JUNE 2016 | DELAWARE
FRESH OUTLOOK ON MARKETING AND SALES
HOW TO PULL RANK ONLINE FINDING TIME FOR A SOCIAL PRESENCE
more NIMBLE APPROACH more CREATIVE SOLUTIONS more FLEXIBLE UNDERWRITING more ATTENTIVE SERVICE more SPECIALIZED EXPERTISE This is what we mean by “There’s more for you at Millers.” Millers Mutual is a regional property and casualty insurer serving independent agents with commercial policyholders in PA, DE, MD, VA, OH & DC.
Our focus is Commercial Property Risk with an emphasis on Lessors Risk Only, Residential Real Estate/Habitational Occupancies, Mixed Use Occupancies, Hotels/Motels and Social Clubs. CORE PRODUCTS: • Business Owners Policy • Commercial Auto • Commercial Umbrella • Builders Risk SUPPORTING PRODUCTS: • Employment Practices Liability • Mechanical Breakdown of Boiler and Machinery
800.745.4555 millersinsurance.com Rated A- (Excellent) by A.M. Best Rated A Prime (Unsurpassed) with Demotech ©2016, Millers Mutual Group, Harrisburg, PA
It’s what we know and do best, have the most experience with and greatest expertise in. This enhances our breadth and depth of expertise and helps provide you with the greatest underwriting solutions.
If interested in learning more about Millers Mutual, contact Caroline Raneri, Sales and Relationship Leader, at 717-963-8557.
IN THIS
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HOW TO PULL RANK ONLINE The battle against captives and directs for personal lines and, increasingly, small commercial lines market share is fierce – and more and more often fought online.
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FINDING TIME FOR A SOCIAL PRESENCE Social media engagement is one of the most effective ways for you and your agency to get more traffic and generate new leads. Of course, a big part of the challenge is finding the time.
IN EVERY ISSUE 2 3 4 6 8 10 11 IBC IBC IBC
Chairman of the Board’s Message Ask Our Experts Preventing Errors & Omissions Coverage Corner State News Platinum Profile IA&B Partners Advertiser’s Index My Events Classified Ads
Periodical postage paid at Mechanicsburg, Pa. and at additional mailing offices. Ride-along enclosed. Postmaster: Send address changes to Insurance Agents & Brokers, 5050 Ritter Road, Mechanicsburg, PA 17055. Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2016-6, 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
INSURANCE AGENTS & BROKERS
GO DIGITAL OR GO HOME
5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com
OFFICERS
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Chair of the Board
Robert S. Klinger, LUTCF, CPIA
t’s a brave new world. The Internet is king, and it’s turning everything on its head – insurance sales and marketing included. Like it or not, digital marketing, social media and mobile optimization are here to stay. You can shun the transition, but in time, your book of business will show it. The resistance to change is understandable. After all, our businesses are built on relationships and trust and community. For many of our agencies, our customer roles reveal generations of businesses and families. But I challenge you to consider today’s technology as an opportunity, rather than a threat. Consider how your team can work smarter with digital marketing and analytics. How you can build and enhance relationships over social media. How you can meet customers where they are – including on their phones and tablets. Overwhelmed? You’re not alone. And to you, I offer this advice: Rely on your state agents’ association. IA&B offers the resources, services and professional training to help you transition your sales and marketing strategies. Help is available; you just need to take advantage of it … and of your IA&B membership. Check out this issue of Primary Agent magazine for tips and to learn about IA&B’s investment in a campaign to deliver online referrals to member agencies. Then visit IABforME.com to see the tools you have access to. Reach out to the IA&B staff for help. And make this the summer that you reconsider the role of digital in your agency. n
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.
Douglas A. Loesel, CPCU Erie, Pa.
Crag S. Mader
Gambrills, Md.
Ann Gallen Moll, CIC Reading, Pa.
Mark J. Monroe
West Chester, Pa.
Joseph R. Pastor, CPCU, AAI Oil City, Pa.
Richard M. Rankin, CIC
Best,
Lancaster, Pa.
April E. Ressler, CIC Altoona, Pa.
Scott C. Rogers, CPIA* York, Pa.
Robert S. Klinger, LUTCF, CPIA Chairman of the Board
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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JUNE 2016
Ask Our Experts This month’s answer was provided by Don Bankus, our legal affairs manager.
Question: Is there an age at which a licensed producer becomes exempt from the requirement to take continuing education (CE) in order to renew their license?
Answer:
W
hile the statutes and regulations governing CE requirements vary for our three states, the good news is that each state provides at least some degree of exemption or credit for the seasoned producer. The available exemptions/credits follow. DELAWARE – General requirement: Resident licensees are required to complete 24 credit hours during each 24-month licensing period. Exemption – credit: A licensee who has been continuously licensed for 25 years or longer prior to the start of their licensing period, or who holds an approved professional designation, shall receive an automatic 12 credits in each biennium. Of note: The 12 automatic credits cannot be applied to fulfill any applicable flood (2 hours), ethics (3 hours) or long-term care (3 hours) CE requirement. Applicable statutes/regulations: 18 DE Admin. Code 504, at Section 8.0 – Licensee’s Responsibility
MARYLAND – General requirement: Licensees are required to complete 24 credit hours during each 24-month licensing period.
