e-Insight July 2020 - Member by Big I Illinois

JULY 2020

INSIGHT Whatâ&#x20AC;&#x2122;s on the horizon for independent insurance agencies? Consumer Relationships in the Digital Age Planning for Your Agency - Data is Key Facing the Digital Reality: Rising to Customer Expectations

TRUST US TO PROTECT THEIR DATA Our Cyber Liability and Data Breach Response coverage protects your customers when they’re victims of a breach, helping them regain their customers’ trust. Trust in Tomorrow.® Talk to us about protecting your customers today.

AUTO | HOME | FARM | BUSINESS

grinnellmutual.com “Trust in Tomorrow.” and “Grinnell Mutual” are registered trademarks of Grinnell Mutual Reinsurance Company. © Grinnell Mutual Reinsurance Company, 2020.

Editor & Graphic Design - Rachel Romines

Advertising - Tami Hubbell

CONTENTS July 2020

8 10 12 14 14 16 21 22 24

My One Key Sales Tip

By John Chapin

Building Consumer Relationships in the Digital Age

By Lauren Williams

Planning for Your Agency: Data is Key

By Carey Wallace

Insights for Independent Agents IIA of IL Member Benefit Added: Solution Center Moving Forward - What’s on the Horizon for Independent Insurance Agencies?

By IIA of IL Staff

Workers’ Compensation - Information You Need to Know

By Brett Gerger

Facing the Digital Reality - Rising to Customer Expectations

By Lauren Williams

Five Self-Deceptions That Hold Us Back

By John Graham

In This Issue

7 15 26

Trusted Choice

e-Insight

29 30

IIA of IL News Classifieds

Associate News

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

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

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

ADVERTISERS

Board of Directors Executive Committee

Chairman of the Board | Patrick Muldowney (312) 595-7192 | patrick.muldowney@alliant.com

APPLIED UNDERWRITERS

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

BERKSHIRE HATHAWAY GUARD INS. GROUP

GRINNELL MUTUAL REINSURANCE COMPANY

Regional Directors

28 5

IMT INSURANCE INSURANCE PROGRAM MANAGERS GROUP

JM WILSON

SECURA

WEST BEND MUTUAL INSURANCE CO.

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

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

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

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

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

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

Director of Human Resources, Board Admin Jennifer Jacobs - (217) 321-3013 - jjacobs@iiaofil.org

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

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

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

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

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

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

Planning & Coordination | Cindy K. Jackman, CIC, CISR (800) 878-9891 x8745 | cjackman@arlingtonroe.com Young Agents | Allyson Padilla (618) 393-2195 | allyson@blanksinsurance.com

Find us on Social Media

WE BELIEVE THAT ORGANIZATIONS THRIVE WHEN THEY HAVE

HAPPY, HEALTHY, PRODUCTIVE EMPLOYEES That’s why we developed In-Sight 360 to manage all health, injury and absence events with one team focused on positive outcomes.

THIS CHANGES EVERYTHING.

LEARN MORE: 888-377-5845 • IPMG.COM/IN-SIGHT

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

Trusted ChoiceÂŽ

Digital Review Is your website fully optimized? Are you utilizing social media effectively? Sign up below for a FREE Trusted Choice Digital Review to have your website and social media channels analyzed and reviewed. You will receive an actionable report that gives you detailed feedback on how you can improve your online presence and reach more customers.

Request your FREE Digital Review Now!

A Digital Review includes:

A scored website report

Content and Layout Feedback

Social Media Review

After receiving your report, you can schedule a free phone consultation with a Trusted Choice team member who can walk you through your results and help you determine next steps.

For more details please visit trustedchoice.com/agents orjuly email 2020 us at trusted.choice@iiaba.net

insight

MY ONE KEY SALES A couple of weeks ago I was approached to be included in a Sales Hall of Fame publication. The one thing they requested of me was a short video with my #1 sales tip that they could include on the website. #1 sales tip? ‘No problem’, was my first thought. Then, the more I thought about it, the more of a problem it became. To make a long story bearable, I did finally come up with the ‘one’, but in the process, I thought of several others too, which you might find helpful.

My Key Sales Tips When the people putting the Hall of Fame publication initially reached out to me, I was in the process of calling all of my previous clients and many previous contacts, something I do about once every three years or so. I was about 25% of the way through this process and it was already paying huge dividends. So, of course I thought, “That’s my #1 sales idea.” Assuming you do good work,

insight

and people get far more value than they pay for, a call to previous clients always works well. So, while ultimately that isn’t my number one tip, it’s a good one and one you should definitely follow.

Here are some other good tips: • Get back to personal communication and build relationships. You will be most effective talking to people in-person and on the phone. Stop hiding behind social media and looking for easier ways to face rejection. Use the internet and social media to gather intelligence but then pick up the phone or go see someone. E-mail, especially on an initial contact, is one of the worst ways, if not the worst, to connect with someone. You can and should use e-mail, but only after you call or stop by.

july 2020

• Identify and eliminate your biggest road block. What is the one major sales bottleneck in your process? Identify it and laser focus on eliminating it. Research it, read books, watch videos, take a course, talk to people, get informed, and then get to work. Once you eliminate that one, find the next biggest issue and attack that one. • Spend more time on your most important tasks which as a salesperson are: prospecting, presenting, and closing. Ideally about twice as much time as you’re spending now.

S TIP

By John Chapin

• Work hard and smart. You want to work smart, but in the beginning, before you have everything figured out, you’ll have to work hard to learn what you need to learn. Even then, in order to make the number of calls you need to make, you simply need to work hard. • Know your numbers and plan your time. Know your annual, monthly and weekly goals, and the daily activity necessary to hit those goals. Then plan your work and work your plan.

• Make that call you’re afraid to make. Ask yourself, “What’s the absolute worst that can happen?” Decide to accept the worst and realize that, even if the worst happens, you’ll be okay.

Last, and the exact opposite of least, is my number one sales tip that I finally settled on, and that number one sales tip is… Get back to the basics. So what are the basics? First, activity. 99.9% of the time when someone fails in sales, it’s a failure of activity, they didn’t make enough calls, to get enough qualified prospects, to make enough sales. The other .1% of the time, they got hit by a bus. Sales is a numbers game, the more people you talk to, the more business you will do, even a blind pig finds corn. So basic number one is activity. Basic number two is get great at selling. The better you are at each part of the sales process, the more effective and efficient you’ll be during every part of the selling process which means you’ll spend less time with the wrong people, more time with the right people, and as a result, you’ll make more sales and build better relationships. Basic number three is persistence and perseverance. 81% of appointments are set after the fourth contact, 80% of salespeople never make it to the fourth contact. So, my number one sales tip is: focus on the basics: activity, get great at selling, be persistent and persevere. John Chapin is a motivational sales speaker and trainer with over 26 years of sales experience. He is the author of the 2010 sales book of the year: Sales Encyclopedia. He can be reached at johnchapin@completeselling.com.

You’ll spend less time with the wrong people, more time with the right people, and as a result, you’ll make more sales and build better relationships.

