December 2013 IIAW Wisconsin Independent Agent Magazine by Independent Insurance Agents of Wisconsin

wisconsin

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INDEPENDENT AGENT DECEMBER 2013

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Happy ❆ ❄ Holidays FROM THE

IIAW BOARD OF DIRECTORS

wisconsin

INDEPENDENT AGENT

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Open Door Policy Your Association in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Meet Your New IIAW Board Members . . . . . . . . . . . . . . . . . . . 8 Commentary From Counsel Rollout Or Wipeout? Healthcare.gov Goes Live . . . . . . . . . . . 12 News From ACT ACT: A Great Resource For Agents . . . . . . . . . . . . . . . . . . . . . 14 Focus On Content Learn From The Big Mistakes Of Healthcare.gov . . . . . . . . . . 17

Best wishes for a happy new year filled with health, happiness, and success.

Marketing Minute Get Creative! Ideas For Agents . . . . . . . . . . . . . . . . . . . . . . . . . 20 Errors & Omissions I Still Owe How Much? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 1st Annual Autumn Retreat Pictorial . . . . . . . . . . . . . . . . . . 24

DECEMBER 2013 Eric Schwartz, Editor

On The Cover… The 2013-14 Independent Insurance Agents of Wisconsin Board of Directors. Front: Bruce Kommers, Board Member (McCormick Klessig & Associates); Linda Steiner, State National Director (Johnson Insurance Services); Dave Dunker, President (Zingen & Braun Insurance); Steve Leitch, Secretary-Treasurer (Leitch Insurance Agency); and Lise Meyer Kobussen, Board Member (Meyer Insurance Agency). Back: Mike Walston, Board Member (Walston Insurance Associates); Tom Holter, Board Member (TriCor Inc.); Jeff Rasmussen, Board Member (Aero Insurance); Jason Bott, Board Member (Robertson-Ryan & Associates); Brian McClone, Board Member (McClone Insurance Group); and Matt Weimer, Board Member (Diversified Insurance Solutions). Not pictured: John Wickhem, President-Elect (John Wickhem Agency); Mike Froh, Chairman of the Board (Burkart-Heisdorf Insurance); and Mike Ansay, Board Member (Ansay & Associates).

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 2013-2014 Executive Committee

HAPPY HOLIDAYS

AmTrust North America .................................... 7

President-elect ........................................... John Wickhem P.O. Box 1500, Janesville, WI 53547-1500

2013-2014 Committee Chairs

Secretary-Treasurer ......................................... Steve Leitch P.O. Box 85, River Falls, WI 54022

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

Chairman of the Board ..................................... Mike Froh P.O. Box 1320, Sheboygan, WI 53082-1320

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

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

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

2013-2014 Board of Directors

Finance & Compensation .............................. Steve Leitch P.O. Box 85, River Falls, WI 54022

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 Brian McClone 505 North Westfield Street, Oshkosh, WI 54902 Jeff Rasmussen 525 Junction Road, Madison, WI 53717

AAA ................................................................ 26 ACUITY Insurance ........................................... 27

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

Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704

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Badger Mutual ................................................. 14 Burns & Wilcox ................................................. 6 Cyber Liability Program .................................. 21 EMC Insurance.................................................. 9 Guard Insurance ..............................................10 IIAW Continuing Education ...............................11

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

Northern Underwriting Managers ................... 15

Industry Relations ............................................. Tom Sitter P.O. Box 2424, Oshkosh, WI 54903-2424

Partners Mutual ............................................. 22

Membership Development ................................. Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610 Smaller Agencies .................................... Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Technical ......................................................Andy Burkart P.O. Box 1320, Sheboygan, WI 53081-1320 Young Agents ............................................ Janelle Higgins 6200 Mineral Point Road, Madison, WI 53705-4504

Pekin Insurance.............................................. 22 Robertson Ryan.............................................. 20 SECURA Insurance ........................................... 16 Trusted Choice ................................BACK COVER The IMT Group ................................................ 13 West Bend ....................................................... 2

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

Western National Insurance ............................. 4

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

Wilson Mutual ................................................... 9

WISCONSIN INDEPENDENT AGENT

DECEMBER 2013 | 3

OPEN DOOR POLICY

YOUR ASSOCIATION IN ACTION In mid-November, Jim Manke, president of Association Solutions, mediated a strategic planning session at the IIAW with the board of directors and staff. Over the course of two days, Jim and an outstanding group of agents discussed the priorities of the Association and where we should focus our time, resources and energy.

Branding, recruiting new talent, increasing revenues and perpetuation were just some of the important topics on the table. But there was one area of discussion that proved to be the group’s number one priority: government affairs.

about the impacts of the law. Democrats and Democratic mouthpieces like Moveon. org are finding this law to be untenable. Obamacare is just bad policy.

interests. Defending our industry should be reason enough to donate but there’s an added incentive to donate now. As part of our

There is a real reason for this; bad legislation affects our industry, the economy and our country. Everyone is sick and tired of hearing about Obamacare, but the law’s problems underscore the importance of what our strategic planning session found. It is crucial that we elect politicians that value insurance agents and sponsor legislation favorable to our industry. The President said on June 15, 2009 (and many times after this), “If you like your doctor, you will be able to keep your doctor, period.” Later in that same speech to the American Medical Association, he said the same thing about health insurance — if you like what you have, keep it. Period. This is President Obama’s “Read My Lips” moment. Millions are at risk of losing their family doctors and health insurance. Higher taxes and deductibles look to make tight family budgets even tighter. Businesses are holding back on hiring. Americans of all stripes are feeling the weight of this far reaching and shortsighted law. On the insurance front, because of the law, the volume of business underwritten

Jim Manke mediated a strategic planning session at the IIAW offices on November 12 and 13. Of course, with all of its problems, there’s ramped up talk about repealing the law. While that would be ideal there’s a lot of work to do to achieve that end. And that’s why there’s an urgency regarding government affairs. Obamacare is the hot button issue today (and will be for the unforeseeable future) but other harmful pieces of legislation — on the state and national stage — will definitely be on the table in the future. We have to be competitive when that time comes.

