The Bridge: Fall 2018 | MGA/Broker Edition

I N S U R A N C E I N D U S T R Y K N O W L E D G E F R O M O A K S T R E E T F U N D I N GÂŽ

a first financial bank company

Fall 2018

Transforming into a data-driven business Page 6

Competition: The race towards the future Page 8

FEATURES

MGA/Broker Edition

Fall 2018

Publisher Oak Street Funding

Embracing new ways for a successful future.

14 4 Managing the

Contributing Editor Sharon Robbins Associate Editor Walter Niemczura Art Director/Designer Aidreen S. Hart Graphic Contributor Beth Winchell

cost of disruption

The Bridge is a newsletter produced by:

The industry is experiencing unprecedented change.

Find out how to keep up.

5

The new digital landscape is changing the customer journey.

Alexa: Who’s the best insurance company?

12 Jeff Arnold

We sat down with the president of RightSure Insurance Group.

Share Your Thoughts If you have any questions, comments or ideas for The Bridge®, let us know. Email us at marketing.box@oakstreetfunding.com or visit us on social media.

Oak Street Funding does not make any representation as to the accuracy or suitability of any of the information contained in any third party advertisements or websites and does not accept any responsibility or liability for the conduct or content of those advertisements and websites and the offerings made by the third parties. Third party advertisements and links to other websites where goods or services are advertised are not endorsements or recommendations by Oak Street Funding of the third party websites, goods or services. Oak Street Funding assumes no responsibility for the content of the ads, promises made, or the quality/reliability of the products, services, or positions offered in any advertisements.

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Editorial Director Stefanie Neer

Oak Street Funding 8888 Keystone Crossing, Suite 1700 Indianapolis, Indiana 46240 844-357-9346 Loans and lines of credit subject to approval.

Potential borrowers are responsible for their own due diligence on acquisitions. California residents: Loans made pursuant to a California Department of Business Oversight, Finance Lenders License (#6039829). The materials in this paper are for informational purposes only. They are not offered as and do not constitute an offer for a loan, professional or legal advice or legal opinion and should not be used as a substitute for obtaining professional or legal advice. The use of this newsletter, including sending an email, voice mail or any other communication to Oak Street, does not create a relationship of any kind between you and Oak Street.

© 2018 by Oak Street Funding LLC. All rights reserved. Any duplication without prior written permission is strictly prohibited.

www.oakstreetfunding.com

LETTER FROM THE FOUNDER/CEO

Destination: DISRUPTION

As both professionals and consumers, we’ve all noticed a dramatic shift over the last few years in how individuals seek information and make buying decisions. How you choose to market your business, communicate with both prospects and customers alike, and generally adapt to this new digital era will determine the future success of your business. Disruption is in full swing and it’s up to you to either forge ahead or be left behind.

This edition of The Bridge is all about tackling the challenges that disruption brings as well as recognizing the opportunities that exist – as I believe the greater the disruption, the greater the opportunity. Is the fear of change or failure holding your business back from adopting new, modern practices? Are you intimidated by all of the data that now exists or are you embracing it to make more well-informed business decisions? Do you have a strong online presence, or perhaps don’t feel tech savvy enough to keep up? Not sure where to start or what to do next?

Strategically adapting to the changing marketplace is no small feat.

Doing so may require a capital investment. Oak Street Funding provides insurance businesses with capital for growth, acquisitions, successions and

Free Webinars on Demand Our resources are packed with expert advice and best practices.

Watch now! oakstreetfunding.com/webinars-ia

more. While challenging, disruption also provides opportunity whether you are maturing, expanding or planning your exit strategy. We’ll get you there.

Oak Street Funding® Vision Statement Rick Dennen,

Founder, President & CEO

To be the market leader in client experience for commercial financing by delivering unique and diverse product offerings through cutting edge technology and exceptional employee and client service.

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managing the cost of

From breakthrough technology solutions, to a tighter labor market, to all sorts of surprising competition, our industry is experiencing a period of unprecedented change. Many of these changes have such a dramatic impact on familiar business practices and environments that they’re referred to as “disruptive.”