PENNSYLVANIA – General requirement: Licensees are required to complete 24 credit hours during each 24-month licensing period.
Exemption – credit: If a licensee has held a license for 25 or more consecutive years as of Oct. 1, 2008, the licensee shall only be required to complete 8 hours of CE in each renewal period.
“Grandfathering” exemption: A licensee who was licensed prior to Jan. 1, 1971, and who has been continuously licensed for all lines of authority since that time, is exempt from CE requirements.
Of note: If you qualify for the above exemption, you’re still required to meet the flood (2 hours), ethics (3 hours) and long-term care (2 hours) CE mandates, if applicable.
Of note: If the licensee adds a line of authority, the exemption becomes inapplicable.
“Grandfathering” exemption: In addition, per MIA Producer Bulletin 13-07, licensees who were age 70 or older as of April 30, 2013, are exempt from the general CE requirements. Of note: If you qualify for the “grandfathering” exemption, you’re still required to meet the flood (2 hours) and long-term care (2 hours) CE requirements, if applicable. Applicable statutes/regulations: MD Ins. Code Section 10-116; Code of Maryland Regulations (COMAR) Section 31.03.02.03; Maryland Insurance Administration Producer Bulletin 13-07
Applicable statutes/regulations: 40 P.S. Section 310.8 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
HOW YOUR AGENCY MANAGEMENT SYSTEM CAN HELP MINIMIZE YOUR E&O POTENTIAL By Utica National E&O Program
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n uncovered exposure is typically the number one cause of an agent’s Errors & Omissions (E&O) claim. Therefore, the more exposures an agency insures, the lower the E&O exposure. While virtually every agency focuses on writing new business, the potential to write additional policies is likely within the agency’s current book. Recent industry surveys indicate that, on average, insurance agencies write fewer than1.7 policies per account. The average Personal Lines account has 5-6 policy opportunities at a minimum, so there
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is real potential to write business from within the current book. If you don’t know your agency’s specific numbers, now is a good time to find out. Every agency should have account development strategies that include, among other things, a commitment to identify cross-selling and accountrounding opportunities. GREATER OPPORTUNITIES, GREATER DEFENSE More effective use of your agency management system will help. For example, how can you determine which
JUNE 2016
accounts your agency has with an auto policy and a homeowner’s policy, but no umbrella? Many agency management systems have the capability to identify these customers. By interacting with and marketing to them, you can write more insurance while at the same time minimizing your E&O potential. A recent insurance survey indicated that over 50 percent of renters do not have the proper coverage because they believe their landlord’s insurance covers their personal belongings. This is clearly an opportunity to educate customers and write more business.
On average, insurance agencies write fewer than1.7 policies per account, while the average Personal Lines account has 5-6 policy opportunities at a minimum.
These strategies also provide a greater defense if an E&O claim develops and the customer alleges that you never discussed a specific coverage with them. While not every customer will purchase every coverage suggested, properly documenting discussions and declinations enhances the agency’s E&O protection. Does your agency management system have this capability? If so, is your agency using it to identify gaps in coverage? Many agencies have established campaigns to market to customers who have gaps. This will help to grow your policy count while reducing your E&O exposure. Imagine if your agency added just one more policy per customer over the next year. Remember, too, that the more business you write for each customer, the better your retention will be. A WIN-WIN Another approach worth considering involves looking for cross-selling opportunities every time your agency interacts with a customer. Some agencies provide customer service representatives with a new business incentive for “rounding out” their customers’ insurance programs. Whichever approach your agency considers means greater growth and profitability. This is a win-win for everyone. n
The Utica National E&O Program supplied this article. Our 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.
AGENCY MANAGEMENT SYSTEM OPTIONS IN THIS column, Utica National recommends more efficient use of your agency management system to interact with and market to your customers. Not sure if your agency management system has what it takes (or don’t have a system at all)? Then check out our on-demand “Agency Management System Options for Agencies” webinar series. Facilitated by agency technology expert Steve Anderson, the series includes 13 one-hour recordings of agency management system vendors demonstrating their products. Registration to view the webinar series also includes access to Anderson’s proprietary tool for you to record consistent notes on each presentation and, in the end, make an educated decision. IABforME.com/AMSwebinars Not sure if you’re ready to shop agency management systems? Complete Anderson’s brief, no-obligation survey to help determine if the time is right. Your responses trigger a customized report and recommendations. steveanderson.com/AMSsIAB
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COVERAGE CORNER
ADDITIONAL INSUREDS AND CERTIFICATES OF INSURANCE By Jerry M. Milton, CIC
T
he tug-of-war between additional insureds and the certificates of insurance they are furnished is an unending conflict. It keeps going on, and on, and on. Take, for example, the following Pennsylvania case. Sunrise Concrete was the concrete contractor for a housing development construction project in Pottstown, Pa. Sunrise Concrete subcontracted some of the concrete work, including the construction of porches, to Cruzeiro Novo under an oral agreement. Zhe Feng Huang, an employee of Cruzeiro Novo, was injured while working on a porch
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roof. Huang sued Sunrise Concrete and others for negligence in Pennsylvania state court. Sunrise Concrete’s general liability insurer was Quincy Mutual, who defended Sunrise Concrete against the suit. Quincy Mutual added Cruzeiro Novo’s insurer, Imperium, as a defendant in the litigation, asserting that Sunrise Concrete was an additional insured on Cruzeiro Novo’s general liability policy and that Imperium was therefore obligated to defend Sunrise Concrete.
