e-Insight - January 2019 - Non-Member by Big I Illinois

Learn More Today â&#x2013;º

KORY • Signed a free agent contract with the St. Louis Rams • Knows good coverage from blown coverage • A decade of insurance experience

Most valuable player

Meet Kory, one of our Specialty Lines experts. He and others on his team are in a league of their own when it comes to insuring Specialty business. Their solid game plan and fast turnaround set you up for big wins. It’s the expertise we look for in a dream team. And they’re supported by our caring claims group who’ll get your clients back in the game.

SECURA Specialty. It’s how you win.

Commercial | Personal | Farm-Ag | Specialty

Editor & Advertising - Deann French | Graphic Design - Rachel Romines

the journal of trusted choice independent insurance agents of illinois

January 2019

CONTENTS 12

Getting Ready for 2019 - Crack the Prospect Code and Win More Sales By John Graham 2019 Blueprint for Success By Deann French

12 9 Trusted Choice

2019 Trends - What to Expect in the Year Ahead By Heather Ishikawa

Three Insurance Trends Expected to Accelerate in 2019 By Sally Problete

15 e-Insight

In This Issue

26 27 30

7 10 24 28 29

IIA of Illinois News Classifieds

INSIGHT

25 Young Agents

Regular Features Associate News

President’s Message Industry InVEST Industry News People in the News

Insight is the official publication of the Independent Insurance Agents of Illinois (IIA of Illinois). The magazine is published monthly for the members of the IIA of Illinois, with the office located at 4360 Wabash Avenue, Springfield, Illinois 62711-7009; Consumer Website: www.ChooseIndependent.com. The IIA of Illinois 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 dfrench@iiaofil.org.

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

info@iiaofil.org | www.iiaofil.org | (800) 628-6436 or (217) 793-6660 | Fax: (217) 793-6744 The Independent Insurance Agents of Illinois (IIA of IL) has been providing members with a sustainable competitive advantage since 1899.

ADVERTISERS

Board of Directors Executive Committee

ABRC

Chairman of the Board | Ryan Hite (309) 688-7316 | ryan.hite@eaglerockins.com

AMTRUST

President | Patrick Muldowney (312) 595-7192 | patrick.muldowney@alliant.com

APPLIED UNDERWRITERS

President-Elect | Bill Wirth (618) 939-6368 | billw@wirthagency.com

BERKSHIRE HATHAWAY GUARD INS. GROUP

Vice President | George Daly (708) 845-3311 | george.daly@thehortongroup.com

DONALD GADDIS CO., INC.

Secretary/Treasurer | Bennie Jones (312) 960-6206 | bjones@rmsoa.com IIABA National Director Gregory A. Sandrock, CIC, AFIS (815) 438-3923 | gregsandrock@2cornerstone.com

Regional Directors

ePAYPOLICY

GUIDE ONE

IMT INSURANCE

IPMG

Region 1 | Lisa Lukens (618) 942-2556 | salibainsurance@gmail.com

Region 2 | Joseph Heneghan (618) 639-2244 | joe.heneghan@hwcrins.com

SECURA

Region 3 | Jay Peterson, AFIS, LUTCF (217) 935-6605 | jay@peterson.insurance

WEST BEND MUTUAL

JM WILSON

IIA of Illinois Staff Education Director, CRM Manager Shannon Churchill - (217) 321-3004 - schurchill@iiaofil.org Vice President of Communications Deann French - (217) 321-3022 - dfrench@iiaofil.org Products & Services Administrator Melissa Hilgendorf, RPLU, CIC, CISR - (217) 321-3012 - mhilgendorf.indep12@insuremail.net Accounting & Admin Services, Tradeshow Admin Tami Hubbell - (217) 321-3016 - thubbell@iiaofil.org Director of Human Resources/Board Admin Jennifer Jacobs - (217) 321-3013 - jjacobs@iiaofil.org Sr. Vice President/Chief Financial Officer Mark Kuchar - (217) 321-3015 - mkuchar@iiaofil.org Chief Executive Officer Phil Lackman - (217) 321-3005 - plackman@iiaofil.org

Central/Southern Marketing Representative Lori Mahorney - (217) 415-7550 - lmahorney@iiaofil.org Vice President, Agents Insurance Services Brian McSherry, CIC - (217) 321-3018 - bmcsherry@iiaofil.org Office Administrator Kristi Osmond - (217) 321-3007 - kosmond@iiaofil.org Digital Communications/Web Administrator Rachel Romines - (217) 321-3024 - rromines@iiaofil.org Director of Membership Services Tom Ross, CRIS, CPIA - (217) 321-3003 - tross@iiaofil.org Communications Assistant Tyler Scott - (217) 321-3023 - tscott@iiaofil.org Products & Services Administrator Janet White, CISR - (217) 321-3010 - jwhite.indep12@insuremail.net Sr. Products & Services Administrator Carol Wilson, CPIA - (217) 321-3011 - cwilson.indep12@insuremail.net

Find us on Social Media

We know what it took to build this unique business.

And we know what it takes to protect it. Underwriters who know and understand what coverages are necessary for each unique business. Loss prevention professionals who use a hands-on approach to help develop programs tailored to each specialty business. Claim reps with the expertise and technology to process claims quickly and efficiently. As an Official Supplier of the Silver LiningÂŽ, you and West Bend will find a specialized insurance plan for your valued customers. To find out more, talk to your West Bend underwriter.

Celebrating 125 years of valued relationships with our agent partners.

