April 2016 Wisconsin Independent Agent Magazine by Independent Insurance Agents of Wisconsin

wisconsin

INDEPENDENT AGENT APRIL 2016

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EXCLUSIVE COMPANY SPONSORS SEE PAGE 4

wisconsin

INDEPENDENT AGENT APRIL 2016 Eric Schwartz, Editor

2015-16 Exclusive Company Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Open Door Policy IIAW Leads Effort to Have LGPIF Legislation Signed into Law . . . . . . . . . . . . . . . . . 21 Government Affairs Worker’s Compensation Changes Enacted With Council Bill Approval . . . . . . . . . . 23 Community Service Sentry Insurance Gifts UW-Stevens Point . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Virtual University Late Paying Clients: To Call or Not to Call . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Technology Small Commercial & the Challenge of Real Time Rating . . . . . . . . . . . . . . . . . . . . . . 28 Marketing Three Reasons Why Insurance Agents Struggle With Digital Marketing . . . . . . . . 30 Sales Break Through the Information Barrier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Members in the News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Errors & Omissions The Risk of Operating Outside the Scope of Your E&O Policy . . . . . . . . . . . . . . . . . .41

On The Cover…

The Independent Insurance Agents of Wisconsin thanks our fantastic Exclusive Company Sponsors for their continued support of all Association events, including our upcoming annual convention on May 11 & 12. Find out more about these companies starting on page 4 and register for the convention at IIAW.com!

Annual Convention Schedule of Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Independent Insurance Agents of Wisconsin 725 John Nolen Drive, Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 ■ Fax: (608) 256-0170 ■ Web: www.iiaw.com Executive Vice President - Matt Banaszynski 2015-2016 Executive Committee President......................................................... Steve Leitch P.O. Box 85, River Falls, WI 54022 President-elect .............................................. Matt Weimer 100 North Corporate Dr., #100, Brookfield, WI 53045 Secretary-Treasurer .......................... Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583

Jack Riesch P.O. Box 1610, Waukesha, WI 53187-1610 Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Darrel Zaleski 4233 Southtowne Drive, Eau Claire, WI 54701 2015-2016 Committee Chairs

Chairman of the Board ............................. John Wickhem P.O. Box 1500, Janesville, WI 53547-15

Agency Operations....................................... Kim Dandrea N19 W24200 Riverwood Dr., Waukesha, WI 53188

State National Director ................................ Linda Steiner 555 Main Street #320, Racine, WI 53403

Automation/Technology ............... Cathleen Christensen P.O. Box 949, Fond du Lac, WI 54936-0949

2015-2016 Board of Directors

Emerging Leaders ...........................................Jack Demski 101 East Grand Ave. #11, Port Washington, WI 53074

Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704 Mark Behrens 555 Main Street #320, Racine, WI 53403 Jason Bott 330 East Kilbourn Avenue, Milwaukee, WI 53202 Cindy Burns 500 South Central Ave., Marshfield, WI 54449 Gerald Couri 379 West Main Street, Waukesha, WI 53186 Mike Farrell 1300 S. Green Bay Rd., Racine, WI 53406 Chris Hanson 5601 Grande Market Drive, Appleton, WI 54913 Brian McClone 505 North Westfield Street, Oshkosh, WI 54902

WISCONSIN INDEPENDENT AGENT

Employee Benefits.......................................... Mike Farrell 1300 South Green Bay Rd., Racine, WI 53406 Finance & Compensation ............... Lise Meyer Kobussen P.O Box 633, Sauk City, WI 53583 Government Affairs .......................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045

> ADVERTISERS & INFORMATION AAA Wisconsin ................................................ 39 ACUITY Insurance ........................................... 47 Austin Mutual ................................................. 29 Badger Mutual ................................................ 35 Berkshire Hathaway/Guard ............................ 45 Compass Specialty Risk.................................. 33 EMC Insurance................................................ 22 IIAW Exclusive Company Sponsors ................... 4 IIAW Continuing Education ............................. 32 Insurance Associates of America ................... 40 InVEST ...............................................Back Cover Partners Mutual ............................................. 35 Pekin Insurance ............................................. 46

Industry Relations ....................................... Kevin Murray 525 Junction Road, Madison, WI 53717

Robertson Ryan & Associates......................... 35

Marketing & Membership Development ........... Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610

SECURA Insurance .......................................... 20

Smaller Agencies .................................... Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Technical ................................................... Mark Truyman P.O. Box 6, Seymour, WI 54165 Technical ...............................................Timothy Kakuska P.O. Box 547, La Crosse, WI 54602-0547

The IMT Group ................................................ 42 West Bend ........................................................ 2 Western National............................................ 24 Wilson Mutual .................................................. 31 APRIL 2016 | 3

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2015-2016 EXCLUSIVE COMPANY SPONSORS

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CONTINUED ON PAGE 19

Rated A+ by A.M. Best and S&P Wardâ&#x20AC;&#x2122;s 50 best-run company Named the #2 large company to work for in America Manages over $3.5 billion in assets 61st largest insurer in the nation In business since 1925 Less than 3% voluntary employee turnover

BURNS

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Our vast global market relationships speed up our quoting and binding process, quickly providing insureds the solutions they need. When it comes to the hard-toplace, think fast. Think Burns Wilcox.

APRIL 2016 | 7

Wisconsin’s Independent Agents We Appreciate All The Value You Deliver

• Bringing valued expertise • Local support of customers • Contributing to your communities

THE HANOVER INSURANCE GROUP Exclusively distributing through independent agents since 1852

hanover.com

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The IMT Group IMT Insurance Company & Wadena Insurance Company Location of Company Headquarters: 4445 Corporate Drive, West Des Moines, Iowa 50266 Founded: 1884 Officers: Sean Kennedy, President & CEO Brian Neitzel, VP – Research & Development Greg Blythe, Vice President – Finance Brad Buchanan, Vice President – Personal Lines Chris Owenson, Vice President – Claims Mark Vasey, Vice President – Commercial Lines Dalene Holland, Corporate Secretary Ann West, Vice President – Information Systems Rich Nauman, Vice President – Marketing Sean Kennedy Products Company Specializes In: The IMT Group, consisting of IMT & Wadena Insurance Companies, is proud of its partnership and relationship with the Wisconsin Independent Insurance Agents. Together, we strive to meet and exceed the personal and commercial insurance needs of the residents of Wisconsin. Our companies offer the products needed for a wellrounded property and casualty agency at a competitive price. Wadena Insurance has an advanced and modern auto program and a cuttingedge Businessowners policy including many specialty ‘PAKS’, along with Workers’ Compensation, Power Sports and Boatowners policies. IMT Insurance offers a wide array of personal and commercial lines products including Farm Liability, Homeowners, Bonds, Commercial Auto, Commercial Property, and Commercial Liability. Outlook for the Company’s Future We are very proud of our history, but we are continually planning for our future! Sean Kennedy, President and CEO of The IMT Group, is looking forward to a great 2016. “We plan to continue doing what we do best; build relationships with our agents, be out in front on technology, provide innovative products and pricing, hire employees that fit our culture and most importantly, listen to our agents and policyholders,” Kennedy states. Both IMT and Wadena Insurance Companies continue to remain financially stable, receiving A (Excellent) ratings by A.M. Best. In addition, we were voted the Midsized #5 Top Workplace in Iowa in 2015. This recognition illustrates the fun, flexible, and fair work environment we believe in. While the technology we use and the products we provide are constantly changing, there is one thing that will remain consistent - we promise to be there when needed the most and do everything possible to help families and businesses live by our slogan - Be Worry Free with IMT! Other Comments It’s the little things that differentiate us from our competitors. As a Midwest regional mutual company that values our relationships

WISCONSIN INDEPENDENT AGENT

with Independent Insurance Agents, we do not have to answer to stockholders. Instead, we are able to actively listen to our Independent Insurance Agents. Our core values remain at the center of our business as we focus on people by building trust and strong, stable relationships with our agents and policyholders. We also focus on providing the best possible customer service experience by creating a collaborative environment, constantly being innovative, preparing our agents and team members by continually developing our skills and knowledge, and staying positively engaged in our communities. Much of our continued growth and success can be attributed to the loyalty of our exceptional IMT Agents and policyholders. Technology is a vital part of our business at IMT. We develop and maintain our own policy systems – all from our home office. Our systems are company-tested and agent-approved. In addition, we are committed to Social Media through our presence on Facebook, LinkedIn, Google+, and YouTube. We are committed to our independent agents and the future! People buy their insurance from independent agents because they know them, like them, and trust them. That is exactly the reason Independent Insurance Agents do business with The IMT Group. When you think of The IMT Group, you can be sure it is a stable company with an eye on the past and a keen sense for the future. We will continue to live up to our slogan, “Be Worry Free with IMT!” Local Independent Insurance Agents interested in learning more about The IMT Group can contact Matt Casey (Senior Manager – Field Services) at (800) 274-3531, ext. 897 or an IMT Group Wisconsin Territory Representative - Bruce Prince (Western Wisconsin) at ext. 823 or Larry Jendusa (Eastern Wisconsin) at ext. 832. Company Website: www.imtins.com

APRIL 2016 | 9

For more information, connect with Cathy Beaudin-ÂColĂłn, Sales Director, at 920.968.8326 or cbeaudin@imico.com

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Positioned for Growth • Genuine people – Known for employing the best in the business and offering top-notch service • Highly rated – A (Excellent) by A.M. Best and earned Ward’s Top 50 Performers list • Easy to do business with – Ranked among leading peers by agents for making business easier for 10 years • Exceptional claims service – Earn a “Perfect 10” most often when asking claimants about their experience • Partner with top agencies – Work with 475 independent agencies, only the finest in their respective markets • Broad product portfolio – Offer broad-ranging solutions for Commercial, Personal, Farm-Ag, and Specialty clients • Serving 12 states – Founded in 1900 Genuine People If you’ve been in the insurance business any length of time, you likely know SECURA. Its people are among the best in the industry, knowledgeable, and making it easy to write and retain business is their top goal. To that end, they are responsive, flexible, and build real relationships. If you don’t know that firsthand, ask someone who works with the company. You’ll be happy you did. Strong and Highly Rated The company aims to outperform the industry overall on topand bottom-line growth and typically does. Its strength is further evident as A.M. Best rates it A (Excellent) for the past 12 years. Ward includes SECURA in its Top 50 list, recognizing outstanding financial performance. Plus, agents rank the company among leading competitors for making business easier.

