August 2013 Wisconsin Independent Agent

wisconsin

INDEPENDENT AGENT AUGUST 2013

AUTUMN RETREAT OCTOBER 23-25, 2013 THE POINTE | MINOCQUA, WI REGISTER AT WWW.IIAW.COM

Your customers deserve a

wisconsin

Silver Lining.

®

INDEPENDENT AGENT AUGUST 2013 Eric Schwartz, Editor

Open Door Policy Survey Will Provide Industry Insight. . . . . . . . . . . . . . . . . . . . . . 5 Member Profile Grinnell Mutual: Safety First . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Government Affairs Real Advocacy At Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 News From ACT Agency Strategies To Manage Change Successfully. . . . . . . . 12 Commentary From Counsel DOMA Ruling Raises Health Benefit Implications. . . . . . . . . . . 15 Marketing Minute Go Against The Tide To Move Forward In Sales. . . . . . . . . . . . 16

On The Cover…

With the success of the recent Sales & Leadership Conference, the Smaller Agents Committee and the IIA of Northern and Western Wisconsin have reinvented the Midwinter Conference into the new Autumn Retreat. The Autumn Retreat is packed with fantastic education, networking and entertainment. The Pointe Hotel & Suites on Lake Minocqua hosts this professional development convention for independent insurance agents. Fresh ideas from top speakers will invigorate your passion for the industry. Join us at The Pointe, October 23-25, for the Autumn Retreat. Online registration is open now!

Photo: Jen Ruby-Durst, Ruby Photography (jenrubyphotography.com)

When something happens to your customer’s home, car, or business, it may not be a disaster. But no matter what it is, your customers always deserve fast and fair service from their insurance company.

West Bend provides a Silver Lining, no matter what the claim may be.

When a water pipe broke and flooded the reception area at Dr. Stevens’ veterinary clinic, repairing it quickly and cleaning up the water damage with no disruption to the business was important. So that’s just what we did.

Sometimes little things mean a lot. And every day, when something bad happens to someone, West Bend makes sure your customers experience the Silver Lining. Because the worst brings out our best.®

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

> OUR ADVERTISERS AAA................................................................. 30

2012-2013 Executive Committee

2012-2013 Committee Chairs

President........................................................ Michael Froh P.O. Box 1320 Sheboygan, WI 53082-1320

Agency Operations........................................ Kim Dandrea 1300 South Green Bay Rd. #100, Racine, WI 53406

President-elect............................................... Dave Dunker P.O. Box 443 Brookfield, WI 53008-0443

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

Secretary-Treasurer..................................... John Wickhem P.O. Box 1500, Janesville, WI 53547-1500

Employee Benefits.............................................. Tim Bever 555 Main St. #320, Racine, WI 53403

Badger Mutual................................................. 28

Chairman of the Board......................................Mike Hierl P.O. Box 949 Fond du Lac, WI 54936-0949

Finance & Compensation...............................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045

Burns & Wilcox.................................................10

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

Government Affairs........................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045

2012-2013 Board of Directors

Industry Relations...............................................Ted Haase P.O Box 6, Seymour, WI 54165

Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704 Jason Bott 330 East Kilbourn Avenue Milwaukee, WI 53202 Thomas Holter P.O. Box 938, Beloit, WI 53512-0938 Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583 Bruce Kommers P.O. Box 66, Antigo, WI 54409-0066 Jeff Rasmussen 525 Junction Road, Madison, WI 53717 Cap Wallrich P.O. Box 90, Shawano, WI 54166-0090

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

ACUITY Insurance............................................. 31 AmTrust North America................................... 25 Axley Brynelson................................................ 7

EMC Insurance................................................. 24 IIAW Continuing Education................................ 9 Northern Underwriting Managers................... 20 Partners Mutual.............................................. 27

Smaller Agencies..................................... Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236

Pekin Insurance................................................ 19

Technical.......................................................Andy Burkart P.O. Box 1320, Sheboygan, WI 53081-1320

Robertson Ryan.............................................. 29

Young Agents........................................... Derek Wickhem P.O. Box 1500, Janesville, WI 53547-1500

Society Insurance............................................ 17 The IMT Group................................................. 28 InVEST................................................Back Cover West Bend......................................................... 2 Western National Insurance.............................. 4

Matthew Weimer 100 North Corporate Drive #100, Brookfield, WI 53045

Wilson Mutual................................................... 15

Donald Williams P.O. Box 595, Beaver Dam, WI 53916

WPS................................................................. 28

WISCONSIN INDEPENDENT AGENT

AUGUST 2013 | 3

OPEN DOOR POLICY

SURVEY WILL PROVIDE INDUSTRY INSIGHT We take your membership very seriously.

To that end, the staff of the IIA of Wisconsin continually looks for new services that add value to your membership. This year, to benefit our agency and company partners alike, we are pleased to announce a new member service, the “Rate The Company” survey.

Beginning in September, agency owners and principals should look for an e-mail from the IIAW and Industry Insights requesting members to complete a

agent commissions to customer service for an agency’s clients. To obtain the most accurate and useful information, participation is key.

We respectfully request that you take some time to fill out the survey. We must have the greatest number of responses possible to produce quality data that will be valuable to all members as we look at the state of the agency-carrier relationship — and the state of the industry as whole — in Wisconsin.

Industry Insights will compile and analyze the survey results and the results will be available to our exclusive company partners and member agencies in February 2014.

We will release a summary report of the survey results to all members and then a detailed analysis to our exclusive company sponsors.

Beginning in September, agency owners and principals should look for an e-mail from the IIAW and Industry Insights requesting members to complete a comprehensive survey rating the state’s insurance carriers.

We can help with both.

With friendly underwriters who listen, and a full complement of products to serve your small-to-mid-size commercial insurance needs (including

comprehensive survey rating the state’s insurance carriers. Industry Insights provides high-quality survey research to trade and professional associations, and is a respected leader in this field.

enhanced BOP, surety, and packaged coverages), Western National is your one-stop shop for getting business done. The proof is in the partnership.

Our survey will cover everything from WISCONSIN INDEPENDENT AGENT

We are also considering offering further analysis as part of our 2014 annual convention program if timing permits.

We think the results will benefit both our agents and companies by bridging the

gaps and identifying the challenges that exist in the agent-carrier partnership.

In addition, survey results are best analyzed over a considerable amount of time. That is why we are looking to provide the “Rate The Company” survey, at least initially, on a biannual basis. Of course, this is dependent on the number of agents that respond.

As we finish up our membership renewals this month, we would like to take this opportunity to thank each and every one of you for your continued support of your Association. We are grateful for the opportunity to serve you and never take your membership for granted. Your membership and your relationship with us is our number one priority. We intend to fulfill our promise to you by including more value services as part of your membership benefits.

If at any time you have questions or suggestions about what your Association can do for you, please contact us.

> Matt Banaszynski is the Executive Vice President of the Independent Insurance Agents of Wisconsin. Contact him at matt@iiaw.com.

JULY 2013 | 5

MEMBER PROFILE

GRINNELL MUTUAL:

MEMBER PROFILE

SAFETY FIRST

Grinnell Mutual Reinsurance Company was founded in Greenfield, Iowa in 1909 as the Iowa Farmers Mutual Reinsurance Association. It was the first such reinsurance organization for farm mutuals in the United States.

In 1934, the growing company moved to Grinnell, about one hour east of Des Moines.

Grinnell Mutual and the NASFM Fire Research & Education Foundation sponsor the annual Life Safety Achievement Award. The award recognizes fire departments nationally for recording zero fire deaths in structures or reducing fire deaths by 10 percent during the year. honors our hometown heroes – our fire departments – for initiating proactive programs that save lives.”

Grinnell Mutual Reinsurance Company is located in central Iowa about one hour east of Des Moines. The company writes direct lines of insurance through a network of over 1,600 independent insurance agents in 11 states.

Throughout the 104-year history of Grinnell Mutual, the company has prided itself on customer service, community involvement, developing new, viable products for its agents and policyholders, and a commitment to safety.

Grinnell Mutual’s long-lasting focus on safety not only prevents accidents, it protects policyholders, their families, and their communities. What follows are two recent developments.

