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INSIGHT

Brent Kelly

Diane T. Keil-Hipp

Board of Directors

Executive Committee

Chairman of the Board - Allyson Padilla allyson@blanksinsurance.com

President - Patrick Taphorn, CIC, CSRM ptaphorn@unland.com

President-Elect - Thomas Evans, Jr. tom.evans@assuredpartners.com

Vice President - Chris Leming cleming@troxellins.com

Secretary/Treasurer - Cindy Jackman, CIC, CISR cjackman@arlingtonroe.com

IIABA National Director - George Daly george.daly@thehortongroup.com

Directors

Mohammed Ali - mali@aliminsurance.com

Charles Hruska, IV - chas@hruskains.com

David Jenk, Esq. - djenk@nwibrokers.com

Rebecca Kohn - rkohn@worthyinsurance.com

Lindsey Polzin - lpolzin@presidiogrp.com

Ray Roentz - ray.roentz@hwcrins.com

Noele Tatlock - ntatlock@unland.com

Luis Tayahua - lt@goldenowlinsurance.com

Sharon Waldvogel - sharon@infinitybrokersinc.com

Andrea Wallace - andrea@aadins.com

At-Large Directors

Amiri Curry - acurry@assuranceagency.com

Kevin Lesch - klesch09@gmail.com

Jeff McMillan - jeff@mcmillanins.com

James Sager - james@sagerins.com

Luke Sandrock, CIC - lsandrock@2cornerstone.com

Committee Chairs

Budget & Finance | Cindy Jackman, CIC, CISR cjackman@arlingtonroe.com

Education | Lisa Lukens salibainsurance@gmail.com

Farm Agents Council | Steve Foster s.foster@ciagonline.com

Government Relations | Dustin Peterson dustin@peterson.insurance

Planning & Coordination | Nick Gunn, CIC ngunn@envisionins.com

Technology | Brian Ogden brian@ogdeninsurance.com

Young Agents | Cody Imming cody@imminginsurance.com

Big I Illinois Staff

Insurance Products Administrator

Director of Information and Technology

Director of Education and Agency Resources

Accounting & Admin Services

Director of Human Resources, Board Admin

Sr. Vice President/Chief Financial Officer

Chief

Director

Office Administrator

Director of Communications

Marketing Representative

Rebecca Buchanan (217) 321-3010 - rbuchanan@ilbigi.org

Shannon Churchill (217) 321-3004 - schurchill@ilbigi.org

Brett Gerger, CIC (217) 321-3006 - bgerger@ilbigi.org

Tami Hubbell, CIC (217) 321-3016 - thubbell@ilbigi.org

Jennifer Jacobs, SHRM-CP (217) 321-3013 - jjacobs@ilbigi.org

Mark Kuchar (217) 321-3015 - mkuchar@ilbigi.org

Phil Lackman, IOM (217) 321-3005 - plackman@ilbigi.org

Lori Mahorney, CISR Elite (217) 415-7550 - lmahorney@ilbigi.org

Evan Manning (217) 321-3002 - emanning@ilbigi.org

Kristi Osmond, CISR Elite (217) 321-3007 - kosmond@ilbigi.org

Rachel Romines (217) 321-3024 - rromines@ilbigi.org

Tom Ross, CRIS, CPIA (217) 321-3003 - tross@ilbigi.org

Carol Wilson, CPIA (217) 321-3011 - cwilson@ilbigi.org

How Does It Work?

n Envision’s proprietary system enables brokers to present unique benefit programs not available through any insurance company

n Envision’s professional, easy enrollment and customer service team delivers seamless processing for your customers.

n Envision’s innovative reporting capability is designed to enable management to make informed decisions concerning their employees’ healthcare costs

Surplus Lines

How many have written a policy through the E&S market, otherwise known as the surplus lines market? If you haven’t need to, in this market, good for you. I would imagine that the surplus lines market is seeing its best years ever. Let’s address some frequently asked questions.

What is E&S or surplus lines?

It is the market where you place insurance with an insurer who does not have a certificate of authority to sell insurance in the state of Illinois.

So when can I go to the surplus lines market?

You can go to the surplus lines market whenever you cannot find coverage in the admitted market (kind of).

Who can sell surplus lines insurance?

Agents and brokers who obtain a surplus lines license.

What steps need to be taken to sell surplus lines?