• On that note, seek out rejection and discomfort. When you encounter them, welcome them, treat them like your best friend, as if you prayed for them. • Charge headfirst at anything that scares you. Except of course if it’s a bear or something that can actually kill or maim you. • Push beyond what you think is possible. Double, triple, quadruple, or even 10X the number of calls you make in a given week. • Know your WHY. Why are you doing what you do? Who and what are you working for? Your personal, internal motivation, if strong enough, will drive you to accomplish anything you desire. july 2020

insight

Building

Consumer Relations

The events of 2020 have shown that insurance agencies must be prepared to offer their clients digital forms of communication at any point in time. In fact, J.D. Power’s 2020 U.S. Auto Insurance Study found that consumers now view insurance company websites as more important to client interaction and service than insurance agents themselves. In the time of COVID-19, people appreciate having a convenient and safe way to contact their insurance companies. With everything going on in the world, they want to be ensured that they are protected. Though the country is beginning to open back up, it is clear that digital communication is preferable to many clients and is therefore here to stay. However, digital communication such as phone calls and emails can often be viewed as impersonal. Here are some tips to help build and maintain meaningful client relationships in the digital world. Make Clients’ Digital Experience a Priority

in the

Digita

aesthetically pleasing and easy shows that your business is professional. It also helps clients be more willing to give you their trust, which is something you’ll need in order to build better relationships with them. Use your website and email to encourage customers to reach out and provide pleasant communication when they do. If your phone has an automated menu, make sure that it is user-friendly. When time comes for clients to renew their policies, you want them to feel comfortable doing so. Respond promptly to emails and phone calls. Clients will expect and value a quick response in today’s hyperconnected world. Make sure to welcome customer feedback. If a customer has an issue with your website or phone service, address it promptly and make them feel that their opinion is valued. Being accommodating and responsive when customers bring up problems will increase their faith in your business.

Take steps to guarantee the user experience on your company’s website is a pleasant one. Clients both new and current will be turned off from your business if your website is not user-friendly. Having a website that is

insight

july 2020

Some businesses may want to implement a Customer Relationship Management (CRM) platform to help store client information, such as meeting times or important milestones, and to keep track of communication. Adopting a client portal can also help streamline communication, as well as allow clients to view and work on their policies, make electronic payments, sign agreements and communicate with agents on their own time. Clients will likely embrace these digital forms of connecting. However, face-to-face interactions are still an important part of building relationships. Luckily, you can offer a digital solution to clients through video conferencing platforms such as Zoom or Google Meet. Video meetings allow clients a greater level of convenience while still maintaining a personal connection. Go Beyond the Call of Duty Customer service is an important differentiator when clients are choosing what brands to trust. Along with making a personal connection, customers want to know that you will have solutions when they come to you with their insurance needs. Becoming an expert on all topics relevant to your industry can help you be an invaluable resource. Take the time to research updates in your industry and the benefits of different coverage options. As you continue to digitize your processes and learn more about your customers, you can use the data and information they share with you to help determine their specific needs. If you come across information that you know is relevant to your clients, share it with them. Showing them that you have their best interest in mind will build their trust in you and keep them coming back when it is time to renew their policies.

nships

tal Age By Lauren Williams Personalize and Streamline Communication Personalizing your messages to clients can help them see you as not just their agent, but as their friend. Clients like to know that you are invested in their lives and understand their insurance needs. They want to feel supported, especially right now. Make an effort to get to know your clients on a personal level and check in with them on a regular basis. Keep your messages polite and pleasant. The time you put into creating a deeper bond with your clients will be repaid in loyalty.

Remember that the goal of any implementation of technology should be to enhance relationships with clients, not to replace them. Every client is different, and each will have their own preferred method of communication. What clients appreciate most is effort. As long as you show your customers that you are committed to stellar customer service through friendly, personalized correspondence, you are likely to win their loyalty time and time again. Lauren Williams is a 2020 graduate of Westminster College in Fulton, Missouri, majoring in English. She is a freelance writer for Insight magazine.

Though a personalized approach is essential to building client relationships, it is important not to over-do it. Too many emails or texts can be overwhelming. If your emails become lost in a clientâ&#x20AC;&#x2122;s inbox, it wonâ&#x20AC;&#x2122;t do you or your business any good. It is important to keep your personalized messages purposeful and to touch on information important to your organization that is relevant to specific clients. Otherwise, clients will become annoyed rather than appreciative of the effort youâ&#x20AC;&#x2122;re making.

july 2020

insight

PLANNING FOR YOUR AGENCY

DATA IS KEY By Carey Wallace Independent agencies are among the most profitable and predictable businesses causing them to be considered recession proof by almost all measurements. Independent agencies have remained strong over the past 15 years which included several epidemics including SARS, Bird Flu, H1N1, MERS, and EBOLA as well as the recession in 2008. In fact, during this time period the number of independent agencies remained constant at 36,500 in spite of an increase in mergers and acquisitions.

Many believe that this pandemic will have a long-term impact on the way we work, do business, interact and what we will require of businesses and each other to ensure our own health and safety. While a significant impact to independent agencies may not be felt today, as this pandemic continues, we can expect to see the full impact of COVID-19 in agencies in the coming months. The impact in an agency will vary based on its specific situation.

In 2019, the average agency experienced retention rates of over 90% which created both a stable and predictable cashflow stream. In addition, over 75% of agencies reported that they are growing year over year both in personal lines and commercial lines business.

A crisis like COVID-19 shines a bright light on the strengths and weaknesses of all organizations. For those organizations that are healthy well-run businesses, they will continue to flourish as they are designed to measure key performance indicators and adjust as changes occurs.

These are some of the factors that have attracted PE funds into our industry and have driven the multiples to an all-time high deeming independent agencies as an incredibly attractive investment. Regardless of the strength of independent agencies, I believe that the successful agencies of today and tomorrow are the ones that can marry relationships, technology and data, and COVID-19 has accelerated that need.

For a lifestyle business, the impact may be significant as that type of organization is not focused on monitoring the data needed to drive business decisions. The reality is that many agencies that were able to operate successfully as lifestyle businesses will struggle to weather this kind of storm. Now more than ever before, agency owners should be utilizing data to create a plan for their agencies. â&#x20AC;&#x192; Step 1 â&#x20AC;&#x201C; Know your book & assess your risk Every agency has a different makeup which means both the risk and the impact on your agency will be unique to your specific situation. In order to estimate the impact that the many factors of COVID-19 may have on your agency, you first need to outline your expected revenue and cashflow. You can do this by creating a cashflow statement that classifies your revenue into categories of personal lines, commercial lines, life & health, and other income knowing that each of these categories are subject to different risk factors.

Impact of COVID-19

COVID-19 has created a dynamic that is unprecedented in our economy. It is a unique health crisis that has turned into a financial crisis and the impact has been rapid, deep, and far-reaching in a significant number of industries within our economy. We are experiencing unemployment rates that are the highest we have seen since the Great Depression and some predictions show that up to 21% of small businesses will not be able to survive and re-open. It is uncertain how long this pandemic will persist and what the short, mid, and long-term impact will be both on our economy and the behaviors of consumers. 12

insight

Next you will need to assign reasonable risk factors to each category that you have outlined. For instance, in personal

july 2020

lines, consider the average age of your insureds to estimate the percentage that may reduce or cancel their coverage due to loss of their jobs.

fail rate with new producers in their validation period and for us to be satisfied with a 25% close ratio with all quoted business. So long to those industry markers.

For commercial lines, further categorize your book into industries and assign a risk factor to each category in order to estimate any potential area that you may experience a significant increase in lost accounts and reductions in coverage due to reduced staff and revenue. Categories such as restaurants, hotels, and manufacturing are areas that have a high-risk factor as a result of the extended closures and the many restrictions on reopening.

We must continue to hire new producers to prospect new business in order to grow. However, we must leverage the tools that as an IA system we have widely ignored prior to COVID-19. Sales assessments for new producers, structured training and mentoring programs, sales management and accountability, focused pipeline management and tailored marketing efforts must become the standard way of doing business for all independent insurance agencies that want to grow.

