e-Insight June 2018 by Big I Illinois

Acuity Loves You! PROU D TO PARTNER WITH THE BEST I N DEPEN DEN T AG ENTS IN THE BUSINESS!

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

the journal of trusted choice independent insurance agents of illinois

CONTENTS

June 2018

CONVO 2018 - Golf is BACK

Ten Motivations that Move Customers to Buy By John Graham

Sales Success Lessons I Learned from my Mom

22 22

By John Chapin

How to Hire and Develop Effective Sales People By Caliper

Common Hiring Mistakes By Caliper IICF Women in Insurance Conference Series

26 19 e-Insight

28 Young Agents

7 30 31 38

11 12 35 36 37

IIA of Illinois News Classifieds

By Jacquelyn Connelly

In This Issue

Associate News

How the Industry is Building More Women Leaders

Regular Features President’s Message

Industry Government Staff Profile People in the News Industry News

INSIGHT

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

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

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

ADVERTISERS

Board of Directors Executive Committee

Chairman of the Board | Rick Sutton (309) 692-8544 | ricks@was-irp.com

ABRC

President | Ryan Hite (309) 688-7316 | ryan.hite@eaglerockins.com

ACUITY

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

AMTRUST

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

APPLIED UNDERWRITERS

Secretary/Treasurer | Bennie Jones (312) 960-6200 | bjones@rmsoa.com

ARLINGTON/ROE

IIABA State National Director Gregory A. Sandrock, CIC, AFIS (815) 438-3923 | sanins@essex1.com

BERKSHIRE HATHAWAY GUARD INS. GROUP

FCCI

Regional Directors

GRINNELL MUTUAL

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

IPMG

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

IPRF

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

KEYSTONE

Region 4 | Michael Gonet (815) 339-2411 | mike_gonet@hotmail.com

THE IMT GROUP

Region 5 | Patrick Taphorn, CIC, CSRM (309) 347-2177 | ptaphorn@unland.com

TRANSCOM GENERAL

Region 6 | Rob Messer (815) 459-3300 | rmesser@marketfinancialgrp.com

WA SCHICKEDANZ/INTERSTATE RISK PLACEMENT

Region 7 | Michael-Charles Hilson (708) 333-3378 | mhilson@gbgins.com

WEST BEND MUTUAL

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

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

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PRESIDENT'S MESSAGE

Ryan Hite - IIA of Illinois President - (309) 688-7316 - ryan.hite@eaglerockins.com

Summer Time! For our family, when school is over and the temperature rises, we basically become a taxi service to our children’s activities. Ballet, tap dancing, baseball, golf, and the pool! There’s never a shortage of things to do and places to go. It’s a good thing I’ve been trained well by our industry. We all know that there’s never a predictable day and every person you meet has their own unique set of personality and problems to solve. Thankfully, in the office we have kept the crying to a minimum.

One of the bright spots that has recently helped me focus and organize my time was the EDGE Conference that was held last month in Naperville. I had the privilege to attend several of the sessions and was very impressed with the content and the facility that our Young Agents selected. Every year gets better and it’s beginning to rival our annual convention (CONVO) with the quality of speakers and strategic mini trade show. I came away this year with a better way to set my #1 goal and keep it top of mind. See highlights on pages 28-29. There are several events coming up in every region between now and CONVO (October 2-4). For help finding these go to www.iiaofil.org/Events, ask your Regional Director, or contact anyone on the IIA of IL staff. I would also encourage any member to attend a Board of Directors meeting. They are open to all members and the next one on the calendar is August 9 in Peoria. It’s a great way to get introduced to some of the best agents in our State and find out first-hand what your association is doing for you and for everyone in our industry. Lastly, thank you to those of you that now serve and have served on our Board. We all continue to benefit from your leadership, expertise, and experience. Completely grateful,

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INDUSTRY

Illinois’ Total Cost per Workers’ Compensation Claim Grew One to Three Percent Annually in Recent Years The average total cost per workers’ compensation claim in Illinois grew annually anywhere from 1 to 3 percent since 2012, according to a recent study by the Workers Compensation Research Institute (WCRI). “Due to small to moderate changes in medical payments per claim, indemnity benefits per claim, and benefit delivery expenses per claim, the average total cost per workers’ compensation claim in Illinois grew annually about 1 to 3 percent after 2012,” said Ramona Tanabe, WCRI’s executive vice president and counsel. The study, CompScope™ Benchmarks for Illinois, 18th Edition, compared Illinois with workers’ compensation systems in 17 other states and found the average total cost per workers’ compensation claim in Illinois remained higher than typical when compared with the other WCRI CompScope™ study states. WCRI’s study evaluated Illinois claims data through March 31, 2017, for injury dates between 2011 and 2016, and in some cases used a longer time frame to supply historical context for key metrics and to monitor changes in Illinois’ workers’ compensation system performance. “Illinois’ results were higher than other study states on many metrics related to both medical payments and indemnity benefits. Illinois’ medical payments per workers’ compensation claim were driven by utilization of medical services and prices paid for these services while indemnity benefits per workers’ compensation claim reflected system features and processes related to permanent partial disability benefits and duration of temporary disability,” said Tanabe.

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The following were among the study’s other findings: • Indemnity benefits were the largest component of total costs per workers’ compensation claim in Illinois, accounting for 45 percent of the total payments for 2014/2017, a time frame that refers to claims with injuries dating back to October 1, 2013, with experience through March 31, 2017. • One important component of indemnity benefits is the duration of temporary disability benefits. In 2014 (evaluated as of 2017), Illinois had a longer duration of temporary disability benefits than most other WCRI CompScope™ study states. • At 52 percent, Illinois had the highest rate of worker attorney involvement in workers’ compensation claims among all the WCRI CompScope™ study states for 2014/2017 claims. For more information about this study or to purchase a copy, visit https://www.wcrinet.org/reports/compscopebenchmarks-for-illinois-18th-edition. WCRI is recognized as a leader in providing high-quality, objective information about public policy issues involving workers’ compensation systems. The Workers Compensation Research Institute (WCRI) is an independent, not-for-profit research organization based in Cambridge, MA. Organized in 1983, the Institute does not take positions on the issues it researches; rather, it provides information obtained through studies and data collection efforts, which conform to recognized scientific methods. Objectivity is further ensured through rigorous, unbiased peer review procedures. WCRI’s diverse membership includes employers; insurers; governmental entities; managed care companies; health care providers; insurance regulators; state labor organizations; and state administrative agencies in the U.S., Canada, Australia, and New Zealand.

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government

Insurance Industry Legislative Update May 23, 2018

With one week left until the May 31st scheduled adjournment, the Governor and legislative leaders continue to work on a state spending plan for Fiscal Year 2019, which begins July 1st. There is certainly some optimism that the General Assembly reach an agreement on revenue and spending as no one wants to have a repeat of last year and there are some additional issues that have created an atmosphere where everyone would like to move on to the next big thing, the fall elections. For the insurance industry, it remains relatively quiet but work comp rate regulation, SB 2863-Raoul, remains under active discussion and a new issue, personal car facilitation transaction regulation, has just been dropped into the legislature - think Airbnb for your own personal car. An amendment has been filed to SB 2641-Munoz, regulating companies like San Francisco-based Turo, which facilitates personal car rental transactions. It is not clear if this issue will pass by the end of session as there are many questions from stakeholders, including the insurance industry from a liability standpoint. To learn more about Turo, go to https:// turo.com/.

