February 2017 Professional Agent

professional agent FEBRUARY 2017

What’s Inside?

What Is A Good.................. 10 Producer E&O Claims Examples....... 12 Customer Service.............. 16 Doing A Good Job ............. 20 Won't Get You Anywhere Education Section............ 22 Attract And Retain ............ 34 New Talent

Digital Editions of PIAW Magazine Available at www.piaw.org

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2 FEBRUARY 17

simple solutions for complex times ®

From the

President Brian MacGillis, CPIA — President, PIA of Wisconsin

PIAW MEMBERSHIP As PIA’s Membership Committee Chair for the last few years, I’ve had the opportunity to speak with agencies that are new to PIA. Oftentimes, an agency will join our organization for the E&O offerings or the vast array of educational and CE offerings. However, some of the best conversations I have are with those members who are thinking about not renewing their PIA membership. The most common reason I hear from a member that is discontinuing their PIAW membership is that they have not yet found the benefit to their agency.

So with this month’s article, I would like to make it personal.

Below are some reasons why my agency is a PIAW member, outside of the E&O, legislative and education discussion. The purpose is to show you that while PIA has over 100 member benefits, it is up to the individual agency to make the most of their membership and make your membership a differentiating factor between yourself and the other agent in town.

1. Advertising – My agency has used the Personalized Bottled Water and Co-Op funds to partner with one of our insurance companies. This is an incredible way to get your name and logo out in the community at the local basketball or football game. You can also donate them to the village/town golf outing – with everyone walking around carrying and drinking your bottled water. The cost is extremely reasonable, especially if you are cutting the bill in half with a partner company.

2. Sample Producer Agreements and Procedures Manual – My agency is very similar to the heavy majority of the agencies in the state, in that we do not have our own

Human Resources department. These sample agreements can save you a lot of money and eliminate an enormous headache.

3. Cyber Liability Coverage – PIA was able to find me great coverage at a very reasonable rate for my own agency Cyber Liability policy.

4. Career and Job Postings – I have used and will continue to use this feature on the PIAW website. Many great placements are made as a result of agencies posting their openings. Some of the best CSR’s and producers know to look to our website for job openings and this method is far superior to the old fashioned way of looking for a new hire.

5. Free calls to Ron – We are blessed as an organization to have an experienced Executive who sat in the same chair you and I do for many years – agency owner, sales, customer service, and general problem solver. In one particular case a few years ago, one of our companies was discontinuing their Workers Compensation Insurance offerings in Wisconsin.

With one phone call to Ron, he got me in the right direction with the correct contact and we were able to save all those accounts by partnering with the right company.

With just those five examples, our agency saves thousands of dollars on an annual basis and grows with the help of PIA. So when you get your PIA renewal in the mail this spring, use it as an opportunity to go to the PIA website and find how our association can better serve your specific agency needs. Have a blessed rest of your winter and thank you for your continued support of PIA.

It’s your move. Now what?

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• Be a Producer Owner at RRA and keep your book • Allow RRA to handle administrative details • Continue working until you decide to step back or retire • Find the right buyer for your book and maximize your return

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Confidentially Contact Gary Burton 414.221.0386 // gburton@robertsonryan.com FEBRUARY 17 3

Memos from

Madison Ron Von Haden, CIC — Executive Vice President, PIA of Wisconsin

Succesful Producers SALES, SALES, SALES ….we all know that successful producers are the lifeblood of our industry. Ever wonder why most sales people do not succeed? Here are some statistics from the National Sales Executives Association that may explain why producers turn out to be non-producers: • • • • • • • • •

48% of Sales people never follow up with a prospect 25% of sales people make a second contact and stop 12% of sales people only make three contacts and stop Only 10% of sales people make more than three contacts 2% of sales are made on the first contact 3% of sales are made on the second contact 5% of sales are made on the third contact 10% of sales are made on the fourth contact 80% of sales are made on the fifth to twelfth contact

Sales people make the mistake of simply trying to make a sale instead of building a relationship and cultivating contacts into prospects and then contacts into clients. For our industry, these statistics may be more geared towards commercial lines than personal lines but the concept is the same….build trust and confidence rather than go for a quick sale based on price.

I GET IRRITATED when the government says there is little waste, fraud and abuse in the system. Occasionally I rail about extremely wasteful expenditures that I trip over when doing research. Now, I have a reference book to help my quest. It’s titled “Wastebook: PORKemon Go” and is released

by Senator Jeff Flake (R-AZ). Every one of us should bring these insanities to our legislators and demand that they be reviewed. At a time when we have a national debt in the trillions, $5 billion may not sound like a huge number but imagine how far that money would go to pay for legitimate

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SERVING POLICYHOLDERS AND INDEPENDENT AGENTS IN WISCONSIN SINCE 1854 4 FEBRUARY 17

projects or services. Listed below are some of the atrocities unearthed in the book: •

$1.7 million for a comedy club starring holograms of dead comedians

•

$74 million for a program that allows taxpayer-backed loans to be repaid with peanuts

•

$1.5 million to test the endurance of a fish on a treadmill

• $5 million to study the partying habits of fraternities and sororities • $460,000 for a computer to binge-watch “Desperate

Housewives” and “The Office” in order to learn human behavior •

$3.5 million to learn why people are afraid of going to the dentist

•

$817,000 to study monkey drool

•

$3.4 million for hamster cage fight matches

•

$300,000 to study if girls or boys spend more time playing with Barbie dolls

•

$450,000 to determine if dinosaurs could sing

•

$12 million for an IRS unused e-mail archiving service Senator Flake will introduce the “Stop Paying U.S. in Peanuts Act” to end the nutty program that allows federal loans to be repaid in peanuts as well as other legislation to prohibit the practice of earmarking. I wish him luck.

AND REMEMBER …..No snowflake in an avalanche ever feels responsible.

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FEBRUARY 17 5

From the

Boardroom LouAnn Herriges, CIC, CISR, PIAW Board of Directors

Connectivity 65+ Years in Insurance I recently received an email from the PIA office notifying me that it was again my turn to provide an article for the monthly magazine. I started to ponder as to what to write about for probably my last article for the magazine when I was again reminded that the article was due. Finally, it came to me that it would be appropriate to write about my experiences with PIA and tie them in with the buzz word that is so prevalent today “Connectivity”.

Today all we hear about is connectivity. Advertisers work endlessly to connect us to various products, places, and people. Our insurance companies spend large sums of money to connect with insured’s in an effort to win their business.

Our families, friends, future employers, and others all try to stay connected through sources such as Facebook, LinkedIn, Twitter, etc. Some people join network groups for business and other join local organizations or dating organizations to connect with individuals with similar interests. Connectivity is all about relationship building whether it is on a personal or business basis.

How does this relate to my experiences in the insurance industry? Connectivity for me started in the early years of my insurance career. I worked at a company and the Underwriters Association was meeting and I was invited. My boss advised me to attend and get to know some of the other individuals at the meeting. It was my first or second meeting and I heard they were looking for a Secretary/Treasurer.

I volunteered and in less than six months, I knew all of the members and where they worked. That was my first real experience with connecting and volunteering.

Through that connection, I was able to make a career move and have continued both volunteering and connecting. The biggest connection of my career came when I volunteered for the Automation Committee for the PIA of Wisconsin. After being on the committee for several years, I decided to take a bigger step, being a committee chairperson and finally running for the PIAW Board of Directors. I have had the honor of serving on numerous committees. The highest reward for volunteering is being elected President of the PIA of Wisconsin and connecting with many of you as friends and acquaintances.

At a recent luncheon I was asked why I volunteered so much. We all have our reasons. Whether it was for the PIA of Wisconsin, the high school parent organizations, the local Lioness Club and numerous other volunteering opportunities, I just enjoyed the camaraderie of the people and feeling a part of something that would change or help someone’s life including my own. Some might be opportunity, education, networking, career advancement, mentoring. On a more personal level, socialization, meeting personal goals, or increased self-esteem. No matter what the reasons, connectivity is now part of the list.

Being a member of PIA of Wisconsin and better yet volunteering to serve the PIA of Wisconsin has many rewards. As it has been mentioned many times in the past, not only by me but many other board members in articles and speeches, all volunteers are welcome. I would love to know that this article has connected with someone. Won’t you consider making a connection?