Once you have estimated the impact on each category of your book of business, you can build a cashflow model that reflects the best case, worst case and most likely case that your agency may experience as a result of COVID-19. Step - 2 Create an Action Plan Now that you know what the potential impact may be to your agency, create a plan of action. Map out a plan in phases to actively monitor your revenue often and take corrective steps as necessary. Immediately identify opportunities to reduce or delay costs, renegotiate contracts with vendors and determine if and when you may need to make any staffing changes to reduce your expenses. Identify areas that you can grow and focus your resources to support that growth. Cash is king in times of uncertainty, so make sure you are spending your resources only in areas that are an absolute must and are directly related to your retention and growth. Step 3 - Apply for Relief There are many programs available for small businesses to take advantage of during this crisis. You should apply and take advantage of the ones that are best suited for your specific situation. Having a documented cashflow projection will help you assess your needs and document your situation to support your application for programs like the Paycheck Protection Program (PPP) or other small business loans like the Economic Injury Disaster Loans (EIDL). In addition, if you have any debt, you should consider restructuring that debt to get the lowest rate possible in order to reduce your liabilities.

Gone are the days of throwing spaghetti against the wall and hoping to see what sticks. That inefficient and ineffective manner of marginally growing an agency is now “officially” obsolete. This is a wakeup call that will require us to become narrowly focused on hiring only the best producers and focusing on only the best prospecting opportunities. We can continue to cast a wide net in our geographic and specialty marketplace but we have to immediately refine those prospects that truly fit our agency. We must leverage data tools to refine our prospect list to a manageable and efficient list of opportunities worth investing in. The old approach of considering every rooftop in your community a viable prospect is no longer feasible. With greater limitations on our resources available for prospecting new business and less opportunity with prospective clients and businesses the need to become hyper focused on viable prospects is critical to success. Conclusion Using data to assess the risk in your agency and plan for your future has never been more important. The agencies that have a plan will be able to adjust and make the necessary decisions to navigate these unprecedented times. We have the tools and resources available to provide you with the resources you need to build a strong plan for your agency. Our business consulting team can provide you with the support and tools you need to help you build your agency’s cashflow projection.

Step 4 - Focus on Retention Determine the areas of opportunity and over communicate with your customers. This is not the time to be quiet, so reach out and let your customers know you are there for them. In times of uncertainty there is great comfort in hearing from our advisors. Be proactive and reach out to your customers to ask them how they are and communicate how their current carrier is responding to this pandemic.

In addition, we have compensation information (State Specific Compensation & Benefits Study) that is relevant to your region and state that you can utilize in your planning as well as the financial and operational benchmarks (RISE Report) based on your size, region, fastest growing and state that you can use to ensure that you are continuing to run a profitable and financially sound agency. We are here to help you utilize these insights, take action and plan for your agency’s future.

It is estimated that 8 out of 10 insureds will shop their insurance during this time. Now more than ever, people want to support their local community and local businesses. Remind them that you are there for them, are part of their community and that you care.

Carey Wallace is CEO for IntellAgents and Chief Innovation Officer for Ohio Insurance Agents Association, Inc. She can be reached at (614) 552-3063 or carey@ohioinsuranceagents.com.

Step 5 - Laser Focus on Growth Opportunities Prospecting new business in this environment has changed our process and approach to hiring producers and organic growth. The old model allowed agencies to have an 80%

july 2020

For additional information on the IIA of IL Business Intelligence solution, see the ad on the next page or visit www.iiaofil.org/businessintelligence.

insight

july 2020

e INSIGHT -

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

JU LY 20 20

INSIGH T

W ha on indept’s endenthe horizon t insur ancefoar gencie

Consu

mer Re

Planni

ng for

lationsh

ips in

the Dig

ital Age

Your A gency Facing - Data is Key Rising the Digital Re to Cus tomer ality: Expect ations

By Mary LaPorte

Agent’s questions about Errors and Omissions, and how E&O losses can be prevented. I am an account manager in commercial lines, and we have heard that because of COVID-19, we need to be careful checking and preparing renewals. We think we have always done a good job in the past, but can you give us an idea of some specific things we should be looking for? Find the answer in this month’s e-Insight. july 2020

insight

As a result of the situation surrounding COVID-19, there is a unique opportunity for agents and agencies to rethink and innovate as they adjust and respond. This crisis may prove to be the motivation for innovation and change in insurance by exposing higher levels of customer experience and personalization that has, quite possibly, been long overdue. Perhaps the most significant changes will be in the way that insurance products are sold and serviced. Business practices and agency operations will continue to be impacted as various lines of business begin to realize affects from the pandemic. Agents need to review their approach to sales and retention to serve the new expectation of consumers. This means a greater investment in creating digital pathways in communicating and servicing. Those agencies that have not embraced the digital revolution the industry has talked about for years, are becoming aware of how even the simplest forms of technology, if they had implemented them earlier, could have changed the way they did business during this pandemic. COVID-19 has thrust digital shopping and customer self-service solutions into the spotlight. And, so it seems, consumers aren’t going to turn back to the old ways of doing business. Customer expectations continue to rise, with shoppers consistently accessing more information than they have in the past, across more channels than ever before. In the 2020 JD Power Insurance Digital Experience Study, Michael Ellison, president of Corporate Insight, states, “The line between brand and digital brand is rapidly disappearing as the lion’s share of insurance shopping and customer support interactions move to digital platforms. Increasingly, insurers’ ability to balance providing the right information at the right time in a format that represents their unique identity will be the key differentiator that separates industry leaders from the rest of the pack.” As the pandemic seemingly slows, agencies should assess how quickly and effectively they were able to respond. Not only at the beginning, with switching from in-office to working at home, but how quickly they were able to respond to consumer’s needs. In the future, when we look back, we may find it remarkable how COVID-19 changed so much that seemed so deep-rooted, with a speed that no one could have imagined. The IIA of IL can help you in your transformation and help you determine any additional steps that you may need to take to adapt your agency and make your business more resilient if faced with future pandemic events. The following are excerpts from a resource document the IIA of IL is providing to members. To view the document in its entirety, go to https://tinyurl.com/IIA-MovingForward.

AGENCY OPERATIONS Once the pandemic has passed, insurance agencies will be returning to a new normal. The most immediate concern for agency owners is protecting the health and safety of employees, as they strive to maintain business continuity. Like the clients they serve, agencies are being challenged to review and update their crisis management plans and take steps to continue operations with minimal disruption. Agencies could also enhance planning and training in anticipation of a potentially longer-term period of social distancing. A comprehensive communications system should be in place to keep employees and clients fully informed about the status of the business and safety plans. Checklists and resources are available to guide business policies and procedures surrounding return to the workplace and reopening to consumers. Businesses are left to consider the legal liability of reopening to the public and may have questions regarding cleaning procedures, whether or not to require masks, and whether businesses should require customers to sign a waiver of liability. IIA of IL has compiled resources on these topics that are available in the online COVID-19 resource center. With clients being more skeptical facing a new risk environment today, and insurance policies evolving as carriers respond to the pandemic, the value of the independent agent will become more apparent than in pre-COVID-19 days. Agencies will need to focus on coverage questions and options, vs. selling their past services and lower premiums. Insurance designation programs provide in-depth training on coverage and sales and remote learning options have increased during the pandemic. Revenue and Payroll Effects on Workers’ Comp and General Liability As time goes on, the agent and client will need to discuss the renewal terms of the policies. Estimating revenue and payrolls at time of renewal has likewise presented challenges for a majority of businesses. Those numbers were, in many cases, higher a few months back and are now going to be re-calculated based on current payrolls. Once the Workers’ Compensation and General Liability policies have lapsed, the audit procedure begins. Depending on the classification of business, at least one policy, possibly both, will have an audit adjustment based on the prior year exposure. Assuming the client had a partial shutdown, the agency will be refunding earned premiums which will result in return commissions. Most insureds want to make sure that they are trying to estimate payrolls and gross receipts as best as they can. continued...

