JUNE 2019 | DELAWARE
IA&B’S
CLAIRE PANTALONI ON INDUSTRY CHANGES AND FRENCH DESTINATIONS
Exclusive Member Magazine
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TRUST US TO HELP THEM GROW Whether your agribusiness is a feed, seed, grain, or fertilizer operation, having our specialized insurance means dealers can focus on helping farmers first. Trust in Tomorrow.® Talk to us today. If you’re writing commercial business in Pennsylvania, find out what we can do for you and your customers. Contact our Pennsylvania representative, Harry Larkin, at harry.larkin@grinnellmutual.com. AUTO | HOME | FARM | BUSINESS
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IN THIS
10 ON THE COVER: Q&A WITH CLAIRE PANTALONI IA&B Vice President – Advocacy Claire Pantaloni shares how she got her start in the insurance industry and why she made it her career.
16 HOW TO DIFFERENTIATE YOUR BRAND
An effective brand sets an expectation of what your prospects and customers experience. Gain insights on developing and nurturing your agency’s brand.
20 AGENCY WEBSITES: THE HUB OF MARKETING
Did you know that 74% of all insurance shoppers start by searching online? How your agency looks online matters more than ever.
IN EVERY ISSUE 3 5 6 8 12 13 14 22 24 24
Chair of the Board’s Message Don's Discussion Preventing Errors & Omissions Coverage Corner President’s Message News & Notes IA&B Partners Pics & Posts Education Classified Ads
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Twitter.com/IA_and_B About IA&B IA&B is the premier resource and champion for independent insurance agents in Pennsylvania, Maryland, and Delaware. Periodical postage paid at Mechanicsburg, Pa. and at additional mailing offices. Postmaster: Send address changes to Insurance Agents & Brokers, 5050 Ritter Road, Mechanicsburg, PA 17055.
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Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2019-6, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2019. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and/or other professional advisors concerning specific matters before making any decisions. We disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.
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JUNE 2019
CHAIR OF THE BOARD’S MESSAGE
BOARD OF DIRECTORS INSURANCE AGENTS & BROKERS 5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com
OFFICERS
Chair of the Board
John B. Hollister
WHAT MEMBERSHIP HAS TO OFFER
L
Milford, PA
Vice Chair of the Board
Craig S. Mader Crofton, MD
MEMBERS
ast month I began my message by sharing that one of the best parts of working in this industry is the people. It’s true. The clients, coworkers, fellow agents, instructors – it’s a community like no other!
Emory Stephen Burnett, CIC, ARM Wilmington, DE
Richard F. Corroon, CPCU Wilmington, DE
Michael P. Ertel Sr.+
But I would be remiss if I left the folks at IA&B off of that list. During my tenure on the board, I’ve had the opportunity to meet the IA&B staff – all 25 of them. They’re a great crew with a sincere commitment to members and an impressive longevity. (I believe that Administrative Manager Tracy Banks holds the record with nearly 40 years with the organization!) One of the most well known of the bunch is Claire Pantaloni, who’s featured in this issue of Primary Agent. Throughout her 18 years with IA&B, Claire has helped countless members navigate compliance and regulatory issues and has developed dozens of resources for independent agencies. She always finds time to lend an ear and offer her take and truly exemplifies what IA&B membership is all about. On that note, I encourage you to get to know the IA&B staff and to take full advantage of what membership has to offer. Visit IABforME.com to get started. Just like the IA&B positioning statement says, the organization is the premier resource and champion for independent insurance agents.
Columbia, MD
Len Gieseler, LUTCF Pottstown, PA
G. Greg Gunn, CIC* Lemoyne, PA
Bryan C. Hanes, JD Hagerstown, MD
Lisa A. Leach Goth, CIC New Bethlehem, PA
Shannon Lipniskis Indiana, PA
Elizabeth H. Martin, CIC Millersville, PA
Mark J. Monroe
West Chester, PA
Richard M. Rankin, CIC Lancaster, PA
D. Bradley Rosenkilde Jr. Hunt Valley, MD
Tara S. Silfies, CPCU
Best,
Bethlehem, PA
Robert L. Smyrl Jr., CIC Hatfield, PA
Glenn R. Strachan
Ft. Washington, Md
John Hollister Chair of the Board
Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** Newark, DE
J. Marshall Wolff, CIC, CPCU Easton, PA
* Pa. IIABA National Director ** Del. IIABA National Director + Md. PIA National Director
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SOCIAL
JUNE 2019
Don’s Discussion Claire-ification IA&B Legal & Corporate Affairs Director Don Bankus provided this month’s answer.
QUESTION: Is it OK if we only license the agency and one of the owners in non-resident states?
ANSWER: It may seem ideal from a purely pragmatic perspective to simply license the agency and the owner of the agency (or a singular, designated producer) in each state in which the agency maintains a non-resident license. However, if other licensed producers in the agency actively “sell, solicit, or negotiate” insurance products in that state, the agency and those who do not have the requisite non-resident license are at risk of violating the respective states’ insurance producers laws.
in this state for any class or classes of insurance unless the person is licensed as an insurance producer for that line of authority under which the contract is issued.”