By Phil Lackman

agency, the rewrite of the PFTA regulation was stalled for several weeks. We spoke with the Department staff recently and it is now under final review. We expect the changes will be sent to the Joint Committee on Administrative Rules (JCAR) in the near future. American Family vs Walter Krop - This litigation, which is currently before the State Supreme Court, imperils two very important Statutory protections for insurance producers passed in 1996-97; the Insurance Placement Liability Act and the two-year statute of limitations on professional liability claims against insurance producers. IIA of Illinois has filed an Amicus Brief in the case. Oral arguments were held on May 22nd. Our counsel, Pretzel & Stouffer, is following the case closely. Click here for more background and here for a video of the oral arguments. Unfortunately, since IIA of Illinois was not a party to the litigation, our only recourse was to file an Amicus Brief. We are disappointed in both the direction of the appeal and the competency of counsel utilized by American Family in this most important case. The State Supreme Court will issue a verdict this fall.

Also, health insurers had been split over the issue of Short Term Limited Duration individual health insurance policies in light of the Trump administration’s proposal to expand them from 91 days to a year. An amendment was filed to keep Illinois at the 91-day limit but that was opposed by several health insurers active in the short-term market who favored the Trump position. Other health insurers opposed the expansion to a year. Our Agent Broker Coalition offered NAHU’s well thought-out position of six months. That language was adopted this week onto HB 2624-Fine and was supported by all the major health insurers in Illinois. HB 2624 passed out of committee unanimously and is expected to reach the Governor’s desk. Finally, our Agent Broker Coalition initiative, SB 2513-Hastings, passed both chambers and will be sent to the Governor for his consideration shortly.

Property & Casualty

Agent & Broker

HB 5160 - Lang Creates the Domestic Stock Company Division Article in the Code. Provides that a domestic stock company may divide into 2 or more resulting companies pursuant to a plan of division. Contains provisions concerning the contents of the plan of division, approval of the plan of division by the Director of Insurance, effects of a division, certificates of division, liabilities, and shareholder rights. This legislation was introduced on behalf of several domestic stock companies and was supported by the Department. It did not pass the House before the deadline, but may be resurrected.

SB 2513 - Hastings/Burke Our Agent Broker Coalition initiative which creates an Education Advisory Council within the Department of Insurance and allows webinars as an acceptable method for Ethics CE, has passed both chambers and will be sent to the Governor shortly. SB 2439 - Bennett Eliminates the current requirement that professional licenses, including a producer’s license, be suspended when an individual defaults on a student loan. This bill is part of a larger effort in the General Assembly to remove certain existing sanctions on professional licensure categories. The bill has passed the Senate and is on third reading in the House. SB 3451 - Munoz The Department’s Innovation Act legislation. The bill did not advance this year but the Director has created an Innovation Division within the Department. Premium Fund Trust Account Regulation - Due to Deputy Director Brett Gerger taking a new position with another 12

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SB 2863 - Raoul Work Comp Rate Regulation, HB 4595 - Fine State Run Work Comp Company. Identical to last year’s bills, both have passed the originating chamber on a partisan roll call. SB 2863 is on third reading in the House and discussions are taking place to see if some type of “rate review” agreement, short of rate regulation, is possible. HB 4595-Fine, remains in the Senate Judiciary Committee. These are absolutely two bad concepts and fall under the description of fake reform and would have a negative impact on Illinois’ work comp system and continue to send the wrong message to employers in Illinois. If they do reach the Governor’s desk we anticipate the Governor will veto them like he did last year. We will request that action at the appropriate time.

HB 1336 - Lang Prohibits an insurer that sells a policy of automobile insurance from increasing the policy premium, canceling the policy, or refusing to renew the policy solely because the insured or another person who customarily operates an automobile covered by the policy has had an accident while operating a motor vehicle in response to an emergency when the insured was responding to a call to duty as a volunteer EMS provider. Provides that the prohibition also applies to all personal umbrella policies. Passed the House.

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SB 2953 - Cullerton,Tom Amends the Illinois Insurance Code and the Automotive Collision Repair Act. Provides that the use of non-original equipment manufacturer aftermarket crash parts may not be included in an estimate for repair of a motor vehicle unless the customer is advised of that fact in writing. Requires the use of original equipment manufacturer specifications. SB 2953 is on second reading in the Senate. HB 4472 - Stewart/Curran Provides that no person shall operate a motor vehicle registered in another state upon the highways of this State unless the vehicle is covered by a liability insurance policy issued by the state where the vehicle is registered. Provides that the operator of the vehicle shall carry within the vehicle evidence of the insurance. Passed the House.

Life & Investments HB 4293 - Welch, SB 3189 - Biss Identical to legislation introduced last year these bills would impose a 20% tax on partnerships and S corporations engaged in investment services. Our Agent/Broker Coalition joined with a broader coalition in opposition to the bills. Neither bill was called for a hearing and there is no indication the sponsors plan to move them for the remainder of the session. SB 2437 - Weaver/Anderson Amends the Illinois Marriage and Dissolution of Marriage Act. Provides that if a judgment of dissolution of marriage is entered after an insured has designated the insured’s spouse as a beneficiary under a life insurance policy in force at the time of entry, the designation of the insured’s former spouse as beneficiary is not effective unless: (1) the judgment designates the insured’s former spouse as the beneficiary; (2) the insured redesignates the former spouse as the beneficiary after entry of the judgment; or (3) the former spouse is designated to receive the proceeds in trust for, on behalf of, or for the benefit of a child or a dependent of either former spouse. Provides that if a designation is not effective, the proceeds of the policy are payable to the named alternative beneficiary or, if there is not a named alternative beneficiary, to the estate of the insured. Provides that an insurer that pays the proceeds of a life insurance policy to the beneficiary under a designation that is not effective is liable for payment of the proceeds to the entitled person or estate only if: (A) before payment of the proceeds to the designated beneficiary, the insurer receives written notice at the home office of the insurer from an interested person that the designation is not effective; and (B) the insurer has not filed an interpleader. The bill has passed the Senate and has been amended in the House to exempt policies provided under ERISA plans.

Health & Benefits The focus of significant activity this session are several bills impacting individual and group health insurance plans. Many of the bills are part of the democratic majorities in both chambers reacting to the Trump administration’s efforts to modify the ACA. In addition, coverage for mental/ emotional conditions continues to receive considerable attention although it is not clear at this point what final form those mandates will take. june 2018

HB 68 - Lang, HB 5464 - Feigenholtz Would make significant expansion of coverage for mental emotional disorders and provides for enhanced enforcement by the Department of Insurance and the Attorney General’s office. The bills continue to be the subject of negotiations between health insurers, employers, providers and state agencies. HB 1337 - Fine Short-Term Health Insurance Policies. Introduced in reaction to the Trump administrations proposed changes, the original amendment would keep the current 91-day limitation for short term plans under the ACA in place in Illinois. The 2nd amendment, authorizing six-month short-term policies was adopted. This represents the NAHU position on temporary policies. SB 2444 - Haine/DeLuca Amends the Illinois Insurance Code in an Article concerning accident and health insurance. Provides that “policy of individual or group accident and health insurance” does not include any coverage or policy that provides an excepted benefit, as defined in the federal Public Health Service Act. The effect of the bill is to clarify that mandated benefits do not apply to short-term travel, disability income, long-term care, accident only, or limited or specified disease policies. The bill has passed the Senate and is awaiting a hearing in the House. HB 4165 - Harris Would prohibit the Rauner administration from applying for an ACA waiver from HHS unless both chambers of the General Assembly approve by resolution. The bill failed on a third reading roll call but may be called for another vote prior to the end of session. HB 4166 - Harris The 1% tax on all health claims was not moved this session. HB 4146 - Fine Amends the Managed Care Reform and Patient Rights Act. In provisions concerning transition of services, provides that the health care plan shall not modify an enrollee’s coverage of a drug during the plan year if the drug has been previously approved for coverage by the plan for a medical condition, the plan’s prescribing provider continues to prescribe the drug for the medical condition, and the patient continues to be an enrollee of the health care plan. Provides specific prohibited modifications of drug coverage in the health plan. Provides that the provisions do not prohibit a health care plan from requiring a pharmacist to effect generic substitutions of prescription drugs. Provides that the provisions do not prohibit the addition of prescription drugs to a health care plan’s list of covered drugs during the coverage year. The bill has passed the House and a tentative compromise had been reached in the Senate.

