June 2013 IIAW Magazine by Independent Insurance Agents of Wisconsin

JUNE 2013

wisconsin

Your customers deserve a

Silver Lining.

INDEPENDENT AGENT JUNE 2013 Eric Schwartz, Editor

Open Door Policy Convention Thank Yous & A Look Ahead To The Future . . . . 5 Member Profile The Scobie Group: Third Generation Managing General Agency Has The Pen. . . 6 Government Affairs Insurance Legislation On The Fast Track. . . . . . . . . . . . . . . . . . 8 News From ACT Marketing To The Connected Generation. . . . . . . . . . . . . . . . . . 12 Commentary From Counsel Fee For Agent Services… Approach Confidently But With Caution. . . . . . . . . . . . . . . . . . 17 114th Annual Convention Recap & Award Winners. . . . . . . 18 Marketing Minute Making Selling Easier: Ideas For Combating Complacency. . 22 Errors & Omissions I’ll See You In Court. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 When something happens to your customer’s home, car, or business, it may not be a disaster. But no matter what it is, your customers always deserve fast and fair service from their insurance company. West Bend provides a Silver Lining, no matter what the claim may be. When the scoreboard at the Panther’s little league field was struck by lightning, it was important to get it fixed in time for the championship game. So that’s just what we did. Sometimes little things mean a lot. And every day, when something bad happens to someone, West Bend makes sure our customers experience the Silver Lining. Because the worst brings out our best.®

Independent Insurance Agents of Wisconsin 725 John Nolen Drive, Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 ■ Fax: (608) 256-0170 ■ Web: www.iiaw.com Executive Vice President - Matt Banaszynski

On The Cover…

With the 114th annual convention in the books as a success, it’s important to acknowledge the companies that make the convention and many of the Association’s events possible through the year. Our exclusive company sponsors are: AAA, ACUITY, Anthem, Capitol, The Hanover, The IMT Group, Integrity, Progressive, QBE, SECURA, SFM, Society, Travelers, West Bend and Wilson. We thank them for their continued support of the IIA of Wisconsin and the independent insurance agency system.

> OUR ADVERTISERS AAA................................................................. 26

2012-2013 Executive Committee

2012-2013 Committee Chairs

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

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

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

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

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

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

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

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

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

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

2012-2013 Board of Directors

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

The IMT Group................................................. 25

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

Integrity Insurance........................................... 7

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

InVest............................................................... 14

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

Partners Mutual.............................................. 25

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

Pekin Insurance............................................... 23

Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704 Jason Bott 330 East Kilbourn Avenue Milwaukee, WI 53202 Thomas Holter P.O. Box 938, Beloit, WI 53512-0938 Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583 Bruce Kommers P.O. Box 66, Antigo, WI 54409-0066

ACUITY Insurance............................................ 27 AmTrust North America..................................... 9 Badger Mutual................................................. 25 Burns & Wilcox.................................................10 EMC Insurance.............................................15, 21 IIAW Continuing Education............................... 16

Robertson Ryan.............................................. 20

Jeff Rasmussen 525 Junction Road, Madison, WI 53717

Sales & Leadership Conference..........Back Cover

Cap Wallrich P.O. Box 90, Shawano, WI 54166-0090

West Bend......................................................... 2

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

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

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

Wilson Mutual.................................................. 24

WISCONSIN INDEPENDENT AGENT

JUNE 2013 | 3

OPEN DOOR POLICY

CONVENTION THANK YOUS

& A LOOK AHEAD TO FUTURE EVENTS

As the great hockey player Wayne Gretzky once said, “You miss 100 percent of the shots you don’t take.” And this year we are taking a lot of shots with the hope that some of them will go in the net. First off, thank you to everyone who attended, spoke and exhibited at our Winning In Wisconsin convention — you made this year’s event a big success. We changed the format with a one-day exhibit hall, added more continuing education classes, arranged a visit from Bucky Badger and replaced live music with a deejay during the opening night party’s casino night. The casino night proved to be a winner as many people commented that they could talk to the people at the gaming tables and still enjoy the music in the background. This year we were proud to announce our new partnership with Trusted Choice and Make-A-Wish. Novalie, our rock star wish kid, came to the awards breakfast to tell us about her wish. I’m sure there were no dry eyes in the room. Look for details about her rock star debut in an upcoming Spotlight, our e-mail newsletter. We hope you enjoyed the convention changes. Please share your comments with us so we can continue to improve our biggest event of the year. Our next event, the newly revamped Sales and Leadership Conference (formerly the Midwest Young Agents Conference) is right around the corner, June 26-28 at the Kalahari Resort. We heard from our Young Agents Committee that they wanted an WISCONSIN INDEPENDENT AGENT

opportunity to grow their careers and the agencies and companies where they work. We listened and are providing two distinct tracks at the

While we are going to miss once a while, we are right on the money with our government affairs efforts. Don’t miss our legislative update by our Association lobbyist, Misha Lee. Misha has kept me extremely busy working on your behalf in the Capitol. Together we have made major strides on issues that we believe are important to your business and customers. Things are on track for passage of our navigator legislation, as well as our electronic proof of insurance and storm scammer bills. And did I mention that Wisconsin is one of the national leaders in the IIABA’s InVest program? We are once again being recognized by the IIABA as the state to watch for not only this program but also our Swiss Re E&O marketing and our Trusted Choice Make-A-Wish campaign. All in all, I would say that we are up a few goals this period.

conference: one for agency owners and the other for producers and sales leaders. This new conference is designed to mentor the agency leaders of tomorrow. We hope you will consider attending this new conference with your sales staff. It will be worth the time out of the office. Also, in this month’s magazine you will find our 2013-14 membership application. However, I strongly encourage you to renew your membership online through our Website. You can update your employee database, pay with your credit card or by check, and complete your company profile that can be found by customers searching for an independent agent. By using our Website to renew, you can put away the typewriters and save time and the hassle of printing and mailing your dues. I think this shot sailed past the goalie and into the back of the net.

 The IIA of Wisconsin has adopted many new changes over the past year. One of those changes was a great new partnership with Trusted Choice and Make-A-Wish. Novalie (pictured here), our wish kid, spoke at the annual awards breakfast about her wish and what it meant to her. In the near future, Novalie will record and perform a song that she wrote with her Dad. She will also star in a music video.

That being said, we have surely missed a few shots and I encourage you to let us know how we can improve and be the answer to whatever keeps you up at night…as long as it relates to growing your business. As always we are here for you with open ears and open minds.

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

JUNE 2013 | 5

By Eric Schwartz

MEMBER PROFILE

THE SCOBIE GROUP: THIRD

GENERATION MANAGING GENERAL AGENCY HAS THE PEN

Robert (R.W.) Scobie started his standard lines general agency in 1932. Bob Jr. came on board in 1936, and worked in the Agency for 67 years until his death in 2003. Gene Giles (R. W.’s son-in-law) worked for over 25 years in the business. R.W. worked at the agency and helped build it into one of the Midwest’s top managing general agencies (MGA). Obviously, after more than 80 years in business, changes occurred along the way.