PRESIDENT'S MESSAGE

Patrick Muldowney - IIA of Illinois President - (312) 595-7192 - patrick.muldowney@alliant.com

Happy New Year! As I think about closing the door on 2018 and looking ahead to the possibilities of 2019, I just wanted to let the membership know how honored and excited I am to have the opportunity to serve as IIA of IL president as the association enters its 120th year of service to the independent insurance agents of the state of Illinois. Before I talk a little bit about an exciting new member resources, I would like to tell you a little about myself and provide you with a few highlights of the IIA of IL’s accomplishments in 2018. I have worked in the insurance industry for over twentyfive years. While I maintain active producer and surplus lines licenses, the vast majority of my career has been spent serving the legal needs of the insurance company and independent insurance brokerages that I have worked for. I am currently assistant general counsel of Alliant Insurance Services in Chicago. While I bring a slightly different skill set to the position of association President, over the years I have developed a deep and profound respect for the men and women in our industry that work diligently every day to ensure that their clients’ insurance needs are well met. While I love my job and the work that I do, the most important thing in my life is my family. My wife and I met at the University of Illinois in Champaign and have been married for over twenty-six years. We are the proud parents of one son, who just completed his first semester as a freshman at Illinois studying business. The staff and the board of directors of the IIA of IL work tirelessly throughout the year to serve the professional needs of independent insurance agents and brokers in the state of Illinois. Below are just a few highlights of the association’s many accomplishments in 2018: Amicus Brief – American Family v Krop - In a major victory for independent insurance agents and insurance producers statewide, the Illinois Supreme Court upheld and in fact strengthened two statutes passed by IIA of IL in 1997. In a 5-2 decision in the case of American Family v Krop, the justices upheld the original legislative intent of the law, that the twoyear statute of limitations period begins to run on the date an insured receives their policy. Development of an Agents Advisory Board - SB 2513, an IIA of IL initiative which creates an Education Advisory Council within the Department of Insurance, was signed by Governor Rauner in August 2018. The purpose of the Council is to create a more consistent method of communication between the Department

january 2019

of Insurance and Producer /Company education professionals and make recommendations for regulations regarding course materials, curriculum and credentials of instructors. Development of the Farm Agents Council membership approved a resolution that allowed the association to create the Farm Agents Council, bringing that organization into the IIA of IL. Successful Statewide Conferences - EDGE, CONVO 2018 Young Agents Statewide Day of Giving IIA of IL Roadshow - held in nine locations around the state One of the never-ending discussions within the IIA of IL is how it can provide meaningful services to its members. As a lawyer who has worked in the brokerage industry for nearly two decades, I am acutely aware of the legal needs of independent agents and brokers. We are frequently faced with legal questions, large and small, and oftentimes we do not know exactly where to turn to for answers. As of the first of this year the IIA of IL is providing its members with access to a Legal Services Hotline where they can ask experienced attorneys legal questions related to business of insurance or the operations of their agencies. Each member agency will be entitled to up to thirty minutes of legal advice annually from the law firm of Hepler Broom LLC, which maintains a number of offices throughout the state of Illinois. While every legal question cannot be resolved in thirty minutes, it should be sufficient time for members to get answers to the vast majority of their business-related legal issues. I hope that all members take advantage of this extremely valuable benefit that is provided at no additional cost. (See related article on page 16.) Here’s to the year ahead. Should you have any questions or comments please feel free to contact me or the association staff. The staff directory of the IIA of IL is located on the association’s website at www.iiaofil.org/About-Us. If you ever want to drop me a line please do not hesitate to send me an email at patrick.muldowney@alliant.com. I look forward to communicating with as many of you as possible during the upcoming year. Thank you.

insight

Free to do what's right for you.SM

Trusted Choice Free Resources - What Are They? Trusted Choice offers IIA of IL members a huge selection of free resources to choose from which will assist agents with their branding efforts, content to share and tools to optimize the overall customer experience. Get an overview of whatâ&#x20AC;&#x2122;s available in this new video.

www.iiaofil.org/About-Us/Trusted-Choice

january 2019

insight

INDUSTRY

Insurance Industry Charitable Foundation to Host Benefit Dinners Honoring Insurance Industry Philanthropists Events raised more than $1.6 million in 2018 for nonprofits The Insurance Industry Charitable Foundation (IICF) announced it will again host its annual benefit dinners in three division headquarter cities in the first quarter of 2019, in Dallas on February 28, Chicago on March 7 and Los Angeles on March 21. More than 1,300 insurance professionals attended these sold-out celebrations of the industry’s commitment to philanthropy and community last year, and similar attendance is expected in 2019. This year several hundred thousand dollars in grant awards to more than 80 nonprofit organizations will be announced at the IICF Southeast, Midwest and Western Division benefit dinners. Along with presenting grant awards, IICF honors an individual or organization within the insurance community each year for outstanding dedication to philanthropy and service in the community. The 2019 slate of honorees includes the following insurance industry and philanthropic leaders: • Richard Gergasko, President & CEO, Texas Mutual Insurance Company honored with the 2019 Philanthropic Leadership Award in the IICF Southeast Division, based in Dallas • Dame Inga Beale, Former CEO, Lloyd’s of London honored as the 2019 Trailblazer of the Year in the IICF Midwest Division, based in Chicago • Timothy J. Noonan, President & CEO, Lockton Insurance Brokers LLC honored with the 2019 Golden Horizon Award in the IICF Western Division, based in Los Angeles

Blazing the Trail Benefit, Midwest Division: March 7 at the Four Seasons Chicago • Guest speakers: Kerry & Sarah Wood, former Chicago Cubs player and his wife and founders of the Wood Family Foundation’s Pitch In Program • Contact: Kelly Hartweg at khartweg@iicf.com Horizon Award Gala, Western Division: March 21 at South Park Center Penthouse, Los Angeles • Guest speakers: To be announced soon. • Contact: Melissa-Anne Duncan at maduncan@iicf.com Proceeds from the 2019 benefit dinners will fund the IICF Community Grants Program in the Southeast, Midwest and Western Divisions, which award grants to regional charities that champion causes related to disaster relief, education, children at risk, veterans; health, education, safety; and education, child abuse prevention, disaster preparedness and health and human services, respectively. 2018 marked the twenty-fifth anniversary year of the Insurance Industry Charitable Foundation, having served as the philanthropic foundation and voice of the insurance industry since 1994. IICF has awarded more than $31 million in grants throughout communities in its five divisions and has engaged more than 110,000 insurance professionals in volunteer service.