Mandates The following bills would mandate coverage or expand existing coverage on individual and group health plans. All are under active consideration: HB 3375-Lang & SB458-Manar, Telehealth Services, HB 2617-Gabel Fertility Preservation Services, HB 3223-Williams Multiple Sclerosis, HB 4821-Fine, Cancer Drugs, HB 4516-Fine Hearing Aids. ** Look for an end of session report in the next issue. Phil Lackman is CEO of IIA of IL. He can be reached at plackman@iiaofil.org or (217) 321-3005. insight

government

SB 1286 - Mulroe/Unes Makes several updates and changes to Illinois’ Captive Insurance Article of the Insurance Code. The bill passed the Senate last year and is in the House Rules Committee.

TEN MOTIVATIONS That Move Customers to Buy

By John Graham Contrary to what many people believe, most salespeople want their customers to make good decisions. They want them satisfied, whether it’s buying shoes, home improvement, a vacation package, a car, or an insurance policy. Even so, salespeople accidentally lose sales. They leave customers unsatisfied, not dissatisfied. Customers become dissatisfied after making a purchase; if they’re unsatisfied, they walk away before buying. Intent on rattling off features and benefits, salespeople forget they must understand the customer’s need to buy before the facts will make sense. In doing so, they overwhelm customers. Why do salespeople do this? They want customers to make informed buying decisions. But this is the fallacy. It’s not until after the sale that the rational stuff makes sense to customers. What must come first is the inner motivation for saying yes. A Salesperson’s Most Important Task Here’s the point: it’s the wow that grabs attention and excites customers. The salesperson’s task is figuring out what it is that motivates a customer. Once that button is pushed, the facts serve to justify the purchase. Here are 10 motivations that move customers to buy: 1. To enhance their status. There are certain things we want to buy because they tell a story - buying a home or designer sunglasses, taking an exotic vacation, dining at certain restaurants, having an expensive vehicle, wearing certain clothing, or even having a certain hair style. “The beautiful objects that we prize are really signs to others 14

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that they should prize us,” writes Matthew Willcox in The Business of Choice. 2. To make a dream come true. We’re surprised when someone makes a purchase that’s “out of character,” as the saying goes. When asked about it, the person responds, “You know, I’ve always wanted it and I’ve been saving for years. It’s a dream come true.” 3. To make amends. We may view ourselves as independent and free from past influences, but our purchases may tell a different story. A woman had a rocky relationship with her mother, but the first car she bought was the brand her mother always wanted. 4. To be defiant. Someone says, “That’s not a good idea. Is that something you really need?” or “You can’t afford that.” Such words become challenges, powerful forces driving us to “show them,” while pointing out how easy it is for adults to demonstrate adolescent behavior. 5. To feel good. There’s more than one type of selfmedication. Close to the top of the list may be buying stuff to make us feel better. A cup of hot cocoa on a cold winter night, a plate of Mac and Cheese, a latte, and, of course, fries. But, like other types of self-medication, the effects wear-off and it’s time to do it again. 6. To feel safe. Some things go beyond just feeling good; we also want to feel safe. The old idea that “your home is your castle,” a place with thick walls and a moat, is as current today as it was centuries ago. This may be a reason why tourists flock to visit them. We buy everything from deadbolts to security systems to insurance policies and organizational memberships to help us feel safe.

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7. To forget our problems. Whether it’s buying clothes to help us “look the part” or taking an exotic vacation to get “recharged,” purchasing our way out of problems is nothing new. During The Great Depression, Americans went to the movies to forget their misery and in the 40’s to take their minds of the horrors of war. Today, we binge on Netflix and hit the Amazon buy button. 8. To make a statement. Why do so many former jocks, who are now sportscasters, don three-piece bespoke suits, while CEO’s and salespeople shed theirs for open collar shirts? It almost looks as if they’re trying to trade places. Helping immigrants lose an accent is a growing business. And then there’s the big and powerful pick-up truck with its own message. Much of what we buy is to make a statement. 9. To feel we’re somebody. Kit Yarrow, Ph.D., the author of Decoding the New Consumer Mind, describes the big change that’s occurred in how we shop and our reasons for buying. “Most notable is an increased emphasis on the fundamental need to be seen, respected, and connected,” says Yarrow.

10. To reward ourselves. While it’s obvious that Starbucks sells coffee, that’s misleading. What they sell are low-cost rewards. It’s easy to drop $4 plus for a latte and not much less for a Tall coffee. But the cost is small compared to shoes, jeans, a getaway vacation, a dinner out, or some other splurge. We reward ourselves to fit our finances, but never get around to adding it all up. One report indicates that the average person spends over $700 a year on coffee alone. Customers respond positively when they believe salespeople understand them. When this doesn’t occur, they’re unsatisfied and they leave. Something is missing and piling on reasons for saying yes is useless. Information overload only makes it worse. Once an emotional need is met, the facts make sense and the sale closes. John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of “Magnet Marketing,” and publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@grahamcomm.com or johnrgraham.com.

The salesperson’s task is figuring out what it is that MOTIVATES A CUSTOMER. Once that button is pushed, the facts serve to JUSTIFY THE PURCHASE. Your one-stop shop for all of your difficult to insure needs. WE INSURE THE TOUGH STUFF Transcom is a specialized insurance wholesaler serving independent agencies in Illinois, Indiana, and Wisconsin. Our focus is writing commercial auto risks of all types, garage business, and E&S type property and casualty risks.

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Sales Success Lessons I Learned from my Mom

By John Chapin My mom passed away recently. As I was writing her eulogy, I realized that a lot of what she stood for, and a lot of what she taught me, led to my sales success. As I looked deeper, I realized that most of her examples also had to do with success in life, not just sales. Here’s what I learned.

Mom’s Lessons for Sales and Life Success Perseverance and stick-to-itiveness I remember my first job out of college as a stock broker. I was having a really tough time and I was going to quit. When I called my mom to tell her she said, “John, anything in life worth having isn’t going to be easy. It’s going to be tough. Life will test you to see how serious you are, how badly you want it, how committed you are to your dream. And here’s the thing, all you have to do is hang in there long enough without quitting. If you hang in long enough, eventually the tide will turn in your favor and you’ll win. Every time.” I stayed, and the tide turned shortly thereafter and within two years I was the youngest branch manager in the country. When I started my speaking business in the Fall of 2008 and the economy subsequently dropped off the cliff and the speaking business imploded. I remembered what my mom said, “If you hang in long enough, eventually the tide will turn.” And it did. She was right again. Mom’s lesson: The bigger and more important the endeavor, the more difficult the journey and the more likely there will be temptation to quit at some point. You don’t fail until you quit, and in order to succeed, you need to persevere long enough, and hang on after others have let go. Commitment My mom was a substitute teacher for many years. One time they called her to substitute teach and she was really sick with the flu, but she felt an obligation to help out. june 2018

So she put herself together as best she could and went to work. Later I asked her why she agreed to teach when she was that sick. She said, “John, people rely on me when other people are sick. I’m not supposed to be sick. In life it doesn’t matter how you feel physically or mentally, what matters is the commitments you make and that you live up to them, in good times and bad, whether you feel like it or not.” Mom’s lesson: Commit and be all-in. The client doesn’t care how you feel, or about any other excuses you have as to why something didn’t get done. They just want what they were promised when they were promised they have it by. Go above and beyond, add that little “extra.” My mom believed if you’re going to do something, you do it right and you do it all out. She always pushed herself to continually improve and be the best she could be. It started in school where she was her high school class valedictorian, and in college where she got straight As. But it wasn’t just the “big” things that she took seriously. She always believed in doing even the smallest things at the highest level. I remember the Halloween I wanted to be a ghost. That’s easy right? A sheet, two holes for the eyes, done. Not my mom’s ghost. I mean, I was the ghost but the ghost outfit was going to represent my mom. She had that sheet on me 4 nights in a row, adjusting, cutting, sewing, tailoring, and changing. The fifth night came, Halloween, she put that sheet on me, and made a few final changes before sending the perfect ghost off into the night. Mom’s lesson: If something’s worth doing, it’s worth doing right. Always take it to the next level by doing more than you get paid for and delivering more than people expect. Everything you do reflects back on you. continued... insight