“Until 1970, the agency acted like a branch of an insurance company,” said Peter Scobie, Bob Jr.’s son and current chairman and CEO of the Scobie Group. “Staff would attend branch office meetings and essentially operate as a branch office. In the early days, Scobie Group worked with Western Insurance Companies and Indiana Lumbermens doing business in Minnesota and Wisconsin.” In 1970, the agency broke into specialty and excess and surplus lines under the name of Midwest General Scobie’s Agency. Three Generations “With certain of Success companies, we have the pen,” R.W. Scobie is a true family said Peter, who business. Robert W. Scobie became CEO founded the company in 1932. in 1984. “That Peter Scobie, Robert’s son means we became president in 1978 and have the right CEO in 1984. After his father to determine passed away in 2003, Peter rates and coverages, and became chairman. The current we perform all president of R.W. Scobie is Rob underwriting Giles, Peter’s first cousin. Rob’s duties.” daughter, Colleen Giles-Harris is Also, like an Scobie’s director of centralized insurer, Scobie office services. Gene Giles, can appoint Colleen’s grandfather, was the VP independent agents in of underwriting for many years. a specific area and settle claims with some companies. To date, Scobie has 2,700 agents in the field

6 | JUNE 2013

“E-mail has worked well,” said Peter. “Agents can read the highlighted captions (of the coverage) and file it away.” Scobie’s Website is also a good resource for coverages and descriptions. The Scobie’s Group’s home office at 3300 Birch Street in The Website’s Eau Claire. The company has been in business since 1932. Agent Center allows an agent to process a certificate online, find underwriter covering five states. The agency employs contact information, billing/commission over 100 professionals in its home office and detail, download policy, certificate history branches. and much more. Agents can also access The company also offers a diverse menu of monthly account statements. coverages that include professional liability, Of course, to go along with the great environmental, garage, vacant buildings and products, great service is a must. The farm. This is by no means a comprehensive company established a service standard that list; Scobie has personal and commercial 80 percent of all phone calls and e-mails get products for practically anything a person or returned within an hour and 100 percent get business would need. They even offer niche returned within two hours. Further, policies products. must be issued within seven business days A unique product Scobie sells is workers’ after all the needed information is received. compensation for long haul truckers. “It’s It’s the whole package, the service and the very difficult to find,” said Peter. “That type products, that make independent agents the of work is hard on the body but we found best choice for consumers. an ‘A’ rated carrier for the coverage.” “Direct writers are a challenge but On the benefits side, the Eau Claireindependent agents offer many choices of based MGA formed a joint venture with companies and products,” said Peter. “Plus, Employers Benefit Group to offer health, insureds get more of an opportunity to meet life, disability, dental and vision coverage, with their independent agents in person along with executive benefits, retirement rather than online or on the phone. Combat programs. Independent agents now have the direct writers by being knowledgeable employee benefits companies within reach. of all your products and get active in your A wide range of products fit into Scobie’s community. These are good ways to surpass mission to provide markets for independent the competition.” agents that they might not normally have The Scobie Group’s corporate home is located access to. at 3300 Birch Street in Eau Claire. They have “An agent can tailor the coverage to branches in Tempe, Arizona, Minneapolis, almost any circumstance,” said Peter. Minnesota, New Albany, Indiana, West To get the word out, Scobie employs a Des Moines, Iowa, Omaha, Nebraska, and director of business development with an Waukesha, Wisconsin. The Scobie Group is a assistant, and six marketing representatives supporting member of the IIA of Wisconsin. Find to call on agents. The agency also uses them on the Web at www.rwscobie.com, or call e-mail marketing to showcase their products. them at (800) 472-6919. WISCONSIN INDEPENDENT AGENT

We make things easy for you. So you can make things easy for them. For more about how Integrity can help you help your customers contact: Cathy Beaudin at 920-968-8326 or cbeaudin@imico.com integrityinsurance.com

GOVERNMENT AFFAIRS

INSURANCE LEGISLATION ON THE FAST TRACK

For those of you who have read the IIAW e-mails and legislative alerts, you can see that we are having a very productive spring on a number of key industry issues. In the coming months, we will be reaching out to you to help reinforce our efforts by contacting your state legislators and the governor’s office on these and other key industry issues. ELECTRONIC PROOF OF INSURANCE Senate Bill 62 (SB 62) passed both houses of the Legislature last month with unanimous bipartisan support. Wisconsin law mandates motorists carry auto liability insurance. This bill enables consumers the option to show proof of motor vehicle liability insurance on a mobile electronic device such as a cellular phone. The bill now goes to the governor’s desk for his signature. The IIAW would especially like to thank Sen. Frank Lasee (R-De Pere) and Rep. Mary Czaja (R-Tomahawk) for authoring this legislation. A big Thank You to IIAW member Derek Wickhem of the John Wickhem Agency, who took time away from the office to travel to Madison and testify in support of the bill.

STORM SCAMMER PREVENTION Assembly Bill 81 (AB 81) unanimously passed the State Assembly on a bipartisan vote. The bill, otherwise known as the Storm Scammer Bill, would protect homeowners from unscrupulous contractors who aggressively seek to lure them into signing costly repair contracts after a major storm. AB 81 is expected to move quickly through the Senate and then to the governor’s desk for his signature sometime in June. The IIAW would like to thank Sen. Luther Olsen (R-Ripon) and Rep. Scott Krug (R-Wisconsin Rapids) for authoring this legislation. A big Thank You to IIAW members Tom Sitter of Richards Insurance and Derek Wickhem of the John Wickhem Insurance Agency, for spending a day at the Capitol testifying in support of this important piece of legislation. Tom’s testimony was especially pertinent as he shared his field experiences about his customers who have been defrauded by these practices.

LICENSING OF EXCHANGE NAVIGATORS

> Misha Lee is Owner/ Founder of Lee Government Relations, LLC and lobbyist for IIAW. Follow Lee Government Relations on Twitter @mishavlee.

8 | JUNE 2013

Motion #246 passed the Joint Committee on Finance by a vote of 11-5. After more than a year of deliberations, meetings with key stakeholders, and some last minute negotiations, I am