In the future, when we look back, we may find it remarkable how COVID-19 changed so much that seemed so deep-rooted, with a speed that no one could have imagined. The IIA of IL can help you in your transformation and help you determine any additional steps that you may need to take to adapt your agency. july 2020

insight

Agency Financial Outlook Agency owners should also be carefully considering the potential impact of COVID-19 on their short-term, and long-term financial outlooks. Claims costs will likely be specific to the classes of business they write. The big picture concern is how the outbreak might affect the economic environment. Agencies will have to adjust for the prospects for growth and profitability. They will likely need to adjust their budgets and implement a plan for reduced cash flow. COVID-19 has accelerated the need for successful agencies of today and tomorrow to marry relationships, technology and data. Now more than ever before, agency owners should be utilizing data to create a plan for their agencies. Carey Wallace, CEO for IntellAgents and Chief Innovation Officer for the Ohio Insurance Agents Association, Inc. has provided the following steps to help agencies take advantage of data. Step 1 – Know Your Book & Assess Your Risk Step 2 – Create an Action Plan Step 3 – Apply for Relief Step 4 – Focus on Retention Step 5 – Laser Focus on Growth Opportunities To view additional information on each step, see page 12 of this publication. Using data to assess the risk in your agency and plan for your future has never been more important. The agencies that have a plan will be able to adjust and make the necessary decisions to navigate these unprecedented times. The IIA of IL has the tools and resources available to provide you with the solutions you need to build a strong plan for your agency. Our business consulting team can provide you with the support and tools you need to help you build your agency’s cashflow projection. In addition, we have compensation information (State Specific Compensation & Benefits Study) that is relevant to your region and state that you can utilize in your planning as well as the financial and operational benchmarks (RISE Report) based on your size, region, fastest growing and state that you can use to ensure that you are continuing to run a profitable and financially sound agency. We are here to help you utilize these insights, take action and plan for your agency’s future. For more information, visit www.iiaofil.org/ businessintelligence.

HUMAN RESOURCES Attracting and Retaining Talent Agencies may need to hire additional employees to handle an increase in consumer inquiries and claim activity and will need to re-evaluate workplace policies surrounding telecommuting/remote work and benefits such as paid sick leave. To stay competitive and attract top talent, employee benefits must be on par with the competition. Agencies that don’t offer a robust employee benefits package may consider Group Life, Group Short & Long Term Disability, Group Dental and Group Vision programs available through Big “I”. Retirement programs can also be tailored to your agency’s needs. 18

insight

Workplace flexibility and paid time off, particularly sick leave, is becoming commonplace. Employees that have successfully navigated working from home in the past, may not consider an employer who requires a schedule of 9-5 in the office. IIA of IL and Big “I” Hires partner Affinity HR can provide your agency with a range of resources including sample policies, full-service HR Audits, handbook development, and hourly rates for HR consulting to assist with challenging personnel issues. The IIA of IL also provides members with one free 30-minute legal consultation with HeplerBroom, LLC, which is an excellent resource for employment law questions or concerns. As with many processes, employment recruiting and onboarding are increasingly shifting to online platforms with more automated processes. For agencies seeking qualified talent, posting job ads online, with the ability to apply online, is crucial to success. The Big “I” Hires recruiting platform developed by IdealTraits is a multifaceted tool to help agencies develop job ads that will attract the insurance talent your agency needs, post the ads to multiple online job boards, assess candidates, and manage the process through an easy-to-use dashboard. Developing a Successful Team Agencies will need to hire and train more strategically to ensure current and new employees have the skills needed to navigate advancements in technology. Networking and sales opportunities are found in new venues and agencies that train employees to navigate the new playing field, will be most successful. Big “I” Hires partners Caliper and Affinity HR provide assessments to help agencies identify employee skill gaps and develop comprehensive training plans. Employer-provided training is also a valuable recruitment tool for job seekers looking for opportunities to expand their knowledge and grow in their field.

TECHNOLOGY IIA of IL Electronic Solutions The pandemic could influence how clients want to do business. For example, the clients that would stop by to pay their premiums may be hesitant to do this in future. Or having a client come in to sign an application or a change form may cause concern for both you’re the insured and agency employees. IIA of IL has you covered with products that can make paying and signing documents remotely easy for both you and your clients. ePay Policy is an association-sponsored web payment platformthat is simple to set up and easy for consumers to usedirectly from the agency’s current. Payments can be made using a debit card, credit card or ACH directly from a bank account. Agencies can return premiums as well through an easy-to-use dashboard. Clients pay the credit and debit card fees and ACH fees and the cost to the agency is only $20 per month. For more information, please visit https://www.iiaofil.org/ Products-Services/Non-Insurance-Products-Services/e-PayPolicy-Payment-Processor. DocuSign is the easy and secure way to send and receive forms that require signatures. Sponsored in conjunction with IIABA, DocuSign allows agencies to upload documents, send them to the client for signature and receive the signed documents in a safe and encrypted july 2020

manner. The client will open the documents, click the signature boxes, and return them electronically. For more information, please visit https://www.iiaofil.org/ProductsServices/Non-Insurance-Products-Services and click the DocuSign link. Business processes may be changing, but the service provided does not have to. Utilizing these products allows consumers to perform the same actions without having to leave home, saving time for both the agency personnel and client. Technology and Digital Tools for Your Agency As many were rushed to work from home, processes and procedures were implemented quickly to keep the business running. Some of those implementations are working well for agencies, and others might not be. What might the future hold, and how it will impact both the physical office environment and the new remote workforce? The Technology Task Force, a new group formed by the IIA of IL Board of Directors, is working to provide and evaluate solutions to help independent agencies advance the use of the most effective agency workflow technologies which enhance productivity, sales & marketing, service, and security. The Technology Task Force put together information on some of the best-used tools and solutions in the following categories: • Connecting with your Team and Clients/Client Meeting Resources • Tools for Ease of Doing Business • Getting the Most from Your Agency Management System • Additional Resources and Tools To view the full list, view the digital edition of this publication. Agents Council for Technology (ACT) Policy and Planning Resources Agents Council for Technology is an initiative of Big “I” and features the industry’s leading technology experts who have provided blueprints on disaster planning, cybersecurity, customer experience, and other emerging trends. Below is a sample of information available. View additional resources from ACT at www.independentagent. com/act. ADA & Accessibility: What Agencies Need to Know about Online Accessibility The Americans with Disabilities Act prohibits discrimination against individuals with disabilities in all areas of life. Just like a brick and mortar office, a business’s online presence should be accessible by anyone, no matter their circumstances. In addition to not being able to serve clients, there are numerous legal risks for not being compliant. Learn what steps to take to beW compliant. https://www.independentagent.com/act/pages/marketing/ internet/ada_faq.aspx Remote Work Best Practices and Sample Remote Work Policy and Agreement Although the world was turned upside down quickly and staff was sent home to work remotely, now is the time to

july 2020

review those practices and see if remote working fits in the future business plan for your employees and clients. Agencies also need to enact an agreement between agency leadership and the agency staff remote worker. This agreement covers aspects such as training and performance, computer equipment and support, monitoring, and security and cyber concerns. https://www.independentagent.com/act/pages/efficient/ workflow/remote%20work%20best%20practices.aspx

INSURANCE PRODUCTS & SERVICES Cyber Cover The way agencies conduct business is changing faster than ever before. Employees have recently been working remotely that have never done so in the past and both agencies and their clients are rotating their employees who come into the office as they return to the workplace. Does your current cyber policy provide coverage for your employees working from home? Many employees are using their own equipment at home to do work, while others have taken the office computers home.Check the language in your current cyber policy to make sure there is cyber coverage for the employees doing their job from their own devices and for your devices taken out of the office to their home. If you do not currently have this coverage, you can go to our website to get the coverage for your agency. You can also offer cyber coverage to your clients using Beazley or Coalition. E&O Coverage COVID-19 has changed the Agent’s E&O landscape. Some E&O carriers are no longer offering higher limits. This could open the potential for claims from clients that originally declined the higher limits that were offered. Some E&O carriers are only writing new business with higher deductibles, which apply to loss and expense. One E&O carrier has increased the minimum deductible to $5,000 per claim. We cannot predict what will happen over the next few weeks or months with some of the E&O carriers and some of your client’s carriers. With COVID-19 came changes to the way many of your clients are operating and IIA of IL has solutions available from In-Home Business Coverage to Premium Financing. IIA of IL members also have access to an Agency Operations and Procedures Template at a discounted rate and Free Legal advice to ensure your business practices are procedures are well-documented for remote employees. Go to www.iiaofil.org/Products-Services for more information. continued...