•
As to the agency: Agencies are expressly prohibited from accepting applications or orders for insurance from any person or securing insurance that was sold, solicited, or negotiated by any person acting without an insurance producer license.
While only licensing the agency and the owner in non-resident states may save time and money (initially and at renewal), it does not obviate that the business of insurance is highly regulated and scrutinized. Failure to adhere to respective states’ licensing statutes ultimately can lead to unwanted consequences.
Whether you are a Pennsylvania, Maryland, or Delaware resident licensed agency – with very limited exceptions – the proper (and statutorily required) way to address non-resident state licensing is to license:
•
In addition to this licensing requirement, these same statutes will also prohibit a producer from acting on behalf of an insurer unless the insurer has appointed the producer.
* Only a handful of states do not require licensing of the agency. To the best of our knowledge, these include Iowa, Rhode Island, Tennessee, Vermont, and Wisconsin.
1. the agency* and
Violations of respective states’ statutory provisions can have significant repercussions for the agency and affected producers who are not licensed in the non-resident states, including:
2. every producer who actively “sells, solicits, or negotiates” risks of insurance located in the non-resident state(s).
STATUTORY REQUIREMENTS This issue is governed by respective states’ producer licensing statutes, which generally provide that: • As to the individual and the agency: “A person shall not sell, solicit, or negotiate a contract of insurance
• Violators may be determined to have committed a misdemeanor.
FINAL THOUGHTS
POTENTIAL REPERCUSSIONS
• Denial, suspension, revocation, or refusal to renew a license. •
The imposition of a civil penalty/ fine, which can be severe (for example, up to $5,000 per violation in Pennsylvania and $20,000 per violation in Delaware).
Ask our experts! Have a question? Rely on our team to find the answer. Contact Don: 800-998-9644, ext. 603 DonB@IABforME.com IABforME.com
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PREVENTING ERRORS & OMISSIONS
PREMIUM AUDIT: E&O Loss Prevention Tips By Utica National Insurance Group
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our insureds don’t like surprises, especially when it comes to the topic of audits. Without proper explanation and timely, adequate handling procedures, policies subject to audit can lead to surprises and E&O claims against your agency. Your agency works long and hard to establish a relationship with a prospect. You learn about his or her business, analyze loss exposures, develop and present a comprehensive risk management plan, including insurance coverages, and win the business. Now it’s time to think about audits, as a number of policies are subject to audit.
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The following are some suggestions for your agency to ensure that your customer understands what it means to be audited and what he or she can expect.
KNOW • Identify which policies are subject to audit. • Determine why the policy is subject to audit, whereas some other policies are not. • Improper Workers’ Compensation class codes and territory issues are often discovered during an audit and can result in premium changes. JUNE 2019
• Check with the carrier prior to choosing classifications and developing premium. • Document your conversation.
INFORM • Notify your client in writing, on the proposal, that his or her exposure will be audited. • Explain the audit process and timing. • Clarify the difference between a physical audit, phone audit, and self-reporting audit.
Ensure that your customer understands what it means to be audited and what he or she can expect. — Utica National Insurance Group
• Explain why the client’s premium can change from the initial proposal or policy premium. Talk to him or her about how growth, previously unknown exposures, changes in operations, new products and/or operations, acquisitions, etc. can result in premium changes. • Reinforce his or her responsibility to maintain adequate records. Advise what specific information will be needed to complete the audit.
USE • Utilize proper premium calculation forms. If the carrier has its own form for calculating premiums for policies subject to audit, use that form.
PLAN • Strategize how to respond to an audit. • Discuss with agency management, or the producer, the best approach to promptly disclose premium increases to the client. • In the event of a mistake, advise your client that you are looking into the matter. • Collect your information and contact your E&O carrier.
• Together, determine if there are any solutions to the problem. • Discuss how best to communicate with the client. While not all premium audit problems can be avoided, proper knowledge, explanation, and planning go a long way toward maintaining a positive relationship with your customer and minimizing the E&O exposure to your agency. Utica National Insurance Group provided this article. IA&B is the exclusive agent for the Utica E&O program in Pennsylvania, Maryland, and Delaware. The material contained in this article is for informational purposes only and is not for purposes of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.