Quote by Robin S Sharma

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OCI Administrative

Actions Ted Nickel — Commissioner of the Office of Insurance

OCI has taken the following administrative actions. In many of these cases the respondent denied the allegations but consented to the action taken. Any forfeitures paid in these administrative actions are deposited in the Common School Fund which is administered by the Board of Commissioners of Public Lands. The earnings from this fund are distributed to all public K-12 schools in Wisconsin and are used by school libraries to purchase books. Copies of the administrative action orders may be viewed online at https://ociaccess.oci.wi.gov/ OrderInfo/OrdInfo.oci.

OCI is responsible for overseeing the operations and marketing of insurance companies and agents in Wisconsin.

OCI encourages anyone with a question or a complaint regarding an insurance company or agent to contact the office at this toll-free telephone number: 1-800-236-8517.

Allegations

and

Actions Against Agents

Marivel P. Alvarez, 8727 Westfield Dr., Dallas, TX 72543, had her insurance license revoked. This action was taken based on allegations of failing to pay a forfeiture and failing to provide information as ordered by the Commissioner.

Lea Anderson, 232 E. River Dr., New Richmond, WI 54017, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Brandi Barfield, 10250 W. Sharon Ln., Apt. 1, Milwaukee, WI 53225, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Richard A. Brammer, 1030 S. 2nd St., Milwaukee, WI 53204, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Sean P. Brennan, 131 Hart Rd., Sun Prairie, WI 53590, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Jennifer A. Brown, 1420 Riverview Dr., Apt. 12, Black Earth, WI 53588, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

to OCI, and was ordered to provide accurate and complete information to OCI. These actions were taken based on allegations of providing false information on a licensing application and failing to timely report an administrative action taken by the state of Ohio.

Robert H. Cargile, Sr., 6914 Waunakee Cir., Mequon, WI 53092, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Debora L. Davis, P.O. Box 1786, Benton, AR 72018, had her application for an insurance license denied for 31 days. This action was taken based on allegations of failing to disclose an administrative action taken by the state of Arkansas on a licensing application.

Dawn M. Deates, 12760 Hampstead Dr., Brookfield, WI 53005, had her application for an insurance license denied.

This action was taken based on allegations of failing to disclose a criminal conviction on a licensing application and having a criminal conviction that may be substantially related to insurance marketing type conduct.

Tracey Brown a/k/a Tracey Phillips, 967 E. Desert Holly Dr., San Tan Valley, AZ 85143, had her insurance license revoked.

This action was taken based on allegations of owing delinquent Wisconsin taxes.

Ernest D. Dufour, 2450 W. Pecos Rd., Apt. 2161, Chandler, AZ 85224, had his application for an insurance license denied for 60 days. This action was taken based on allegations of failing to disclose administrative actions taken by the states of Arizona and Utah on a licensing application.

Lawrence A. Bullard, 770 Summit Ave., Cincinnati, OH 45204, was ordered to pay a forfeiture of $1,000.00, was ordered to timely report all matters required to be disclosed

Wade Edwards, Jr., 2527 Glenholly Park, Sugarland, TX 77498, had his application for an insurance license denied.

This action was taken based on allegations of failing to

8 FEBRUARY 17

disclose a criminal conviction and an administrative action taken by the state of Wisconsin on a licensing application and having a criminal conviction that may be substantially related to insurance marketing type conduct.

Richard R. Frith II, 2159 Erin Ct., New Brighton, MN 55112, was ordered to pay a forfeiture of $500.00 and was ordered to timely report all matters required to be disclosed to OCI. These actions were taken based on allegations of failing to report an administrative action taken by FINRA. Clementine R. Haynes, 5240 N. 54th St., Milwaukee, WI 53218, had her application for an insurance license denied for 30 days. This action was taken based on allegations of failing to disclose an administrative action taken by the state of Wisconsin on a licensing application.

Michael E. Jenkins, 6093 Hobart Cir., King George, VA 22485, had his application for an insurance license denied for 31 days. This action was taken based on allegations of failing to disclose an administrative action taken by the state of Virginia on a licensing application.

Gabriel Lavine, 957 Sims Ave. NW, Atlanta, GA 30318, had his application for an insurance license denied for 31 days. This action was taken based on allegations of failing to disclose an administrative action taken by the state of Georgia on a licensing application.

Jeffrey L. Lemley, 1700 S. 169th St., New Berlin, WI 53151, had his application for an insurance license denied for 31 days.

This action was taken based on allegations of failing to disclose an administrative action taken by the state of Wisconsin on a licensing application.

that may be substantially related to insurance marketing type conduct, and failing to timely disclose a criminal charge and conviction when previously licensed.

Stephen L. Nims, 39 Ox Yoke Dr., Kensington, CT 06037, had his application for an insurance license denied. This action was taken based on allegations of providing incomplete and misleading information on a licensing application and selling insurance in other states without being licensed.

Patricia M. Nugent, 86241 Pinot Noir Ln., Coachella, CA 92236, had her application for an insurance license denied for 31 days. This action was taken based on allegations of failing to disclose an administrative action taken by the state of California on a licensing application.

Jeffrey P. Omalia, 96 Glendale Rd., Apt. 6, Avoca, PA 18641, was ordered to pay a $500.00 forfeiture and was ordered to timely disclose all matters required to be disclosed to OCI. These actions were taken based on allegations of failing to report criminal charges and convictions to OCI. Richard B. Patterson, Jr., 1102 Lapham St., Janesville, WI 53546, had his application for an insurance license denied for 31 days. This action was taken based on allegations of failing to disclose a criminal conviction on a licensing application.

Audi M. Stedman, 121 S. Clover St., Chippewa Falls, WI 54729, had his application for an insurance license denied. This action was taken based on allegations of failing to disclose pending felony charges on a licensing application and having criminal convictions that may be substantially related to insurance marketing type conduct.

John M. Leonard, 8805 Tamiami Trl. N., Unit 109, Naples, FL 34108, had his application for an insurance license denied.

This action was taken based on allegations of providing false information on a licensing application and having a history of securities law violations.

Daniel J. Tromello, 477 W. Gainsborough Rd., Apt. 102, Thousand Oaks, CA 91360, was ordered to pay a forfeiture of $1,000.00 and was ordered to fully report all matters required to be disclosed to OCI. These actions were taken based on allegations of failing to timely report administrative actions taken by the state of California and FINRA.

Heather M. Nickerson a/k/a Heather M. Jump, W3133 St. Killian Dr., Campbellsport, WI 53010, had her application for an insurance license denied for 60 days. This action was taken based on allegations of failing to disclose a criminal conviction on a licensing application, having a criminal conviction

Terry L. Westlund, 11225 College Blvd., Ste. 300, Overland Park, KS 66210, had his application for an insurance license denied for 31 days. This action was taken based on allegations of failing to disclose an administrative action taken by FINRA on a licensing application.

Allegations

and

Actions Against Companies

Oxley & Goldburn Insurance, Inc., 204 Monroe St., Ste. 210, Rockville, MD 20850, had its application for an insurance license denied for 31 days. This action was taken based on

allegations of failing to disclose an administrative action taken by the state of Maryland on a licensing application.

FEBRUARY 17 9

The Definition of a

"Good " Producer

Reprinted with permission from The Pipeline, published

by Agency Consulting Group Cherry Valley, New Jersey (800) 779-2430.

Every agency struggling with growth has asked us to define what a producer should do and how much production should be considered “strong” vs. mediocre.

Of course that question is much more complex than the mere search for a definition because there are so many variables that exist to make the same producer “good” under some circumstances and close to termination in other circumstances.

We have clients that will put producers on probation if they don’t generate $50,000 of growth (that’s new net of lost) business each year. We have other clients that are happy as larks for their producers to generate $10,000 to $25,000 of new business a year. We have clients that count growth in terms of customer count with commissions only important to the budget and to compensation arrangements. We have other clients who can’t even define how many customers their producers sell or service from one year to the next.

Yet in each case, the agencies define their producers as strong, weak and mediocre based on totally different criteria.

Here are some normal differences:

Geography – Do you expect the same level of activity, sales, account size and overall revenue from a strong producer in the rural Midwest as you would from a producer in a major metropolitan area?

Mix of Business – If an agency’s mix of business is personal lines and small commercial lines and has the carriers to support that mix would you expect a producer to be as productive as if the agency’s mix was primarily medium and large commercial accounts?

Producer’s stage in life - Would you expect a producer

Since 1878

in his sixties with a large book of business (however you define large) to service to be measured against a 30 year old with little existing business, a growing family and debts to support?

These are just three examples in which geography, the makeup of the agency and the producer’s situation makes the term “good Producer” apply differently in different situations.