LP Gas Demonstration Prevents Explosion…11 Years Later In 2002, Mark Lageveen, a Grinnell Mutual claims manager, performed a demonstration about LP gas for his son’s sixth grade class. One student took the demonstration to heart and applied what he learned about LP gas properties to avoid a serious accident.

This past spring, Lageveen bumped into the student who is now in his early 20s.

As related to Lageveen, the young man was visiting a family member whose LP gas line was accidentally cut by a mower or weed eater. The leaking line was sending gas into the home and could be smelled as soon as he opened the door.

One of his family members was about to go down to the basement with a lit

6 | AUGUST 2013

cigarette when the young man stopped her just in time. He immediately shut the gas tank off and aired out the basement.

“Because LP gas is heavier than air, it sank to the basement. This young man knew that a lit cigarette would ignite the gas and explode,” said Lageveen. “I’m sure he prevented a serious injury, if not death.

With loss control initiatives, you never know if you prevented something because it doesn’t happen. That’s why it was neat to hear this young man’s story.”

Gary Downey, one of the founders of Grinnell Mutual’s loss control program, developed the LP gas experiment. It shows the physical properties of LP gas, which is commonly used to heat and cool homes in the rural Midwest. Small LP tanks are also used in outdoor gas grills and campers.

During the presentation, a glass jar filled with LP gas is poured into a pan elevated 30 inches above a table. A hole in the bottom of the pan is attached to a long plastic tube that terminates directly above a votive candle sitting on the table.

Because the vapors are heavier than air, the gas flows down the tube. When the vapors reach the candle, the gas ignites and flashes up the tube, consuming the LP gas vapor.

To watch the 2 1/2 minute demonstration, go to www.youtube.com/ watch?v=IOudDyk0WIA#at=12.

The company and the NASFM are currently in the process of finding the 2013 award recipients, which will be announced in September. Fifty fire departments from across the United States were honored with the award last year.

One of last year’s award recipients, the Marion Fire Department of Marion, Iowa, was featured on Grinnell Mutual’s Website for its superb record. With 54 firefighters, the Marion Fire Department annually reaches 8,000 people of the 38,000 people living in the city through

public education programs.

“I tell our firefighters all the time that we save more lives and property through fire prevention programs than by combating fires on the scene,” said Deb Krebill, assistant fire chief. “With fire prevention education, we have a 100 percent survivability and property conservation rate. That’s what we’re hired to do – save lives and conserve property.”

The programs are working. Marion has fewer fires per capita than other cities of similar size.

As an added benefit, the national recognition that comes with the award

plays a vital role when departments seek funding to upgrade equipment, enhance training, and of course, sponsor fire prevention programs.

Grinnell Mutual Reinsurance Company is located at 4215 Highway 146 South in Grinnell, Iowa. Grinnell Mutual is an “A” rated carrier per A.M. Best. The company writes direct lines of insurance through a network of over 1,600 independent insurance agents in 11 states and is the 123rd largest property-casualty insurance company in the United States. Since 1980, the company has partnered with many great independent agencies in Wisconsin. The company is a supporting member of the Independent Insurance Agents of Wisconsin. Find them on the Web at www.grinnellmutual.com.

Commitment To Local Fire Prevention Efforts Grinnell Mutual also recognizes fire departments for their safety efforts.

Grinnell Mutual and the National Association of State Fire Marshals (NASFM) Fire Research & Education Foundation sponsor the annual Life Safety Achievement Award. The award recognizes fire departments nationally for recording zero fire deaths in structures or reducing fire deaths by 10 percent during the year. Award recipients must also demonstrate an active and effective fire prevention program with a clear commitment to reducing the number of fires in their communities.

“If you can save one life, two lives, or ten lives, you’ve really made a difference,” said Alan Clark, assistant vice president of Grinnell Mutual’s Special Investigations Unit. “That’s why we’re encouraging fire departments to conduct educational programs in their local communities that will make a difference and then recognizing them for their efforts.

The Life Safety Achievement Award WISCONSIN INDEPENDENT AGENT

WISCONSIN INDEPENDENT AGENT

AUGUST 2013 | 7

IIAW GOVERNMENT GOVERNMENT AFFAIRS AFFAIRS CIRCLE OF DONORS What does real, effective government advocacy look like? It’s real people voicing

INDEPENDENT INSURANCE AGENTS OF WISCONSIN

REAL ADVOCACY AT WORK

GOVERNOR’S CLUB ($500+) Mike Ansay Matt Banaszynski Mark Behrens Jason Bott Jerry Couri David Dunker Mike Froh Skip Hansen Linda Steiner Fred Thomas Mike Walston Matt Weimer John Wickhem

SENATOR’S CLUB ($250+) Jean Dunker Walter Frank Tom Helbach Mike Hierl Bruce Kommers Lise Meyer-Kobussen Kevin Murray Jeff Rasmussen Mike Schulte Jeff Thiel Mark Truyman Cap Wallrich

REPRESENTATIVE’S CLUB ($100+) Chris Costakis Janelle Higgins Thomas Holter Ray Hutchinson Andrea Kiemen-Rognsvoog Chuck Kranzusch Misha Lee Steve Leitch Terrence Maloney Heidi Nienow Jonathan Ottman Trisha Ours Rod Ryan Tom Sitter Andy Spaeth Don Williams

CABINET MEMBER ($50+) Tim Draxler Ted Haase Sandra Hardrath Cari Lee Anthony Matera Chris Nemec Ruth Vorwald

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Trusted Choice

®

UPCOMING CONTINUING EDUCATION

their honest opinions for something they believe in. We don’t have to look very far in this Association to find this put into practice.

Tom Sitter and Derek Wickhem are independent insurance agents and members of the IIA of Wisconsin. Tom is a producer at Richards Insurance in Oshkosh; Derek is a producer at the John Wickhem Agency in Janesville. Both men took action to show that this trade association’s government advocacy strength comes from its membership. You and your peers can have a positive impact on issues important to your business and the overall health of the insurance industry.

This past spring, the IIAW had the pleasure of joining with our industry partners from the Wisconsin Insurance Alliance in leading the effort to advance the Storm Scammer (2013 WI Act 24) and Electronic Proof of Insurance (2013 WI Act 31) bills. The IIAW assisted with feedback during the drafting phase of the legislation, testified before legislative committees, participated in a Call To Action Alerts, and met one-on-one with insurance committee members and other lawmakers. The primary objective was to garner strong support for our industry position.

When it came time for insurance agents to voice feedback on the proposed legislation, Tom and Derek stepped up and volunteered on your Association’s behalf to testify for the Property and Casualty agent/broker community. Their leadership and participation in the legislative process, from beginning to end, was central to getting these bills signed into law. Each of them brought real world experience, expertise and credibility in their testimony.

“We all have to work to be involved,” said Tom. “This is our livelihood. If we are not informed and part of the process, it will work against us. This is true at the county, state and national levels. We must support good bills and ideas and work to stop what is bad for the industry or the consumer.”

Tom shared his stories about people he knows and works with, from all across Wisconsin, who have been preyed upon by unscrupulous contractors looking to make a quick buck in the wake of a severe storm or other natural disaster.

For both Tom and Derek, their help with our Association’s lead advocacy efforts meant sacrificing a day away from the office to spend at the State Capitol directly participating in the legislative process (sometimes referred to as “sausage making”).

Thanks to their compelling testimony on both legislative initiatives, the IIAW was able to clearly articulate and advocate for our position. Both bills overwhelmingly passed the Legislature and were signed into law by Gov. Walker.

“Testifying before a hearing of both the Assembly and Senate was actually an easy process of stating your position and thoughts of how to make

E&O Risk Management: Meeting The Challenge Of Technology Change 6 CE Credits Approved Dates: August 13, October 1, October 17, and November 14, 2013 Locations: Eau Claire, Madison, Appleton and Pewaukee Time: 8:30 AM ‐ 2:30 PM

On July 5, Gov. Scott Walker signed the storm scammer and electronic proof of insurance bills into law. The Independent Insurance Agents of Wisconsin played a key role in getting this legislation passed. From left: Matt Banaszynski, IIAW Executive Vice President; IIAW member Tom Sitter, Richards Insurance; Brad Boycks, Wisconsin Builders Association Vice President – Advocacy; Gov. Scott Walker; Amy Harriman, policy advisor to Sen. Luther Olsen; and Sen. Luther Olsen (R-Ripon), 14th Senate District. changes,” said Tom. “In the insurance business we are always in the hot seat so making the case and defending a position is something we are used to.”

