the most stressful times in their life, the last thing they need is more unnecessary hassle. That’s why a Bain & Capital survey of more than 174,000 retail insurance consumers in 18 countries, showed customers everywhere value quality and ease of use. A company that stands out from the crowd With experience replacing price as the distinguishing factor between insurance brands, you need to be something different to stand out. US insurer Lemonade understood this only too well, making a name for itself with a fresh digital approach to claims processing. At the start of 2017,

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february 2021

its virtual assistant Jim set a world record as it reviewed, processed, and paid a claim in three seconds flat – and all with no paperwork to boot. A conversational experience Interactions between insurers and their customers have traditionally centered around incidents and policy renewal. But these days customers are looking for a more conversational experience - genuine two-way dialogue populated with easy and accessible back-and-forths on chat or voice. It seems insurance companies are some way off this - over 90 percent of insurers don’t talk to their customers throughout the whole year and, globally, 44 percent of customers have had no interactions with their insurers in the last 18 months. A personalized approach The circumstances of each individual are entirely unique to them. While insurance quotes and policies are sometimes based on understanding these subtle nuances, the same can’t be said for all customer journey touchpoints, where interactions are often generic leaving customers feeling like a small cog in a rather large machine. But with customers encountering these personal experiences elsewhere, particularly in the retail industry, they have come to believe the same should be available in insurance, too - 48 percent expect their insurers to use their data to offer more relevant services, according to Accenture. Open, honest, and helpful interactions The default state of mind for many customers when dealing with insurers is one of caution - if not outright suspicion. In fact, 1 in 3 consumers don’t trust their insurer to do the ‘right thing’ in exceptional circumstances. Consumers want a better understanding of what’s going on behind the scenes, and getting that depends on clear information. Perhaps that’s why, according to one global survey, “knowledgeable salespeople” are the number one customer experience requirement for policyholders.

9 Practical Ways to Improve the Insurance Customer Experience

When it comes to meeting your customer expectations and creating a successful - and sustainable – insurance business, there are a number of practical ways you can go about it. Get the website right Back in 2016, 79 percent of consumers said they would use a digital channel for insurance interactions over the next few years. With this shift now in full swing, getting the online user experience right is crucial. And it all begins on your website. Tools such as chatbots can add an extra element, but make sure your house is in order first. Leading Canadian financial services group, Manulife, decided to revamp its website to improve customer experience. Using site analytics, they discovered customers weren’t able to find what they were looking for. To fix this, Forbes reports that the company “consolidated 1,200 web pages to just 250 and centralized web production for greater efficiency.” Create a quick and smooth application process A recent survey of the top insurance websites revealed that an online application is the most popular digital method of engaging customers. But, to do an application process well,

february 2021

you must make it hassle-free. Prospects are 20 percent more likely to purchase a life policy as the underwriting and application process gets closer to real time. SE2 Digital Direct Life understands this need well. The Insurtech vendor provides insurers with a fully automated online application process – gathering key identifiers and an eSignature to authorize access to personal data. The system uses that information to perform an automated underwriting process, accurately assessing price and risk, while offering the customer personalized coverage and a mega-fast quote. Create an easy, speedy claims process The thought of going through a claims process is enough to put dread in many a customer’s heart. There’s no reason this should be the case. Now you can even make use of AI to deal with claims, keeping the fuss for the customer to an absolute minimum. Provide round the clock, free support The need to contact an insurance company is no respecter of convenience. Policyholders will have to get in touch with you come what may. In an ideal scenario, you should have toll-free phone lines manned by experts 24/7. If this genuinely isn’t possible, then you could go for an AI assistant in the form of a chatbot. “Kate” by Geico, for example, is a digital assistant that answers policy questions for Geico’s mobile app users. Kate helps customers with everything from knowing when their next payment is due to checking balances and fetching documents. There’s no need to search around online or pick up the phone to the contact center. Kate makes it easier to use the mobile app and get answers 24/7. Be omnichannel While digitalization has brought convenience to customers, that shouldn’t come at the expense of other channels. And if you truly want to achieve the gold standard, bring all your channels together so communication always continues where they left off, regardless of how customers interact with you. continued...

How do you keep your customers satisfied when they’ve come to see your very service as not much more than a necessary evil? Choosing an insurance policy isn’t exactly high up on people’s lists of how to spend an afternoon.

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At MetLife, for example, the company works to create a cohesive omnichannel experience so that customers are pleased no matter how they connect with the company, customers know that MetLife will always provide the same, high-quality experience.