Obtain a surplus lines license and the type of insurance will detail the specific steps that need to be taken.

How do I go to the surplus lines market?

Obtain a surplus lines license, file your surplus lines taxes for all of the surplus lines policies you place with surplus lines insurers or you may broker surplus lines policies through a wholesaler (most common).

What are the pluses and minuses of placing insureds with a surplus lines insurer?

We will discuss this later in the article.

What’s prohibited?

You cannot place an insurance policy that is designed to satisfy the proof of financial responsibility and insurance requirements in any Illinois law where the law requires the proof of insurance is issued by an authorized insurer or residual market mechanism (auto); that covers the risk of accidental injury to employees arising out of and in the course of employment according to the provisions of the Workers’ Compensation Act; or any policy eligible for a residual market unless the risk is not eligible for coverage or exceeds the limits available in the residual market mechanism. Agents must make a “diligent effort” to place the insurance with an admitted carrier and have proof of that effort.

What is “Diligent”?

Diligent is denial from three carriers that typically write that type of insurance. For example, you could not use a Life insurer’s denial to write commercial property risk as a diligent effort. A good historical example of surplus lines insurance risk would be a hole-in-one insurance. Diligent effort is not required when placing business for an “exempt commercial purchaser” (huge corporation); a licensed surplus line producer may procure a surplus line insurance contract, other than a personal lines insurance contract, from an unauthorized insurer without making the required diligent effort to procure the insurance from authorized insurers if the risk was referred to the surplus line producer by an Illinois-licensed insurance producer who is not affiliated with the surplus line producer; additionally diligent efforts for individuals need not be done when master policy is involved and only have to be done for the master.

Why place an insured in the surplus lines market?

The surplus lines market offers higher limits, differing deductibles, broader coverage, no coverage available, or very limited coverage -specialty type of insurance (holein-one) or highly volatile type of insurance (cyber). Originally, cyber started as surplus lines only and moved to the admitted

Brett Gerger - Big I Illinois Director of Agency

Brett’s

2Sense

market, but it is currently seeing surplus lines movement again as admitted appetite is changing. This Hard Market, where insurers are tightening their belts as to what they will and will not write is driving much business to the surplus lines market. I would imagine that the Surplus Lines Association has seen record-setting policies in the last couple of years. Many are going the surplus lines route due to necessity and not ‘want’ as they have no other place to go. Many refer to the residual markets as “places of last resort,” but this last year, I have heard of residual markets turning down some risks that make the true market of last resort surplus lines.

What is the downside of the surplus lines market?

The downside to the surplus lines market is the perception of less consumer protection as there is no Guaranteed Fund protection or real Department of Insurance protection. If you have a problem with a non-renewal or cancellation, you cannot file a complaint with the Department. You would need to file the complaint with the Illinois Surplus Lines Association and/or try to litigate the issue through the courts. If the surplus lines insurer becomes insolvent, you are most likely out of luck or will need to get in line with everyone else they owe money.

With all this being said, what are the best practices when utilizing surplus lines?

1. Be completely transparent with your insured by detailing all possible pitfalls they may experience.

2. Place the business through a reputable wholesaler with a lot of experience dealing with surplus lines insurers.

3. When able, continue to seek admitted market solutions.

4. Do not automatically assume surplus lines is the answer, however when doing your homework and weighing the benefits you may find that surplus lines is the answer to your coverage challenges and that is okay.

5. This is a complicated issue, and should you need further clarity, do not hesitate to contact me directly.

As always, this is just Brett’s 2 Sense and I hope it was helpful. You can contact me through my CONNECT and if it is urgent, do not hesitate to reach me through CONNECT. I may be pushing you to CONNECT. If you need any clarification or have any suggestions for future articles please email me at bgerger@ilbigi.org.

By Brent Kelly

When you ask agency leaders about their greatest workplace challenges and frustrations, most will cite a laundry list of items similar to:

• Our producers don’t produce enough

• We don’t have enough people/time

• My people aren’t always accountable

• I’m frustrated with our systems/processes

However, when you ask them what they really want (or to quote the Spice Girls, “Tell me what you want, what you really, really want.” they tend to be caught off guard. Often, they have a difficult time clearly defining what they actually want vs. what they don’t want. That’s because it’s always easier to pinpoint negatives than positives.

Overly broad or ambiguous goals are another problem for leaders. For example, while the desire to grow or improve are reasonable goals, neither is specific enough to provide clarity. They are simply too abstract to communicate a compelling vision that will guide the agency toward its goals.