Tom and Derek’s efforts certainly did not go without notice and proper recognition. On July 5, Tom and his wife cleared their holiday calendars and joined Matt Banaszynski, the IIAW’s Executive VP, to participate in a private bill signing ceremony with Gov. Walker. They received gubernatorial pens at the signing in recognition of their efforts.

In addition to advocating for our industry position, Tom is also a leader and active participant in the IIAW’s political Conduit and PAC programs. These political advocacy tools allow your Association to be an industry leader and have a strong statewide voice with the decision makers in Madison.

Tom and Derek understand that even the smallest government regulation or burdensome law can have a direct impact on their business and bottom line. I encourage each of you to strongly consider becoming an active participant in your Association’s advocacy efforts. The more of you that step up and participate, the more effective the IIAW will be on your behalf at the State Capitol.

Get involved or government will make business decisions for you! To learn more about how you can contribute > Misha Lee is Owner/ to the IIAW’s advocacy Founder of Lee efforts, please contact your Government Relations, LLC and lobbyist Association headquarters, for IIAW. Follow Lee or e-mail Cari Lee at cari@ Government Relations iiaw.com. on Twitter @mishavlee.

WISCONSIN INDEPENDENT AGENT

Insurance Potpourri: Personal & Commercial Lines Coverage 4 CE Credits Approved Date: September 25, October 29, and November 20, 2013 Locations: Madison, Pewaukee and Appleton Time: 8:30 AM ‐ 12:30 PM

Ethics In Today’s Changing Times 4 CE Credits Approved Date: August 14 and September 26, 2013 Locations: Pewaukee and Appleton Time: 8:30 AM ‐ 12:30 PM

TBD (Session part of Autumn Retreat presented by the Smaller Agents Committee and the IIA of Northern and Western Wisconsin) 3 CE Credits Filed Date: October 24, 2013 Location: Minocqua Time: 9:00 AM ‐ 12:00 PM

Ethical Standards For The Insurance Professional 4 CE Credits Approved Date: October 31* and November 11, 2013 Locations: Eau Claire and Madison Time: 8:30 AM ‐ 12:30 PM (*October 31st session: 12:00 ‐ 4:00 PM)

FOR MORE INFORMATION AND TO REGISTER FOR THESE IN PERSON CLASSES, PLEASE GO TO IIAW.COM

TO RECEIVE 20% OFF ANY 2013 CONTINUING EDUCATION CLASS ENTER PROMO CODE: THANKS

HOW TO LAND .

THAT BIG ACCOUNT

It is possible to land almost any account. All that’s needed is the right plan, consistency and persistence. Of course, before you can land that big account, you have to get in the door. Last month, we looked at the groundwork necessary to open the door to big accounts and how to get the attention of key people at the account. This month we’ll go through the door and learn what it takes to land the account. Here are three steps to get you moving toward your goal.

STEP 1: Set up a meeting with the key people.

If you’ve taken the steps I talked about in the last article, you’ve either already met the key people at your target account, you’re on their radar screen, or you’re well on your way to both. At this point you need to set up a meeting to show them how you can help them. If you’ve met the key people, or they know who you are, you can contact them directly and ask for a meeting. If they are not aware of you yet, you want to get an introduction from someone they know well.

Our expertise is the key to gaining access to exclusive markets.

Like I said last month, the average person knows about 250 people. More than likely you know someone who knows the people you want to meet, but you may have to do some digging. If that doesn’t work, you’ll have to begin a contact plan consisting of in-person calls, phone calls, e-mails, and regular mail. Persistence pays off.

To catch their attention, say something meaningful that’s important to them. Also, make the first meeting short. Ask for 30 minutes to discuss their business.

Step 2: Have a great meeting.

Once you get a meeting with the key people, make it count. There are several steps to a great meeting. They are:

HEALTHCARE PROFESSIONALS AND ORGANIZATIONS

Be prepared. Make sure you’ve done all your homework on the company and the individuals. Visualize the meeting ahead of time and make sure everyone knows their part. Be ready to give them something meaningful.

Enter exclusive markets for healthcare entities through our relationships with over 50 carriers. Whatever the diagnosis, our expertise delivers the fastest quotes.

Take advantage of our experience to cover everything from medical malpractice to general liability without any gaps. Why let anything stand between you and the coverages your clients need? At Burns & Wilcox, we make the hard-to-place easy.

After the meeting, make sure you follow through. Breaking

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Commercial | Personal | Professional | Brokerage | Binding | Risk Management Services 10 | AUGUST 2013

WISCONSIN INDEPENDENT AGENT

that rule will kill your chances with a prospect.

Make a good impression. When you do meet the key people, make sure you’re dressed appropriately, neatly groomed, and confident.

Maintain good eye contact, give a firm handshake, and otherwise

WISCONSIN INDEPENDENT AGENT

carry yourself well. Be conversant not only in their business and industry, but also in current events and general knowledge.

Show your intelligence in a smart way.

Pun intended. Let them know you’ve done your homework and that you know them as individuals and as a company. Show them you know their industry and have thought intelligently about how you can save them time, money, effort, and/or energy. How can you make their life easier? Be careful not to come across as a know-it-all or leave the impression that you think you know more than they do. This is a relationship where you are on equal footing, putting your heads together to solve problems. Ask good questions and make sure to listen at least twice as much as you talk, and in most cases, even more. Remember, you’re there to find out how you might be able to help.

Before you offer a solution make sure you understand them and their situation and how you fit in. Make sure they have spoken openly, honestly and completely about their situation and that you fully understand their situation. Make it “them” focused, say something meaningful and helpful, and focus on benefits while citing examples of similar situations you helped solve.

Close on the next step in the process. The next step may be a proposal, a follow-up meeting, or a commitment to follow up in some other way at another time. Whatever it is, make sure you leave the meeting with a commitment as to what will happen next and when.

Step 3: Follow up and continue to build the relationship(s) until you get in.

After the meeting, make sure you follow through. Do what you said you’d do.

Breaking that rule will kill your chances with the prospect. Next, regardless of what happened in the meeting, you want to treat the prospect the same way you treat an important client or customer. Keep communication constant and build the relationship(s). Whether you have a shot at the business at the present moment or

not, you want to get their permission to put them on your e-mail, mail, and phone contact lists, and start reaching out on a regular basis.

Make sure to send pertinent information and any item that may be of benefit to them. Start sending items of personal interest and get them on your threecard mailing list. You also want to begin gathering information on The 28 Key Items To Know About Each Customer. If you don’t have this already, e-mail or call me and I’ll send it to you. You want to use this information to further solidify the personal relationships.

Finally, make sure to go far above and beyond and exceed any and all expectations.

Ultimately, your goals are to: a Continue to make a great impression. a Maintain and increase mindshare. a Out-relationship and do more than the competition.

You will land that big account if you have a solid plan with goals, objectives and a strategy that sets you apart. This “solid plan” also includes hard work, smarts, persistence and building solid relationships.

Don’t expect to land that big account overnight.

It may take a year or more but if you hang in there, you’ll get a shot because they like you, the competition messed up, something else changed, or they simply decided to reward your hard work and persistence.

> For access to John Chapin’s free monthly newsletter, go to www. completeselling.com.

John is an award-winning sales speaker, trainer and coach. He is a number one sales rep in three industries and author of the gold-medal winning “Sales Encyclopedia.”

AUGUST 2013 | 11

NEWS FROM ACT

AGENCY STRATEGIES TO MANAGE CHANGE SUCCESSFULLY Few would dispute that we are living in a time of rapid and profound changes. Consumer expectations are changing fast, often shaped by their experiences in other industries. More and more consumers are “connected” and will communicate with their business partners using any device that is handy to them at the time.

These consumers are also empowered by social media and will use these tools to research their potential business partners, as well as to spread the word when they receive bad service. New technologies are enabling businesses to enhance the consumer experiences that they provide and to differentiate themselves from their competitors.

Managing through all of this change has become a major challenge even for the most tech savvy agencies, as well as for our carriers and vendors. What are the key trends that will affect my business materially?