While it can be difficult for businesses like yours just to stay on top of these changes, it’s critical to be open to transformations if your long-term plan is to remain in business for your clients and your own compensation. Keeping up with innovation is not a one-shot effort. The businesses that thrive in coming years will be those embrace change and position themselves for constant adaptations. What are some of the ways in which your organization can prepare for disruption?

Staffing. As technology assumes more of the lower-level work, the staffing structure of organizations in our industry is likely to see a greater emphasis on what’s now seen as midlevel and professional roles. That emphasis on technology may also create a need for employees who are focused primarily on developing, managing, and leveraging technology resources for the business to better serve its clients.

As personal relationships become increasingly important in both landing and retaining clients, companies will increasingly look to add professionals and other staff members who are adept at networking in person and through social networks. If current staff members lack those skills, bringing in new people may provide an affordable approach.

Training. If your team is going to stay ahead of the factors

that are disrupting the industry, they’ll need to acquire new knowledge and skills. That’s particularly true for professionals who are in the middle or twilight of their careers, and who may be apprehensive about changes to what they’ve done for years. In addition to sending staff to industry conferences and workshops, it may be advantageous to contract with trainers to provide instruction and support in your offices.

Technology. Given that so many of the potential disruptors

involve technology, it shouldn’t come as a surprise that businesses will find themselves making substantial investments in the sector. The industry continues to move toward a cloud environment, which offers businesses notable advantages, including improved collaboration, scalability, and less in-house system maintenance. However, shifting operations from your own network to a cloud environment may carry costs. In addition, as your business becomes increasingly reliant on 4 | w w w.oakstree tf un di ng.com • 8 4 4 - 3 5 7 - 9 3 4 6

online operations, you’ll need to ensure that your internet security is robust enough to stand up to the newest threats.

Marketing. In the ever-more-competitive marketplace, promoting your business will become even more critical. Getting the word out in the most effective ways is likely to require additional investments in multiple marketing channels. Fortunately, the growth of digital marketing is making it easier to develop highly targeted and trackable approaches for building your business.

Unfortunately, success with these tools requires additional knowledge and expertise that your internal team may not have, so you’ll need to invest in people and companies that can help you make the connections you need.

Adequate working capital. Many of the

elements described here, from technology to training, will require at least some capital to support them. Having a strong base of working capital gives businesses a way to invest in those changes without having a negative impact on other aspects of operations.

If your business doesn’t already have excess working capital for investment, you may want to consider obtaining a working capital loan. Such a loan can be used for the specific needs facing your business, whether it’s to fund a new initiative, invest in a marketing strategy, upgrade technology, create training programs, add to your staff, update your current space, or any combination of those and other plans. A loan that’s structured to be funded from future cash flows can offer an affordable alternative to traditional funding sources.

Digital landscape is changing the customer journey ALEXA: Who’s the best insurance company?

Most insurance professionals have noticed a shift in how customers seek information and make buying decisions.

How you market your business in this new, electronic and fast-paced world can determine whether your company stands out among the crowd. Learn to adapt and thrive, and you’ll discover you can connect with customers and prospects in ways you never thought possible.

Reasons for the Customer Shift

Before we examine ways to flourish in this new era, let’s look at what has impacted the customer in recent years: • Going digital: Customers have grown accustomed to communicating with businesses digitally and may prefer this method over traditional phone or in-person communication.

• Prevalence of mobile technology: Mobile web browsing, shopping and researching has now become the new norm.

• Instant gratification: In this era of technology, people expect to receive information or service immediately.

• Shorter attention spans: With more and more data cluttering our phones and inboxes, customers are easily distracted and overwhelmed by information.

• Millennials rule: Younger adults born in the millennial generation have come of age and have now become the largest buying group in the world.

• Purpose-driven decisions: Customers have not lost their strong sense of community and still look for compelling reasons for buying products or using a service, especially for local or causerelated purchases.

Digital Marketing Strategies To Try Some of the benefits of digital marketing strategies that insurance businesses can enjoy include lower cost, improved visibility

(SEO), better targeting and personalization, and a shorter sales cycle. Here are some digital marketing ideas to get you started: • Website: Your website is more than just a static brochure. Innovative businesses use them to showcase customer testimonials, offer helpful advice or even service customers.