PROTECT YOUR AGENCY Rely on an E&O program, not just a policy, to protect your agency. IA&B provides you with the information and service you need to reduce risk and protect your agency. Our team will find you programs that offer you the best value. We work with reputable, established carriers to find top-quality coverage. IA&B protects your business through: • Industry leading claims service • Highly trained, licensed professionals • Relationships with established carriers • Options for agencies of any size
Contact IA&B Insurance Placement Specialist David Wertz, CPIA, to get started. 800-998-9644, ext. 506 DavidW@IABforME.com
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COVERAGE CORNER
THE ‘SHARING ECONOMY’ AND YOUR CAR By Kevin C. Amrhein, CIC
E
verybody has a price. What’s yours? In my personal lines classes, we have fun with this question. Speaking in reference to the sharing economy* (think AirBnb and Uber), the concept is simple: Given the choice, most folks don’t want strangers in their homes or vehicles. But it seems that, for the right price, most are willing to jettison their personal-space-value-system … assuming they had one to begin with. Much is made of the “home-sharing” exposure (think Airbnb, HomeAway, VRBO), and homeowners’ insurance policies have slowly adapted to the
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growth in this space, modernizing risk tolerance in underwriting procedures and issuing (often exclusionary) coverage endorsements. But in my classes around the country, I’m surprised at the quantity of folks who are green to the concept of “vehicle sharing.” Simply put, it’s listing a personally owned vehicle on a website as available to others temporarily for a daily price. More simply put, it’s Airbnb for cars – a clever branding strategy used by Turo, a vehicle-sharing company that, while not alone in this space, has emerged as its most recognizable brand. (As a side note, at the time of this JUNE 2019
writing, using Turo’s platform is not allowed in New York state. According to the company’s website, this is due to “insurance reasons.”) Meeting a stranger in a strange place, handing them your keys, and watching them drive away in your car might be the stuff of nightmares for many folks reading this article. But the growth in this exposure is undeniable. Folks who come from smaller communities to my classes are often aghast when we open Turo’s app, search their community, and find several vehicles listed. It goes without saying that folks with insureds in larger
communities often can scroll through dozens or hundreds of listed cars before getting the point/losing interest. Reviewing the range of vehicle-types and prices is great fun. It’s not unlikely you’ll see a high-end vehicle (think new Range Rover, Maserati, Tesla) sandwiched by two down-but-notout-working-class rides (think 2006 Honda Civic, 2007 Ford F-150 pickup). (My personal favorite Turo listing was a 1971 Volkswagen Bus, available in St. Petersburg, FL for around $40/day. I’d love to hear about the memories that listing just conjured in some of your minds…. Shoot me an email.) As I’ve written previously, whether or not we agree with folks on the wisdom (or lack thereof) of engaging in “sharing” activities is immaterial. Just assume your customers are or will soon be doing it. Let’s look at how ISO has addressed the vehicle-sharing exposure through its Personal Auto Policy (PAP).
FIRST, A LOOK BACK ISO recently released the 2018 edition of its PAP, and many states have approved its use. That said, at the time of this writing, some states have not yet approved this edition, nor will all personal auto insurers copy it verbatim. Thus, a look at the older ISO form language (2005 edition) is necessary. There’s not room in this article to review all of the 2005 form’s exclusions, but trust me when I say that the unendorsed form does NOT include an exclusion applicable solely to the vehicle-sharing exposure. As the exposure grew in popularity, ISO introduced the “Personal Vehicle Sharing Program Exclusion Endorsement” – PP 23 16 10 13, which amends each section of the ISO policy to exclude accidents occurring while “your
covered auto” is enrolled in and being used in connection with a personal vehicle sharing program by anyone other than you or any “family member.” (Note: The term “personal vehicle sharing program” is not defined in the endorsement.) Without this endorsement added (and barring any evidence of misrepresentation in the underwriting process), one should assume that accidents caused by the renting driver are covered under the owner’s PAP.
PRESENT DAY ISO The 2018 ISO PAP has incorporated the limiting language added by the endorsement into the form. Thus, should an insurer use this form, an exclusionary endorsement is no longer needed.
OTHER INSURANCE On its website, Turo describes an insurance policy that’s available to its vehicle owners should they not have coverage under their PAP. Turo’s policy currently offers three different tiers of coverage, and the premium is reduced from the owner’s share of the rental fee. (My request for a specimen copy of this insurance policy remains unanswered.) Should you identify insureds in your book of personal auto business who are listing their vehicles, it’s essential to communicate to them any limitations in the policy you sold them. It’s unwise for you to offer specific counsel on any insurance policy that you don’t control/have access to, so should your insureds ask you questions about the terms of Turo’s (or any vehicle-sharing company’s) insurance policy, such should be directed to the offering company. That’s all for now. Until the next round…. Cheers! * As a side note, does anyone else question why the term “sharing” has
become the common descriptor of this new economy? Perhaps I’m alone in my thinking here, but I always associated “sharing” with “no cost.” Wrong again. Perhaps I should teach my four-year old to start charging her little friends for a stroll on her bike. I’ll keep you posted.
Kevin C Amrhein, CIC, is IA&B‘s newest education consultant. He works with our CISR and CIC programs, as well as our special topic seminars and live webinars. Catch him at one of our upcoming professional training offerings: IABforME.com/education.
SHARING ECONOMY EXPOSURES Learn about the shortcomings in various insurance policies when it comes to Uber, Airbnb, and more. Our special topic seminar also reviews what’s new with the ISO Personal Auto Policy. Coverage for Uber, Airbnb & Other Gig Economy Trends July 9 | Mechanicsburg, PA Aug. 13 | Exton, PA Aug. 22 | Monroeville, PA Register today. 800-998-9744, option 1 IABforME.com/ OtherCoverages
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Q&A WITH
CLAIRE PANTALONI
C
laire Pantaloni, MBA, CIC, CISR, is Vice President – Advocacy for IA&B. In this role, she splits her time between overseeing public policy efforts and assisting member agencies through the research and development of compliance tools.
a hospital. It is a world where reality is always stranger than fiction, where you never know what’s coming next. It is an industry for the curious.