Where will my major competitors be in five years? Which new technologies should I implement and when?

Agencies can position themselves to prosper in this rapidly changing environment by creating a culture that embraces innovation and implementing a defined change management process. Below are several insights gleaned from ACT

discussions to assist agencies in managing change successfully within their firms.

>A ttributes of Successful Independent Agencies of the Future.

Management Sets The Tone

Keeping Up With Innovation In Other Industries

Agency management plays a key role in creating a culture where innovation is prized as a core value of the business. These agency leaders look at new technologies and other innovations strategically, as tools that will give them a competitive advantage. They encourage ideas from every source – most especially from their employees and clients – as to

Innovative agencies also are keeping up with the innovations taking place in other industries, because consumer and business expectations increasingly are being shaped by the experiences they have in these other industries.

how the agency can do things better.

Clients are surveyed regularly and some agencies have even set up client advisory councils to test ideas and get fresh thinking.

These agency leaders are involved in their associations and organizations like ACT, AUGIE (ACORD User Groups Information Exchange) and their user groups, as well as with their carriers, to keep up with the latest innovations available to them and the benefits other agencies are deriving from these implementations.

The ACT Website contains a number of resources to assist agencies in considering the key trends that are likely to affect them and how their fellow agencies are changing to position themselves for the future. Examples include: > 2012 Key Trends & Industry “Must Do” Issues (currently being updated). > Agency Perspectives on the Future video. >H ow Consumers, Businesses & Agencies will change.

12 | AUGUST 2013

Innovative agencies also are keeping up with the innovations taking place in other industries, because consumer and business expectations increasingly are being shaped by the experiences they have in these other industries. Agents can also learn from their business clients by asking them about their recent innovations and their resulting impact.

Daniel Burrus, the author of Technotrends, notes that successful businesses of the future will not only need to be “agile” but “anticipatory.” Agility is important in reacting to competition. But being anticipatory enables you to become the competition because you are thinking through the “hard” trends that will affect you and you foresee where your consumers and your competitors will be in the future in light of these trends. (“Hard” trends are those that are certain and permanent.) The anticipatory firm makes changes now so it will ready for its consumers and competitors in the future.

The other key for successful implementers of change is to create metrics, so that you can quantify whether the change has been a success or not.

Employee Involvement & Training Are Key The agencies that are implementing change successfully involve their employees in the shaping of that change.

Employees – representing all of the disciplines affected by the change – work > Jeff Yates is executive together in teams director of the Agents Council for Technology (ACT) which to implement it. is part of the Independent Employees are Insurance Agents & Brokers of empowered to America. Jeff can be reached innovate based at jeff.yates@iiaba.net. ACT’s Website is www.iiaba.net/act. upon the firm’s This article reflects the views principles and of the author and should not are rewarded for be construed as an official doing so. There statement by ACT. WISCONSIN INDEPENDENT AGENT

is an understanding that many innovations will not work perfectly at the start and will need to be modified and enhanced. These employees are also encouraged to work through these issues and to pursue problems with their carriers and vendors until they are fixed.

The innovative agency makes sure it has the right employees in the correct spots. These agencies are looking for employees who are willing to embrace change and who know how to ask the right questions to get their jobs done correctly. These qualities have become the top factors these agencies look for in candidates – even more important than the individual’s insurance expertise.

Some agencies also are striving to have a staff make up that reflects the multiple generations and ethnic groups their firm is serving, to encourage diverse thinking and more effective understanding of each of their client segments. These agencies are also more willing to delegate authority and responsibility to employees in areas where they have a special interest and skill (in social media, for example).

To achieve a successful implementation, agencies should tell their employees “why” the change is being made and how it fits the agency’s vision (which the employees have bought into). Then, employees should be thoroughly trained on how to implement the change effectively.

Once the agency implements the new workflow or technology, employees should be expected to use it so that there is consistency throughout the agency.

Innovative agencies also provide their employees with training that helps them to become more effective employees in areas such as teamwork, leadership and management.

“Slow Down In Order To Speed Up” This expression, coined by Paul Fuller of Strategic Insurance Software, expresses so well the importance of the agency’s taking the time to make sure the change it is pursuing – whether a new technology, workflow, etc.

– is the right solution. Employees should be given uninterrupted time to confirm that their defined solution is the correct one.

In addition, rather than just automating a traditional workflow that was devised for a paper world, these agencies rethink the workflow from the ground up in light of the new possibilities that have been enabled by technology.

WISCONSIN INDEPENDENT AGENT

Willingness to Experiment Successful agency innovators are willing to experiment with new technologies and continue to “tweak” them based upon feedback from clients and others. Creating a mobile friendly Website and mobile apps provide great examples. There is no question mobility and “connected” consumers are both “hard” trends that will increasingly affect us.

Steve Anderson reports in a recent TechTips that 43% of Google searches are local and 74% are performed via a mobile device. So, it makes good sense for agencies to position themselves for this inevitable change, fully realizing they are going to have to enhance these mobile tools over time based upon the features that consumers ask for and use.

The agencies that are implementing change successfully involve their employees in the shaping of that change. Employees work together in teams to implement it.

independent agent, found that he was able to cut his agency’s turnaround time to receive signed client documents from an average of 23 days to 3-5 days by implementing an electronic signature tool. Think about all of the time and follow ups this one innovation is saving his agency!

Similarly, Applied Systems has been able to greatly speed up its responsiveness to customers by creating faster communications vehicles for reporting issues and implementing an Agile development process, which brings together multi-functional teams to work with customers to devise and implement solutions without delays.

There are numerous technologies available to agencies today that can enhance their competitive position. None of these specific implementations, however, is as important as positioning the agency to implement change successfully. The agency that embraces innovation as a basic value, keeps up with key trends and opportunities both within the industry and in other industries, empowers its employees to participate in the change process and implements a defined change management process – will position itself effectively for an environment that will continue to experience rapid and profound change.

Another good example where agents are experimenting with new technology tools involves Internet marketing. Agencies continue to measure the effectiveness of the social media ads they run and modify the criteria until they hit upon a strategy that attracts the most correct leads, most cost effectively.

The three keys for these innovative agencies are: 1. Be willing to experiment.

2. Measuring the effectiveness of each change they make.

3. Refining the implementation as needed.

Innovations Save Time & Money Successful innovations often cut the time it takes to accomplish particular processes.

For example, Stu Durland, a New York

AUGUST 2013 | 13

COMMENTARY FROM COUNSEL

COMMENTARY FROM COUNSEL

DEFENSE OF MARRIAGE ACT RULING

RAISES HEALTH BENEFIT IMPLICATIONS

You no doubt caught the onslaught of media coverage in late-June related to the Supreme Court’s decisions impacting gay marriage rights. One of those two decisions in particular may impact your business, or the business of your clients.

Next, the Court decided the merits of the case.

Notably, it did not decide whether there is a constitutional right to gay marriage. Instead, Justice Kennedy’s majority opinion, joined by the four usually more liberal justices (Kagan, Ginsberg, Sotomayor and Breyer), recognized the traditional role of states in defining marriage. They found that DOMA violated the Fifth Amendment right to due process for same-sex couples in states that recognize their marriage, because it “singles out a class of persons deemed by a state entitled to recognition and protection to enhance their own liberty.� DOMA, by limiting federal benefits to opposite-sex couples, unfairly discriminates by creating “a disadvantage, a separate status, and so a stigma upon all who enter into same-sex marriages� that are approved by the states.

While the Supreme Court’s ruling does not immediately apply to same-sex couples in Wisconsin, the DOMA decision will be especially important for multi-state employers, who will need to determine the impact to their benefit plans.

The federal Defense of Marriage Act (DOMA) defines “marriage� as a union between a man and a woman only. On June 26, 2013, in a 5-4 decision in the United States v. Windsor case, the U.S. Supreme Court struck down this definition, which had excluded gay couples from more than a thousand federal benefits.

This DOMA decision entitles gay couples who marry in states that recognize the marriage to federal benefits previously limited to straight couples. However, the decisions uphold the rights of states to regulate and define marriage, and leave future questions regarding the effect of DOMA for gay couples living in states (like Wisconsin) that do not allow or recognize gay marriages. If you or your clients handle employee benefits, the impact of these rulings will be particularly important regarding health insurance coverage, taxation of benefits, flexible spending accounts, FMLA and COBRA access, and Social Security survivor benefits.

