Pennsylvania Primary Agent - February 2016

FEBRUARY JANUARY 2016 | PENNSYLVANIA

E-SIGNATURES SIGNED, SEALED, DELIVERED, THE TECHNOLOGY IS YOURS

5 WAYS TO BE “VISUALLY” DIFFERENT

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IN THIS

ON THE COVER 10

ELECTRONIC SIGNATURES Broader acceptance of e-signature technology is creating greater expectations for usage among customers and agents.

ALSO 16

5 WAYS TO BE “VISUALLY” DIFFERENT Jeff Teschke, the popular presenter from our 2015 Executive Management Conference, shares how to be different in today’s always-on, 24/7 world.

IN EVERY ISSUE 2 3 4 6 8 20 IBC IBC IBC

Chairman of the Board’s Message Ask Our Experts Preventing Errors & Omissions Coverage Corner State News IA&B Partners Advertiser’s Index My Events Classified Ads

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.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2016-2, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

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Copyright 2016. 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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CHAIRMAN OF THE BOARD’S MESSAGE

STRENGTH IN NUMBERS

T

INSURANCE AGENTS & BROKERS 5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com

OFFICERS

here’s strength in numbers. And while most of us, as small-business owners, don’t have numbers on our side within our agency, together — we’re 1,400 IA&B member agencies strong – we do. That’s the beauty of an association.

We don’t need to know all of the answers, or to have all of the resources, or to be everywhere at once. We can pull our membership dues and rely on the resulting association resources.

This issue of Primary Agent magazine focuses on tips for small-business owners and, in the process, highlights a few of the many ways that IA&B membership can benefit you and your agency.

I encourage you to give this issue a read and to visit IABforME.com to learn more about what your association has to offer. And the next time you face a roadblock (no matter what hat you’re wearing: business owner, insurance agent, employer) look to IA&B’s staff and resources for assistance.

The value of membership is yours for the taking. Are you taking advantage of it? n

Chair of the Board

Robert S. Klinger, LUTCF, CPIA Vice Chair of the Board

Michael F. McGroarty Sr. Immediate Past Chair of the Board

Diana M. Hornung Hanby, ACSR

MEMBERS E. Stephen Burnett, CIC, ARM Wilmington, Del.

Richard F. Corroon, CPCU Wilmington, Del.

N. Lee Dotson, CIC, AAI Wilmington, Del.

Michael P. Ertel+ Columbia, Md.

Bryan C. Hanes, JD Hagerstown, Md.

John B. Hollister Milford, Pa.

Jocelyn R. Howard-Sinopoli, CIC, CISR Butler, Pa.

David C. King Lancaster, Pa.

Best,

Douglas A. Loesel, CPCU Erie, Pa.

Crag S. Mader

Gambrills, Md.

Ann Gallen Moll, CIC

Robert S. Klinger, LUTCF, CPIA Chairman of the Board

Reading, Pa.

Mark J. Monroe

West Chester, Pa.

Joseph R. Pastor, CPCU, AAI Oil City, Pa.

Richard M. Rankin, CIC Lancaster, Pa.

April E. Ressler, CIC Altoona, Pa.

Scott C. Rogers, CPIA* York, Pa.

Glenn R. Strachan

Ft. Washington, Md.

Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** New Castle, Del.

J. Marshall Wolff, CIC, CPCU Easton, Pa.

* Pa. IIABA National Director ** Del. IIABA National Director + Md. PIA National Director

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FEBRUARY 2016

Ask Our Experts This month’s answer was provided by Don Bankus, our legal affairs manager.

Question: Where can I go to find out if a company is licensed to do business in my state?

Answer:

W

hile the process varies slightly for each of our three states, simply go to the respective Department of Insurance website and follow these directions: DELAWARE: • Visit: http://www. delawareinsurance. gov/departments/berg/ authorizedcompanies.shtml • Click the “list of companies” link.

• Download and review the Excel spreadsheet of companies that are admitted, approved, and/or authorized to conduct business.

• NOTE: The spreadsheet is updated quarterly (March, June, September and December). If in doubt about changes, contact DOI BERG Resources at (302) 674-7330.

MARYLAND: • Visit: https://www.apps. insurance.maryland.gov/ CompanyProducerInfo/ • Choose “An insurance company” from the list of items to search for and then click “next.”