For instance, if growth is the goal, how do you want the agency to grow? Do you want to grow in terms of revenue? Number of producers? Number of clients? Without some level of clarity, how can you know where you’re going and how will you convince others to go along with you?

Imagine if someone pulled up in a car and told you to get in. Would you immediately jump in without knowing where you’re going? What if the driver said, “I have no idea where we’re going, but it’s a really great place!” Would that convince you to go along?

John Maxwell has written, “Leaders see more and before others.” What’s more, they take others with them. When leaders lead with clarity, others want to accompany them on the journey.

Clarity is about certainty that stems from these three simple but thought-provoking questions:

1. Where are we today?

2. Where do we want to go?

3. How will we get there?

Let’s take a deeper look at each of these.

Tell Us What

What

Where are we today?

This first question seems obvious, as it is a question of awareness: Do you know where you are right now? But an honest answer requires honest examination.

For example, how do you respond when someone asks, “How are you?” You probably say, “I’m fine,” even when your world is falling apart. In that situation, a simple, vague answer is probably best (unless the questioner is a licensed, paid therapist).

Agency leaders are apt to give the same ambiguous reply when they don’t know their numbers. They lack clarity because they aren’t sure where the agency stands.

In many cases, if you ask different agency leaders this question you’ll get different answers. One may say, “We are doing fine,” and another may answer, “Our revenues are XXX.”

Both answers may be accurate, but do they align with other leaders at their agency? They may have divergent interpretations about how well their agency is doing. If I ask a leadership team how they would rate the internal communication of the agency, one leader may say seven while another barely rates it a three! When principals are on different pages, it’s difficult to attain clarity.

If you’re a parent, you know what I mean. Sometimes, couples have very different ideas about how to raise children. Take bedtimes as an example. Dad may tell the kids it’s fine to stay up until midnight on weekends, but mom may insist they maintain a 9 p.m. bedtime every night. This sends a confusing message (and may encourage the older ones to side with the more lenient parent).

When there is more than one decision maker, a unified front provides clarity about expectations, and helps to prevent disagreement and dissension in the future.

As I alluded to previously, there are two ways to gauge agency health: emotionally and fiscally. Each provides pertinent and unique answers to the question, how is your agency doing?

You Want,

Your Agency for You Really, Really Want

Fiscal. These answers are usually based on tangible financial data, such as revenue, number of employees, revenue per employee, revenue per producer, closing ratio, revenue per relationship, and an 80/20 analysis.

Is it the end of the world not to know all the answers? Not necessarily. But leaders should have the same general idea about the agency’s fiscal status.

For example, is annual revenue in the $7.4 million range or closer to $8.2 million? To enhance clarity, it’s important that leaders are aware of and aligned with their agency’s numbers/ finances.

Emotional. This assessment of agency health is subjective and reliant on alignment and honesty. There is an obvious lack of clarity when one leader thinks everything is great in the agency and the other thinks things are going terribly.

It’s critical to have some consensus on how the agency is doing. Is it maintaining the status quo or is it growing? Are things just okay or are they great? Is the agency on the right path or is it derailing? How would other leaders on your team respond?

Among a four-person team, two might be completely satisfied with agency culture and operations, and two might be totally dissatisfied. Consensus enhances clarity.

Where do we want to go?

This is a question of vision. In some ways, it reminds me of the questions my wife and I ask ourselves before we embark on a home improvement project. We look at the space we want to remodel and assess what works well and what needs a re-do.

Similarly, changes to an agency require thoughtful consideration to ensure that any changes are worthwhile. As a leader, it’s imperative that you understand the specific dangers, opportunities and strengths of your agency. What do you like about it and what do you want to change? How do you want to change it? How will you change it?

One of my favorite questions to ask an agency during an initial discovery call comes from speaker and coach Dan Sullivan: “If we were having this discussion three years from today, and

you were looking back over those three years, what has to have happened in your life, both personally and professionally, for you to feel happy with your progress?”

This question allows you to frame your future through a different lens. Instead of looking ahead, you are already ahead, looking back. This unique perspective allows you to see how you got where you are today while also spurring insight about where you want to be.

Most agency leaders pause and think when I ask them the following: Where do you envision your agency in three years? What must have happened over the previous three years for you to be pleased with your progress?