• Blogging / Content marketing: What news, trends or information do you wish you could share with your customers? Use blogging and content marketing for better search engine optimization and showcase your expertise.

• Social media: Your customers are using social media. Find out which channels through experimentation (or surveying) and interact with them. Share helpful information, local stories or behind-thescenes footage on your company social media pages.

• Email: Many insurance businesses underutilize email newsletters as an effective marketing tool. Consider driving traffic to your website or social media accounts via your team’s email signatures.

• Video: Try several options in this category, from live social media videos to your own YouTube® channel. Share facts, stories, customer successes, or answer frequently asked questions via a video.

Don’t forget to include some of these on your website and link to them from other channels.

• Online chat: Many insurance businesses have added online chat features to their websites to answer any questions prospective customers or current customers may have. You may be able to find an industry-specific service who can handle the chat service on your behalf.

• Online listings: From Google® Local profiles to business review sites, many online directories exist to help customers find what they need. Do some research to find ones in your industry who can direct customers to your website. Also consider

trade industry association listings as an option.

• Internet advertising: With tools like cookies and paid search, consider investing in either pay per click advertising or remarketing ads. Pay per click will help move your business listing higher up on a google page, thus inspiring visitors to choose your business over competitors to click on. Remarketing will show an ad for your business to a website visitor after they have left your site, reminding them of who you are and to come back.

• Geo-fencing: Advances in marketing have enabled advertisers to specifically target consumers in a geographic region.

Using geofencing tools, you can deliver your advertisement to a pre-defined set of boundaries, when they are most likely to see it.

• Voice marketing: Amazon® Alexa, Google Home, Google Assistant and other conversational user interfaces have changed the way consumers are searching for information. In the future, advertisers will discover ways to advertise subtly through these methods by developing a skill or incorporating content into the query responses.

• Influencer marketing: Many national brands have discovered the power of social media or online influencers who can serve as spokespeople for their brand by representing it on their channels. What companies or partners might make good influencers for your business?

Keys to Success in the Digital Marketing Era

To succeed with digital marketing, remember to keep in mind your core customers, personalizing your messaging to fit their unique needs. Integrate your new marketing tactics with your traditional ones and tie them all to your operational and sales methods for greater success. And don’t forget to track your return on investment!

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Businesses that are striving to be innovative often embrace popular terminology. One concept that’s been receiving a great deal of attention

is “data-driven,” as in a business that roots its operations and decision-making in solid data rather than subjectivity.

There are many businesses today that are truly driven by data, from online travel services such as Airbnb® that exist completely online and in databases, to heavily datadependent operations that are tied to physical processes, such as Amazon®. When we talk about data-driven businesses in the insurance industry, we’re usually referring to what’s been called a data-informed operation, in which data is used with conventional business practices to optimize existing business models and improve competitiveness. 1 The goal of such organizations is to leverage data to gain the intelligence needed to make the kinds of decisions

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Here’s a practical framework for moving forward with your own transformation: that can transform the business. Doing so requires those businesses not only to change their processes, but to make significant changes in their culture and the mindset of leaders and staff. Successful transformations into data-driven approaches are resulting in improvements of 20 to 30 percent in EBITDA as those organizations develop access to more granular insight and create efficiencies. 2 Among the advantages of moving to a data-driven paradigm are the potential for revenue growth, as it becomes easier to more precisely target clients, adjust pricing to their situations, and react more quickly to market changes. This strengthens client loyalty by better assessing and responding to their needs; increasing profitability and efficiency; and becoming better at identifying potential areas of risk so they can be addressed more quickly. 3 The key to making the transformation into a datadriven organization is ensuring that all business decisions will be derived from the data and the strategy. Signs that your business is doing this well include data always being incorporated in meetings and discussions about tactics, having the data strategy emphasized during onboarding of new employees, data being addressed in the budgeting process, and being able to identify an ROI for the data strategy. Just as important, your top leaders must be able to explain the strategy and its objectives to employees and those outside the business. 4 There are some common philosophies you’ll find in companies that make a successful transformation to a focus on data. They begin with a leadership team that embraces and evangelizes the importance of a data-driven culture, and places a high value on transparency and communication.