Events will also feature appearances and keynote addresses from notable celebrities and senior industry executives. Please find details for each division below, along with contact information for tickets and sponsorships. Southeast Benefit Dinner: Feb 28 at Field of the Ford Center at the Star: Dallas Cowboys Headquarters • Guest speakers: Roger Staubach, Randy White and Drew Pearson, former Dallas Cowboys and now philanthropic business leaders • Contact: Sarah Conway at sconway@iicf.com

insight

january 2019

2018 Oregon Workers’ Compensation Premium Rate Ranking Summary The Oregon Department of Consumer and Business Services released its bi-annual analysis of workers’ compensation premiums across the country and it contained good news for Illinois.

Illinois now ranks in the middle of the pack compared to other states – which was the goal of lawmakers when bipartisan majorities approved the last workers’ compensation overhaul back in 2011.

For several years Illinois posted high ranking in the Oregon Premium Rate Survey - which ranks states based on how much employers pay for workers’ comp insurance. This report has been used by the business community and lawmakers as evidence that Illinois needs to enact further reforms in the workers’ compensation system.

This substantial drop in the rankings for Illinois further illustrates that the changes made to the laws in 2011 are producing lower costs for insurers and employers. Access the complete report at https://www.oregon.gov/ dcbs/reports/Documents/general/prem-sum/18-2082.pdf

However, according to the recently released 2018 Oregon Premium Rate Ranking Summary, Illinois has now moved from 8th highest in 2016 to 22nd highest in 2018, which is one of the largest drops in the country.

january 2019

insight

Getting Ready for

2019

Crack the

PROSPECT CODE and WIN MORE SALES By John Graham Why do so many meetings with prospects fizzle out and go nowhere? Is it just the way it is, so we should just accept it? Or, is it possible that our “this is what went wrong” explanations are merely excuses for failing to turn prospects into customers? As sure as Friday is pizza night, salespeople are drawn to prospects like kids to puddles of water. No argument. But what about the other way around? How much thought do salespeople give as to whether or not prospects are drawn to them? Is it possible that the drive to make the sale blinds them to the possibility that prospects may reject them? The key to getting prospects to buy what you’re selling starts with getting them to buy you. It requires cracking the prospect code and here’s how to go about it:

insight

Abandon the Urge to Impress Sure, you want prospects to like you, but efforts to impress them can make the wrong impression. It sends the message you are overly impressed with yourself. In other words, you come across as being less interested in understanding their situation and more interested in selling yourself. All this occurs when salespeople use confusing terminology, dominate the conversation, speak too fast, and make prospects feel inadequate. It’s the perfect prescription for rejection. Set the Stage for Success Productive sales calls don’t just happen. They are carefully choregraphed to give the salesperson an edge in getting the order. The first step is disarming the customer, neutralizing a prospect’s natural reaction to become defensive, to clamup, or even to get away. january 2019

Stay with Them No one wants to feel ignored, abandoned, or rejected. Yet, this happens when a salesperson makes an “exit” after deciding a prospect isn’t going to buy. When this occurs, prospects react negatively and get even by badmouthing the salesperson and the company. Even so, it’s easy to avoid. Let them know you appreciate the opportunity to help them, but you also recognize it doesn’t always work out. Do it correctly and there’s a good chance should they leave they will be back or refer others. Second Guess Yourself It’s tough to recover when you’re put on the defensive while making a sales presentation. Even if you’re fast on your feet, it’s difficult to think clearly, let alone to organize an effective response. The way to avoid getting caught with the unexpected is to second guess yourself. Lay out possible objections and anticipate possible responses and disagreements that could undermine your proposal. Show their deficiencies and why your position is the best solution. Focus on Why, Not What Salespeople like to talk about what customers get when making a purchase - long lasting, the latest, solid, fashionable, popular, convenient, and so on. But that’s changing. Today, it’s the why that motivates customers. Here’s are examples of how to make why work for you: • A solar energy company says its installations do more than lower energy costs. They help reduce the carbon footprint. • A janitorial services company builds its case for clean facilities: reduces lost time due to illness, increases employee satisfaction, and helps improve productivity. • British engineer James Dyson, who invented the Dual Cyclone bagless vacuum cleaner, sells a cordless version. In a TV ad, Dyson explains why: “It’s right to do something better.”