Q. You began your career working for the insurance company MMA in France. What prompted you to enter the insurance industry?
A. I was lucky enough to work in many different positions. After my initial training (three months, no less) and a couple of months cutting my teeth in trucking insurance, I transferred to our largest regional office in Paris. That was definitely lucky. There, I first worked in a consulting role, handling special projects. I then took over the Personal Lines Department as it was going through a reorganization. Later, I transferred to Commercial Lines and also handled a reorganization there. I truly enjoyed commercial lines. I was in charge of four different underwriting teams covering risks spanning the operation of a weather station to millions of square feet of habitational risks, sports federations, and hospitals. That’s when it got really interesting. When I left, I was deputy/acting branch manager for the Paris region.
A. Coincidence. After graduating, I was looking to finally enter the workforce and was offered a position as a manager in an insurance company headquartered in Le Mans, France. To be honest, I heard I would manage a small team and that alone was obviously appealing to me as a twenty-something with a freshly minted MBA but zero experience. I took the job. I knew absolutely nothing about insurance. Of course, if you want to survive in this industry, you have to learn. And there’s plenty to learn. Insurance is not what most people think. In fact, what I enjoy the most about it is that you’re never done learning. It touches every trade, function, and economic sector. It is humbling and exciting to go from the exposures of a flower shop to those of a large manufacturer, from a dairy farm to
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Q. Over the 12 years you were with MMA, what type of work did you do?
There was a pretty significant culture shift at the time, with more focus being placed on marketing, product offerings, and customer service. JUNE 2019
Q. How does the U.S. insurance industry compare to that in Europe? A. Interestingly, in some ways it is similar, and in others it differs greatly. When you look at a loss ratio, we all speak the same language, and the concepts of frequency and severity work just the same. Distribution channels are slightly different. Like in the United States, the focus of the distribution system is the party represented by the producer. The agent represents the carrier. However, an agent (at least in France) generally represents only one company, like a captive. A broker represents the customer and has the ability to submit risks to multiple companies susceptible to write the piece of business. The legal and regulatory environment is also different. While France tends to be more heavily regulated, lawsuit awards are both more consistent and less generous. There are no punitive damages, and people are less litigious. In addition, at least in common auto claims, insurance companies manage claims scenarios under an agreed-upon schedule of liability that simplifies the claims settlement process and avoids escalation and subrogation proceedings that would cost more than they would generate. The schedule is established based on the Vehicle Code,
case law, and the accident report to determine liability without filing a suit. Such a system would probably be inconceivable here, as it might put too many attorneys out of work, but there are benefits: Bodily injury liability limits are unlimited in auto. Q. What brought you to the States? And how did you connect with IA&B? A. My husband is American, and upon moving here, I chose to stay within the same industry. IA&B was looking to hire someone for Legal and Industry Affairs, to do research, and to handle the occasional member questions. They welcomed me with open arms, and the rest is history! Q. You’ve been with IA&B for 18 years this month. What are the biggest changes you’ve seen for independent insurance agencies during that time? A. At IA&B, the “occasional” member questions are probably four to five times what they used to be, so there’s definitely a clear need for assistance. The complexity of some laws and regulations and how they impact agency operations makes it difficult for agents to dedicate enough time to understand them. That’s what we do. Today, to the extent possible, we offer turn-key solutions with not only information about new laws and regulations, but explanations of what it means to the average agency, templates to facilitate compliance, and now, at members’ requests, on-call services [Independent Agency Solutions (IABforME.com/IAS)] where we will handle compliance for a fee. We can’t be all things to all people, but we certainly try to have options for different needs or wants.
From an operations and market standpoint, technology has changed how we all do and expect to do business. It has given us the ability to showcase what we do, then to interact directly with our customers and make everything accessible 24/7. At the same time, it has created a host of exposures we never contemplated. Hacking and data breaches are daily occurrences. On the flood front, the NFIP dug a $25 billion hole with a take-up rate that remains dismal. Terrorism, of course, entered our lives after 9/11. Emerging risks go from self-driving cars and a likely shift from personal to product liability, nano-technologies, AI, and the internet of things. That is the beauty of insurance: It is an industry that always seems resistant to change, but never stops changing to adapt to new market needs. Q. What’s your favorite part of your job? A. I like to joke that I have a great job because I get to tell people what they don’t want to hear, and they thank me for it, but in truth, I love the contact with members. We’re always talking about social networks, but that’s exactly what IA&B is: a real, tangible social network. It is an association of members for members, and we’re here to support that network. After working here for so many years, some members are almost like family, and we can speak with candor and humor. I enjoy that there is no formality. Another constant in my job, as in agents’ for that matter, is that things are not always clear-cut, and there is a fair amount of problem-solving on the fly.