Obamacare’s problems underscore the importance of what our strategic planning session found. It is crucial that we elect politicians that value insurance agents and sponsor legislation favorable to our industry.

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by health insurance agents looks to drop dramatically. Even now, with everything we know about the rollout’s failures, there’s still tremendous uncertainty in our industry WISCONSIN INDEPENDENT AGENT

That’s why it’s imperative to get involved now and contribute to the IIAW Conduit. With those dollars, we can target effective legislators who can lead the charge for our

biannual Day on the Hill coming up in February, we will be holding a Legislative Leaders Reception at The Old Fashioned restaurant on the Capitol Square. Only conduit donors are eligible to attend this private reception. If a conduit donation is not in the cards, I urge you take part in the Day on the Hill on February 12. This is a rare opportunity to meet your legislators and let them know what’s important to you. These are faceto-face meetings in the legislators’ Capitol offices. An insert in this month’s magazine details the events of the Day on the Hill. You can register for the Day on the Hill by going to www.iiaw. com. Donate to the IIAW Conduit. Attend the Day on the Hill. The time is now to get involved.

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

DECEMBER 2013 | 5

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MEET YOUR NEW IIAW BOARD MEMBERS STEVE LEITCH Steve Leitch started a three-year term on the Independent Insurance Agents of Wisconsin (IIAW) Board of Directors on September 1. Steve is the owner and president of Leitch Insurance Agency in River Falls and Mercer, Wisconsin. During his 26 years in the insurance industry, Steve has been active and successful in the IIAW. In 2010, he was named Agent of the Year, the Associationâ&#x20AC;&#x2122;s highest individual honor. He is currently chairman of the Finance and Compensation Committee, and has served on the Young Agents, Technical and Smaller Agents committees. â&#x20AC;&#x153;In the upcoming year, Iâ&#x20AC;&#x2122;d like to work to continue to bring services and benefits to smaller agents,â&#x20AC;? said Steve. â&#x20AC;&#x153;Improvements have already been made relative to membership pricing, the value of the Autumn Retreat, and other areas, but Iâ&#x20AC;&#x2122;d like to continue to push progress in this arena. As our landscape continues to evolve, I think the Association can help our smaller agency members to be strong contenders in their respective marketplaces.â&#x20AC;? Steve thinks itâ&#x20AC;&#x2122;s a phenomenal time to be involved with the Association. â&#x20AC;&#x153;I served on the board several years ago and greatly admired Bob, Ed, and the Associationâ&#x20AC;&#x2122;s staff for what they did for member agents,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve always enjoyed a strong Association with great value. Today, with Matt and the current staff, my enthusiasm is even higher. Our Association could not be in a better position than it is today relative to industry relations, government relations, or value to agents. I am honored to be involved at the board level. It sounds clichĂŠ, but I think itâ&#x20AC;&#x2122;s important to give back when we can. This industry and Association have been good to me, my agency, and my family, and Iâ&#x20AC;&#x2122;ll try to do what I can to contribute. Iâ&#x20AC;&#x2122;m in excellent company on the board and value the interaction with agents that I wouldnâ&#x20AC;&#x2122;t normally have opportunity to see. I still think I benefit more than Iâ&#x20AC;&#x2122;ll ever be able to contribute to the Association, but I hope to give it my best.â&#x20AC;? Leitch Insurance Agency Inc. has locations in River Falls and Mercer, Wisconsin. Find Leitch Insurance on the Web at www. leitchinsurance.com.

MIKE WALSTON On September 1, Mike Walston started a three-year term on the IIAW Board of Directors. Mike is president of Walston

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Insurance Associates Inc. in Kewaunee, Wisconsin. During his 35 years in the insurance industry, Mike has served on a number of IIAW committees. He is currently the chairman of the Smaller Agents Committee and has served in this capacity for three years. He has also been involved with Project InVEST and the Automation-Technology and Industry Relations committees. â&#x20AC;&#x153;As a new board member, Iâ&#x20AC;&#x2122;d like to learn the ropes of the Association and then help this current board in any way that I can,â&#x20AC;? he said. â&#x20AC;&#x153;Hopefully, Iâ&#x20AC;&#x2122;ll be able to bring my 30 years of experience with the Association to the board and pass on that knowledge to younger agents.â&#x20AC;? Mike is proud to be a member of the board of directors. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s quite a humbling honor for me,â&#x20AC;? he said. â&#x20AC;&#x153;I always hoped that it would happen. It was something to work hard for and aspire to because I thought it was an honorable position to be asked to serve on the board. Iâ&#x20AC;&#x2122;m really excited about it.â&#x20AC;? Walston Insurance Associates Inc. is located at 301 Harrison Street in Kewaunee Wisconsin. Find Walston Insurance on the Web at www. walstoninsurance.com.