BUT THERE ARE CERTAIN TRAITS THAT CAN BE ESTABLISHED TO LABEL A PRODUCER AS STRONG OR WEAK REGARDLESS OF THE AGENCY, TERRITORY OR OTHER DIFFERENCES IN CONDITION:

1. Activity – a good producer is out of the office visiting clients and/or prospects more than he is in the office.

2. Growth – a good producer will grow the agency’s customer base every year. We know that commissions grow and shrink with the insurance economy and rates. But customer count separates the average producer from the good producer. Good producers count their progress by their NET CUSTOMER COUNT.

3. Referrals – a good producer gets referrals. Customers who like and trust the producer will refer their friends naturally. But even if the customers don’t refer customers naturally, the good producer will ask for referrals – and get them.

A good producer is not embarrassed to ask for referrals.

So the next time someone asks you if you are a (or if your agency has) good producers, look at yourself and at your other producers by these three standards.

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FEBRUARY 17 11

Insurance Agents Claim Examples

E&O

• An existing client informed his agent that he wanted to change the named insured on his policy to a corporation that he was in the process of forming. The agent failed to ask the client if he and his wife were retaining personal ownership of the building which housed the business after the change to the corporate entity. The agent also failed to name the client individually on the policy, thereby exposing the client to personal liability outside the exclusive remedy of worker’s compensation for an employee of the new corporation who suffered a premises-related injury.

These failures created an agent E&O exposure when the client incurred liability which would have been covered by the policy had the agent included the individual client as an additional named insured.

• An insured filed a first-party claim for damages suffered due to a break-in at his store. The insured’s carrier denied the claim based on misrepresentation in the application.

The carrier alleged that the insured had not disclosed previous theft losses from the business and filed suit to void the policy ab initio. The insured maintained that he had informed the agent of prior break-ins when he applied and therefore filed a third-party complaint against the agent. Among other claims, the allegations against the agent included negligent misrepresentation, fraud, breach of implied contract and breach of fiduciary duty. The client also sought punitive damages and a declaration that the policy was valid at the time of the loss and provided coverage for the damages sustained.

• An insured filed a first-party claim for damages suffered due to total loss in a house fire. The insured had signed the insurance application on June 26th, but the agent did not forward the application to the carrier until August 12 FEBRUARY 17

5th — the date of loss. The Carrier refused to pay the loss and maintained that if the application had been filed on a timely basis at the time of its execution, it would have been rejected. The insured filed an E&O claim against the agent for failure to procure insurance, seeking damages in the amount of the loss.

• A contractor met with the agent to obtain a policy which covered all liability loss exposures arising out of his operations -- primarily carpentry, remodeling and limited roofing. After policy issuance and a number of renewals, an employee of the contractor was injured on the job.

While the employee was covered under the worker’s compensation program, he also filed a claim against the contractor for intentional tort. The contractor alleged that the agent had represented that the insurance coverages would specifically protect him from all potential employee losses and that the policy would provide complete coverage for all employee and customer liability. The agent faced an E&O exposure for his alleged representations to the contractor in the course of policy procurement.

• Agent wrote a Homeowner policy through ABC Fire Insurance Company using cost guides from two other carriers in error. The agent then used room count instead of square footage in premium calculation, ultimately advising the insured that he could not obtain guaranteed replacement cost. Based upon this representation, the insured obtained dwelling coverage, related structures, personal property and loss of use. A subsequent house fire resulted in a total loss. The policyholder hired counsel who specialized in insurance bad faith, fire insurance, property insurance coverage and insurance law to bring claims against the agent due to the agent’s errors.

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FEBRUARY 17 13 12/27/16 3:28 PM

& Agent's questions about

Errors & Omissions,

and how E&O losses can be prevented.

By Mary LaPorte, CPCU, CIC, LIC, CPIA

Q

Agent’s questions about Errors and Omissions, and how E&O I just attended an E&O class, and they told us about On the homeowners side, there are several areas that losses can be prevented.

how important it is to use a checklist when writing should be addressed. If the home located in a homenew business Personalan Lines.

Over the years, our told owners association they may itneed loss assessment I just for attended E&O class, and they us about how important is to use a agency has had a number of different checklists but we coverage.

If your insured has hearing aids, checklist when writing new business for Personal Lines. Over the years, ourdentures or just don't use them any more.

The biggest is checklists other expensive medical aids, they may any benefit from agency has had a number of reason different but we just don’t use them that all new businessreason is typically entered into scheduling them.

Certain directly "toys" or into hobbies more.

The biggest is that alldirectly new business is typically entered themay require the carrier's system on line. A lot of the information on inland marine or liability coverage. On the auto side, carrier’s system on line. A lot of the information on the checklist is redundant, or we don’t the checklist is redundant, or we don't need it to get a you should clarify how each vehicle is titled or whose need it to get a policy issued. It is a waste of time to fill the checklist out by hand, then policy issued. It is a waste of time to fill the checklist name they are leased in. If your customer has another transfer the information into the carrier’s system. After going to the class I started to out by hand, then transfer the information into the carauto available or furnished for their regular use, a question our procedure.

Do you feel that a checklist is really needed today? rier's system. After going to the class I started to quessimple endorsement will provide excess liability coverLaura, Michigan tion or procedure. Do you feel that a checklist is really age for that vehicle. There are a lot of areas we should needed today? discuss with our customers which go outside simply Laura, many times when we attend an E&O class, it is tempting to dismiss a lot Laura, Michigan completing an application or quote.

Q:

A:

A

of what we hear. The fact that someone continues to think about what they have mention that much of the information in you older heard in class is the sign of a conscientious You agent. checklists duplicates what must be put in the carrier's

Laura, times attend an E&O it sure we have “covered all the bases” with The bestmany reason to when use awecheckkkist is toclass, make system. How about designing your own "supplemental" tempting to Even dismissif ayou lot ofhave what been we hear.

The fact theis customer. selling insurance for many it the is still to which are checklist, which years, asks only extraeasy questions that someone continues to think about what they have forget something. A great number of of E&O claims result from failure to recommend not part of the quoting or application process? Take a heard in class is the sign of a conscientious agent. needed coverages. A checklist helps us uncover exposures solutions to address Personal and Linesoffer checklist you already have and cross out The best reason to use a checklist is to make sure we those exposures. When we enter a new piece of business intothat theare carrier’s system, weremaining are any parts redundant.

Use the queshave "covered all only the bases" with the customer. tions torequired create your checklist. This required to enter the minimum amountEven of information to own get supplemental a policy issued. if you have insurance many years, it is could provide valuable over and above the Although youbeen are selling able to includefor additional endorsements if needed, howinformation do you discover still easy to forget something. A great number of E&O basic information needed to issue a policy. that your customer needs a particular addition or amendment of coverage? claims result from failure to recommend needed cover-

Today, our Personal Lines customers are involved in a Onages. the Ahomeowners there exposures are several checklist helpsside, us uncover and areas offer that should be addressed. If the home variety of activities and living situations which create located in a association maya need loss assessment coverage. If your solutions to homeowners address those exposures.

Thenthey we enter new piece of business into the carrier's system, we are required to enter only the minimum amount of information required to get a policy issued. Although you are able to include additional endorsements if needed, how do you discover that your customer needs a particular addition or amendment of coverage?

14 FEBRUARY 17

additional exposures. More than ever, we need to be diligent and use tools like checklists to address all of the coverages needed.

Mary LaPorte is a consultant and educator with a strong background in Errors & Omissions loss prevention. Forward your E&O questions to marylp@lpinsuranceconsult.com.



I realize the importance of political contributions to the future of the Professional Insurance Agents of Wisconsin and our customers. I want to be part of the process leading to success in achieving PIA’s goals in the Wisconsin Legislative arena. Please hold my contribution as a deposit in the PIA Legislative Conduit account to be used at my direction. I understand that I will be contacted in the future, by telephone, email or direct mail, to authorize the use of these contributions. I will be asked to respond with my signature on appropriate authorization forms.

Name:___________________________________________________________________________________ (Please Print)

Primary Employer:________________________________________________________________________ (required to disburse any contributions greater than $100, by Wisconsin Law)

Business Address:_____________________________ City:_____________ State:_______ Zip:__________ Home address:________________________________ City:____________ State:_______ Zip:___________ Business phone:______________________________ Home phone:_________________________________ Email address:_____________________________________ Contribution amount:____________________ Credit Card Payment Name on card:_________________________________ Signature:__________________________________ Amount:______________ Card Number:_________________________________ Exp. Date:____________ Billing address on card:_____________________________________________________________________ City

State

Zip

Contributions are NOT tax deductible for income tax purposes. Donations must be made from Personal accounts only.