Mom’s second lesson from this example: Leave no stone unturned. You want to make sure you do everything you can to win a sale. As a last-ditch effort, any time I lost a sale I used to ask, “Is it a done deal? Is there anything I can do to still get the business?” This led to me getting the “lost sale” back about 40% of the time. Be a team player. Make people feel important and special. In public my mom always had a smile on her face and a spring in her step, she was positive and upbeat. She wanted to leave a good impression on people and she wanted to make sure they felt good and important when she was talking to them. What people didn’t see behind the scenes, was the enormous pressure my mom put on herself to be the perfect mom and wife. She never let people see the weight she carried on her shoulders, and regardless of that weight, she put her game face on in public, and got done what needed to get done from coaching softball, to teaching, to everything she did in the church, to everything she did for her family. She always put others first. She was a team player and always wanted to help, as in the example of teaching when she had the flu. She understood that it wasn’t just about her, she had an obligation to her family, those she worked with, and those she made commitments to.

Mom’s lesson: At the end of the day it’s all about people and relationships. As Zig Ziglar used to say, “You will get all you want in life, if you help enough other people get what they want.” This is also another great example of commitment. Finally, if you find yourself in a comfort zone because you think you’re making enough money remember: it’s also about being in a position to help others. I always said I got my backbone from my mom. My mom projected a solid character and inner strength. She exemplified in her words and deeds how important it is to have a strong belief in yourself and what you stand for. My mom’s legacy is one of perseverance, commitment, and keeping your priorities straight along with your obligations. Doing what you do what you need to do, what you committed to do, without complaining, and regardless of how you feel physically, or mentally. That you keep going no matter what and never quit until you succeed. That your word is your bond. And at the end of the day, that you help as many people as possible. Thanks mom. John Chapin is a sales and motivational 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.

If something’s worth doing, it’s worth doing right. Always take it to the next level by doing more than you get paid for and delivering more than people expect.

Everything you do reflects back on you.

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june 2018

e INSIGHT -

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

JU N E 20 18

INSIGH T IT’S

HIRI NG SE How EffectitoveHire and Deve Sales Pe lop ople 10 Most Common Hiring M istakes

ASON

3 KEY METHODS

to Immediately Shorten Your Sales Cycle

In this month’s e-Insight. june 2018

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HOW TO HIRE AND DEVELOP EFFECTI Identify the success factors. To hire effectively, you have to be absolutely clear about the kind of person you are looking for. You don’t just want a job description; you want a description of the person you are seeking. First, you must gain a meaningful understanding of the personality qualities shared by your top salespeople. They are probably persuasive, able to read others’ reactions, and capable of bouncing back from rejection. But what else do they have? Is it high energy? Discipline? Good analytical skill? Assertiveness? A solutions-oriented mindset? Those attributes, once pinpointed, become the profile of your ideal candidate and, therefore, the model you should use when hiring new people. The closer your applicants match the profile of your top performers, the more likely they will meet or exceed your performance expectations.

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Avoid overvaluing experience. Conventional wisdom is that experience will prepare someone to hit the ground running. But the cost can be high for hiring managers who assume experience equates to talent. All too frequently, “experienced” job seekers don’t live up to this promise. Ten years of experience can be one year of bad experience repeated 10 times. Effective hiring has less to do with checking for experience than it does with uncovering potential. Data show there are many people out there in the general population with untapped sales potential; more so than half the workers already in the sales profession, in fact. This is not to say that experience should be disregarded, but experience should not be the primary determinant in making a hiring decision. Past experience does not necessarily equal future success.

june 2018

Use the interview process as an opportunity to address concerns. Interviews often end up being a ritualistic dance in which applicants and employers are both trying to put their best feet forward – and end up tripping over each other. Sometimes, a new employee’s best performance takes place during the interview. Use that stage of the hiring process to probe areas that concern you. If you have questions about the applicant’s level of resilience or how they will deal with rejection, you can ask questions about past situations in which they struggled or faced disappointment. You can ask about how the applicant felt and what he or she did to make sure the scenario wouldn’t occur again. Through that exploration, you may discover that the individual is well suited to the opening you have. Or it could save you from making a huge mistake. Find the right fit and coach for success. The work doesn’t end once you find the right person for the job. The first few days for a new employee are the most critical. As a manager, you want to ensure that new hires are given the tools to be successful. In return, they will know your company is committed to them and invested in their future. Team members who feel valued are more likely to stay with with the organization over the long term. By coaching new employees as soon as they start their new jobs and setting up a training program with milestones, they will understand how to avoid potential clashes and adapt their work style to fit in with your organization’s culture. Provide ongoing development.

TIVE SALESPEOPLE

By Caliper

Consider using a personality assessment. The information from an in-depth personality assessment can provide you with the insights you need to make a better-informed decision. Will the individual fit in with your culture? Work well with others on your team? Connect with his or her manager? Those are the important nuances that can make all the difference as to whether an individual will succeed. A validated personality profile can provide you with a measurable, objective view of an applicant.

june 2018

To keep employees engaged, you must make a solid commitment to developing their potential. In doing so, business projections become more predictable, and you retain more top performers. Development can take the form of personalized coaching, team building, or management training - or a combination. The key is to keep your top performers engaged so that they don’t feel tempted to leave for a competing organization. Ongoing development is not limited to the new employee; veteran team members and leaders all benefit greatly from ongoing development and growth. To learn more about how to engage your employees at your organization, visit www.calipercorp.com or email info@calipercorp.com. Caliper is a human capital analytics company leveraging decades of data and validated assessment results to predict and select high-quality candidates. Caliper partners with all types of organizations, industries, and sectors – from Fortune 500 companies to small businesses and from government agencies to non-profits. We help companies reduce the risk of bad hiring decisions; build highperforming teams; and engage, develop, and retain their employees. Contact us to learn more.

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The 10

MOST COMMON Hiring is not easy – as a matter of fact it’s quite difficult. A bad hire can cost you, on average, $20,000 per employee. And that number doesn’t reflect the potential damage to your company’s reputation and employee morale. To help you avoid a significant loss of time, money, and resources, Caliper has compiled a list of 10 Most Common Hiring Mistakes that companies tend to make. By avoiding these common hiring errors and putting the right people into the right roles, you can generate meaningful results for your business. Mistake #1: Thinking Experience Always Counts When it comes to hiring, companies often place too much emphasis on the past. Experience is commonly sought in job candidates and is often viewed as the ultimate tiebreaker when making a final decision. But the price tag for taking this road can be high. How often is twelve years of experience just one year of bad experience warmed over a dozen times? In the end, effective hiring has less to do with experience than with potential. Regardless of the experience a resume indicates, chances are more likely you will hire someone who is not ideally and inherently suited for the job you want filled. Surveys of employee satisfaction reveal the grim statistics: most people are not impassioned about what they are doing on the job. In other words, they don’t love what they do,