That’s important, because success with this business model requires genuine collaboration among all levels and functions. Sharing data among all employees makes it possible to improve that collaboration and encourage greater performance among individuals and teams.

Companies that have become data-driven place a priority on the collection and storage of practical, usable data. They invest in the tools and knowledge needed to gather, store, and analyze new data as it becomes available. By creating this type of framework, they’re able to continually assess current systems and processes and gain immediate insights into areas where change is needed. 5 If your organization and its operations are not already built around obtaining, storing, and analyzing data, there are several steps you can take to achieve the transformation.

From a high-level perspective, you need to develop analytic models that are relevant to your business, understandable, and that provide useful information. Ideally, those models should be based on your current processes for decisionmaking. Next, use the models to turn the analytics into simple tools your entire team can use to inform the decisions they have to make as part of their functional responsibility.

Finally, use what you’ve learned to create value from all the data that’s available to you. 6

Start with the leadership. If the people running your organization do not embrace your goals enthusiastically and by example, the rest of your staff won’t make it a priority. It takes more than simply stating that data is important and must be considered. The leadership has to create a believable business case for how the focus on data will benefit both the organization and the employees.

Fix some things fast. It’s rarely a good idea to rush into significant changes, but identifying some key problems or opportunities and making those the first objectives for the transformation can produce evidence that the focus on data is sound and effective. If the team sees measurable ROI and value, they’ll be more likely to embrace subsequent efforts and to help the company’s leadership develop key performance indicators for gauging success.

Scale up in steps. Rather than jump into the new focus by making a significant investment such as the replacement of all technology, construct a transition plan using the resources the company has and open-source tools. Instead of trying to solve large problems in one fell swoop, break them into smaller components and develop incremental solutions. Thinking smaller will increase the likelihood of success and staying on a timeline, which will build enthusiasm for continuing to expand the effort. Along the way, look for opportunities to improve your data architecture and processes to create efficiencies and set standards for continuous improvement.

Prepare your people. As you move through the transformation to an organization that relies more heavily on data, you may begin to notice gaps within your team’s expertise. Employees whose enthusiasm for dealing with the new environment may surprise you. It’s a good time to consider realigning your staff to meet the needs of the changing organization by changing people’s roles or making strategic hires.

Celebrate success. Finally, as the company begins to derive successes from the transformation, take time to ensure everyone knows how well things are going. Recognize staff members for the contributions they make, and reward everyone in small but meaningful ways for their willingness to take risks.

That recognition will encourage continued innovations. 7

Footnotes 1 Loshin, David, “What is a data-driven business?,” SAS.com Data Roundtable Blog, November 30, 2017 2 Gleeson, Brent, “The Benefits of Leading Data-Driven Organizational Change,” Forbes.com, Sep 28, 2017 3 Waller, David, et al, “Transforming into A Data-Driven Organization,” OlverWyman.com blog, May 2017 4 Karna, Henna, “5 Key Questions to Ask About Your Data Program,” Risk & Insurance, July 9, 2018 5 Gleeson, op. cit.

6 ibid.

7 Waller, op. cit.

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Ever-increasing competition: The toward the future How are you differentiating your insurance business from the pack? Has your business become stagnant, or are you advancing your practices to compete?

Those who don’t upgrade and rework their systems, methods of marketing and other business practices will surely get left behind, losing their customers to the competition. Knowing ways that you can transform your business can help you avoid this fate.

In the changing marketplace, insurance professionals must have the right business practices in place to compete on a national and even global level. This involves finding innovative ways to attract and retain the modern client in these days of digital transformation. It includes automating processes and workflow to streamline operations. It even includes expansion and hiring practices. Those who work to master the changing marketplace will race toward the future, while others will sadly get left behind.

offering fast and easy service is the way of the future.

• Using the latest technology: Find ways to service customers using new, online tools that can improve the customer experience. Examples include CRM (customer relationship management), social media, online quotes, and customer service chat features.