NO Corporate or Business Checks or Credit Cards accepted Return to: PIAW Legislative Conduit Account PIA of Wisconsin, Inc. ● 6401 Odana Rd. ● Madison, WI 53719 Fax: 608-274-8195 ● www.piaw.org ● Email: rvonhaden@piaw.org

FEBRUARY 17 15

Be a Customer Service

Contender

by Kate Zabriskie

Why Most Customer Service Isn’t as Good as It Could (or Should) Be and What You Can Do About It.

"We need to improve our customer service.

Get someone in here for an afternoon to fix these people."

"We're busy. I may be able to spare a couple of people for a few hours. Beyond that, we don't have time for training."

"I don't get it. I send them to training with an expert consultant, and they seem as if they're learning something. Then, after a few days, it's back to the same old stuff. I want to scream."

Too often, organizations recognize they have a service issue, yet their efforts to address shortcomings fail to solve the problem. In the worst cases, customer service initiatives backfire and motivate people to do less.

So, what’s going on? Usually, a few things.

Typically, there’s an organizational mindset misalignment, a lack of commitment from the top, an absence of recognition for giving great service, or a combination of all three.

In contrast, legendary service organizations have a service mindset, commitment, and reward great performance.

2. They design processes with the customer’s best interest in mind. Think about that well-known airline, so full of love for its customers, it allows them to cancel flights for full credit on a future trip. Clearly they believe most their customers won’t book travel they don’t need, and those who must make a change will eventually choose to fly with them again.

3. They hire people who genuinely love service and are proud to live the brand.

4. They constantly retool the customer experience because they know what worked well in earlier years is long overdue for a makeover.

Service Mindset Great service companies eat, sleep, and breathe extraordinary service. They don’t pull people off the phones for a few hours and expect magic.

1. They have a service mission, and it does more than sit in a frame on a wall in some conference room. It’s top-ofmind throughout the organization. People know it and live it through their daily interactions with customers and each other.

16 FEBRUARY 17

5. They educate, educate, and then they educate some more. They want to make sure that the people who represent the brand understand what the brand experience is and how to deliver it.

Commitment Great service companies involve everyone in their service culture and improvement efforts. They invest in their employees and trust them to do what’s right.

1. Their management team models service-centric behavior and holds others accountable for doing the same.

2. Their leaders participate in education efforts, often introducing workshops, wrapping them up, and actively taking part during sessions.

3. They commit to and believe in their staff. Because they’ve chosen their employees well and trained them appropriately, they treat staff members as the adults they are and give them latitude when solving service problems.

Reward Great service companies reward service-centric behavior.

They don’t ignore great work or punish people for taking initiative.

1. They value their employees and recognize that without them there is no customer service.

2. They reward employees by trusting them to do what’s right.

3. They encourage people to find new ways of solving problems.

4. They recognize that a paycheck alone is not enough.

When thinking about everything that the greats do, it’s easy to get discouraged or think your business or department will never achieve true service success. The good news is you’re wrong. While it won’t happen overnight, you can take a page or two from the masters to elevate your approach.

What to Do When You Realize You’re Not Great 1. Start by thinking about your purpose. What is it that your organization does? Articulate your purpose. Everyone needs to understand your core reason for existing and how the actions they take related to service support that mission.

2. Next, think about your processes and how customers interact with you. Do you have your customers’ best interests at heart? If not, what changes can you make to remedy those shortcomings? This step has an added benefit. When

im

Insurance Marketing Partners

InsuranceMarketingPartners.com

your organization’s and your customers’ goals are in harmony, you will have happier customers. Furthermore, it is less likely your people will find themselves dealing with the unhappy, disappointed, or disgruntled.

3. Model what you want to see. People work for people. If you supervise others, they are watching and learning from you. If you are disengaged, they probably are too. On the other hand, if you embody the spirit of service, you probably see elements of yourself in their performance.

4. Teach your staff what to do and how to do it. You can’t expect people to deliver great service if they don’t know how. Furthermore, you can’t expect them to care if no one at the top does. Take employee development seriously.

This means being a champion for training, participating in education, and coaching for new skills after the fact.

Eventually, your people will be able to do more, will make better choices, and solve problems more imaginatively.

5. Hire for service skills. The next time you have an opening, think about what makes someone great at service in your organization and seek those attributes. Don’t settle. You’ll be sorry later.

6. Reward. Even if you have no budget, you can reward employees for giving great service. Start with a sincere “Thank you.” Heartfelt appreciation can work wonders.

7. Finally, put your continuous-improvement hat on.

Systematically evaluate where you’ve been, where you are, and where you are going.

None of these steps is necessarily hard. The trick is to take them. In other words, to win the service game, you’ve got to be in it. What will you do better today?

Kate Zabriskie is the president of Business Training Works, Inc., a Maryland-based talent development firm. She and her team help businesses establish customer service strategies and train their people to live up to what’s promised. For more information, visit www.businesstrainingworks.com.

A partnership to help build your agency’s book of business Call: 715-797-2432

Branding | Marketing Strategy Client Communication | Custom Content Training and Analysis FEBRUARY 17 17

ers most there when it matters most there when it matters most there when it matters most

Direction

Sheboygan Falls Insurance Company, as part of Donegal Insurance Group, remains committed to our chosen direction for distribution — the independent agency system.

Unlike many others in the industry, Sheboygan Falls has no interest in any other distribution channel.

Instead, we focus our energy on consistently delivering greater value to our agents.

To learn more visit www.sheboyganfallsinsurance.com or call Connie Jones at 800-242-7698 ext. 2800.

Staying true to our chosen course of supporting the independent agency system… another way Sheboygan Falls is “There When It Matters Most.”

Sheboygan Falls Trade Pub Ad - Direction - Half Page 2C.indd 1

3/25/16 1:45 PM

Help Build Your Family’s Financial Future With

PIA Trust Insurance Plans INSURANCE PLANS DESIGNED WITH LOCAL AGENTS IN MIND As a PIA Member* serving Main Street America, you and your employees have access to a variety of highquality, competitively priced insurance plans.

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18 FEBRUARY 17

Attorney ROBERT PROCTER

AXLEY INSURANCE

Attorney TIM FENNER

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ATTORNEYS

Providing timely & cost-effective legal services for all types of insurance industry issues.

• Insurance Agency Ownership & Operations • CSR & Producer Employment Matters • Appearances Before OCI

MADISON, WI 53703 | WAUKESHA, WI 53186

• Drafting Contracts • Mergers & Acquisitions • Plans of Perpetuation & Succession • E&O Consultations

800-368-5661 | LAW@AXLEY.COM | AXLEY.COM

FEBRUARY 17 19

Why Doing A

Good Job

by John Graham Won't Get You Anywhere The Skillset That Puts You At The Head Of The Pack

Customers buy when they get ready, from those who make themselves memorable.

If you think doing a good job is what it takes to get to the head of the pack, you’re naïve, confused, delusional, or all three. Take your pick.

And here’s why. doing a good job is the starting point, the baseline. It’s what’s expected. There are plenty of people doing a good, even a great job. But they’re dead in the water.

They aren’t going anywhere, other than out the door in the next restructure.

Tough words, but they don’t need to be the last words. Here’s what to do: 1. Drop the idea that doing a good job is good enough.

2. Next, stop dwelling on what your company should do for you. It will only make you angry, resentful, and useless.

3. Now that you’re rid of the junk that’s in your way, focus on getting to the head of the pack.

20 FEBRUARY 17

4. Develop a skillset for solving problems, where you will get attention.

Skill #1 . Make stuff make sense. Very little of what passes as communication in business—emails, letters, memos, reports, webpages, proposals, ads, or presentations—makes sense to those who can benefit from their message. Or, to put it bluntly, very few people make sense even with 140 characters.

What causes this incredible communication failure that ends in massive misunderstanding, wastes time and money, crushes productivity, and drives customers bonkers?

The answer is that most messaging starts with everyone asking, “Will what I’m saying pass the boss test?” And it doesn’t take long to learn what’s acceptable and what isn’t. When people think and write this way, what comes out is gobbledygook, mealy-mouthed nonsense.

Now, the good news. If you rid your mind of what’s acceptable, you can make sense to your audience by moving the focus to them—whether they’re co-workers, vendors, or those you want to do business with. Picture these people looking over your shoulder. Ask yourself what they want to hear.

Skill #4. Be a magnet for the tough jobs. Having spent de-

If you do it, you’ll be in demand—and maybe even named “Director of Making Sense,” or, better yet, the boss.