which essentially means they are not motivated. Why? Because the role they are in doesn’t allow them to play to their strengths. Mistake #2: Placing Too Much Emphasis on the Interview How often, after hiring someone who does not work out, have you thought to yourself, “But they looked so good in the interview?” In many cases, “interview stars” often make a very favorable first impression, but their performance fizzles after the interview. While interviews can provide valuable input during the hiring process, when all is said and done, you can often be left with more questions than answers. For an interview to be effective, you need a very clear sense of the key qualities and competencies you are seeking in the ideal candidate. Only then will you be ready to develop a list of probing questions that help determine the extent to which each applicant possesses these qualities. For instance, if you are trying to determine whether candidates are confident and assertive, ask them to tell you about someone who influences them. Ask them to describe a time when they had to go against the rules. Ask them about the best suggestion they ever made. Then listen. As their stories unfold, you will learn much more about them this way than if you simply used their resumes to serve as roadmaps for the interview process. Depending upon the particular job, you will want to ask similar questions to help assess a candidate’s level of independence, initiative, empathy, persuasive ability, caution, energy, leadership potential, problem-solving skills, capacity to follow directions, and service orientation. These questions can serve as windows into someone’s true personality. Coupled with the findings from a valid personality assessment, they can provide an accurate read on whether the candidate’s motivations are aligned with the needs of a specific job and the organization before you bring them on board. Mistake #3: Hiring in Your Own Image It is only natural to want to work with people you like. Human nature being what it is, we tend to like people who are most like ourselves. This sets up a reflex action to hire people who remind us of ourselves or with whom we have a lot in common. After all, who wants to surround themselves with people who get on their nerves?

insight

june 2018

N Hiring Mistakes

By Caliper

If you hire an entire staff of people like yourself, though, you are bound to create an imbalanced organization. A staff with a preponderance of your strengths and virtues will also share your limitations. It would be like a football team made up of 11 quarterbacks with nobody to block or catch a pass.

instance, listening skills can be improved, but you cannot help someone enjoy persuading others. Likewise, you can show someone how to manage their time more efficiently, but you cannot teach them to enjoy accommodating people. Certain skills can be taught, but you cannot provide someone with motivation or potential.

To avoid hiring in your own image, it is best to first outline very clearly the tasks you need the individual to accomplish as well as the competencies and personality qualities that would enable an ideal candidate to get the job done. You will then be in a position to assess your most promising applicants against this ideal profile. This is the surest way to avoid hiring someone simply because you like them and then wondering a few months later why they did not succeed.

Mistake #6: Pirating from Your Competitors

Mistake #4: Being Overly Impressed by Formal Education While education is clearly important and worth pursuing, having a degree does not necessarily tell you whether an applicant is bright, empathic, or flexible enough to learn and grow with your company. The ability to learn and grow requires considerably more than a keen intellect. We have assessed many people who demonstrated above-average intelligence but lacked the capacity to grow because they used their intelligence to rigidly defend their preconceived notions, rather than to genuinely seek out new solutions or approaches. On the other hand, many individuals with an average level of intelligence have the potential for growth because their openness, flexibility, and empathy enable them to make full use of their capabilities. The bottom line is not necessarily how someone does in a classroom. It has more to do with whether an individual is open and flexible, can shift gears under differing conditions and demands, can read between the lines and adjust accordingly, and is motivated to learn and grow. Mistake #5: Depending Upon Training to Fill in the Missing Pieces One of the major problems with training (as most trainers will readily agree) is that it is generally assumed that everyone possesses the potential and talent to take advantage of what is being offered. Appropriate training can certainly increase the productivity of someone who has inherent potential. However, an individual who does not possess equal measures of potential for a particular position rarely improves with training, no matter how thorough the instruction is. For training to be profitable, individuals first need to be selected according to their innate potential and abilities. This takes an understanding and appreciation of what can be taught and what has to be brought to the job. For june 2018

The notion persists in many industries that pirating an employee from a competitor provides an enormous head start. The reasoning is that a pirated individual will be able to hit the ground running because training can be skipped. An added benefit may even be that new clients will come along with this pirated individual. But ask yourself: Why would a successful person be willing to give up seniority and other benefits to come to me? Is your opportunity really that much better than your competitor’s? If the answer is not a ringing “yes,” then seriously question the wisdom of pirating an employee. All too often, the result of pirating from a competitor is nothing more than the recirculation of mediocrity. We have found that it is much easier to teach an inexperienced individual (who has real ability) how to do the job than to try and cash in on second-rate experience by retreading someone else’s employees. Though exceptions exist, in most cases, the only time you should hire from a competitor is when you want to do them an enormous favor. Mistake #7: Overlooking Cultural Fit When a candidate looks perfect on paper, it can feel like you’ve struck gold. While education and experience are important qualifications to consider when making a hiring decision, there are other critical non-verbal factors at play, including how that person might fit into your organization’s culture. While an applicant’s resume might make him or her seem like an ideal candidate, it’s critical to ask yourself whether that individual’s personality and behavior patterns are both suited for the job and for your company’s culture. How will that person interact with colleagues, clients, and customers? Will he or she be too casual or too formal? Will that individual be able to work at an appropriate pace? It’s not enough to simply focus on the qualifications of the candidate. Companies are more likely to let an employee go as a result of a culture clash than because of inexperience or mismatched skill sets. Mistake #8: Talking Instead of Listening Time is money, and it can be tempting to rush through interviews in order to make quick decisions and fill your open roles. However, when an employer opens the interview with an in-depth discussion of the job and company, it’s easier for a candidate to script what they think would be desired responses. continued... insight

By asking targeted questions and letting candidates do more of the talking, you can get a better sense of their personality and gain insights into their behaviors, attitude, and potential for success in your organization. Likewise, it will be easier to determine if – and why – they aren’t right for the job. It’s crucial to take the time to delve into a candidate’s experience and potential. Mistake #9: Not Having a Structured Hiring Process Filling open positions can be a daunting and timeconsuming task, so it’s important to have a structured and standardized hiring process in place. It’s critical to set a hiring timeline and implement a uniform process for pulling and interviewing candidates. By creating and establishing a structured hiring process, you can ensure that each individual is completing the same steps and providing the same information. This will provide clarity to your decision-making process and ensure that all candidates will be considered on fair grounds. A bad hire wastes time and resources, so it’s important to make certain that your company hires right the first time.

Having a structured hiring process in place will ensure that you hire the right people for the right job the first time around. Mistake #10: Lacking a Solid Onboarding Program While we stated above that training alone is not sufficient to ensure a candidate’s success, having a clearly defined onboarding program is crucial. Hiring managers may sometimes feel that their job is complete once a new employee is hired and starts his or her new job. However, it is important to provide new hires with an orientation and training program to help them settle into their new positions within your company. Giving new hires a head start can have a direct, positive impact on employee satisfaction – and your bottom line. When employees feel engaged, they are more likely to be productive and successful in their roles. Moreover, employees who are coached at the beginning stages of a new role will contribute more to the team and reach their peak potential sooner.

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Developing a solid onboarding process will help new employees get up to speed faster, understand their strengths and limitations, and learn how to adapt their work styles to fit in with new team members and managers. Making the right hiring decisions always begins by having a welldeveloped process that provides deep insights into potential candidates and a clear understanding of competencies required in the position. By avoiding the key hiring mistakes we’ve outlined above, you can better inform your hiring decisions and hire right the first time. Companies that find the right candidates see the specific behaviors and contributions necessary to deliver results. Improve your hiring practice today and build an effective team for your organization. For For over 50 years, Caliper has helped leading companies make the right hiring decisions, offering a full suite of services from pre-employment screening to talent management. Learn more about the following Caliper solutions to help you avoid the most common hiring mistakes. If you would like to learn more about hiring productive people, improving the productivity of your current employees, or developing a more effective team, please contact us at (609) 524-1200 or via email at info@ calipercorp.com.

Abby George, CIC, AFIS — abbyg@was-irp.com Dave Miller, CPCU — davidm@was-irp.com

W. A. Schickedanz Agency, Inc.

Interstate Risk Placement, Inc.

