January 2014 Wisconsin Independent Agent Magazine by Independent Insurance Agents of Wisconsin

wisconsin

INDEPENDENT AGENT JANUARY 2014

2014 BIANNUAL DAY ON THE HILL FEBRUARY 11 & 12 CONCOURSE HOTEL MADISON, WI REGISTER AT IIAW.COM

The things people care about the most are the things they just

can’t afford to lose.

wisconsin

INDEPENDENT AGENT JANUARY 2014 Eric Schwartz, Editor

Open Door Policy Grassroots Political Involvement Produces Results . . . . . . . . 5 Sales Success Hit The Ground Running In 2014 . . . . . . . . . . . . . . . . . . . . . . . . . 7 News From ACT Driving Forward: Commercial Lines Real Time Rating. . . . . . . 8 Commentary From Counsel Big “I” Projects In Store For 2014 . . . . . . . . . . . . . . . . . . . . . . 10 Government Affairs Worker’s Comp Changes May Be On Horizon . . . . . . . . . . . . . 16 Virtual University Does Property Have To Be Replaced Within 180 Days? . . . . 19 Marketing Minute 20 Tools To Build Your Brand . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Errors & Omissions Ask The Right Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

On The Cover…

Join the IIA of Wisconsin for its biannual Day on the Hill on Feb. 11 and 12, 2014, at the Madison Concourse Hotel and state Capitol. The event’s speakers include Gov. Scott Walker, OCI Commissioner Ted Nickel, Sen. Alberta Darling, Rep. John Nygren, Wes Bissett, IIABA Govt. Affairs Senior Counsel, and Misha Lee, IIAW lobbyist. Participants get the rare opportunity to meet with legislators face-to-face to talk about issues that matter to them. Refer to the flyer inserted in this magazine for complete details. Register for the 2014 Day on the Hill at www.iiaw.com. Cover photo: Eric Schwartz

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

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Executive Vice President - Matt Banaszynski 2013-2014 Executive Committee President....................................................... Dave Dunker P.O. Box 443, Brookfield, WI 53008-0443 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

Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704 Jason Bott 330 East Kilbourn Avenue, Milwaukee, WI 53202

West Bend. Insurance your customers buy when they can’t afford anything less.

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 Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Matthew Weimer 100 North Corporate Drive #100, Brookfield, WI 53045 WISCONSIN INDEPENDENT AGENT

Government Affairs .......................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045 Industry Relations ............................................. Tom Sitter P.O. Box 2424, Oshkosh, WI 54903-2424 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

> OUR ADVERTISERS AAA ................................................................ 30 ACUITY Insurance ............................................ 31 Applied Underwriters ........................Back Cover Badger Mutual ................................................ 26 Burns & Wilcox ................................................. 6 Capital Remediation ........................................ 21 Cyber Liability Program ..................................18 Erickson-Larsen ............................................. 24 Guard Insurance ............................................. 29 IIAW Continuing Education ...............................11 Insurance Associates of America ................... 22 JM Wilson ....................................................... 28 Northern Underwriting Managers ................... 17 Pekin Insurance.............................................. 26 Robertson Ryan.............................................. 27 SECURA Insurance ........................................... 12 SFM Insurance ................................................. 14 Swiss Re E&O .................................................. 25 The IMT Group .................................................10 West Bend ........................................................ 2 Western National Insurance ............................. 4 Wilson Mutual .................................................. 15 JANUARY 2014 | 3

OPEN DOOR POLICY

GRASSROOTS POLITICAL INVOLVEMENT PRODUCES RESULTS

Your life can change in a moment and so can your business. None of us are immune from government regulation and legislation.

What if I told you that lawmakers had decided to introduce legislation that requires property and casualty companies to spend at least 95 percent of premium dollars on claims. The loss ratio requirements would be similar to what Obamacare imposed on health insurance companies. Imagine what might happen to the role of the insurance agent. Would that be enough to get you engaged in the political process? Well, thankfully this legislation hasn’t been introduced yet! But you never know what some idiotic politician might come up with next. Supporting the IIAW Conduit (our political giving fund) and attending the Day on the Hill will help the government affairs team prevent damaging legislation from being introduced and, if need be, kill bad policy once it is introduced. It’s important for our Association and its members to get more involved in the government affairs process. Your participation can be as simple as attending the Day on the Hill in Madison on February 11 and 12. Few people get the chance to meet with legislators face-to-face. Most people just complain into their coffee cups or vent to co-workers about the latest injustice coming out the state Capitol. You can change this. I have worked in the Capitol and know that politicians listen to their constituents. It’s how they ascend from nascent newcomers to powerful incumbents. Look at attending the Day on the Hill as an opportunity to protect your investment, your job and your agency. I strongly encourage you and your colleagues to make

On Dec. 12, 2013, Gov. Scott Walker signed Assembly Bill 373, Electronic Delivery for Insurers, into law. Standing behind Gov. Walker are: Theresa Elliott; Andy Franken; Rep. Chad Weininger;

Skip Hansen, IIAW Government Affairs Committee Chairman; Monica Groves; Matt Banaszynski, IIAW Executive VP; Kevin Jenkins; Rob Kovach; Ron Von Haden; and Rep. Mary Czaja.

when Gov. Scott Walker signed Assembly Bill 373, Electronic Delivery for Insurers, into law. This would not have been possible without the testimony of Skip Hansen, the chairman of the IIAW’s Government Affairs Committee. Skip provided invaluable testimony to both the Senate and Assembly insurance committees. They listened and the law was passed. We owe a big debt of gratitude to Skip and Rep. Chad Weininger and Sen. Frank Lasee, who championed this bill on behalf of the insurance industry. In a nutshell, the new law allows Wisconsin

customers in a technology-reliant world. The law also includes safeguards to ensure that consumers’ personal data is protected and secure. There is a flyer included in this magazine that provides the details of the Day on the Hill but I will highlight some of the agenda here. Governor Scott Walker is confirmed for the event as are several other political heavyweights, including OCI head Ted Nickel, and Joint Finance Committee co-chairs Reps. John Nygren and Alberta Darling. Misha Lee, the IIAW’s lobbyist, and IIABA Government Affairs Senior Counsel, Wes Bissett, will give state and federal updates. This is one event you won’t want to miss. Visit www.IIAW. > Matt Banaszynski is the Executive Vice com to view the President of the program brochure Independent Insurance and to register Agents of Wisconsin. to attend this Contact him at matt@ iiaw.com. important event.

I strongly encourage you and your colleagues to attend the 2014 Day on the Hill. Let’s show Wisconsin legislators the power of our industry’s grassroots network.