The task is to figure out and focus on what customers want, what they are looking for, and what satisfies them. Why is this important? They are trying to decide if the salesperson cares or just wants to make a sale. Issue a Challenge It may sound odd or strange, but this is what it takes for prospects to clarify their thinking and commitment to making a prudent purchasing decision - and avoid experiencing buyer’s regret. It’s time to ask what some may consider a risky question. “Are you sure this is what you want to do?” is a necessary question, one that helps prospects clarify their thinking. If the answer is “no” or “I’m not sure,” then it’s time to stop and probe until the concerns and doubts are explored and resolved to the prospect’s satisfaction. This is how trust develops and what it means to be a sales consultant. january 2019

Ask the Right Questions Salespeople don’t set out to alienate prospects. Yet, it’s easy to “trip” during the “sales dance.” To avoid making a misstep that can turn prospects off, it helps to have them talk about what customer satisfaction means to them and what they expect from a salesperson. Besides providing helpful information, it lets prospects know you want them to become satisfied customers. It can also help to ask what’s bothersome about salespeople. Urge them to be candid. The more a salesperson knows, the better. Don’t Leave Feedback to Chance “We need your feedback” or the various versions of these over worked words are tacked on countless marketing messages. Some call it the electronic “complaint box.” But feedback is too valuable to be left to chance. continued...

insight

Nothing is more important than making sure you and your prospects are on the same page, that there’s no misunderstanding. This is why it’s helpful to think of presentations as an opportunity to ask prospects, “Is something not clear? Am I missing something that’s important to you?” Rise to the Occasion It’s inevitable to get bored with what we do every day, including those who say they love their work. Even salespeople, who take pride in being “always up” get bored. But that’s the challenge. The test is our ability to push aside the “dark stuff” and meet the expectations of others.

If there’s one quality prospects (and customers) look for in a salesperson, it’s vigor - an alive feeling. It’s catching, and it moves prospects to action. It should be as much a part of a successful sales presentation as the words said. What it takes to turn more prospects into customers is cracking the prospect code. Get them to buy you before trying to get them to buy what you’re selling. 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.

WHEN THE DOOR DINGS, WE ANSWER. AUTO INSURANCE THAT’S DESIGNED TO BE WORRY FREE Wheels are the way around life. Protect vehicles with auto insurance from the Worry Free Company — IMT Insurance.

“The key to getting prospects to buy what you’re selling starts with getting them to buy you. It requires cracking the prospect code.”

Learn how you can represent IMT Insurance at imtins.com/contact and help your policyholders Be Worry Free with IMT.

AUTO | HOME | BUSINESS

insight

january 2019

e INSIGHT -

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

JA N U AR Y 20

INSIGH T 2019 B

L U FO EPRIN R SUCC

EMERGIN CR PR ASCPKETCHE andOW in MToCreODS E ales

G TREND

ESS

- Ins ec S h - HumurT an Resou rces

Top Risks for Today’s Non-Proﬁts

Employment Practices Liability Coverage In The Age Of “Me Too” White Paper

In this month’s e-Insight. january 2019

insight

2019

BLUEPRINT FOR SUCCESS

By Deann French Did you make (and already break) any New Year’s Resolutions? At the IIA of IL our resolutions are, in fact, resolute. We always strive to provide our members with a sustainable competitive advantage. To that end, we offer our 2019 Blueprint for Success featuring new IIA of IL services and events and outlining the trends to watch in this year in both InsurTech and staffing.

insight

Back in the nineties American Express had a robust ad campaign built around the idea that “membership has its privileges.” The take-away was that there was status that came with having an American Express Card and that status afforded the cardholder certain privileges. By the 2000’s consumers were no longer seeking “privilege” so to speak but were looking for “value add” from their business affiliates and memberships. january 2019

Now in 2019 can we just use some straight talk and address what we are all really seeking …member benefits? The IIA of IL works hard every day to provide our members with products and services that will benefit them in a real way. Many of the advantages to being an IIA of IL member are intangible yet vital, i.e. advocacy, a unified voice on issues facing the independent channel, desire to perpetuate the industry, etc. But other advantages are more evident, E & O coverage, access to markets, networking events, designation programs and more. In an effort to further broaden and continually improve our list of tangible member benefits, the IIA of IL is happy to announce the launch of two new programs this year. 1. Legal Services Hotline - The IIA of IL routinely receives member inquiries seeking advice that requires the assistance of legal counsel. In many instances, the questions can be quickly answered by experienced legal counsel. We believe that extending legal services on a limited basis and at no cost to our member agencies is a valuable addition to the extensive services we currently offer so we have contracted with HeplerBroom LLC, to assist our members with legal questions. HeplerBroom LLC is a dynamic team of trial and business lawyers, with a formidable reputation across the entirety of Illinois. They offer a full complement of attorneys with extensive experience trying a broad variety of cases across many industries. With offices located in Chicago, Crystal Lake, Edwardsville, and Springfield, HeplerBroom LLC exemplifies a firm with statewide presence and stellar reputation. The Legal Services Hotline is available to all current Association member agencies at no charge at the rate of 30 minutes per (Association) year. The Legal Services Hotline is restricted exclusively to insurance or agency operations questions. The service is not available for personal legal questions. Some of the topics on which members could make use of this service are: • Insurance Law and Regulations; • Employment Practices, Labor and Discrimination • Contracts • Negligence • Errors and Omissions • Business Law, Planning and Accounting For additional information or to access this new service go to www.iiaofil.org/Products-Services. 2. IIA of IL Pre-Licensing Seminars Furthering their mission to provide members with the best education possible, the IIA of Illinois Education Committee has made the decision to develop a Pre-licensing Seminar Series. If you are looking to develop the top new producers in the industry, it makes sense to turn to the experts. “We offer the best insurance education in the state,” said IIA of IL Education Chairperson, Lindsey Polzin. “We believe it’s imperative to our goal of serving the independent agency system that we start each of your employees out on the right foot.”