proud to report that the IIAW successfully led the industry effort to include language in the 2013-15 State Budget bill that would license and regulate “Navigators.” As many of you know, the federal Affordable Care Act requires that a health insurance exchange be fully operational in every state by October 1, 2013. These Navigators will be working directly Rep. Kevin Petersen (3rd from left) is the Assembly Insurance Committee chairman. He is one with consumers of the insurance industry’s strongest allies in the Capitol. Standing with Rep. Petersen at last discussing their various year’s Day on the Hill: Dave Dunker, Zingen & Braun Insurance; Mike Hierl, Hierl Insurance; health insurance Rep. Kevin Petersen; Skip Hansen, Diversified Insurance Solutions; Linda Steiner, Johnson options offered in the Insurance Services; and Mike Froh, Burkart-Heisdorf Insurance. Exchange. a License Navigators to ensure that the state Based on your feedback, the IIAW made has some regulatory control; this issue one of our top government affairs priorities. We set out early on in the year a Hold Navigators financially responsible for working closely with Rep. John Nygren their actions that harm consumers; (R-Marinette), the powerful co-chair of the Joint Finance Committee, to make the case to other a Require entities serving in other roles state policy makers that Navigators should be like Certified Application Counselors meet subject to state regulatory oversight with certain appropriate education requirements similar to standards and licensing requirements. The Navigators; IIAW wanted to ensure a level playing field for our member agents, as well as establish some basic consumer protections for individuals a Register all the individuals and entities enrolling in the Exchange. The IIAW presented serving to help the Exchange enroll individuals; navigator licensing draft language for legislative consideration. a Confirm that entities that hire Navigators I am pleased to report that the 16-member and application counselors (or others serving Joint Committee on Finance passed our in a similar role) are held responsible for the Navigator proposal as an amendment to actions that harm consumers; the governor’s state budget bill. Prior to the amendment’s passage, the IIAW worked closely a Apply these standards uniformly. This is vital with the governor’s office, Rep. Nygren, Sen. to ensure consumers are getting accurate and Alberta Darling (R-River Hills), and the Office consistent information, and are protected. of the Commissioner of Insurance. All of them were instrumental in gaining support for Most notably, this measure places Wisconsin our recommendations. This successful effort one step closer to enacting the strongest will help ensure that the state of Wisconsin Navigator law in the nation and will serve has proper authority to oversee and license as a model for other states. The Navigator navigators operating in the health Exchange. amendment not only seeks to provide state protections for our citizens, but will also help The Navigator amendment will: preserve the fundamental role of the health a Ensure that Navigators meet appropriate insurance agent who will continue to advise and standards through education requirements; sell health insurance to consumers both inside and outside the Exchange. WISCONSIN INDEPENDENT AGENT

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Your Success is Our Policy.®

FOUR SALES TRUTHS TO SET YOU FREE If you’re going to be successful in sales over the long haul, there are four concepts you need to fully accept and buy into. With little fanfare, here are the four concepts: 1) It’s not about chasing the sale. Almost everything you chase runs away. It’s recently been proven that even great white sharks will swim in the other direction if you swim at them and most prospects are far more timid than your average shark. Instead chasing sales, work on building connections and relationships. Your objective here is to make it all about the other person. And by the way, there is no new relationship selling; it has always been about relationships. The best salespeople, the ones who have had successful careers over the long haul, have not burnt out, and have led happy, fulfilling lives both personally and professionally, have always focused on doing what’s right for the other person.

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

That said, are there some sale-chasers out there who have experienced some success? Yes, but it usually comes at the expense of other areas such as their character, reputation and personal life. I’m also guessing they aren’t people you like or admire on a personal level. So, in order to have a long, happy and successful sales career, take care of people and relationships. Instead of having to chase sales, the sales will chase you. 2) You have to be completely accountable. You need to have several levels of accountability in place to ensure you do what you need to do to be successful. The most important is being accountable to yourself. That said, even the strongest and most selfdisciplined among us will allow ourselves to falter from time to time, so it’s important to have a second or even third layer of accountability.

HEALTHCARE PROFESSIONALS AND ORGANIZATIONS

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WISCONSIN INDEPENDENT AGENT

Your second level consists of people you work with and other professionals. This group could include: managers and bosses, coaches and mentors, mastermind groups, and, in some cases, may even include your peers. The third level of accountability includes friends, family and other acquaintances.

> For access to John Chapin’s free monthly newsletter, go to www. completeselling.com. John is an award-winning sales speaker, trainer and coach. He is a number one sales rep in three industries and author of the gold-medal winning “Sales Encyclopedia.”

Ultimately though, the buck stops with you. Even with other people checking on you, it’s possible to cut corners, lie and otherwise fudge things in your favor. You’ve got to push yourself and be willing to do whatever it takes to

WISCONSIN INDEPENDENT AGENT

hold your feet to the fire even if that includes devices like trap contracts and large fines. 3) You’ve got to be brutally honest with yourself. You have to see yourself, and your sales career, warts and all. If you don’t have the sales you need, the prospects you need, and the overall Getting organized results you want, and in control of it’s probably your fault. Own it and your time begins do something about with goals and a it. This doesn’t mean that you beat plan. Decide what yourself up to the your business goals point where you are for the year and can’t do your job. At the same time, then break them you need to get down to monthly, enough leverage on yourself that you weekly and daily push yourself to activities. get the job done every day. There’s a happy medium and balance here, but I find that most people are not as tough on themselves as they need to be. Most people will skirt responsibility and point the finger elsewhere when it comes to reasons for their failure. Accept responsibility, grab the bull by the horns and get to work. Success or failure is completely up to you. 4) You have to get organized and get control of your time. Getting organized and in control of your time begins with goals and a plan. Decide what your business goals are for the year and then break them down to monthly, weekly and daily activities. Organize, clean up and set up your work area, files, computer, calendar and other tools, and then get to work. This doesn’t have to be complicated but it does take hard work and self-discipline to stick to your plan and do what must be done every day. When you’re at work, work. And when you’re working, make sure it’s on the items that will give you the most return on your time, effort and energy. You should be working on the 20% of items that give you 80% of your results; all other items should be delegated or eliminated. In sales, most of your time should be spent prospecting, closing or otherwise chasing business. Continue to improve your organization and time management until you are spending 80-90% (or more) of your time in these three key areas and then put checks and balances in place to keep yourself at that level.

JUNE 2013 | 11

NEWS FROM ACT

MARKETING TO THE CONNECTED GENERATION:

How independent insurance agencies build relationships, deliver value and generate new business revenue through content, e-mail and social media marketing Our world has changed. The independent agent and broker faces unprecedented competition. Our competitors are at our borders – gaining market share in auto insurance – by spray-painting the walls of our fair town with their message of insurance commoditization and online sales without the benefit of an insurance advisor. They sell on price, on ease of business and on speed of business, using marketing tactics and slogans that often do not give consumers the full picture of the risks they face and the coverage options they could be buying to fully protect themselves. Unfortunately, these methods work. Independent insurance agents will often admit that they are less than adequate marketers. Many lack an understanding of marketing and even question its value. Certainly, we hate spending money on marketing. Therein lies the rub. If we, as an industry, have any intention of fighting back against those who would undermine our message of value, it is imperative to change the way we market our business. Connected consumers – belonging to multiple generations – are rapidly becoming prime prospects for us. Sales and marketing techniques once thought to be the crux of growing an independent agency have become stale. Not only has the new consumer culture diminished the return on our bread and butter tools such as cold calling, but we’re in the

If we, as an industry, have any intention of fighting back against those who would undermine our message of value, it is imperative to change the way we market our business. 12 | JUNE 2013

Now the clients who call us for a quote are often already “sold” when we pick up the phone. In a recent article published by the Harvard Business Review, Marketing is Dead author Bill Lee makes the case that interruption marketing and advertising as we know it are dead. Interruption marketing (most traditional forms of marketing) is based on the belief that if we separate enough people, enough times from what they are doing and interject our latest discount, a few people will realize they need our product at that moment and purchase.

battle of our lives against direct writers who are often content to sell a “state minimum” auto policy.