JUNE 2016
Before Sunrise Concrete permitted Cruzeiro Novo to perform work as its subcontractor, it sought assurance that it was an additional insured on Cruzeiro Novo’s general liability policy. Cruzeiro Novo furnished a certificate of liability insurance that stated, “Sunrise Concrete Company, Inc. is named as additional insured.” The certificate contained the standard warning: “This certificate is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does not amend, extend or alter the coverage afforded by the policies below.”
At the time of Huang’s injury, Cruzeiro Novo’s general liability policy with Imperium contained a blanket additional insured endorsement, which stated: “Insured includes any person or organization that you have agreed in a written contract or agreement to add as an additional insured on this policy, but only with respect to liability arising out of your work for such person or organization.” Because Cruzeiro Novo worked as Sunrise Concrete’s subcontractor under an oral agreement and not a written contract, Imperium asserted that Sunrise Concrete was not an insured under the additional insured endorsement. Quincy Mutual settled Huang’s suit against Sunrise Concrete for $1 million, but reserved its rights against Imperium and filed a declaratory judgment action in the U.S. District Court for the Eastern District of Pennsylvania. Based on the wording of the additional insured endorsement and the fact that the agreement between Sunrise Concrete and Cruzeiro Novo was oral and not written, the district court granted Imperium’s motion and denied Quincy Mutual’s motion. Quincy Mutual then filed an appeal with the U.S. Court of Appeals, Third Circuit. Quincy Mutual argued the district court erred by granting Imperium summary judgment for three reasons. One, the phrase “written contract or agreement” is ambiguous because it could mean “written contract and any (written or oral) agreement.” Two, Imperium was bound by the certificate of insurance issued by its authorized agent, Fairways Insurance Services. Three, the certificate of insurance clearly stated that Sunrise Concrete was named as an additional insured.
The Court of Appeals addressed each of these arguments. The Court gave the following reasons for affirming the judgment of the district court. • Under Pennsylvania law, courts interpret insurance contracts by determining the intent of the parties as expressed by the policy language. If the language is unambiguous, the express terms of the contract are controlling. An ambiguous policy term is construed against the insurer. A contractual provision is ambiguous if it can reasonably understood to have more than one meaning. But a court may not strain or distort the language to find an ambiguity where none exists. • Quincy Mutual argues that the term “written contract or agreement” is ambiguous because it could mean “written contract or (any written or oral) agreement” or “written contract or (written) agreement.” The only reasonable interpretation is that “written” modifies both “contract” and “agreement”. To read it otherwise would render “written” meaningless. The district court correctly interpreted the contract. • Under Pennsylvania law, “an insurer is liable for the acts of an agent who had authority to bind coverage and had advised the policyholder that he had done so.” Fairways did not have the authority to add Sunrise Concrete as an additional insured through a certificate of insurance. The certificate specifically stated that it was for informational purposes only and did not modify the terms, exclusions or conditions of the policy. The statement in the
certificate of insurance that Sunrise Concrete was an additional insured was without effect. Do our insureds and their additional insureds (certificate holders) understand the restrictions found in the various additional insured endorsements (“as agreed in a written contract,” “arising out of the named insured’s work,” caused by or contributed to by the named insured or others acting on the named insured’s behalf”)? Do they know the additional insured endorsement may not satisfy the requirements of the contract or agreement between the insured and the additional insured? Do they understand what a certificate of insurance really is (provided for information only and confers no rights on the certificate holder)? I think the answer to all three questions is, “No.” Y’all take care! 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.
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STATE NEWS
TRUSTEDCHOICE.COM CAMPAIGN CONTINUES TrustedChoice.com anticipates 5 million visitors to the site this year, thanks in part to our IA&B-funded search engine optimization (SEO) campaign. That’s a 64 percent increase in traffic over 2015 … which will lead to even more referrals to member agencies. HOW IT WORKS We’re financially supporting the development of refined SEO techniques – techniques that will improve TrustedChoice.com’s placement in organic (non-paid) search results. Elevating the website’s position in search results drastically increases the chance that online shoppers will find the website and, in turn, its online agency locator.