• Keeping the human touch: Customers still need to know their needs are understood. Don’t abandon all your traditional methods of communication in favor of electronic ones. Face-to-face communication and interaction still count in this always-online world.

New Technologies to Help You Compete

Luckily, advancements in technology have enabled the modern agent to stay competitive and profitable. Here are some ways you can keep up with the changes and maximize growth:

Appealing to Today’s Consumer

• Digital marketing tools: Businesses who use social media, blog regularly and give their websites regular content and design upgrades benefit from increased visibility and top-ofmind awareness. New targeting tools even allow for businesses to customize advertisements by geographic, demographic and other profiles to ensure they reach their ideal prospects.

Investing in digital marketing makes sense for most businesses because of the high return on investment from this low-cost promotion method.

• Providing instant accessibility: Whether it’s offering online quotes and applications or handling customer service online,

• Technology for serving clients: A wealth of tools exist to provide more efficient service. These include VoIP technology, auto-attendants, web-based client portals, CRM, advanced phone systems, online data storage/retrieval, online quoting/chatting, customer service and more.

Discover gaps in your current customer service process and uncover tools that can help you sell and provide service

Human behavior has changed with the technological advances of our time. Therefore, you must adjust your current business, marketing and sales strategies to make themselves more attractive to customers. Some ways that you can address current trends and come out ahead of the game include:

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more effectively. If the thought of implementing these tools is overwhelming to you, start slowly. Begin by integrating one or two technologies into your operational process, and you’ll start to see the benefits of the change in your business.

Hiring to Compete

Another way your business can stay competitive includes hiring and retaining the best available talent. If you offer new team members the latest software tools, you will give them an added advantage in the field. In addition, providing them with adequate training and opportunities for professional development will ensure that they can perform well and will thrive in your business. Once you have hired your talent, it’s important to keep them happy and thriving so that they will remain loyal to your company. Ensure that they assimilate well with other members of your team and understand their role in the organization. Finally, make sure to mentor them and provide them with advice along the way, particularly if you are a hiring someone with less experience.

Mergers and Acquisitions

Depending on the goals of your business, staying competitive may include opportunities to merge with, purchase or sell to another insurance business. Collaborating or acquiring another business with a similar or complementary service or product line may give your company a competitive edge, while giving your customers added value. Whether you position your business to sell or merge or acquire another business, some ways you can appeal to buyers and sellers include: • Upgrading your technology • Streamlining and documenting your operational processes • Refreshing your brand/logo/marketing message • Updating your website and blog • Maintaining a regular presence on social media • Conducting targeted marketing campaigns • Staying active and involved in the community • Hiring and retaining top talent • Updating and expanding your customer database • Maintaining optimal data security practices • Analyzing and documenting your marketing ROI

Obstacles for Success

Staying profitable in this highly competitive industry can prove challenging. Some of the obstacles many businesses encounter on the road to success include: • The sheet cost of competing: Trying to manage marketing, adopting new technologies, new hires and acquisitions can be quite overwhelming for anyone. Working capital investments can take the pressure off these new ventures as it can free up resources for those investments.

• Time required to implement: Nobody should expect to see change overnight. Hiring properly, improving processes, implementing new technologies and expanding your client base will take some time. If you are patient throughout the

process, you’ll manage your expectations realistically without becoming frustrated.

• Getting your team on board: Educating and training your team on all the new processes, technologies and changes may prove to be a daunting task, especially if employees have done things the same way for some time. Hold a collaborative meeting to get everyone on the same page and explain the reasons for the shift in processes and systems so that employees are more receptive to the changes.

Manage Your Growth and Master the Marketplace Insurance businesses aspiring to expand in the next decade must do more than maintain the status quo. Employing any or all the following tactics will work to their advantage: • Learn from industry leaders: Look to seasoned insurance businesses to learn from their successes. Ask where they network, how they market their business, and what has worked or not worked. Contact them to gain wisdom on how to implement similar strategies in your business.

• Continue to hustle: The best business owners maintain a go-getter mindset when it comes to selling, servicing and growing. Be on the lookout for ways to adapt to trends, new clients to attract, or new technologies or systems to implement to improve your business and out-hustle your competition.