Independent Agent as Guide and Mentor The truth is that direct writers have traditionally been the better marketers. Yet, we now have access to social and digital tools that will enable us to change that. The widespread acceptance of “social media” tools has placed the responsibility upon us to amplify our customer centric message of value. Success will manifest, once we begin to embrace the undeniable truth that our value is not as gatekeepers of insurance knowledge and expertise, but rather as guides and mentors for our clients through the insurance buying process and then after the sale is made. This isn’t my first call-to-action. Two years ago I wrote the article, If You Work in Insurance, This is the Only Article You Need Read About the Future of Social Media. The premise was simple: as an industry we need to look at the value we add to the lives of insurance consumers as the primary driver of every decision we make regarding both traditional and social media marketing. And though I am still an advocate for traditional marketing in certain instances, it is social media that provides the greatest promise and opportunity in today’s economy. I know that’s a big task, but the strategy is working for my agency. Here’s a truth about social media marketing that most “gurus” aren’t going to tell you — tactics are easy. It’s the consistently creating value part that’s hard. Give me two days and I can teach you every vital tactic in marketing your business online. Two days and you’ll be a rock star of digital

focused on delivering content with immense value to insurance consumers, that we started to generate legitimate revenue. This effort strengthened our brand message and identity. Our community now understood who we were and what we valued.

marketing, a master of social media. You’ll know every trick, tactic and best practice as if you were born with the knowledge. But if you can’t conceptualize the value you add to the insurance consumers you serve – and effectively convey it to them – you’re certain to fail.

Tell a Story That Demonstrates Your Value For example, you can know everything there is to know about Facebook marketing, but posting the same tired message about the account credit associated with coupling home and auto insurance will never yield a return on investment. Instead, try telling a story about a family you helped apply that discount and how the extra money they saved that year on their insurance paid for their child to go to summer camp.

Effective Digital Marketing Takes Time I know how difficult this is. I’ve been marketing my insurance agency online for three years now. The entire first year I fell victim to the trap of trying to “sell” with every article. Subsequently, I failed a lot. I failed many more times than I was successful. It wasn’t until the third year when I let go of my lust for Return on Investment, and WISCONSIN INDEPENDENT AGENT

For a long time, interruption marketing worked well. Interruption marketing worked so well and was so celebrated that AMC was able to create the hit TV show Mad Men based on the mass marketing era. But our world has changed from the days of Mad Men. Don Draper’s tactics would fail if he targeted today’s Connected Generation.

Marketing to the Connected Generation Today, there is a new generation, different from any generation before, and membership to this generation has nothing to do with age. There are only two generations that matter to your business in today’s digital world: the Connected Generation and the Unconnected Generation. The Connected Generation is defined as consumers who communicate, build relationships and ultimately make buying decisions based on Web 2.0 technology. The Unconnected Generation is everyone else. As independent agents, we’re masters at building relationships and marketing to the Unconnected Generation. We ask for referrals, we attend local chamber events, we cold call, we drop in on businesses, we harass our family, we sponsor charity events, we buy radio spots and we buy ads in the newspaper. These are all classic and effective methods of marketing to the Unconnected Generation. Unfortunately, these methods don’t work (or at minimum are less productive) on the Connected Generation. The Connected WISCONSIN INDEPENDENT AGENT

Generation is less likely to allow friends to give their name as a referral, is completely adverse to a cold call, doesn’t listen to the radio and doesn’t read the newspaper.

the purpose of adding immense value to the personal and professional lives of the community members you serve, revenue generation is the result.

How do we market our business to the Connected Generation? Until recently, most of us have simply pretended the Connected Generation didn’t exist. By choosing not to market our businesses to the Connected Generation, we significantly reduce the size of our potential client pool. We even make excuses that somehow these individuals are predisposed to GEICO or Esurance.

So the question really is, “How do we add immense value?” There was a day when the value we provided to our clients was the expertise we accumulated through experience, mentorship, training and networking with colleagues. Insurance is a complex, yet delicate product, easily confused and contaminated with misconceptions.

Get Engaged with Social & Digital Tools I’d like to advance this proposition instead. Let’s all take a deep breath, overcome our fear of transparency, vulnerability and technology, and then begin to spread our message of value through the social and digitals tools of today’s Connected Generation. Think of it this way: social media is just our current medium for communication. Sixty years ago, we communicated through the United States Postal Service. Forty years ago, it was the telephone. Twenty years ago, it was the fax machine. Ten years ago, we embraced e-mail, and today we use social media. The message of value that attracts clients to us as people, to our agency and to the product we sell, has never changed. Social media, blogging, e-mail marketing and the various other digital methods of communicating are not as scary as they may seem. If you can send an e-mail, you can publish a blog or post to Facebook. Far too often these tools are made out to be more difficult than they truly are. Simply put, if you’re smart enough to understand the exclusions in a homeowners policy, you’re more than capable of creating a value-driven online presence that generates revenue for your agency.

Build Your Community by Communicating Value Every piece of content we create, whether it’s for our blog, social media or e-mail marketing should be created with the intention of building community and ultimately generating revenue. When done correctly, the results are undeniable, as indicated by my YouTube campaign results. If you consistently create content with

It has been our job for over a century, as independent agents, to stand as the gatekeepers of that expertise. If our clients had a question, concern or problem, they needed us to find the solution. Unfortunately, that value proposition no longer exists. We are no longer the gatekeepers of our expertise. The Internet has reversed the flow of value and consumers can now find a lot of information on the Internet. To survive, we must adapt.

Independent Agents More Important than Ever Don’t misconstrue what I’m saying to mean that independent agents are no longer necessary. In fact, independent agents are more necessary than ever in our history. Insurance consumers who choose to travel these roads alone, without the guidance of an independent agent, fall victim to the predators silently waiting to sell cheap policies with inadequate coverage. The critical value we provide insurance consumers is NOT our product knowledge but rather our experience and guidance throughout the buying process and after the sale. Consumers of the Connected Generation want to know everything there is to know about CONTINUED ON PAGE 15

> Ryan Hanley is the director of marketing for The Murray Group Insurance Services, Inc. Ryan urges agents to get over their fear of using social media, because it is not difficult to learn and use, and because it represents a huge opportunity for agencies to employ to level the playing field with the direct writers. Ryan produced this article for ACT and it reflects his views and should not be construed as an official statement of ACT.

JUNE 2013 | 13

MARKETING TO THE CONNECTED GENERATION CONTINUED FROM PAGE 13

a product or service before they purchase. By embracing digital and social media marketing, our agencies will become both the information source and the guide for these connected consumers. This is working for our agency today and we are consistently generating new business revenue from online leads.

Digital Tools Offer the Opportunity to Level the Playing Field Direct writers are the only ones with a voice online. It’s time that we as a group step up to the microphone. Never has there been a time in history when it was so quick, easy and inexpensive to deliver our message to insurance consumers. Social media is a gift. It levels the playing field. With amplifiers like blogs, social media, e-mail marketing and customer relationship management tools such as Infusionsoft, we can take back the airways.