• Select the line of authority and click “next.”

• Review the list provided (which is updated weekly) one page at a time, or search by company name or NAIC number.

PENNSYLVANIA: • Visit: https://www.insurance.state. pa.us/dsf/gfsearch.html • Click on the first letter of the name of the company you wish to search, or type the company’s name or NAIC number and click “search.”

• The information in the Pennsylvania database is updated weekly.

These state databases include company status (active or otherwise), NAIC number, mailing address and phone number, and lines of authority.

The lists do not include eligible surplus lines insurers.

HOW TO DETERMINE IF A CARRIER IS LICENSED IN MULTIPLE STATES The National Association of Insurance Commissioners (NAIC) maintains a database of these carriers.

• Visit: https://eapps.naic.org/ cis/index.do • In the right column, type the name or NAIC number of the company and click “Find a company.”

• Choose the “licensing” link to the right of the company name.

• NOTE: It’s unknown how often the NAIC database is updated, so it may be wise to use the NAIC database in conjunction with the previously referenced states databases. n

Have a question? Ask our experts!

Rely on our experts to answer your most perplexing questions. Visit the Ask Our Experts section of IABforME.com (find the link in the website footer) to submit your question and review answers to other frequently asked questions. Or email your question to us at IAB@IABforME.com. We look forward to hearing from you.

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PREVENTING ERRORS & OMISSIONS

IS YOUR AGENCY “ALL IN” FROM AN E&O PERSPECTIVE?

By Utica National E&O Program

A

s the NFL’s regular season wound down, some teams developed a rally cry of “all in!” For these teams, that motto symbolized a commitment to give it all they had and do their best to achieve the standard of excellence. That commitment was a pledge to each other and to the team as a whole. Reflecting on that motto and its symbolism, an “all in” philosophy could easily apply to insurance agencies and their commitment to achieving, among other things, a high standard of excellence in Errors & Omissions loss prevention.

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With a new year underway, it is common to reflect on ways of improving agency operations over the next 12 months, including a commitment to E&O loss prevention. While oftentimes there are references to agencies that made “mistakes,” in actuality, agencies don’t make mistakes. People do. Thus, for your agency to have a strong commitment to doing the right thing, it takes every staff member to be “all in” to demonstrate that commitment. This starts with every staff member having a healthy respect for E&O and expressing a personal

FEBRUARY 2016

commitment to the agency and to fellow team members – and with management showing its commitment.

SUPPORT, RESPECT AND FEEDBACK Without management setting the tone and “walking the walk,” – that is, being “all in” – it will be extremely difficult for the agency to achieve the E&O standard of excellence. From an E&O perspective, the best agencies are those where management sets a clear, concise message and lays out its expectations of

the agency. Management that is involved and frequently interacts with the staff helps ensure an awareness of agency issues. Listening to the staff, respecting their thoughts and providing feedback helps staff members grow – and wise management knows that when the staff grows, the agency grows. To show support, it is common for management to attend E&O classes. That’s called leading by example.

For the various levels within the agency, each staff member should be firmly committed to doing the right thing and make certain they possess the necessary technical and sales knowledge. In some respects, an agency is like a chain – it is only as strong as its weakest link.

For example, if there are 10 people in the agency but only nine are “all in,” it may be easy to determine where the greatest E&O claims potential rests. The commitment of each staff member should be to themselves and to the agency as a whole. This applies to producers, account executives, accounting staff, file clerks, claims staff, receptionist, etc. They must be committed to performing each task promptly and professionally, and to clearly and openly treating customers with respect.

Among the key tasks is documentation.

It is crucial that conversations are fully documented in the system and, where appropriate, documented back to the customer to address any potential misunderstandings. You are committed to providing your customers and your carriers with honest and correct information. All staff must do this ethically and to the best of their ability – in other words, showing that they are “all in.”

IDENTIFY OPPORTUNITIES Agencies must reflect back on 2011 and identify opportunities to strengthen the commitment to Errors & Omissions.

Areas to consider include: Regularly scheduling staff meetings – These are a great tool to ensure open and solid communication. Take a portion of each meeting for education on some topic. This could be a technical subject, discussion of a new carrier form or new underwriting guidelines, or possibly to address customers’ questions. Using the time to reinforce agency procedures and expectations such as documentation will contribute to consistency and growth. To enhance the E&O culture, look for each staff member to provide, at the meeting or in a subsequent conversation, thoughts on what they could do better to reduce the chances of the agency facing an E&O claim. This type of feedback is powerful and beneficial.