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BRIAN McCLONE Brian McClone started a three-year term on the IIAW Board of Directors on September 1. In 1981, McClone began his career as an underwriter at ACUITY Insurance in Sheboygan. He joined McClone Insurance in 1984. Today, Brian is vice president and commercial risk advisor at The McClone Insurance Group in Oshkosh. He has served on the Technical Committee for the past three years. â&#x20AC;&#x153;My overall goals for the year are to support the Associationâ&#x20AC;&#x2122;s current curriculum of programs and to create new opportunities for our member agencies to become more successful,â&#x20AC;? said Brian. â&#x20AC;&#x153;The Big â&#x20AC;&#x2DC;Iâ&#x20AC;&#x2122; is already involved in some very valuable initiatives to help our members. I want to make sure that the communication and promotion is there so more members can take advantage of these initiatives and support the IIAW. We need to reach out to our members.â&#x20AC;?

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Brian is also honored to serve on the board. â&#x20AC;&#x153;Truthfully, itâ&#x20AC;&#x2122;s an honor to be looked at for this position,â&#x20AC;? he said. â&#x20AC;&#x153;Our Association is one of the best in the country and itâ&#x20AC;&#x2122;s improving daily with Matt and his teamâ&#x20AC;&#x2122;s leadership. I look forward to giving back to an industry that has given so much to my family and me.â&#x20AC;? The McClone Insurance Group has locations in Menasha, Fond du Lac, Brookfield, Oshkosh, Sheboygan, Green Lake, and Mt. Horeb. Find McClone Insurance on the Web at www.mcclone.com. WISCONSIN INDEPENDENT AGENT

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COMMENTARY FROM COUNSEL

Rollout or Wipeout? Healthcare.gov Goes Live The Patient Protection and Affordable Care Act, Obamacare, Health Care Reform, the President’s Signature Achievement, Public Law 1148. No matter what you call it (though it does matter, as recent polls show people approve of the “Affordable Care Act” about 10-15% more than “Obamacare”), everyone pretty much agrees on what to call the ACA rollout so far - a train wreck. There was no way to miss the media and political frenzy surrounding the massive delays and complications for people trying to sign up on the new federal insurance exchange via the website, HealthCare.gov. The open enrollment period began on October 1, for coverage beginning January 1, 2014. So far, the website has suffered delays, crashed, and recorded inaccurate information. This was due in part to unexpectedly high traffic, combined with rushed and inadequate testing. In addition

allow consumers to enter a few basic criteria to search for a plan (aka “anonymous shopping” — like most online retailers), HealthCare.gov required users to input detailed demographic information before receiving an insurance quote from a separate webpage. Some suspect this was to avoid “sticker shock,” where consumers would have seen an expensive health plan based on a quick search, and only after inputting income and other information could they find applicable federal subsidies that would reduce their actual cost. Also, along with the ten states that partnered with the Obama administration to set up an exchange, 26 states decided not to set up their own insurance exchange, causing millions more Americans to look for coverage on the federal exchanges. Of course, that should not have been a surprise, since those 26 states announced their intentions long ago.

With no technical solution in sight, it is possible that other mandatory deadlines will be pushed back.

to the frustrations and wait times for people trying to enroll, it could have other costs if fewer people actually sign up for coverage. So far, enrollment on state-run exchanges is functioning better, though some individuals are left out due to the lack of Medicaid expansion in some states. In the short run, these complications will lead to more questions and congressional hearings, and in the long run they may delay enforcement and complicate the implementation of the ACA.

Technical Difficulties To develop the website to sign up for the federal exchanges, the federal government hired a contractor, CGI Federal in December 2011. Yet, according to the New York Times, because the government was slow in issuing specifications, the firm did not actually begin developing the site until this year. Officials made changes to the website right up to the point when it went live at the beginning of October. Testing that was scheduled to take place in July did not happen until late September. On October 1, even though the site contained all the features needed for open enrollment, it was unable to handle all the web traffic from more than eight million visitors in the first few days. In addition to technical issues, two other reasons help explain this online traffic jam. First, unlike most insurance websites that

The Obama Administration has described the insurance exchanges as “more than just a website,” noting people can sign up by phone or mail while promising a “tech surge” to fix the site. As of late October, more than 19 million have visited the website, though the White House has been reluctant to release the numbers of individuals who actually signed up or enrolled.

Hidden Costs These website malfunctions are annoying (and certainly don’t help to improve perceptions of government incompetence, especially after the recent federal shutdown), but they could also have a more tangible impact. Insurance premium costs could rise if these frustrations translate into too many discouraged individuals who do not complete the enrollment process. For the exchanges to work, the Congressional Budget Office projected that seven million people would sign up before the end of March 2014. Of course, the idea was that by adding millions of new people, states would create shared “risk-pools” to diffuse the cost of increased coverage among all enrollees.

The people who need health care the most will probably be the most persistent to enroll, which could make a state’s risk pool a little too risky. This in turn could force insurers to raise premiums, which would be an even greater disincentive for these “young invincibles” to enroll. However, in Massachusetts, which served as the model for the ACA, many younger people ultimately signed up once penalties for not having insurance took effect. Under the ACA, the penalty in 2014 will be the greater of $95 or one percent of taxable income, capped at just $285 (it rises in future years). In addition to potential premium increases, insurance companies anecdotally have also reported receiving inaccurate information from the government website such as missing data regarding eligibility, and spouses reported as children which requires manual corrections to what should have been an automated process. This also makes it harder for insurers to figure out how to price their plans. Other employers have dropped health insurance for employees because their plans don’t meet either federal minimum requirements for affordability, or benefits. This may force employees to enroll in an exchange plan. So, the President’s campaign pledge that “if you like your insurance, you can keep it” may be more accurately re-stated as “if you like your insurance, your employer wants to keep paying for it, and it meets ACA regulations, you can keep it.” Indeed, recent investigative reports have revealed that the “grandfather” clause for insurance plans in place when the ACA was enacted is extremely narrow and that millions of Americans are receiving cancellation notices.