Focus on Your Content So what am I asking you to do? Create content with reckless abandon. Create content that tells your story over and over again, until every single client knows exactly

who you are, why you’re in business and the value you provide. Simon Sinek, the author of Start With Why, said in his now famous TED Talk, The Golden Circle: “People don’t buy what you do, they buy why you do it.” It’s the “Why” of what we do that spreads our message. Our task now is refocusing our effort from“What” (we sell insurance) to “Why” (we believe in a world where accidents shouldn’t ruin lives), because “Why” makes the phone ring. We are no longer the gatekeepers of our expertise. We didn’t choose for this transformation to happen, but it’s happened nonetheless. Now it’s time for all of us, the entire independent agency industry – from the one-person shop to the mega-regional, to the carriers and the vendors we partner with, to the associations and organizations that support us – to tell our story of “Why.”

Success will manifest, once we begin to embrace the undeniable truth that our value is not as gatekeepers of insurance knowledge and expertise, but rather as guides and mentors for our clients through the insurance buying process and then after the sale is made.

Using the communication mediums of today, we can deliver our value-driven marketing message to the Connected Generation and ensure the success of a distribution system we all love so dearly.

Cross-Sell Strategy

KEY-PERSON INSURANCE

“ Key-person insurance is the key to better protection for clients.” Lora Buske, EMC National Life Life Sales Representative

Go beyond property/casualty coverages and protect your clients’ families and employees, too. EMC National Life can help you add key-person insurance to cover one of the biggest risks independent business owners may face. It’s just one of the many reasons policyholders Count on EMC®.

Milwaukee Branch: 800.236.1800

Home Office: Des Moines, IA

WISCONSIN INDEPENDENT AGENT

JUNE 2013 | 15

I NDEPENDENT I NSURANCE A GENTS OF W ISCONSIN

Trusted Choice

COMMENTARY FROM COUNSEL

FEES FOR AGENT SERVICES... APPROACH CONFIDENTLY, BUT WITH CAUTION

UPCOMING CONTINUING EDUCATION

E&O Risk Management: Meeting The Challenge Of Technology Change (6 CE Credits Approved)  Dates: June 12, July 17, August 13, October 1, October 17, and November 14, 2013  Locations: Pewaukee, Appleton, Madison, and Eau Claire  Time: 8:30 AM ‐ 2:30 PM  Insurance Potpourri: Personal & Commercial Lines Coverage  (4 CE Credits Approved)  Date: September 25, October 29, and November 20, 2013   Locations: Madison, Pewaukee, and Appleton  Time: 8:30 AM ‐ 12:30 PM  Ethics In Today’s Changing Times (4 CE Credits Approved)  Date: June 11, August 14, and September 26, 2013   Locations: Eau Claire, Pewaukee, and Appleton  Time: 8:30 AM ‐ 12:30 PM  Sales & Leadership Conference (3 CE Credits Approved)  Date: June 26‐28, 2013  Location: Kalahari Resort in Wisconsin Dells  Time: Reception at Trappers Turn at 6:00 PM  Ethical Standards For The Insurance Professional (4 CE Credits Approved)   Date: August 1, October 31, and November 12, 2013  Locations: Madison and Eau Claire  Time: 8:30 AM ‐ 12:30 PM  (*October 31st session: 12:00 ‐ 4:00 PM)  Healthcare Reform Update (4 CE Credits Filed)   Date: August 7 and August 8, 2013  Locations: Appleton and Waukesha  Time: 8:30 AM ‐ 12:30 PM

F OR M ORE I NFORMATION AND TO R EGISTER F OR T HESE I N P ERSON C LASSES , P LEASE G O T O IIAW.COM!

Agents charging fees for specific services is not a new concept. A departure from a business historically driven by commissions, to be sure, and a practice arguably frowned upon by regulators at times, but it is certainly not a new idea. member benefits you can take advantage of.

The Law and OCI Guidance

INDEED, with the rollout of the

Affordable Care Act (ACA), agents will find more opportunities for fee-based business and, if the ACA stands pat for the long term, agent fees charged to policyholders could largely take the place of commissions in the health insurance industry. The good news is that you have substantial expertise built on years of experience. The bad news is that you may be in competition with essentially free advisors funded by the exchanges. People love to trot out the line about how the Chinese symbol for crisis is a combination of the symbols for danger and opportunity. I dislike that saying because it is a truism and, in my opinion, adds next to nothing to the discussion. As it turns out, there is disagreement that it’s even accurate, which gives me another reason to shun it. But I digress.

If you are accepting compensation from an insured, you must make a disclosure in writing, before the insured incurs any compensation obligation, that explains the amount of compensation agreed upon and, if applicable, that you will also be compensated with commissions. The point is that this new model presents challenges related to client development and retention, pricing, and of course, regulatory compliance. The IIAW is working to provide resources to help agents and agencies transition to fee-based business and this column will briefly examine the legal landscape and identify some upcoming WISCONSIN INDEPENDENT AGENT

When in doubt, check the statutes. The place to start when considering compensation earned as an agent is Section 628.32 of the Wisconsin Statutes, aka the Disclosure Statute: (1) An intermediary may not accept compensation from an insured or from both an insured and another source due to the insured’s purchase of insurance or for advice regarding the insured’s insurance needs or coverage unless the intermediary, before the insured incurs an obligation to pay compensation, clearly and conspicuously and in writing discloses to the insured all of the following: (a) The amount of compensation to be paid by the insured, excluding commissions paid by the insurer to the intermediary. (b) If compensation will be paid by another source, the fact that the intermediary will also receive compensation from the other source. (2) The commissioner may promulgate rules prescribing the form for disclosure under sub. (1). A nice short statute, which boils down to the following: If you are accepting compensation from an insured, you must make a disclosure in writing, before the insured incurs any compensation obligation, that explains the amount of compensation agreed upon and, if applicable, that you will also be compensated with commissions. The next stop after the statutes should be the administrative code, in case there is an applicable rule. Here, notwithstanding the explicit authority to promulgate rules

contained in the statute, there are no administrative rules related to fee disclosures. The commissioner of insurance has spoken, however, in a 2005 bulletin which, in addition to summarizing the statute, encouraged agents to follow industry best practices in their disclosures, such as describing in detail the nature of the compensation arrangement with the carrier(s) involved as well as an explanation of how the insured could request additional information. Over the last several years, it is fair to say there has been a shift away from the notion that fees could only be charged for “extraordinary services,” and toward the acknowledgment that voluntary fees paid for agent services are appropriate when legal disclosure obligations are met.