If you want to get to the head of the pack be a magnet for tough, problematic, jobs that need fixing, those that others run and hide from. Companies want people who want to make a difference, a contribution, not those who mark the years and the days on their calendar.

Skill #2. Get out of yourself. Is this really a skill? You bet it is, although most people don’t see it that way. They think if they take the right classes, get the right degrees, and have the right experience, they’re all set. They can do any or all of that, but it won’t be enough to get to the head of the pack.

We beat up on Millennials for being too self-centered—obsessed with selfies and constant texting. Besides, we value talking to each other when dining out. Maybe we’re just jealous and feel left behind, overrun, and out of place with these 79 million young adults. Could it be that we’re the ones who feel entitled and expect accommodation just because we’ve been in line longer?

We put the brakes on our future unless we get out of ourselves.

Skill #3. Let your mind run wild. Even though such an idea is a treasonable offense in some companies, it’s the mental engine that stimulates thinking, fosters dialogue, and most of all drives creativity.

For example, letting the mind roam is the cure for “Solution Think,” the disease that bedevils marketing and salespeople, in particular. Their programs are always firm and overflowing with unwavering certainty as to what customers want and what will work and what won’t. And before long, they’re gone.

What’s helpful is contrarian thinking that challenges what “sounds good” and what others want to hear. If that had happened at Samsung, someone might have said, “The Note 7 isn’t ready for market.” Would the outcome be different if minds could have run wild?

cades taking on tough assignments across the world for AT&T, Randall Stephenson was chosen by CEO Edward Whitacre, Jr, as his successor. “This one looks easy,” Stephenson said to Whitaker, who replied, “Why do you think I chose you?”

Skill #5. Make yourself memorable. Doing a good job is like living in the shadows. You’re just another invisible. To change that and start moving to the head of the pack, make yourself memorable.

That's what one couple learned about marketing and sales when looking for a second home. The first agent was enthusiastic and lined up a couple of showings quickly, but neither was of interest. Promising to get back to them with other properties, she went “offline.”

They contacted another agent, who asked questions and sends them a weekly eBulletin featuring an in-depth description of only one property that’s based on their profile. Not long ago, the husband asked his wife, “What was the name of that first agent?” Thinking for a moment, she said, “I don’t remember.”

Customers buy when they get ready, from those who make themselves memorable.

There are many helpful skillsets and some can help move you forward, at least for a while. But there’s only one that can take you to the head of the pack.

John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of “Magnet Marketing,” and publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@grahamcomm. com, 617-774-9759 or johnrgraham.com.

BUSINESS We do not stop working because we are old; we grow old because we stop working.

FEBRUARY 17 21

education

STAND OUT! Set yourself apart with the CPIA designation.

The PIA of Wisconsin is a proud sponsor of the Certified Professional Insurance Agent (CPIA) professional designation program. These three, one-day workshops teach practical "before", "during", and "after" sale techniques for insurance producers, sales managers, account managers and company marketing representatives. Completion rule, 3 years from first course. No exams. You do not need to commit to all three to attend one.

Participants leave with ideas that will produce increased sales results immediately. In fact, they are guaranteed: Implement the principles covered in these sessions and experience a 20% increase in personal production within six months, or your registration fee will be refunded!

To maintain the CPIA designation: fulfill a bi-annual update by attending one of the three core seminars, an Advanced Insurance Success Seminar (October 19, 2017 in Fond du Lac), a Pro-to-Pro Retreat, or maintain an active Level 2 or Level 3 membership in the AIMS Society. The CPIA designation is approved by Utica Mutual as part of the premium discount program.

The AIMS Society is a national organization dedicated to providing interactive marketing and sales training, ongoing resources and networking opportunities to insurance professionals. www.aimssociety.org No Test. Approved for 7 Wisconsin CE credits.

While it is not required, it is recommended courses are taken in order.

CPIA 1 - Position for Success

CPIA 2 - Implement for Success

During this program, participants are encouraged to focus on internal and external factors affecting the development of effective business development plans.

Factors discussed include a review of the state of the insurance marketplace; analysis of competitive pressures; necessary insurance carrier underwriting criteria; and consumer expectations and understanding.

During this session participants will be provided with specific tools for analyzing consumer needs; will learn to utilize risk identification techniques to gather pertinent prospect information; will develop skills necessary to assimilate information gathered into a customized protection program; and will participate in exercises designed to promote effective delivery of proven solutions.

WI CE Course # 65338

WI CE Course # 65340

CPIA 3 - Sustain Success WI CE Course # 65339

This program focuses on fulfilling the implied promises contained in the insuring agreement. Students will review methods of providing evidence of insurance coverage; will discuss policies and procedures for controlling E&O including policy review and delivery, endorse-ments, claimsprocessing, and handling of client complaints. This course includes a review of the Professional Expectations; the Law of Agency; and Legal and Ethical Standards.

Course Schedule 8:30 – 4:00 Lunch On Your Own 12:00 – 12:45 Registration Fee per Seminar: Includes Seminar Materials, Coffee a.m. & Soda p.m.  PIAW Member $165.00 or $172.00 includes WI CE fee  Non Member $200.00 or $207.00 includes WI CE fee

CPIA 1 – July 18, 2017 Wisconsin Mutual Ins. Co. Madison, WI 22 FEBRUARY 17

CPIA 2 – July 19, 2017 Radisson Paper Valley Appleton, WI

Register: www.piaw.org 1-800-261-7429

CPIA 3 – July 20, 2017 West Bend Mutual Ins. Co. West Bend, WI

J.P. Morgan was interested in buying a pear pin. The jeweler he approached found the perfect pin and sent it in a box to Morgan with a bill for $5,000. The following day the box was returned with a note from Morgan: "I like the pin, but I don't like the price. If you will accept the enclosed check for $4,000, please send back the box which is sealed with the seal unbroken." The enraged jeweler returned the check to the messenger and dismissed him in anger. He opened the box to remove the pin only to find that it had already been replaced with a check from Morgan for $5,000.

Choose 5 of 9 to improve your 9 to 5.

CISR EDUCATION FOR INSURANCE & RISK MANAGEMENT PROFESSIONALS

It still takes 5 courses to earn a CISR designation but now you have the flexibility of 9 course options. This allows you to focus on what’s important to you. We understand not everyone learns the same way or even at the same pace, so we offer courses in the classroom, online and in-house.

Find out how CISR can improve your 9 to 5. Call or visit us on the web today.

• • • • • • • • •

Commercial Casualty I Commercial Casualty II Insuring Commercial Property Insuring Personal Auto Exposures Insuring Personal Residential Property Personal Lines Miscellaneous Agency Operations Elements of Risk Management Life & Health Essentials

Step Up To Elite Status CISR Elite, That is.

For CISRs who aspire to be more-who seek to distinguish themselves as Elite.

When you love what you do, and want to be the best, It’s time to step up. it time to Become a CISR Elite.

www.piaw.org 800-261-7429

www.piaw.org 1-800-261-7429 FEBRUARY 17 23

education

NEGOTIATION AT ITS BEST

education

Certified Insurance Counselor Each Approved for 20 Wisconsin CE Credits COMMERCIAL CASUALTY – REVISED!

agency management

February 15-17, 2017 Crowne Plaza—Madison, WI 888-233-9527 $111 PIA room rate through 1/15/17

April 26-28, 2017 Radisson Paper Valley Hotel—Appleton, WI 920-733-8000 $102 PIA room rate through 3/28/17 Includes Breakfast

• COMMERCIAL property coverage forms & endorsements Kevin Amrhein, CIC • COMMERCIAL PROPERTY CAUSES OF LOSS FORMS • EQUIPMENT BREAKDOWN Jacklyn Reindl, CIC, CPIA, CPIW

• HUMAN RESOURCES • AGENCY PRODUCTIVITY & EFFECTIVENESS Steve Anderson, CIC

• TIME ELEMENT COVERAGES John Dismukes, CIC, CPCU, AAI, AIS

• legal & ethical responsibilities John Dismukes, CIC, CPCU, AAI, AIS

WI CE Course #69155 4 of 20 are Ethics, Utica Approved

WI CE Course #1012423

Day One: 8:00 – 5:15

• AGENCY ORGANIZATIONS • UNDERSTANDING & MANAGING FINANCIAL STRENGTH • AGENCY PLANNING Mary LaPorte, CIC, CPCU, LIC, CPIA

Day Two: 8:00 – 5:00

Day Three: 8:00 – noon, Optional Exam 2:00 – 4:00

$405.00 per institute. Register at www.piaw.org or call 800-261-7429.

Utica

Gives You the Credit You Deserve!