An innovative example of customer data collection is the Aviva Drive app. A GPS collects data on driving behaviour, with safer drivers getting discounts on their car insurance. It even acts as a Dash Cam to automatically save footage of collisions.

Use the right tools Forty-five percent of insurers say that changing customer expectations is the primary business driver triggering investments in new technologies. And with a complicated marketplace packed full of customer touchpoints, it’s vital that you equip yourself to service customers properly.

Stress security and safety In an industry packed with sensitive data, consumers have concerns. A whopping 85 percent consider the risks of privacy and security breaches a disadvantage to sharing their data. But it’s precisely that data that will enable insurers to provide the best insurance customer experience. So, it’s absolutely essential you build trust with your customers when it comes to protecting their data.

Particularly If you have a complex application process, offering live chat or cobrowse options can help you provide seamless, high-touch customer assistance. For example, with cobrowsing, you can interact with a customer’s screen – with their permission – to see the process from their perspective, making it that much easier to take them through it and resolve any challenges that come up. Personalize the experience Even as late as 2016, only 22 percent of insurers had launched personalized, real time digital, or mobile services. Yet, collecting and applying customer data helps you improve insurance customer experience by offering product recommendations based on particular interests, location, and browsing history. Consumers are receptive to these recommendations being automated, too. A recent study showed that 74 percent of customers are very or somewhat willing to receive computer-generated advice on the type of insurance they should buy. Insurtech startup Trov provides personalization for its customers via flexible, on-demand insurance for a variety of gadgets - think smartphones and laptops. Consumers can switch cover on and off straight out of the app, just by the swipe of a switch. Make good use of data One of the best ways you can move away from crude rating factors - the likes of age and marital status - for pricing premiums and emphasize customization, is through the power of data. Data gives you a more complete view of your customers so you are better equipped to offer them the right products at the right time.

Recognize customer concerns around collecting data early in product and business planning, and make the implications of privacy concerns explicit. Honesty and transparency are very much the watchwords, whereas schemes such as the aforementioned Aviva Drive app help to show exactly how data is being put to use – in this case creating savings in the policyholder’s pocket (provided they are a safe driver!).

Into the Future

So, with a rapidly changing landscape and customer expectations shifting – not to mention the glut of new InsurTech startups shaking up the industry – acting to create a superior customer experience is more important than ever. Providers that gather and act on the richest data will hold the power to create the most relevant and rewarding insurance customer experience. You might need to do a complete overhaul of traditional products and processes, but the payout will be more than worth it. Originally featured on www.acquire.io/blog. Benedict Clark is a writer and psychologist with over ten years marketing experience in a range of different roles. He believes avidly in the power of words to connect people and ideas.

Providers that gather and act on the richest data will hold the power to create the most relevant and rewarding insurance customer experience. You might need to do a complete overhaul of traditional products and processes, but the payout will be more than worth it.

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february 2021

Were you Prepared for the Hard Market? By Curtis Pearsall

Without question, agencies around the country are all reporting a wide variety of issues that are symbolic of a hard market. These include increased premiums, reduced capacity, restrictive policy terms, and stricter underwriting from the carriers, to name a few. While the impact of the current market will vary based on the location of the agency and its customers, it is fair to say all agents are dealing with a different market today as compared to 5 years ago. How agencies deal with the hard market will certainly impact to what degree the market affects their bottom line. There are a number of “best practices” that agencies should note.

Start with the agency staff.

Since it has been a while since the industry has experienced a tightening, there is a good chance the agency has employees that have never been through a hard market and may not understand how to deal with it. Because there is a possibility that this market will cause some “emotion” from policyholders, counsel the agency staff on how to deal with customers that have just been advised their premiums are going up anywhere from 10% - 50% or higher based on the specific type of customer and the line of business affected. It is suggested to meet with the staff, discuss the issues, and train the employees accordingly.

Communication with your customers is key.

There is a good chance that you have customers who have been negatively affected by the COVID-19 pandemic. As a result, communicate with them on what their upcoming renewals will look like and what they can expect in the way of pricing and coverage terms. Many customers have never experienced a hard market before and may not understand the issues that result from one.

Reduction of limits.

It is certainly possible that a customer may desire to modify their coverage through options such as reducing their limits or increasing deductibles, especially in various lines - such

february 2021

as umbrella, professional liability, and directors and officers – that have been hit harder by the current market. When this happens, have these discussions well documented and memorialized, not only in your agency file, but with communication back to the customer.