Often, they’ll say things like, “We would have aligned our processes,” or, “We would have had more meetings with sales and service,” or, “We would have held people accountable,” to name a few.

What is the current roadblock or problem that would prevent you from realizing your vision in three years? Usually, this roadblock is something that’s already in place. Let’s say you want to be a supermodel or a star athlete in three years. What are you doing now to get there? Are you eating pizza every night and not working out? Is it possible for you to change that? Are you willing to do so?

As an agency leader, if you have $2 million in revenue and 15 employees now and your goal is to reach $4 million in revenue and 25 employees in three years, how do you propose to do that? What’s keeping you from doing that? This leads to the third and final question.

How will we get there?

This is a question of both culture and strategy. Are you intentional about what you want or are you just letting things happen along the way?

When you build a house, you have a blueprint, don’t you? Oh sure, there may be change orders and additions along the way, but you don’t just wing it and hope that the home of your dreams appears.

continued...

Unfortunately, that’s how many leaders try to build a great agency. They lack clarity about exactly what they want and, therefore, have no idea how to get it. Yet, they are often perplexed when they don’t attain the high level of success they desire.

Many agency leaders live in the world of tactics or processes when they should be starting with culture. Although necessary, tactics are ineffective when not first framed by culture, followed by strategy. The three are intertwined but distinctly different:

• Culture. Have you established a culture? At the Sitkins Group, we define culture as the language and behaviors that are normal in your agency today.

For example, what are people within the agency saying? What are people doing? Is there a sales process that is repeatable, and that can be used in training and preparation? That is the culture.

• Strategy. A strategy is bigger than a tactic. It’s not the latest new and shiny thing. Are you always pursuing a new idea? Does it align with your goals? Does your team ignore you when you launch it?

In closing

It’s been said that our direction, not our intention, determines our destination. If so, are you doing what author Keith Cunningham describes as “running in the wrong direction enthusiastically”?

I believe all of us have done that at one time or another, especially when we’re in a hurry to get someplace. You know the feeling. You’re driving along, certain that you’re going the right way, but things don’t look quite right—landmarks are missing and nothing looks familiar. Even then, you stubbornly stay the course and drive miles out of your way before consulting a GPS for directions.

Once you adjust your route and change direction, you’re back

Developing a HIGH-PERFORMANCE Insurance Agencies Culture at

By ReFocus

Create a high-performance culture at your insurance agency by setting clear goals, fostering accountability, and investing in leadership development.

The insurance market faces a wave of retirements - often called the Silver Tsunami - and is struggling to attract new talent to fill the growing number of open positions. As skilled employees retire, agencies are working on transferring their knowledge to keep valuable expertise within the business and prepare the next generation.

Given these challenges, how can you create an environment where employees are motivated, productive, and aligned with your agency’s goals? We interviewed Eric Kuhen, VP of Growth Advisory for MarshBerry, a global leader in financial services and consulting, to discuss approaches you can take to develop a high-performance culture for your team while fostering growth, development, and success. The interview has been condensed and edited for clarity.

Set Clear Goals

Clarity is crucial for high performance. Your team needs to understand what is expected of them and how their efforts contribute to the agency’s success. Clear, measurable goals and Key Performance Indicators (KPIs) provide direction and a sense of purpose. Communicate these goals regularly and update them as necessary to ensure they remain relevant and achievable.

As Kuhen adds, setting goals is just one part of the solution. “While having a target is important, the likelihood of failure increases without a structured and intentional plan to achieve those goals. In fact, only 23% of producers have established business plans that they actively follow on a weekly or monthly basis to stay on track. The correlating industry stat is that only 27% of new producers validate. Effective management plays a crucial role by consistently reinforcing and developing these plans to ensure success and holding team members accountable.”

Foster Accountability

Accountability is about ensuring that everyone takes ownership of their tasks and responsibilities. Implementing transparent systems for tracking goals and scheduling regular performance reviews or update sessions to help maintain this. When employees are held accountable in a respectful way, they are more likely to stay committed and focused on their objectives.

“A culture of accountability starts with leadership,” shares Kuhen. It’s baked into SOPs and how people work every day. People inherently do not embrace change unless they are shown the WIFM (What’s in it for me?) Failed initiatives typically fail because of the lack of accountability from leadership. Employees flounder or get stuck in one position because they are not being held accountable to meet minimum standards, let alone perform better.”

