JUNE 2016 | MARYLAND
FRESH OUTLOOK ON MARKETING AND SALES
ROAD TO SALES SUCCESS 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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ROAD TO SALES SUCCESS Learn 8 common traps to avoid when sales are in a slump.
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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
STRENGTHEN YOUR AGENCY THIS SUMMER
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INSURANCE AGENTS & BROKERS 5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com
OFFICERS Chair of the Board
Robert S. Klinger, LUTCF, CPIA
n one way or another, sales is a struggle in many agencies. For some, it’s an under-producing producer. For others, it’s the lack of replacements for an aging sales team. And for still others, it’s front-line staff who are uncomfortable with the role of sales in customer service. For all of the different challenges, the result is the same: an underperforming agency. If you can relate, 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 overcome many operational struggles – sales included. For example, take the proprietary agency management tools, the new jobs board, and the latest sales trainings (including at the upcoming conference for young agents and recent conferences for CSRs). There is help available to address your agency’s sales struggle. 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 tools. Then visit IABforME.com to see everything you have access to. Reach out to the IA&B staff for help. And make this the summer that you address those sales struggles and strengthen 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
Best,
West Chester, Pa.
Joseph R. Pastor, CPCU, AAI Oil City, Pa.
Richard M. Rankin, CIC Lancaster, Pa.
Robert S. Klinger, LUTCF, CPIA Chairman of the Board
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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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
MARYLAND GENERAL ASSEMBLY WRAP-UP That’s a wrap: The 436th session of the Maryland General Assembly adjourned late in the evening on April 11. Although the biggest issue of the year – acrossthe-board income tax reduction – was left unresolved due to in-fighting among Democratic leaders, we successfully advanced the interests of agents and brokers on several fronts.
HOW ‘HOME STATE’ IMPACTS PRODUCER LICENSING State lines create common tripping hazards for producer licensing. The producer licensing laws in Maryland define “home state” as where a producer: • Maintains a principal place of residence or principal place of business and • Is licensed to act as a resident insurance producer The home state is the resident state and where continuing education is fulfilled. A producer cannot rely on an agency license in lieu of obtaining a proper individual resident license. What this means is that if you live in Maryland and work in Delaware, you can choose either one as your home state. If you move (or change employers) and suddenly you work and live in the same state, that state must become your home state, and you must secure a resident license there. You have a limited time to switch your resident state if you want to be exonerated from the licensing exam. Our online licensing resources include answers to frequently asked questions about changing a home state: • What if I live in one state but work in another? • What’s the process to receive a new resident producer license? • What do state regulators require as proof of residency?
CURTAILED CONCERNING BILLS Additionally, several pieces of legislation that we either publicly opposed or had reservations about died in the General Assembly this year, including the: • Requirement for employers to provide employees with specified earned sick and safe leave (HB 580/SB 472) • Requirement for insurers to send a Joint Insurance Association notice not only in the event of a non-renewal but also in the event of declining a new applicant; since
IABforME.com/resource_center/licensing/home_state
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PASSED OUR LEGISLATIVE PRIORITY Throughout the session, your IA&B government affairs team maintained a daily presence at the State House and achieved a major victory with the passage of our legislative priority to amend the commercial premium increase notification requirement. House Bill 1408/Senate Bill 851 amends the requirement as of Oct. 1, 2016, restoring a single notification threshold for commercial renewal premium increases of 15 percent. The legislation removes the current unworkable formula and clarifies that insurers may comply with the law by sending a complete renewal policy 45 days in advance.