Educating your customers – Help your agency’s customers gain a better understanding of insurance matters, terms, etc. This will no doubt result in customers who feel respected. Consider using a printed or electronic newsletter to communicate this information.

Combining this with an accountrounding campaign will definitely result in increased sales. It is obviously better to tell someone what is and what is not covered before they have a loss, as opposed to telling them afterwards.

Procedural review – Are some procedures in need of updating? This could be a terrific opportunity to achieve gains in efficiency and professionalism, especially if it has been some time since they have been reviewed. A positive procedure to enhance the E&O culture involves including a cover letter when

sending a policy to a customer. This letter should advise the customer to read the policy, and contact the agency promptly if there are any questions about the policy or if the customer wishes to make any changes. This letter can play a significant role in the defense of the agency should a claim develop.

Attending an E&O loss control seminar – These can be extremely beneficial in educating the staff and enabling them to benefit from E&O guidance from a trained E&O professional. These classes are filed for continuing education credit, providing an additional benefit.

Because most E&O carriers provide a loss control credit for attending these classes, this can also help save money on the agency’s E&O. A STRONG COMMITMENT How would you respond to the question, “What is your agency’s E&O commitment?” Good Errors & Omissions results don’t just happen.

They take a strong commitment from every staff member – so look for 2016 to be a year with an “all in” E&O commitment. n

The Utica National E&O Program supplied this article. Our IA&B Sales Center is the exclusive agent for the Utica E&O program in Delaware, Maryland and Pennsylvania. For questions regarding this article or your E&O coverage, contact IA&B at 800-998-9644 or IAB@IABforME.com.

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COVERAGE CORNER

DRIVE OTHER CAR ENDORSEMENT VS. INDIVIDUAL NAMED INSURED ENDORSEMENT

By Jerry M. Milton, CIC

B

usiness owners love to play games with their autos. They title all autos, including those used by family members, in the name of the business.

They want to combine their personally owned autos with the company-owned autos and insure all of them under the Business Auto Policy. They usually do this for tax purposes. Autos in the name of the business – tax credit. Insurance in the name of the business – tax credit.

These situations present you, as their agent, with a challenge. If not handled

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correctly, there could be gaps in the coverage for the business owners and their families.

SITUATION NO. 1: ALL AUTOS ARE OWNED BY THE COMPANY Neither the business owner nor any family members own an auto. Therefore, none of them have a Personal Auto Policy. The company has a Business Auto Policy. The business owner and family members are relying on the Business Auto Policy to cover their personal activities.

FEBRUARY 2016

The business owner and family members are covered under the Business Auto Policy for the use of any of the company-owned autos since they are permissive users.

However, they are not covered for any auto they personally rent or borrow. The auto must be owned, hired or borrowed by the company (named insured).

Solution: Add the Drive Other Car Coverage – Broadened Coverage For Named Individuals endorsement (CA 99 10) to the Business Auto Policy. This endorsement provides coverage for the

scheduled individuals when they rent or borrow autos. The spouse of a scheduled individual is automatically covered if he or she is a resident of the same household.

It does not cover any auto owned by the scheduled individual or spouse.

The coverages that can be provided are Liability, Medical Payments (firstparty benefits), UM/UIM and Physical Damage. The coverages purchased for each individual will apply to a non-owned auto rented or borrowed by that individual.

Policy for the use of any of the companyowned autos since they are permissive users. However, they are not covered for the ownership or use of any of the personally owned autos or for any auto they personally rent or borrow. The auto must be owned, hired or borrowed by the company (named insured). In addition, The Business Auto Policy does not cover an employee using an auto owned by that employee or a member of the employee’s household.

Are there any disadvantages? Yes!

Solution: Add the business owner as a named insured on the Business Auto Policy. The business owner will be an insured for any covered auto – owned, hired or borrowed. The business owner’s family members will be covered while using any of the company-owned or personally owned autos since they are permissive users. However the family members are not covered for any autos they personally rent or borrow.