Partner only with Top Agencies Committed to the independent agency model, the company does business with more than 475 agents in 12 states. Agents value their SECURA contract because of the company’s relationship focus and service. The carrier’s extensive agent Dave Gross, President & CEO training programs also provide professional development opportunities for agents to increase sales and profits, with follow up to help put what they learned into practice. Broad Product Portfolio SECURA offers Commercial, Personal, Farm-Ag, and Specialty insurance products and services. The company is geared to grow in all lines of business in Wisconsin. Commercial Lines is the carrier’s cornerstone and largest business unit serving contractors, retail, light manufacturers, service providers such as restaurants and dry cleaners, and numerous other markets. Its consultative approach to Risk Management and its Work Comp Nurse Hotline set it apart from others, giving agents a unique offering as well. Personal Lines is SECURA’s second-largest segment, with its MILESTONE® home and auto package. This convenient single policy features lifestyle solutions for travel, toys, jewelry, art, and more. This premium package, ideal for Middle America, gives agents an edge in attracting and retaining customers.

Exceptional Service SECURA’s people are committed to taking care of policyholders when offering relevant insurance solutions, sharing safety resources, and especially when handling claims fairly and promptly. Policyholders appreciate the personal and compassionate service they receive.

Farm-Ag Lines, grown from the company’s farm heritage, serves a wide range of dairy, crop, hog, and hobby farms, plus seed dealers, ag transport, custom farming, and dairy products manufacturing. Its Specialty Lines covers a variety of unique risks such as nonprofits, sports and recreation, food pantries, campgrounds, fitness centers, food trucks, and security systems, as well as employment practices liability insurance and professional liability coverage for directors and officers.

Most often, the company’s claimants rate it a “Perfect 10” when asked about their claims experience. Perhaps it’s because of the personal phone call they receive within one hour of reporting an accident or loss, or maybe it’s because of the lengths someone goes to restore life to normal. This refreshing approach earns the trust of customers every day.

Momentum is Strength Agents know SECURA is a stable, long-term market for them. Its growth trend is a result of a history of investing in people, whether building successful relationships with agents or employing the very best. In the future, you will see the company continue devoting resources to people, products, and technology to stay in step with the dynamic market.

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Sentry Insurance Location of Company Headquarters: Stevens Point, WI Officers: Pete McPartland, CEO, President and Chairman of the Board Company Information: Sentry Insurance is proud of its Wisconsin heritage. From our start in 1904 providing insurance to members of the Wisconsin Retail Hardware Association, we’ve made Wisconsin our home. Sentry is one of the largest and strongest mutual insurance companies in the United States. With assets of more than $14 billion and a policyholder surplus of more than $4.2 billion, Sentry is rated A+ by A.M. Best, the industry’s leading rating authority.

Roger Kaland, Sentry Midwest Regional Executive

More than half of our 4,000 associates work here in Wisconsin. Most are based in our home office in Stevens Point, but we also have four offices in Madison and one in Milwaukee. Those field offices include our new Regional Business Line, underwriting standard commercial lines through independent agencies. We offer a broad range of products and your business is underwritten and serviced by people who are located in our state. A.M. Best Rating: “A+” (Superior) Company Website: www.Sentry.com

14 | APRIL 2016

WISCONSIN INDEPENDENT AGENT

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SOCIETY INSURANCE Location Of Company Headquarters: Fond du Lac, WI Founded: 1915 Senior Managers: Rick Parks, President and CEO William Reeves, Executive Vice President and COO Heather Boyer, Vice President – CFO and Treasurer Mike Zajicek, Vice President – Workers Compensation Claims Bill Bunzel, Vice President – Property, Auto and Liability Claims Amy Collett, Vice President – Human Resources & Administration Thomas Konop, Vice President – Information Systems D. Holly Lifke, Vice President – Commercial Lines Underwriting Dina S. Schultz, Vice President – Sales and Marketing Dominic Weber, Vice President – Actuary Products Company Specializes In: Society Insurance writes only commercial lines. As a niche market leader, the company has developed in-depth expertise in its core classes of business. Supported by long-term trade association endorsements from the Wisconsin Restaurant Association and the Tavern League of Wisconsin, Society writes policies for more than 25 percent of the food and beverage establishments in Wisconsin. Society’s strong tradition of association partnerships and niche expertise also extends into hotels and motels, grocery and convenience stores, artesian contractors and food processors, auto repair garages and health care clinics. The protection Society offers for its core classes of business is consistently some of the most comprehensive on the market. Workers compensation insurance was the first coverage Society wrote when it was founded in 1915, and the company maintains a strong presence in this complicated and specialized line of business. Society’s claim management process keeps costs low for policyholders by stressing early intervention, advocating a quick return to work and obtaining the best medical provider discounts. Loss control services are customer-focused and tailored to the needs of both small and large businesses. Society also offers a number of internet-based safety tools for customers of all sizes. This combination of strong claim management and tailored loss control is a true competitive advantage that eliminates many problems business owners and agents may otherwise experience with workers compensation insurance. Outlook for the Company’s Future Society Insurance continues to build on its strength as a regional carrier committed to service and value for its customers. In 2015, this focus helped Society Insurance continue to grow at a steady, sustainable pace. Since 2010, the company has

16 | APRIL 2016

Rick Parks

increased direct written premium by more than 21 percent and policyholder surplus by nearly 40 percent. As a niche market leader, Society does not try to be all things to all businesses. Rather, the company concentrates on doing what it does better than anyone else—insuring its core niches—and will continue to do so going forward. Because of this focus on niche markets, the company better understands the lines of business it writes and has exceptional knowledge and experience with issues that are likely to arise. Society looks forward to new opportunities and growth in 2016, as the company expands into the state of Tennessee. A select group of agents have been appointed to attract and service niche customers. Employees are already in place to provide local service, before the first policy is written. It is the company’s mantra to exceed expectations for all involved in this new venture. As Society explores new and innovative approaches to writing business and servicing customers in Tennessee, successful ideas and strategies will be applied in existing states as well. Other Comments In an industry not known for its creativity, Society isn’t afraid to be different. And it’s the small details at Society—they’re in each policy, and they’re in the way the company underwrites and handles claims—that set the company apart. Society knows that agents and policyholders have unique needs that don’t always fit neatly within a strictly defined category, so Society offers insurance uniquely tailored to the businesses they write. Sharing core values and a commitment to service with agency and association partners defines Society Insurance as a company where the small details make a big difference to agents and policyholders. Company Website: societyinsurance.com WISCONSIN INDEPENDENT AGENT

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THE TRAVELERS COMPANIES INC. Location Of Company Headquarters: Hartford, CT Founded: 1853 Officers: Lorie Kates, Regional President George Hogan, Regional Director Paul Kyrilis, Regional Vice President - Commercial, Technology, Construction, Public Sector Lorie Kates Linda Petrillo, Regional Vice President - Personal Insurance Lisa Pechan, Regional Vice President - Select James Gallagher, Regional Vice President - National Accounts Casualty Mike Powers, Regional Vice President - National Property John Tsourmas, Zonal Vice President - Excess Casualty Allen Warner, Regional Vice President - Inland Marine Brendan Dunican, Regional Vice President - Ocean Marine Paul Andriscin, Regional Vice President - Boiler & Machinery Beth Printz, Regional Vice President - Claims Gail Schroeder, Regional Vice President - Bond & Specialty Insurance Steve Ringler, Regional Risk Control Director

Outlook for the Company’s Future Travelers is an insurance leader, committed to keeping pace with the ever-changing needs of our customers, and anticipating their needs for the future. There is no stronger testament to our dedication to protecting customers from loss than our continued innovation and ability to transform our industry. Travelers is also committed to helping agents grow and be successful. Our people are professionals focused on delivering timely and professional service to you and our customers. We are local. With over 200 employees in Wisconsin, Travelers delivers the many attributes of a large national carrier through one of the best-staffed field offices in the state. Our staff understands the Wisconsin marketplace and is committed to developing productive relationships with you and our insureds while delivering products and services your customers are looking for. For example: 1. Travelers is the #1 writer of Commercial Lines & Workers Comp in WI.* 2. Travelers has received two “Buyers Choice Awards” from Business Insurance magazine, taking home the top honors among insurers in both the Workers Compensation and Commercial Auto categories.