He continues, “If your firm lacks accountability, it can be toxic for your entire staff. It works both ways; leaders also need to be held accountable for their lack of action or follow-through. Deadlines should be checked and updated frequently so everyone is on the same page and has a chance to ask for assistance if needed.”

Lead by Example

Leadership sets the tone for the entire organization. Leaders who demonstrate hard work, integrity, and commitment inspire their teams to follow suit. Embodying the values and behaviors you wish to see in your employees creates a model for high performance.

Kuhen says he has seen mentorship have a huge impact in this area. “Establishing a clear path for leadership begins with fostering an environment that encourages and rewards mentoring. In fact, 87% of current leaders report that having a strong mentor played a crucial role in their development as effective mentors themselves. Leaders need to dedicate time to support their teams in paving a path forward. Additionally, as our population ages, projections indicate that more people will turn 65 in 2025 than at any other time in U.S. history, underscoring the urgency of developing the next generation of leaders.”

Avoid Fostering Bad Behavior

Addressing any detrimental behaviors promptly is vital. Ignoring or tolerating negative actions can erode morale and productivity. Never establish different standards for those who excel in other areas. For example, a producer who sells well but treats the team poorly is likely doing more harm than good. Establish clear policies and procedures for dealing with misconduct to maintain a healthy work environment.

Adapting to Individual Personalities and Skill Sets

One of the biggest challenges insurance agencies face is tailoring their high-performance culture to fit their team members’ diverse personalities and skills.

“While many firms assert that attracting top talent is their biggest challenge, few invest in developing their existing employees,” adds Kuhen. “Implementing a comprehensive training program that focuses on the ongoing development of current staff, alongside a robust onboarding process for new hires, enables firms to hire for growth and leverage employees’ strengths to enhance the organization.”

He adds that knowing personalities before you hire can be key. “Another opportunity for improvement lies in conducting thorough assessments before hiring. By understanding what motivates candidates and identifying their key skills, firms can better nurture talent and inspire new hires to advance their careers.”

Recognizing and adapting to your team’s unique personalities and skill sets will further enrich a culture of high performance, leading to sustained success and growth.

This article originally appeared on the ReFocus blog at blog. refocusai.com/developing-a-high-performance-culture-atinsurance-agencies/.

Tracking Your Insurance Agency’s Performance

Tracking the performance of your insurance agency is crucial for assessing growth and identifying ideas for improvement. It also allows you to make informed decisions to keep your business successful.

The best way to track performance is to use key performance indicators (KPIs) to see how sales agents, departments, and your agency as a whole perform. Monitoring performance allows insurance agencies to evaluate progress toward SMART (Specific, Measurable, Achievable, Realistic, Timely) goals and objectives. When comparing performance against targets, you can identify gaps and take measures to get back on track.

Before implementing KPIs, you should set clear goals for your agents and each department. These goals incorporate metrics such as revenue growth and policy retention rates. They can also include customer satisfaction scores and lead conversions. Defined objectives provide a benchmark for KPIs.

Track Sales KPIs

By Jenna Kleiber

Your sales agents drive the majority of your agency’s sales. To monitor their performance, you can track inbound and outbound sales KPIs to determine how well your agents hit their quotas and how many new policies they sign up for.

Sales KPIs also include the number of referrals and how long it takes to underwrite policies. A sales growth KPI highlights your agency’s ability to attract new customers and retain existing ones.

Monitor Long-Standing Accounts

The customer retention rate KPI assesses your agency’s ability to retain customers and links back to sales performance. A high retention rate means your customers remain loyal to your agency because they are satisfied with the service received from your agents. Customer satisfaction is essential for your agency’s long-term success.

A low retention rate may indicate additional shortfalls in the sales KPIs because of service quality issues. You can track customer satisfaction using online surveys, polls, or feedback emails. Doing this will provide a way for your agency and your sales agents to improve customer service.

Another indicator of dissatisfaction among your customers is a low renewal rate. You should include this KPI in your performance monitoring efforts to cover all bases.

Keep an Eye On Your Agency’s Conversion Rate

The conversion rate metric tracks the percentage of leads that become customers. You should monitor this KPI to ensure that your sales process is efficient and to clear administrative bottlenecks that might stand in the way of effective conversion.

In addition to the conversion rate, you should measure the average premium per policy. Doing this will provide opportunities for upselling and cross-selling.