14 | AUGUST 2013

Background on the DOMA Challenge The specific challenge in the Windsor case was over a tax refund. Edith Windsor was married to another woman in Canada and lived in New York, a state that recognizes gay marriage.

When Windsor’s spouse died, she was required to pay a federal estate tax of $360,000 because the marriage was not recognized under DOMA. She would have been entitled to a tax exemption, among other federal benefits, if she had been married to a man. While the Obama Administration agreed that DOMA was unconstitutional, Congressional Republicans intervened to defend the law.

The Supreme Court’s Opinion The Supreme Court first decided that it could hear the case, even though the Obama Administration agreed the law was unconstitutional. The Court said the continued denial of the refund created a controversy, and the “unusual and exigent circumstances� of DOMA’s impact on so many individuals justified the Court’s jurisdiction.

The traditionally more conservative Justices (Scalia, Thomas, Roberts and Alito) dissented, arguing DOMA was constitutional. Justice Scalia used his typically colorful language to describe the majority opinion as “jawdropping� and “legalistic argle bargle.� He and Chief Justice Roberts argued the Court should not have heard the case to begin with, or overturn “democratically adopted legislation.�

The decision means that same-sex couples who are legally married must now be treated the same as married heterosexual couples under federal law. It applies to couples in the states that recognize gay marriage — 12 states and the District of Columbia, plus California based on the Proposition 8 decision. What the decision does not do is: create any new benefits for same-sex couples; decide whether a state may ban gay marriage; determine the impact for samesex couples legally married in another state (Iowa, for example) who move to a state (like Wisconsin) that does not recognize the marriage. This will likely > Josh Johanningmeier lead to further is the IIAW’s General interpretation and Counsel. Call the Legal court challenges Services Hotline at (877) 236-1669. since some federal WISCONSIN INDEPENDENT AGENT

agencies define marriage based on where a couple lives, while others consider where the couple got married.

Health Benefits Impact The Court’s decision gives legally-married same-sex couples access to more than 1,000 federal benefits, including six important health care benefits.

1. Since marriage is a “qualifying event� under the Health Insurance Portability and Accountability Act (HIPAA), employees can enroll a spouse in a company-sponsored health insurance plan. While many companies already provided this benefit to domestic partners (more than 62 percent of Fortune 500 companies, according to the Human Rights Coalition), the overall impact on insurance costs will depend on the relative health of those spouses.

2. Same-sex couples will no longer have to pay federal taxes on the value of a spouse’s health insurance coverage. They can also use pre-tax money to pay for that coverage.

3. Legally-married gay employees will have

Rely on

access to flexible spending accounts if offered through their employers.

Companies will need to identify and communicate with affected employees.

These changes could save employees thousands of dollars per year, and negate the need for companies to “gross up� an employee’s salary to account for the extra taxes.

Medical Leave Act (FMLA).

6. Finally, while requiring no additional effort by employers, gay employees and their spouses will be entitled to Social Security survivor and disability benefits.

Additionally, the ability to file joint tax returns may affect an employee’s eligibility for Medicare and Medicaid.

This DOMA decision entitles gay couples who marry in states that recognize the marriage to federal benefits previously limited to straight couples.

4. Employees will have access to continued coverage under COBRA after leaving a job.

Companies must inform legally-married gay employees of this right, and inform a surviving spouse if the employee dies while employed.

5. Employees can keep their job while caring for a same-sex spouse under the Family and

While the ruling does not immediately apply to same-sex couples in Wisconsin, the DOMA decision will be especially important for multistate employers, who will need to determine the impact to their benefit plans. We will keep you updated on expected further guidance from the IRS and other federal agencies regarding these changes, and any related changes to Wisconsin’s legal landscape.

stabili ty. Rely on Wilson.

Quality . Stability . Teamwork . Service . Integrity

Our people make the difference. Contact us today to see how you can become part of the Wilson Mutual family.

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Brian Christ, District Sales Manager WISCONSIN INDEPENDENT AGENT

AUGUST 2013 | 15

SIX WRITING TIPS THAT CAN DOUBLE YOUR SALARY

© 2013 Society Insurance

Bruce Kasanoff, entrepreneur and co-author of the book, Smart Customer, Stupid Companies, recently shared his big vault of writing knowledge with the users of LinkedIn. Here is the condensed version of Mr. Kasanoff’s piece.

1Have a repeatable message. Most of the stuff you read has no clear message, which makes it nearly impossible to repeat. In our digital age, being easily repeated is the difference between fame and forgotten.

To give you one example, search engines put clear and focused pieces much higher than random and rambling ones; this fact impacts all business writing, even pieces that will never be posted online. Ask yourself: why am I writing this piece? What do I want the reader to learn?

Even more importantly, what do I want the reader to do after reading what I wrote?

who is going to read this, and how do they think? To get a clue, re-read anything they have sent to you.

3Be powerful, not passive. Powerful professionals DO things; they don’t sit passively while others take action. But huge numbers of professionals write in the passive tense, like this: After careful consideration, our department’s new operating policy was approved this morning by the management team.

MORE PEOPLE READ ARTICLES WITH IMAGES.

What a lousy way to try to get others excited. Far better to write:

2Know your audience. If you write everything in the same style, you are - sorry - an ineffective writer. You must adapt your style and approach to match the needs of the people you wish to influence.

We just created five simple principles to make daily life in our department easier and simpler.

Some of us like facts and figures, others crave stories. To get a message into someone’s brain, you have to package it in a form they can process. For some people, that means using 100 words or less; for others, it means including three pages of support materials. Ask yourself:

4Use examples. Without examples, your words are little more than abstract thoughts, and most people ignore abstract thoughts.

We all have daily pressures, and if you don’t know how to implement an idea, it’s not useful.

Examples show readers how to implement your

Whenever you write, show people how and why to take action.

ideas.

5Use more pictures and fewer words. There’s a reason why nearly every LinkedIn article starts with an image; more people read articles with images.

The same is true for nearly every document.

Some people think in pictures, others in words.

Just as importantly, don’t waste words. In fact, you might want to write “don’t waste words” right above the screen on all your digital devices. I’m serious. Only use as many words as is necessary to get your point across clearly, and no more.

6Rewrite! The hard reality is that you need to rewrite your first draft, and to keep rewriting until you’ve accomplished the first five of these tips. Rewriting doesn’t require hours of time. You can rewrite a short e-mail in two minutes. Don’t skip this step! The more you polish your words, the higher your career will soar. > Bruce has three free ebooks available for download at Kasanoff. com.

No waiting period.

Small detail. Big difference.

Some insurance companies say your customer’s power has to be out for at least 72 hours before they’ll be reimbursed for loss of business. But we both know a business starts losing money the second it loses power. That’s why our coverage kicks in immediately. And it’s just one of the reasons we’re endorsed by organizations like the Wisconsin Restaurant Association. If you agree that details like these can make a big difference, give us a call at 888-5-SOCIETY or visit societyinsurance.com.

16 | AUGUST 2013

WISCONSIN INDEPENDENT AGENT

MARKETING MINUTE

MARKETING MINUTE

GO AGAINST THE TIDE .

TO MOVE FORWARD IN SALES

Salespeople are often known for their “can do” attitude when it comes to getting an order.

They don’t let anything get in their way. Yet, the road to closing sales is getting rougher, with more obstacles, hairpin turns and fewer straightaways.

Customers are more discerning, demanding and cautious. They expect guarantees, free enhancements, incredible support and, of course, a “white knuckles” price and beyond.

They’re not satisfied with reducing risk; they want to eliminate it.

All this drives salespeople to search for more inventive ways to get the job done –– everything from finding appropriate prospects to nailing down appointments to getting the order.

Because selling is a tough job (in spite of what some may think), it’s often necessary to go against the tide in order to move forward –– to do things differently to close sales. Here are some thoughts about how to go about it: 1. Forget about getting the order. This sounds harsh, almost subversive. But it may not be so crazy when you consider that closing rates are painfully low. And if that isn’t enough, the toughest lesson salespeople must learn if they want to survive is coping with constant rejection.