4. Travelers Quantum Auto 2.0® was launched in 2013 in WI. Developed in close collaboration with our independent agents, this new auto product offers more competitive pricing to a broader range of consumers. 5. Travelers Claim is continually developing innovative tools and resources designed to help you and your customers stay safe, including our Prepare and Prevent site on Travelers. com, and our new Weather Alerts. Offered through Weather Services International (WSI), a professional division of The Weather Company, the weather alerts are sent to subscribers of the service in advance of an approaching storm reaching a particular location. Travelers understands that life and business are inherently dynamic and that the best way to serve customers is to deliver insurance that behaves the same way — evolving to keep in step with life and business as they change. Protect your clients under the red umbrella! Company Website: www.Travelers.com * 2014 AM Best Data

3. Travelers recently opened a new ConciergeClaim Nurse location in Milwaukee. ConciergeClaim Nurse® is a comprehensive workers compensation claim program designed to simplify the claim process for injured employees, enabling them to get back to work quickly and safely. ®

WISCONSIN INDEPENDENT AGENT

APRIL 2016 | 17

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WEST BEND MUTUAL INSURANCE COMPANY Location of Company Headquarters: 1900 South 18th Avenue, West Bend, WI 53095 Founded: April 1894 Officers: Kevin Steiner, President and Chief Executive Officer Dale Kent, Executive Vice President and Chief Financial Officer Tracey Berg, Senior Vice President and Chief Information Officer Gary Alexander, Vice President - NSI Bonds Heather Dunn, Vice President and Controller David Ertmer, Vice President - Claims Rick Fox, Vice President and Chief Actuary Paul Hingtgen, Vice President - Argent® Rob Jacques, Vice President - Commercial Lines Gary Klein, Vice President - NSI® Jim Pauly, General Counsel John Reyzer, Vice President – NSI Finance Jim Schwalen, Vice President - Personal Lines & Marketing Kelly Tighe, Vice President - Sales Christopher Zwygart, Vice President and Chief Risk Officer Debra Cahoon, Assistant Vice President - Human Resources

Products Company Specializes In: West Bend offers a broad-coverage personal lines package with multiple rating tiers for home and auto. Many innovative enhancements and features are also available. The company also offers a full range of commercial products and services, as well as specialty lines, such as social services, sports and leisure, special events, childcare, and bonds through NSI, its specialty division. Its monoline workers’ compensation division, Argent, works closely with agents and policyholders to determine their most critical workers’ compensation needs and improve results through loss control, medical cost containment, and education. Outlook for the Company’s Future West Bend is well positioned to capitalize on the current market conditions. In 2016, the company maintained its A (Excellent) rating by A.M. Best. A.M. Best also recognizes West Bend as one of the 100 largest property/casualty insurers in the country. West Bend was again named to Ward Group’s list of the 50 top-performing property/ casualty insurers, and is listed as a top company in a nationwide easeof-doing-business survey. The company will strive to maintain these rankings by advancing its technology, products, and services, while retaining its small-company, relationship-driven culture.

18 | APRIL 2016

Kevin Steiner

Mike DeLaney, Assistant Vice President - Argent Loss Control Scott Grinna, Assistant Vice President – PAS Program Management Mike Kapfer, Assistant Vice President – NSI Underwriting Jim Keal, Assistant Vice President - Argent Operations Jason Moore, Assistant Vice President – IT Business Application Services Laura Morrow – Assistant Vice President – NSI Claims Dave Nettum, Assistant Vice President – Argent Claims

Company Philanthropy The West Bend Independent Agents’ Fund was established in 2006 for nonprofit organizations served by the independent insurance agents who represent the company. Grants from the fund are aimed at improving these organizations and the lives of those served by them. In 2016, West Bend awarded more than $92,000 to nonprofit organizations supported by its independent agents. Grants awarded from the Independent Agents’ Fund now total more than $1 million. In August 2016, West Bend, along with independent insurance agents who represent the company and key business partners, will come together to raise money for the MACC Fund, Midwest Athletes Against Childhood Cancer. Since 2006, West Bend and the company’s independent agent partners have helped raise more than $1 million for the MACC Fund. Company Website: thesilverlining.com

WISCONSIN INDEPENDENT AGENT

SUPERIOR AGENCY SUPPORT. to our

EXCLUSIVE

As a member of The Motorists Insurance Group, Wilson Mutual Insurance Co. is able to provide one-on-one COMPANY relationships SPONSORS and outstanding support to its agency partners.

1 of 11 companies in The Motorists Insurance Group.

Personal lines products: Serving Wisconsin in the groupâ&#x20AC;&#x2122;s 24-state footprint.

homeowners, personal auto, mobile homeowners, dwelling fire, inland marine, personal umbrella and farmowners.

Commercial lines products:

1-on-1 familiarity with a district sales manager who supports your agency through field underwriting authority.

Superior claims service from an understanding team who is there when your clients need it most.

$1.2 million donated to charities in the communities we serve.

commercial package policy, businessowners, commercial auto, workersâ&#x20AC;&#x2122; compensation and commercial umbrella.

Wilson Mutual

is a member of The Motorists Insurance Group

Let’s make sure they always dig what they do.

Building working relationships since 1900 Commercial • Personal • Farm-Ag • Specialty

When you partner with SECURA, you’re family.

Watch: secura.net/partners

OPEN DOOR POLICY

IIAW LEADS EFFORT TO HAVE LGPIF LEGISLATION SIGNED INTO LAW It is no secret that instituting reforms to the Local Government Property Insurance Fund (LGPIF) has been a top priority for the Association this past legislative session. The LGPIF is (was) the largest property insurance fund of its kind in the country. The IIAW lead the effort in working with Governor Scott Walker, State Senator Frank Lasee (R- DePere) and Representative John Nygren (R-Marinette) to draft the legislation and get it passed unanimously in both the Senate and Assembly. In the last biennial budget, the IIAW Government Affairs team successfully advocated for the inclusion of a provision to shut down the LGPIF. We argued that the conditions under which the fund was created in the early 1900s no longer exist as Wisconsin’s private insurance market is more than capable of insuring the property risk of local units of government. Further, the fund has been experiencing financial difficulty for several years. We felt the time was right for taking such action. Unfortunately, at the eleventh hour, our provision to close the fund got caught up in unrelated policy and politics and was removed from the budget that was ultimately signed into law. Since then, Misha Lee (IIAW lobbyist) and I have been busy working with OCI to ensure corrective action is taken to protect taxpayers and ratepayers. To OCI’s credit, they have been extremely responsive and have been working to fix the problem. This mess wasn’t created by this administration, but they have certainly been taking the necessary steps to clean it up. As a result we have already seen rate increases on renewals as well as other measures intended to get the fund back on track financially. Over the last several months Misha and I, with the assistance of Scott Brookes and Jeff Thiel of R&R Insurance, have been working with Rep. Nygren and Sen. Lasee to get legislation passed to institute (in statute) many positive reforms. These measures will level the playing field for the private market to compete and create a unique opportunity for independent agents to write business that they had previously been almost unattainable. Jeff, Scott and I have testified in front of the Assembly and Senate insurance committees encouraging them to pass these common sense reforms. All of the hard work has paid off. Assembly WISCONSIN INDEPENDENT AGENT

Bill (AB) 584 was unanimously passed by On Thursday, March 30, Governor Walker signed 56 bills into law. The IIAW was the Assembly on February instrumental in the passage of Assembly Bill (AB) 584 being enacted into law. AB 584 requires the Local Government Property Insurance Fund to keep at least $1 in reserve for 19 and the Senate on every $2 in premium collected. From left to right: Cali Keller, staff of Rep. Nygren; Caroline March 15. Governor Krause, staff of Rep. Nygren; Jeff Thiel, R&R Insurance; Rep. John Nygren; Jennifer Walker signed the bill into Malcore, staff of Rep. Nygren; and Matt Banaszynski, IIAW Executive VP. law on March 30 and it goes into effect June 30, 2018. The law requires that the rate standards used to regulate private insurance, to the extent that rates are not excessive, inadequate, or unfairly discriminatory, shall apply to the rates set by the fund. The rates must be set by actuarial determination Standing behind Gov. Walker at the bill signing from left to right: Rick Clements; Ron Von to maintain the ratio of Haden; Rep. John Nygren; Caroline Krause; Jeff Thiel, IIAW; Cali Keller; Matt Banaszynski, the net premiums of the IIAW Executive VP; Rob Kovacs, Matt Phillips, Jeff Junkas, and Misha Lee, IIAW lobbyist. Not fund to the surplus of the pictured: Scott Brookes, R&R Insurance and Sen. Frank Lasee. fund at no less than 200 percent. If the ratio unit’s share of premiums paid. of net premiums to surplus rises above 225 We fully expect the department to continue percent, then the fund must levy an assessment to take corrective action to ensure the LGPIF’s against all of the local government units (LGU) stability (leading up to the effective date) as participating in the fund, in proportion to each insureds leave the fund and the composition LGU’s share of premiums written by the fund. of and risk in the fund evolves. Now thanks The law also provides that if an LGU fails to to our action, much of pay its assessment within 60 days of the due the existing business in date of the assessment, the LGU’s coverage the fund is headed to the under the fund shall be terminated. private market providing As with unpaid premiums, the fund can independent insurance collect unpaid assessments and charge agents across the state with such unpaid assessments against the LGU, the opportunity to write with interest, as a special charge. The Act new profitable business. also requires the fund to pay dividends to You can be proud of > Matt Banaszynski is participating LGUs when the fund has at least your government affairs the Executive Vice President of the $3,000,000 in surplus and the ratio of net team that lead the effort Independent Insurance premiums to surplus is less than 45 percent. to get this important Agents of Wisconsin. The new law directs the fund to pay dividends legislation passed and Contact him at matt@ iiaw.com. to participating LGUs in proportion to each signed into law.