• Embrace digital communication: If your current processes don’t allow you to reach your customers online, or communicate or service them electronically, it’s time to upgrade your methods. Make it possible for them to do so with web technologies and electronic systems.

• Integrate digital and traditional: Even if you have started employing digital marketing efforts, make sure you are integrating these with tried-and-true, traditional approaches for maximum impact. And don’t forget adding a personal touch: Customers may prefer to communicate digitally, but that doesn’t mean they don’t appreciate personalization or one-on-one time.

• Showcase your brand: Communicate to your customers and prospects why your business is unique. Be sure to include these marketing messages and unique aspects of your business and brand in your digital and offline marketing efforts. When you differentiate yourself from the sea of competitors in the marketplace, your customers will feel confident in their decision to choose you.

No matter how competitive the insurance industry becomes, or how much technology improves the processes and ways of communicating, insurance professionals must remain nimble and adaptable. Those who are set in their ways may struggle to keep up with the changing marketplace but should take advantage of any opportunities available to move their business forward. Following some of the strategies above for hiring, marketing and managing processes will ensure that they have a chance to compete and thrive in the new, technologically-savvy economy.

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:industry news

ill-informed cyber security practices

A bird? A plane?

Drones taking off in insurance industry

Small- to medium-sized businesses have vastly

Countless industries are experimenting with commercial

Often, owners wrongly believe their business is

drones to cut costs and increase productivity. In the insurance

“too small to be a target.” However, Treadstone71,

industry drones could impact claims management and even

a cyber-risk consulting firm, found that “40% of

provide a potential new line of business. For example, using

cyberattacks are aimed at companies with 500

drones to survey an area before a disaster could decrease the

employees or less.” Another misconception is that

fraud that often accompanies legitimate post disaster claims.

conventional insurance policies cover cyber-attacks.

Also, as more companies invest in expensive cutting-edge

In reality, commercial general liability, property,

drones, they will need to protect their assets. There are still

blanket crime, professional liability, and executive

some major regulatory road blocks that must be addressed

protection policies usually only offer partial

before commercial drone usage is common place, but there is

protection. Small- to medium-sized businesses must

no doubt drones will disrupt traditional business practices

prioritize cyber security or risk losing everything

under prioritized cybersecurity when compared to larger entities. Many small business owners put the livelihood of their companies at risk when hiding behind common cybersecurity misconceptions.

Blockchain technology cutting costs Cryptocurrencies, like Bitcoin, were the first major application of a revolutionary technology known as blockchain. In simplest terms, blockchain is an extremely reliable and secure digital ledger where parties conduct and validate transactions. Blockchain technology eliminates the middleman and transaction fees, thus making it useful anywhere a transaction requires a third party. Quincy Analytics used real world data to model the result of a company using blockchain for four years. Depending on the industry, the model predicted cost savings ranging from 12% to 23%. While blockchain is still in its infancy, a diverse group of companies, including MetLife®, Goldman Sachs, and Deloitte, are already experimenting with its application.

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Do-it-yourself insurance

Telematics save money for insurers and customers, machines are talking to each other Telematics is the technology behind the remote transfer of digital information between devices. The auto insurance industry is beginning to utilize this technology to gather real time customer data.

P2P (peer to peer) insurance is sending shock waves

Relevant measurable

through the traditional insurance industry. In the P2P

data, like if a customer

insurance model, any individual can define a set of rules

is prone to speeding,

and create a digital user team. Team members self-

enables insurers to more

govern all insurance functions like approving claims and

accurately manage risk

accepting new members. The most important aspect

and process claims. For

of the P2P model is that there are no premiums; team

example, when insurers

members only pay if a member posts a claim. Don’t

receive auto accident

worry, this model does not mean the end for insurance

claims they can review their data and assess whether

agencies and carriers. Since it would be difficult for

claims are fraudulent. The implementation of telematics

a large amount of team members to communicate

also benefits customers; if insurers know a customer

promptly and effectively, insurance professionals would

is a safe driver, the customer will likely receive lower

be in charge of handling a team’s daily issues.

premiums.