More restrictive policy terms.

With the COVID-19 pandemic, carriers are likely including various communicable disease exclusions to clarify the lack of coverage. There may be additional restrictions agents need to be on the lookout for. While admitted carriers are generally required to notify customers when they are reducing coverage, surplus lines carriers are not required to do so. There is a chance that you will find a new exclusion or coverage change when you receive the renewal proposal from the wholesaler. This could be literally days before the account renews, so agents should try to be proactive in asking their wholesalers what type of policy coverages they can expect. In addition, with the chance the surplus lines industry will see an increase in application activity, agents should look to get their applications to their wholesalers as early as possible. Periodic follow-up is suggested to make sure the account is being worked on.

Moving coverage to a new carrier.

If the marketplace prompts a need to remarket the account, agents should be especially sensitive to doing a comparison between the expiring coverage and the proposed replacement coverage with reductions brought, in writing, to the customer’s attention. Encouraging the customer to read their policy is also strongly suggested. This marketplace will affect virtually every agency. The better prepared an agency is for all of the issues they will face will determine to what degree the agency is affected. Curtis M. Pearsall, CPCU, AIAF, CPIA is the President of Pearsall Associates, Inc. and Consultant to the Utica National E&O Program.

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Getting Motivated to Prospect

By John Chapin Recently I was in a sales meeting in which the owner of the company passed out an article on habits. We discussed good sales habits, how to acquire them, and what kind of habits it ultimately takes to be successful in sales. What was interesting was that we didn’t have any ah-ha moments or unearth anything new. Everyone had a pretty good idea of what it takes to be successful and yet, most weren’t doing those things. Something I’ve noticed over the years is that most people who aren’t doing what they need to do blame it on a lack of motivation. Many salespeople I encounter are constantly looking for motivation to go out and prospect and as a result, they struggle to make enough calls. Sure, most eventually get themselves to make some calls, but it’s rarely enough. Here’s the problem with motivation: if you’re waiting for positive motivation to “feel like” cold calling, it’s not coming. Do you wait for inspiration to strike before you take out the trash? In school, did you wait until you were excited to do your homework? Of course not. Why not? Because you knew it wasn’t coming. The same is true with cold calling. You’re never going to look forward to doing it. And, by the way, if right now you’re saying, “What?! I love to cold call!!”, you can stop reading this article. For the other 99.99999% of you, keep reading. So, the first point here is don’t wait until you feel like, or are positively motivated, to prospect. It’s not going to happen. Second, avoid the trap many salespeople fall into when trying to avoid the discomfort of prospecting. It’s what I call ‘tricking yourself’ into ‘thinking’ you’re prospecting when you’re actually not. What do I mean by

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that? Anything other than in-person, over the phone, or other ‘live’ forms of prospecting where you are actually talking to a person who is a potential prospect, is not prospecting. The most common forms of false prospecting are: sending cold e-mails without an immediate phone call, messages on LinkedIn, hanging out on other forms of social media, and going to the same networking events where you see 95 to 100% of the same people every time. E-mails, LinkedIn messages and the like are fine for follow-up, but never as an initial prospecting contact. Look, at the end of the day, you simply need to figure out how many phone calls and/or in-person calls you have to make and then find a way to get yourself to make the calls. If this is something you struggle with, here are a few things you can try: Tip #1: Focus on the long-term pain of inaction versus the short-term pain of action.

If you’re like most people, and assuming you’re a person of good character and integrity, you’re hard on yourself when you don’t make the necessary sales calls, which is what you get paid for, and ultimately what you promised to do when you accepted your job. You beat yourself up, talk down to yourself, your confidence and self-esteem take a hit, you feel guilty, you have a bad day because you didn’t live up to your obligations, and your lack of sales leads to depression. It’s painful all the way around and all those bad feelings suck. And by the way, you should feel this way if you don’t do what you’re supposed to do and what you promised to do when you accepted the job. That’s the long-term pain. All you have to do to avoid the long-term pain is make the calls and face the short-term pain of possible rejection. And by the way, stop kidding

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yourself, the short-term pain is never as bad as you think it will be. You’re not going to die, most people will not hang up on you, slam the door in your face, or scream at you and call you names, but even if some of them did, so what, what’s the worst that can happen? In fact, not only will the short-term pain not be as bad, you’ll also get a reward. All the negative things that happen when you don’t make the calls will flip. You’ll feel better about yourself, have more self-esteem, more self-confidence, and that in turn will flow positively into all the other areas of your life, oh, and you’ll be more successful and have a lot more money. Tip #2: Calculate how much money you make per call, whether you talk to someone or not.