APRIL 2016 | 21

Your customers like working with a local agent to handle their insurance. We think you deserve the same kind of attention. That’s why EMC has a fully staffed branch office in Wisconsin — to respond quicker and with a greater understanding of your area’s needs. It’s just one of the many reasons you and your policyholders Count on EMC ®. BECKIE JANUSZEWSKI, AIC Claims Supervisor EMC Milwaukee Branch

LOCAL SERVICE FOR YOU

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GOVERNMENT AFFAIRS

WORKER’S COMPENSATION CHANGES ENACTED WITH COUNCIL BILL APPROVAL Wisconsin’s Legislature and governor recently enacted changes, effective March 2, 2016, to the state Worker’s Compensation system that will impact employers and their workforce. These changes (2015 Wisconsin Act 180) came about as recommendations from the Worker’s Compensation Advisory Council (WCAC), a statutory body made up of appointed individuals representing key stakeholders from labor, management, insurers and medical provider community.

The Advisory Council bill, widely known as the “Agreed Upon” bill, is largely a compromise document of proposed changes to the Worker’s Compensation law negotiated every two years by members of the council and submitted to the Legislature for final consideration and approval. Despite the fact that the final bill once again did not address the issue of rising health care costs, overall, this session’s Agreed Upon bill produced some common sense reforms and improvements to the Wisconsin Worker’s Compensation system. These changes will mutually benefit both workers and employers. What is also important to highlight is the Walker Administration and Legislature’s unanimous support of the bill and reaffirming support for the Agreed Upon bill process that for years has been envied by much of the nation. Ensuring that the Legislature continue its strong tradition of looking to the Advisory Council for guidance on any changes to the Worker’s Compensation system is vital to maintaining a stable, predictable, and efficient system. This type of favorable environment serves to benefit everyone involved in the Worker’s Compensation program, including producers. However, enactment of the Agreed Upon bill did not occur without some controversy this legislative session. In particular, a handful

The final bill once again did not address the issue of rising health care costs but it did produce some common sense reforms and improvements to the Wisconsin Worker’s Compensation system.

bill was introduced last year that would have undermined the entire framework of the system with elimination of a provision in current law related to the “exclusive remedy” whereby the law states that employees give up the right to sue in court in exchange for scheduled, fixed benefits without having to prove fault. While this process is certainly not perfect, it is one that helps employers avoid the high costs of being sued over every single work related injury. The Worker’s Compensation law makes several changes to the state’s WC system, including: • The statute of limitations for traumatic injuries is reduced from 12 years to 6 years. • The maximum weekly compensation rate for permanent partial disability is increasing from $322 to $342 for injuries occurring before January 1, 2017, and to $362 for injuries occurring on or after that date. • Violation of an employer policy against drug or alcohol use that causes the employee’s injury, will result in neither the employee nor the employee’s dependents receiving any compensation, including the death benefit, relating to that injury. This provision does not reduce or eliminate an employer’s liability for the cost of treating the employee’s injury. The current law states, if an employee is injured as a result of intoxication by alcohol controlled substances the compensation, including the death benefit, is reduced by 15 percent.

of state lawmakers sought to circumvent the

• An employer can now terminate an employee while they are on light duty following a workplace injury for misconduct. “Misconduct”

Advisory Council process by proposing major changes to the Worker’s Compensation system with or without support from the Advisory Council. A competing Worker’s Compensation

is defined under the law as “action or conduct evincing such willful or wanton disregard of an employer’s interests as is found in 1) deliberate violation or disregard of standards of behavior

WISCONSIN INDEPENDENT AGENT

that an employer has a right to expect of his or her employees; or 2) carelessness or negligence of such degree or recurrence as to manifest culpability, wrongful intent, or evil design in disregard of the employer’s interests or to show an intentional and substantial disregard of an employer’s interests or of an employee’s duties and obligations to his or her employer.” • The department will fund one Department of Justice (DOJ) position to investigate and prosecute fraud committed by employees, employers, insurance carriers and providers. Go to dwd.wisconsin.gov/wc/councils/wcac/ for a full plain language list of all recent changes to the Worker’s Compensation law provided by the Wisconsin Department of Workforce Development Worker’s Compensation Division. Now that the 2015-16 Agreed Upon Bill has been enacted into law, the Advisory Council and Worker’s Compensation Division have already begun preliminary discussions on what changes and improvements to the system in next session’s bill might contain. As producers on the front lines, if you have any suggestions or ideas on how to improve our state’s Worker’s Compensation system, please share them with us by contacting the Association offices. > Misha Lee is Owner/ We once again look Founder of Lee Government Relations, forward to monitoring LLC and lobbyist the next Agreed Upon for IIAW. Follow Lee bill process and providing Government Relations on Twitter @mishavlee. feedback on your behalf.

APRIL 2016 | 23

COMMUNITY SERVICE

Students and representatives of UW-Stevens Point gather to receive a $4,000,000 gift from Sentry Insurance.

SENTRY INSURANCE GIVES UW-STEVENS POINT LARGEST GIFT IN CAMPUS HISTORY

Sentry Insurance presented the University of Wisconsin-Stevens Point with the largest donation in the university’s 122year history today. The gift of $4 million will endow two new faculty positions and create a new major in data analytics. The gift is the largest single donation Sentry has ever made to any organization. “This is more than an incredibly generous gift,” said UW-Stevens Point Chancellor Bernie Patterson. “It is an investment in the future of the university and our community, and a vote of confidence in how UW-Stevens Point is preparing students for changing needs in the business world.” A new undergraduate major in data analytics will be offered, beginning in fall 2016, pending UW Board of Regents approval. The program will feature an interdisciplinary curriculum that integrates the fields of business, computer science, economics, geographic information systems, mathematics and statistics.

The gift of $4 million will endow two new faculty positions and create a new major in data analytics. “The availability of data as well as the technology to imaginatively use the data has been growing exponentially in recent years,” said Pete McPartland, chairman of the board, president and CEO of Sentry Insurance. “Employers have not been able to WISCONSIN INDEPENDENT AGENT

train data analytics professionals fast enough to keep pace with the growing demand. Sentry’s commitment to helping fund the creation of a data analytics program at UWStevens Point will help employers benefit from the rapidly changing world of data availability and usage.” The Sentry gift endows two faculty positions. The Sentry Insurance Endowed Chair in Computational Analytics will be part of the Computing and New Media Technologies Department. The Sentry Insurance Endowed Chair in Business Analytics will be part of the School of Business and Economics. Sentry needs employees with both of these business and computational analytics skills. “Being able to analyze data and make decisions based on data is a competitive advantage in the short-term. Soon, businesses will have to do it to thrive,” said Tim Krause, associate professor and department chair, Computing and New Media Technologies. Interviews with local employers from retail, manufacturing, health care, agriculture, insurance and software development industries in 2015 revealed a growing data analytics talent gap in the region.

Employers indicated they need significantly more employees with the ability to analyze datasets, interpret observations, develop hypotheses, communicate findings and facilitate organizational action, said Lyna Matesi, assistant professor of management. Data analytics involves acquiring and storing data, validating it, mining and analyzing data, visualizing data and disseminating it. Business analytics includes econometrics, computational finance, decision sciences and marketing analytics. Sentry and UW-Stevens Point have a long history in this community, Patterson noted, with both founded more than 100 years ago. Sentry also has a long history of supporting the university. The $4 million gift more than doubles Sentry Insurance’s support to UWStevens Point since 1985. Endowment proceeds will support activities such as collaborative research, outreach and related student-faculty activities of the chair. National searches for analytics experts will begin immediately. Sentry’s commitment is a cornerstone gift of the quiet phase of UW-Stevens Point capital campaign, which is scheduled for a public announcement this spring.