State Exchanges Generally Fare Better In contrast to the problems with the federal exchange enrollment, so far the fourteen state-run exchanges are doing much better. For example, Oregon has already reduced its uninsured population by ten percent, and Arkansas had more

than half of its uninsured respond to eligibility notices. Though Hawaii, which used the same software developer as the feds, is having similar technical issues as HealthCare.gov. Notably, much of the state enrollment increase is tied to each state’s expansion of Medicaid, which the ACA permits for people up to 133 percent of the poverty level, and funds completely for three years. As of mid-October, the vast majority of people enrolling in new insurance plans in Washington, Kentucky, and New York were enrolled in Medicaid. The Medicaid signup is through state portals, not HealthCare.gov, and involves fewer choices than the exchange plans. Plus, states can use data, such as who receives other state benefits, to target people who might be eligible for this coverage.

the estimated five million in these states who is too young for Medicare, and earns less than 133 percent of the federal poverty level but too much for their state Medicaid program, may be unable to get coverage.

Hearings and a Later [Man]Date In response to these issues, members of Congress are doing what they do best: holding hearings. In mid-October, representatives from

first day of a month, and must be purchased at least two weeks before the effective date, so February 15, 2014 was the latest someone could have enrolled for coverage without hitting the three-month penalty trigger. Recently, the White House clarified that “people who do not have access to affordable care due to a state not expanding Medicaid or other factors will not be penalized,” and that the enrollment glitches could be a factor. Presumably that means that

For the exchanges to work, the Congressional Budget Office projected that seven million people would sign up before the end of March 2014. Of course, the idea was that by adding millions of new people, states would create shared “risk-pools” to diffuse the cost of increased coverage among all enrollees. The people who need health care the most will probably be the most persistent to enroll, which could make a state’s risk pool a little too risky.

However, not all is well in the 26 the states (including Wisconsin) that declined the Medicaid expansion (which they have the right to do under last year’s Supreme Court ruling). ACA subsidies apply only to the mid-range “silver” federal exchange plans, and for people earning between 133 and 400 percent of the poverty level. So an uninsured person one of

the software companies tried to explain the technical glitches with HealthCare.gov, and Health and Human Services Secretary Kathleen Sibelius testified before a House committee on October 30, with a Senate hearing scheduled for November 6. So far, the Administration has offered one concession due to the enrollment delays. While the mandate for individuals to obtain insurance begins January 1, 2014, the penalty only applies to someone who goes without coverage for three months. Exchange policies take effect the

individuals will have the full open enrollment period, which ends March 31, to enroll in a plan without risk of the penalty being applied. With no technical solution in sight, it is possible (as the White House hinted, then backpedaled on) that other mandatory deadlines will be pushed back. Perhaps, just as then-Speaker Pelosi told the American people when the ACA was being rammed through, “we have to pass the bill so that you can find out what is in it,” we have to roll out the ACA to find out how to fix it.

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> Josh Johanningmeier is the IIAW’s General Counsel. Call the Legal Services Hotline at (877) 236-1669.

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12 | DECEMBER 2013

WISCONSIN INDEPENDENT AGENT

DECEMBER 2013 | 13

NEWS FROM ACT

ACT: A GREAT RESOURCE FOR AGENTS

One of the best resources the Big “I” has to offer is the Agents Council for Technology (ACT), a group dedicated to advancing the “most effective business processes, practices and technologies, in order to enhance productivity, service, marketing, sales and security.” An industry institution since 1999, ACT offers resources and networking opportunities to independent agents, while at the same time establishing a platform to analyze technology and workflow concerns in the independent agent channel today. Agents Council for Technology members help the group stay on top of the strategic technology trends that will ultimately shape the future of both how consumers act and businesses respond. Independent agents need to be in the loop on current workflow and technology issues, and ACT can help with that. If ACT is new to you, check it out online at independentagent.com/act. You’ll see that the group focuses on agent and agent-carrier productivity, Internet marketing, agency security and understanding strategic trends. Subgroups are currently pursuing the following key initiatives:

If ACT is new to you, check it out online at independentagent.com/act. ❑ Agencies of the Future Work Group. Exploring what agencies are likely to look like five years from now in terms of structure and how they do business.

❑ Social Web Work Group. Assisting agencies in using social media effectively by communicating success stories through articles and webinars. ❑ Strategic Future Issues Work Group. Recently completed the “2012 Key Technology & Consumer Trends & Industry Must-Do Issues Report” and will continue to keep ACT members aware of the key trends likely to shape the IA channel’s future. If any of these initiatives appeal to you, I urge you to get involved. Executive director Jeff Yates, former CEO of the Big “I”, is the dedicated leader of ACT. With Jeff at the helm, the group is in excellent hands. Jeff brings a dedication and service to ACT that is admirable. He believes in the importance of agents being on top of technology and trends, and he helps bring that out in all ACT members and work groups. Jeff has been such a coach and > Bobby Bramlett is the mentor to many of us over the years, and immediate past chairman of continues to do so today as he creates great the Independent Insurance programs for ACT and its partners.

Agents & Brokers of America.