Take the size of your average sale. Figure out how many calls you make to get a sale. Divide the amount of the sale by the number of calls. If you call and you get a busy signal, voicemail, someone says they aren’t interested, or any other number of things happen, just think to yourself, “Cool, I just made another $10 dollars.” Or, whatever number you came up with. Tip #3: Related to the above, realize that every call gets you closer to a sale.

Tip #8: Get completely sold on what you have to offer.

The first sale is to yourself. People will hear your conviction. Know that you are helping people and making their lives better. Tip #9: Repeat several positive affirmations two or three times before making your calls. Tip #10: Be prepared.

Have a script that you’ve rehearsed well and know exactly what to do and what to say. Finally, don’t expect to be perfect and do expect to face rejection. If being a great salesperson and making a ton of money was easy, everyone would be doing it. John Chapin is a motivational sales speaker, coach, and trainer with over 33 years of sales experience. He is the author of the 2010 sales book of the year: Sales Encyclopedia (Axiom Book Awards), which is also the largest sales book on the planet (678 pages). He can be reached at johnchapin@completeselling.com.

Tip #4: Focus on the intrinsic reward.

Imagine the ultimate payoff. What are your goals and dreams? What does your perfect life look like 5, 10, 20 or more years down the road? The more calls you make, the faster you’ll move toward that reality. Procrastinating and wasting another day moves you further away from that and closer to the opposite of that, closer to pain and misery. You can also tie it to something important like being a good example for your kids. Tip #5: Take some caffeine, listen to motivational music, watch a video that motivates you. Tip #6: Have someone hold you accountable.

Tell someone how many calls you’re going to make and if you don’t make the calls, you have to write a check for $500 to or a political candidate you can’t stand or an organization you don’t like and would never support. Tip #7: Make prospecting your #1 priority and get it done before you do anything else.

Once you get your most difficult task out of the way, the rest of the day will be much easier.

Something I’ve noticed over the years is that most people who aren’t doing what they need to do blame it on a lack of motivation. Many salespeople I encounter are constantly looking for motivation to go out and prospect and as a result, they struggle to make enough calls.

february 2021

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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 Blue Cross/Blue Shield of IL Keystone Insurance Group, Inc. Pekin Insurance Rockford Mutual Insurance Company

Silver Level Grinnell Mutual Reinsurance Company Imperial PFS IMT Insurance

Nationwide West Bend Mutual Insurance Co.

Bronze Level A. J. Wayne & Associates AFCO Credit Corporation AMERISAFE AmWINS Brokerage of the Midwest, LLC Auto-Owners Insurance Co. Badger Mutual Insurance Company Berkshire Hathaway Guard Insurance Companies Columbia Insurance Group Continental Western Group CRC Group Donald Gaddis Company, Inc. Donegal Insurance Group Encompass Insurance Encova Insurance Erie Insurance Group Foremost Insurance Group Forreston Mutual Insurance Company Frankenmuth Insurance Grange Insurance Illinois Mine Subsidence Ins. Fund Illinois Public Risk Fund Indiana Farmers Insurance Insurance Program Managers Group J C Restoration J M Wilson 30

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Kemper Liberty Mutual/Safeco Insurance Madison Mutual Insurance Company MarshBerry Maximum Independent Brokerage, LLC Mercury Insurance Group MetLife Auto & Home Midwest Insurance Company PEOPLE Previsor Insurance ProAg Management Inc RT Specialty - Naperville ServiceMaster DSI Society Insurance Specialty Risk of America Transcom General Agency Travelers UIG - The Agent Agency United Fire Group Universal Property & Casualty Utica National Insurance Group W. A. Schickedanz Agency, Inc./Interstate Risk Placement Western National Insurance Westfield february 2021

associate news | INSIGHT Arlington/Roe Expands Leadership Team Arlington/Roe, managing general agent and wholesale insurance broker, expands its leadership team and aligns for future growth and perpetuation with the appointment of Andy Hamilton, CIC, as Transportation Manager.

Before moving to Columbus in 2017, Hamilton was the sales and agency relations manager for J.M. Wilson in Indiana and Ohio. He also has experience as a territory manager in Indiana with Liberty Mutual/Safeco and as a risk management consultant with the Henriott Group. He holds a Certified Insurance Counselor (CIC) designation.