This endorsement is not “family member” coverage. It applies to scheduled individuals only. What about children who are not scheduled and become licensed during the policy year and the insured fails to notify the insurer? What about minor children?

The Business Auto Policy is on the hook for any losses incurred by the business owner or family members in their personal activities. What could be the impact on the Business Auto premium?

Could their personal losses involve the company’s Excess Liability policy?

The best solution is to convince the business owner to transfer the ownership of at least one auto from the company to the business owner and purchase a Personal Auto Policy. Unlike the Business Auto Policy, the Personal Auto Policy is a “family” policy.

SITUATION NO. 2: ALL AUTOS OWNED BY THE BUSINESS OWNER ARE SCHEDULED ON THE COMPANY’S BUSINESS AUTO POLICY Neither the business owner nor any family members have a Personal Auto Policy. They are relying on the company’s Business Auto Policy to cover their personal activities.

The business owner and family members are covered under the Business Auto

Solution: Add the Individual Named Insured endorsement (CA 99 17). In order for this endorsement to be attached, the individual named in the Declarations must own a private passenger auto (includes a pickup or van not used for business) that is covered for Liability under the Business Auto Policy The Business Auto Who is An Insured provision is modified to include the business owner’s spouse and family members for the use of any non-owned

auto unless the auto is owned by the family member or furnished or available for their regular use. If any auto of the private passenger type owned by the business owner is covered for Physical Damage, the coverage will apply to a non-owned auto.

Unlike the Drive Other Car endorsement, the Individual Named Insured endorsement is a “family-member endorsement.” However, as with the Drive Other Car endorsement, the Business Auto Policy is on the hook for any losses incurred by the business owner or family members in their personal activities.

Again, the best solution is a Personal Auto Policy.

When they’re playing games, our insurance policies don’t always match up with the game they’re playing. No matter what you do, the Business Auto Policy is not a Personal Auto Policy. n

Jerry M. Milton, CIC, teaches and consults on industry issues. The legal profession recognizes him as an expert on insurance coverages. He also serves as our education consultant, working with our CISR, CIC and continuing education programs. Catch him at one of our upcoming seminars: IABforME.com/MyTraining.

WHEN THE BAP AND PAP COLLIDE HEAR MORE from Jerry Milton on the intersection of the Business Auto and Personal Auto policies when he headlines our February Power Hour on the topic. As always, our members-only Power Hour webinars are free, but registration is required.

IABforME.com/PowerHour

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STATE NEWS

FEDS LESS LIKELY TO MEDDLE IN INSURANCE REGULATION Concerns about the Federal Insurance Office (FIO)’s reach continue to be quelled. The office recently appointed new representatives to its Federal Advisory Committee on Insurance (FACI), including Pennsylvania Insurance Commissioner Teresa Miller.

INSURANCE DEPARTMENT ADDRESSES SKYROCKETING DRONE USAGE With drone usage on the rise, so are insurance coverage conundrums. Commissioner Miller late last year issued a summary of related risks and coverage considerations.

Highlights of the press release include: • Homeowners’ and renters’ policies generally cover losses involving bodily injury and property damage for the use of a private drone as a hobby • A policy’s contents section determines if coverage exists for a lost, stolen or damaged drone • Homeowners’ and renters’ policies generally provide liability coverage for a drone accident • Insurers are still developing policies to cover privacy liability exposures insurance.pa.gov

Show your value to fledgling drone flyers. Our new consumer education piece can help you educate customers on drone registration requirements, insurance considerations and safety guidelines.

IABforME.com/MyBrand

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FEBRUARY 2016

FACI is tasked with providing advice and recommendations to assist the FIO in carrying out its statutory authority. As a reminder, the Dodd-Frank Act triggered the creation of the FIO … and subsequent concerns about infringements on statebased regulation of insurance. However, the appointment of Miller – who is a proponent of state-based regulation, as evidenced in our interview with her that ran in our October 2015 Primary Agent magazine – is a reassuring move.

In December 2013 the FIO presented to Congress its long-anticipated (and nearly two-years-overdue) report on modernization and improvement of insurance regulation. It also calmed the nerves of many by calling for the continued state-based regulation of insurance and, when necessary, federal involvement. Specifically, the report recommended support of the National Association of Registered Agents and Brokers Reform Act (NARAB II), which passed Congress in January 2015 and was considered a victory for independent agents.