Q. What do you miss most about living in France? A. Obviously, my family is still in France, so I wish I saw them more frequently than I do. A close second is food. Finally, as we’re writing this, Notre Dame was just devastated by a fire, and it’s hard not to mention the many beautiful places that used to be in my backyard and were so wonderful to visit. There are buildings where you can feel the history ooze out of the stone walls. It is an eerie and amazing feeling. Q. You became a U.S. citizen in 2017. What was that process like? A. The process is more complicated than many people think. Even before coming as a permanent resident, there are many documents to provide, medical exams, x-rays and vaccinations, fingerprinting and background checks in both countries, interviews, etc. For citizenship itself, the process took about a year from the date of application. Again, a fair amount of documentation was needed, new fingerprinting and background checks, the famous citizenship test, and the swearing-in ceremony (which was definitely a highlight). Q. If someone were taking a two-week vacation to France, what are the must-see destinations? A. Paris is an obvious choice, no surprise there. I would also recommend the beaches of Normandy and continuing down the coast to fortified St Malo and the Mont St Michel. If you have time, or are looking for sun, heading southeast toward Provence should be your target. I personally spend most of my time in the Southwest, in my hometown of Pau, at the foot of the Pyrenees, the chain of mountains that separate France from Spain, but I am partial to Provence.
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PRESIDENT'S MESSAGE
ONWARD & UPWARD: A MESSAGE FROM JASON ERNEST IA&B has had the benefit of partnering with great companies – two of which we highlight in this month’s magazine. Part of IA&B’s value to members is the vetting of service providers, to determine which the best of the bunch is. In this way, we save our members the time and hassle of weeding through the options themselves. We see a multitude of companies solicit their services to independent agents. And often, we see these companies lacking a firm grasp of who independent agents are and what it is they do. At IA&B, we do not see value in companies that provide boilerplate, one-sizefits-all services for our members. Independent agents are very unique, and as a result require unique service. That is what we look for. You’ll hear from two of our closest partners in the following pages. And these partners meet our requirement of understanding our members. In the case of Forge 3, we see a company that provides website assistance only for independent agents. CEO Jeff Teschke has a family background in working with independent agents, and he carries that through with the services he provides.
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In the case of PPO&S, we have a marketing firm that has close ties to independent agents and knows how independent agents need to brand themselves. Owner Ginny Roth has many years of partnership with Nationwide Insurance and is taking that knowledge now to cater to independent agents. PPO&S understands the important service that independent agents provide, and they know how to brand that. As added confirmation, IA&B is itself a client of PPO&S (our new look and logo a result). IA&B knows its limits. While we research, build, and deliver a plethora of resources in-house, there are certain things we rely on third parties for. Rest assured, when we do that, we spend considerable time making sure our recommendation to you is as good as it gets. Beyond Forge3 and PPO&S, we provide referral to several other companies that provide great service to our members. Explore them, use them, knowing you are in good hands.
Jason Ernest, Esq. IA&B President & CEO
JUNE 2019
ANNOUNCING SCHOLARSHIP RECIPIENTS Tune into IA&B’s Facebook page on Friday, June 28 when we announce the member agency recipients of our next round of IA&B insurance education scholarships. Facebook.com/IABforME
IAB SUPPORTS MAKE-A-WISH IA&B joined Trusted Choice as a Star of Joy sponsor for the 30th Annual Mother's Day Truck Convoy in Lancaster, PA. The event raised $500,000 for Make-A-Wish of Philadelphia, Delaware & Susquehanna Valley.
Pictured: IA&B President/CEO Jason Ernest, Esq. (left) and Make-A-Wish Regional Director Ben Lee.
NEWS & NOTES
INTRODUCING IMPROVED ACORD 68 FORM If you deliver policies and related forms via email, take note. Effective June 1, ACORD will reintroduce its ACORD 68 – Electronic Delivery Supplement form to the marketplace. Federal law requires that certain disclosures be provided to insureds prior to engaging in “electronic transactions” and that insureds provide consent to electronic delivery. The new ACORD 68 is meant to provide those required disclosures. As a refresher, in 2013 ACORD introduced its initial iteration of the form, which failed to include several federally mandated disclosures. ACORD withdrew the form in late 2017. The new ACORD 68 meets applicable statutory requirements.
WELCOME NEW GOLD PARTNER CHESAPEAKE EMPLOYERS INSURANCE COMPANY Towson, MD
NEW MEMBERS APPLIED INSURANCE SERVICES INC Sparks Glencoe, MD BUSINESS AUTO HOME INSURANCE Bel Air, MD
BENEFITS OF PROPOSED PRIVACY REG AMENDMENTS Agencies soon could benefit from reduced costs of compliance with privacy notices. IA&B sent a letter of support to the Delaware Department of Insurance (DOI) this spring following its proposed amendments to Regulation 904: Privacy of Consumer Financial and Health Information. The DOI’s amendments are an effort to formalize the changes announced in Bulletin No. 97 of 2018 and align Delaware with a change that was made to the federal Gramm Leach Bliley Act (GLBA) in late 2015. Our comment letter noted that these changes promote consistency between state and federal law and reduce costs of compliance for many member agencies. As a reminder, the GLBA originally drove the adoption of countrywide regulations requiring all financial institutions
(including insurance agencies) to notify their consumers and customers of their privacy practices: • when first contact is made or the customer relationship is established and • annually thereafter The DOI’s proposed changes to the regulation (along with Bulletin No. 97) allow agencies to discontinue the annual notice as long as the agency: •
only shares nonpublic personal information within the limited exceptions allowed by the regulation (for service providers and joint marketing, for processing and servicing transactions, and for “other” limited circumstances) and
• has not changed its privacy policies and practices since the last notice provided by the agency Note: This only applies to the notice that must be sent annually; the initial privacy notice must still be provided.