MEMBER AGENTS TAKE TOP ISSUES TO WASHINGTON, D.C. Several dozen IA&B members from Delaware and Pennsylvania spent a day this spring on Capitol Hill, joining over 1,000 agents from across the country for the annual Big “I” National Legislative Conference. Agents spoke directly to members of Congress about the most important national issues impacting the insurance industry, agents and their clients, including: • Support for a reformed and modernized National Flood Insurance Program (NFIP) • Preserving the Federal Crop Insurance Program (FCIP) • Healthcare issues, including repealing the harmful “Cadillac tax” and removing agent compensation from the Medical Loss Ratio (MLR) formula • Protecting our state-based system of insurance regulation from federal encroachment If you missed this year’s event, look for additional information in the coming months about next year’s conference which will be held May 3-4, 2017.
By March 2016, TrustedChoice.com ranked on page one of search results for almost 13,000 keyword combinations. (For an example, search “auto insurance agent” or “what does business insurance cost.”) Our SEO campaign will elevate TrustedChoice’s placement in organic search results specifically for Delaware community-linked keyword combinations. HOW TO BENEFIT The agencies in best position to benefit from this campaign are those with a TrustedChoice.com Advantage Plan. While all IA&B members – through our affiliation with the Big “I” – are listed at no cost in the TrustedChoice.com agency locator, those with a paid Advantage Plan subscription enjoy a more prominent and extensive agency profile. Nearly 200 IA&B member agencies have a subscription – either for personal lines, commercial lines or a bundled package. IABforME.com/MyBrand
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JUNE 2016
COUNTDOWN TO ANNUAL CONVENTION
INSURANCE REMAINS ON LEGISLATORS’ RADAR
The 59th Annual Convention returns to the familiar surroundings of the Atlantic Sands Hotel on the boardwalk in Rehoboth Beach June 7-8. The big news this year is that the continuing education classes will lead off this year’s agenda rather than close it out.
From addressing ridesharing companies’ insurance requirements to curtailing health insurers’ “surprise” balance billing of consumers, the legislation taking shape in Dover is hitting plenty of hot topics. We’ve been on the scene, keeping producers’ interests in the forefront – even through the hectic election season.
That means Tuesday, June 7 is now Education Day, and everyone attending the CE classes and Annual Awards Luncheon that day will find it more convenient to stay for the Sponsors’ Welcome Reception that same evening. The informal networking will continue late into the night of June 7 at The Summer House. The new agenda also means that our fun day – including our annual golf tournament at King’s Creek Country Club – is now on Wednesday, June 8, the final day of the convention. An alternative day trip is also in the works for non-golfers. This year’s Education Day will include two concurrent CE tracks: a personal lines track led by Steven Lyon, CIC, CRM, CPCU and a commercial lines track led by Jerry Milton, CIC. Each track will include a morning and afternoon session. Agents attending both pay just $20 and earn five CE credits (pending approval).
REFERRAL FEES Senate Bill 116, dealing with several changes to the producer licensing law, went to the governor in late March for his signature. IA&B worked closely with the Department of Insurance (DOI) on this legislation, successfully advocating for changes to the original draft of the bill to clarify that restrictions on referral fees for personal lines policies do not apply to commercial lines. RIDESHARING, PIP We’re working with the Delaware Insurance Group (a group of insurance industry lobbyists) to develop and advocate for legislation dealing with insurance requirements for commercial ridesharing companies in Delaware, as well as legislation to create a medical fee schedule for automobile insurance personal injury protection (PIP) medical and hospital fees.
BACKGROUND CHECKS SB 169, signed into law by the governor on March 17, revises the language regarding the requirement of resident applicants and nonresident applicants for insurance producer licenses declaring Delaware to be their home state to obtain state and federal background checks. The legislation would permit these applicants to obtain both the state and federal background reports directly from the State Bureau of Identification, which will shorten the turnaround time for receipt of these reports. BALANCE BILLING We’re currently evaluating several legislative proposals still in draft form, one of which would address the issue of balance billing of health insurance consumers, occurring when a healthcare provider bills a patient for the difference between what the patient’s health insurance chooses to reimburse and what the provider chooses to charge. Stay tuned to Agent Headlines for updates on these and other issues as the legislative session unfolds.
IABforME.com/DEconvention
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PLATINUM PROFILE
A
ccording to ACUITY’s President and CEO Ben Salzmann, there’s a reason the company has experienced strong sales growth in Pennsylvania since opening its doors for business in the Keystone State in 2010. “Independent agents know they can rely on ACUITY as the ‘go to’ company for the type of business we like to write,” said Salzmann. “We provide agents the products, technology, and services that help them write business with us.” ACUITY’s product portfolio is expansive: a wide array of monoline, package, and portfolio policies, as well as many important and unique coverage enhancement endorsements designed for Pennsylvania accounts. In personal lines, ACUITY provides true tiered rating programs in both auto and homeowners. In commercial lines, ACUITY offers monoline and commercial package policies and business owners (BOP) forms, as well as endorsements designed for target classes of business, such as contractors, truckers, mercantile, and manufacturing accounts. In delivering technology solutions agents can use, no company can claim a stronger commitment than ACUITY, which has earned more awards from ACORD than any other P&C carrier in the nation. ACUITY’s ease-of-business solutions for agents include real-time, online policy quotation and application and automatic issuance and delivery of policies to agents within seconds in both personal and commercial lines. ACUITY’s value-added services for agents include a wide array of educational offerings through ACUITY U. Offered free to independent agents, ACUITY U has provided agents with over 100,000 continuing education (CE) credits through both in-office and online courses. ACUITY’s online courses include The Tale of Two Claims, Ethics: Divergent
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Dilemmas, and CCI: Construction Contracts Investigated, with new courses being regularly introduced. A strong commitment to independent agents has driven ACUITY’s growth in the state. The mutual insurer finished 2015 with $36 million in written premium. Importantly, this has been profitable growth, with the company running a combined ratio of just 93.0 in 2015.