The following PIAW education classes are approved for the Utica premium credit.

• Any CIC Update • CIC Agency Management • CISR Agency Operations • Dynamics of Service • Select PIAW Webinars • PIAW Conducted Ethics and E&O Seminars (classroom or in house) To register online and view upcoming CE courses visit www.piaw.org

24 FEBRUARY 17

Please contact Heidi Hodel, CIC, CRIS, Member Benefits Coordinator hhodel@piaw.org or 1-800-261-7429 to find out how you can benefit from Utica’s E&O Loss Control Program.

Open to Anyone & Everyone ! www.piaw.org

For The New Employee - No CE 6-8 Week Virtual Classroom •

• • •

New Agency Employee Orientation Delivering Quality Service Personal Lines Coverage Basics Commercial Lines Coverage Basics

Pre-Licensing Education Webinars: 2-3 WI CE, No Exam, No Proctor •

Over 20 Topics

Hot Topics: 4 WI CE • • •

Variety of Coverage Topics Ethics Flood

All 9 CISR Courses – 8 WI CE All 5 CIC Institutes – 20 WI CE

CIC Ruble seminars Exciting update options, they fill up quickly.

March 23 & 24 | Graduate| Hilton Garden – Milwaukee, WI* May 24 & 25 | Graduate | Crowne Plaza – Madison, WI* August 21 & 22 | Cyber Risk | Crowne Plaza Airport – Milwaukee, WI 16 WI CE (*Includes 4 optional Ethics) visit www.piaw.org or call PIA at 1-800-261-7429

On-Line Insurance Pre-licensing Education

Exam FX

www.piaw.org

Online Training & Assessment

Pass your insurance test fast.

Start producing faster.

Insurance and Securities Pre-license Training FEBRUARY 17 25

education

O n -L i n e e d u c a t i O n

education

New Topics in 2017! Each Approved for 3 WI CE Credits. Live. No Test. No Proctor.

Visit the Education tab at piaw.org for a complete list of topics, descriptions, webinar demo and registration.

Several approved for Utica credit. Ethics is offered each month.

Fee per Webinar: $55 PIAW Member, $70 Non Member – Includes WI CE fees.

February 2017 Webinar Schedule TITLE & WI CE

DATE

TIME (CST)

INSTRUCTOR

Current Trends & Changes: The Homeowners & Auto Marketplace 3 WI CE # 1012431

2/1

12-3p

Kym Martell, CRM, CIC, CRIS, AAI

Street Level Ethics 3 WI Ethics CE # 1012437 Utica Approved Personal Lines Complications: Because “Simple” is Just Too Darn Easy 3 CE # 71017

2/2

12-3p

Chris Amrhein, CIC

2/7

12-3p

Kevin Amrhein, CIC

Health Insurance: Myths, Truths and Solutions 3 CE # 1011195

2/9

12-3p

Karin Klaassen, CLU, LUTCF

Certificates and Additional Insureds: Navigating the Maze 3 CE # 1011192

2/13

12-3p

Catherine Trischan, CPCU, CRM, CIC, ARM, AU, AAI, CRIS, MLIS

Time Element for Commercial Risks 3 CE # 1011193

2/14

8-11a

Catherine Trischan, CPCU, CRM, CIC, ARM, AU, AAI, CRIS, MLIS

How to Be the Agent Advocate at Claim Time 3 CE # 1010878, Utica Approved

2/15

12-3p

Chris Amrhein, AAI

Innovations in Long-Term Care Funding with Life Insurance 3 CE # 1012433

2/21

12-3p

Jerry Rhinehart, CIC, CLU, ChFC, RHU

E&O Loss Prevention 3 CE # 1010749, Utica Approved

2/22

8-11a

Becky Lathrop, CIC, CPIA

And the CHAOS Continues: The Evolving World of Contracts, Hold Harmless, Add. Insureds and Other Stuff 3 CE # 1011189

2/24

8-11a

Jerry Hargrove, J.D., CIC, CPIA, SCLA, FCLA, PICS, LICS

Flood Insurance – FEMA Approved 3 CE # 1011252

2/27

1-4p

Jerry Hargrove, J.D., CIC, CPIA, SCLA, FCLA, PICS, LICS

Register online at piaw.org or call 1-800-261-7429.

Contact Brenda for in-house webinar opportunities. bsteinbach@piaw.org

26 FEBRUARY 17

education

certified insurance service representative Open to Anyone!

7 WI CE Credits New Course #69332

INSURING COMMERCIAL PROPERTY

Commercial property insurance is one of your business customers’ greatest concerns. You’ll improve your cross-selling abilities with up-to-date knowledge of commercial property coverage, and reduce E&O exposures. This course gives you the skills to address these issues with greater ease and confidence.

• • • • •

Fundamentals of Commercial Property Insurance Building and Personal Property Coverage Form Causes of Loss Forms Basics of Time Element Insurance Basics of Commercial Inland Marine Insurance

March 8 • Rothschild March 9 • Madison

CLASS SCHEDULE Instruction Group Lunch

Patti Gardner CIC, CRM, CPCU

Optional Exam

8:00 a.m. – 3:45 p.m.

12:00 p.m. – 12:45 p.m.

$170 Per Course Includes Lunch

4:15 p.m. – 5:15 p.m.

Register at www.piaw.org or call 800-261-7429

Certified Insurance Service Representative Open to Anyone!

7 WI CE Credits, 1 of 7 is Ethics, Course #69356

AGENCY OPERATIONS

This course helps make you an indispensable team player in any insurance agency. As you work with colleagues and customers, you will do so with enhanced self-assurance and a greater understanding of the dynamics within insurance organizations. Also, understanding how agencies operate is essential training for both insurance agency and company personnel.

• • • • • •

Legal & Ethical Requirements The Insurance Agency, Industry and Marketplace Communication Agency Workflow APRIL 25 • APPLETON Account Management Errors & Omissions

CLASS SCHEDULE Instruction John Dismukes CIC, CPCU, AAI, AIS

Group Lunch Optional Exam

8:00 a.m. – 3:45 p.m.

12:00 p.m. – 12:45 p.m.

$170 Per Course Includes Lunch

4:15 p.m. – 5:15 p.m.

Register at www.piaw.org or call 800-261-7429

FEBRUARY 17 27

education

NEW CPIAs

Congratulations to Wisconsin's newest designees from the December 2016 workshop in Madison. l to r: Tom Budzisz, Boyd Thiel, Carol Tachon, John Klinzing, Nick Arnoldy, Sue Marotz, Victoria Hanson, Brenda Steinbach (PIA), Michael Osborne, Eric Sam, Becky Lathrop (CPIA faculty).

28 FEBRUARY 17

Contact Brenda to become a sponsor of this fantastic sales education series. bsteinbach@piaw.org

CPIA Implement for Success — December 2016

FEBRUARY 17 29

education

2016 CPIA Scholarship Sponsors — Thank You!

education

PEOPLE WHO EARNED THIS ALSO EARNED MORE

30,900 MORE OF THESE

PER YEAR.

If you’re looking to jump start a new career or make more with the one you are in, education is your best investment. Now, more than ever, it is important to invest in your greatest assets—yourself and your people. According to The National Alliance Producer Profile, commercial lines producers with the Certified Insurance Counselor (CIC) designation earn 30% more than those without the designation. To learn more about the CIC Program, call or visit us on the web.

The most successful training programs for insurance professionals

30 FEBRUARY 17

Register at www.piaw.org or call 1-800-261-7429

“Good People to Know”

BECOME A BWO ASSOCIATE

proudly building relationships throughout Wisconsin Find out why many of our industry’s most reputable companies have partnered with BWO, an insurance group proudly serving all of Wisconsin. We are continually investing in our independent agents to better serve you and your clients, NO MATTER WHERE YOU ARE LOCATED. We recognize that our mutual success is based on how hard we are working for you – providing the tools, products and support to help you succeed.

BUDZISZ WRUCK OSBORNE

INSURANCE GROUP, LLC

Contact: Tom Budzisz at tom@bwoinsurance.com 414-768-8100 • 800-924-6155 • Fax: 414-768-8110 2111 E. Rawson Ave., Oak Creek, WI 53154-0065

www.bwoinsurance. com

agents enjoy...

• 100% ownership • Contingency participation • Generous commission • Comparative rater • Hawksoft management system • Agency perpetuation • No non-compete • No monthly membership fee • No joining fee

companies we represent...