APRIL 2016 | 25

VIRTUAL UNIVERSITY

LATE PAYING CLIENTS:

TO CALL OR NOT TO CALL Not much gets a “fight” going quicker in an E&O class than addressing the question of, “If a direct billed customer is late in making their premium payment, should the agency contact them?” Almost every answer and suggested solution offered has its own pitfalls. It’s almost the proverbial, “You are damned if you do, and damned if you don’t.” An agent recently sent me a question directly on-point. Her customer had actually sent this to her in an email: As you are aware, I have experienced several instances of late payments, missed payments, and insurance expirations during the years your office has been servicing several of our policies. “If we have one more instance of a policy expiration because you failed to send us (or my clients or relatives) a courtesy reminder, I see no choice but to take my business elsewhere. I trust you understand my position. My gut reaction was, “Huh?” I’d translate what the customer said as, “I am not responsible enough to pay my bills on this, and that is your problem.” I replied to the agent, in part, saying, “I use Quicken on my home computer to track my finances. When I pay bills I record them in Quicken. I have reminders set up for recurring bills. For example, about three days before my utility bill usually arrives to me via email I get a ‘pop up’ reminder when I log into Quicken. It stays there until I either pay the bill or delete the reminder. I’m an adult, not a 12-year-old child any more, and if I fail to pay a bill, it’s my fault; why blame someone else for it?” I ran this issue by SwissRe/Westport (FAIA’s lead E&O carrier) for their thoughts. Two vice presidents and senior underwriters (one is an attorney) stated that their official position is agencies should not send “courtesy reminders” or make “courtesy reminder calls.” One underwriter said this, “Our official policy is always don’t do it when it comes to giving billing notices, but I know some agencies will ignore that advice in the real world. If they do go the other route as some will, even though we don’t recommend it, then I think it is important that they are consistent in applying the procedure that they do establish across the board to everyone equally.”

were not. One commercial customer was late on a regular basis. As it turned out, they were located in the same building as the agency. So, agency staff would walk upstairs and hand deliver the late notice with a reminder to pay. The agency also wrote the personal lines account of the business owner, including an auto policy for his daughter. The daughter had an accident and there was no coverage because the personal lines auto policy had lapsed for non-payment a few weeks earlier; the personal lines department did not contact customers who were late, and the customer pursued the agency claiming, “You treated my daughter differently than you treated me.”

If an agency currently contacts customers who are in a late pay status but wishes to stop the process, proper notification is the key. All customers should be advised that the agency will no longer contact them in late pay situations.

I’ve run across several agencies that are split between various departments such as large commercial, small commercial, high-networth personal lines, and “main street” personal lines. One agency told me (during an E&O class!), “We contact our high-net-worth personal lines customer, but not main street personal lines customers.” I wonder how that would play out in a deposition when the agency was asked why they did not remind Mr. Smith, who had a $200,000 house, that his premium was late? Would the answer be, “Oh, he’s not highnet-worth?” I doubt that would play out very well.

That underwriter’s response is the proverbial “invariable practice” concept. That means that all customers are pretty much treated the same way. In other words, if the agency elects to contact customers who are late paying, then every customer should be contacted. If the agency position is that no customers are contacted, then as I joke, “If your momma is late you better not call her!”

Agencies should recognize that if they voluntarily elect to remind customers of a late payment, they have likely raised the duty of care owed to that customer. If the agency fails to send the reminder notice or make the reminder call, the customer could easily look to the agency and say, “You didn’t call me.”

For example, in one actual claim, the agency had a procedure whereby commercial customers were contacted, but personal lines customers

In fact, this exact situation came up during an agency visit I made after Hurricane Charlie. A customer came into the office to report a loss a

26 | APRIL 2016

WISCONSIN INDEPENDENT AGENT

VIRTUAL UNIVERSITY

few days after Charlie hit in August. The CSR advised the customer, “Your policy lapsed in May for non-payment.” The customer asked for the owner, and told him, “If my house has big damage and I have no coverage I am coming after you; your staff always called me before if I was late and no one ever called in May.” Luckily, the damage to the house was below the hurricane deductible. The agency owner told me face-to-face, “We got darn lucky here.” What, then, is the best procedure if the agency decides not to contact customers who are late paying? What if the policy cancels; then what? Should a “final close-out letter” be sent? If so, and if that were done several times and that letter wasn’t sent, would that also create an E&O exposure? SwissRe’s comments were: Your ‘damned if you do, damned if you don’t’ analysis is spot on. For direct bill policies, our recommendation is that the agency should never contact the customer regarding payment of any kind PRIOR to lapse/cancellation. However, immediately after the policy lapses, they can and possibly should contact the customer and ask if they want to remarket or try to rewrite the account. I don’t believe that by contacting them after the fact of the cancellation/ lapse, regardless of how many times they do/don’t do it, they would be held responsible. Of course, a court may prove me wrong, but we’ll see when that happens as I’m not aware of any such situation.

If an agency currently contacts customers who are in a late pay status but wishes to stop the process, proper notification is the key. All customers (even those who are never late) should be advised that the agency will no longer contact them in late pay situations. As always, documentation of this notice is key. SwissRe even stated the following: I’ve always recommended that the agency send out letters certified mail return receipt requested to properly document that they 1. sent the notice, and 2. that the customer received it. I virtually always get pushback about the cost but I tell them that the minimal cost for those receipts they spend is less than their deductible for a claim if they have one customer claiming they didn’t get the letter. That is, perhaps, a lofty goal. It does, however, come straight from the professionals who make their living defending agencies in E&O claims. The ultimate decision on whether to contact customers in a late pay status lies with the agency. Invariable practice and proper documentation are key in making the decision.

> David Thompson is an education instructor with the Florida Association of Insurance Agents

The Virtual University is a Big “I” members-only resource. Many articles are based on real-life questions received by the Ask an Expert service. This service ensures that the information is current and topical. Go to www.independentagent. com/Education/VU/. You will need to login with your IIABA username and password before using the VU. The IIABA does not assume and has no responsibility for liability or damage which may result from the use of any of this information. WISCONSIN INDEPENDENT AGENT

APRIL 2016 | 27

TECHNOLOGY

SMALL COMMERCIAL & THE CHALLENGE OF REAL TIME RATING

In July 2015, Agents Council for Technology (ACT) executive director Ron Berg held a discussion with a number of interested industry representatives to determine interest in real time rating and gauge whether a work group should be formed. In August, the recommendation for the work group progressed when Jim Armitage and I hit the ground running as co-chairs of ACT’s new Small Commercial Real Time Rating Work Group.

The group is looking at how we as an industry technology community can help the small commercial segment take advantage of rating systems that decrease manual input and increase speed and accuracy in the quoting process. As we have talked, it has become clear there is general agreement on a few ideas:

Of course, we agreed on many other matters, but these rose to the top as main issues. The Real Time Rating Work Group has attracted one of the largest memberships of any ACT work group ever—52 members at this point, evenly split between carriers, agents, vendors and association members. The size of the work group might present a great opportunity to develop subgroups that focus on:

> Carriers are spending a lot of money developing real time rating solutions, but— when they roll the product out—they aren’t getting robust agency uptake.

DImproving the current state (bridging) DDeveloping the desired end-state of true

that would allow us to take the first steps toward our destination: workable real time rating for small commercial lines. We decided that, to hone the discussion in a manner that best reflects stakeholder concerns, we would send out a survey to ACT members. The survey will help us determine how many agents and brokers are using a bridge solution and how many are using a real time rating solution. It also gives those not using real time the opportunity to rank each of seven reasons they don’t use such a rating product.

round trip real time rating

> Carriers and agents are frustrated because they see value in real time rating but just haven’t achieved a consistent, workable solution yet.

> Out of all the general commentary, we need to figure out what the most significant pain points are.

The seven reasons listed on the survey are: We sought comments from our new work group members, and with their excellent and varied input, we were able to build a collage depicting a segment in need of many solutions. There were, however, so many good suggestions and comments that we needed to distill them to provide a targeted road map

1. Needing similar workflows among carriers 2. Experiencing too much differentiation between underwriting questions

3. Finding it’s easier to go directly to the

The Small Commercial Real Time Rating Work Group is looking at how the industry technology community can help the small commercial segment take advantage of rating systems that decrease manual input and increase speed and accuracy in the quoting process. 28 | APRIL 2016

WISCONSIN INDEPENDENT AGENT

TECHNOLOGY carrier’s website

4. Having problems with connectivity or setup

5. Receiving too many error codes when using

through stakeholder input is that we as an industry need to clarify the definition of “small commercial.” Is it under 50 employees? Is it revenue-based rather than employeebased? How different is small commercial from “micro commercial”?

a real-time rater These are issues that need to be hashed out because processes and programming are responsive to agency business profiles. It’s important to note that the more complex the risk, the more difficult it is to rate and the harder it is to develop easy-to-use automated solutions that work for the risk.

6. Having an overall challenge with commercial-specific data (e.g., loss runs, etc.)

7. Finding no solution that fits the agent’s current workflow The survey went out to carriers, agents, vendors and association members in the ACT community. Once we get all the responses compiled, the work group will analyze the data and then share it. I hope we will be able to zero in on the top pain points. Our goal is to work together as an industry to strengthen the independent agency channel. After the survey data is compiled, maybe we will be able to develop a best practice guide that boosts real time development and adoption. One concern that we’ve already discovered

Some of the challenges I expect we will hear about are technology related issues across the industry and our inability to provide agents with an easy-to-use, consistent user experience and an accurate fast quote they can “take to the bank.” So, can we fix everything very soon? No, but we feel we can build an informed coalition that grapples with the biggest obstacles to development and adoption of real-time rating. And we feel we must do that.