IIAW Resources The IIAW has been working on a set of forms, to include basic disclosure forms for situations where agents will earn fees plus commissions, as well as pure fee-for-service disclosures where no commission is involved. A sample consulting fee agreement is also being put together with an eye toward adaptability to a variety of business scenarios. Remember, of course, that no one size fits all. The IIAW forms will be a reference point, and a valuable member benefit, but conforming them to your agency’s business needs should be done based on your expertise and with the assistance of experienced legal counsel. In the end, you need to ensure the disclosures and any consulting agreements not only meet legal minimums, but accurately reflect the nature of the business relationship. Keep an eye on the IIAW > Josh Johanningmeier Website and this is the IIAW’s General column for more Counsel. Call the Legal developments on Services Hotline at (877) 236-1669. agent fees.

JUNE 2013 | 17

114TH IIA OF WISCONSIN STATE CONVENTION:

WINNING IN WISCONSIN

The Winning In Wisconsin annual convention was full of continuing education, prize and cash giveaways, and business networking, but it was also a whole lot of fun. THANK YOU to the more than 600 independent agents, industry leaders, instructors, company representatives, and exhibitors who participated and made the 114th annual convention a success. The Madison Marriott West in Middleton hosted the festivities on May 8 and 9.

slate of instructors. The instructors included: Therese Sizer, Patti Gardner, Scott Huiras, Roger Venden, Dirk Nohre, members of the Automation/Technology Committee, Dick Tillmar, and Todd Davis. The Auto/Tech Committee also presented its annual open forum on a variety of topics.

Rusbuldt (President and CEO, Independent Insurance Agents & Brokers of America); Brian Domeck (CFO, Progressive Insurance); and Tim Sheehy (President, Metropolitan Milwaukee Association of Commerce). The executive panel question and answer session is always a big hit and this year was no different.

The exhibit hall featured more than 80 vendors with a wide array of products and services. Traffic was brisk in the hall and the networking opportunities were plentiful. The IMT Group once again sponsored a $1,200 cash giveaway during the exhibit hall.

Association President Mike Froh did a tremendous job during the convention. Mike has been an excellent leader all year and his work during the convention was exemplary. He welcomed attendees to the convention at the View from the Top Executive Panel and then introduced moderator Jeff Thiel. Mike then introduced the panel that included: Sean Kennedy (Executive VP, The IMT Group); Bob

The Winning In Wisconsin opening night party featured a casino night and a visit from Bucky Badger. DJ Matt Carlson provided the music for the evening. A silent auction with donations from the IIAW’s Board of Directors was a new addition this year. Thanks to you, the auction raised $2,500 for the InVest program in Wisconsin. There was also a raffle for other fantastic prizes, including a trip for

This year’s convention featured more continuing education with an experienced

Matt Weimer (left) and Skip Hansen accept the 2013 Government Affairs Agency Leader of the Year award on behalf of Diversified Insurance Solutions.

Rep. Kevin Petersen (R-Waupaca) received the 2013 Legislator of the Year award. Petersen has been a tireless advocate of the insurance industry.

Andy Burkart (left), Sheboygan, accepts the 2013 Agent of the Year award from IIAW President Mike Froh. This is the highest award a member agent can receive. two to Las Vegas. Andy Spaeth won the trip and a signed jersey and photo of Green Bay Packer John Kuhn. Of course, the evening ended with the controlled chaos of the $3,500 cash balloon drop (sponsored by The Hanover). On May 9, the awards breakfast started on an inspirational note with a visit from Novalie, a Make-A-Wish child who wants to be rock star. Novalie attended the convention and kicked off our new charity partnership with Trusted

18 | JUNE 2013

Bob Jartz (right) received a lifetime achievement award for his five decades of service to the Association. Roger Abbott also received a life achievement award for his great contributions to the IIAW.

Cathy Christensen, Fond du Lac, is the 2013 Committee Chair of the Year for her work leading the Automation/Technology Committee.

Mary Morrison received the Agent of the Year award for her 30 years of work for the Association and its members.

Janelle Higgins, Madison, is the recipient of the 2013 Young Agent of the Year award.

Choice and Make-A-Wish Wisconsin. She was presented with a pink feather boa and star glasses. John Bergstrom, chairman and CEO of the Bergstrom Corp., provided the keynote address at the breakfast. His interesting and timely speech focused on the importance of customer service and the philosophy to “treat everyone as a guest.”

Mike Froh presented the Association’s annual awards to the following members: Andy Burkart (Agent of the Year); Janelle Higgins (Young Agent of the Year); Barb Van Herwaarden (Industry Representative of the Year); Tim Bever (Employee Benefits Agent of the Year); Diversified Insurance Solutions (Government Affairs Agency Leader of the Year); and Cathy Christensen (Committee Chair of the Year). CONTINUED ON PAGE 21 WISCONSIN INDEPENDENT AGENT

Barb Van Herwaarden, Sun Prairie, is the 2013 Industry Representative of the Year. Barb is a business development consultant with QBE North America. WISCONSIN INDEPENDENT AGENT

Tim Bever (left), Racine, received the 2013 Employee Benefit Agent of the Year award from IIAW President Mike Froh.

JUNE 2013 | 19

114TH IIA OF WISCONSIN STATE CONVENTION:

WS E N E H T N I S R E B M ME Society Insurance Sponsoring Red Cross Dine For Disaster The sixth annual American Red Cross Dine for Disaster event was held on May 16 and sponsored by Society Insurance for a third consecutive year.

Post Named Regional VP Of QBE QBE recently announced that Jeff Post has been appointed regional vice president for the Midwest Region. Reporting to Jeff are QBE’s branch VPs Scott Cummins (Sun Prairie) and Roger Kaland (Milwaukee), business development manager Jean Nederloe. small business underwriting managers Jennifer Hansen and Traci RiggsLangan, commercial lines processing team leader Nancy Duerst, and Debbie Prince, administrative services supervisor. Jeff has been with QBE for 10 years. During this time he has held several positions of increasing authority within the organization. Most recently, Jeff was branch vice president of QBE’s Minneapolis branch office. Jeff replaces Andy Doll, who has been named chief actuary for QBE North America. Find QBE on the Web at www.group.qbe.com.

ACUITY Health Challenge Anticipates 1,000 Runners Registration is open for the second annual ACUITY Health Challenge which will be held on Saturday, July 20. More than 600 people participated in 2012 and over 1,000 are expected at this year’s event.

Dine for Disaster invites patrons to dine at participating restaurants throughout eastern Wisconsin. Roughly 100 contributing restaurants donated 10 percent of the day’s sales to local disaster relief and community disaster prevention efforts of the American Red Cross. Society Insurance President and CEO Rick Parks said sponsoring the event was a natural fit for the company. “As an insurance company, we share a key part of the Red Cross mission in that both organizations respond to disasters and focus on making people whole again,” Parks said. “We are extremely pleased to be able to support the Red Cross by coordinating with many of our restaurant policyholders and the Wisconsin Restaurant Association.”

The ACUITY Health Challenge begins at 8:00 a.m. at ACUITY’s Corporate Headquarters at 2800 South Taylor Drive, Sheboygan. Those not participating are also welcome to attend, as the event also features the ACUITY Vendor Expo, located at the start/finish line. The early entry fee for the ACUITY Health Challenge is only $20 until June 30. Fees increase to $25 until July 19 and $30 on race day. Register online at active.com. Contact healthchallenge@acuity. com with any questions.