AAA Wisconsin, Acuity, Allied Insurance, Austin Mutual Insurance, Auto-Owners Insurance, Badger Mutual, Dairyland Auto, Ellington Mutual, Foremost, General Casualty, GMIC, Hagerty, Hanover, The Hartford, Hastings Mutual, IMT, Integrity, Kemper Preferred, Met Life, Mt. Morris Mutual, Partners Mutual, Pekin, Philadephia Insurance Companies, Progressive, Safeco, Secura, Society, State Auto, Travelers, Victoria, West Bend Mutual

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BUSINESS Worrying about what's right is always more important than worrying about who's right.

FEBRUARY 17 31

Priorities On Opening Day

Wisconsin STRONG Since 1931 Partners Mutual Insurance Company has built lasting relationships with independent agents across the state. We are committed to the independent agency system as the only means to deliver our products and work hand-in-hand to help our agencies grow profitably.

For information about becoming a Partners Mutual Insurance Agent please contact Brian Martin at 262.432.3439; Martin.Brian@PartnersMutual.com; Mike Ottman at 262.432.3418; Ottman.Michael@PartnersMutual.com; or Charles Becker at Becker.Charles@PartnersMutual.com or 262.432.3484.

PMIC_3-625x5_PIA_1216.indd 1

32 FEBRUARY 17

12/13/2016 12:31:09 PM

On Opening Day at the baseball stadium, a woman sat behind home plate next to the only empty seat in the place. During the seventh-inning stretch, a man in the row behind her leaned forward to ask if she was waiting for someone.

"It's my husband's seat," the woman said. "We bought these tickets six months ago."

Why isn't he here?"

"Well . . . he died."

"Oh, I'm so sorry!" the man apologized.

"And you couldn't find a friend to come with you?"

"Oh, no, they're all at the funeral."

Don’t just insure. Assist.

®

Help clients through the stress of an accident with AAA Accident Assist .

One call brings AAA roadside assistance to their crash site, sets the stage for hassle-free repairs, and reserves a rental car for their immediate use.

And you made it happen.

Contact Heidi Nienow today to learn more.

(608) 828-2614

hqnienow@AAAwisconsin.com

It’s just one of the powerful tools AAA Independent Insurance Agents enjoy.

IE-0011

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

FEBRUARY 17 33

The Aging

Workforce

Attract and retain new talent

by Dan Thomas, Todd DeStefano and Vicki Fendley, PwC

In the 1988 film Bull Durham, Nuke LaLoosh, a young pitcher with great talent but lacking professionalism and maturity, embarks on his professional career with the minor league Durham Bulls. Crash Davis, an experienced though aging catcher, is responsible for grooming LaLoosh—teaching him the finer points of baseball and how to think and comport himself like a professional.

Despite the difficulties along the way, eventually Davis’ mentoring is effective and the young pitcher is poised to go on to bigger and better things.

There are many similarities between the insurance industry and “America’s pastime,” not the least of which is how to manage and solve the challenges of maintaining a pipeline of young talent. For example, professional base34 FEBRUARY 17

ball teams have invested significantly in data analytics to operate more economically and efficiently with existing resources. Utilizing similar strategies, the insurance industry can build an effective strategy for long-term success.

The insurance industry is facing a looming crisis: a rapidly aging workforce. According to the U.S. Bureau of Labor Statistics, by 2018, a quarter of insurance industry employees will be within five to 10 years of retirement.

By 2025, millennials will comprise 75 percent of the global workforce.1 These workforce changes mirror the demographic shifts in the U.S. population—while the number of Americans age 65 and older leaving the workforce is expected to grow 75 percent by 2050, the expected num-

ber of American workers age 25 to 54 will grow by only 2 percent.

Of note, agencies that utilize eLearning to train talent especially will benefit as:

Most U.S. employers—including those in the insurance industry—are unprepared for the business realities of an aging workforce and face a potentially massive loss of skilled, knowledgeable workers. Professional, independent insurance agencies that effectively recruit, train and develop dedicated future staff and leaders will differentiate themselves and set themselves up for success into the future. Like professional baseball teams, insurers are trying to find ways to maximize existing talent, replenish it and more effectively utilize data analytics to improve functional efficiencies, while continuing efforts to automate routine recurring processes.

•

Millennials will perceive that the agency is on the cutting edge of technology.

•

A customized eLearning program will demonstrate to millennials that an agency values and respects their time and talents, building employee loyalty, dedication and fulfillment.

•

eLearning is customizable and easily keeps pace with the rate at which technology, work procedures and workers develop, making it cost-effective and agile.

Recruit Traditionally, baseball teams have employed scouts who are responsible for finding and evaluating amateur baseball talent.

Human resources recruiters are the scouting departments of the insurance industry. Similar to baseball, in which major league teams can either hire qualified free agents or grow talent organically through the minor league system, insurance recruiters and human resource departments have two options: 1. to hire experienced candidates; or 2. to recruit and develop raw talent through effective recruiting and training programs.

We will focus on the second option in this article.

Effective college campus and entry-level hiring programs are just the first step in growing talent organically. Organic growth can only occur with the development of robust recruiting programs that focus on the following: • Improving the insurance industry brand by showing millennials that insurance isn’t a boring, office-bound industry and highlighting that technical, sales, account management, data analytics and new product development jobs are similar to those in other, more “hip” industries.

Develop A succession management plan that prioritizes leadership development improves retention, builds a solid pipeline of talent and reduces recruiting costs.

Over the last 15 years, many baseball owners have realized that a high payroll does not necessarily result in on-field success. The 2015 World Series champion Kansas City Royals are a prime example of achieving the highest level of success, utilizing a cost-effective approach of developing much of the team’s key talent in its own system and acquiring the rest at generally low to medium cost.

Because top talent clearly is a competitive differentiator, some agencies will define future success by developing deep and enduring organic bench strength—a pipeline of players with the leadership skills to be successful in the big leagues—and most of them will look to outsourcing, predictive analytics and automation to achieve operational efficiencies to help address the challenges of an aging workforce.

Train

For example, shifting back office operations (e.g., claims processing, call centers and mailrooms) to an outsourcing provider can help obviate the need to replace retiring workers. The right outsourcing partners can help agencies create efficiencies, lower costs and enjoy bottom-line savings. Moreover, by consolidating existing and incoming information into standardized-management systems and utilizing advanced analytics to interpret this data, agencies can position themselves, despite having fewer resources, to make better business decisions (much like the Oakland A’s “Moneyball” approach). By making these types of investments, leading carriers can manage and utilize the vast amounts of structured and unstructured data they possess more effectively and increase worker productivity by freeing employees from routine, administrative tasks.

Training new employees, much like training baseball rookies, is critical to retaining talent. Agencies that find ways to deliver cost-effective, interesting and meaningful training in fundamentals, coupled with mentorship programs that pair young employees with experienced ones, will create sustainable leadership pipelines.

Last but not least, insurers that have made meaningful investments in outsourcing, business-process improvement and advanced analytics have created a virtuous cycle in terms of recruiting. Because agencies that are on the cutting edge of business technology are more attractive to millennials, em-

• Educating millennials about the rewarding career paths and long-term employment opportunities available in insurance.

To recruit millennials, agencies must adapt their recruiting strategies by thinking like millennials—leveraging social media and online talent communities in addition to college campus recruiting. Insurers need to be in the best possible position to make talented recruits want to choose their organization.

(continued on page 36) FEBRUARY 17 35

(continued from page 35) ployers not only need fewer employees, they attract higher caliber newcomers.

Solutions To meet the challenges of an aging workforce, prescient insurance carriers, agencies and brokers already are changing how they recruit, train and develop talent. They are modifying policies, creating a more physically inviting workplace and facilitating knowledge transfer to appeal to millennials.

With the impending demographic changes, the need to build a pipeline of new talent is mission critical to the long-term viability of their organizations. Agencies must: •

Recruit effectively by demonstrating that rewarding career paths exist in the insurance industry;

•

Attract and train millennials by utilizing eLearning and pairing new hires with experienced employees to build mentoring relationships; and

•

Build a healthy talent pipeline by developing internal leaders who share their knowledge with younger employees, which will encourage retention among younger employees and ease internal succession planning.

Finally, to survive and even thrive despite a shrinking pool of experienced employees, deploying strategic outsourcing that focuses on complementary capabilities, modernizing business processes and effectively employing advanced analytics can significantly improve efficiencies, reduce costs, foster a focus on the things that really add value to the business and attract the best and the brightest newcomers to the industry workforce.