❑ Agency Business Intelligence Think Tank. Exploring how agencies can take advantage of new technologies and techniques to garner better business intelligence to enhance their marketing and sales activities, working in their systems and with their carriers and third parties. ❑ Agency Security Best Practices and HIPAA Work Groups. Developing new tools to assist agencies with HIPAA compliance. ❑ Carrier Communications Work Group. Encouraging carriers to make RSS feeds available to agents for general carrier bulletins so that agencies can more effectively direct this information to the appropriate employees. ❑ E&S Joint Working Group and Retail Agent — GA Subgroup. Identifying key opportunity areas where retail agents, general agents and other wholesalers can improve how they work together. ❑ Mid-Commercial Work Group. Encouraging the use of Real Time transactions for mid-commercial submissions and appetite determination. ❑ Mobile Strategies Work Group. Looking at how various insurance processes such as servicing, claims, and sales and marketing might change and be enhanced with the availability of mobile tools. ❑ Real Time/Download Campaign Steering Committee, Agency Real Time Experience and Real-Time Endorsements Work Groups. Promoting adoption of Real Time by more agencies and carriers and encouraging carriers to offer the full range of real-time transactions across their major lines.

14 | DECEMBER 2013

WISCONSIN INDEPENDENT AGENT

DECEMBER 2013 | 15

FOCUS ON CONTENT

WHAT SMALL BUSINESSES CAN LEARN FROM

THE BIG MISTAKES OF HEALTHCARE.GOV Money can’t buy love, so I’ve been told. But guess what, it can’t buy a functioning website either. Okay, we know the healthcare.gov website doesn’t work, it’s a bad user experience, oh wait, there’s no user experience at all, and that in spite of there being thousands of websites around the world with more monthly traffic, this site can’t handle squat. So much for “Give me your tired, your poor, your huddled masses yearning to breathe free…” You bet people are tired, tired from a poorly developed website and massively peeved.

So, what can small and midsize businesses learn from this catastrophe? Probably the same thing Michael Bilandic, Chicago’s mayor in 1979, learned after 36” of snow fell and wasn’t removed for days on end. The big things will always be there for strife and conflict, but it’s the little things that will sink you. He lost to Jane Byrne because of a snowstorm – although in the case of the healthcare. gov site, it’s more like a firestorm.

Let’s make sure they’re safe at home.

Look, technology is everything, it’s war and it’s peace, it’s transportation, education, commerce, labor, homeland security, agriculture, energy – you get the idea. If you don’t think a digital prophet is needed in the cabinet, think again. It’s mindboggling to think we can build a stealthy bomber or explore outer space, but the government can’t build a website. And not just this site, nearly all of their sites lack the basics of good design, a favorable user experience, compelling content, and an actual information architecture that makes sense to people who don’t live 12 stories below the surface in Roswell, New Mexico. Here’s what we can all learn. Don’t go into your next website redesign project thinking it needs to be a footrace. If you don’t allow enough time on the front-end for research and discovery, and on the backend for usability

.go

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t al

Finally, and I’m overstating the obvious, go to someone that does this for a living. Here’s what CGI, the company hired to develop the healthcare.gov website, says about themselves:

if it doesn’t function properly and short cuts were the workaround. It’s happening right in front of your very eyes and fingertips, people get downright angry when a site doesn’t work, they pass judgment immediately, they tell others, your competitors pick-up on it, and it spirals out-of-control.

It’s mind-boggling to think we can build a stealthy bomber or explore outer space, but the government can’t build a website. Covering all the bases since 1900 Commercial • Personal • Farm-Ag • Specialty 16 | DECEMBER 2013

WISCONSIN INDEPENDENT AGENT

testing and bug abatement, good luck. Don’t be a skinflint when it comes to making an investment in your website, saving a few grand can cost you 10 times that, no 100 times that, WISCONSIN INDEPENDENT AGENT

blaming each other? Make certain the project manager for your new site has years of experience, has worked with thousands of stakeholders, has a portfolio of dozens or even a hundred websites that they’ve managed. And always remember this, in the web world, don’t send a boy to do a man’s job. I can’t begin to count the sites we’ve developed less than one year after someone else developed them. It happens all the time.

Expert project management is essential; it’s the price of admission for a well done website. Did you see the congressional hearings, the finger pointing, the independent contractors

At CGI, we’re committed to helping all of our stakeholders succeed. Our 69,000 professionals in 40 countries across the Americas, Europe and Asia Pacific provide end-to-end IT and business process services that facilitate the ongoing evolution of our clients’ businesses. CGI is committed to helping our clients achieve their business goals; to providing our professionals with rewarding careers; and to offering shareholders superior returns over time. At CGI, we are in the business of delivering results. Excuse me, where’s the reference to building websites? They’re an IT company, not a digital strategy firm; they don’t design, develop or provide user design experience strategies for websites. Oh, and by the way, have a look at CGI’s website. It stinks.

> Thomas Marks is president and managing partner of TMA+Peritus. Prior to starting the agency in 1983, Tom was the VP of marketing and advertising for Bally Corporation in Chicago. He was also president of Bally’s multi-million dollar in-house ad agency FFC Advertising.

DECEMBER 2013 | 17

S W E N E H T N I S R E B MEM SECURA: More Than $100,000 Raised For Breast Cancer Research SECURA Insurance, its independent agents, and its fans on Facebook rallied together to raise funds and spread awareness for breast cancer research during the company’s annual One by One campaign. The company donated more than $25,000 this year to the Breast Cancer Research Foundation (BCRF) on behalf of those who participated. This makes SECURA’s five-year campaign total more than $106,000 given to the BCRF. For each new MILE-STONE® home and auto policy and Specialty Lines account written between Aug. 1 and Oct. 31, 2013, the carrier donated money to the BCRF. Independent agents who represent SECURA in its 12 states helped make the campaign a success. “Our agency partners truly care about helping others and showed support for this important cause during the entire campaign,” said John Bykowski, CEO. “They not only helped us raise funds, but they shared stories about how breast cancer has impacted their lives and those who are close to them to help us spread awareness.” On SECURA’s Facebook page, agents and others posted photos of loved ones who’ve been affected by the disease, and the carrier honored them with a donation to the BCRF. At work, SECURA associates further showed their support for the cause by wearing pink. View the photos and inspirational messages at facebook.com/ securainsurance, and see a list of honorees at www.secura.net.