Measure Your Agency’s Claim Ratio

To keep your agency’s performance on track, you should measure the ratio of claims paid out and compare it to the collected premiums. This process will help you determine the best risk management practices to stabilize your business and improve profitability. Ultimately, your insurance agency’s profitability reflects its overall health.

You can maintain and increase profits by tracking financial KPIs such as gross and net profit margins and return on investment (ROI). Include marketing ROI in your tracking process to correlate your expenditure with sales and revenue growth. Doing this will help establish the success of your marketing strategy.

Implement a Performance Tracking System

As a business owner, you likely don’t have the time to track individual and departmental performance. Implementing a performance tracking system, such as an insurance agency management system, will take this time-consuming task off your hands.

Using this system, you can:

• Set clearly defined goals. These goals must articulate your agency’s objectives and align them with your chosen KPIs. Measurable goals must be specific, timely, and achievable.

• Select trackable metrics. Focus on the most impactful KPIs that align perfectly with your agency’s goals.

• Establish a target for each KPI. You can determine targets by studying past performance, benchmarks and comparing them to your future business objectives. If you want your agents to strive toward improvement, their targets should be challenging but not unattainable.

• Collect data as you measure KPIs. The easiest way is to leverage technology like CRM software or analytics tools.

• Review performance and progress against targets. You should conduct regular performance reviews with your agents to provide feedback, address challenges and discuss improvement options. Performance assessments also allow your agents to inform you of any unforeseen obstacles keeping them from reaching their targets.

• Become proactive in driving performance. Implementing training programs and targeted marketing campaigns to help agents reach their targets.

• Share results with stakeholders, management, and staff. When you’re transparent about your insurance agency’s performance, you foster a culture of collaboration and accountability.

KPI tracking may be a long-term solution to issues you may experience in your agency. You should regularly review and refine KPIs to manage business needs, market dynamics, and customers’ expectations.

Conclusion

Ensuring your agency’s financial health is vital to staying competitive in today’s market. With ongoing KPI monitoring, you can quickly improve lagging areas in your business, measure progress toward goals, and make data-driven decisions to stay ahead of your competitors. When you understand the factors that impact your business’ performance, you can navigate challenges easier and continue to build a dynamic insurance agency to serve your customers.

Jenna Kleiber is the Marketing & Sales Manager at Jenesis. Find out more at jenesissoftware.com.

Agency Leadership Lessons From ‘Toy Story’ Creator

By Diane T. Keil-Hipp

Ed Catmull, cofounder of Pixar, shares three pillars of success that are foundational for business performance and longevity.

We all know the movie “Toy Story” and its lovable characters Woody, Buzz, Jessie, and the rest of the gang that come to life when humans aren’t looking. But what could this animated movie possibly have to do with leadership? Well, the lessons for business leaders come from “Toy Story” creator Pixar and its cofounder, Ed Catmull.

In a recent Wall Street Journal article, Catmull shared his wisdom about change, long-standing success, and the elusive “sweet spot.” Interestingly, Catmull’s comments align with the research on the internal factors necessary for organizations of all sizes to survive over time.

First, let’s take a quick overview of the Pixar journey. Catmull was recruited by George Lucas in 1979 to create a digital film unit. In 1986, Steve Jobs purchased the unit from Lucas and founded Pixar along with Alvy Ray Smith and Catmull. Nine years after its founding, Pixar released “Toy Story,” and in 2006, Pixar was sold to Disney for $7.4 billion.

Now, before you discount this story because “all tech companies got rich in this era,” consider that in 1986, Sun Microsystems and Silicon Graphics were on top. Today, you’d be hard-pressed to find someone who recognizes those names. Although it is hard to believe that technology firms could ignore signs of their technology changing, that is what happened. Today, neither firm exists.

Catmull understood that, although technology was a critical ingredient to Pixar’s success, organizational culture, its view of change, and its corporate attitude are the pillars technology rests on. As a leader, he was determined to build a company with a sustainable creative culture that encouraged communication and removed hierarchies.

As it turns out, these three pillars are foundational for all types and sizes of businesses, including insurance agencies. Here’s how each pillar affects agency performance and longevity:

Organizational culture. This defines the environment in which co-workers engage. Together, co-workers learn how to think, feel and behave. The behaviors that are validated by the environment are taught to new members as the correct way to think, feel and behave. Soon, a culture is born, whether productive or dysfunctional.