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

the trip to Madison. Let’s show Wisconsin legislators the power of our industry’s grassroots network. This type of effort produces results. The latest success happened on December 12, WISCONSIN INDEPENDENT AGENT

health, life, and property and casualty insurers to offer the choice of electronic delivery of notices or documents to consumers, rather than only by paper, allowing them to better serve their

JANUARY 2014 | 5

SALES SUCCESS

HIT THE GROUND RUNNING IN 2014 Is this finally going to be the year? Will 2014 be the year that you finally step up, stand out, and live up to what you know you can do, to what you’ve been telling yourself for years that you’ll show the world one day? Enough of “next year”; it’s time to make this year “next year.”

To do that, you’ll have to hit the beginning of 2014 like a freight train. Here’s how.

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TIP 1: Use end-of-month, end-of-year sales tactics now. Are there certain things you do to get business when you need it? If so, use those now. You can offer special discounts, have sales, you can also call your best customers and ask them to invest now. Whatever it is that you do to scare up business when you need it, this is the time to use those techniques now. The overall idea here is to develop a sense of urgency to get as much business in as fast as possible so that you can build some powerful momentum and get way out ahead. Ideally you’re looking for the equivalent of three months of business in January. Another key here is once you’re way out ahead of the pack and feeling great, don’t fall into your comfort zone and take your foot off the accelerator. If you do, you’ll lose momentum, slip back, and next thing you know you’ll be back to 90% of quota at the end of March. Don’t back off. Keep going. Pedal to the metal. TIP 2: Double your activity. If you usually make 50 prospecting calls in a day, make 100. If you usually make five presentations, make ten. If you double your prospecting calls and presentations, you should double your sales. Is that potentially going to take more time and resources? Yes, but do it anyway. Follow Tip 4 below and manage your time better. Get those non-productive activities off your plate or table other things for off-hours or even the weekends. Look, what activities pay you the most? You need to find creative ways to find more time to spend on those. WISCONSIN INDEPENDENT AGENT

TIP 3: Go to extremes. Doubling your activity and using end-ofyear and other tactics may sound extreme, but what I’m talking about here is really pushing yourself. I’m talking about a marathonprospecting day in which you make four to five times the number of calls you’d usually make, or a day in which you make four or five times as many presentation calls. These may be days when you dedicate the whole day to one sales activity and you start your day earlier and end it later. Another form of extreme activity is to

coin, what can you do to make the reward so great that you simply have to get the year off to a great start? Think carrot and stick here. Can you post-date a check for $1,000 or $10,000 or more, and if you don’t do what you say you’re going to do, someone gets to cash it, or it otherwise disappears forever? Can you make your dream vacation to Hawaii a reality if you make it happen? Maybe you can do both. The point is, if there is enough on the line, if you have a strong enough reason(s) to make it happen, you’ll make it happen. It simply comes down to knowing what your hot buttons are and then pushing

Remember, you can do, be, and have anything you want, but it takes hard work and sacrifice to achieve these goals.

make a BIG call every day. This refers to finally making that call that you’ve been thinking about forever and you just can’t get yourself to make it. TIP 4: Get better at selling and time management. This one is pretty selfexplanatory. Obviously, the better you are at selling, the better qualified your prospects will be and the better and more effective you’ll be at all aspects of the sales process. This also means that less time will be required to make the same amount of sales. That said, you still need to get better at focusing on your key activities like prospecting, presenting, closing, and client relationship building. Read, take courses, and study sales and time management. Also, find people who are great at time management and sales (these may not be the same people by the way) and find out what they do. TIP 5: Up the ante. What can you do to really put some pressure on yourself to make it happen? On the other side of the

enough of them so that you’re crazed with enthusiasm and drive to make it happen. Remember, you can do, be, and have anything you want, but it takes hard work and sacrifice to achieve these goals. The only questions are: Are you willing to put in the time, effort, energy and money that’s > For John Chapin’s free necessary? newsletter go to www. Are you completeselling.com. With over 24 years of willing to sales experience, he give up the is a number one sales excuses and rep in three industries, other crutches and author of the sales book of the year, Sales and pay the Encyclopedia. Contact price to get it John at johnchapin@ done? completeselling.com.

JANUARY 2014 | 7

NEWS FROM ACT

DRIVING FORWARD: COMMERCIAL LINES REAL TIME RATING So where are we today with commercial lines Real Time rating? It’s an ever-evolving system but it’s very usable now. It promises to add significant efficiencies to our distribution system and to help agencies and carriers that implement it to position themselves as modern, efficient businesses. Let’s Take A Drive Let’s look at Real Time like we’re traveling down the interstate. The type of road and the route you take between agent and carrier destinations may vary. You may use a bridge or take the superhighway (where a rate is returned directly to you). You may make a quick stop on the way. That’s OK; it’s how we move forward.

with the bridged data, providing one continuous workflow. By imbedding the agent credentials it eliminates the need for the agent to sign-on to the website. In the recent 2013 Real Time/Download Campaign Agency Survey, agents said the second biggest priority was to reduce the number of quotes that error out. The primary reason errors can occur are from either passing values that are not valid in the carrier system or having missing data that stops the entire quote from bridging. Here are some examples as to how carriers have resolved transaction errors: > If a limit or deductible is not an available value for that carrier, they do not error the bridge but instead based on rules default to the next highest value and provide a message back to the agent describing what has changed, or blank the value to be completed at the website. > If required data is missing, a carrier can dynamically evaluate the data, and either display a page to the agent to collect or change the critical pieces of data, or they can default the missing data based on defined business rules.

The one thing that is constant is that this is real; implementations continue to evolve and agents are getting value. We are seeing success across the board from BOP and Package, Commercial Auto, Workers’ Compensation, and other commercial monolines. The amount of data that is being moved in a Real Time quote is tremendous, including large schedules. Whether an agent starts in their management system and uses TransactNOW or Transformation Station, or an MGA or broker who has implemented ACORD standards passes policy data to their carriers, these roads are ready for travel.

What Agents May Find Along The Way On the road, agents may encounter bridges or superhighways. > Real Time Quote Bridge (also known as ‘rating bridge’, ‘bridging’, ‘real time upload’) With a Bridge the agency can ‘bridge’ the data for a quote from the client file in their agency system to the carrier, eliminating the need to rekey data in to one or many carrier websites. The agent then typically completes the quote at the carrier site. This is not a website sign-on from the agency system; this is bridging the extensive amount of data that would otherwise be keyed manually. Carriers can respond with a link in HTML that automatically launches the agent user to the website and drops them in the quote

8 | JANUARY 2014

That’s the quick stop along the highway. Behind the scenes the additional data that was collected is added to the agent quote request. Defaults are applied based on rules to bump or roll other data before submitting the rating request. Quotes are then returned within seconds, including an accurate rate and PDF quote proposal. The agent doesn’t need to move to the carrier website, an accurate quote is returned, and errors are minimized. If the data submitted surpasses the bounds of the business rules, we bridge what we can, which still saves the agent duplicate entry inside the website. What is important from the carrier’s perspective is they are still maintaining rules in one place, which also benefits the agency from an accuracy perspective. The implementations that are emerging are not just for single location or vehicle risks. For example, Millers Mutual Real Time rating includes larger habitational risks with as many as 50 locations and hundreds of buildings.