positive and motivating work environment helps our 1,100 associates deliver outstanding service to our agents and policyholders, which helps make West Bend their company of choice, too.” West Bend offers their associates many amenities, including continuing education courses held in a state-of-the-art training facility; an on-site bank; dry cleaning services; a 7,100-square-foot fitness center; a variety of fitness classes; three miles of walking trails; on-site massage therapist; and wellness programs that include health risk assessments. West Bend associates say they like being part of a company with community and environmental priorities. West Bend actively supports dozens of not-for-profit organizations, including Habitat for Humanity, United Way, and The MACC Fund. Care for the environment is promoted with gardens for associates to grow their own organic produce, reduction of paper use, elimination of plastic wear and Styrofoam in the on-site cafeteria, and the preservation of 160 acres of prairie on their campus. These are just a few of the company’s sustainability initiatives.

Company Honored With Distinguished Performer Award West Bend Mutual Insurance Company has been honored with the Deloitte Distinguished Performer Award – Environment for the company’s care of the environment and its sustainability efforts. Among the initiatives recognized are: ! Converting the site of the company’s location from corn fields to natural prairie.

! Mowing only 5 of 160 total acres. ! Providing organic vegetable garden plots for company employees.

Company Honored With National Workplace Award For Fourth Straight Year For the fourth year in a row, Business Insurance magazine and the Best Companies Group have named West Bend Mutual Insurance Company one of the nation’s top places to work in the large property/ casualty insurer category. West Bend was one of 65 companies nationally recognized in the 2013 Best Places to Work in Insurance program. Most of the Workplace Award evaluation — 75% — is based on confidential employee surveys. The remaining 25% is based on the company’s workplace policies, practices, and demographics. “At West Bend, our vision is to be the company of choice for our policyholders, agents, and associates,” said Kevin Steiner, president and CEO. “This top workplace award is strong evidence that our associates see West Bend as their company of choice. We believe our

18 | DECEMBER 2013

demonstrates that we are trusted by an ever-increasing number of individuals, families, and businesses for their insurance protection.”

ACUITY Insurance Company Partners With Sheboygan Community To Support Palliative Care The Sheboygan County community has responded to the need for palliative care with $160,000 in monetary contributions to support Aurora Sheboygan Medical Center’s palliative care program. On October 12, ACUITY sponsored the “Bucket List Bash” at its corporate headquarters. Over 600 attendees enjoyed the opportunity to participate in many bucketlist-themed activities both at the bash and in the weeks leading up to the event. Ticket sales and auctions during the Bucket List Bash event combined with pre-bash events and sponsorships to raise funds for the initiative. All funds will go toward startup costs associated with forming a new palliative care service to benefit patients and their families in Sheboygan County. Proceeds from the bash also add to those previously tallied in the ACUITY Health Challenge, held in July, which generated over $20,000 for the Vince Lombardi Cancer Clinic Palliative Care Fund in Sheboygan County. To date, the fundraising initiative has put Aurora over two-thirds of the way toward its total fundraising goal.

! Planting more than 15,000 trees and shrubs.

For more information about SECURA, please visit www.secura.net.

West Bend Mutual Insurance

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

! Keeping energy use and costs down through such efforts as installing more than 700 LED lights, reducing energy use on hot summer days when electricity prices are higher, and automatically turning off lights after the work day. ! Using china and silverware to cut down on disposables in the company cafeteria. ! Purchasing compostable disposables when their use is necessary. “We are delighted to receive the Environmental Award from Deloitte for 2013,” said Dale Kent, West Bend’s Chief Financial Officer. “Our associates have built a stimulating and beautiful workplace that just creates a ‘feel good’ attitude the moment you step onto the campus. In fact, our facility has become a favorite gathering place for numerous community groups, an outreach we are proud to provide. It is truly a unique place.” For more information about West Bend, please visit www. thesilverlining.com. WISCONSIN INDEPENDENT AGENT

Palliative care augments curative treatment with consultative services that are focused on easing both physical and emotional pain. Aurora Sheboygan’s palliative care program will consist of three components: nurse practitioners who develop individualized care plans; collaboration with community partners to develop a network of care providers and resources; and providing civic, business, and religious groups with education about palliative care. “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,” said Ben Salzmann, ACUITY President and CEO. “Providing that comfort is the role of palliative care, and ACUITY is proud to team up with the community and Aurora to support the creation of a program to serve Sheboygan County.”

Company Reaches $3 Billion Asset Milestone On Oct. 16, ACUITY announced that it has reached $3 billion in assets (GAAP). The amount of assets ACUITY manages is not just a measure of the company’s size, but also an important indicator of its ability to meet obligations to policyholders. “Our $3 billion in assets assures policyholders and agents that ACUITY is based on a solid capital foundation,” said Ben Salzmann, ACUITY President and CEO. “Additionally, our growth in assets WISCONSIN INDEPENDENT AGENT

ACUITY’s announcement of asset growth follows the company’s achievement of reaching the $1 billion revenue milestone earlier this year. ACUITY has averaged a double-digit growth rate over the past 14 years despite insurance market fluctuations and global economic downturns. During that period, ACUITY has also expanded its geographic reach, doubling the number of states in which it does business. “We have the agents, employees, and strategic plan in place to sustain our momentum,” Salzmann said. “Our continued strong growth shows that we are pricing both fairly and competitively, which helps independent agents write more business and allows us to serve as a source of financial security for more customers.” For more information about ACUITY, please visit www.acuity.com.