There are cutting-edge companies already doing this online in the small commercial space, and we all know that direct writers are grabbing market share in the personal lines arena using real time rating. The independent agency channel in the small commercial lines market needs this competitive edge. When asked what sets the independent agent apart, most typically respond, “Service.” If the majority of agents think their competitive advantage is service, then it’s not a competitive advantage at all. They need to offer more as part of their value proposition. Customers have spoken pretty clearly that their definition of service can be encapsulated in three words: speed, accuracy and expertise. If you are getting beaten on the first two, the third might not be relevant.

> Susan LaBarre is co-chair of the ACT Real Time Rating Work Group.

THE RIGHT MIX

Austin Mutual Insurance Company’s rich tradition and strong Wisconsin presence set us apart from other property/casualty carriers. Day in and day out, our Wisconsin field marketing and underwriting team partners with our independent agent-customers to drive mutual profitable growth via our competitively-priced commercial lines product suite. Our comprehensive Main Line Business Owners Policy (Main Line BOP) program, which includes our successful Contractors, Office, Retail and Service classes, as well as our surety and fidelity bonds, are ideal for your “Main Street” insureds. We also provide your customers with our WOW! claims service. Let our experience and local market knowledge win for you! To learn more about how we team with our Wisconsin customers to achieve success in The Badger State, please contact Wisconsin field representative Karen Miller at (651) 308–8505 or MillerK@msagroup.com.

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APRIL 2016 | 29

MARKETING

THREE REASONS WHY INSURANCE AGENTS STRUGGLE WITH DIGITAL MARKETING Insurance agents who use and master digital marketing put themselves a step ahead of their competition. Unfortunately, most agents today still do not take advantage of this amazing opportunity. Insurance agents offer a tremendous about of education to a client in a one-on-one situation, but often become paralyzed when it comes to putting the same type of information in writing or video. Why? I believe there are many reasons, but I feel three stand out above the rest: 1) Uncomfortable sharing knowledge for free. Most long-time service professionals, especially insurance professionals are uncomfortable sharing their hard-earned knowledge for no charge. In essence, when you share your industry knowledge in a blog post, you are giving free consultative advice. Initially, that is hard to swallow for some.

When you share knowledge online you are gaining likability, credibility and trust with your audience.

The truth is that, at the same time, you are also gaining likability, credibility and trust with your audience. This is the same audience member who may not only buy from you, but also become your largest promoter. Also, insurance professionals think they have “secret knowledge” that separates them from the competition and that would be compromised if they share it for free in a blog post or video.

30 | APRIL 2016

I hate to tell you this, but you are not as smart as you think you are. There is a good chance that “Mother Google” knows someone just as smart. You may as well get Mother Google to know you help others find you.

Z Where do you think many of your prospects and customers look for immediate answers to their questions?

2) Fear of saying the wrong thing in a permanent public forum. I was once told that the “e” in email doesn’t stand for “electronic,” but instead it represents “eternal.” That is also

Z How many social media sites do they visit daily?

true in blog posts and social status updates.

in the digital space, you are missing a huge opportunity. I am well aware that you have literally hundreds of activities you could do daily, but I would suggest you make some time creating educational content that engages and provides value to your audience.

You should be careful and thoughtful in the content you release. Your content must be appropriate, applicable, and accurate. However, you can’t let the fear of making a mistake outweigh the benefits of getting your content in the public eye. There will always be risks, but just like saying goes, “No risk, no reward.” Yes, digital marketing is public and eternal. Use that to your advantage. Leverage and embrace that fact and don’t run from it. I have blog posts I wrote three years ago that still get 50 views per day. 3) Lack of time available to produce content. Everybody wants more time. Everyone is too busy. The question becomes time allocation. Is creating digital content worth the time? I would resoundingly say yes, but let me ask you some questions:

Z How many times do they search?

If you or your insurance agency isn’t visible

The Bottom Line Creating digital content isn’t easy and that’s why most insurance agents don’t spend time or energy creating posts, video or update their social media profiles. You have to remember that creating digital content is not about you. It’s about your audience and reaching the people the exact people who could buy from you.

> Brent Kelly is the co-founder and CEO of BizzGrizz Marketing. Brent is a featured speaker at the 2016 IIAW Annual Convention.

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CONTINUING EDUCATION

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FOR MORE CLASSES AND TO REGISTER, PLEASE GO TO IIAW.COM

The 80’s Called

They Want Their Broker Back We think that Bob Dylan put it best when he said, “The times, they are a changin’”. So has the insurance industry. To be truly successful in today’s market, you have to be innovative. You have to think differently. And you have to have industry expertise. That’s why at Compass Specialty Risk, we’re changing the status quo in the traditional wholesale model. We deliver experience, expertise, and a diverse array of domestic and international markets that help you and your agency remain, well…truly innovative and different. Separate yourself from the pack and experience what a different kind of broker can do for you.

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CA Lic. #0K19733 APRIL 2016 | 33

SALES

BREAK THROUGH THE INFORMATION BARRIER

Ever hear of the answering reflex? The impulse to answer a question -- any question -- is as automatic as the “fight or flight” response. You need to ask questions to start a sale, but you need to ask the right questions to close one. Unless you learn to probe and clarify throughout the entire Good salespeople get answers to sales process, you’ll never uncover a prospect’s hidden objections. Why is getting the inside story so hard? After all, didn’t I just say that the answering reflex guarantees that people will respond to your questions? The problem is that those responses won’t necessarily give you the whole story.

Four Basic Barriers To be a successful salesperson, you must thoroughly understand the four reasons why ordinary questioning skills aren’t enough, and why the ability to probe and clarify is the greatest determiner of success. The four reasons are: 1. People don’t volunteer information. 2. People talk in generalities. 3. People make wrong assumptions. 4. People perceive things differently. These four communications problems make it necessary for every salesperson to develop the skills of a detective tackling a baffling case. Good salespeople get answers to their questions. Great ones probe and clarify each answer until they’ve solved the mystery. To get that order signed takes nothing less than detective work at every stage of the selling process.

Breaking Through the Barriers >>Barrier #1 The first problem -- that people don’t volunteer information -- comes up all the

34 | APRIL 2016

time when you’re selling. A prospect might say, “We’re not ready to make a decision yet,” never volunteering that the “we” refers to a committee of six that must have proposals submitted in writing, and the “make a decision yet” refers to a meeting next month. Though these are crucial details, the prospect isn’t going to volunteer them. It’s up to you to probe and clarify to get a full understanding of the situation. >>Barrier #2 People buy specifics, but often talk in generalities. Their reasons for agreeing or objecting to your sale can be very precise, but they’re unlikely to state them. Even when people think in specifics they are often too lazy, afraid or impatient to state their real feelings. And many times a prospect’s reasons for turning you down may be very vague: perhaps a feeling of distrust caused by your tone of voice or lack of eye contact. What is a salesperson to do with general answers like “I’ll think about it”? What will the prospect be thinking about? You don’t know what aspect of the sale he will be dwelling on. Find out, and if need be refocus his attention where you want it. Respond with, “That’s great. I’m glad you’re going to be thinking about this. What exactly will you be focusing on?” It’s natural to enjoy hearing a prospect say “I liked your policy proposal,” but this is one gift horse you have to look in the mouth and ask, “What exactly did you like about it?” A standard objection like “I’m not ready yet”

their questions. Great ones probe and clarify each answer until they’ve solved the mystery. could mean anything from “I don’t like you” to “I don’t have the money” to a dozen other concerns. Unless you probe and clarify you have no idea what to focus on to convince the person these concerns won’t affect the satisfaction or value of your product or service. Barrier #3 People make wrong assumptions and I know this from my own experiences. Early on in my sales career I made an overly pessimistic assumption that cost me dearly. As an account executive for the catalog division of Grey Advertising, my job was to secure retailer and mail order companies to use our services. I never contacted the very large stores because I assumed they must already have an agency. It wasn’t until my boss pointed out my unfounded supposition that I started calling on the big guns. In no time my commissions doubled: it turned out > Dorothy Leeds is that even the largest renowned teacher, stores were interested author, performer and in our services. keynote speaker. She You can’t assume anything. When a

is a master salesperson and communicator. Learn more at dorothyleeds.com.

WISCONSIN INDEPENDENT AGENT

SALES prospect says, “I’ll take it into my boss” or “I’ll talk to my spouse about it,” most of us assume these are positive signs that the sale is progressing. But the prospect could be planning to tell his boss to hold off on the purchase. Unless you probe and clarify the statement you’ll never know where the sale really stands. Next time you hear, “I have to talk it over with my wife,” probe that answer by asking, “Do I understand you correctly that if your wife likes it you’ll be ready to proceed?” Barrier #4 The final obstacle to communication is the fact that people perceive things differently. How I perceive a situation will be quite different from how you perceive it. That’s because everyone’s perceptions are based on past experience and present desires. So if I say, “let’s go out to dinner,” the scene those

words conjure up in my mind is probably very different than what you envision. Such differing perceptions can play havoc with a sale. When a prospect says, “let’s close the deal,” you might take that to mean a signed contract with money up front, but to your prospect it means one more round of negotiations. One area where perceptions always vary is people’s perception of their own importance. It’s natural for a person to have a heightened sense of his or her own significance. However, prospects frequently perceive

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themselves as decision makers when they can’t really give the final okay. Be sure that when a prospect says, “I’m ready to close the deal,” he has the authority to do so.