staff in passing the pre-licensing exam on the first attempt. This will be followed by the launch of the Life & Health Pre-licensing seminar this summer. • IIA of IL members receive discounted pricing on seminars • Comprehensive program presented in a clear-cut fashion • Presented by the industries top instructors Look for more information to come soon. These programs, coupled with the some of our ongoing initiatives, as well as new events, are part of the 2019 Blueprint for Success. We will also be expanding our Trusted Choice Digital Ad campaign this year. The inaugural campaign, free to IIA of IL members, launched in April and posted incredible numbers for our email and mobile campaigns as well as retargeting efforts for both - three to six times higher than the national average in engagement, clicks and opens. See complete results at www.iiaofil.org/About-Us/TrustedChoice. The second phase of the campaign will very similar to the first but will include more direct links to the participating agencies websites and fewer to TrustedChoice.com. Complete information about the second phase will be released in an upcoming issue of Insight as well as e-Weekly. Participation is limited to 200 agencies. The Young Agents are adding a second conference to the calendar this year. The Young Agent’s Family Summer Camp will be held in July in Lake Geneva. This two-day event is designed for families and will include the same great education sessions attendees have come to expect from Young Agent hosted conferences. The agent’s family will be invited to attend all social functions, which will give spouses and children exposure to and appreciation for the industry. Additionally, agents can see the economic value in turning a business trip into a family vacation. “The connections I made as a kid attending conferences and events with my mother have stuck with me throughout my career” said Allyson Padilla, Young Agent Chair. “Some of my best friends are in the industry. It was great to attend the insurance events when I was a kid because it peaked my interest in the industry. My hope with this Family Summer Camp is to inspire more children to follow in their parent’s career path.” This is just a taste of what is coming in 2019. Be sure to read the accompanying articles on emerging trends for 2019, 2019 Trends - What to Expect in the Year Ahead and Three InsurTech Trends Expected to Accelerate in 2019 found on pages 20 and 22, respectively. PLUS Check out the calendar of events already scheduled for this year on page 19. Here’s to a successful 2019! Deann French is Vice President of Communciations for the IIA of IL. She can be reached at (217) 321-3022 or dfrench@iiaofil.org.

Starting in Spring with the Property & Casualty licensing series, the program will feature two days of classroom training, self-study sections, and materials to assist your january 2019

insight

Coverages You Need . . . from a Name You Can Trust! Protecting Your Clients’ Many Interests . . .

Berkshire Hathaway

GUARD

Insurance Companies

Nationwide operations • A+ A.M. Best Rating We have agency appointments available. Go to www.guard.com/apply! Workers’ Compensation • Businessowner’s Policy (Property and Liability) • Commercial Auto* • Commercial Umbrella/Excess • Professional Liability* • Homeowners and Personal Umbrella* • Disability* • and More (*Select States)

insight

january 2019

IIA of IL Calendar of Events January 18 – DuPage County Legislative Breakfast – Arrowhead Golf Club, Wheaton January 18 – Lake County Legislative Lunch – Chevy Chase Country Club, Wheeling January 25 – Metro East Legislative Luncheon – Bella Milano, O’Fallon January 31-February 1 – Farm Agents Council Winter Board Meeting – Crowne Plaza, Springfield February 7 – Chicagoland IIA Chicago Blackhawks Watch Party – Park Tavern, Chicago February 8 – IIA of IL Region 6 Event at Rockford IceHogs Hockey – Rockford February 27 – Captive to Independent Meeting – JC Restoration, Rolling Meadows March 19 – Insurance Industry Legislative Day – Wyndham City Centre, Springfield March 20 – IIA of IL Board Meeting – Wyndham City Centre, Springfield April 3-4 – EDGE Conference – Par-A-Dice Hotel, Peoria May 7-10 – Big “I” National Legislative Conference – The Renaissance Downtown, Washington, DC May 22-23 – IIA of IL Board Meeting – Chicago June 6-7 – Farm Agents Council Meeting & Golf Outing – Doubletree Hotel, Bloomington June 20 – Chicagoland Party in the Park – Five Irish Roses, Rosemont July – Young Agents Family Summer Camp (Details TBA) – Lake Geneva, WI August 21-22 – IIA of IL Board Meeting – Springfield September 11-14 – Big “I” Fall Leadership Conference – The Westin, Savannah, GA October 1-3 – IIA of IL CONVO – Crowne Plaza Hotel, Springfield

january 2019

insight

2019 Trends

What to Expect in the Year Ahead

By Heather Ishikawa

Hiring & Recruiting, HR 2019 is quickly approaching, and with it comes the predictions of what organizations can expect for the following year. So what will 2019 have in store? There will be a shift in the economies, a number of generational changes, an overwhelming increase in HR tech vendors to compete with, and additional work with artificial intelligence (AI).

insight

Here, we’ll cover our top three predictions for the 2019 workforce, and in a follow-up article, we’ll cover four more trends to expect in 2019. Rise of HR The long-anticipated rise of HR is coming, and we think we know why. After decades of employers’ being the primary determinant of who receives a position and who doesn’t, companies are faced with a talent shortage and increasingly frustrating retention issues.

january 2019

Rather than being a cost center, HR is now a driver of people strategy. HR will finally have a strategic seat at the executive table and be able to provide a better view on how to increase the performance of the workforce. Why? The advancement of technology, workforce analytics, and business intelligence reporting will provide a holistic view of what truly drives an organization and enable HR to fine-tune the organization to meet business objectives. Aligning talent with strategy has long been a catchphrase for many vendors, but HR practitioners are starting to see they truly have a direct impact on talent development and the opportunity to use data to better the organization. From Discovery to Audit in AI While AI has been on everyone’s lips in 2018, in 2019, we predict we’ll move past just conversations and chatbots and into true AI and machine learning (ML). Implementation and the audit of the tools already in use at many companies will be the main drivers for this shift (as well as the natural increasing sophistication of technology in its second, third, and fourth iterations, which is where AI and ML are currently in the HR tech landscape).