3. Agents: Easier to go to website. Really? Granted workflow changes can present challenges. (Have you ever bought a new car where the gas cap switched sides? I bet you were able to still figure out how to fill up the tank.) Hitting a button on your system and saving hundreds if not thousands of keystrokes – using the system you already have put a significant investment into – has got to be easier than duplicating your entry of data into one or many carrier systems.

What Can Agents Do? Agents, here are some key ways you can help shape your future and move the industry forward: !""Use commercial lines bridging and rating for those carriers that are providing it. !""Give feedback to your carriers on what works and what doesn’t.

AN AGENT’S VIEWPOINT According to Laura Bankos Kury, VP of Collens-Wagner Agency, Inc., “I find the approach that Millers Mutual has taken to be most efficient for my agency. Using my agency system and Transformation Station to quote, I get a BOP rate back without rekeying data or ever going to the website.”

Why Are Different Routes Necessary? Just as agents are independent and use different systems to run their business, so do carriers. And just as each agency has different system capabilities, the carriers have different rating system requirements and capabilities. As a result, carriers may plan their trips differently. That does not change the destination. What it does is provide a road map for progress and efficiency gains along the way.

!""Tell carriers you need this functionality. !""Embrace the next improvement or new development. !""Thank senior carrier executives when they provide you with timesaving Real Time functionality.

What Can Carriers Do? Carriers, here are some key ways you can help shape your future and move the industry forward: !""Get out your roadmap.

How Can Agents Switch Into Overdrive?

!""Understand your options.

The goal is to get the data that exists bridged, and the rest of the rating rules can happen in the website.

This leads in to some of the feedback from agents in the 2013 Real Time/Download Campaign Agency Survey.

!""If you haven’t begun, plan your trip.

SAVE KEYSTROKES !"An agent was able to pull the data for a 621-vehicle fleet from his agency system and send it directly to the carrier system. Not rekeying translated to a savings of 62,500 keystrokes.

Agents that are using Real Time clearly saw the value, citing the top three benefits as:

!""Understand your internal capabilities and what is available externally to assist you.

! Saves many keystrokes

!""Talk to industry resources to help.

!"One company estimates agents experience a 98% keystroke savings by bridging commercial lines quotes versus starting in the website.

! Significant time saver

!""Get started. Begin with one line.

! Easy to use

!""If you have implemented, talk to your agents, get feedback, and enhance existing implementations.

> Real Time Rating (the Superhighway) For true rating, every piece of rating data needs to either be available from the agency system or needs to be defaulted or retrieved from other sources. Carrier systems need to be capable of processing the data in real time to return a rate and quote proposal. The goal is to stay out of the carrier’s proprietary system. In reality though, this ideal scenario across commercial lines is rare. This doesn’t mean we have hit a dead end. There are successful implementations emerging that are using technology that is available to provide the same result – a rate and quote proposal back without the need to go to the carrier website. It may require a quick stop along the highway, but it paves the way for change. Here’s a snapshot of what some of these look like. Some carriers are streamlining the agent process by creating procedures that review in real time each quote and compare it against business rules. With the technology available today, by interrogating the ACORD XML data we can dynamically present a screen to the agent to gather only the missing information for a specific quote that requires agent input. The benefit to this approach is that the agent is only answering what is necessary, and the company is not maintaining rules in multiple places. Carriers are keeping the data input to a minimum, and they default values wherever feasible. WISCONSIN INDEPENDENT AGENT

These are great benefits that should have the industry excited to move forward. So why can’t we get more agents out of first gear? In the same survey, agents that were not using commercial lines Real Time were asked to cite the top three reasons why. Here are their responses and some of my thoughts. 1. Agents: No consistent Real Time comparative rater for commercial lines. I agree they are not prevalent for commercial lines, as they are for personal lines, but I don’t know why that should stop an agent from using Real Time rating. You are still quoting today and you are rekeying commercial lines data that exists in your agency management system to get a quote. Wouldn’t you rather use the data in your system than rekey the same data into multiple websites? 2. Agents: Too few carriers. We should shout out to the world about the carriers that do provide this functionality. Why not use what is available and realize significant savings now? Don’t wait for the road system to be 100% complete; that won’t happen. More use means more roads will be built.

WISCONSIN INDEPENDENT AGENT

!""Get creative! !""Plan your next trip.

Don’t Wait For Perfection Travel the roads that are available. Build more roads and improve them. Much like the U.S. Interstate system, commercial lines Real Time rating will continue to evolve, but it is essential for the future of the independent agent distribution system to have agents and carriers get on the road and start that drive today. We need both the engineers to design it and the drivers to use it to understand its full capabilities. Now is the time to pave the road for our future. As Lily Tomlin said: “The road to success is always under construction.”

Thad Bauer is president and co-founder of NxTech, Inc., a firm that helps carriers, MGAs and brokers implement Real Time and Download, using ACORD Standards, to exchange data electronically with their agent partners. Thad authored this article for ACT and can be reached at tbauer@nxtechcorp.com. This article reflects the views of the author and should not be construed as an official statement by ACT.

JANUARY 2014 | 9

! !

COMMENTARY FROM COUNSEL

Big “I” Projects In Store For 2014

Among the advantages of membership in any trade association are member benefits. Some associations offer more than others, and their nature and value varies dramatically by industry (and by quality of the association). The Independent Insurance Agents of Wisconsin provides substantial and impressive member benefits across a variety of areas, not the least of which is the development of resources for legal compliance, best practices and operational success. Many of these benefits are developed by the Association in conjunction with my firm and represent substantial investments of resources. As the year comes to an end, I thought a very short column with a preview of some of the issues we are working on with the IIAW would be useful and perhaps whet your appetite for 2014. First, an agency guide to perpetuation and succession planning is about to roll off the

electronic presses. It will be detailed and highlight numerous important considerations related to orderly succession, as well as sudden transfers of ownership and management, each of which present their own challenges, yet can be managed effectively when a plan is in place. Agency sale and family succession, as well as tax considerations, will be addressed. Next, recent publicity and articles from around the country have raised questions about socalled “horizontal exhaustion” of insurance coverage — that is, scenarios with multiple policies on a risk at the same level and when the next layer of excess or umbrella coverage can be reached. Some of these scenarios can present E&O risk to agents, so we are developing a resource on this issue as a member benefit.