The IIA of IL has the tools and resources available to provide you with the solutions you need to build a strong plan for your agency. insight

AGENCY MARKETING Insurance agencies, no matter their size, need to be constantly building their customer base if they want to stay competitive and profitable. There are many ways for an agency to reach out and connect to new and existing clients, so it’s important to choose the correct marketing and advertising channels that will have the most impact for you and your agency. Though, it cannot stop there. You will need to focus on those efforts continuously. Consider this: according to J.D. Power’s 2020 U.S. Auto Insurance Study, insurance company websites have officially surpassed agents in terms of importance to client interaction and service. This is the first time in the study’s 21-year history that websites have surpassed agents. Whether your agency is well-established or just starting, you can always step up your marketing by looking into new ways to communicate and get your agency name in front of consumers. It is also important to stay top-of-mind to your current clients for referrals. With your membership to the IIA of IL, you have access to free marketing resources through Trusted Choice. Trusted Choice is designed to amplify your local marketing and highlight the value that independent insurance agents bring to consumers. As a Big “I” member you automatically receive access to materials that will benefit your business, provide you with consumer leads, and enhance your bottom line: • Branding Tools • Content to Share with Clients and on Social Media Platforms • Training Materials • Digital Review • Google Review • Marketing Reimbursement Marketing in a Pandemic Trusted Choice has created a guide to assist agencies with tips and strategy on how to navigate through a pandemic. The full guide encompasses a long-term strategy that can help an agency emerge with stronger customer relationships than ever before.

Contact the experienced team at IIA of IL with your insurance and business operations questions: Agency Operations Tom Ross Director of Membership Services tross@iiaofil.org – (217) 321-3003 Human Resources Jennifer Jacobs Director of Human Resources jjacobs@iiaofil.org – (217) 321-3013 IIA of IL Electronic Solutions Mark Kuchar Sr. Vice President/Chief Financial Officer mkuchar@iiaofil.org – (217) 321-3015 Data Analytics and Digital Tools for Your Agency Shannon Churchill Director of Information and Technology schurchill@iiaofil.org – (217) 321-3004 Insurance Products & Services Carol Wilson Director of Professional Liability and Insurance Products cwilson.indep12@insuremail.net (217) 321-3011

TrustedChoice.com – Consumer-Facing Lead Referral Website As a member of the IIA of IL, your agency is already listed on the TrustedChoice.com directory. Trusted Choice is marketing this website on behalf of all member independent insurance agencies. We recommend activating your free Member Plus profile. This will give consumers a deeper look into your agency and allows the TrustedChoice.com referral engine to recommend your agency. Without the Member Plus profile, your agency is only simply listed in the directory. It will not be recommended when a consumer searches TrustedChoice. com. It’s easy to active your Member Plus Profile. To get started, go to https://form.jotform.com/200757847092159.

Work Comp Changes/Statutory and Regulatory Compliance Brett Gerger Director of Education and Agency Resources bgerger@iiaofil.org – (217) 321-3006

For details on these and other topics, visit the IIA of IL website at: https://www.iiaofil.org/About-Us/TrustedChoice.

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

Read the full document at: https://tinyurl.com/IIA-MovingForward. 20

insight

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

july 2020

By Brett Gerger The COVID-19 situation impacted the work comp market in a number of ways. In April, the IIA of IL joined a lawsuit filed by the Illinois Manufacturers Association and the Illinois Retail Merchants Association that resulted in the Illinois Workers’ Compensation Commission (IWCC) withdrawing their emergency rule that declared rebuttable presumption for all essential employees as identified by Governor Pritzker. This rule moved the burden of proof from the employee to the employer. Under the previous law the employee would have to prove that they were injured at work and under the new rule the employer would have to prove that the employee did not get injured at work. After the lawsuit was filed, the judge issued a temporary injunction and the IWCC subsequently withdrew the rule. Employer Groups negotiated a bill that put the presumption in place. The agreed bill which was passed included the following provisions: 1. All essential workers can receive the rebuttable presumption. Labor’s original proposal would have allowed all workers (not just essential workers) to get benefits. 2. Employers can use the lowest standard (ordinary presumption) to rebut the rebuttable presumption. An employer simply has to show that they were following CDC or IDPH guidance and practices. Labor’s proposal sought to impose a “clear and convincing” standard that was included in the Governor’s rules. 3. The employer’s experience modification will not change due to COVID. 4. A home or residence is not the workplace except for home care workers. 5. The presumption ends of December 31, 2020. Labor originally sought no end date. 6. Employers receive a TTD offset for employees that were on paid leave or extended FMLA. 7. The employee has to have been exposed and contracted the virus. Simple exposure does not qualify. Labor’s proposal, and the Governor’s rules, did not even require an employee to show that they had contracted the virus. 8. Before June 15, an employee had to have a positive diagnosis or medical test; on or after June 16, a positive test is required. Again, the Governor’s rules and labor’s proposal did not require a positive diagnosis or test to get benefits.

july 2020

The National Council on Compensation Insurance (NCCI) The IIA of IL worked closely with the Illinois Department of Insurance (IDOI) and NCCI to address some of the following concerns regarding COVID-19 issues. 1. Experience Modifiers - COVID-19 claims will not impact experience modifiers negatively. NCCI filed the rule with the Department and it was later codified under the Workers’ Compensation legislation. 2. Statistical Reporting - Insurers will have to statistically report COVID-19 claims separately. Since statistical reporting lags so far behind it will take approximately 18 months to reflect this data. 3. Class Codes - NCCI developed and filed a new class code for workers being paid to stay at home and not work (0012). 4. Loss Runs - Neither the Department of Insurance nor NCCI determine the format of how insurers produce loss runs they merely require them to be produced. We encourage producers to work with their insurers to produce loss runs that include and separate COVID-19 claims in order to highlight differences. 5. Residual Market - NCCI has recently started requiring providing proof of 2 declinations before being able to place insurance in the residual market. The previous requirements did not require proof. For example: If I knew “Insurer A” would not insure a certain risk, I could put them down as a declination without having to go through the entire process and wasting everyone’s effort and time. Now it appears that producers will have to go through this process even though they know an insurer will decline the risk. This change is supposed to be reflected on NCCI’s website when you login to place business through the residual market. IIA of IL’s take on this is that NCCI and IDOI are bracing for a hard market due to new rebuttable presumption and are expecting a run on policies through the residual market. This could see a narrowing of choices and options in Illinois’ workers’ compensation market. For additional information, contact Brett Gerger, IIA of IL Director of Education and Agency Resources, at (217) 321-3006 or bgerger@iiaofil.org.