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S W E N E H T N I S R E B MEM ACUITY In Top 2 of 100 Best Companies to Work For ACUITY moved up to number 2 in the entire nation on the 2016 FORTUNE “100 Best Companies to Work For®” list. This is the second consecutive year ACUITY was named to the large-company list and a spot in the top three. “We are tremendously honored and proud to move up to number 2 in the FORTUNE ‘100 Best Companies to Work For’ list, and the credit for this accomplishment goes to our people,” said Ben Salzmann, ACUITY President and CEO. “Our knowledgeable, experienced, and enthusiastic people make the difference in delivering on the promise we make as an insurer. Their enthusiasm is the most important component of creating a great workplace and maintaining the culture for which we are known.” The FORTUNE “100 Best Companies to Work For” list recognizes businesses that have exceptional workplace cultures. From FORTUNE: “’Have Fun’ is a core value at this property and casualty insurer. Four ping-pong tables and a popcorn machine sit outside their cafeteria. Their summer family picnic is packed with rides, $250 door prizes, an adult casino, and human foosball. The lucky winner of Bossy Bingo left the festival with $5,000. Selfie days and beach bashes come together with high salaries (an average of $16K above industry average) and generous merit increases. Their Sheboygan headquarters boasts the country’s largest flagpole at 400 feet.”

Dick’s areas of expertise in his law practice include tax and corporate matters for property and casualty insurance companies such as ACUITY. “It is a real honor to join the Board of Directors of ACUITY,” Dick said. “The company has a stellar reputation as a leader in the insurance industry for financial success, customer service, agent Dick Riley relations, and as a great place to work. I am grateful for the opportunity to join the ACUITY team and to help maintain and grow its success from the corporate governance standpoint.” Dick is a native of Mississippi. He is a graduate of Yale University and Duke University School of Law. Dick has practiced law in Washington, D.C., for over 30 years as an associate and partner of the Foley & Lardner law firm and its predecessor firms. He has represented and advised insurance companies on tax and corporate matters throughout his career, and was a member of the Foley team that represented ACUITY in a successful case in the U.S. Tax Court in 2013. Dick lives in Charlottesville, Virginia, with his wife, Mimi, a law professor at the University of Virginia. They have a daughter and two sons. For more information about ACUITY, please visit Acuity.com.

Being a best workplace is a key reason ACUITY’s growth rate over the past 15 years is more than twice as high as its industry peers. It is also a factor in ACUITY’s low voluntary turnover rate and in the service excellence for which the company is known. “Being a great place to work is not just about how we treat employees. It’s not about gifts, facilities, or workplace perks. It’s about how employees treat each other and believe in who we are,” said Joan Ravanelli Miller, General Counsel and Vice President - Human Resources.

Integrity Announces Leadership Circle Agencies Integrity Insurance, a property and casualty carrier, is proud to announce 15 agency partners throughout Iowa, Minnesota and Wisconsin have earned a spot in the 2016 Leadership Circle, which honors top-tier agencies for their accomplishments in 2015. To achieve Integrity’s Leadership Circle status, these agencies met specific criteria based on premium, profitability, growth and loss ratio.

This is ACUITY’s second year of eligibility for the list of top employers with more than 1,000 employees. Previously, ACUITY had been eligible for the mid-sized employer list and earned the number one spot five times. In 2015, ACUITY was also named the Best Workplace in Insurance, a top-five Best Workplace for Millennials, a top-10 Best Workplace for Camaraderie, and one of the 100 Best Workplaces for Women.

“We’re honored to work with the best of the best,” said Integrity Insurance President Jill Wagner. “These 15 agencies are a major contributor to our success providing top-notch service and expertise to policyholders. We’re grateful for their commitment and partnership.”

Dick Riley Named to ACUITY Board of Directors

The 2016 Leadership Circle Wisconsin agencies include:

Richard F. Riley, Jr. (Dick) is the newest member of ACUITY’s Board of Directors. Dick is a tax partner in the Washington, D.C., office of the law firm Foley & Lardner LLP, which is headquartered in Milwaukee.

• Ansay & Associates • Brehmer Agency • Couri Insurance Agency

36 | APRIL 2016

WISCONSIN INDEPENDENT AGENT

S W E N E H T N I S R E B MEM several insurance designations. He currently is pursuing a degree at the University of Wisconsin–Oshkosh. • CRW Insurance • HNI Risk Services LLC • Indianhead Insurance Agency Inc • R&R Insurance Services

Integrity Promotes Cartier Integrity Insurance is proud to announce the promotion of Jana Cartier to Casualty and Litigation Claims Director. Cartier joined Integrity Insurance in 2006 as Liability Claims Rep. During her tenure she has received multiple promotions, most recently serving as Casualty and Litigation Claims Manager. This latest promotion gives Cartier an expanded role in the claims department working on claims trend analysis, quality and productivity in addition to continuing her responsibilities in casualty claims and litigation. “Jana is a leader at Integrity with a proven track record,” said Christian Martin, Vice President Claims & Sales. “Her ability to look forward and better how we service customers is second to none. I’m confident Jana’s past success will carry over in this new role.”

Jennifer Haas was promoted to Vice President–Research & Development and Training. Jenny joined SECURA in 2006, served as a training manager and product development manager for Commercial Lines, and was promoted to Director– Research & Development in 2008 where she led efforts in state expansion and product development. Jenny earned her B.A. from Marian College and her M.B.A. from UW–Oshkosh. She holds several insurance designations and has extensive training in leadership and management. Tony Brecunier

Jana Cartier

Jennifer Haas

Cartier has more than 17 years’ of experience in the insurance industry. For more information about Integrity, please visit IntegrityInsurance.com.

SECURA Names New Vice Presidents “These people exhibit the best about our company,” said Dave Gross, SECURA President & CEO. “They have the strong leadership, vision, values, dedication, hard work, and expertise to back it all up.” Employees recognized include: Tony Brecunier was promoted to Vice President–Workers’ Compensation Claims. He joined SECURA in 1999 and served in various management positions. As Director–Workers’ Compensation Claims, he led several initiatives, including improving customer service to our Spanish-speaking customers and implementing Nurse Hotline. As VP, Tony will lead the Claims predictive modeling efforts and assume responsibility for Subrogation. Tony holds WISCONSIN INDEPENDENT AGENT

Sandra Hupfer

Jeff Kargus

Sandra Hupfer was promoted to Vice President–Casualty Claims. She joined SECURA in 2009 as a Claims Attorney and was promoted in 2011 to Manager– Litigation, and to Director–Casualty Claims in 2014. Prior to joining SECURA, she was an attorney and shareholder at Stellpflug Law in De Pere, Wis., (now named One Law Group). Sandy received her bachelor’s degree in music from UW–Oshkosh and her Juris Doctor degree from the University of Wisconsin Law School. She is a member of the State Bar of Wisconsin and Wisconsin Defense Counsel. She has in-depth leadership training and will continue to provide competitive analysis for strategic planning. Outside SECURA, she serves on the Board of Directors for the Fox Valley Symphony. Jeff Kargus was promoted to Vice President–Controller. He has served as Controller since he joined SECURA in 2003, and is responsible for internal financial and management analysis, reporting and controls, enterprise risk management, expense management, and external compliance and tax reporting. Prior to joining SECURA, he was a Vice President at Thrivent Financial.

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APRIL 2016 | 37

S W E N E H T N I S R E B MEM CONTINUED FROM PREVIOUS PAGE

Jeff earned his B.B.A. in accounting and an M.B.A. from UW– Oshkosh. He is a member of the American Institute of CPAs, the Wisconsin Institute of CPAs, and the Financial Executives Institute. He also is a member of the UW–Oshkosh MBA Advisory Board and Fox Valley Lutheran High School Finance Committee. “They’ve definitely earned it,” said Gross. “And while their professional accolades are important, it’s who they are as people that has made them stand out and made the difference in their success.” For more information about SECURA, please visit Secura.net.

J.M. Wilson Adds WolfPierce as Property & Casualty Underwriter J.M. Wilson is pleased to announce the addition of Suzane Wolf-Pierce as Property & Casualty Underwriter in their Madison, Wisconsin office. Suzane is responsible for quoting new and renewal Property & Casualty business, working with company underwriters, and serving independent insurance agents.

Suzane Wolfe-Pierce

Prior to joining J.M. Wilson, Suzane was a Senior Policy Services Representative for the Local Government Property Insurance Fund at an Insurance Management Company. She was also a Field Automation Consultant for Wisconsin and Illinois for an Insurance Company. Suzane earned a Master’s degree in Business Administration, as well as a Bachelor’s degree in Business Marketing from University of Phoenix.

J.M. Wilson Adds Two Senior Transportation Underwriters Phyllis Aranda

J.M. Wilson is proud to announce the promotion of Genelle Groh and Phyllis Aranda as Senior Transportation Underwriters in their Arlington Heights, Illinois office. Genelle and Phyllis have been with J.M. Wilson for eight years and are responsible for quoting new and renewal transportation risks, collaborating with company underwriters and serving independent insurance agents in the states of Illinois and Wisconsin.

Genelle Groh

Underwriter status by exhibiting strong product knowledge and sales ability, leadership skills, dedication to the corporate culture, and through facilitating formal training sessions for related departments. For more information about J.M. Wilson, please visit jmwilson.com.