NEW PARTNER & MEMBERS BENNER INSURANCE AGENCY Strasburg, PA
SPOTTS INSURANCE GROUP INC Orwigsburg, PA
GOOD & ASSOCIATES INC Indiana, PA
WHITE ROSE INSURANCE AGENCY LLC York, PA
JB VICTOR INSURANCE LLC Philadelphia, PA MCHUGH AGENCY Rockledge, PA MCS INSURANCE AGENCY LLC Lewistown, PA
Learn more about membership by contacting IA&B Vice President – Membership Tim Wonder. 800-998-9644, ext. 351 TimW@IABforME.com IABforME.com/membership
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IA&B PARTNERS PROGRAM
OUR FEATURED PLATINUM PARTNER Insurance Agents & Brokers proudly recognizes ANE, Agency Network Exchange, as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.
ANE HELPS INDEPENDENT AGENCIES GROW, COMPETE AND STAY INDEPENDENT. ANE BENEFITS • Own 100% of book & business • Receive 100% of commissions • Increase profit-sharing revenue • Consultative support • More clout with carriers
LEADERSHIP TEAM John K. Tiene, CEO Jocelyn R. Rineer, V.P., Field Operations Linda Foley, Director, Field Operations Lisa Melroy, Director, Accounting & Operations Diane Maelzer, Manager, Agency Recruitment Alyssa Delaney, Manager, Field Operations John H. Emmons, Manager, Membership Development
CONTACT US
(609) 923-5280 www.ane-agents.com Twitter@ANE_Agents Facebook@Agency Network Exchange 14
ANE helps agencies increase sales, scale, plan for succession, and build relationships ANE, Agency Network Exchange, recently had a roundtable discussion about issues facing agents today. John Tiene is CEO of ANE, Diane Maelzer is a former agency owner now Recruitment Manager for ANE, ANE Member Development Manager John Emmons’ career spans four decades with several major insurance companies, and Marshall Wolff is President of Kressler Wolff & Miller, which joined ANE in 2018. John Tiene: What we're seeing in the market is more and more agents who are not currently affiliated with a network are actively thinking about it. There's a perception that joining a group, a network, or a cluster is really for smaller agents. For the most part, our members are established agencies that have been in business for decades. They are established, but all of them are facing the same challenge which is scale. ANE’s profit sharing agreements have higher factors that generate increased contingent revenue. Plus, they're part of an organization that provides a variety of consultative support, information, and access to a large group of fellow agents that they can learn from.
John Emmons: I agree. When I talk with agents, I find many of them feel isolated. Being a member of ANE allows them to get information they need, and feel like that they're part of an organization with other agents who want to help them and that they can trust.
IABforME.com/Partners2019
Diana C. Maelzer: What’s exciting for me about ANE is its network model. As a former agency owner for 27 years it was easy to get caught up in the day to day, forgetting to focus on sales. ANE helps agencies become more sales focused by getting them back on the sales path. Agencies grow and become more profitable as ANE members. Marshall Wolfe: Our agency management group is focused on succession. We are planning ahead for when our senior staff members including myself plan to retire. I wanted to exit strategically when my brother David takes over, and ANE provides him with access to peers he can reach out to and expertise from John and his team. ANE’s Linda Foley, ANE’s Director of Field Operations, spent a great deal of time interviewing our staff, and helped us make improvements in our operation. We’ve also been able to add new carriers and with ANE’s support we have enhanced our working relationships with existing carriers. ANE enables our agency to be part of something that allows us to strategically create our own destiny.
THANK YOU Thanks to these partners for supporting the independent agent network.
PLATINUM PARTNERS
ACUITY Agency Network Exchange LLC Donegal Insurance Group Erie Insurance Group Farmers Mutual Fire Insurance Company of Marble Insurance Agents & Brokers Service Group Millers Mutual Group Penn National Insurance Plymouth Rock Assurance The Main Street America Group
GOLD PARTNERS
Berkley Mid-Atlantic Group Chesapeake Employers Insurance Company Chubb EMC Insurance Companies Keystone Insurers Group Liberty Mutual Business & Safeco Insurance MMG Insurance Company Mutual Benefit Group Progressive Zenith Insurance Company BECOME A 2019 PARTNER TODAY Interested in becoming a partner? Please don’t hesitate to contact us. Jess McWilliams, Education Senior Director 800-998-9644, ext. 503 JessicaM@IABforME.com
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HOW TO DIFFERENTIATE YOUR BRAND IN A ‘ME, TOO’ MARKETPLACE 16
JUNE 2019
An effective brand differentiates your agency. It sets an expectation of what your prospects and customers experience. Read on for insights on developing and nurturing your agency’s brand.