Insurance Agents & Brokers proudly recognizes ACUITY as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.
Additionally, ACUITY knows the bottom line is vitally important to agents. “We pay a lot more in contingent commissions as a percentage of written premium than our peers,” said Wally Waldhart, Vice President - Sales & Communications. With strong growth and profitability, ACUITY offers independent agents remarkable financial stability. A fiercely independent company firmly committed to remaining mutual, ACUITY is also remarkably well-run: the company is rated A+ by both A.M. Best and Standard & Poor’s and has been named to the Ward’s 50 Top Performers for 16 consecutive years. ACUITY also offers independent agents stability in staffing. Ranked the number 2 large company to work for in America, ACUITY maintains a remarkable long-term voluntary turnover of less than 2 percent. As a result of its comprehensive and well-rounded strategy, ACUITY, which generates over $1.3 billion in revenue and manages over $3.5 billion in assets, provides consistency and security in an industry marked by wide market swings and financial uncertainty. “We are a healthy, strong, and truly regional mutual carrier,” Salzmann said. “We are thankful to Pennsylvania agents for the trust they have placed in us, and we are confident in our future thanks to our strong agency partnerships.” n
JUNE 2016
FOCUSED ON RESULTS FEATURED PARTNER
ACUITY PRESIDENT & CHIEF EXECUTIVE OFFICER
Ben Salzmann COMPANY LOCATION
Sheboygan, Wis. A.M. BEST RATING
“A+” (Superior)
PARTNERS PROGRAM
Listed below are those companies that strongly support the independent agency system and Insurance Agents & Brokers. Thank you for your continued sponsorship.
WHAT IS IA&B PARTNERS? The IA&B Partners program gives company and allied businesses the opportunity to demonstrate their commitment of support to independent agents and receive maximum market exposure. As an IA&B Partner, you will also realize the benefits of IA&B membership to help you succeed in the insurance industry.
DO YOU SEE YOUR NAME? To become an IA&B Partner, choose the sponsorship package that matches your commitment of support. Contact the Member Sales Center at 800-998-9644, 717-795-9100 or visit us online at IABforME.com to get started.
PLATINUM LEVEL
BRONZE LEVEL
ACUITY
Aegis Security Insurance Co
Amerisafe
Agency Insurance Company
Berkley Mid-Atlantic Group
AmWINS Program Underwriters Inc
Donegal Insurance Group
ARI Insurance Companies
Erie Insurance Group
Auto-Owners Insurance Company
Harleysville Insurance
Bailey Special Risks Inc
Insurance Agents & Brokers Service Group Inc
Brethren Mutual Insurance Company
Liberty Mutual Insurance
Conemaugh Valley Mutual Insurance Co
MAPFRE Insurance
Countryway Insurance Company
MMG Insurance Company
Encompass Insurance
Millers Mutual Group
Foremost Insurance Group
Mutual Benefit Group
GMI Insurance
Penn National Insurance
Goodville Mutual Casualty Company
Swiss Re
Grinnell Mutual Reins Company
The Main Street America Group
Guard Insurance Group
United Fire Group
HM Workers’ Compensation
Utica National Insurance Group
Insurance Alliance of Central PA Inc
Briar Creek Mutual Insurance Company
Insurance House GOLD LEVEL
Insurance Placement Facility of PA
Progressive
Lackawanna Insurance Group
Westfield Insurance
Lebanon Valley Insurance Company Merchants Insurance Group
SILVER LEVEL
Access Insurance Company American Mining Insurance Co Cumberland Insurance Group Farmers Mutual Insurance Company of Western Pennsylvania
Mercury Casualty Millville Mutual Insurance Co PennPRIME Municipal Insurance Reamstown Mutual Insurance Company Rockwood Casualty Insurance State Auto Mutual Insurance Company
Frederick Mutual Insurance Co
TAPCO Underwriters Inc
Juniata Mutual Insurance Co
The Motorists Insurance Group
Keystone Insurers Group Inc
The Mutual Service Office Inc
PSBA Insurance Trust
Travelers
Selective
Tuscarora Wayne Group of Companies
The Philadelphia Contributionship
Zenith Insurance
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JUNE 2016
HOW TO
PULL RANK O N LI N E THE BATTLE FOR TOP SEARCH RESULTS
The battle against captives and directs for personal lines and, increasingly, small commercial lines market share is fierce – and more and more often fought online. But thanks to a new strategy, we’re poised to fight fire with fire and stake claim to Internet search results. 13
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ike it or not, our industry is susceptible to the technological and societal shifts of the information age. And with these drastic changes come new challenges. It’s not enough to have a web presence. Now to capture the attention of the ever-increasing number of online insurance shoppers, you need a web strategy. Take, for example, the latest statistics from comScore and ProtoFuse, and crunch the numbers hypothetically: 100 people are in the market for personal auto insurance 71 of them start their search for an agent online 7 of those 71 view search results beyond page one 1 of those 7 view search results beyond page two OK, now Google your hometown and “auto insurance.” Where does your agency fall within the search results? Does your agency show up at all? Welcome to 2016, where the Internet’s hierarchy is king.