The real task is figuring out how to move past hearing “no,” “not interested,” “maybe” or “thanks, but we’re all set.” These are important comments because they almost always are heard when a salesperson’s focused on making the sale.

If a customer gets the feeling that a salesperson’s sole objective is getting the order, the chances that it will happen drop to near zero. It’s easy to forget that customers want to buy; they do not want to be sold –– even if they need what a salesperson is selling.

will lead to getting the account or coming away with a contract. While such efforts may produce short-term results, enduring relationship building can require a lot more today.

Initial contacts with prospects are of crucial importance, far beyond just getting acquainted or establishing common ground.

It’s sizing up time, when first impressions become indelible.

It’s when prospects decide whether or not to work with a salesperson, which is why being perceived as a knowledgeable, competent, and committed professional is essential. So, don’t derail the opportunity with distractions. This is the time to demonstrate your insights into the business including challenges and opportunities.

do with spending time and money “courting prospects” or “keeping customers happy” with tickets to sporting events, special excursions or even free dinners and the like.

It has to do with another type of “giving before you get.” Specifically, it’s about “funding an account” with your demonstrated value before prospects become customers. How to do it? Just begin by asking for an opportunity to demonstrate your value. Whether it’s a problem to solve, researching an issue, finding a needed resource, or offering insight from your experience, consider it a “miniinternship,” if you like.

Highly effective salespeople want to be regarded as reliable, forthright and competent resources. When they ask questions, their customers know they will

a “needs profile” so they can be in touch at the right time. They listen carefully and pick up on upcoming projects, new business opportunities, organizational changes, and problems that will, at some point, need attention.

customers have accurate and reliable information, even when it may not reflect favorably on what a salesperson is selling.

“Frankly, I don’t have exactly what you need, but these people do,” as she handed her customer the contact information.

The goal is not to replicate what others in sales do. It’s to identify what you might do better that will set you apart. What will make you stand out? What will get the customer’s attention? What are your competitors’ salespeople missing?

The objective is to know when a customer faces a specific issue and to make contact at that moment. This is when a customer feels that a salesperson is an alter ego, a person who knows what a client is thinking.

Highly effective salespeople want to be regarded as reliable, forthright and competent resources.

When they ask questions, their customers know they will receive straight, reliable answers.

With this information, you can fashion a sales role that surpasses the competition.

5. Anticipate customer needs to grow your sales. There are negative behaviors that ill-serve salespeople. One is called the “when I get ready syndrome.” Customers hear from them when they want an order or the sales manager instructs everyone to get on the phones for two hours on Thursday.

Both quickly become clearly transparent to customers.

3. Push “getting” out of your mind. “Pay forward” is a core value of selling, although is mostly misunderstood.

This has nothing to

Instead of talking about the value you bring to a prospect, demonstrate it. If you’re too busy to pay forward, then you may be too busy to get the account.

4. Make differentiating yourself a top priority. Many salespeople claim they don’t worry about the competition. Well, perhaps.

Or, maybe they’re just “whistlin’ Dixie.” While your company may work at differentiating itself from the competition, it’s equally important for salespeople to do it, too.

It’s this level of attention and responsiveness that builds client trust and results in additional sales.

6. Educate customers to build trust. Even though it may seem futile today, there are salespeople who persist in acting as “information gatekeepers,” attempting to control customers by managing the information they give them. In answering a customer question, they’re “selective” in the answers they give them.

These same customers learn to rely and trust those sales reps who take the time to create

receive straight, reliable answers.

Ironically, it’s just the opposite that builds trust with customers. Confidence in a salesperson comes from making sure

Going against the tide isn’t really an ethical issue. It’s quite practical.

What’s in the best interest of customers is good for salespeople, too. More satisfied customers and increased sales.

> John Graham of GrahamComm is a marketing and sales consultant and business writer.

He publishes a free monthly eBulletin, “No Nonsense Marketing & Sales.” Contact him at johnrg31@me.com, 617.774.9759, or johnrgraham.com.

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2. Skip “courting” customers. Salespeople are known to make a serious effort at “building a relationship” with prospects.

They do those things that build goodwill and establish friendships, all of which they hope

18 | AUGUST 2013

Start by analyzing the way other salespeople who serve your prospects and customers do their job. Get acquainted with what they do, how they perform and how they interact with your prospect. Develop an understanding of their modus operandi.

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WISCONSIN INDEPENDENT AGENT

WISCONSIN INDEPENDENT AGENT

AUGUST 2013 | 19

VIRTUAL UNIVERSITY

JEWELRY & THE PERSONAL ARTICLES FLOATER NORTHERN UNDERWRITING MANAGERS WHOLESALE DIVISION OF NORTHERN ILLINOIS INSURANCE

Homeowner carriers often have restrictions and capacity limitations for jewelry. Many carriers are not willing to write highervalue jewelry. It can be difficult to find a policy that adequately covers jewelry and also offers the client a competitive price.

A standalone jewelry policy (personal articles floater — PAF) addresses the jewelry need without impacting the homeowners policy.

Insurance losses related to jewelry are huge — much more than most insurers realize.

According to Department of Justice statistics, 70% of all personal property (contents) theft losses are jewelry. Insurance companies process billions of dollars in jewelry losses each year. Some of these jewelry losses are hidden, because they’re reported as “contents” losses under a homeowners policy, rather than as jewelry.

So what? Jewelry claims usually fall below the radar of concern for both insurers and agents because the cost of the settlement is comparatively small. But if that jewelry is on an HO policy, the impact of the claim can be serious.

Unlike most household contents covered in a homeowners policy, jewelry is small, valuable and very vulnerable. Jewelry is not only stored in the home, it also travels. It’s put on and usually forgotten as we go about our business, taken off and left on dresser or sink, regularly exposed to damage and loss. At home or out on the town, jewelry is a magnet for theft and it’s particularly prone to “mysterious disappearance.”

Unlike most household contents covered in a homeowners policy, jewelry is small, valuable and very vulnerable. Jewelry is not only stored in the home, it also travels.

If that lost or stolen jewelry is on a homeowners policy, it counts as a homeowners loss.

PILR underwriting reports, so the loss lives on, seemingly forever. Even if the jewelry is found or the claim is withdrawn, the CLUE and PILR listings remain. Because her ring lost a stone, the client loses her homeowners “claim free” rating.

Note: Many bureau reporting carriers are reporting PAF losses (which are considered “property losses”) to PILR, etc. This affects HO experience and rating. The solution is writing the PAF with a non-bureau reporting insurer.

Homeowner policies with losses are much harder to place with another carrier. Many agents already face shrinking sources and rising rates for HO policies, as insurers seek to protect themselves from disasters such as hurricanes, tornados, forest fires, earthquakes, hail storms and ice storms. Prior losses make placing a homeowner policy all the more difficult.

A word of caution: Not all standalone jewelry policies offer a cash settlement option.

This could have devastating consequences for the agent, even if the agent had only recommended the insurer. Not informing the client that a carrier offers only repair-orreplace settlements (no cash) could leave the agent open to an errors and omissions (E&O) problem. Even short of such an extreme consequence, a client who is dissatisfied at claim time can retaliate by taking all his business elsewhere.

While jewelry is usually a low-premium item, it has great emotional value to the client.

Jewelry can be the cornerstone to all your business with that client, both personal and commercial. Rather than simply referring a client to a standalone jewelry insurer, it is better to seek a direct appointment and place coverage yourself. That way you retain control of the account, and also enhance the client’s trust and reliance on you.

“Mysterious disappearance” claims in particular can kill remarketing the HO policy.

These unexplained losses are major red flags.

In addition, homeowner carriers usually have restrictions and capacity limitations for jewelry. Many carriers are not willing to write higher-value jewelry. It can be difficult to find a policy that adequately covers jewelry and also offers the client a competitive price.

A standalone jewelry policy (PAF) addresses the jewelry need without impacting the homeowners policy. You can offer your client the best HO policy at the best price, then offer a standalone policy for jewelry — either from the same carrier or through a company specializing in personal jewelry coverage.

Standalone policies may offer higher limits.