Gender Shift in Sales and Leadership Only 39% of sales professionals are women. Talent shortages will require a shift to include more women in sales roles. There are a myriad of reasons for this shift. • Both B2B and B2C buyers have gotten progressively younger, and a female salesperson no longer has any connotation, negative or otherwise. • With the prevalence of inbound marketing, the line between sales and marketing has been blurred, and sales no longer requires the aggressive stance long associated with it and with male salespeople, opening up sales positions that both appeal to more female candidates and play to strengths that weren’t previously valued in a sales role. • Women are now the primary holders of university degrees, which makes them eligible for many roles and an untapped talent pool. Organizations will target recruitment to include a diverse population of candidates who are hired based on potential rather than experience. This will require a focus on quickly onboarding sales professionals, providing targeted sales training and inclusive training programs that appeal to men and women. This will impact the traditional, male-dominated sales training currently offered in the marketplace and further refine the role of consultative sales professionals. Business intelligence reporting will enable HR professionals to assess and develop skills of sales professionals. But women won’t just be moving into sales positions. Legislation and advocacy groups are pushing for more equal representation of women in leadership roles. The inclusion of women will continue to be a hot topic in 2019. California is leading the charge by requiring 40% of board members to be women by the end of 2021 and one woman to be on every board by close of 2019. As the SVP of Marketing and Commercialization for Caliper, Heather Ishikawa leverages her strong background in marketing, sales, product development, and human capital management to deploy products and services that address talent management issues.

Before 2018, the industry experienced application development and implementation of ML and AI. In 2019, we will see additional work within auditing, regulation, and general use case guidance. The next era will be focused on questions about how to best implement, monitor/audit, and regulate the use of AI/ML. For example, many talent acquisition teams began implementing AI in the form of automation and chatbots, but Amazon famously shut down its proprietary AI when it discovered it was exhibiting biased behavior. This was a canary in the coal mine for other HR practitioners testing AI within their talent acquisition and management functions to keep a closer eye on their new tools as use cases are still being written.

january 2019

insight

2019 promises to be an even more meaningful and game-changing time for the InsurTech space

Three InsurTech Trends Expected to Accelerate in 2019

By Sally Poblete

2018 was a breakout year for InsurTech companies, as the insurance industry has been long overdue for innovation and disruption, the year attracting both talent and funding to the industry. FT Partners Research announced InsurTech’s quarterly financing volume for Q3 2018 totaled $1.2 Billion, which is up from $749 Million in Q2 2018. The excitement increasingly surrounding InsurTech indicates that 2019 promises to be an even more meaningful and game-changing time for the InsurTech space. Here are three InsurTech trends you should keep an eye out for in 2019 and beyond. Sophisticated Analytics Any successful InsurTech startup is not only passionate about transforming the current insurance model to be more cost-effective and automated but is invested in exploring the role data analytics plays at the core of this process. Intelligent and productive data aggregation, integration and analysis, are crucial in achieving this. When it comes to data analytics, the insurance industry’s antiquated business model has much room for improvement. InsurTech is modernizing insurance as we know it by implementing advanced big data analytics to optimize insurance products and services. And investors are taking notice; Significant investments are being made in data analytics and modeling techniques to improve nearly every part of the business. By embracing data analytics, your business can gain a competitive advantage by finding “new revenue opportunities, enhancing customer service, delivering more effective marketing, and improving operational efficiency.” Over time, this rise in digital innovation is sure to bring significant opportunities for a more efficient, competitive and sustainable progress for InsurTech as a whole. Transparency The vast and complex insurance industry has long awaited simplification. Insurers’ underwriting models have historically been a black box for consumers. Easy comparisons of complex data have been reserved for the experts. Transparency is critical to earning the trust of customers, especially in this digital age. People are now accustomed to online shopping, and they want procuring insurance plans to be less complicated - similar to shopping for and purchasing other high ticket items such as homes and financial products. Consumers desire their pricing and product information not only be transparent but comparable as “apples to apples” so they can make smarter choices. Users can access online marketplaces to compare prices and benefits of different plans side-by-side. january 2019

Partnerships Between Carriers and Innovators There is a deepening need for laser-focused investments and partnerships between carriers and innovators as InsurTech has now matured into an everyday business. Insurance executive and InsurTech dealmaker, Stephen Goldstein argues that “the team is what is ultimately going to make an Insurtech initiative a success,” meaning that incumbents and insurance leaders executing partnerships with insurtech companies are part of the recipe that is going to provide a positive ROI and make InsurTech as an industry thrive. While 2018 was a year of exploring and experimentation for InsurTech, 2019 will be the year of engaging and deepening those relationships. At the start of 2018, insurance professionals predicted that the number of partnerships and collaborations between carriers and innovators would only gather momentum over the next year. And in June 2018, The Digital Insurer reported that partnerships remained a priority where InsurTech was concerned. InsurTech companies are actively enabling new technologies which are utilized to provide increased efficiency and the ability to execute new tasks and analyses. These technologies are changing the industry on a fundamental level, all the while causing more incumbents to adopt these capabilities through investments or partnerships to compete effectively. The possibilities alone suggest that there will be expected growth in partnerships throughout the end of 2018 and well into 2019. Conclusion 2018 proved to be a massive year for InsurTech, with a dramatic increase in funding from Q2 2018 to Q3 2018. There has been demand for skillfully acquired and implemented analytics, transparent experiences for consumers and mutually beneficial partnerships. All three trends are being successfully observed in 2018, and are believed to gather more momentum to lead us into 2019 and later. Sally Poblete is Founder and CEO of Wellthie. She spends most of her time listening to customers, envisioning new ideas, and building the best team. Poblete envisions a future world where purchasing insurance is a satisfying and confident experience. She can be found at www.wellthie. com.