An agency guide to perpetuation and succession planning is about to roll off the electronic presses. It will be detailed and highlight numerous important considerations related to orderly succession.

Of course, with the hot mess that is the Affordable Care

Act, you can also expect periodic updates and resources on managing its twists and turns. And, issues are percolating to the top on workers’ compensation in Wisconsin that you will want to watch out for. Put this all together in a midterm election year, and 2014 is shaping up to be very interesting. If there are issues or concerns your agency would like to see addressed by the IIAW, one of the best ways to raise them is to bring them to the IIAW Legal Services Hotline. While most questions or issues are familiar, emerging trends in compliance and operations can be escalated quickly to the level of providing a broader member resource as appropriate. Thanks again to all of you and the IIAW for another terrific year — Happy New Year!

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

INDEPENDENT INSURANCE A GENTS OF W ISCONSIN

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:>C!?>C$!@A:>C?+5@>A!+A/!5>!C$B@I5$C!:>C!5J$I$!#2+II$IL!=2$+I$!B>!5>!@@+MN#>?! 5>!C$#$@D$!"EF!>::!+AG!"EH8!@A!=$CI>A!#>A5@A<@AB!$/<#+5@>A!#2+II!$A5$C!=C>?>!#>/$1!5J+AKI!! 10 | JANUARY 2014

WISCONSIN INDEPENDENT AGENT

PROTECT YOUR AGENCY AND YOUR CLIENTS

Cyber security continues to be on the minds of business leaders of both large and small companies. Consumers are constantly made aware of the problem via high profile news stories. In the last month, more than 2 million passwords were compromised from major websites like Facebook, Twitter, LinkedIn, Yahoo and others as a result of a keylogger virus that infected computers worldwide.

Let’s make sure they can spend time tending their roots.

Strong, steady growth since 1900 Commercial • Personal • Farm-Ag • Specialty 12 | JANUARY 2014

WISCONSIN INDEPENDENT AGENT

Large retailer Target suffered a breach that could Safeguards Rule, which is a part of the Gramm your IT infrastructure, policies and procedures affect up to 40 million credit card holders in the Leach Bliley (GLBA) Act passed in 1999. reduces the remaining exposure significantly. United States. Think of the reputation damage Typically, when a breach happens, the FTC Cyber liability insurance products are available alone that a breach like this could cause. enters into a consent order with the breached to offset the balance of the risk. So what does this mean to you as an agent? As company; failure to comply with the terms With this in mind, the IIAW has developed an agency owner? of the consent order can cost that company a Cyber Security Program in conjunction with First, it’s critical to be sure you are doing $10,000 per day per violation. Data Risk Consultants, LLC, and NAS Insurance all you can to protect the Personally Six out of ten small businesses are out of Services to bring a complete solution to your Identifiable Information (PII) and Private business within six months of a data security agency. The three components of the Cyber Health Information (PHI) associated with your breach. You could lose your agency if you are Security Program include: clients and prospects. A “data breach” is defined InteProIQ™. This training, as the intentional or compliance management and risk unintentional release assessment suite is designed for the of secure information agency to use as the foundation to an untrustworthy for the WISP. Employees that environment. You are liable accomplish the training are awarded if your system is breached 3 CE credits from the State of even if the hostile party Wisconsin toward their annual does not use the exposed license requirements. information. According to the AutoShun®. This is a specialized Ponemon Institute, the packet filter that removes any costs to your agency can communication to or from your be as much as $249 per agency to over 3,000,000 known record (or even more) in hostile IP addresses worldwide, your database to carry out updated in real time, with no necessary actions such intervention on behalf of your staff. Recently, the retailer Target experienced a huge data breach that compromised the private as notifying your clients, information of millions of customers. Don’t be a target for cyber criminals. Protect yourself and placing them on free credit NetGuard Plus from NAS insurance your clients with the proper tools. reporting, conducting a Services. This is a specialized policy forensic IT review to determine the cause and not prepared and following the law. specifically designed for agencies. The policy extent of the breach, public relations and legal There are also varying state laws that can is Lloyds A: XV (A.M. Best Co.) underwritten fees, and repairs to your systems (Ponemon, be enforced, and there are significant civil on behalf of Lloyds by NAS Insurance Services. 2010). exposures as well. Coverages of up to $1,000,000 are bound automatically online after a simple application. Discounts of up to 20% of the premium are Six out of ten small businesses are out of business within six months of a available when the other portions of the IIAW program are purchased and implemented. data security breach. You could lose your agency if you are not prepared. Portions of this program, including InteProIQ™ and AutoShun® can be sold by Data security enforcement resides with the Second, your business customers have similar agents to their clients to accompany a variety of Federal Trade Commission (FTC). The FTC exposures and risks and need your help to offset cyber liability products. mandates that insurance agencies (and many them. In your role as a trusted advisor to your The biggest risk to other businesses) have a Written Information clients, you can help your clients understand the you as an independent Security Program (WISP) that includes the important ways they can prepare for a breach agent and your clients following: both from a legal and financial perspective. is ignorance. Take action now. For more !"Staff member in charge of the program Solutions information on the Fortunately, there are some easy things that program, please visit the !"Written policies and procedures an agency can do, as well as a client, to reduce IIAW website at www. this ever-increasing risk. The good news is that iiaw.com. For questions > John Bristol is the 60% of data breaches are due to employee error. !"Employee training about the program, Managing Director of While this may not seem to be a good statistic, call John Bristol at Sales & Marketing of Data it helps to know that training employees on !"Periodic risk assessment 612.328.6511, or send Risk Consultants. Find proper security techniques can vastly reduce this an e-mail to jbristol@ them on the Web at www. exposure. Accomplishing periodic assessment of datariskconsultants.com. datariskconsultants.com. These items are spelled out in the FTC’s WISCONSIN INDEPENDENT AGENT

JANUARY 2014 | 13

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CONTINUING EDUCATION IN MADISON

Pictured here are some of the more than 60 students who attended When The Impossible Happens, a continuing education session sponsored by the IIA of Wisconsin and Gates Auto Body. On Dec. 10, Gabrielle O’Brien led this ethics

SFM–The Work Comp Experts

class at the Clarion Suites at the Alliant Energy Center in Madison. For more upcoming online and in person continuing education classes, please go to page 11 in this magazine or www.iiaw.com.