CONTINUED FROM PAGE 18

This year, Mary Morrison, the IIAW’s E&O Administrator, was also presented with an Agent of the Year eagle. It was long overdue recognition for her 30 years of hard work for the Association and its members. For his support of the insurance industry, Rep. Kevin Petersen (R-Waupaca) was presented with the Wisconsin Legislator of the Year award. The award winners are pictured on pages 18 and 19. Roger Abbott, who has served the IIAW in a number of roles over the year, received a lifetime achievement award. Roger is a past president and chairman of the board, and his hilarious reading of door prize winners during the annual business meeting is legendary. Bob Jartz, the IIAW’s executive vice president

for four decades, was also presented with a lifetime achievement award. Bob’s dedication to the Association is unmatched. He ushered in an era of great prosperity for the IIAW which still continues today. After Wisconsin Insurance Commissioner Ted Nickel spoke about the state of the insurance industry, breakfast attendees were asked to look under their chairs for a chance to win a football signed by Green Bay Packer Jordy Nelson. One hundred people walked away with a white panel football. State National Director Linda Steiner swore in the 2013-14 board of directors. The board includes: Mike Walston, Kewaunee; Brian McClone, Oshkosh; Lise Meyer Kobussen, Sauk City; Bruce Kommers, Antigo; Matt Weimer, Brookfield; Tom Holter, Beloit; Jason Bott, Milwaukee; Jeff Rasmussen, Madison;

and Mike Ansay, Port Washington. Mike and Brian succeed Cap Wallrich and Don Williams on the board. We thank Cap, Don and board chair Mike Hierl for their great service to the Association. Mike is exiting the Executive Committee after four years of service. The 2013-14 Executive Committee is: Mike Froh, Chairman of the Board; Dave Dunker, President; John Wickhem, President-elect; Steve Leitch, Secretary-Treasurer; and Linda Steiner, State National Director. We will see you next year once again in Middleton. The 115th annual state convention is scheduled for May 7 and 8, 2014, at the Madison Marriott West. Thank you again to everyone who attended and made this year unforgettable.

For more photos of the casino night, awards breakfast, exhibit hall and the rest of the convention, please go to IIAW’s Facebook page at www.facebook.com/IIAofWI.

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

SECURA Promotes Farm-Ag Leader To Vice President Recently, David Schlichting was promoted from director — farm & agribusiness underwriting to vice president — farm & agribusiness underwriting at SECURA Insurance in Appleton. He brings to his role more than 16 years of insurance industry experience. Since he’s led the company’s farm division, Schlichting has launched an agribusiness product and introduced a new agency rating tool for farm business. He also expanded farm and agribusiness into other states where the company writes home and auto,

The ACUITY Health Challenge offers a 2-mile or 5K run/walk. All funds raised from this year’s event will benefit the Vince Lombardi Cancer Clinic Palliative Care Fund in Sheboygan County. “The ACUITY Health Challenge is a great way to get yourself, your family, and your friends motivated to get moving and support the important care provided by the Vince Lombardi Cancer Clinic,” said Ben Salzmann, ACUITY President and CEO.

WINNING IN WISCONSIN

Acquisition Strategy

“ Sell the value of online loss control services.” Dave Young, Milwaukee Branch Risk Improvement Manager

businesses and nonprofits. “Dave’s farm expertise and strong relationships with agency partners has helped us build solid, profitable business in our farm and agribusiness markets,” said David Gross, SECURA’s Senior Vice President — Underwriting Operations. “In his new role, he will continue to expand Farm-Ag, which represents the foundation of our company’s heritage.” Schlichting began his career with SECURA in 1997 as manager of accounting, and was later promoted to director – premiums receivable and controller. In 2002, he transitioned to management roles in the company’s personal lines before joining the farm division. He earned his bachelor’s degree in business administration and accounting from Roosevelt University in Chicago. He also holds the CPCU insurance designation.

ONLINE LOSS CONTROL

Clients want more value, and one valuable way in which EMC helps clients is providing access to online loss control services. From training programs to safety posters, the materials your clients need to reduce losses are within reach. It’s just one of the many reasons policyholders Count on EMC®.

Milwaukee Branch: 800.236.1800

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

Home Office: Des Moines, IA

Find SECURA on the Web at www.secura.net.

20 | JUNE 2013

WISCONSIN INDEPENDENT AGENT

JUNE 2013 | 21

D2E!+<BF ()*234!,-#%./+!0++1234!5)-0+,6!#-!;#%/=!$#%!/20+!)99+66!,#!5)3$!5#-+!5)-0+,67! ,@+!)36;+-!26!A#.+-,6#3!A$)3 F R O MBC!$#%!)6!#;3+-!;)3,!,#!61+3=!/+66!>5+!#3!)=52326,-)>#3!.%,!9#3>3%+!,#!#;3!,@+! THE ARCHIVES .##0<!,@+!)36;+-!26!A#.+-,6#3!A$)3 BC!$#%!)6!#;3+-!;)3,!,#!6+//!$#%-!)4+39$<!,@+!)36;+-!26!A#.+-,6#3!A$)3 BC!$#%!;)3,!5#-+!9#3626,+39$!23!+)-32346<!239/%=234!1-#?,!6@)-234<!,@+!)36;+-!26! A#.+-,6#3!A$)3 In March 1985, the English Agency, Inc. (of Arcadia), and Arcadia High

MARKETING MINUTE

MAKING SELLING EASIER:

IDEAS FOR COMBATING COMPLACENCY

School announced the creation of the $500 John B. English Scholarship Fund. The scholarship was established by the English Agency and John’s wife, Ramona. In addition to the scholarship, John donated a life insurance policy that established a separate nurses scholarship though the! local hospital. John English served as president of the IIAW during 1971-72.D#!?3=!#%,!5#-+!,#=)$<!9)//!E)-$!F%-,#3<!G@2+C!H1+-)>34!HI9+-<!),!JKJLMMKLNOPQ From left with a painting of John English: Wendell Olson, English Agency; Ramona English; Gerald Holte, principal of Arcadia High School; and Dennis Kirkman, Arcadia district superintendent.

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“It worked once, it worked twice, it worked three times,” reflects the serial killer in Lee Child’s Running Blind. “But you know there are no guarantees in life.

! "#!$#%&! You know that, better than anybody. So you keep on thinking, because the only thing that can get you known is your own complacency.”

On the other hand, customer recall can be quite different. Customers never forget what salespeople didn’t do or how they felt let down, taken advantage of or cheated.

The words may seem strangely philosophical for a crime novel, but no matter who we are, it’s complacency that gets us “known,” that betrays us. For anyone in sales, complacency is a sure-fire career killer. With that in mind, here are some thoughts that can help avoid the consequences of complacency.

By basking in self-congratulation — the worst form of complacency — salespeople deny themselves the golden opportunities for understanding customers more clearly, earning their trust and serving them more effectively.