insight

FACING THE

DIGITAL REALITY

Rising to Customer EXPECTATIONS

By Lauren Williams

After the rise of COVID-19, many insurance companies were thrown into figuring out how to offer digital service to their customers remotely. Though some may have found it hard to adjust at first, agencies were ultimately able to discover how digitizing their processes can be beneficial for both their customers and for their business, bringing higher levels of customer satisfaction and removing many business costs. Many other industries have reaped the benefits of digital technologies for some time now. Though the traditional insurance model has been resistant to changes brought by the digital age, the last few months have shown that the insurance industry is not immune to the need for change. As technology continues to develop, customer expectations are rapidly changing. Incumbents in the insurance world should embrace these changes or they will certainly be met with challenges. In the future, companies that make the swift decision to embrace new and innovative forms of technology will flourish. Those that do not, however, will find it increasingly more difficult to remain competitive. Customer expectations have been changed by digital technology. They want simple, fast, transparent, and customizable service designed for the digital age. Insurance businesses now have the opportunity to meet their clients’ expectations and in turn improve their profits. Though, not all carriers will be able to sustain their profits when attempting to switch to digital processes. In order to be successful, companies will not be able to simply match what their competitors are doing. They will need to move decisively and get ahead of the curve. In the digital age, innovation is key. 22

insight

Luckily, many of today’s carriers are in a strong position to flourish. They have valuable expertise and the trust of their clients, two things that are essential for a profitable business. The question is therefore whether they are capable of rising to the challenge and welcoming the opportunities that digital technology offers. In order to do this, companies must understand how to make their business invaluable in the digital age. Here is how companies can face our new digital reality head-on. Harness digital technology to enhance customer experience. Companies will need to redesign their entire customer experience for the digital world. From the moment customers make a claim to the moment of their reimbursement, they should be met with a quick and seamless digital process that places their needs first. Using data and analytics, a digital process for making claims can be used to anticipate customer demands, shorten waiting times and make for a more personalized experience, all while reducing cost and complexity for agents. In terms of customer satisfaction, the success of new digital tools lies in the experience that they enable. Customers want a quick and transparent approach. They don’t want to spend a lot of time talking about sales and service transactions on the phone if it isn’t necessary. Their time is valuable, and so is yours. Offering an easier, but still personal, way of completing basic processes enhances their experience and helps make your operations more efficient. july 2020

The choice of which aspects of customer experience to tackle first will be different for every organization. Whatever your company chooses to redesign first will set the stage for all future attempts at implementing digital technology within your business. Choose technology that will gain customers’ enthusiasm and support for more investment. Ask your clients what changes they might like to see implemented. Look for processes from which you both can benefit. It is important for you both to be involved in the transformation in order to maximize satisfaction on both ends. Retain customers by offering superior products and services. Insurers are met with the choice to either let technology disrupt their business or to become leaders in the industry by introducing new products, services, and business models. The companies that succeed in the future will be ones that make big bets on innovative products and digital processes. New risks are emerging in the digital age and insurers have the opportunity to write cover for them. Cybercrimes, for example, are rapidly multiplying and yet have barely been touched by the insurance industry. Though protection against them is hard to navigate, innovative companies could invest the time and effort into figuring out how to offer coverage for cybercrimes, placing themselves at the forefront of the insurance market. Opportunities for new coverage abound in the sharing economy, as well. Many gaps in coverage exist for those who are working for companies like Uber and DoorDash or renting their home on sites like Airbnb. Companies who can offer better coverage for these clients will certainly be in high demand. Offering policies such as these will show that your company is in touch with clients’ needs in the digital world. Another way of innovating is to embrace new approaches to underwriting such as peer-to-peer insurance, purchased by groups of people with similar coverage needs, or personalized pricing based on a specific individual’s data such as driving habits. These strategies can be used to gain new customers and provide more options for current clientele. Many start-up companies are embracing these approaches. It would be wise for incumbents to do so as well. Successful insurers have always thrived because of service they provide. Their ability to analyze data and therefore aptly price and underwrite policies is invaluable. Since they are the only ones who have this expertise, insurance agents always have, and always will, provide great service, no matter what technology is involved. The influx of data that digital technology grants access to will only help agents get to know their customers better, allowing them to price and underwrite more accurately and to offer clients products tailored to them in a timely manner. Agents can now be notified much quicker of changes in their clients’ lives and therefore can proactively suggest new coverage to meet client needs.

insurers the ability to analyze that data. Seeing a specific driver’s data and habits would help insurance companies more accurately mitigate the risk of insuring specific drivers and therefore offer their clients the lowest premiums possible. Innovation is necessary to overcome the threats of digital disruption. Companies need to adapt to coming up with their own ideas and figuring out how to integrate them with their current processes. It is important to keep researching and brainstorming. Knowing what new risks are out there will help you offer customers the best protection possible. Make decisions and changes quickly. Companies will not have time to hesitate; those who adapt the fastest will garner the biggest share of profit. Plan your digital strategy by examining where and why your company currently makes money, look at how that might be changed by technology, and experiment pathways to success. Remember, strategies will need to be reviewed frequently as technology continues to evolve in order to stay ahead of competitors and adapt to new consumer behaviors. You must become comfortable with experimentation, even if it means ideas sometimes fail. Feedback from customers will be invaluable as you implement new changes. Customers know what they want and what works for them. Obtaining frequent feedback will ensure your company does not veer off course. Transformation is not a science. It is important not to view these changes as simply an implementation of digital technology, but as a fundamental rethinking of how your business operates. Like with any change, challenges and conflicts will arise, but as long as your company continues to learn and grow, you will be met with success along the way. Conclusion Though insurance companies may fear that making these changes might undermine the health of their current business model, that is no reason to maintain the status quo. Building a digital culture for your company does not mean doing away with the skills and values that have sustained it. Your clients trust your business for a reason. Maintain that trust by meeting their expectations. Insurance has always been about providing satisfying service. That will always remain the same, no matter what technological developments arise in the future. This article is a summary of the White Paper entitled “Digital disruption in insurance:Cutting through the noise” by McKinsey. The full White Paper can be viewed at https://tinyurl.com/McKinseyWhitePaper2020. Lauren Williams is a 2020 graduate of Westminster College in Fulton, Missouri, majoring in English. She is a freelance writer for Insight magazine.

Auto insurance companies, for example, are in position to gain access to more customer data through technology such as forward collision avoidance and blind-spot assist. The fitting of connected devices in cars would give auto

july 2020

insight

Self-Deceptions That

Hold Us Back

By John Graham

As human beings, we’re experts at deceiving ourselves, all because it’s so easy for us to think we know more than we do. As a result, we do less than our best work, miss out on opportunities, and mess up our decisions. To be sure, self-deception is one way we keep ourselves safe. We use it to fend off enemies that would expose us to troublesome situations. No one escapes; we all do it. With self-deception it’s easy to believe the little voice inside us is right. Although we may picture ourselves as rational human beings who process information objectively, psychologists Karen Reivich, PH.D. and Andrew Shattè, Ph.D. tell us “we are downright shoddy scientists. We collect incomplete data, we use shortcuts to process it that lead to biased appraisals, and we make errors in interpretation that often support our favored hypothesis.” In other words, we construe facts until we feel good. In short, we screw up! Here are five self-deceptions that hold us back:

Self-Deception #1

“Others are better equipped to handle challenges than I am.” It doesn’t take much thought for most of us to conclude that others are better prepared to face personal or work life issues. Yet, the chances are they see us the same way we view them! As it turns out, what we’re doing is measuring ourselves against the wrong standard. It’s not us versus them (except in our mind) since the actual competition is with ourselves. We spend time building “this is why I can’t” cases against ourselves, rather than realistically assessing our capabilities against our past performance. Simply put, we don’t give ourselves enough credit.