Over the past 10 years, Arlington/Roe has grown exponentially from 119 associates to 189 and from $112 million in premium to $215 million. Notably, the company is still independent, family-owned and two of President and CEO Jim Roe’s sons, Andy and Patrick Roe, are serving in leadership roles. Hamilton has prior leadership experience as the branch manager of the Ohio office at J.M. Wilson Corp., and he has a wide variety of experience on the company, agency and E&S sides. He was responsible for all production in several states, and he led a team whose majority of premium was in transportation business.

Commercial Personal Lines We offer insurance solutions for homeowners and for small, medium, and large businesses with competitive pricing, an easy submission process, and the opportunity for multi-product discounts. Visit www.guard.com to see what we can do for you. Businessowner’s Commercial Auto Commercial Package Commercial Property Commercial Umbrella General Liability

Homeowners Personal Umbrella Professional Liability/E&O Workers’ Compensation Pay-As-You-Go options with over 200 payroll partners!

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

APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY AmGUARD • EastGUARD • NorGUARD • WestGUARD

february 2021

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INSIGHT | agency members in the news IIA of IL Agency Members Celebrating Anniversaries Walter W. Schultz Insurance Agency, Inc. in Lansing, IL is celebrating their 98th anniversary. Hruska Insurancenter, Inc., with locations in Mokena, Chicago, and Griffith, IN, is celebrating their 65th anniversary. Congratulations! If your agency is celebrating an anniversary, send the information to Rachel Romines, Insight Editor, at rromines@iiaofil.org.

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february 2021

iia of il news | INSIGHT

Education Classes february

2 3 9 10 10 11 16 17 18 22 23 23 24 24

Pre-Licensing Course - Property & Casualty Virtual E&O Roadmap to Personal Auto & Umbrella Ins. Webinar Flood Insurance and the NFIP Webinar CISR - Insuring Personal Residential Property Virtual E&O Roadmap To Cyber & Privacy Insurance Webinar Agents E&O Webinar Pre-Licensing Course - Life & Health Virtual CISR - Commercial Casualty 1 Virtual E&O - Identity Theft, Red Flags, Money Laundering Webinar E&O Risk Management Webinar CISR- Insuring Commercial Property Virtual Ethics: Essentials for the Insurance Producer Webinar E&O - Roadmap to Policy Analysis Webinar CIC - Commercial Property Virtual

march

2 2 8 10 11 11 16 18 18 22 24 24 30

Pre-Licensing Course - Property & Casualty Virtual E&O - Identity Theft, Red Flags, Money Laundering Webinar E&O Roadmap to Personal Auto Webinar CISR - Personal Lines Miscellaneous Virtual CISR - Insuring Personal Residential Property Virtual E&O - Roadmap to Homeowners Endorsements Webinar Pre-Licensing Course - Life & Health Virtual CISR - Agency Operations Virtual Agents E&O Webinar E&O Risk Management â&#x20AC;&#x201C; Challenge of Change Webinar CIC - Personal Lines Virtual E&O - Roadmap to Policy Analysis Webinar CISR - Life and Helath Essentials Virtual

New Members member agency Parrilli & Associates Inc, DBA Kelly Assurance Oak Forest Shield Insurance Services Evanston

february 2021

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INSIGHT | classifieds for the insurance professional by the insurance professional

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.

Visit www.ciagonline.com for contact information.

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! Weâ&#x20AC;&#x2122;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.

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:

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

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

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

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february 2021

OPEN SEMCI Single-entry, multiple-company interface (SEMCI) is like magic!

Acuity, long recognized as a leader in agency interface technology, is committed to supporting SEMCI in commercial lines. SEMCI drives efficiency in the quote and application process and allows you to choose how you want to do business with Acuity. Acuity currently partners with several of the leading commercial lines insurtechs. We are building, exploring partnerships, or expanding with numerous other independent agency technology solutions. And Acuity is on the forefront of integration technology, continually building the connections necessary to be ready to connect to new insurtechs as they emerge.

Expect big things in workers’ compensation. Most classes approved, nationwide. It pays to get a quote from Applied.® For information call (877) 234-4450 or visit auw.com. Follow us at bigdoghq.com.

e-Insight - February 2021

Articles inside

Were You Prepared for the Hard Market?

How to Improve the Insurance Customer Experience

IIA of IL Wellness Series: I’m Fine (and Other COVID Lies