insight

Inaugural InVEST Camp Hosted by HDI In August, HDI, an international insurance company, hosted their first ever InVEST Insurance Camp. The InVEST program, developed by the IIABA was designed to improve insurance literacy in students and attract new talent to the industry. The insurance industry is currently challenged by the recruitment of young talent. It is expected that there will be 400,000 open positions in the industry by 2020. InVEST was designed to counter this problem. HDI, through the summer camp, brought together high school and college students this four-day camp. Each morning attendees were educated on all aspects of insurance. In the afternoon, the students learned about job shadowing, how to correctly write resumes, definition of different levels of business attire, what to wear for an interview, interview tips and pointers, and most importantly information regarding the variety of career opportunities in the insurance industry. Students

received presentations from HDI professionals and vendors who work in the insurance industry, including those who handle loss control, underwriting, accounting, compliance, underwriting technician, management, insurance recruiter. In addition, insurance brokers joined and spoke passionately about their daily roles. The program ended with the students graduating from the Camp. Plans are underway for the 2019 Summer Camp. For additional information about participation in HDIâ&#x20AC;&#x2122;s InVEST Summer Camp 2019, please contact Joi Jackson at 312589-6722, or at by email at joi.jackson@us.hdi.global.

Â Â? Â? Â?Â? Â

â&#x20AC;Ś Â Â? Â? Â?

insight

january 2019

2019

conference

April 3-4

Par-A-Dice Hotel East Peoria Education Sessions will be released soon. Back by popular demand: Familiar Feud Register in January to receive the best price!

ILYoungAgents.com

Upcoming Regional Events Chicago Blackhawks Watch Party

Rockford IceHogs Event

Thursday, February 7 5:00 pm

Friday, February 8 5:00 pm

Park Tavern Chicago

Blue Line Sports Pub Rockford

31 lucky fans will be randomly drawn during the Watch Party to attend the game!

Registration includes appetizers & drinks prior to the game.

www.iiaofil.org/events january 2019

insight

ASSOCIATE NEWS

Thank you to our Associate Members.

Diamond Level Members

Platinum Level Progressive Nat Gen Premier

Gold Level AAA Insurance Agent/Broker Review Company Arlington/Roe Blue Cross/Blue Shield of IL

Silver Level Grinnell Mutual Reinsurance Company Imperial PFS Nationwide

Surplus Line Association of Illinois The IMT Group West Bend Mutual Insurance Co.

Bronze Level A.J. Wayne & Associates AMERISAFE Aon Programs Atlantic Specialty Lines Auto-Owners Insurance Co. Berkshire Hathaway Guard Insurance Companies Burns & Wilcox, Ltd. Chicagoland Carstar Columbia Insurance Group Continental Western Group Donald Gaddis Company, Inc. Donegal Insurance Group Echelon Property & Casualty Insurance Co. Encompass Insurance Erie Insurance Group Foremost Insurance Group Forreston Mutual Insurance Company Frankenmuth Insurance Grange Insurance Illinois Mine Subsidence Insurance Fund Illinois Public Risk Fund Indiana Farmers Insurance Interstate Risk Placement IPMG J. C. Restoration J M Wilson 26

insight

Kemper Keystone Insurers Group, Inc. KPA, LLC dba Succeed/KPA Liberty Mutual Madison Mutual Insurance Company MarshBerry Maximum Ind. Brokerage, LLC Mercury Insurance Company of IL MetLife Auto & Home Midwest Insurance Company Motorists Insurance Group NHRMA Mutual Workersâ&#x20AC;&#x2122; Compensation ProAg Management Inc. PuroClean Rockford Mutual Insurance Co. Safeco Insurance ServiceMaster DSI Society Insurance Specialty Risk of America Transcom General Agency Travelers United Fire Group Utica National Insurance Group W.A. Schickedanz Agency, Inc. Western National Insurance Westfield Insurance Company january 2019

IIA OF ILLINOIS NEWS Education Classes january

10 10 17 22 23 24 31

E&O: Roadmap to Policy Analysis Webinar On Ethics: Data, Dilemmas & Knuckleheads Webinar Ethical Dilemmas.. Making the Right Choices Webinar E&O Risk Management Webinar CIC-Agency Management Rolling Meadows E&O Risk Management Webinar Farm Agents Council Mid-Winter Meeting Springfield

february

5 19 20 26 26 26 27 28

E&O: Roadmap to Policy Analysis Webinar Ethics-Walking a Straight Line Webinar

New Members member agency Latz Insurance Agency, LLC Hinsdale, IL Mapes Insurance Agency, Inc. Atkinson, IL McEvers Insurance Sercvices White Hall, IL Power Risk Management Services, LLC Glenview, IL Sage Insurance Agency Mattoon, IL Windish Insurance Agency, LLC Brimfield, IL For information regarding IIA of Illinois membership or company sponsorship, contact Tom Ross, Director of Membership Services, at (217) 321-3003, tross@iiaofil.org.