Say goodbye to bulky phone hardware in the office

Traditional office phone networks are being replaced with software stored in the cloud. New cloud based business phone systems have all the necessary call routing commands and eliminate office hardware. Their lack of hardware installation makes workplace moves a smoother process and the systems almost never drop calls due to their 99.999% uprate.

Additionally, business owners can easily customize and edit the route of any inbound call using visual interfaces.

https://www.cio.com/article/3252093/financial-it/taking-to-the-skies-using-drones-in-the-insurance-industry.html

https://www.insurancejournal.com/research/app/uploads/2018/04/2018-0409_Cybersecurity-Myths_White-Paper-1-002.pdf

https://www.insurancejournal.com/research/app/uploads/2018/01/blockchain101.pdf

https://www.the-digital-insurer.com/blog/insurtech-teambrella-and-the-third-wave-of-peer-to-peer-insurance/

https://www.business.att.com/content/whitepaper/transforming-the-auto-insurance-industry-with-telematics-whitepaper.pdf

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Jeff Arnold, RightSure Insurance Group Oak Street Funding’s Kim Grathwohl sat down with Jeff Arnold, President of the successful RightSure Insurance Group, as well as author of “The Art of the Insurance Deal”. Read below to hear Jeff’s insight on the current insurance marketplace, wise advice based upon navigating growth within the industry over the last few years, and learn more about his number one ranking book. be anything you want to be in the insurance industry. There are no glass ceilings and the only limitations are those you place upon yourself.

Kim: You have implemented several strategic growth strategies for your agency – any wise advice from your experience?

Jeff: My thoughts would be to identify and target your ideal client and understand the demographics of the market segment in your city, state, and surrounding states within which you wish to conduct business. Any attempt to grow just by trying to be all things to all people is defeating and distorts your brand. You need to be known for something.

Also, it is very true that culture eats strategy, so whatever your strategy is, you need to give time and attention to your agency’s culture to make sure that both are aligned.

Kim: Any advice on overcoming current challenges in the insurance industry?

Jeff: I think we will see much more consolidation at the independent agency level amongst older, “more mature” agents. I am also seeing encouraging data surrounding the number of younger agents starting from scratch and ditching the need for an office, staff, etc. They are taking advantage of a mobile society, technology offerings and the vast amount of Millennials that prefer to do business with – well, of course, like-minded Millennials.

Kim: How has a lender such as Oak Street Funding played a role in the advancement of your business?

Jeff: Oak Street has been our primary partner in deals funded/agencies 12 | w ww.o akstree tf un di ng.com

Kim: Tell us about your book – what was your motivation and inspiration to write it? How can insurance professionals benefit from reading it? acquired. We were lucky to develop a relationship with Oak Street about 11 years ago. Our styles are very similar in that we are both very conservative in our valuations and have always let the numbers drive the deal, not emotion. I get calls monthly from other lending firms offering to match or beat my current terms, but the staff and underwriters at Oak Street know us, we know them and there is a great deal of trust built over the years.

Kim: What is the milestone you are most proud of achieving? What do you love most about working in the insurance industry?

Jeff: I am very happy (and proud) of what we have accomplished at RightSure, and am equally excited about my book’s number one ranking on Amazon®, however I don’t think we’ve hit our final major milestone yet. Every day, every month, and every year I keep moving the finish line, to challenge myself, our team and RightSure.

What I enjoy most about our industry is the people. There are all different kinds of people, personalities, thought processes, and experiences. You can

Jeff: A good friend of mine told me I should think about capturing some information about all the deals we have done. When we were in the middle of looking at our 51st or 52nd deal, he made the “you should write a book” statement. I just started taking pen to paper and began writing. The book took way longer than I thought and my publicist literally erased every word I would submit, challenging me to rewrite nearly every sentence. I love the stories of the deals in the book.

Others can benefit by reading about the mistakes I have made, the places we have failed, etc. While there are many successes, the deals that taught me the most were the ones we made mistakes on, and new agency buyers can learn from those mistakes – if they are so inclined to study someone who has made them in advance.