Providing superior injury prevention, claims management and cost control services

sfmic.com 14 | JANUARY 2014

WISCONSIN INDEPENDENT AGENT

JANUARY 2014 | 15

GOVERNMENT AFFAIRS

WORKER’S COMP CHANGES MAY BE ON THE HORIZON

Every two years since 1909, the Wisconsin Worker’s Compensation Advisory Council (WCAC) has sent recommendations on Chapter 102 law changes to the legislature with little fanfare. Its purpose is to provide a vehicle for labor and management to play a direct role in recommending changes in worker’s compensation law to the legislature. The council is reflective of key players within the worker’s compensation system.

Its membership is comprised of five voting representatives from organized labor, five voting management representatives, three non-voting representatives from the insurance industry, one representative from the state Department of Workforce Development (DWD), and several liaison representatives from the medical community. The council spends months deliberating and negotiating proposed changes for an “Agreed Bill” that is presented to the legislature for consideration and approval. The legislature has a strong tradition of not meddling with the council’s recommendations. In fact for years, the legislature has respected this process and accepted the council’s recommendations by passing them into law without making any amendments. This mutual understanding is not without a purpose. The longstanding tradition between the legislature and the council is critically important to maintaining stability and continuity in our state’s worker’s compensation system. The result is that Wisconsin has one of the best worker’s compensation programs in the nation that combines reasonable benefits with an efficient delivery system at an affordable and stable cost. And unlike other states, Wisconsin’s worker’s compensation issues have historically avoided the legislative roller coaster, which has prevented dramatic policy shifts in the law. One of the key enduring values of the

16 | JANUARY 2014

council is maintaining the overall stability of the system, which has mutually benefited workers and employers.

claims costs are rapidly outpacing those in other states. Data from the Wisconsin Compensation Rating Bureau (WCRB) tells us that the maximum allowance for medical costs in Wisconsin are nearly double what they are in neighboring states and the median amount paid by worker’s compensation is nearly five times the Medicare reimbursement rate for the 25 most common medical procedures. Despite the strong objections from the medical provider community, it should come as no surprise that the council voted to back a market-based fee schedule in the Agreed Bill as a way to try and curb rampant medical inflation in the system. This, combined with many of the other provisions in the Agreed Bill, will help secure Wisconsin’s well-oiled worker’s compensation system.

This background is important to understand as the Agreed Bill heads to the legislature. A hundred years of tradition could change with powerful health care provider groups representing hospitals, chiropractors, physicians, and physical therapists that have voiced strong objections to some of the recommendations. One of the more significant provisions of the plan is to link healthcare rates in worker’s compensation to a market-driven fee schedule. The basis for this proposal is a sincere attempt on the part of the council to address one of the fastest growing cost drivers in the system – rising health care costs. Because there are no limitations today on what health care providers can charge for treating injured workers, the result is an unbalanced system where medical

This year, the Agreed Bill is unlikely to be approved as usual. The legislature will begin formally reviewing and holding committee hearings on the WCAC recommendations in early 2014. The Agreed Bill must be approved by the legislature before they adjourn on March 2014 before the council’s recommendations can become law. This issue will be front and center > Misha Lee is Owner/ when we visit our Founder of Lee Government Relations, legislators at the LLC and lobbyist IIAW Day on the for IIAW. Follow Lee Hill on February Government Relations 12. on Twitter @mishavlee. WISCONSIN INDEPENDENT AGENT

Trusted Choice )&EBJ&CB:N=>B&L9:&QBQWB:C&9L&DIB&(EHB;BEHBED&(ECA:FE>B&)MBEDC&9L&X=C>9EC=EY& ®

VIRTUAL UNIVERSITY

Independent Insurance Agents of Wisconsin

DOES PROPERTY HAVE TO BE REPLACED WITHIN 180 DAYS?

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Recently our Ask an Expert service received two questions dealing with the “requirement” that property be replaced within 180 days under the ISO Homeowners program. This issue comes up quite often and this provision is sometimes misinterpreted. Below is one of the questions we received and our response.

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As always, make sure that this isn’t a proprietary company form since some do require replacement be completed within 180 days...at least I’m told that’s the case. In the 1991 ISO HO 00 03 04 91 form, there is nothing that says the insured must physically replace the property within 180 days, just “make claim” for replacement cost. Here are the policy excerpts:

(4) We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. Once actual repair or replacement is complete, we will settle the loss according to the provisions of b.(1) and b.(2) above. (5) You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss or damage to buildings on an actual cash value basis. You may then make claim within 180 days after loss for any additional liability according to the provisions of this Condition 3. Loss Settlement.

As you can see, the policy says it will only pay ACV unless the repairs are actually made...then it’ll pay replacement cost. Nothing in this clause puts a time limit on completion. The company does not have to pay replacement cost until after the property has been physically repaired or replaced, but paragraph (5) doesn’t say that repair/replacement must be COMPLETED within 180 days...it just says the insured essentially has to make up his/her mind and “make claim” within 180 days. I don’t know how it could be much clearer...if completion of all work is to be done within 180 days, then it could have just said that.

This clause is entirely at the insured’s discretion. The purpose is to allow the insured to be paid ACV up front, then get the difference between that and replacement cost later. The insured might elect to collect ACV in lieu of replacement cost if he/she doesn’t intend to make repairs. This situation came up recently in an “Ask an Expert” question where the homeowner Note: You can get replacement cost coverage if you “notify did not intend to replace the us of your intent to do so” in 180 days. According to ISO’s property, but rather move to a filing memorandum, this was a “no change” in coverage, retirement home.

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Trusted Choice

This question concerns loss settlement under the ISO HO 00 03 04 91 form. The property is located in Minnesota. Specifically, the insured suffered a loss to siding on the house on July 7. The company paid the loss on November 21, but held back depreciation until replacement is completed. The insured plans to replace but, since it is winter now, is unable to do so for several months. Now the company refuses to pay for depreciation because the insured did not replace within 180 days. Is that correct?

I’ve seen other non-ISO forms that DO require completion of repairs/ replacement within 180 days. For example, one policy said that the company “will not pay more than the actual cash value of the damaged building structure until the repair or replacement is completed.” As you can see, that wording is different than the ISO form. VU faculty member David Thompson points out that ISO’s HO2000 and HO2011 programs make it even clearer that replacement doesn’t have to be completed in 180 days. Specifically, the 2000 and 2011 HO 00 03 forms say:

e. You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss to buildings on an actual cash value basis. You may then make claim for any additional liability according to the provisions of this Condition C. Loss Settlement, provided you notify us of your intent to do so within 180 days after the date of loss.

meaning that the intent was the same in the 1991 edition.

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

> Bill Wilson is director of the Virtual University.