JUNE 2016
notice requirements often fall on agents, we worried that this would create an additional burden when an independent agent is unable to find another carrier to write the risk at the time of application (HB 395) • Requirement for carriers, and thus agents, to offer enhanced uninsured motorist coverage; we had numerous E&O concerns related to this trial bar initiative (HB 667/SB 553) MONITORED UM LEGISLATION We have long been involved in efforts to address the state’s uninsured motorist population and currently hold a seat on the Task Force to Study Methods to Reduce the Rate of Uninsured Drivers established by the legislature in 2014. This year several pieces of legislation intended to address the UM rate were passed by the legislature, including bills that will: • Require the driver of a motor vehicle to carry proof of insurance while operating the vehicle; violators are subject to a $50 fine which may be waived but, if collected, must be deposited into the Uninsured Motorist Education and Enforcement Fund established by the bill (HB 720/SB 544) • Exempt an applicant for a motor vehicle liability insurance policy from being required to obtain coverage for personal injury protection (PIP) benefits; the Maryland Automobile Insurance Fund must offer the option to reject PIP coverage to an eligible applicant while other insurers may do so; the initiative is intended to provide a way for
motor vehicle liability insurance applicants to lower their premiums (HB 900/SB 784) • Establish the Program to Incentivize and Enable Vehicle Owners to Be Insured; the Motor Vehicle Administration will administer the program to include: o Waiving 80 percent of a vehicle owner’s delinquent uninsured vehicle penalties that became delinquent before Jan. 1, 2014 o Requiring those vehicle owners to purchase and maintain the required security for their vehicles (HB 912/SB 888)
P&C EXAM PREP: MORE FROM MENTORS A mentor can make all the difference for someone preparing for the Maryland insurance licensing exam. That’s why our new self-study manual includes a mentoring guide with strategies, schedules and sample questions for a seasoned producer to use when helping an aspiring agent. Our Maryland Property & Casualty Pre-Licensing Manual provides would-be agents with insight into the questions they should be prepared to answer when taking the exam. It explains the entire test process – from registration through test-taking tips – and provides a study schedule, as well as the aforementioned mentor guide. The pre-licensing package is $169 for IA&B members and $189 for non-members.
FINALIZED REG AMENDS SL CONSUMER DISCLOSURE The state’s surplus lines consumer disclosure includes new language as of May 18. The Maryland Insurance Administration finalized its amendment to Regulation .09B of COMAR 31.03.06 to advise consumers that surplus lines insurance products are not covered by the Maryland Life and Health Insurance Guaranty Corporation. Insurance.Maryland.gov
MEMBER MEETINGS IN REVIEW We send our sincere thanks to the agency owners and principals who attended our member meetings in May. Participants shared with IA&B senior management their operational challenges and discussed potential solution paths – information that now goes to our boards of directors, where leadership will consider how our organization can best address member agencies’ needs. Watch Agent Headlines and Primary Agent for updates.
WELCOME NEW MEMBERS 7 C’S INSURANCE CORPORATION Catonsville, MD
IABforME.com/self-study
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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
ROAD TO SALES
SUCCESS
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COMMON TRAPS TO AVOID
By John Graham
As most salespeople know, moving forward is tough, but changing our behavior can help knock down obstacles. Here are eight ideas to get the wheels moving in the right direction.
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N
o matter what we sell, there are times when the brakes are on. Something is holding us back, keeping us from moving forward. Then, we feel even worse when hearing about someone who gets ahead by overcoming unspeakable adversity. “You can do it. Just change your thinking.” It sounds easy and most of us have tried it dozens of times. And it works – for about five minutes. As most salespeople know, moving forward is tough, but changing our behavior can help knock down obstacles. Here are eight ideas to get the wheels moving in the right direction: 1. Get over easy. Next to free, easy has earned a permanent place in the operation of every business – when placing orders, answering inquiries, handling complaints, simplifying procedures, and cutting out what’s complicated.
Moving forward is tough, but changing our behavior can help knock down obstacles.
But easy can also be an enemy. Instead of taking time to cultivate and engage prospects, just grab the phone and make phone calls – that go nowhere. That’s easy. “I’ll take care of it tomorrow,” we say. That’s easy, too. So is ignoring details and deadlines. Ignoring promises is easy. Not getting back to people quickly is easy, too. Taking it easy has its reward; it leads to a dead end.
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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.