CIC-Commercial Casualty Rolling Meadows CISR-Commercial Casualty 1 Rolling Meadows On Ethics: Data, Dilemmas & Knuckleheads Webinar E&O Risk Management Webinar CISR-Personal Auto Springfield E&O Risk Management Webinar

january 2019

insight

industry news

GO Bop Launches Positive Change for Small Businesses, Agents Writing GuideOne Insurance GuideOne Insurance launched an online quoting portal speeding agent business in a growing insurance segment. GO BOP, GuideOne’s Business Owners Policy portal, delivers instant quotes and binds business in eight small business categories in as little as 10 minutes. GuideOne now writes business owners policies for churches, contractors, distributors, offices, real estate, restaurants, retail and service businesses. Optional coverage for cyber is available and includes cyber exposures like identity recovery, data breach, computer attacks and extortion in one form. Agents will know a client’s eligibility within fewer than 15

questions on two screens thanks to GO BOP’s third-party integrations that pre-fill data and support underwriting decision-making. GO BOP launched in Illinois, Indiana, Michigan, Minnesota, Ohio and West Virginia, expanding nationally in 2019 to diversify GuideOne’s portfolio and increase market share. The 70+-year-old insurer was founded with a commitment to social responsibility and says the focus on Main Street businesses is the next step in transforming the GuideOne brand.

IBHS Introduces OFB-EZ Spanish Edition to Help Hispanic-Owned Businesses Prepare for Disasters Many small businesses are unprepared to respond to a weather disaster like a blizzard, or other business disruptions such as a structure fire or long-term power outage. Statistics show one in four businesses that close due to a disaster will never reopen. Developing a business continuity plan should be a high priority for all small businesses across Illinois so they can survive and quickly recover from costly interr

PROFESSIONAL LIABILITY BROKERAGE PROPERTY & CASUALTY GARAGE LIABILITY TRANSPORTATION SURETY PERSONAL LINES

(800) 666-5692 | JMWILSON.COM 28

insight

january 2019

Léonard Named VP & Senior Economist at the Insurance Information Institute

Amy Goughnour, mutual manager for Steele Traill County Mutual Insurance Co. in Finley, N.D., has been elected to serve on Grinnell Mutual’s board of directors. She was elected to a director position on Dec. 12.

Michel Léonard, CBE, has been appointed Vice President & Senior Economist at the Insurance Information Institute (I.I.I.), with a portfolio which will include responsibilities for research, communications, and education outreach.

Goughnour has managed Steele Traill County Mutual, which writes business in 27 counties in eastern North Dakota, for 16 years. She is on the National Association of Mutual Insurance Companies board of directors and is active in the North Dakota Association of Farm Mutual Insurance Companies.

Dr. Léonard is an economist and data scientist who has worked for 20 years in senior-level insurance and finance positions. He has hands-on experience across the insurance value-chain, from generating risk analytics to communicating risk outlooks. A thought leader in applied risk quantification, a subject on which he has been published widely, Dr. Léonard also is a frequent media commentator and speaker at insurance industry events.

Goughnour will fill the unexpired term of Stephen J. Smith of Western Cherokee Mutual in Marcus, Iowa, who has served on the Grinnell Mutual board for more than 26 years and is retiring effective Dec. 20. Her term begins Dec. 21 and goes through June 2019.

Prior to joining the I.I.I., he was Partner & Chief Data Scientist at MaKro LLC, a Fintech risk advisor. Earlier in his career, Dr. Léonard was the Senior Vice President & Chief Economist at Aon and the Chief Economist & Data Scientist at Alliant, the insurance broker owned by Blackstone and Kohlberg, Kravis Roberts (KKR). Dr. Léonard holds a B.A. from McGill University, an MTS from Harvard University, and an M.A. and Ph.D. in Political Economy from the University of Virginia, focusing on qualitative and quantitative risk modeling. His certification stands for Chartered Business Economist (CBE). In addition, Dr. Léonard is an adjunct faculty member in New York University’s (NYU) Economics Department and at Columbia University’s Department of Statistics and Data Science Institute, where he focuses on Applied Economics, Fintech, and Insurtech. Based in the I.I.I.’s New York City office, Dr. Léonard will report into Dr. Steven Weisbart, the I.I.I.’s Senior Vice President & Chief Economist.

WE WANT TO HELP YOU GROW YOUR BUSINESS. Thanks to our cutting-edge GO BOP portal, you will find more auto-fill fields with fewer questions because you’ll answer only those that are relevant to the business you’re writing. You will know within two screens if your customer is eligible for a policy.

Check it out for yourself. Become a GuideOne agent at GuideOne.com/BOP-agent

january 2019

insight

people in the news

Grinnell Mutual Board Elects New Director

CLASSIFIEDS

for the insurance professional by the insurance professional

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

Dan Browne or Cathy Hall Forest Agency (708) 383-9000 dbrowne@forestagency.com

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:

SHARED SPACE FOR RENT

99. 6400 SF office located at 127 N. Walnut St., Itasca, has availability for startups, insurance agents, salespeople, consultants, professionals, etc.; who are in need of class A space without the cost. Monthly fees range from $375 and include: Receptionist/Clerical, internet, conference rooms, kitchen, classroom/break room. Printing and clerical services are also available. Short term or long-term rentals are available. Wed are in downtown Itasca across from the Metra station. Close to expressways. For information contact:

Dino Gavanes 630-779-0566 or dino_gavanes@advisersinc.com

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.

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

insight

january 2019

In Illinois, it’s AmTrust for Workers’ Comp…

and much more.

FSC “XV,” Stable Outlook

Get to Know AmTrust. Visit www. amtrustfinancial.com/ilq1 or call 844.864.8824 AmTrust is AmTrust Financial Services, Inc., located at 59 Maiden Lane, New York, NY 10038. Coverages are provided by its property and casualty insurance company affiliates. Consult the applicable policy for specific terms, conditions, limits and exclusions to coverage.

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/us. Follow us at bigdoghq.com.