JANUARY 2014 | 19

MARKETING MINUTE

20 TOOLS TO BUILD YOUR BRAND Trashing branding has reached star status as critics dismiss it as passé in a digital environment. Who wants the “behind the times” label? It’s interesting that those throwing the rocks at branding come prepared with a ready replacement they want to sell us.

If customers aren’t learning from you, they’re vulnerable to competitor attack. Focus on emerging trends, dangers ahead, product use, reducing costs, and solving problems.

competitor does it or it “sounds good” doesn’t mean it’s right for your company. Without adequate preparation or serious research, many companies jump into eCommerce, launch new products, make acquisitions, or expand, only to fail. 12. Admit mistakes fast. Too many businesses are living in the past when coverups were possible. Not so now –– there’s always a trail that leads to your door. Don’t hope for the best; expect the worst and clear the air quickly. 13. Control enthusiasm. Enthusiasm is essential, but it can also dull cognitive skills, obscure roadblocks, and blind us to unnecessary risks that can lead to unwelcome outcomes. 14. Build a case for receiving industry and civic awards. Valid recognition is more than blowing your own horn; it helps in shaping how customers, employees and the public perceive a company. 15. Disallow excuses. Whether it’s letting yourself, your work group, or your company off the hook by making excuses, customers,

Because branding is how people experience a company and its products, don’t fall for the idea that it’s obsolete. Just remember that no company goes to greater pains to protect its brand’s integrity than Apple, now the number one brand in the world, according to the 2013 Interbrand survey. “Every so often, a company changes our lives, not just with its products, but with its ethos,” noted Interbrand CEO Jez Frampton in the company’s report. “This is why…Interbrand has a new No. 1 — Apple.” No task is more critical for companies (including insurance companies and agencies), organizations and individuals than brand building. The following are 23 tools that can enhance a brand by giving it continuous care and protection. They may not all apply to your business but they do provide an interesting guide. 1. Give everyone hospitality training. This is the place to start since most employees don’t know how best to interact with customers. Hospitality training is mandatory for all employees of Portland, Oregon’s Umpqua Bank and it has paid off as demonstrated by the bank’s stellar performance.

20 | JANUARY 2014

2. Align with a charity. Create a long-term relationship with a charity that shares your values and makes it possible to leverage your company’s resources –– knowledge, skills, talent as well as monetary contributions. 3. Make marketing your mission. Business is all about attracting customers who want to do business with you, a mission requiring a plan that’s implemented consistently. 4. Give customers what they want. That’s what T-Mobile’s “Un-carrier” rebranding is all about, starting with dumping contracts, followed by the Jump! early upgrade program and then the signing of Shakira. The payoff has been huge with more than one million new customers, increased revenues and positive changes in public perception. 5. Respond quickly to a crisis. There’s no pause button; just ask Ford Motors. It refused to recall 421,000 2012 Escapes when stuck gas pedals caused accidents until the company was forced into doing it, causing reputation damage and falling Escape sales. Be ready because even a slight delay in responding to a crisis can be costly. 6. Research ruthlessly. Mistakes hurt and some can be fatal, so challenge your ideas,

options and opportunities with research and testing to avoid falling into embarrassing and costly debacles.

shareholders and the public get the message: you can’t be counted on. 16. Be crisis conscious. Asking the question “What would happen if…?” is the most important component in making decisions. Failing to ask it is entertaining the possibility of making costly mistakes. 17. Segment your customer base. Heard it before? Of course, but only a small percentage of companies actually segment their customer database so they can tailor their marketing message to specific groups, and devote their efforts to those who produce the most revenue. 18. Be responsive. “They always get back to me quickly.” Because they create a lasting impression, these are the most important words anyone can hear. Like nothing else, they send the message that you care. How fast? Now –– one hour or less. And there are no exceptions. 19. Educate customers. If customers aren’t learning from you, they’re vulnerable to competitor attack. Focus on emerging trends, dangers ahead, product use, reducing costs,

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> John Graham of GrahamComm is a marketing and sales strategist-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.

“A few months ago, our office had a water damage loss. We turned to Capital Remediation for the cleanup and remediation. They responded to our situation with incredible timeliness, great attention to detail and professional workmanship. They have also greatly expanded their services by providing a ‘Dash’ system to communicate with customers in real-time, keeping them up to speed with the details of their loss and cleanup. I have had a relationship with Josh (owner) for over 10 years and they simply continue to impress. I highly recommend Capital Remediation for their cleaning and remediation services.” Neckerman Insurance Services Randy Krantz, Vice President

Call Deborah Mann, Commercial Consultant U 608.417.0611 6330 Copps Ave., Suite C, Monona, WI 53716 UÊÊcapitalremediation.com Delivering Total Project Accountability

11. Make studied moves. Just because a

WISCONSIN INDEPENDENT AGENT

Brand building is a tough job and one that never ends. As difficult as it is to create a solid brand, it can be easily damaged or even destroyed. It needs constant care. And, above all, it deserves tireless protection. It may never appear on a balance sheet as an asset, but its value is immeasurable.

Client Catastrophe: WATER

8. Understand your customers. Many say they know their customers and don’t need any help. They’re kidding themselves about other things, too. It takes a combination of having the right data and having the smarts to figure out what it means.

10. Avoid erraticism. This prevalent disease eats away at business success by constantly jumping from one non-solution to the next, baffling and confusing both customers and employees.

20. Think creatively. Nothing is worse than trying to eat when driving for fear of making a mess on our clothes. KFC solved the problem with its five-compartment Go Cups that fit in a cup holder and a menu of finger food.

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7. Articulate your mission. Forget about puffy-fluffy (and meaningless mission statements). The famed industrial designer Niels Diffrient, who blended the technical and the aesthetic, had one goal: “Why would you design something if it didn’t improve the human condition?” What an idea!

9. Picture customers correctly. Take a page from Target and Dunkin’ Donuts, companies that view customers as “guests” who deserve to be treated that way.

and solving problems.

WISCONSIN INDEPENDENT AGENT

JANUARY 2014 | 21

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

Joan Ravanelli Miller Named Vice President ACUITY has promoted Joan Ravanelli Miller to General Counsel and Vice President - Human Resources.

Company Surpasses 100,000 Commercial Lines Policy Mark ACUITY has passed the 100,000 milestone for commercial lines policies written, an all-time record for the insurer.

Joan served as House Counsel at ACUITY from September 1989 to January 1994, when she was promoted to General Counsel/Governmental Affairs. She served in that capacity until June 1995, when she left ACUITY to pursue her master’s degree and Ph.D. She has spent the past eight years at the Marquette University Counseling Center, where she was a psychologist and training coordinator.