By Joe Knezic 17
L
exicon. Your brand is a promise you make to prospects and customers as to what they can expect from a relationship with you. Branding is everything you do to make sure you’re meeting customer expectations while making good on your promise. An effective brand is one that sparks some type of visceral reaction when its name is encountered. It may be prompted through experience. “They’ve done a superb job of meeting my needs for five years.” Or via reputation. “A neighbor of mine switched to them and got better coverage at a better value.” As these two examples illustrate, perceptions of a brand are closely tied to experience and emotion. Insurance products are connected to home and livelihood, which are both cores of high emotion. And to make the situation even more complex, money is involved which means gaining your subject’s trust is imperative. This is a very personal territory to them. So, what does all this mean for your brand? No doubt, each of your competitors has a laundry list of products that can be compared in some way to yours. Some consumer decisions may be made at point of comparison. But if the opportunity moves beyond parity points, what does your practice bring to the table that gives you a competitive edge?
How prepared are you to combat the me, too’ competitors out there? And how can you build customer relationships for the long haul?
Professionalism is a huge asset. Think through all your existing touchpoints. What type of greeting do people get when they answer the phone? If they’re customers, are they recognized and greeted by name? When they receive branded materials – hard copy or digital – do they give the impression of a top-notch and trustworthy organization? Is your business name presented in a professional and consistent manner throughout? Today’s consumers prefer a personalized experience. How well are you delivering it? What’s your approach for understanding each individual’s needs? How much do you learn and capture about their lifestyles and preferences, formally through customer relationship management tools or informally through simple “tickler” notes? The better you know customers, the better you can satisfy them. Speaking of customer satisfaction, how pleased are your customers with your performance? Do surveys or face-to-face dialogue keep you abreast of how well you’re delivering on your brand promise? How do you encourage loyalists to be brand ambassadors through referrals? There’s a lot for independent agents to think about with regard to their agency’s brand – this narrative just scratches the surface. Truth be told, your prospects and customers “own” your brand. Their perceptions of it are your reality. So, how can you ensure your brand is built upon a customer-centric foundation? Start by taking an objective, 360-degree look at your business to sure up every touchpoint. Is your promise clear? Is your delivery on the promise credible, distinctive, and consistent? How prepared are you to combat the “me, too” competitors out there? And most importantly, how can you build customer relationships for the long haul? It’s all about your brand. Joe Knezic is Vice President – Branding and Creative Services at PPO&S Integrated Marketing Communications in Harrisburg, PA.
— Joe Knezic
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JUNE 2019
BRAND YOUR AGENCY Are you seeking a more powerful market presence? As an IA&B member, you can benefit from IA&B’s partnership with PPO&S, an award-winning advertising and branding agency. PPO&S is offering a series of all-inclusive logo design packages to members. They’ve developed a simple process that begins with input from you, so the end design is a distinctive reflection of your company. Each package includes: •
Two initial design concepts to choose from
•
Type and color recommendations
• Final logo files in professional digital format • Easy-to-use style guide to show proper use of your logo • Professional stationery suite design (letterhead, business card, #10 envelope) • Final ready-to-print files for the stationery suite
committed to mutual success. Harford Mutual Insurance partners with independent agents in Delaware. We insure restaurants, contractors, mercantile, and other commercial entities. We’re committed to protecting your client’s business and building yours.
Design packages range from $1,950 to $3,400. Choose the one that’s right for you, or consult with PPO&S to determine which option best meets your needs. To learn more or to get started, visit https://PPOSinc.com/IAB or call PPO&S at 717-232-1898.
INSURING BUSINESSES SINCE 1842
HarfordMutual.com | 800.638.3669
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MARKETING MINUTE
AGENCY WEBSITES: THE HUB OF MARKETING By Michelle Longo
T
hanks to the Internet, you can make a fabulous first impression without even talking to a prospect. Unfortunately, thanks to the Internet, you can make a not-so-stellar first impression without even talking to a prospect.
on without giving you a shot. Your website should reflect the amazing, knowledgeable, and capable agency you are. You wouldn’t show up to a prospect meeting in torn jeans and a stained hoodie. Don’t show up to the Internet that way, either.
There are all sorts of ways to get referrals. You can put your efforts into email campaigns, print and social media, and paid advertising. Referrals will likely always remain at the top of the list just because of the business we’re in. But no matter how your prospects hear about you, one of the first things they’ll do is check out your website.
You may be thinking, “I’m not a web designer; I just want to sell insurance. I don’t have time for this.”
If your website looks amazing, is easy to navigate, and contains information they want to read, prospects will stick around to learn more about you. And if it doesn’t, well, they may move
We hear you, and that’s why we created ActiveAgency, the innovative insurance agency website platform that can have you wowing your prospects every time. It’s got tools and features to help you stand in a crowded playing field, but it also reflects who your agency is at the core. That’s because although ActiveAgency is a platform, each website is custom-designed. Our skilled designers know how to turn a client’s vision into reality. Here’s what our designers say about the process:
No matter how your prospects hear about you, one of the first things they’ll do is check out your website. — Michelle Longo
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Websites are an awesome representation of an agency. In my opinion, having a slick website helps agencies stand out from the rest and backs up their professionalism. While I’m designing websites, I like to take the notes from the client and use their logo as inspiration, infusing everything together into a design that I believe represents the client efficiently. The aspect that I enjoy most about designing websites for various insurance agencies is the ability to do what I enjoy most to create something that will help someone else succeed and look good! I find the most fulfillment in my role when a client walks away happy and satisfied with the work my team and I have done! - Brittany
JUNE 2019
Working with different independent insurance agencies is a design challenge, but it is also a great responsibility! When I am designing, I always remember we, at Forge3, are helping our clients build stronger relationships through their website, create or strengthen a digital presence, or (my favorite type) create an independent agent’s very first website. As a designer, my goal is to really understand the clients I work with, what their digital goals are, and what they hope to gain from having a website. - Liz Second best doesn’t cut it in sales, and second-rate insurance won’t do for your clients either. There’s no getting around it: In order to be successful in today’s market, every agency needs a dynamite website to put their best digital foot forward. Not sure your website cuts the mustard? Looking to freshen things up? Visit us at forge3.com/iab to see what we can do or you and schedule a demo! Michelle Longo is a digital marketing account specialist for Forge3, Ltd.