WORKERS’ COMP FILING SUGGESTS SLIGHT RATE DECLINE Overall, workers’ compensation rates should decrease very slightly beginning this spring. We were on hand when the Pennsylvania Compensation Rating Bureau (PCRB) unveiled its April 1, 2016 loss cost filing – which calls for an overall average loss cost decrease of 0.90 percent.

PCRB representatives shared that frequency continues to decrease, which offsets the increase in severity for indemnity and medical claims. This trend has held true for the Pennsylvania workers’ compensation system for several years.

The PCRB submitted its filing to the Pennsylvania Insurance Department for review, and at the time this issue of Primary Agent went to print, the Department had yet to respond. Until the rates are finalized, policies issued with effective dates on or after April 1, 2016 must be qualified as carrying tentative rates.

PCRB.com

COAL MINE LOSS COST FILING, REVISION SUBMITTED Coal mine employers should anticipate a 4.0 percent increase in workers’ compensation collectible loss costs effective April 1, 2016. The Coal Mine Compensation Rating Bureau (CMCRB) late last fall filed a +4.1 percent loss cost level change with the Pennsylvania Insurance Department (PID) and then the following week revised its filing to +4.0 percent.

The revised filing accounts for the Pennsylvania Compensation Rating Bureau’s updated evaluation of House Bill

1846 of 2014, which the CMCRB, in part, adjusted based on discussion with several of its larger writers.

As this issue of Primary Agent went to print, the filing’s comment period was winding down, and the PID was expected to respond to the proposal.

CMCRBPA.com

HOW DOES YOUR AGENCY STACK UP? Pick up pointers from leading independent agencies. The latest round of Big “I” Best Practices Study results is now available. The research identified several trends, including: • Modest declines in organic growth • Steady profitability • Improvements in overall operating efficiency The Best Practices Study provides insight into profit/loss summaries, producer productivity by lines of insurance sold, commission and revenue statistics per top carriers represented, and more.

Purchasing the study is not necessary to access results and download a comparison spreadsheet.

To review the results, simply follow the second link below, and then select “Study Results” and choose among six agency revenue categories across the top of the page. Or click “Comparison Spreadsheet” from the top menu bar. bp.reaganconsulting.com

FAIR PLAN MOVES; CANCELLATION, NONRENEWAL NOTICES RECEIVE REVISION If you occasionally do business with the FAIR Plan, take note of its address change. In addition, look for edits to those Notices of Cancellation and Refusal to Renew that require informing the insured of the possible eligibility for insurance under the Pennsylvania Fair Plan Act. Carriers that had included the FAIR Plan’s address in their standard nonrenewal notice must update their notice to reflect the new address of the Insurance Placement Facility of Pennsylvania, which administers the FAIR Plan. The new notices also must be filed for approval with the Insurance Department.

The Unfair Insurance Practices Act (Act 205 of 1974) governs cancellations and refusals to renew Homeowners’ policies in the state, including the need to advise insureds about the FAIR Plan.

WELCOME NEW MEMBERS INSURANCE ADVISORS LP Washington, PA JOHN A. PASQUINELLI AGENCY Gibsonia, PA MCMAHON FERGUSON & ASSOCIATES Jersey Shore, PA THE SHAY AGENCY Wilkes-Barre, PA SNYDER INSURANCE AGENCY INC. Leesport, PA

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ELECTRONIC SIGNATURES

SIGNED, SEALED, DELIVERED, THE TECHNOLOGY IS YOURS 10

FEBRUARY 2016

When it comes to adopting e-signature technology, there’s typically a great deal of hemming and hawing in our industry. How exactly does it work? Is it legally binding? Will my customers feel comfortable using it? How will my carriers respond?

S

ome issues – how the technology works; the legality of electronic signatures — are clear. Others, such as carrier acceptance, remain less certain (although carrier implementation and acceptance appear to be increasing steadily). Either way, the fact remains that there is a great deal to gain from adopting e-signature technology. Think: increased efficiency and productivity and decreased costs and errors.

What’s more, usage is catching on in other industries. Even the IRS announced last summer that it will expand the use of electronic signatures for individual income tax returns. And with that broader acceptance comes greater expectations for its usage among customers – and agents.