“In 2003, ACUITY insured 50,000 businesses,” said Ben Salzmann, ACUITY President and CEO. “To double that amount a decade later is a remarkable achievement and a credit to the effort and commitment of our employees and independent agents.” Reaching the 100,000-policy milestone continues ACUITY’s strong momentum not only in commercial lines, but companywide. Recently, ACUITY surpassed $3 billion in assets (GAAP), following the company’s topping the $1 billion revenue mark earlier this year. ACUITY has averaged a double-digit companywide 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. “Our growth demonstrates that we are trusted by an everincreasing number of individuals, families, and businesses for their insurance protection,” Salzmann said. “As we grow, we also can hire more people, and the people who are already on our staff find more opportunities for growth and advancement.”

FROM THE ARCHIVES

In November, Joan rejoined ACUITY to serve as General Counsel. Prior to her initial tenure at ACUITY, she was a partner in the law firm Nash, Spindler, Dean & Grimstad in Manitowoc, Wisconsin. Joan earned several degrees from Marquette University, including a bachelor’s degree in history, J.D. (Doctor of Jurisprudence) in law, a master’s degree in clinical psychology, and a Ph.D. in clinical psychology. For more information about ACUITY, please visit www.acuity.com.

The IMT Group Announces New Vice President and Assistant Secretary The IMT Group is excited to announce that the board of directors has elected Ann West to serve as Vice President of Information Systems. This promotion went into effect January 1, 2014. With over 30 years of experience in the insurance industry, Ann started her career with IMT Insurance Company in 1983. She began as a programmer and has served in a variety of positions within the IS Department since then, including serving as the Director of Information Systems for the past seven years.

In addition, the board of directors has elected Brad Buchanan to serve as Assistant Secretary effective January 1, 2014. Brad has nearly 25 years of experience in the insurance industry, working in the accounting, reinsurance, marketing, and personal lines The Midwest’s Premier Cluster Group departments. He * 100% Retained Ownership served as IMT’s * Increased Markets-Over 30 Represented Vice President of * Knowledgeable Support Staff Personal Lines for Commercial Assistance - Placement the past 11 years. * Increased and More Stable Contingencies

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This composite portrait of David G. Farragut, William T. Sherman, George H. Thomas, Pres. Abraham Lincoln, George G. Meade, Ulysses S. Grant, Joseph Hooker, Philip H. Sheridan, and Winfield S. Hancock was originally used as advertising by the Travelers Insurance

For more information about The IMT Group, please visit www.imtins.com.

WISCONSIN INDEPENDENT AGENT

Company and issued as a reproduction in 1961 to commemorate the centennial of the Civil War. It is one of the first known examples of the composite photo process and of the use of photography in advertising. Photo credit: Wisconsin Historical Society

JANUARY 2014 | 23

NEED PROPERTY INSURANCE COVERAGE? WIP IS AN OPTION Agents throughout the state are experiencing an increased number of company nonrenewals on home and property policies due to maintenance issues and claims frequency. What may be a consequence of the economic downturn of 2008, evidence of deferred maintenance is increasingly apparent. Missing or worn shingles, porches and stairs that lack substantial railings, peeling paint and maintenance-related claims are leading to more non-renewals and rejections in voluntary markets. There’s a solution for many — if not most of your policyholders — with property insurance coverage issues and it’s been around since 1968. The Wisconsin Insurance Plan (WIP) can provide a temporary solution while your client is marshaling resources to improve the condition of their property. The intent of the WIP is to provide basic property coverage for those who are unable to find coverage in the voluntary market. The WIP is not a part of state government; it is an unincorporated, not-for-profit entity mandated by Wisconsin Administrative Code. Coverage under the WIP program is Actual Cash Value only, and restricted to named perils. However, a WIP policy will satisfy

mortgagee insurance requirements and is a far better option for your client than going without insurance or allowing a mortgagee to institute forced-place coverage. The WIP’s homeowner program will provide a $100,000 limit of liability coverage, while the WIP dwelling and commercial programs are basic property coverage only. A rejection from another insurer is required to be attached to each new business application. Agents unfamiliar with WIP should also be aware that under Wisconsin Administrative Code INS 4.10, they are required to help individuals apply to the program for coverage if voluntary market options have been exhausted. Commissions are paid to agents at the rate of ten percent on new business and renewals. Applications for WIP are available online at www.wisinsplan.com, along with contact information, a premium indication rating page and other details. In addition to the website, WIP Manager Stephanie Crouse and her staff are available to discuss individual cases and answer general questions. Let WIP help you maintain your book of business when property insurance problems arise. Everyone benefits!

The WIP is not a part of state government; it is an unincorporated, not-forprofit entity mandated by Wisconsin Administrative Code.

> Anne Landre is the executive director of the Community Insurance Information Center (CIIC) in Milwaukee, WI. The CIIC is an industrysponsored education and community outreach program, providing help for consumers and nonprofit agencies throughout southeastern Wisconsin.

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Member Testimonials

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24 | JANUARY 2014

WISCONSIN INDEPENDENT AGENT

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MARKETING TIP: 6 WAYS TO BE A BETTER TEAM PLAYER

ERRORS & OMISSIONS

ASK THE RIGHT QUESTIONS

Caliper — the Big “I” provider of employee assessments and organizational performance tools — recently published a blog post that highlighted six basic interpersonal skills that can be effective in any organization.

Nobel laureate Naguib Mahfouz once observed that, “You can tell whether a man is clever by his answers. You can tell whether a man is wise by his questions.” Mahfouz would make an excellent insurance agent. In an age that attaches great value to the ubiquitous, standardized FAQ, the wise insurance professional never forgets that if you want the right answers, you have to ask the right questions. Consider this scenario: Widget Co. has been in the widget business for 125 years, but is in the market for a new broker to handle its insurance. The company’s CEO, Mr. Widget, has seen and liked your agency’s billboard (“At Expert Insurance, we’ll take care of all your insurance needs!”), and schedules a meeting at your office.

!""Be approachable. Make an effort to follow the golden rule of treating others the way you would like to be treated. !""Be responsive. Don’t ignore requests in hopes that they’ll go away. !""Improve your communication skills. Make a conscious effort to really listen, rather than simply planning a response to what’s being said. !""Establish and maintain trust. Build positive relationships through open and honest communication. !""Share what you know. Combining the knowledge, expertise and efforts of a variety of people makes the team much stronger.

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AUTO • HOME • BUSINESS • LIFE • HEALTH 26 | JANUARY 2014

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Several months later, Widget Co. suffers a fire at both warehouses — the old and the new. The buildings are a total loss, as is the stock inside. The claims adjuster at the scene delivers bad news: the stock coverage is limited to $100,000. Plus, the policy’s coinsurance clause will likely come into play given the $500,000 limit on the structure, which, by her estimation, will cost $2.5 million to rebuild. And what of the new warehouse next door (just the other side of State Line Road) that sustained damage as well? Not covered at all. Nor, it seems, are the injured, non-resident employees working in that out-of-state facility.