At Pixar, Catmull wanted to build a culture that encouraged communication and removed hierarchies. Nearly 40 years later, fostering this type of culture still takes attention and focus. But it is a non-negotiable effort for the longevity of the business.

A productive agency culture encourages employees’ ideas, rewards stellar performance and abounds with supportive conversations. But when culture is dysfunctional, the tentacles spread far and wide. Maybe you know of agencies where ideas are shut down, only favored employees are rewarded, and gossip thrives. These are all examples of a dysfunctional culture. When these behaviors are commonplace, the agency’s sustainability is at risk.

View of change. The organization’s view of change affects its desire to look into the future of consumer wants and needs. A resistant organization will be satisfied with the status quo and less likely to change tried-and-true processes for new approaches.

However, Catmull says there is no point of rest, no place for coasting, no sweet spot. “Even when you get to a place where everything seems right, people come in with new ideas, new technology, new expectations … we need a mindset that allows us to adapt when nothing is stable,” Catmull told the Wall Street Journal earlier this year. Although it seems like an oxymoron, embracing change must be a foundation.

Because many agencies are long-standing firms, resistance to change often prevails. The agency’s history and legacy can become its own worst enemy, preventing the firm from embracing new technology and recognizing changing consumer demands. For instance, do you know an agency that still relies on paper policies?

Corporate attitude. Corporate attitude is defined by the firm’s view of its future existence. If the firm is humble, it will not take its success for granted. However, a firm with an overly confident attitude about its future can ignore the changing winds. This type of attitude often emerges after an organization achieves great success. Even the most attentive leaders can get caught up in the moment. Who can blame leaders for basking in the glow after years of hard work?

But basking in the glow can open an organization up to being blindsided. Catmull admitted that Pixar had its share of problems. Internal rifts, discrimination and sexual misconduct blindsided him.

At agencies, a corporate attitude of over-confidence can be years in the making. Long-standing, generational businesses are especially susceptible to wearing rose-colored glasses that show an idyllic future. But assuming the agency will continue to thrive simply because it has prospered to this point is dangerous.

Lessons Creator

Often, agencies who suffer from this attitude blame others for their lack of sales growth and fail to reinvest in the business or strategically plan.

Spinning Wheels

The research supports Catmull’s observations. My research on organization decline led to the creation of the Spinning Wheels model, which illustrates how these three factorsculture, change and attitude - spin into liabilities, creating a dysfunctional culture that resists change and assumes its future is guaranteed.

But an organization that’s spinning its wheels thinks that its existing processes will still garner success. And if you think insurance agencies are immune to changing consumer needs, you are proving my point.

Don’t let your organization become a spinning wheel. Take the “Toy Story” lessons and pay attention to your organization’s culture, view of change and corporate attitude. If any one of these starts to spin inward, grab that wheel, stop the spinning and lead your firm toward the future market.

When these three factors of change, culture and continuity become liabilities, the organization becomes inwardly focused, spinning in its busyness of following processes that brought earlier success.

But while the organization focuses inward, the consumer market is moving, likely in a different direction. Consumers will move away from firms that no longer meet their needs.

Diane T. Keil-Hipp is chief operating officer of Knight Insurance Group, headquartered in Toledo, Ohio. She is also a doctoral candidate at Bowling Green State University. Her dissertation research focuses on organizational decline. Keil-Hipp created an organization traction survey to help firms diagnose their degree of spinning wheels.

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Pekin Insurance

A. J. Wayne & Associates

AAA, The Auto Club Group

AMERISAFE

AmTrust Insurance

Amwins

Apollo Brokers dba Limit

Auto-Owners Insurance Co.

Berkley Aspire

Berkley Management Protection

Berkley Small Business Solutions

Berkshire Hathaway GUARD Insurance Companies

Bliss McKnight

BluSky Restoration Contractors, LLC

Boundless Rider

BriteCo Jewelry & Watch Insurance

Central Illinois Mutual Insurance Company

Chubb

Columbia Insurance Group

Cornerstone National Insurance Company

Cowbell Cyber

Donald Gaddis Company, Inc.