GAUGING COMFORT LEVELS The Agents Council for Technology (ACT) Customer Experience Work Group recently released its Consumer Insurance Journey Recommendations. Among them? To support consumers who increasingly want to use electronic signature technology when purchasing insurance.

According to the work group’s recommendations: Common e-signature protocols must be accepted and implemented by all companies and agents. The time savings for agencies can be enormous, and consumers expect this type of service for applications, coverage rejection and other forms.

While the desire to use e-signature technology certainly isn’t unique to younger generations, younger generations as a whole tend to have a higher initial comfort level with the technology … not to mention a different expectation for speed of service.

,

By IA&B staff

“Millennial consumers don’t want to wait for a packet of paper to be delivered to them by mail,” shared Marcia Berner, ACE Chief Membership Officer at ACORD, in an interview with Rough Notes magazine. Adopting electronic signatures is a key component in competing with the direct writers whose seamless technology workflows appeal to young consumers.

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The same could be said for Millennial agents. The topic recently came up for discussion in our IA&B Futures Program for young agents, where some members expressed frustration over agencies’ slow adoption of the technology.

INS AND OUTS OF E-SIGNATURES

As Cal Durland, CPCU, director of industry relations at ACORD told Rough Notes: “Agents want to close the sale when the customer is in front of them.” E-signature technology is the tool that allows them to do that. What’s more, the leading e-signature platforms accommodate mobility by allowing access through a mobile browser and with apps for iPad, iPhone and Android devices.

IT TOOK over a decade for technology – and the manner in which the vast majority of insurance agencies are willing to conduct their daily business – to catch up with the intent and practicality of federal and state laws.

But now many insurance customers, agents and carriers are beginning to embrace e-signature technology.

UNDERSTANDING WHAT’S AT STAKE By and large, agents who use e-signature technology report positive outcomes: from selling more and communicating faster, to satisfying efficiency-conscious consumers and eliminating unneeded follow-ups. E-signature provider DocuSign recently quantified the benefits to its new insurance industry customers: sales improved by 15 percent, retention improved by 5 percent, and signing rate increased by 20 percent.

“When you add up the time savings and multiply that by the number of documents sent daily that require signature,” said Steve Anderson, CIC, president of The Anderson Network, in a LinkedIn post, “significant productivity and expense reduction can be achieved.”

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Learn more about the process, including how to comply with disclosure and consent requirements, by reviewing our online resources.

IABforME.com/electronic_transactions

Plus, as a benefit of membership, you’re entitled to a discount on DocuSign services. Docusign is the global standard for electronic signature technology and simple to implement: Just sign up and log in without downloading software or installing hardware.

IABforME.com/discount_memb_serv/DocuSign

FEBRUARY 2016

Expect big things in workers’ compensation. Expect to save a third of your clients 30% or more. Most classes approved, nationwide.

For information call (877) 234-4450 or visit auw.com/us.

Š2016 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best.

Insurance plans protected U.S. Patent No. 7,908,157.

It will only be a matter of time before conducting transactions electronically becomes the norm, rather than the exception.

From a carrier perspective, ACT compiled a list of individual companies’ quantifiable successes – successes that trickle down to benefit agents and customers as well: • $10 cost saving per transaction • 61 percent increase in productivity • 81 percent reduction in document errors • 97 percent reduction in turnaround time

LOOKING AHEAD The e-signature method of transacting business in the insurance industry is not going to be a trend; it will be the wave of the very near future. Given the enhancements and advancements in technology and the resolution of the validity and enforceability of electronic transactions in the court systems, it’s expected that it will only be a matter of time before conducting transactions electronically becomes the norm, rather than the exception. n

Beyond these benefits, there are those of ensuring documents are in good order, filled out completely, and stored securely, in turn, reducing E&O problems.

IDENTIFYING ROADBLOCKS First, the good news: Electronically signed contracts and documents have the same legal, enforceable status as traditional written agreements, meaning e-signatures carry the same weight as “wet signatures.” The federal Electronic Signatures in Global and National Commerce Act (commonly known as E-SIGN) and state-enacted Uniform Electronic Transaction Acts established that “a document or signature cannot be denied legal effect or enforceability solely because it is in electronic form.”

PITTSBURGH I-DAY

WEDNESDAY, MARCH 30TH, 2016 Doors Open at 8:00 AM You Must Be Registered to Attend.