Self-Deception #2

“I need a little space to get everything all set.” There are those who view themselves as perfectionists. But wait a minute, it could be something else. “I don’t want to pull the trigger too soon. I would rather wait a little longer.” Some of the seemingly most competent people suffer from this self-deception.

insight

It’s easy to set the bar so high we never get ready. If we get close, we keep raising it higher. It’s easy to convince ourselves that anything less than flawless is failure. “I need to go over the proposal one more time to be sure it’s right. I’ll have it to you by tomorrow.” As we all know, tomorrow never comes.

Self-Deception #3

“I’m afraid something will go wrong and I will fail.” Few of us escape the fear of failure’s grip at one time or another. Which is why there is so much advice available on how to loosen fear’s hold on us. But when it comes right down to it, trying to get over the fear of failure isn’t the point. When I was 11, three of us hiked up to a police shooting range. The goal was to dig out the lead buried in the hillside behind the targets. Hauling our bounty home, we lit a Coleman gasoline camp stove in our garage and melted the lead in a Hills Bros coffee can. To see what might happen, one boy poured gasoline in the can. Instantly flames shot up, along with hot, liquid lead. Although we were scared stiff, miraculously none of us was hurt! Fear can be an effective survival technique is the point of the story. Ignore it and you can get hurt. But you can also use fear to your advantage by asking, “What could possibly happen if I move forward with this project?” Lay it all out on the table, evaluate it thoroughly, and then make your decision.

Self-Deception #4

“I may not meet the requirements, but I know I can do it.” As a taxi driver said about Mexico City traffic, “If you don’t try, you’ll never make it.” Such daring describes the “go get‘em attitude” of many successful people. But the results don’t always come out that way. We can also wind up in trouble. Perhaps this may be why Nobel Laurette Daniel Kahneman ended a Ted Talk this way: “Don’t trust yourself too much. Don’t trust in ideas and beliefs just because you can’t imagine another alternative to them. Overconfidence is really the enemy of good thinking, and I wish that humility about our beliefs could spread.”

july 2020

Self-Deception #5

“I’m good at what I do so I’m not worried.” I’ve wondered why Hewlett-Packard runs endless ads for its printers at near giveaway prices. Declining printer supply sales may be the answer. As a recent Bloomberg Businessweek article points out, HP’s 1989 annual report stated, “New products are the lifeblood of our company.” But, as the BB reporters note, “Today old products are arguably the lifeblood of the company.” Marketing printers results in a continuing stream of printer supply sales. Yet, the article notes, sales of supplies declined for the last three quarters. Companies, as well as individuals, can suffer from self-deception.

John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of “Magnet Marketing,” and publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@grahamcomm.com, 617-774-9759 or johnrgraham.com.

No one lives or works in a “Self-Delusion-Free Zone”. We are all victims of self- delusions. We’re the prisoners of our own self-serving thoughts, which can be deceptively calming and protecting us from danger. We’re eager to believe the little voice, “Everything’s going to be OK.” For example, “Others may come down with the Covid-19, but I’ll escape it.” Or, “Others may be laid off, but I’m needed.” We are suckers for selfies of our own reality. There’s one self-deception that ties all five together, one that can get us in deep trouble. professionally and personally. It’s this: there’s so much we think we know that we don’t know. The future may well depend on admitting there are glaring gaps in our knowledge, when being tough on ourselves can make a difference.

There’s so much we think we know that we don’t know.

EVERY RISK IS AN OPPORTUNITY COMMERCIAL TRANSPORTATION | BROKERAGE | MARINE PROPERTY & CASUALTY | SURETY | PERSONAL LINES

(800) 666-5692 | JMWILSON.COM july 2020

JM Wilson 100th Insurance Insight CMYK.indd 1

4/3/20 insight8:17 AM 25

INSIGHT | associate news Thank you to our Associate Members.

Diamond Level Members

Platinum Level

Progressive Surplus Line Association of Illinois

Gold Level AAA Insurance Arlington/Roe

Silver Level Grinnell Mutual Reinsurance Company Imperial PFS IMT Insurance

Nationwide West Bend Mutual Insurance Co.

Bronze Level A. J. Wayne & Associates AFCO Credit Corporation AMERISAFE AmWINS Brokerage of the Midwest, LLC Auto-Owners Insurance Co. Berkshire Hathaway Guard Insurance Companies Columbia Insurance Group Continental Western Group Donald Gaddis Company, Inc. Donegal Insurance Group Encompass Insurance Encova Insurance Erie Insurance Group Foremost Insurance Group Forreston Mutual Insurance Company Frankenmuth Insurance Grange Insurance Illinois Mine Subsidence Insurance Fund Illinois Public Risk Fund Indiana Farmers Insurance Insurance Program Managers Group J C Restoration J M Wilson Kemper Keystone Insurance Group, Inc. 26

insight

Liberty Mutual/Safeco Insurance Madison Mutual Insurance Company MarshBerry & Company Maximum Independent Brokerage, LLC Mercury Insurance Group MetLife Auto & Home Midwest Insurance Company miEdge PEOPLE Previsor Insurance ProAg Management Inc RT Specialty - Naperville Selective Insurance Company of America ServiceMaster DSI Society Insurance Specialty Risk of America Transcom General Agency Travelers UIG - The Agent Agency United Fire Group Universal Property & Casualty Utica National Insurance Group W. A. Schickedanz Agency, Inc./Interstate Risk Placement Western National Insurance Westfield july 2020

associate news | INSIGHT Swiss Re Launches Parametric Hail Insurance Cover

Swiss Re Corporate Solutions has announced the launch of a parametric hail insurance cover. Known as HAIL, the new product is designed to protect companies in the United States from the financial impact of a significant hail event, such as physical damage, lost revenue due to business interruption, or significant retentions in traditional property policies. CoreLogic, a provider of hail data in the United States, will serve as the data provider. SRCS will rely on CoreLogic hail-size metrics to determine whether a parametric policy is triggered. Similar to other parametric solutions offered by SRCS, HAIL combines the customer location data with a payout table that outlines policy amounts for reported hail size at specified locations during an event. When a customer has hail damage and the hail size calls for a payout under the policy, there is no need to wait for a loss evaluation. The payment is released soon thereafter. The customer can use the money for any financial loss associated with the event. HAIL is currently available in 11 states across the U.S.: Colorado, Illinois, Indiana, Iowa, Kansas, Minnesota, Montana, Nebraska, Oklahoma, South Dakota and Texas.

Encova Insurance Appoints Mike Keller to Board of Directors

Encova Insurance has announced the appointment of Mike Keller to their board of directors, effective Aug. 18, 2020. Mike brings decades of executive leadership, technology and insurance expertise to their board based on his experience at Nationwide, Bank One and IBM. “Mike’s experience is unparalleled. He brings expertise and insight gleaned from leading high performing IT departments at three premier companies that will add to the strength of our board,” Board of Directors Executive Chairman Greg Burton said. “We are incredibly fortunate to welcome him to the company’s board of directors.” “Having led the IT department of a well-respected national insurance carrier before his recent retirement, Mike’s vision, strategic guidance and wisdom of integrating multiple systems will be invaluable as Encova continues its focus on technology and the resulting customer experience being created for our independent agency partners and policyholders,” Encova President and CEO TJ Obrokta Jr. said. “I am very excited to be joining the board of directors,” Mike Keller said. “Encova is a highly successful mutual insurance company with a talented board and leadership team, a deep commitment to their agents and policyholders, a focus on leveraging leading edge technologies, and strong midwestern values.”