COMPLIANCE COUNSELING SERVICES Don’t stress about compliance. Call us and we’ll take care of these for you:
DOL/FLSA Producer Agreements Broker Agreements Referral Fee Programs Employee Handbooks Employee Category Audit GLBA Privacy Compliance
800-998-9644, option 4 | IABforME.com/IAS Affordable fee-based solutions from THE authority on independent agencies.
WHAT CAN ACTIVE AGENCY DO FOR YOU? DID YOU KNOW that 74% of all insurance shoppers start by searching online? How your agency looks online matters more than ever. ActiveAgency is the IA&B-approved website platform designed specifically for insurance agencies. It includes innovative sales tools and features like Clickable Coverage, Hello Producer, and more. There are no setup fees or long-term contracts. And thanks to our partnership with Forge3, IA&B members receive special content. Learn more by visiting Forge3.com/iab or contacting Zack Yurch.
Find Your (Carrier) Match Introducing
the match hub for IA&B members and Partner companies IABforME.com/AppointmentLink
Zack Yurch 484-275-0983 zack.yurch@forge3.com
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PICS & POSTS
Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_B
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JUNE 2019
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CLASSIFIED ADVERTISEMENTS
JULY 2019
SOUTHEAST PA PRODUCERS & AGENCIES
We'll Save You a Seat. Register Today. 800-998-9644, option 1 IABforME.com/education
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Coverage Trends: Uber, AirBnb & Others CISR Life & Health CISR Life & Health CISR Personal Residential James K. Ruble Graduate Seminar CISR Personal Auto Property & Casualty Licensing Study Course CISR Misc. Personal Lines WT Hold: Sneaky Commercial Coverage Concerns Property & Casualty Licensing Study Course CIC Commercial Property Institute WT Hold: Sneaky Commercial Coverage Concerns James K. Ruble Graduate Seminar CISR Agency Operations CIC Commercial Multiline Institute
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Mechanicsburg, PA Frederick, MD Altoona, PA Lancaster, PA Macungie, PA Trevose, PA Exton, PA Bridgeville, PA Cranberry Twp., PA Mechanicsburg, PA Cranberry Twp., PA Erie, PA Erie, PA Mechanicsburg, PA King of Prussia, PA
TIME
On Ethics: Data, Dilemmas, and Knuckleheads 1 – 4 PM Funding Long-Term Care 9 AM – 12 NOON Construction Contracts 1 – 4 PM If It Moves On the Farm It Presents a Risk 1 – 4 PM E&O Road Map (Parts 1 & 2) 9 AM – 4 PM Welcome to the Future 9 AM – 12 NOON Homeowner's Policy Coverage Concerns 1 – 4 PM Bill Wilson’s “When Words Collide: Resolving Coverage & Claims Disputes” Part Three: Insurance Policy Interpretation 1 – 4 PM Insurance Issues for Today's World 9 AM – 12 NOON Bill Wilson’s “When Words Collide: Resolving Coverage & Claims Disputes” Part Four: Finding Resolution 1 – 4 PM Mastering Medicare and Social Security 1 – 4 PM JUNE 2019
Professional agency since 1926 located in Feasterville, Bucks County, Pa. Call for confidential information and a review of our services. Contact Ray Reinard at 215-357-8600, Ext. 119. If you would like to place a classified advertisement, please contact Laura Gaenzle at Laura.gaenzle@theygsgroup.com or 717-430-2351.
PRIMARY AGENT EDITORIAL Editor: Karen Robison KarenR@IABforME.com 800-998-9644, ext. 606 Contributing editors: Jennifer Ross, Megan Fioretta, Melissa Telesha
SALES Account Executive: Laura Gaenzle laura.gaenzle@theYGSgroup.com 717-430-2351
SAVE TIME & MONEY on Recruiting | Hiring | Training WAHVE is an innovative contract staffing solution that matches retiring professionals to fill your staffing needs.
Shopping your E&O? ▲ IA&B offers coverage that agents need. Contact David today. For personalized service, CONTACT DAVID WERTZ, CPIA 800-998-9644, ext. 506 DavidW@IABforME.com IABforME.com/agency_insurance
Contact Bill Hunt at WAHVE today! Bill.Hunt@wahve.com • 646-807-4372 ext. 3757 *Mention your IA&B membership for a discount on set-up fees.
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