You followed your instructions to the letter, but your duty to the customer may have gone beyond simply filling an order. Given your boast that “We’ll take care of all your insurance needs,” Widget may assert that you created a “special relationship” as a result of which you owe a “professional standard of care”: to inquire and advise insureds about available coverage(s) and examine the policy to be sure it meets the insured’s needs.

The customer indicated that he was looking into acquiring another warehouse, but you never asked the follow-up question: Did you buy it? If you had, you might have ()*234!,-#%./+!0++1234!5)-0+,6!#-!;#%/=!$#%!/20+!)99+66!,#!5)3$!5#-+!5)-0+,67! Without knowing what a noticed that the second warehouse and its ,@+!)36;+-!26!A#.+-,6#3!A$)3 widget is and despite not When you ask Mr. Widget how much stock workers were located in another state. getting a word in edgewise, was on hand, he recites from memory, BC!$#%!)6!#;3+-!;)3,!,#!61+3=!/+66!>5+!#3!)=52326,-)>#3!.%,!9#3>3%+!,#!#;3!,@+! you get the business in five “$250,000 — in preparation for the It is exceedingly common to meet .##0<!,@+!)36;+-!26!A#.+-,6#3!A$)3 minutes. Based on his years of holidays, of course.” When you nervously customers who think that because they BC!$#%!)6!#;3+-!;)3,!,#!6+//!$#%-!)4+39$<!,@+!)36;+-!26!A#.+-,6#3!A$)3 experience in the industry, inquire how long the building has had are experts in their own fields, they are BC!$#%!;)3,!5#-+!9#3626,+39$!23!+)-32346<!239/%=234!1-#?,!6@)-234<!,@+!)36;+-!26! Mr. Widget confidently $500,000 in coverage because there may experts in yours, as well. Be patient with tells you what type of be a problem with the policy’s coinsurance this customer, but never forget: he may be A#.+-,6#3!A$)3 coverage he wants, what clause, he confidently tells you, “Since “smart,” but you still need to be wise. Ask limits he needs, and where 1976, when I took over as CEO.” He then the right questions. his business is located. “Business pauses, wrinkles his brow and asks, “What’s is booming!” he proclaims, heading out the a coinsurance clause?” > Matt Davis is assistant vice president, claims and ! liabilities, with Swiss Re Corporate Solutions and door. “We’re even looking at acquiring the handles claims against insurance professionals. warehouse next D#!?3=!#%,!5#-+!,#=)$<!9)//!E)-$!F%-,#3<!G@2+C!H1+-)>34!HI9+-<!),!JKJLMMKLNOPQ door!” You did exactly as you were told, but your E&O carrier tells you the agency may face a You promptly submit an application based six-figure exposure on the facts of this case. on information gathered during your What went wrong?

!""Put the team first. Reframe “what’s in it for me” to “what’s in it for the team”?

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conversation and obtain a quote that you pass on by e-mail. He accepts by reply e-mail a short while later and you place coverage the same day, exactly as ordered.

WISCONSIN INDEPENDENT AGENT

ROBERTSON RYAN & ASSOCIATES, INC. JANUARY 2014 | 27

TEENS: TWITTER “MOST IMPORTANT” SOCIAL NETWORK; FACEBOOK ON DECLINE Social media usage is maturing, and as more networks emerge and gain popularity, advertisers and marketers are constantly on the lookout for the “next big thing.” One of the most common ways marketers identify up-and-coming social networks is by looking to a highly social demographic — and one that is highly digital-savvy: teens.

however, are not much different among Facebook users 18 to 29 — less than one-quarter used Facebook more often last year, and about one-third decreased usage.

A September 2013 study from Piper Jaffray suggests that the social network landscape is shifting. The firm queried 8,650 U.S. teens with an average age of 16.2 years, and found that for the first time, social network users in this age group said that Twitter was the “most important” social network to them.

Whatever the “next big thing” may be, it’s important for marketers not to lose sight of what will continue to be the “big(gest) thing.” Among teen Internet users, Facebook is still by far the leader in terms of social media penetration. According to eMarketer, the percentage of Internet users ages 12 to 17 (and 18 to 24) using Facebook will remain flat from now until 2017, and during that period, the percentage of Internet users in these age groups using Twitter will increase steadily. However, in 2017, 95% of internet users ages 12 to 24 will still be using Facebook, while at that time, only about one-quarter of internet users ages 12 to 17 and less than 35% of internet users ages 18 to 24 will be using Twitter.

Twitter’s ascension is notable because it supplanted Facebook, but similarly notable is that Twitter actually lost ground year over year. Conversely, both Instagram and the “other”category increased more than 10 percentage points year over year — and the percentage of teens that found other social networks most important increased from 4% in spring 2013 to 17% for the September survey. In other words, these results say less about Facebook vs. Twitter than they do about curious teens seeking new, potentially exciting social circles in which their parents are not present.

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There’s no mistaking that Facebook usage is declining among teens. According to RBC Capital Markets, 41% of Facebook users ages 16 to 18 spent less time on the site in the previous year, and 35% said they expected to use it less in the upcoming year. These trends,

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WISCONSIN INDEPENDENT AGENT

FOOD FOR THOUGHT SOCIAL MEDIA: IT’S NOT JUST FOR KIDS In 2013, social media’s growth was spurred by a surprising demographic – older users. On Twitter the 55-64 year age bracket is the fastest growing demographic with 79% growth rate since 2012. The fastest growing demographic on Facebook’s and Google+’s networks are the 45 to 54-year age bracket at 46% and 56% respectively. Source: globalwebindex.net

AMERICA ONLINE…MOSTLY Internet use has more or less flatlined in recent years, according to data from the Pew Internet and American Life Project. As of the center’s last survey in May, somewhere between 81 and 85 percent of U.S. adults were online. The number with home Internet access is significantly lower — roughly 72 percent, according to the Census Bureau. That means there are tens of millions of people not online.

WE SHOT FOR THE STARS AND LOOK WHAT WE HIT

Why don’t people have home Internet access? The Department of Commerce found, intriguingly, that half of offline households simply don’t want Internet — they either feel they don’t need it, they can use it elsewhere, or it infringes on their privacy. For the remaining non-users, the big factor is cost. Statistically, however, most people are wrong when they say they don’t need the Internet. Per the Commerce Department, Internet use has a measurable impact on employment, income, consumer welfare and civic engagement. So closing the digital divide would not only benefit individuals on the wrong side of it, but also the economic and civic society as a whole. Source: washingtonpost.com

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