Mt. Morris Mutual Holds 141st Annual Policyholder Meeting The 141st Mt. Morris Mutual annual meeting was held Feb. 24 at the Richford Community Center. Mt. Morris Mutual is a non-assessable, domestic mutual insurance company domiciled in Richford. The company proudly serves nearly 19,000 policyholders throughout Wisconsin’s 72 counties. The company was founded on Sept. 7, 1875, in the Township of Mt. Morris, Waushara County, and has been domiciled in the county since its existence. Twelve farmers met in the town of Mt. Morris, each donated a dollar and Mt. Morris Mutual was born. In 2015, Mt. Morris celebrated 140 years of servicing Wisconsin families and businesses. This was not the only historic milestone achieved in 2015. Company premiums exceeded $21.8 million. The company recorded a combined ratio of 83 percent, which contributed to a record underwriting profit of over $2.9 million. Overall surplus increased nearly $2.5 million to $14 million. Total admitted assets for the company grew over $3.2 million to a historic level of $31,108,593. President/CEO, Daniel Fenske reported that the weather was kind to Mt. Morris and the insurance industry as a whole in Wisconsin. During his presentation, he showed appreciation for his dedicated staff and his Board of Directors for their hard work and support in achieving these record milestones. Fenske also recognized the 120+ professional independent insurance agents, which represent the company throughout the state and the policyholders for their confidence they have shown by placing their business with Mt. Morris Mutual. For more information, please visit mtmorrisins.com.

West Bend’s Independent Agents’ Fund Awards $92,500 in Grants West Bend Mutual Insurance Company in West Bend, WI, recently presented $92,500 to Midwest organizations supported by independent agents throughout the Midwest. The grants were made through the West Bend Independent Agents’ Fund. Since 2006, West Bend has awarded more than $1,000,000 in grants for sustaining support, special projects, or capital projects to nonprofit organizations representing a broad field of interests, including, but not limited to, arts and culture; education; the environment; family, youth,

Genelle and Phyllis earned the Senior

38 | APRIL 2016

WISCONSIN INDEPENDENT AGENT

WS E N E H T N I S R E B M ME and elderly; health and human services; medical research; and community development. Grants are made to organizations within West Bend’s core geographic operating territory: Wisconsin, Illinois, Indiana, Iowa, and Minnesota. “At West Bend, we have a proud tradition of giving back to the communities in which we do business,” said Kevin Steiner, president and CEO of West Bend Mutual Insurance. “The Independent Agents’ Fund is a unique program that allows us to express our gratitude to our agent partners on whom we rely to identify the causes that matter most in our communities.” Wisconsin recipients of the 2016 Independent Agents’ Fund grants are the Community Memorial Foundation-Froedtert Hospital in Menomonee Falls and the Wisconsin Dental Association Foundation – Mission of Mercy in West Allis. Community Memorial Foundation and Community Memorial Hospital launched a capital campaign to begin an extensive

expansion and renovation to the hospital’s Emergency Department. The Emergency Department is the point of entry for almost half the hospital’s inpatients, providing a critical safety net for those in need of immediate care. The new Emergency Department will ensure that residents and businesses in the community continue to have access to the highest-quality emergency care well into the future. Dan Hart of R&R Insurance Services in Menomonee Falls, has been on the Foundation board for 17 years. The grant will be used for the Emergency Department addition and renovation. As the philanthropic arm of the Wisconsin Dental Association, the WDA Foundation is committed to making a difference by improving the oral health of Wisconsin residents through its support of projects that provide dental care for the disadvantaged, while meeting the current and future needs of the dental profession. Since 2009, more than 14,300 children and adults have received in excess of $8.12 million in care at WDA Mission of Mercy (MOM) events. Mara Roberts, of Professional Insurance Programs in West Allis, has volunteered for MOM events for the past 6 years and the agency has supported the Foundation for more than 20 years. The grant will go toward the seventh annual WDA Foundation MOM event in June. For more information about West Bend, please visit thesilverlining.com.

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ERRORS & OMISSIONS

THE RISK OF OPERATING OUTSIDE THE SCOPE OF YOUR E&O POLICY Our industry must continually respond to changes brought on by the marketplace, law and consumer buying habits. In order to stay competitive, relevant and ultimately profitable, agencies must be creative to increase their value added proposition to clients.

In an industry pegged as being “slow to move,” agency owners are required to respond with timely, creative ideas to stay in business.

services. Operations outside of what is required as an insurance agent may not be covered in your policy by definition.

If you are unsure if a service is covered by your E&O policy, contact your policy administrator. You have coverage options.

A Good Question Can Save You Trouble

Some activity, like HR services, can be endorsed to your policy. Monoline policies for excluded activity are available, but keep in mind that these policies will start at around $7,000 in premium.

An agency has the ability to be agile and respond quicker than a large corporation. As your agency moves forward in this changing marketplace, remember that adding services could impact your E&O policy. Your agency E&O policy is intended to cover your operations as they relate to insurance

“Does this service require an insurance license?” This is a good rule of thumb question to ask when evaluating if a service may be included in your E&O policy. If the service doesn’t require a license, there is a chance that it won’t be covered. In order to fall within the policy’s scope of coverage, there must be, among other things, allegations of a negligent act or error or omission in the rendering of professional services for others as an insurance agent or broker. Check your policy for professional services definitions. Many policies include some minor axillary services like public notary.

Please feel free to contact me (meggen@ iiaw.com) if you are considering the addition of a service to your agency. We can discuss if it would be included in the professional services definition of your policy, or explore alternate coverage options if you > Meggen Gagas is deem the additional the IIAW’s Director of Agency Services. policy premium and risk Contact her at is part of your business 608.210.2975 or strategy. meggen@iiaw.com.

GODFREY & KAHN NAMED “WISCONSIN FIRM OF THE YEAR”

Godfrey & Kahn, S.C. is pleased to announce that Benchmark Litigation has named the firm “Wisconsin Firm of the Year” for 2016. Benchmark Litigation identifies the leading U.S. trial attorneys and firms at the local and national levels. Focused exclusively on the U.S. litigation market, the publication’s rankings and editorials are the result of extensive interviews with private practice lawyers and in-house counsel. Supplementary firm information is also submitted in the form of a questionnaire. Benchmark’s independent research is conducted annually between January and June. With Milwaukee roots that date back to 1957, Godfrey & Kahn also maintains Wisconsin offices in Madison, Appleton, Green Bay and Waukesha. A Washington, D.C. outpost allows the firm to assist clients with national matters. From Benchmark Litigation: “Clients…attest to the firm’s responsiveness and strong working relationships, citing ‘excellent customer service’ and reporting that the firm has always been quick to respond when issues have arisen that require immediate attention.” With 50 litigators, half of whom are partners, the firm has a thriving litigation practice specializing in cases involving financial institutions, insurance coverage and bad faith, reinsurance and insolvency, intellectual property, antitrust, ERISA, labor and employment law,

Josh Johanningmeier (right), attorney at Godfrey & Kahn and IIAW General Counsel, accepts the 2016 Benchmark Litigation ‘Wisconsin Firm of the Year’ award from Michael Rafalowich, managing editor of Euromoney Institutional Investor. The awards ceremony took place February 11, 2016, at the Essex House in New York City. product liability, real estate and construction, securities, and whitecollar defense. For more information, please visit the firm’s website at gklaw.com.

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WISCONSIN INDEPENDENT AGENT

WEST BEND INVESTS IN THE COMMUNITY

On March 9, 25 general business/marketing students from Living Word Lutheran High School visited West Bend Mutual as part of the InVEST program.

West Bend is partnering with local agents and working with area high schools to teach them about insurance and careers in the insurance industry.

West Bend CEO Kevin Steiner spoke with InVEST students at West Bend High School.

44 | APRIL 2016

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FOOD FOR THOUGHT ISS COULD BE OVERHEAD RIGHT NOW

The International Space Station, or ISS, is home to a crew of The International Space Station six that travels at a speed of five miles per second. It orbits Earth every 90 minutes. The space station has been continuously occupied since November 2000. Crew members spend about 35 hours each week conducting research in many disciplines to advance scientific knowledge in Earth, space, physical, and biological sciences. More than an acre of solar arrays provide power to the station, and also make it the next brightest object in the night sky after the moon. You don’t even need a telescope to see it zoom over your house (spotthestation.nasa.gov). Astronauts on the ISS witness around 15 sunrises and 15 sunsets every day. At $150 billion, the ISS is the most expensive object ever built. It is about the size of a football field. Just because: North Korea’s space agency is called NADA, which in Spanish means “nothing.” Source: NASA.gov and Wikipedia.org

IMHO SMS IS GR8

The UK holds the honor as the official birthplace of the Short Message System (SMS) or texting. On December 3, 1992, Neil Papworth, a 22-year-old software programmer from Reading, sent the very first message when he wished his friend Richard Jarvis of Vodafone: “Merry Christmas.” At the time mobile phones didn’t have keyboards so it was sent via personal computer. Texting was initially envisaged as a way of allowing firms to send internal messages and was slow to catch on. UK mobile phone companies didn’t think people would want to type in a message when they could simply speak. They were wrong. The first text from a mobile was sent in 1993. It is estimated that 7 trillion texts are sent every year. That’s 200,000 per second. Source: express.co.uk

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