IA&B is financially supporting the development of geo-targeted content for communities throughout Pennsylvania and Delaware. Already the campaign is delivering results – both traffic to and lead referrals from TrustedChoice.com.
Even the dynamics within the commercial lines insurance marketplace – independent agents’ home turf – are shifting. According to McKinsey & Company, nearly 70 percent of small business owners now start their insurance shopping process online.
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JUNE 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.
HOW TO HANDLE INTERNET REFERRALS TRUSTEDCHOICE.COM estimates that agency leadership never learns about the vast majority (upwards of 99 percent) of referrals from the website. Here are six tips for handling leads: 1. Educate your entire staff on what TrustedChoice.com is and how important it is to respond to referrals in a timely fashion. 2. Create a priority phone tree for your agency so that staff members receiving inbound referrals from TrustedChoice.com know who should handle these calls. (Inbound referrals sent to voicemail have a significantly lower conversion rate.) 3. Make sure that multiple staff members regularly check the inbox to which TrustedChoice.com inbound referral emails are sent. 4. While it’s the prerogative of inbound referrals to select which contact type they prefer, reach out using all available methods of communication to ensure a higher contact rate. 5. Cross-sell, cross-sell, cross-sell. 6. Verify with staff that the inbound referral source is being tracked and reported to management. What’s more, it’s critical that your staff drills down to determine exactly where a caller heard about your agency. Many TrustedChoice.com visitors find a local agency and then contact the agency directly – via phone or email – rather than go through the TrustedChoice.com connection.
Despite the less-than-promising outlook for the independent agency system that some (ahem, McKinsey) portend, all is not lost. And while, admittedly, the movement to unite the independent agency system has had its share of ups and downs, the renewed focus of Trusted Choice – to strengthen brand awareness and build a competitive online presence – meets an urgent need within the independent agency system to attract consumers and retain market share. And this new direction is showing great promise and already delivering results. (Just ask the Dover, Del. agency that received 23 personal lines referrals from TrustedChoice.com in three months, or the Philadelphiasuburb agency that received the same number of commercial lines leads in that time.) THE ONLINE BATTLEGROUND TrustedChoice.com is gaining traction through an array of tactics: robust website content that triggers organic search results, integrated social networking, public relations campaigns, payper-click Internet ad buys, and even traditional ad buys. Five million visitors are anticipated to visit TrustedChoice.com this year. That’s a 64 percent increase in traffic over 2015, which will lead to even more referrals to member agencies. In fact, IA&B is funding a campaign to help TrustedChoice.com use refined search engine optimization (SEO) techniques designed specifically to bring traffic from Pennsylvania and Delaware consumers to the site. The goal? To improve TrustedChoice.com’s organic search results. That means the chance that online shoppers will find the website – and, in turn, its online agency locator – by elevating the website’s position in non-paid search results. STRATEGY AND TACTICS Without getting too technical, here’s a high-level work at how the SEO techniques work to elevate the website’s rank in search results. Value-added content The first way TrustedChoice.com is driving traffic to its site is by incorporating value-added content. Google and other search engines judge website content by its quality, depth and uniqueness and rank websites accordingly. By March 2016, TrustedChoice.com ranked on page one for almost 13,000 keyword combinations. For example, Google “auto insurance agent” or “what does business insurance cost.”