By basking in .

self-congratulation, salespeople deny themselves the

“My customers love me.” Salespeople find fulfillment in believing that their customers really love them, or at least like them. However, such affectionate thoughts often result from “selective” memory.

golden opportunities for understanding customers more clearly, earning their trust and serving them more effectively.

For example, salespeople seem to possess perfect recall for what they do for their customers. They describe in copious detail instances when they went far beyond a second mile to help customers.

22 | JUNE 2013

“It takes persuasion to get people to buy.” If ever there were a cornerstone principle of sales, it might go something like this: how to turn “no” into “yes.” To be successful in sales, the ability to persuade is a core quality for climbing to the top rung. Unfortunately, there’s a dark side to persuasion. It’s the deep-seated distrust so many customers have for salespeople, who are viewed as capable of using every possible trick to get us to buy what we don’t want or need. Although a heads up shouldn’t be necessary, attempts at persuasion are powerless today, rendered impotent by customers’ unprecedented access to

information. Today, customers need salespeople who are competent diagnosticians, who have developed expertise at identifying what

needs to be fixed and how to go about doing it. “I’m not like other salespeople.” Years ago, people quipped, “I cross the street when I see that insurance guy coming my way.” That’s changed. Now, we delete e-mails, ignore VM messages, and avoid certain LinkedIn (or any of the other social media) connections. What hasn’t changed is the undeniable fact that customers don’t trust salespeople, no matter what they say or what they call themselves.

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Why? Because customers react negatively if they feel the deck is stacked against them. They avoid those who make them feel inadequate, dumb or stupid. And that’s what happened when salespeople had a corner on knowledge. Now that the genie is out of the bottle and information is readily available, customers reject any salesperson who “smells” like the past. Being different from others in sales means having conversations with customers, asking questions, clarifying issues and being as transparent as possible. The point is clear. Combating complacency is critical for success in sales today. So keep on thinking.

ROBERTSON RYAN & ASSOCIATES, INC.

LOOKING TO PROTECT YOUR CLIENT’S DREAM We have come full circle and are willing to insure the dream that has been made a reality. We are not the same Pekin Insurance® that is just looking for contractor business. Be a part of our new commercial lines business focus that is interested in office buildings, machine shops, restaurants, dealerships, and more. There is now a great market for your Preferred Property Risks, and it is Pekin Insurance! Now available is a full line of commercial business services including Loss Control, a Special Investigations Unit, and a Return to Work Program.

> John R. Graham of GrahamComm is a marketing and sales consultant and business writer. He publishes a free monthly eNewsletter, “No Nonsense Marketing & Sales.” Contact him at johnrg31@me.com, 617.774.9759, or johnrgraham.com.

WISCONSIN INDEPENDENT AGENT

We offer some of the most innovative products available in the industry today and are continually searching for ways to become the easiest company to do business with.

Join our network of independent insurance professionals and discover how easy it really is! 2505 Court Street Pekin, Illinois 61558 800-322-0160, Extension 2394 www.pekininsurance.com

WWW.PEKININSURANCE.COM

Scanre He

ERRORS & OMISSIONS

Iâ&#x20AC;&#x2122;LL SEE YOU IN COURT â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m going to sue youâ&#x20AC;?

These five words can cause a significant emotional reaction. That reaction will no doubt be different than hearing the words â&#x20AC;&#x153;Great jobâ&#x20AC;? or â&#x20AC;?I love your agency.â&#x20AC;? Unfortunately, these threatening words have been said more than once or twice over the years. So, what would be your reaction if a customer said to you, â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m going to sue youâ&#x20AC;?? One agent said he would literally throw the customer out of his office. Hmmâ&#x20AC;Śprobably not a wise idea. One thing that is very important to realize is this: just because you get sued does not mean you did anything wrong. Actually, many E&O carriers report that they close out well over 50% of their E&O cases for nothing! There may be some defense costs but there was no loss payment. So, once again, just because you have a customer threatening a lawsuit, it is important to stay calm and then:

number and a detailed description of the claim or incident.

Do not alter or make changes to the account/file in question.

Provide as much detail as you can including dates that the error allegedly was made and the clientâ&#x20AC;&#x2122;s specific coverage in question.

Do not discuss the matter with anyone other than your own personal counsel or a representative of your E&O carrier.

Take a look at your E&O policy. Hopefully this is not the first time you have ever read it. Take notice of the insuring agreements, conditions and exclusions.

Do not allow the inspection, copying or removal of your records without consulting with your E&O carrier.

Take direction from your E&O carrier. Chances are they will assign you defense counsel. Continue to stay calm. There are also some definite things not to do: Do not provide any recorded or written statements concerning the error involving your agency. Do not make any admissions of liability (you will probably feel bad but do not admit that your agency made a mistake).

Promptly report this matter to your E&O carrier. Provide Do not make or commit to a payment without consulting them with the various details pertaining to your E&O carrier. your client including name, address, phone

Rely on

From the friendly voices of our customer service staff to the personal visits by our marketing managers and underwriters, to the promptness of our claims adjusters, we are told time and again â&#x20AC;Ś

One thing that is very important to realize is this: just because you get sued does not mean you did anything wrong. Actually, many E&O carriers report that they close out well over 50% of their E&O cases for nothing!

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

While these should make perfect sense, some of these â&#x20AC;&#x153;rulesâ&#x20AC;? have occasionally been broken over the years and often with disastrous results. Remember, E&O claims happen. Stay calm, report it to your E&O carrier and let them do their job. After all, isnâ&#x20AC;&#x2122;t this why you bought the coverage?

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FOOD FOR THOUGHT GOVERNMENT INACTION According to the non-profit Citizens Against Government Waste, there are over 550 government programs and subsidies that – feign surprise – waste taxpayer money. If these subsidies could be eliminated, taxpayers would save around $2 trillion over the next five years. For example, there are between 55,000 and 77,000 government buildings sitting empty and unused across the country that are still being funded with tax dollars. Source: Yahoo! News

THE BEST CITIZENSHIP MONEY CAN BUY While “comprehensive immigration reform” winds through the U.S. political process, a few countries (including the U.S.) have already severely bent the nationalistic standards supposedly regulating entry of foreigners. The U.S., Britain, Canada and Austria allow rich investors who pass background checks to qualify for an express lane to residence or citizenship, and the line is even less onerous in the Caribbean nations of Dominica and St. Kitts and Nevis, which offer quick citizenship for investments of $100,000 and $250,000, respectively — the latter especially valuable, allowing access to 139 countries including all of Europe. (The U.S. minimum is $1 million, or half that for investment in an “economically depressed” area, but the reward is only a “green card,” with citizenship still five years away.) Source: News of the Weird (Associated Press via WNEW-TV)

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CELEBRATING ONE BILLION IN WRITTEN PREMIUM!

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DOUBLE DIGIT GROWTH has pushed ACUITY over the $1 billion revenue mark! In the past 14 years, we’ve quadrupled our written premium and you are responsible for that. Thank you! We have the agents, employees, and strategic plan to allow our growth to keep compounding on the path to becoming a multibillion-dollar insurer.

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

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WISCONSIN INDEPENDENT AGENT

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