Far from being more costly, this solution means savings to the client. Standalone jewelry policies are quite competitive in price, and some insurers offer premium discounts not available on homeowner coverage. In the event of a jewelry loss, the homeowner policy — and the client’s claim-free status — are not affected.

HO scheduled jewelry losses hit CLUE and

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. WISCONSIN INDEPENDENT AGENT

> David W Hendry Jr. founded the Jewelry Insurance Brokerage of North America. Since 1994, Hendry has been training agents, underwriters, adjustors, and graduate gemologists in the art of jewelry insurance and industry standards. Contact David at dhendry@insurejewelry.com.

AUGUST 2013 | 21

SALES & LEADERSHIP CONFERENCE | KALAHARI RESORT & TRAPPERS TURN | JUNE 26-28, 2013 Thanks to our fantastic agents, company representatives and sponsors, the first annual Sales & Leadership Conference was a huge success. The new event was a great mix of classroom work, golf, networking, and breakout sessions for young producers, agency principals, and company executives alike.

With the positive response the IIAW received from participants, the Sales and Leadership Conference will be bigger and better in 2014!

The event’s sponsors included: Progressive Insurance, AAA, The IMT Group, Westfield Insurance, Amerisafe, Tri-State Restoration, Capitol Insurance, Chubb, Hastings Mutual, Benchmark Management, Pekin Insurance, ACUITY Insurance, Specialty Lines Underwriters, Society Insurance, West Bend Mutual Insurance, EMC Insurance, SECURA Insurance, National Restoration Inc., Grinnell Mutual Reinsurance, GMAC Insurance, The Hanover Insurance Group, Safeco Insurance, Cincinnati Insurance, United Heartland and Partners Mutual. We are grateful for their support.

 Dave Koberstein (Arthur J. Gallagher Risk Management Services), Eric Olson (Arthur J. Gallagher Risk Management Services), Randy Ciesielski (Lake Country Brokerage) and Jason Hendershott (Illinois Mutual Insurance) look forward to a round of birdies and eagles.

 Tracy Butz led the producer breakout session, Candid Conversations That Drive Results.

 Andrea Kiemen-Rognsvoog (Johnson Insurance), Janelle Higgins (Neckerman Insurance), and Trisha Ours (The Horton Group) enjoy a great day on the golf course.

 The IIAW’s Samantha Jefferson and Cari Lee greeted attendees at the registration table at Trappers Turn.

 Samantha Jefferson, Jonathan Ottman (Ansay & Associates), Andy Spaeth (Ansay & Associates), Jack Demski (Ansay & Associates), Mark Holzwart (National Restoration), Jean Dunker (Zingen & Braun Insurance), Dave Dunker (Zingen & Braun Insurance), and Matt Banaszynski (IIAW).

 The Young Agents Committee presented a producer panel Thursday morning. The panel was moderated

by IIAW Executive VP, Matt Banaszynski. From left: Matt Banaszynski, Andy Spaeth (Ansay & Associates), Derek Wickhem (John Wickhem Agency), Kevin Murray (Johnson Insurance), and Janelle Higgins (Neckerman Insurance).

 Amy Brice (Amerisafe), Cap Wallrich (Wallrich Agency), Amy Vue (Wallrich Agency), and Mike Walston (Walston Insurance Associates) on the golf course.

 Bruce Prince (The IMT Group), Ryan Unger (Dowd-Reliance Agency), Ryan Waite (Neckerman Insurance), and Josh Timm (The Hanover Group) all shot under par and are going pro.

22 | AUGUST 2013

 Dan Weedin’s management breakout session, Recruiting Top Talent & Maximizing Success, offered hiring strategies about how to find and keep the best talent.

 Renee Jendusa (R.W. Scobie/Midwest General Agency), Mary Hinner (R.W. Scobie/ Midwest General Agency), Jim Venturini (David Insurance), and David Plumb (Illinois Mutual Insurance) at Trappers Turn.

WISCONSIN INDEPENDENT AGENT

WISCONSIN INDEPENDENT AGENT

AUGUST 2013 | 23

AmTrust has the perfect blend for small businesses

ERRORS & OMISSIONS

AGENCY MANAGER TIPS FOR AVOIDING E&O CLAIMS Here are six tips on how to avoid E&O claims relating to cancellations and nonrenewals: >> 1 D evelop a credit policy for the agency and distribute it to all staff members regarding direct bill and agency bill practices for customer premium payments. >> 2 D on’t make a practice of extending credit to customers by advancing premiums on their behalf. >> 3 R un a report of all customers who have a history of making late payments to the insurance company.

Advise these customers who are chronically late making their direct bill payments that they must do so in a timely manner, and that they will not be contacted by anyone in the agency when their payments are late after their first and only notification. >> 4 A dvise customers that you do not accept payments for direct bill policies at your office. The insured needs to transmit them directly to the company to ensure timely receipt.

>> 5 I f you have had a policy of accepting cash payments, advise your customers that for their protection and that of your employees, you will no longer accept cash. >> 6 E stablish a written procedure for handling cancellations and nonrenewals, including rules for reinstatement or rewriting of coverage.

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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 your area—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®.

Better yet, we offer a 10% discount on BOP for our existing workers’ compensation policyholders. An umbrella policy is also available, with limits ranging from $1 million to $10 million to fit over our BOP and commercial auto products.

For more information about how you can write business with AmTrust, please call 877.528.7878 or visit www.amtrustnorthamerica.com.

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© Copyright Employers Mutual Casualty Company 2013. All rights reserved.

A.M. Best rating of “A” (Excellent) FSC X 24 7798_EMC_BIG_Wisconsin_Ad_Retention19_Beckie_7.5x4.75.indd | AUGUST 2013

1

WISCONSIN INDEPENDENT AGENT 6/18/13

10:04 AM

An AmTrust Financial Company

Your Success is Our Policy.®

S W E N E H T N I S R E B MEM Society Insurance Wins IMCA Award Of Excellence

AUGUST 10 Hot air balloon rides at Mighty Z Hot Air Balloon Adventures, Brillion

The award was presented on June 26 at the IMCA’s annual conference in Philadelphia. Brad Korkow, Society’s Marketing Manager, accepted the award.

“This is a golden opportunity to check items off your personal bucket list while benefiting palliative care,” said Ben Salzmann, ACUITY President and CEO.

The “Small Details. Big Difference.” campaign focuses on the small details at Society — ranging from policies to service and beyond — that set the company apart from its competitors. Society worked with Madison, Wis.-based Hiebing Agency to develop and roll out the campaign.

Find Society on the Web at www.societyinsurance.com.

ACUITY Insurance Bucket List Gala To Benefit Palliative Care ACUITY’s Bucket List Bash, to be held October 12, 2013, at ACUITY’s corporate headquarters, will feature many bucket listthemed activities and entertainment, with proceeds from the Bash going toward the creation of a palliative care service for patients and their families in Sheboygan County.

“Today, people in the Sheboygan County community have access to the best medical care available, providing treatment for physical illness, injury, and disease,” said Dr. Andrea Gavin, president of Aurora Sheboygan Clinic. “However, living with a serious medical condition is challenging. There is a need to go beyond physical care and provide comfort in times of medical crisis.”

Palliative care augments curative treatment with consultative services that are focused on easing both physical and emotional pain. Funds raised from the Bash will go toward startup costs associated with forming a new palliative care service, which will operate at no cost to patients.

Additionally, in the weeks leading up to the Bash, ACUITY is offering the chance to participate in several bucket list activities at locations throughout southeastern Wisconsin. Tickets are available to purchase for:

26 | AUGUST 2013

Integrity Insurance Names Klister As Personal Lines Product Manager

AUGUST 9 Helicopter rides along Lake Michigan from Fly High Wisconsin, Sheboygan County Airport

Society Insurance’s new “Small Details. Big Difference.” branding campaign was recently honored with an Award of Excellence by the Insurance Marketing and Communications Association (IMCA).

“We’re extremely honored to win this award,” Korkow said. “We feel the campaign truly represents what Society is all about, and we’re glad to be recognized for it.”

WS E N E H T N I S R E B MEM

AUGUST 16 OR 23 Cooking lessons at the American Club with a top chef AUGUST 24 OR 31 Skydiving at Milwaukee Skydive SEPTEMBER 11 Racing at Road America

For more information on pricing or to purchase Bucket List tickets, contact Gwen Seeboth at gwen.seeboth@acuity.com, or 800.242.7666, extension 1880.