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Geo-targeted content The second way TrustedChoice.com is elevating its position in search results is by adding community-linked keyword combinations. This allows the website to rank higher based upon an online shopper’s geographic location and search criteria. For an example of this technique in action, check out the organic search results for “homeowners’ insurance South Bend.” As your state association, IA&B is financially supporting the development of geo-targeted content for communities throughout Pennsylvania and Delaware. By fall 2016, insurancerelated searches for those communities will receive elevated results, ideally the top – or close to it – non-paid spot. (In addition, throughout this process, don’t be surprised to find TrustedChoice.com among Google’s paid search results from time to time. It’s all part of the intricate plan to help boost the site’s SEO.) Search results for geo-targeted content, “Newark home insurance policy”
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GET NOTICED ON TRUSTEDCHOICE.COM IF YOU think of TrustedChoice.com as the front door to your agency for online shoppers, think of an Advantage Plan subscription as your way of opening the door and inviting them in for a quote. While all IA&B members – through our affiliation with the Big “I” – are listed at no cost in the TrustedChoice.com agency locator, those with a paid Advantage Plan subscription enjoy a more prominent and extensive agency profile. Nearly 200 IA&B member agencies have an Advantage Plan. Subscription options include personal lines, commercial lines or a bundled package. IABforME.com/MyBrand (“Web Presence”)
Already the SEO campaign is delivering results – both traffic to and lead referrals from TrustedChoice.com. The states (Pennsylvania, Delaware and eight others) where TrustedChoice.com is piloting the effort saw a 56 percent increase in referrals to agencies, compared to a 6 percent increase in other states. This campaign is an investment in our member agencies, particularly those with Advantage Plan subscriptions, which are best poised to benefit from TrustedChoice.com traffic. (See the sidebar on left to learn more about Advantage Plans.) And it’s a follow-up to our 2015 digital advertising buy, which elevated brand awareness and drove traffic from Pennsylvania and Delaware to TrustedChoice.com. OUR BATTLE CRY If you’ve heard it once, you’ve heard it a thousand times: the broken-record of doomsday prognoses for the independent agency system. Consumers are flocking to the Internet. Captives and directs have the competitive advantage. Our market share is slipping. The end is near. While some of these statements are based in fact, they only tell half of the story. Yes, the majority of consumers do begin their search for insurance online, but a significant portion of them (74 percent according to comScore) still want to buy from an agent. Yes, captives and directs easily can outspend us to advertise online (or to advertise anywhere, for that matter), but we have found our own online ace in the hole – rank in the more powerful, organic (non-paid) search results. Bottom line: We’re engaged in an online turf war, and the competition is fierce. But all is not lost. Collectively, independent agents are a resilient and, when needed, scrappy group. We will fight a good fight and together stake our claim to the insurance market. n
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FINDING TIME
FOR A
SOCIAL PRESENCE
TIPS FOR THE BUSY EXECUTIVE By Steve Anderson, CIC
Leveraging an owner’s online presence to build and promote the agency’s identity is a no-brainer. But finding the time for an owner to oversee his or her social media accounts is something altogether different. On the following pages Steve Anderson shares his go-to resources for managing an online presence without sacrificing time.
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S
ocial media engagement is one of the most effective ways for you and your agency to get more traffic and generate new leads. Agency owners – for both large and small organizations – are the “face” of the organization. An effective social platform marketing strategy should contemplate using the owner’s name and face as part of the marketing program. This means that they need to leverage their personal sites to help build awareness. Comments from company executives will help communicate the organization’s mission and vision to internal staff as well as prospects, clients and insurance company personnel. Mastering your Internet presence will help you, and your team, be more visible to the increasingly online consumer. Consumers now use smartphones and tablets to interact with businesses 24/7, from anywhere at home, at work, or on a bus. It is critical that your company define its value proposition through a mobile lens by determining exactly how your target audience wants to engage with your brand on multiple devices.
Comments from company executives will help communicate the organization’s mission and vision to internal staff as well as prospects, clients and insurance company personnel.
Of course, a big part of the challenge is finding the time. Following are some thoughts on steps you can take to manage and master your online presence – without requiring a store of
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extra hours in your day. Taking just a few of these steps will help you and your organization be visible to the online consumer. USE THE RIGHT TOOLS Having – and using – the right social platform management tools is essential for keeping up a presence on all the major platforms such as LinkedIn, Facebook, Twitter and Google+. Tools that allow you to automate status updates on various platforms enable you to promote your latest content to all of your social networks with a minimum investment of time and effort. There are many solutions that can automatically improve your website articles, as well as other content, to your social media networks. Following are a few of the most popular…. BUFFER APP Buffer (https://buffer.com) is one of the easier to use and less expensive tools to automate postings to your social platforms. This is the tool I am currently using, and I love its clean and easy-to-use interface. It will post updates to your LinkedIn agency page, LinkedIn Groups, Facebook, Twitter, Google+ page and Pinterest. Buffer allows you to create a schedule for when updates will be posted to your social platforms. For instance, on Mondays through Fridays, I post updates three times during the day. On weekends, I post two updates on Saturday and no updates on Sunday. This gives you complete control over when and how often updates post to your various accounts. You can add updates to your Buffer account using their website, as well as their iPhone app, Android app, and Chrome, Firefox and Safari browser extensions. Buffer’s built-in analytics allows you to find the times of day that your post gets the most engagement and the type of topics your audience likes the most. This helps you better understand what kind of content you should include in future updates. Buffer has a free version that allows you to post up to 10 updates per day, as well as several paid tiers depending on your particular needs. HOOTSUITE Hootsuite (https://hootsuite.com) is a very popular service that has similar features to Buffer. In addition to being able to schedule posts to multiple social platforms, Hootsuite excels in allowing you to view the activity on your various social channels. When it comes to social networking support, Hootsuite has a wider coverage than Buffer.