Philadelphia Insurance Donates $70,000 For Typhoon Relief Philadelphia Insurance Companies (PHLY) and its leadership are donating $70,000 to the American Red Cross to provide relief to the people affected by Typhoon Haiyan in the Philippines. “We are saddened to hear the news and see the images of devastation and loss in the Philippines,” shared Bob O’Leary, president and CEO of Philadelphia Insurance Companies. “We commend our partners at the Red Cross for their continued commitment to disaster relief and pledge our support to their efforts.” Philadelphia Insurance is pledging $50,000 and will match all employee donations for relief efforts. PHLY’s founder and chairman emeritus James J. Maguire will donate $10,000 from the Maguire Foundation and PHLY’s Chairman Jamie Maguire will donate another $10,000 to the Red Cross. “We are grateful for the support Philadelphia Insurance Companies has provided in times of disaster, both close to home and internationally,” said Judge Renee Cardwell Hughes, CEO of the American Red Cross Southeastern Pennsylvania. PHLY donated $50,000 to the Red Cross in May to aid Midwest tornado victims and in 2012 partnered with members of the Tokio Marine Group to donate more than $195,000 to the Red Cross following Hurricane Sandy. The Company and its employees also raised $129,000 for the Red Cross Haiti relief fund and more than $195,000 for the Red Cross Japan tsunami and earthquake relief fund. Philadelphia Insurance Companies has donated more than $14 million to charitable causes and organizations since 1980. For more information about Philadelphia Insurance, please visit.www. phly.com.

DECEMBER 2013 | 19

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Host an Event Getting the word out about your business usually starts with networking. But don’t dismiss the idea of hosting an event — maybe even hosting a networking night at your insurance office. Hosting a small, local event puts you in direct touch with potential

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> Scott Morgan is New Jersey-based writer.

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needs are right now. Also consider promotional Offer Referral contests that allow ! Rewards Referral rewards are nothing new, but they you to collect D#!?3=!#%,!5#-+!,#=)$<!9)//!E)-$!F%-,#3<!G@2+C!H1+-)>34!HI9+-<!),!JKJLMMKLNOPQ still work. Let your clients know that for contact information every new client you bring in, you will pay Access Trade Groups from participants them a sum of money, say $100. Or maybe Insurance covers a wide range of subjects and keep in touch you will offer them discounts on their and industries — everything from auto and with them.

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life to travel and earthquake. And if there is a category to insure, there almost surely is a trade group or association for it. Get in touch with trade groups in your area of expertise. You may be able to share the cost of crosspromotional advertising or co-sponsor an event. The possibilities are as limitless as the number of things you can insure.

presence. Make sure you have one, ()*234!,-#%./+!0++1234!5)-0+,6!#-!;#%/=!$#%!/20+!)99+66!,#!5)3$!5#-+!5)-0+,67! too. Get onto social media sites and ,@+!)36;+-!26!A#.+-,6#3!A$)3 reach out to your customers directly If your marketing plans are in a rut, give some different ideas a try. BC!$#%!)6!#;3+-!;)3,!,#!61+3=!/+66!>5+!#3!)=52326,-)>#3!.%,!9#3>3%+!,#!#;3!,@+! with online polls and quizzes. The answers to your questions will let you .##0<!,@+!)36;+-!26!A#.+-,6#3!A$)3 know exactly what potential clients BC!$#%!)6!#;3+-!;)3,!,#!6+//!$#%-!)4+39$<!,@+!)36;+-!26!A#.+-,6#3!A$)3 clients who will now know how to find your abound in cities and more densely populated are thinking — BC!$#%!;)3,!5#-+!9#3626,+39$!23!+)-32346<!239/%=234!1-#?,!6@)-234<!,@+!)36;+-!26! office. If you are a specialty insurer, such as areas, and many host health fairs throughout and exactly what auto, consider A#.+-,6#3!A$)3 co-hosting an event with an the year. Also, many pharmacies and their insurance auto dealership or another complementary business.

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Even in today’s “buy now/pay later” society, no one is overjoyed when they receive a bill some time after the sale, especially if the bill is a surprise or for more than anticipated. This is true in the insurance business as well. While premium audits may be a routine necessity for many types of insurance (i.e., workers’ compensation or business interruption), customers still seem surprised when the audit indicates they owe an additional premium. This is an area where agents often face errors and omissions claims. A typical claim looks something like the following: a new customer comes into the agency needing to replace his workers compensation policy — often right as his previous policy is

Another variation on this claim is when the customer undergoes rapid growth and takes on new employees without notifying the carrier or updating the policy. Sometimes, the claim relates to a misclassification of the type of employee (i.e., office clerical

While premium audits may be a routine necessity for many types of insurance, customers still seem surprised when the audit indicates they owe an additional premium.

expiring. While completing the application, he does not have the information with him to give you the number of employees, work classifications or payroll amounts. In order to get the application completed and submitted, he gives an estimate. A quote is received based on the estimate and the customer accepts and submits the premium down payment. At that point, payments are set up and everything appears to be fine. No revisions or updates are made on the estimates and the customer continues to make the premium payments. Fast forward to two years later when the carrier decides it is time to do a premium audit on the policy. Suddenly, the customer finds himself receiving an “unexpected” premium invoice for the back amounts owed. Faced with paying what can sometimes be a hefty amount, the customer is now looking for someone to share the burden. Often, that someone is their insurance agent. It is not unusual for the customer to start pointing fingers at the agent claiming that the agent should bear these costs since premium audits were not explained to him, or even claiming that the agent told him to underreport the payroll to save on premiums. WISCONSIN INDEPENDENT AGENT

instead of laborer). This can result in a reclassification of the employee on the audit and an increased premium based on a riskier class. This type of claim is not limited to workers’ compensation; it can occur on any policy that has a premium audit provision (i.e., business interruption). Furthermore, it is important to note that many of these policies allow for audits to occur up to three years later. As you might imagine, a three-year audit could generate a significant premium deficit and create a cash flow issue for the customer. While nothing you do can guarantee that a claim won’t be made against you, there are some things you can do to help prevent claims and make them more defensible. Know your products. You should definitely know which policies you sell have premium audit provisions. Know your customer. You should know something about your customer. Is he new to commercial insurance? Is this her first policy with an audit provision?