The thing I am most happy about the book is – pretty much every interview, podcast, speaking introduction now begins with “we welcome – Jeff Arnold, the man who calls the insurance industry sexy, exciting and just plain awesome.” Our industry really is all of those things. We just have to get other people to see it that way.

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T OPMEN DEVEL

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We’ll get you there. Stay current and visit us at oakstreetfunding.com/events

Target Markets Scottsdale, Arizona October 22-24, 2018

MarshBerry Impact Summit

MarshBerry Peak Performance Park City, Utah January 28-30, 2018

New York City, New York November 6-8, 2018 844- 357- 9346 • w w w. o a k s t re e t f u n d i n g.c o m | 1 3

As an insurance professional, have you been working in your business the same way for years? The market is changing, and so are your customers. The time has come to step out of your comfort zone and experiment with some new strategies for growth in the next decade. But for some, fear of change keeps holding us back. What is it about fear that keeps us from moving forward and trying something new?

Let’s explore the psychology of our fears and how we can overcome them to implement lasting change in our businesses.

Why do we fear change?

We like to be in control: Because we’re comfortable where we are, a lack of change may simply mean we feel more control over our environment and our business processes and practices.

For example, in the past, everything has been organized and filed in the same place. We follow the same paper trail or filing system for new clients. We use the same method of selling to customers and following up with them promptly. What could change in this scenario to improve our outcome? For starters, a new data entry or CRM system could better capture customer data and make sales and customer service staff more organized.

It could help identify upsell opportunities or help your business send more targeted marketing campaigns. An electronic system could store customer data where it is easier to access and keep confidential information safe from attacks. Instead of fearing change in favor of control, try making small changes that allow you to maintain control over your overall business operation, slowly modifying it to achieve the results you want.

We fear failure: Another reason we may shy away from making change in our organization could be a fear of disappointment if things don’t work the way we planned. Perhaps we invest in new technology that becomes challenging to implement. We worry it won’t work properly or that we don’t have the tech savvy skills needed to make it a success. Or let’s say you decide to send out a new advertising campaign to a new audience. What if you spend hard-earned dollars on the campaign and it produces lack-luster results? Is the lesson never to try? No, because sometimes change requires trial and error. We may not achieve perfect results the first time we attempt something, but the process of working through the challenges that come along with change will help us adapt and arrive at the best result. Positive change is worth the risk. Learn from others who have implemented the same change successfully.

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We lack the time to focus on change. In today’s ever-busy world, this excuse is an important one to note. Many insurance professionals are overworked and overstressed. Therefore, tackling a new trend or implementing a new procedure simply gets pushed to the back burner. This can be okay for a while, until competitors start invading our territory and our numbers slip. It’s worth the effort to stay on top of opportunities for change or growth, and to take the time to implement the ones that will give your business enhanced market share, or offer your customers needed value such as convenience or customer support.

While insurance professionals train themselves to be risk-averse, in the world of business survival, sometimes these decision makers must take risks and try new things to succeed.

Take the time to pay attention to trends, listen to what your customers want, and identify opportunities when they arise. Then take a chance by implementing new strategies or technologies that will move your business forward. Remain persistent and patient as you adapt to change in your business, and never lose sight of staying a trusted advisor to your customers.

ACROSS 2. Embracing the advancements in this category can help your business ahead 4.

crossword >>Click here to fill in the crossword digitally.

2

5. The

fear of this holds us back

1

7.

Most of your customers use this channel to interact

9.

Striving to outshine similar businesses in innovation

3

4

5

6 7

8

ACROSS: 2. technology 4. content 5. change 7. social media 9. competing 11. working capital 12. stagnant 13. training DOWN: 1. digital communication 3. hiring 6. adaptation 8. digital 10. disruption

9

Share your expertise via creating industry relevant _____

11. A financial boost to help you implement disruptive changes 12. W hen your business is stuck in old ways; not progressing 13. Keeping

your team ahead of the curve in changing times

10

DOWN 11

1.

12

Talking with your customers online

3. Finding

and retaining the best possible talent 6.

Implementing changes in your business due to the current landscape

8.

The _______ landscape is changing the customer journey

13

10. Change

that has a dramatic impact on familiar business practices

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