Underwriter Earns Top Industry Designation

ACUITY’s first inclusion on the Ward’s 50 in 2000 marked the beginning of a period of growth, profitability, and consistency of performance that is unparalleled in the insurer’s nearly 90-year history. Year after year, ACUITY has outperformed the industry.

In 2012, the company grew its revenue over 17 percent while recording a combined ratio of just 94.2 and surpassing $1 billion in policyholder’s surplus. In 2013, ACUITY surpassed the $1 billion premium mark and is on the doorstep of reaching $3 billion in assets.

“Being part of the Ward’s 50 is a testament to our operational consistency and efficiency. It is also an achievement that all our employees and independent agents can be proud of,” said Laura Conklin, vice president - business consulting.

Partnership Earns International Creative Awards ACUITY announced that its 2012 Annual Report, created in partnership with DuFour Advertising, has earned several industry awards.

ACUITY’s Mark Walecka earned the Chartered Property Casualty Underwriter (CPCU) designation, the insurance industry’s highest professional certification.

Underwriter at ACUITY’s Corporate Headquarters. He earned a bachelor’s degree from Marian University in mathematics with a minor in secondary education. Mark has been with ACUITY since 1998.

The American Institute for CPCU is an independent, nonprofit organization that offers educational programs and certification to insurance professionals. Earning the CPCU designation, the Institute’s most comprehensive program, requires passing eight national examinations and having a minimum of three years’ experience in the insurance business, as well as agreeing to abide by the Institute’s Code of Professional Ethics.

Company Earns Top Performer Honors From Ward Group ACUITY has been named to the Ward’s 50 Benchmark Group of top-performing insurance companies, putting the company in the top 2 percent of insurers nationwide. ACUITY has been included in the Ward’s 50 list for 14 consecutive years and less than a handful of other companies have accomplished this feat.

Annually, Ward Group analyzes the financial performance of over 3,000 property-casualty insurance companies domiciled in the United States. The top 50 performers are companies that have excelled at balancing safety, consistency, and performance.

“It’s immensely gratifying to be recognized as one of the top performers, out of more than 3,000 insurers nationwide, for 14 straight years,” said Ben Salzmann, ACUITY President and CEO. “What is also incredible about our uninterrupted ranking on the Ward’s 50 is that, just 15 years ago, we had never been ranked at all.”

WISCONSIN INDEPENDENT AGENT

The Association of Marketing and Communication Professionals recognized ACUITY’s 2012 project with a Platinum MarCom Award and a Platinum Hermes Award. The MarCom Awards represent the world’s largest international competition for communication programs and material, and the Hermes Award competition recognizes excellence in the concept, writing, and design of both traditional and emerging media.

ACUITY’s 2012 Annual Report also earned a Bronze Stevie Award in the American Business Awards category. The American Business Awards are the nation’s premier business awards program, judging more than 3,200 nominations from organizations of all sizes and in virtually every industry.

This marks the third consecutive year ACUITY’s Annual Report has earned a Platinum Hermes, and the fourth year it has garnered a Platinum MarCom. The 2012 project, titled Word of Mouth, utilized computer-driven, miniature video technology within a traditional bound-book format to deliver an interactive experience to readers, including messages from each of ACUITY’s executive officers.

“Our Annual Report is not just a way to deliver news of our results; it is a medium for communicating our culture to all our stakeholders and the public,” said Ben Salzmann, ACUITY President and CEO. “What better way to do that than to use cutting-edge technology to have ACUITY talk directly to the reader.”

On July 9, Integrity Insurance named Korey Klister as its new personal lines product manager. In this position, Klister is responsible for monitoring the overall performance of the personal lines insurance products, partnering with all of the departments at Integrity to identify initiatives to help maximize policyholder satisfaction and achieve company goals.

Klister brings over nine years of insurance and pricing experience to his new role and most recently was with SECURA Insurance in Appleton as an actuarial analyst. He earned a Bachelor of Science degree at UW-Stevens Point, with majors in Mathematics and Business Administration and is an Associate of the Casualty Actuarial Society (ACAS) and also a member of the American Academy of Actuaries (MAAA).

“We are excited to have Korey join our team,” said Steve Klingemann, vice president of personal lines for Integrity Insurance. “His background in pricing and analytics will complement our current efforts and enhance the service we provide.”

Find Integrity on the Web at www.integrityinsurance.com.

From the friendly voices of our customer service staff to the personal visits by our marketing managers and underwriters, to the promptness of our claims adjusters, we are told time and again …

Our people set us apart.

For information about becoming a Partners Mutual Insurance Agent please contact Lyn Schumann at 262.432.3430 or schumann.lyn@partnersmutual.com

Find ACUITY on the Web at www.acuity.com.

Where Better Service Matters | Since 1931 WISCONSIN INDEPENDENT AGENT

AUGUST 2013 | 27

FROM THE ARCHIVES

Looking for a rewarding position in a great team environment?

We need you!

At WPS, doing what’s right means helping Wisconsin residents protect what all of us value most: our health, financial security, and peace of mind.

For more information about becoming an Individual Sales Representative, please visit www.wpsic.com.

D2E!+<BF Wisconsin Physicians Service Insurance Corporation Equal Opportunity/Affirmative Action Employer

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Slicked back hair, flat tops and skinny ties at the 65th presented a check to the mystery registrant winner, annual convention. During the 1964 event, Paul Mast Marvin C. Heimann of Platteville. Robert McKenna (left), the executive vice president of the Association, served as the Association?s president in 1963-64.

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WWW.IMTINS.COM

WEST DES MOINES, IOWA • 800.274.3531 • WWW.IMTINS.COM

28 | AUGUST 2013

WISCONSIN INDEPENDENT AGENT

WISCONSIN INDEPENDENT AGENT

ROBERTSON RYAN & ASSOCIATES, INC. AUGUST 2013 | 29

FOOD FOR THOUGHT A NEW DEAL FOR AMERICA On August 14, 1935, Pres.

Franklin Roosevelt signed the Social Security Act into law.

The act was an attempt to limit what were seen as dangers in the modern American life, including old age, poverty, unemployment, and the burdens of widows and fatherless children. By signing this act, Roosevelt became the first President to advocate federal assistance for the elderly. Source: wikipedia.org

Have u heard the latest about ACUITY?

YES! Every1 is talking about them : )

INSURANCE INDUSTRY: STABLE & STRONG IN WISCONSIN According to a June 24, 2013, article in the Milwaukee Journal Sentinel, Wisconsin is fourth in the nation with almost 250 insurance companies within its borders. About 80,000 people work in the state’s insurance industry in good paying jobs. Using information from 2010, the average insurance industry wage was $61,549, compared with the state average of $39,176.

“If you look at the time period of about 2001 to 2010, the state economy as a whole lost about 3.3% in terms of jobs,” said Connie O’Connell, executive director of the Wisconsin Council of Life Insurers and a former top insurance regulator in the state. “The insurance industry grew about 11.1% in that time frame.”

PLACED

Source: Milwaukee Journal Sentinel

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See what they’re saying at: www.acuity.com

>*#1#%)#*$",%4+%?@ABACABC?DE% "-%FG$#*$",H&&&I#(5"$(#$=5";%+"149J Insurance underwritten by Auto Club Insurance Association or Auto Club Group Insurance Company.

30 | AUGUST 2013

WISCONSIN INDEPENDENT AGENT

For All That Matters

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What makes the Insurance Career Center different?

Promotion where you want it: The Independent Insurance Agents & Brokers of America and InVEST work to promote the Insurance Career Center in the industry and with future insurance professionals at InVEST schools and colleges with insurance programs

Social media savvy: Postings automatically appear on the InVEST Facebook page, twitter Search qualified applicants: Post a job and gain free access to the resume search feature Entry level positions and internships are highlighted at the InVEST student website at www.learninsurance.org

Visit www.insurancecareercenter.org to post positions, search resumes and much more.

InVEST is a classroom to career insurance education program designed to increase awareness of the insurance industry with students and to introduce them to careers in the insurance industry.

To learn more about InVEST, visit www.investprogram.org.