Phone: (618)233-0644 Fax: (618)233-0672

Phone: (309)692-8544 Fax: (309)693-0402

300 West Main Street PO Box 445 Belleville, IL 62222

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7320 N. Villa Lake Dr PO Box 3765 Peoria, IL 61612

june 2018

IICF Women in Insurance Conference Series Regional Forums 2018 New York City, June 7 Dallas, June 19

Chicago, June 14 Los Angeles, June 21

Insurance Industry Charitable Foundation (IICF) invites you to join the conversation as we explore the impact of today’s most relevant diversity and inclusion topics, at the intersection of innovation, and a fully inclusive workplace. Dynamic Disruption: Change the Construct • Change the Conversation New York, June 7

Join your colleagues and hear the latest from industry-leading speakers! Register today: womensconference.iicf.org New York City, June 7

Chicago, June 14

Dallas, June 19

Los Angeles, June 21

The Future of Work: Dream It, Define It, Do It Chicago, June 14 Come As You Are… Dare to Differ Dallas, June 19 Driving Diversity: Cultivating Individual and Industry Confidence Los Angeles, June 21

Dr. Susan Fleming

Kathleen Savio

Steve DeCarlo

Mandana Sadigh

Senior Lecturer in Entrepreneurship and Management and Organizations Cornell School of Hotel Administration

Chief Executive Officer Zurich North America

Chief Executive Officer AmWINS Group, Inc.

SVP & Treasurer Mattel, Inc.

For a complete listing of featured speakers please visit the Regional Forum Speaker pages at: womensconference.iicf.org

Special thanks to all of our Sponsors

womensconference.iicf.org

#IICFdiversity

How the Insurance Industry Is

Building More

Women Leaders

By Jacquelyn Connelly

Only 35% of independent agencies are led by a woman agency principal or senior manager, according to the latest Future One Agency Universe Study.

Dallas on June 19, and Los Angeles on June 21. For an exclusive Big “I” member discount, log in to the Big “I” website.

Compare that number to 84%-the percentage of independent agencies with a man in ownership roles-and the importance of initiatives like the Insurance Industry Charitable Foundation (IICF) Women in Insurance Conference Series becomes abundantly clear.

Since 2013, the series has provided a platform for attendees to explore the diversity opportunities and challenges facing business leaders today through keynote speakers, panel discussions, breakout sessions and networking that fosters connections between women insurance executives and professionals.

When the idea for the conference series was first coming to fruition, “we were really surprised to find that there had never been a multiday, global conference specifically for women in the insurance industry,” says Elizabeth Myatt, executive director, Northeast Division, IICF. “That in itself was a real eye-opener-everybody realized there was a need for more diversity in the industry.” The goal of the series: “to empower women to be the best they can be,” says Myatt, who notes the target audience is “women of all ages who are serious about their careers. We typically attract women who are either in management positions, or high-potential younger women who are very serious about staying in the industry and being able to do what they aspire to do - without boundaries or barriers.” WHAT’S IN STORE In odd years, IICF hosts a three-day global conference in New York City; in even years like this one, it adopts a regional format for one-day events. This year’s events will take place in New York on June 7, Chicago on June 14, 26

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Alisa Breese, director of marketing and communications for IICF, expects about 1,500 attendees across the four locations this year-and notes that IICF’s satisfaction surveys reveal that nearly 100% of past participants would not only attend again, but also recommend the conference to a friend. Erin Odell, co-principal of Odell Insurance Agency, Inc. in Bradford, Vermont, will be a first-time attendee in 2018. After trading in her marketing career to help secure the future of her father’s agency several years ago, Odell is excited to participate in an event that’s geared specifically not only toward women, but insurance professionals. “You see a lot of professional development and networking events for women, but they’re never specific to insurance,” Odell says. “That was very intriguing. I’m always interested in being part of something bigger than myself, especially when it involves women in the workforce and the power of what we can do when we get together collectively.”

june 2018

In addition to the networking opportunities, Jonathan Axel, managing partner, The Liberty Company Insurance Brokers in Woodland Hills, California, is looking forward to attending this year’s event to gain diversity-related skills and lessons that he can use in his own day-to-day work environment. “That’s key for me-to take what I learn and apply it to the organization that I help lead,” Axel says. “We’re always trying to improve on how we do things and participating in these sessions will hopefully be very enlightening.” Those types of improvements are exactly the outcome Myatt hopes the conference series produces. “We hope people come to the conferences wanting to make some changes, whether those are personal, professional or cultural in the company where they’re working,” she says. “And we hope to provide ideas and solutions for anybody who wants to make those changes.” From tips on how to build a women’s network at your agency to suggestions for personal presentation and communication, the conference’s skill-building sessions “help people start thinking about, ‘What are you going to do, when are you going to do it and how are you going to do it?’” Myatt says. “In many cases, attendees are looking for personal opportunities to improve themselves-things you might not necessarily think about that differentiate you and make you more impressive in a corporate setting.” But over the years, “we’ve morphed into addressing diversity in general, not just gender diversity, because the insurance industry is addressing improvement in other areas of diversity as well,” Myatt points out. “If you don’t include minority groups in your talent pool, you’re missing out on some wonderful people and some wonderful opportunities to make your business better.” WHY IT MATTERS As chair of IICF’s Western Division, Axel was speaking at a women’s conference luncheon last year when he had an important realization. “We were expecting maybe 75 people, but we ended up with 200-plus attendees,” he recalls. “It was amazing to see the reception and the overwhelming desire to have these kinds of conversations.” That level of passion is contagious, Axel says: “It really rubbed off on me - this wonderful feeling around coming together to talk about diversity and inclusion, and how to enhance everybody’s ability to continue to achieve their goals. I was really jazzed by participating.” Due to a scheduling conflict in 2017, this will be Odell’s first year attending the conference. But she’s driving 14 hours round-trip for the one-day event. “I’m dedicating a number of valuable business hours to attend, because I think it’s worth it,” she says.

“Our clients are changing. We have to start leading the discussion versus just trying to follow,” Axel agrees. “Diversity makes us better organizations—it makes us more productive. We have to look at it holistically. I think we are stronger for it.” And although women are the focus of the conference series, “by no means are men excluded,” Breese says. “To achieve full inclusion, everyone needs to be involved in the solutions and the path forward. It will be mostly women attending, but we will have male keynote speakers, we will have men on the panels and we will have men in the audience as well.” Most of the women participants agree that “we need more men in the room to hear this,” Myatt says. But the ultimate goal will always be to “provide a safe space for women to connect with other really talented women in the industry. Sometimes, when people first come to the conference, they’re stunned to see that there are so many phenomenal women in the industry. They come here to build a network of people that they can reach out to any time and find support and ideas. It’s a great way to share best practices.” That’s a crucial opportunity Myatt wishes she had at the beginning of her career, which started in the technology sector in 1981. “There wasn’t anything like this,” she recalls. “To be able to hear all the tips and techniques and build this network of women around you - I would have loved to have had that opportunity when I was 20. It makes a huge difference.” “To some degree, at some of these other national events, I do think women have their guard up a little bit,” Odell agrees. “This will allow for free flow of ideas and conversations. The fact that women are actually getting together to brainstorm, identify problems and possibly create solutions - that’s really just going to be an enabler for all of us.” Bonus: All proceeds of the regional forums support grant funding to both local nonprofits and the national IICF Early Literacy Initiative - a program that helps make literacy opportunities available to children in underserved communities. “This is a huge problem that affects so many children in underserved communities, and ultimately affects the workforce going forward,” says Breese, who notes that IICF has involved more than 100,000 industry volunteers in its 25-year history. Myatt hopes people come to this year’s events to not only develop actionable strategies for achieving their professional goals, but also find a “greater purpose,” she says. “Building a network is extremely important. As women, we have to support other women.” Jacquelyn Connelly is senior editor of IA Magazine.