Donegal Insurance Group

EMC Insurance

Encova Insurance

Erie Insurance Group

Foremost Choice Property & Casualty

Forreston Mutual Insurance Company

Frankenmuth Insurance

Grinnell Mutual Reinsurance Company

IA Valuations

Illinois Mine Subsidence Ins Fund

Illinois Public Risk Fund

XPT Specialty Bronze Level

Imperial PFS

Independent Mutual Fire Insurance Company

Indiana Farmers Insurance

Insurance Program Managers Group (IPMG)

J M Wilson

Liberty Mutual/Safeco Insurance

Madison Mutual Insurance Company

Main Street America Insurance

Maximum Independent Brokerage, LLC

Mercury Insurance Group

Method Workers Comp

Midwest Insurance Company

Nationwide

NHRMA Mutual Workers’ Compensation

Paychex HR and Payroll Solutions

Pinnacle Minds, Inc.

Rhodian Group

Rockford Mutual Ins. Co.

ServiceMaster DSI

Society Insurance

SPRISKA - Specialty Risk of America

Steadily

Summit Insurance

Travelers

Universal Property & Casualty

Utica National Insurance Group

W. A. Schickedanz Agency, Inc./Interstate Risk Placement

West Bend Insurance Company

Western National Insurance

Westfield

Member Agency Receives Insurance Journal’s

“Best

Agency to Work For”

We’re thrilled to congratulate The Bulow Group for being named one of Insurance Journal’s 2024 Best Agencies to Work For. This well-deserved recognition highlights the agency’s commitment to fostering a positive and supportive work environment.

The Bulow Group prioritizes work-life balance, employee well-being, and open communication. With initiatives like unlimited PTO, state-of-the-art offices, and employee-driven decision-making, the agency continues to create a thriving culture where employees can flourish. Read the full article at insurancejournal.com/news/ midwest/2024/12/03/802575.htm.

Member Agency Celebrates 102nd Anniversary

On January 23, 2025, Walter W. Schultz Insurance Agency, Inc. in Lansing, IL will be celebrating their 102nd anniversary. Congratulations to everyone in the agency!

Small Business Insurance

The traditional coverage your customers need

The customized options your customers desire.

The affordable price your customers deserve.

We’ve been successfully protecting small businesses since 1983.

Association Staff & Board

ILLINOIS

Big I Illinois Education Team

Launches New CE Self-Study Book

The Big I Illinois Education team has launched three new Self-Study options for Continuing Education! You can now purchase the books and exams for:

• 12-hour P&C •

• 9-hour L&H •

• 21-hour P&C and L&H • (includes free Ethics)

ilbigi.org/education/educationcourses/self-study

Staff Members

Attend In-Person Associate Member Visits

Big I Illinois staff members, Lori Mahorney, Jennifer Jacobs, and Brett Gerger visited with two Associate Members in the Peoria area on Thursday, December 5.

The team presented to over 80 execs at Pekin Insurance to discuss our partnership, benefits, and educated the group on issues we are hearing from our member agents. Members of the team at RLI met with our staff later that day to discuss our partnership and advantages we can offer our agency members.

Women in Insurance Group

Virtual Meeting

The Women in Insurance Group met on Friday, December 6 for their monthly virtual discussion. Attendees shared experiences and advice other were able to implement right away. Sign up for future meetings at my.ilbigi.org/ About-Us/Women-inInsurance.

MID-WINTER MEETING

Education Session Topics

E&O Crop Insurance meets Big I E&O discount requirement meets IL 3-Hour Ethics requirement

Hard Market Conditions and Climate Changes

Presenters

Brett Gerger

Evan Manning

Special guest from IL DOI

Trent Munson

Luke Sandrock

LOOKING FOR AN EXIT STRATEGY?

23. Are you looking for an exit strategy while still continuing to produce for a few years or are you ready to sell now? Paczolt Insurance would like to talk with you! We are an independent agency dating back to the 1970s that is located in the western suburbs. Our focus is on mid-to-small commercial accounts and personal lines. Our companies include EMC, Badger Mutual, Safeco, Progressive, and Travelers. We have the flexibility and capital to get a deal done. Contact:

Susan Troppito

Paczolt Insurance

susan@piaigroup.com (708)215-5202

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, Buy-Sell 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. Please look closely at us- we are an agency you want to do business with! We’ve done it before, we know how- we make it easy! Visit our website at forestagency.com/agents.html, or call for a confidential discussion and a list of Agency benefits.

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

Dan Browne or Cathy Hall Forest Insurance/Relations Insurance Services

(708)383-9000

www.forestinsured.com/mergers-acquisitions