Make your client aware of the audit provision. While it might not be your legal duty, it does not hurt to advise your client of the audit provision. This will allow him to make better estimates in order to avoid later premiums, or at least, minimize them. He will also be able to update the carrier during the policy. Is their estimate correct? While you may not be responsible for making an estimate (on payroll for employees), you might want to make sure that your customer is aware of the impact underreporting might have on the ultimate premium she will pay. At any rate, it might not be a good idea to tell her that she should underreport. Document! As with all errors and omissions defenses, documentation helps you defend the claim. Document that you explained the premium audit provisions. A note in the file is helpful. A letter confirming is even better. Helping your customer plan his premium payments and avoid surprises will go a long way toward avoiding errors and omissions claims. > Charles Phillips is a vice president, claims and liability management with Swiss Re Corporate Solutions, and manages a team that handles claims against insurance professionals out of the Overland Park, Kan., office.

DECEMBER 2013 | 23

1 ST ANNUAL AUTUMN RETREAT A NORTHWOODS SUCCESS From the opening reception at the Minocqua Brewing Company to Dirk Nohreâ&#x20AC;&#x2122;s closing session, the first annual Autumn Retreat was a huge success. From October 23-25, member agents and supporting company staff enjoyed great food, team trivia, continuing education, a guided fishing tournament, and a tour of Three Lakes Winery. The Pointe Hotel and Suites served as the headquarters for the conference. Thank you to everyone who attended!

Thanks also to our great platinum level sponsors: AAA, ACUITY, Anthem Blue Cross Blue Shield, Capitol Insurance, Integrity Insurance, Progressive, QBE, SECURA, SFM, Society Insurance, The Hanover, The IMT Group, Travelers Insurance, West Bend and Wilson Insurance. We are also grateful for the support of our gold sponsors: Amerisafe, Burns & Wilcox, and Wisconsin Mutual. For more photos please go to www.facebook.com/IIAofWI The festive Minocqua Brewing Company was the home for the opening night reception and team trivia.

Fishing tourney participants hold up the sponsor flags.

More guided fishing participants on Lake Minocqua.

John Bristol, Michael Cashman, Dan Boll, Meggen Gagas, and Jenna Zalud enjoy the opening night festivities.

Bundled up and ready to fish.

Sampling some wine at Three Lakes Winery.

Team Trivia winners show off their prizes.

Todd Davis presented his new Risk Management & Risk Transfer CE session at The Pointe Hotel.

A great crowd enjoyed dinner and live piano music at The Boathouse.

IIAW staffers Samantha Jefferson, Matt Banaszynski and Cari Lee greet guests at the registration table.

24 | NOVEMBER 2013

WISCONSIN INDEPENDENT AGENT

Harrison and Keeley Scheider took home trophies for their fishing prowess.

WISCONSIN INDEPENDENT AGENT

A happy fishing tourney prize winner.

NOVEMBER 2013 | 25

FOOD FOR THOUGHT YEAH, BUT ARE THOSE 894 PEOPLE HAPPY? According to data released by the Social Security Administration on November 5, more than half of U.S. wage earners made less than $30,000 in 2012. (Data is based on the 153.6 million American wage earners.) That’s not far above the $27,010 that marked the federal poverty line for a family of five in 2012. Other findings include: • If you make more than $10,000, you earn more than 24.2% of Americans, or 37 million people. • If you make more than $15,000 (roughly the annual salary of a minimum-wage employee working 40 hours per week), you earn more than 32.2% of Americans. • If you make more than $30,000, you earn more than 53.2% of Americans. • If you make more than $50,000, you earn more than 73.4% of Americans. • If you make more than $100,000, you earn more than 92.6% of Americans.

WE SHOT FOR THE STARS AND LOOK WHAT WE HIT

• You are officially in the top 1% of American wage earners if you earn more than $250,000. • The 894 people that earn more than $20 million make more than 99.99989% of Americans, and are compensated a cumulative $37,009,979,568 per year. Source: huffingtonpost.com

PLACED IN COMPANY ASSETS!

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ACUITY ’s assets are skyrocketing to new heights!

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assets have tripled to $3 billion. We owe our thanks to

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loyal independent agents in 22 states and our staff of

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nearly 1,000 insurance professionals for helping ACUITY

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achieve results that are truly out of this world!

Just 10 years after reaching the $1 billion mark, ACUITY ’s

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>*#1#%)#*$",%4+%?@ABACABC?DE% "-%FG$#*$",H&&&I#(5"$(#$=5";%+"149J www.acuity.com

Insurance underwritten by Auto Club Insurance Association or Auto Club Group Insurance Company.

26 | DECEMBER 2013

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facebook.com/acuitywow

Trusted Choice Independent Insurance Agents of Wisconsin

725 JOHN NOLEN DRIVE MADISON, WI 53713 ADDRESS SERVICE REQUESTED

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MADISON WI PERMIT NO. 2506