SALES TRAINING FOR YOUNG AGENTS HAVE FLEDGLING producers (or are you one yourself) who could use a sales boost? Our inaugural Futures Conference, set for Sept.15-16 at the Chubb Conference Center outside of Philadelphia, will feature “Four Generations of Customers – Four Approaches to Selling.” Giselle Kovary of n-gen – whose clients include Freddie Mac, Olive Garden and Chevron, among others – will present the foundational sales workshop. The IA&B Futures Program is devoted to developing today’s young agents into tomorrow’s leaders. Insurance agency staff who are under the age of 40 are encouraged to join with the goals of connecting and collaborating with one another and expanding their professional network. IABforME.com/Futures
2. Turn off the autopilot. Perhaps the biggest temptation in business is to get to the point where we know the routines, the expectations, the nuances, and the people so that we don’t need to think. As one 40-year-old said, “I know my job.” You can call this getting through the day on autopilot – avoiding change, ignoring challenges, and never putting ourselves to the test. We’re efficient, predictable, and we do our job. And without even knowing it, we paint a clear picture of ourselves for everyone to see – one that stops us from moving forward. 3. Develop doubt. Sales gurus say it takes a strong dose of self-confidence to succeed in sales. While self-assurance is necessary, it may also send a message to customers that a salesperson is arrogant. What’s needed is a balance so we can clearly understand what’s going on with customers. Doubt does that by keeping us sharp, alert, and always on our toes. How many times do we say, “I should really have picked up on that issue,” or “I wish I thought of that,” or “What could I have done to improve the proposal?” That takes digging down and asking questions. It takes doubt. 4. Avoid self-inflation. In a word, overestimating our competence is both common and dangerous. It’s so easy to push aside or ignore anything that makes us uncomfortable about ourselves. That’s why we are shocked when passed over for an expected promotion, upset when we thought we aced the interview, or find it hard to believe the participants gave us a low rating on yesterday’s presentation, the one we were sure went great. Although “enhancing” a resume may seem dishonest, many of those who do it believe they were telling the truth. In fact, most of us have a hard time seeing ourselves as we are, which may be close to impossible. That’s why getting an objective opinion is critical in becoming the people and workers we want to be. 5. Stop winging it. Bluntly, when we didn’t take the time to prepare and are winging it, it’s what they remember about us. Simply put, winging it is dangerous to one’s career health. Instead of winging it, it’s much better to be a winner. Even if there’s only a few minutes to write a memo, an important email, or plan a presentation, it can be done. There’s no need to get
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nervous and anxious and make a mess of it. To be prepared and never need to apologize, put this formula on your smartphone so it’s always nearby: • Main Idea: Lowering prices will backfire on us • Supporting Ideas: 1. We can’t raise our prices later. 2. Competitors will say we’re in trouble and use it against us. 3. We will lose credibility with our customers. • Action Idea: Rather than lower prices, we can: 1) Enhance our guarantees; 2) Provide an app that simplifies ordering; and 3) Post a video with customers describing how we have reduced costs and improved reliability.
In sales, there’s nothing as valuable as gathering and putting together pieces of intel, making the connections and discovering the patterns.
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6. Never say no. When opportunities come up or you see the possibility of taking on a project or responsibility, never say no. Most of us would like to say yes, but venturing into the new and unknown holds us back. “I’d like to, but I’m too busy right now,” we say. So much for excuses. If you want to move ahead, put yourself on the line and say yes. Then, come up with a plan and figure out how to do it. You’re not alone; there’s always help. 7. Ditch the dated. No question about it, experience has value. It helps in spotting problems, seeing possibilities others miss, and avoids making “beginner’s mistakes.” Even so, there’s another side to experience. We can give it too much weight. When we do, our skillsets and knowledge base fall behind. That’s when
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we convince ourselves that our experience makes up for it. It doesn’t work. Change is so swift, it’s easy to become “dated.” To stay current takes a consistent effort. Moving forward takes a combination of both experience and present knowledge. 8. Listen closely. Jeff Short is a listener. And it’s one reason why he’s the successful VP of Sales at K&W Tire, a wholesaler, based in Lancaster, Pa. He wants to know what his sales team says about the competition. But Jeff doesn’t just listen – he listens for patterns. “You nibble a big enough piece of somebody else’s pie, and you have to be ready when they come back after you,” he says. “Sometimes ‘price’ is a big factor but many times it’s way down the list. Lots of little buying signals jump out at me ... years of listening closely.”
JUNE 2016
In sales, there’s nothing as valuable as gathering and putting together pieces of intel, making the connections and discovering the patterns. While a positive mental attitude is always good, it takes something more to propel salespeople forward. It takes the right actions. n
John Graham of GrahamComm is a marketing and sales strategist-consultant and business writer. He publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@ grahamcomm.com, 617-774-9759 or johnrgraham.com.
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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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JUNE 2016
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 ready-to-share content in IA&B’s consumer education library – which now includes expert answers to frequently asked questions about 20 personal lines and commercial lines topics. IABforME.com/consumer-education
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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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