Only 35% of independent agencies are led by a woman agency principal or senior manager, according to the latest Future One Agency Universe Study. june 2018

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EDGE – Not Your Average Conference

By Rachel Romines

The IIA of IL Young Agents Committee hosted a very successful EDGE Conference May 16-17 at the Hotel Indigo in Naperville. This marked the fifth year for the Conference, and the first in the Chicagoland area. This conference is unlike any other in the industry. With the focus on professional development gained through unique programming, it was easy to see why the EDGE Conference is rapidly becoming one of the most highly regarded professional development programs for insurance professionals in the Midwest. The Young Agents Committee packed a punch this year with speakers coming in from all over the country. Joe Bonura taught attendees how to sharpen their EDGE, while returning presenter Robb Zbierski and Trevor Shylock helped with goal-setting and communicating to achieve results. Additionally, Alton Carter went beyond the policy with his program by demonstrating how he overcame adversity and achieved success. The Conference ended with one of the most topical subjects out there - Identity Theft and Cyber Liability. The over 140 attendees had several opportunities during the Conference to network with peers and company representatives. The mini-tradeshow featured 26 exhibitors, 10 of which presented to the group prior to exhibiting. Perhaps the most talked about event of the EDGE was Wednesday evening’s social event - Familiar Feud, a raucous take on the popular tv game show, Family Feud. All attendees had a chance to qualify to play, making this a great ice-breaker for the evening. Thank you to our host, Skip Williams, for keeping everyone thoroughly entertained. We would not be able to hold this event without the generosity of our advertisers, sponsors, and exhibitors.

Thank you to: Advertisers Continental Western Group JC Restoration Penn Mutual Great Lakes Region WA Schickedanz/Interstate Risk Placement

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Sponsors Arlington/Roe Donald Gaddis Co Grinnell Mutual Hemphill Financial Services/LegalShield Mercury Insurance Group The IMT Group W.A. Schickedanz/Interstate Risk Placement Exhibitors Agents Insurance Services All Risks AMERISAFE Appalachian Underwriters, Inc Applied Underwriters Berkshire Hathaway GUARD Insurance Companies Bliss McKnight Caliper Management Inc. EBRM Employers Mutual Casualty Company Executive & Global EZLynx Hemphill Financial Services/LegalShield Illinois Public Risk Fund J. C. Restoration Jack Schroeder and Associates (JSA) & MeridianCare Markel Specialty Commercial Mercury Insurance Group Midland National Life National General Penn Mutual - Great Lakes Region ServiceMaster DSI TAPCO Underwriters, Inc United Services by Permaco Wright Flood Xanatek, Inc. Planning for the 2019 EDGE Conference will start soon. If you have any suggestions for next year’s conference, contact Rachel Romines at rromines@iiaofil.org. Stay up to date on all Illinois Young Agents hosted events & activities at www.ILYoungAgents.com. Rachel Romines is the Digital Communications Coordinator/Web Administrator and Young Agents Liaison for the IIA of IL. She can be reached at rromines@iiaofil.org or (217) 321-3024.

june 2018

ASSOCIATE NEWS

Thank you to our Associate Members.

Diamond Level Members

Platinum Level

Progressive Standard Property & Casualty, a National General Company

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

Silver Level Grinnell Mutual Reinsurance Company Imperial PFS Surplus Line Association of Illinois

The IMT Group West Bend Mutual Insurance Co.

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

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Keystone Insurers Group, Inc. Liberty Mutual Madison Mutual Insurance Company MarshBerry Maximum Ind. Brokerage, LLC Mercury Insurance Company of IL MetLife Auto & Home Motorists Insurance Group Nationwide Rockford Mutual Insurance Co. ServiceMaster DSI Society Insurance Specialty Risk of America Transcom General Agency Travelers United Fire Group Utica National Insurance Group W.A. Schickedanz Agency, Inc. Western National Insurance Westfield Insurance Company

june 2018

IIA OF ILLINOIS NEWS Education Classes june

5 11 13 13 14 20 26 28

CISR - Commercial Property Springfield Ethics Rolling Meadows CIC - Commercial Multiline Chicago CISR - Commercial Casualty 2 Rolling Meadows Errors & Omissions Edwardsville CISR - Personal Lines Misc. Champaign CISR - Personal Residential Lake Bluff Agency Perpetuation Rolling Meadows

New Members member agency Chang Kee Neo Yorkville ChiHaven Insurance Group, Inc. Plainfield Drew Jacobs dba Jacobs Insurance Advisors Springfield ENGS Insurance Agency, LLC Itasca Illinois Insurance Services Batavia Webber Insurance Services, Inc. Olney

associate copper level july

18 19 25 25

CIC - Ruble Seminar Elk Grove Village CISR - Commercial Casualty 2 Edwardsville CISR - Agency Operations Rolling Meadows

AGILE Premium Finance Rolling Meadows Venture Insurance Programs West Chester, PA For information regarding IIA of Illinois membership or company sponsorship, contact Tom Ross, Director of Membership Services, at (217) 321-3003, tross@iiaofil.org.

CISR - Risk Management Springfield

june 2018

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Independence can’t happen alone Independence means freedom, but it also means responsibility. It is about staying true to the commitments you’ve made - to your clients, your colleagues, and your community. Keystone connects you to a community of like-minded independent agencies. Our mission remains unchanged: to provide access to the expertise, resources, and relationships that sustain independent insurance agencies over the long haul. Keystone. Independence works better together.

Contact Neal Williams for more information: 570.473.2850 nwilliams@keystoneinsgrp.com keystoneinsgrp.com

3rd Annual St. Jude Golf Outing Friday, June 29 Deer Valley Golf Club Deer Grove, IL

Open Golf All Day $50 per golfer

Food & beverages provided.

100% of all golf proceeds will go directly to St. Jude Sponsored by The Cornerstone Agency Leffelman and Associates Smeltzer Insurance

New This Year:

Nationwide NASCAR Replica and Simulator Noon till 6:00pm Reservation Required Suggested Donation of $20

To reserve a tee time or make a simulator reservation, contact Greg Sandrock at gregsandrock@2cornerstone.com. june 2018

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

Berkshire Hathaway

GUARD

Insurance Companies

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

Staff Profile Brian McSherry Vice President, Agents Insurance Services, Inc.

Number of years at the IIA of IL: Two Years What do you like most about your job? I like working with 13 other professional co-workers who provide a great work environment and help bridge the gap between the insurance operation of the association with Education, Communications, Government affairs and corporate finance. All working together to provide the best products and services to our membership. Tell us about the first job you ever had: My first job was delivering the Detroit Freepress. Bicycle delivered 100 papers every day. *Hated Sunday deliveries. If you could have any career other than this what would it be? Professional Golf What is your favorite: Pastime: Golf & Boating Food: Roast beef, mashed potatoes and gravy Movie: Bullet/Steve McQueen TV Show: Gun Smoke Band: Moody Blues Tell us about your family: My wife of 40 years, Mary, has been a surgical nurse for 47 years. She has worked at hospitals in Peoria, Bloomington, Pontiac and is currently in Springfield. My oldest son, Michael, is married living in Oakland, CA. He currently works for a micro-brewery heading their social media & marketing departments.. My youngest son lives in Chicago and is head of technology in a school for children with learning disabilities. Name one thing on your bucket list: Playing in the AT&T Pebble Beach Pro Am Golf Tournament. What is your biggest fear? Spending my final days in a nursing home. Of what are you most proud either personally or professionally? I am most proud of my two sons. They are doing what they enjoy. They are hardworking not afraid of a challenge and are always there with a helping hand. As Moms and Dads, we recognized our strengths and weaknesses, work together, add a Mother and Father’s love and understanding, add just a little luck and you get a great family. We are blessed with a great family. Name something people would be surprised to know about you. I’m a sophomore in college. I wanted to sky dive. They had a class at the local airport but I needed a permission slip signed. I hitchhiked home on a Friday got the signature, hitchhiked back on Sunday and started the class on Monday. Three weeks later I opened the door on a perfectly functioning airplane and jumped out. There is a “Paul Harvey” rest of the story. june 2018

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people in the news

The Institutes Confer ANFI Designation The designation of Associate in National Flood Insurance (ANFI®) has been conferred on Gary T. Ohler, CPCU, following his successful completion of an insurance education program sponsored by The Institutes in cooperation with the Federal Emergency Management Agency (FEMA). This accomplishment is affirmed by the President of The Institutes, Peter L. Miller, CPCU. The ANFI® credentials were sent to Mr. Ohler on April 24, 2018 in official confirmation of the achievement. Based on the National Flood Insurance Program (NFIP) Flood Insurance Manual and the Mandatory Purchase of Flood Insurance Guidelines booklet, ANFI® reinforces the technical and practical knowledge and skills needed to confidently and accurately handle all aspects of flood insurance coverage.