IMT Insurance Matches Donations to More than 70 Local Organizations Supported by Independent Agents

IMT Insurance, a leading provider of personal and commercial insurance products in the Midwest, recently collaborated with its Independent Insurance Agents to support COVID-19 relief efforts in their communities. Agents made donations, across six states, ranging from $250 - $1,000. Through IMT’s Month of Giving program, Agent donations were matched by IMT, dollar-for-dollar, totaling more than $37,000. IMT hosted the Month of Giving program in reaction to the immediate need for relief. Right now, our neighbors need more help than ever. IMT Agents are generous, and the Month of Giving donation match supports a shared commitment to supporting local businesses, food banks, non-profits, and programs aimed to help relieve the stress thrust upon communities by the COVID-19 pandemic. For a full list of participating Agents and community recipients, go to https://tinyurl.com/IMTGiving2020

july 2020

insight

AmGUARD • EastGUARD • NorGUARD • WestGUARD

We’re here to help Agents, during this uncertain time, let us help you write new and renewal business. As part of the Berkshire Hathaway group, we’re financially strong and ready to help. WE OFFER: Payment flexibility Responsive claims handling Quality customer service

Commercial & Personal Lines • Apply to be an agent at www.guard.com/apply/

WE’RE LIKE BUBBLEWRAP FOR YOUR BUSINESS. BUSINESS INSURANCE THAT’S DESIGNED TO BE WORRY FREE A company is a business owner’s pride and joy. Help maximize coverage and protect it with business insurance from the Worry Free company — IMT Insurance. Learn how you can represent IMT Insurance at imtins.com/contact.

AUTO | HOME | BUSINESS

iia of il news | INSIGHT

Education Classes View the latest information at www.iiaofil.org/education.

july

7 7 8 9 14 14 14 14 15 15 15 16 20 21 22 22 23 27 28 28 july 2020

CISR - Commercial Casualty 2 Webinar Pre-Licensing - Life & Health Virtual Class E&O Roadmap to Identity Theft Webinar Pre-Licensing - Property & Casualty Virtual Class CISR - Insuring Personal Residential Property Webinar E&O Roadmap To Homeowners Endorsements Webinar E&O Roadmap To Cyber & Privacy Insurance Part 1 Webinar Agents E&O Webinar Ethics and E&O Webinar E&O Roadmap To Policy Analysis Webinar CIC - Ruble Webinar E&O: Roadmap to Homeowners Insurance Webinar Pre-Licensing - Property & Casualty Virtual Class CISR - Personal Lines Miscellaneous Webinar CISR - Elements of Risk Management Webinar E&O: Commercial Liability Coverage Gaps Webinar Ethics - Walking a Straight Line Webinar E&O Roadmap to Personal Auto & Umbrella Webinar CISR - Agency Operations Webinar E&O Risk Management Webinar

august

4 6 11 11 12 13 19 19 20 20 24 24 25 25 25 26 26 26 27

Pre-Licensing - Property & Casualty Rolling Meadows Agents E&O Webinar E&O Roadmap To Homeowners Endorsements Webinar E&O Roadmap To Cyber & Privacy Insurance Webinar CISR - Insuring Commercial Property Webinar E&O: Commercial Property Coverage Gaps Webinar Culture, Ethics, and E&O Webinar E&O Roadmap To Policy Analysis Webinar Ethical Dilemmas Webinar E&O Roadmap to Identity Theft Webinar E&O Roadmap to Personal Auto & Umbrella Webinar Pre-Licensing - Life & Health Springfield CISR - Elements of Risk Management Rolling Meadows CISR - Commercial Casualty 1 Webinar E&O: Roadmap to Personal Auto & Umbrella Webinar E&O Risk Management Webinar CIC - Insurance Company Operations Webinar Pre-Licensing - Property & Casualty Springfield CISR-Insuring Personal Auto Exposures Webinar

New Members

member agencies

(*) LGUC, LLC - Orland Park Next Step Group - Schaumburg ThreeQuote Insurance Agency, Inc. - Geneva insight

INSIGHT | classifieds for the insurance professional by the insurance professional

AGENTS, AGENCIES, BOOKS OF BUSINESS, PRODUCERS AND ACCOUNT MANAGERS WANTED.

32. Searching for something different or a better deal? Tired of the cookie-cutter option, the one-size fits all approach in making a deal? Looking for something better suited to your immediate and future plans? Share your story with Olson. We will help put your plans into action. You will find us nimble, direct, and great listeners. The Olson promise is to customize each deal. We are all about collaboration and being true partners. The deal must work for you before it can ever work for us. Whether for yourself, your agency, your staff or location - run your story by us. Today, tomorrow, or further down the road Olson is always ready to strike a deal and craft a winning plan with you. Our relationship manger, Jim Sandberg and our founderâ&#x20AC;&#x2122;s son, Jeff, hope to hear from you, soon!

Jim Sandberg Olson Insurance Group/Norman G. Olson Company (708) 986-1115 Jim.S@Olson-Ins.com JeffOlson@Olson-Ins.com

FIELD MARKETING REPRESENTATIVE/ TERRITORY MANAGER POSITION AVAILABLE

24. Goodville Mutual has an opening for a new Field Marketing Representative in its Illinois/ Indiana territory. The role will develop and nurture existing independent agency relationships, along with prospecting for new agency appointments. They will promote sales and marketing strategies to attain goals while supporting and complementing the efforts of other departments within the company. A work from home position, which requires managing a territory with daily travel. Come and join a productive, positive work environment with a supportive team of talented employees at Goodville Mutual!

For more details and to apply go to either our LinkedIn jobs page or Goodville Mutual Careers page on our website: www.goodville.com/aboutus/jobs/ or LinkedIn: https://bit.ly/3hIR2o2.

COMMERCIAL LINES ACCOUNT MANAGER POSITION AVAILABLE

25. The Commercial Lines Account Manager reports to the AVP of Commercial Lines. This position is responsible for assisting clients and sales executives, in all aspects of customer service and marketing by managing an assigned book of business. A full job description is availabe upon request. Dansig Inc. is an Equal Opportunity Employer. Contact:

OPPORTUNITIES/SPACE AVAILABLE/RETAIN OWNERSHIP

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

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

AGENCY WANTED

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

Visit www.ciagonline.com for contact information.

AGENCY/AGENTS/PRODUCERS WANTED

02. Forest Park/Oak Park agency for over 60 years, will meet your needs by providing space, markets, marketing & sales support, automation, merging with or purchasing your agency. Perpetuation/ Succession Plans, BuySell Agreements also available. We have experienced, educated and dedicated staff for you and your clients. Have access to our numerous companies, office services and many other resources. Retain ownership in your book with contingency. Please look closely at us- we are an agency you want to do business with! Weâ&#x20AC;&#x2122;ve done it before, we know how- we make it easy! Visit our website at forestagency.com/agents.html, or call for a confidential discussion and a list of Agency benefits. Dan Browne will provide an agency evaluation/appraisal at little cost to you. Please call:

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

Tina Suzewitz Dansig Insurance Risk Advisors (217) 451-9101 tinas@dansig.com

insight

july 2020

CURT • Knows a skid steer from a black angus • Solid Midwest work ethic • Two decades of insurance experience

An original farm boy

Meet Curt, one of our Farm-Ag experts. He and others on his team were farm kids themselves, so they’ve got firsthand, practical knowledge about a farmer’s insurance needs. It’s the bornand-raised kind of expertise we look for in a team. And they’re supported by our caring claims group so your clients can get back to the work at hand, just like they’ve done for generations.

SECURA Farm-Ag. It’s how you grow. secura.net/farm-ag july 2020

Commercial | Personal | Farm-Ag | Specialty

insight

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