Hootsuite allows you to post automatically to a broad range of platforms. These include: Facebook groups/profiles/business pages, LinkedIn company pages/groups, Google+ pages, Twitter, Foursquare, WordPress sites, as well as YouTube, Flickr, Instagram, Tumblr and Blogger. Hootsuite also tracks your post analytics so you can determine how people share posts. For example, if someone shared a post on your site using Hootsuite, you’ll be able to track that they used Hootsuite to re-share your post. Hootsuite also has a free version (that I am currently using) and a Pro version with pricing that starts at $8.99 per month (with discounts for an annual payment). With the basic account, you’ll have message scheduling and can set up five social networks. The pro version has unlimited social networks, atom feeds and stats history. It also allows bulk scheduling. For personal and professional use, this auto-posting tool is worth a try.
LOOK BEFORE YOU LEAP LEVERAGING SOCIAL media for your agency must be a strategic venture. For commerce to happen online, consumers must trust the brands they engage with. And nothing destroys trust and credibility inside social media like jumping on the bandwagon, only to fall off, leaving an inactive profile. Check out the time-saving resources mentioned in this article to help you make a serious, consistent commitment. Then find additional tips in the IA&B Branding Center. Online resources include: • Guide to choosing social media channels • Member agency profile • Ready-to-share content • Social web policy information IABforME.com/MyBrand (select “Social Media”)
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HOW AND WHEN TO ENGAGE Once you begin using one of the tools described above you will be able to create activity consistently on your social platforms without feeling like you are spending hours doing it. Here’s my strategy for engaging with people on the social platforms where I am active. Daily: Interact with your news feed. Install the mobile apps for the various platforms where you are active. Take a few minutes between appointments to open the apps and look at the activity in the news feed. Simply clicking “like” on a comment someone has made or typing out a short comment will significantly increase your engagement with these people. Weekly: Using one of the above tools, take 30 minutes to an hour to set up a schedule of posts for the following week. This allows you to spend concentrated time to make sure you have posts going out on a regular basis. Then, if anything particularly interesting comes up, feel free to post that one comment on multiple sites. 7.5X4.625
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Monthly: Schedule time monthly to review your profiles on all of your social platforms to make sure they are current. Review and contribute to any comments on groups you are part of such as
LinkedIn, Facebook and Google+. In addition, reach out to any old contacts that you might want to connect with on LinkedIn. Engaging on social platforms is becoming an essential skill for executives to use to create an engaging brand for their organization. While you may have staff who manages this for the whole organization, it is important for the executives who are the “face” of the organization to also be active. This type of engagement and activity on your social platforms can bring new visitors to your website and help improve your overall search rankings. However, perhaps more importantly, it will help you and your team to be more visible to the new online consumer. n Steve Anderson, CIC, authored this article. Steve is an authority on insurance agency technology, productivity and profitability – and the facilitator of our “Agency Management System Options for Agencies” webinar series (IABforME.com/AMSwebinars). Check out his free weekly newsletter, “TechTips,” and other resources for the insurance industry at steveanderson.com.
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JUNE 2016
CLASSIFIED A DV E R TI S E M E N TS
My Events
SOUTHEAST PA PRODUCERS & AGENCIES
JUNE & JULY 2016 DATE TOPIC
LOCATION
JUNE 2016 1
CISR Commercial Casualty II
Altoona, PA
2
CISR Elements of Risk Management
Mechanicsburg, PA
6-7
James K. Ruble Graduate Seminar
Annapolis, MD
7
CISR Personal Lines Miscellaneous
Pittsburgh, PA
7-8
DAIAB Convention
Rehoboth Beach, DE
7-9
P&C Licensing Study Course
Bethlehem, PA
8
William T. Hold: Commercial Coverages
Lancaster, PA
14
CISR Commercial Casualty I
Hagerstown, MD
14
*CPIA Position for Success
Mechanicsburg, PA
15
*CPIA Implement Success
Mechanicsburg, PA
16
*CPIA Sustain Success
Mechanicsburg, PA
16
CISR Life & Health
Pittsburgh, PA
21-23
P&C Licensing Study Course
Mechanicsburg, PA
21-24
CIC Life & Health Institute
Lancaster, PA
29
Contracts & Leases
Philadelphia, 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.
*Attend all three CPIA seminars to earn the CPIA designation. JULY 2016 6
CISR Personal Residential
Mechanicsburg, PA
7
CISR Personal Lines Miscellaneous
Baltimore, MD
7
CISR Personal Residential
Wilkes-Barre, PA
11-12
James K. Ruble Graduate Seminar
Allentown, PA
11-14
CIC Personal Lines Institute
Erie, PA
12
PA Auto Coverages—Avoiding E&O Potholes
Lancaster, PA
13
Contracts & Leases
Newark, DE
19
William T. Hold: Condo Concepts & Coverage
Frederick, MD
20
CISR Personal Auto
Philadelphia, PA
20
William T. Hold: Condo Concepts & Coverage
Mechanicsburg, PA
20
E&O Risk Mgmt.—Meeting the Challenge of Change
Dover, DE
20-23
CIC Commercial Casualty Institute
Pittsburgh, PA
26
Understanding Flood Insurance
Salisbury, MD
26
Who, What, When, Where & Why of Workers’ Comp
Pittsburgh, PA
27
CISR Agency Operations
Philadelphia, PA
27
E&O Risk Mgmt.—Meeting the Challenge of Change
Erie, PA
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