Your customers. Our promise. FCCI Insurance Group has been insuring businesses and doing what we say we’ll do for nearly 60 years. Our expertise in underwriting, risk management and claims handling helps businesses thrive and face the future with confidence. Stephanie Hipskind Senior Risk Control Consultant Midwest Region FCCI Insurance Group 800-226-3224, ext. 4103

Gary Ohler has demonstrated his professional competence through the successful completion of the prescribed coursework and the corresponding comprehensive examinations to accurately handle all aspects of flood insurance. He serves as Senior Business Development Manager for NatGen Premier, a brand utilized by the member companies of the National General Insurance Group. Ohler began his career in 1987 and has held several home office and field management positions for various regional and national carriers. His responsibilities have included sales management, agency training, underwriting, marketing, and strategic planning.

Erie Insurance Names New VicePresident of Property Erie Insurance has named Matt Palczer as vice-president of property and subrogation. Palczer joined Erie Insurance in 2002 as a mail clerk in the company’s Murrysville, PA branch. He later served in positions of increasing responsibility, which include multi-line adjuster, property adjuster, property reinspector, property examiner and property claims reinspection manager. He is involved with Erie’s drone program. At present, Palczer is pursuing a bachelor’s degree at Southern New Hampshire University. He is also a United States Air Force veteran and has the Associate in Claims designation.

Grinnell Announces Scholarship Recipients Grinnell Mutual, in partnership with its independent agency force, is pleased to announce the recipients of the 2018 Road to Success scholarships. The scholarship is awarded to high school seniors with Grinnell Mutual auto coverage who have excellent academic records and have been accident- and violation-free for their high school years. Since the program began 13 years ago, Grinnell Mutual and its agents have provided college-bound students more than $700,000 in scholarships through the Road to Success program. The $1,000 scholarships go to high school seniors in Grinnell Mutual’s writing territory. Congratulations to the 2018 Road to Success scholarship recipient from Illinois.

General liability • Auto • Property • Crime Workers’ compensation • Umbrella Inland marine • Agribusiness • Surety

Casey Carpenter, Illinois City Nathan Parchert, Illinois City Cade Tuthill, Wyoming Katrina Sandefer, Sterling

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june 2018

Pekin Life Insurance Company Holds Annual Meeting

GuideOne Insurance announced changing its logo to reflect changes in its business - a renewed commitment to those with a mission to serve others. The 70-year-old insurer was founded with a commitment to social responsibility and says the bright new logo conveys the confidence to make positive change possible.

Pekin Life Insurance Company held its annual meeting on Tuesday, May 8, 2018, at the Company’s Home Office in Pekin, Illinois.

Customers can expect a GuideOne fiercely committed to customer service, with claims teams that are compassionate while understanding the crucial need for efficiency. The company continues to serve churches, educational institutions, senior living care centers and nonprofit organizations, providing commercial property and liability, workers’ compensation, commercial auto, and many other liability needs through a network of thousands of independent agents. GuideOne plans to expand product lines by the end of 2018. GuideOne began recruiting independent agents in 2017 and says that change has been positive, too. Investments in people, products and technology reinforce the commitment to empowering agents to strengthen and protect their communities. The brand changes reflect a year of listening to stakeholders - especially employees and sales directors who want an environment to grow and evolve GuideOne’s work to help people whose organizations focus on things that matter most.

Acuity Named a Best Employer by Forbes Acuity is named to Forbes America’s Best Mid-Size Employers list. In collaboration with analytics firm Statista, Forbes asked 30,000 people working for U.S. employers to rate their willingness to recommend their own companies on a scale of 0 to 10. Respondents were also asked to name employers that stand out either negatively or positively within their industry. The top 300 mid-size employers - companies with 1,000 to 5,000 employees - are ranked on Forbes’ list. Employees who took part in the survey were not contacted through their employers but, rather, did so on their own through several online access channels.

The Company reported net income of $7.4 million. Premium income decreased by 10.4 percent to $199.3 million. Life Insurance in force exceeded $17.7 billion in the year 2017. At the meeting, shareholders elected directors Craig W. Concklin, Hinsdale, Illinois; Daniel V. Connell, Tremont, Illinois; and John S. Heller, East Peoria, Illinois, to three year terms to expire in May 2021. Other directors whose terms continue are: Steven R. Anderson, Loves Park, Illinois; Byron A. Dodd, Anna, Illinois; Scott A. Martin, Chillicothe, Illinois; and Thomas C. Hornstein, Brian K. Lee, and Christine A. Schwartz, all from Pekin, Illinois.

Motorists Insurance Group wins 2018 NetVU Automation Excellence Award Motorists Insurance Group accepted the 2018 NetVU Automation Excellence Award for Regional Carrier last week at the Accelerate Conference in Atlanta. Motorists VP Customer Experience Officer James Sullivan and Customer Experience Analyst Rachel Levien were in attendance. The Automation Excellence Award recognizes the carrier that has demonstrated significant achievement in automation technology to promote productivity, profitability and service for NetVU members. Winners have advanced cutting-edge ideas to enhance efficiency, increase profitability and streamline operations. Motorists also earned this award in 2016. NetVU is the national users group for Vertafore, an innovative agency management system for the insurance industry.

This latest recognition adds to Acuity’s ongoing recognition as a great workplace, including being named: • Employer of the Year - Insurance by the Stevie® Awards • A top five “Coolest Offices in the U.S.” from national consulting and software firm PayScale • One of the “15 Offices You’ll Wish You Worked In” by lovemoney.com • A top 50 “Companies That Care” by PEOPLE • A FORTUNE “100 Best Companies to Work For,” including two times as a top three company For more information on Acuity, visit the company’s website, Facebook page, Twitter account, YouTube channel, or LinkedIn account. june 2018

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industry news

GuideOne Insurance Commits to ‘Making Positive Change Possible’

CLASSIFIEDS

for the insurance professional by the insurance professional

SHARED SPACE FOR RENT

99. 6,400 SF office located at 127 N. Walnut St., Itasca, has availability for startups, insurance agents, salespeople, consultants, professionals, etc.; who are in need of class A space without the cost. Monthly fees range from $375 and include: Receptionist/Clerical, internet, conference rooms, kitchen, classroom/break room. Printing and clerical services are also available. Short term or long term rentals are available. Wed are in downtown Itasca across from the Metra station. Close to expressways. For information contact:

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

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

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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 Agency (708) 383-9000 dbrowne@forestagency.com

june 2018

Doing The Right Thing Since 1964

The Roe Family

Patrick, Jim, Katie and Andy

It’s the right thing to do. To keep your agency relevant, you just need the right products and the right people. Our team of dedicated and attentive professionals can help you fill the gaps in your insurance offerings, providing more opportunities for sales. The more you get to know us, the more you’ll see the possibilities.

Let us help you find the right solutions. ®

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