I-Day Events Kick Off on Tuesday for the Presidential Dinner and The Main Event on Wednesday Including CE, Exhibits, Luncheon with Speaker, Panel Discussion with Industry Leaders, and Cocktail Reception.

Now the less than favorable news: Some carriers (and their number is dwindling) insist that signatures be obtained with paper and ink. This is despite the fact that, technically, use of electronic signatures does not require carriers’ approval.

While agents are encouraged to abide by their company partners’ direction, there is an ongoing effort to educate carriers about the benefits – and legality – of e-signature technology. Already (at the time of this writing), 13 of the top 15 U.S. insurance carriers are customers of the e-signature provider DocuSign.

And in a few cases, regional carriers are making use of their own proprietary e-signature platforms.

For a list of carriers that have confirmed their acceptance (or refusal) of electronically executed documents, visit IABforME.com/electronic_transactions/carriers.

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FEATURED LUNCHEON

SPEAKER

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Visit www.insclubpgh.com or Call The Club Office (412.489.5626) to Register, Exhibit, Advertise, or For More Information

FEBRUARY 2016

ost there when it matters most there when it matters

Competitive In today’s crowded marketplace, Donegal remains highly competitive in price and product offering.

Price – Personal and Commercial Lines rates consistently among the most competitive in the state.

Product – Superior products with enhanced coverages.

And Donegal agencies benefit from a total compensation package that’s one of the best in the industry.

Remaining competitive in price, product and agency compensation… another way Donegal is “There When It Matters Most.”

To learn more visit www.donegalgroup.com or call Rick Kelley at 800-877-0600.

FEBRUARY 2016

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5 16

WAYS TO BE

“VISUALLY” DIFFERENT THAN THE AGENCY DOWN THE STREET

By Jeff Teschke

FEBRUARY 2016

As a presenter at our 2015 Executive Management Conference, Jeff Teschke won rave reviews for his actionable insights on technology and marketing.

On the following pages, he provides additional ideas for being different in today’s always-on, 24/7 world.

I

People want to do business with people.

Make sure your website shows happy, smiling employees.

nsurance is like electricity. Or water. Or any other commodity. At least that’s what most “non-insurance” people think, right?

In fact, did you know that the “About” page is usually the No. 1 visited page for agency websites? It’s true. So, make sure (a) you have one, (b) it’s part of a great, mobile-friendly website, and (c) you have photos of happy, smiling employees.

Of course, we know this isn’t true and that one-size policy doesn’t fit all. But, as independent insurance agencies, is it even possible to break through the “save 15 percent” noise to get others outside the industry to see it like we do? I think so.

HELLO PRODUCER™ Here’s a cool one. More and more, your prospects are visiting the agency website to vet the company and learn more.

It’s a sign of the times.

BACK TO BASICS – IT’S ABOUT PEOPLE, RIGHT? I’d argue that it’s all about relationships. Personal, trust-based, in-it-for-the-long-term relationships. After all, isn’t that what you really offer?

With Hello Producer™, each producer (or employee) can send prospects a specialized link that customizes the website with that producer’s contact information and photo. That way, prospects always know exactly who to contact and how.

Over the past 15+ years, I’ve worked with hundreds of agencies across the country. And, fortunately, for most, “relationships” aren’t the problem. Get them in front of someone and they’re golden!

It’s easier seen than explained. First, see what http://www.newagencypartners.com/ looks like. Notice how the generic contact info is at the top right of the website?

However, today, with all of the in-your-face marketing, social media and general “noise” out there, breaking through and getting into a position of establishing those relationships is where most agencies fall flat.

Simply put, the landscape has changed. It’s not like it was when my dad started his career at Chubb in the ‘70s. It’s much different. Much more competitive. Much more confusing. And, let’s be honest, much scarier. Here are a few ideas for being different in today’s always-on, 24/7 world.

Now, check out http://www.newagencypartners.com/#speck.

See the difference? Every page of the website is now customized with Steve Peck’s photo and direct contact information. Pretty cool, right?

YOU, SMILING New flash! Business is about people. So, wouldn’t it make sense to feature your employees on your website? I think so!

It’s simple, isn’t it? People want to do business with people.

And, for independent agencies, this is a huge selling point – especially when compared to 1-800 numbers that most of the big players use.