Thomas is a principal and leader of PwC’s U.S. property/casualty actuarial services practice. He has 28 years of experience spans all p/c lines of business, with an emphasis on workers’ compensation, personal and commercial automobile liability, general liability and professional liability exposures. He can be reached at edward.d.thomas@pwc.com. DeStefano is a director in PwC’s actuarial services practice with 28 years of experience covering a variety of commercial and personal lines, including workers’ compensation, homeowners, long-term care, short- and long-term disability, life insurance and health insurance. He can be reached at todd. destefano@pwc.com. Fendley is a director in PwC’s actuarial services practice with 25 years of experience providing actuarial consulting services to insurers, reinsurers and captive insurance companies as well as corporate entities across various industries, including health care, mining, manufacturing and staffing. She can be reached at vicki.a.fendley@pwc.com.

1

For a detailed look at employment in the insurance industry, see: http://data.bls.

gov/search/query/results?cx=013738036195919377644%3A6ih0hfrgl50&q=insurance +industry+workforce 2

For more on the insurance industry, see: http://www.census.gov/econ/isp/sampler

php?naicscode=52&naicslevel=2 —Reprinted with permission from PIA Management Services Inc.—

36 FEBRUARY 17

HIGHER SOCIAL SECURITY WAGE BASE The wage base for withholding social security tax from wages has increased to $127,000, up from $118,500 in 2016. The federal payroll tax rate remains 7.65%, with social security tax withheld at 6.2%, and Medicare tax withheld at 1.45%. There is no wage base for the 1.45% Medicare tax. Employers withhold that percentage on all wages.

take risks Not long ago, I had dinner with Jim Burke.

We were supporting a "One to One" function for our mutual friend, Ray Chambers, and we got into a discussion about taking risks in business. Jim told me a wonderful story that I would like to share with you: Jim Burke became the head of a new products group at Johnson & Johnson. One of his first products was a children's chest rub. It failed miserably and Jim believed he would be fired when he was called into the chairman's office. However, to his surprise, Mr. Johnson asked if he was the one who just cost the company a lot of money and then added. "Well, I want to congratulate you. If you made a mistake, it means you took a risk, and if we don't take risks, we will never grow. That is what business is all about." Years later Jim Burke became the Chairman of Johnson & Johnson.

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FEBRUARY 17 37

PROFESSIONAL INSURANCE AGENTS OF WISCONSIN, INC.

OFFICERS

DIRECTORS

Mr. Brian MacGillis, CPIA President MacGillis Agency, Inc. W3934 County Highway H PO Box 100 Fredonia, WI 53021-0100 Phone 262-790-0000 Fax 262-790-0004 brian@macgillisinsurance.com Ms. Jodi Cordes, CIC, CRM Vice President A.F. Glass Insurance Center P.O. Box 1149 Lake Geneva, WI 53147 Phone 262-248-5555 Fax 262-248-5544 jcordes@glassinsurancecenter.com Mr. Matt Cranney, CIC, CRM Treasurer M3 Insurance Solutions, Inc. 3133 W Beltline Hwy Madison, WI 53713 Phone 608-273-0655 Fax 608-273-7783 matt.cranney@m3ins.com

February 2017

Mr. Michael Keener, CIC Keener Insurance Solutions, LLC W 175 N11081 Stonewood Dr Ste 105 Germantown, WI Phone 262-293-9144 Fax 262-293-9254 michael@keenersolutions.com

Mr. Rick Clements, LUTCF, MDRT, Past President Clements Ins. Agency, Inc. 317 N 6th St. Wausau, WI 54402 Phone 715-842-1664 Fax 715-848-3337 rick@clementsagency.com

Mr. John W. Klinzing, CIC, CPIA Affiliated Ins. Agencies of WI, LLC 3830 Atwood Ave. Madison, WI 53714 Phone 608-310-3924 Fax 608-441-8787 johnk@affiliatedllc.com

Mr. Jeremy Cordova, CIC Cordova Agency, Inc. 716 E 2nd St. Merrill, WI Phone 715-536-9576 Fax 715-539-3349 jeremy.cordova@cordovaagency.com

Mr. Dennis Kuhnke, CIC, CPIA PIAW National Director Robertson Ryan & Associates Inc. 330 E Kilbourn Ave. Suite 650 Milwaukee, WI 53202 Phone 414-271-1561 Fax 414-271-3012 dkuhnke@robertsonryan.com

Ms. Sandy L. Hardrath, CIC, CPIA Ansay & Associates 4712 Expo Dr. Manitowoc, WI 54220 Phone 920-370-4283 Fax 920-682-7799 Sandy.Hardrath@Ansay.com

Mr. Sean M. Paterson, CIC Secretary Robertson Ryan & Associates 12750 W. North Ave., Building A Brookfield, WI 53005 Phone 262-782-5373 Fax 262-782-6327 spaterson@robertsonryan.com

Mr. Thomas Budzisz, CPIA BWO Insurance Group, LLC 2111 E Rawson Ave. Oak Creek, WI 53154 Phone 414-768-8100 Fax 414-768-8110 tom@bwoinsurance.com

Ms. LouAnn Herriges, CIC, CISR American Advantage - IFS, Inc. 353 Forest Grove Dr. #205 Pewaukee, WI 53072 Phone 262-696-5800 Fax 866-255-4440 LouAnn@insurancewisconsin.biz

1, 2

Ms. Julie Ulset, CPIA Grams Insurance Agency LLC 103 W Fulton St. Edgerton, WI 53534 Phone 608-884-3304 Fax 608-884-9616 julset@gramsinsurance.com

STAFF PIA of Wisconsin, Inc. 6401 Odana Road Madison WI 53719 Phone: 608-274-8188 Toll Free: 800-261-7429 Fax: 608-274-8195 Toll Free Fax: 866-203-7461 www.piaw.org Ronald Von Haden, CIC Executive Vice President rvonhaden@piaw.org Heather Falk, CISR Bookkeeping hfalk@piaw.org Heidi Hodel, CIC, CRIS Member Benefits Coordinator hhodel@piaw.org Mandy Penn Executive Assistant mpenn@piaw.org Becca Prestbroten Administrative Assistant bprestbroten@piaw.org Brenda Steinbach Education & Convention Director bsteinbach@piaw.org

CISR Personal Lines Miscellaneous Waukesha, Madison (7 WI CE)

38 FEBRUARY 17

March 2017

CISR COMMERCIAL PROPERTY Rothschild, Madison (7 WI CE)

22

CISR COMMERCIAL CASUALTY 2 Milwaukee (7 WI CE)

23-24

JAMES K. RUBLE GRADUATE SEMINAR Milwaukee (16 WI CE, 4 of 16 are optional Ethics)

25

CISR AGENCY OPERATIONS Appleton (7 WI CE, 1 is Ethics)

26-28

CIC AGENCY MANAGEMENT Appleton (20 WI CE, 4 of 20 are Ethics)

10, 11

CISR PERSONAL AUTO Waukesha, Green Bay (7 WI CE)

May 2017

8, 9

23

CISR PERSONAL RESIDENTIAL Madison (7 WI CE)

24-25

CIC JAMES K. RUBLE GRADUATE SEMINAR Madison (16 WI CE, 4 of 16 are optional Ethics)

20

CISR Life & Health Essentials Rothschild (7 WI CE)

21

CISR Commercial Casualty 1 Tomah (7 WI CE)

21-23

CIC LIFE & HEALTH Rothschild (20 WI CE)

18

CPIA 1–Position for Success Madison (7 WI CE)

19

CPIA 2–Implement for Success Appleton (7 WI CE)

20

CPIA 3–Sustain success ­West Bend (7 WI CE)

2-4

PIAW 68 th ANNUAL CONVENTION, Potawatomi Hotel & Casino, Milwaukee

June 2017

CIC COMMERCIAL PROPERTY INSTITUTE Madison (20 WI CE)

July 2017

15-17

August 2017

Coming Events

April 2017

8-10 WINTER GET-AWAY Minocqua (6 WI CE)

We know what it took to build this unique business.

And we know what it takes to protect it.

Underwriters who know and understand what coverages are necessary for each unique business.

Loss prevention professionals who use a hands-on approach to help develop programs tailored to each specialty business.

Claim reps with the expertise and technology to process claims quickly and efficiently.

As an Official Supplier of the Silver LiningÂŽ, you and West Bend will find a specialized insurance plan for your valued customers.

To find out more, talk to your West Bend underwriter.

6401 Odana Road Madison, WI 53719 Change Service Requested

Professional Insurance Agents of Wisconsin, Inc. 6401 Odana Road • Madison, WI 53719 (608) 274-8188 • (800) 261-PIAW • FAX (608) 274-8195 • TOLL FREE FAX: (866) 203-7461 www.piaw.org

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