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• Write articles on LinkedIn’s publishing platform. Click the “Publish a post” button on your main LinkedIn news feed.

A customer or prospect clicks on a flashing dot.

CLICKABLE COVERAGE™ Let’s face it, insurance isn’t sexy. There, I said it. So, how do we get non-insurance prospects and clients to understand and value the proper coverage? Clickable Coverage™ is one idea. It’s a collection of 20+ interactive, visual scenes highlighting common personal and commercial coverage exposures and related solutions. You can try it for yourself by visiting: http://forge3.com/industries/insurance/clickable-coverage/ trustedchoice-com/.

A customized pop-up box explains the risk factor and insurance coverage solution.

Imagine having these scenes on your agency website and sending prospects there to learn more about their risks and related coverage options. With Clickable Coverage™, you can!

Not only is this a cool way to stand out, but it also helps position insurance in the right way. So, rather than focusing on the cost of the policy, prospects focus on their unique risks and ensuring they’re adequately covered.

SHARING CONTENT (WRITING, VLOGGING AND MORE) There’s great power in sharing your expertise in the form of blog articles, social media posts and the like. In fact, there are so many ways to get yourself (and your agency) out there. You could…

• Post status updates on LinkedIn. And, for bonus points, be sure to tag important prospects or clients when you do (just start typing their name). That way, they’ll know you’re thinking of them.

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• Record videos and post them online. Ryan has a great post on that: http://www.agencynation.com/how-to-build-yourown-video-studio-on-budget/.

• Post articles to your agency blog. You do have a blog, don’t you? Not only does this showcase your expertise, but it also helps improve where your website appears in the search rankings. And, even better, it gives you a great resource to use in the future.

SOCIAL PROOF (TESTIMONIALS, “AS FEATURED IN…”) If you’re in a crowd and everyone started running in one direction, you’d probably follow.

As humans, we tend to follow the crowd. The same goes when buying insurance.

People want to see proof that you’re “legit” and that other people have had success with you. To accomplish this, showcase any associations of which you’re a member, publications in which you are featured, testimonials from happy clients and any other “social proof” that makes sense. In doing so, you establish credibility.

HERE’S THE BOTTOM LINE… It doesn’t matter if you embrace some, all or none of these. Life will go on regardless. Whatever you do, though, keep in mind that the future is always different than the past. And I want you and your agency to be part of it. n

Jeff Teschke authored this article. He is founder and CEO of Forge3, Ltd., an award-winning digital marketing company with a strong focus and track record in the insurance industry. He’s been honored as one of the region’s top “Forty Under 40” and continues to be one of the “Top 100 Technology Experts to Follow” on Twitter.

This article originally appeared on AgencyNation.com. Agency Nation, powered by TrustedChoice.com, provides the independent insurance industry with a unique perspective on sales, marketing and automation strategies.

FEBRUARY 2016

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Listed below are those companies that strongly support the independent agency system and Insurance Agents & Brokers.

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FEBRUARY 2016

CLASSIFIED A DV E R TI S E M E N TS

My Events

SOUTHEAST PA PRODUCERS & AGENCIES

February & March 2016 DATE TOPIC

LOCATION

FEBRUARY 2016 2

CISR Personal Lines Miscellaneous

Bethlehem, PA

2

William T. Hold: Choices for Commercial Coverage

Philadelphia, PA

3

William T. Hold: Choices for Commercial Coverage

Newark, DE

3

CISR Personal Auto

Mechanicsburg, PA

16-18

Property & Casualty Licensing Study Course

Mechanicsburg, PA

17

William T. Hold: Condominium Concepts & Coverage

Hagerstown, MD

23-25

Property & Casualty Licensing Study Course

Allentown, PA

24-27

CIC Personal Lines Institute

Harrisburg, PA

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.

MARCH 2016 1-3

Life & Health Licensing Study Course

Mechanicsburg, PA

3

CISR Personal Lines Miscellaneous

Philadelphia, PA

8

William T. Hold: Condominium Concepts & Coverage

Mechanicsburg, PA

14-15

James K. Ruble Graduate Seminar

Ellicott City, MD

16

CISR Agency Operations

Pittsburgh, PA

16-19

CIC Commercial Casualty Institute

Wilmington, DE

30

William T. Hold: Choices for Commercial Coverage

York, PA

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