ALSO IN THIS ISSUE: A case study in Work At Home Vintage Employees Company Satisfaction Index by the numbers
There When It Matters Most for 125 Years For 125 years Donegal has been there when it matters most when it comes to our policyholders and our support of the independent agent system. Today, Donegal continues to remain a better value for insureds and independent agents. E
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Price - Personal and commercial lines rates consistently among the most competitive in the state.
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Product – Superior products with enhanced coverages. And Donegal agencies benefit from a total compensation package that’s one of the best in the industry.
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Remaining competitive in price, product and agency compensation… another way Donegal is “There When It Matters Most.”
To learn more visit www.donegalgroup.com or call Rick Kelley at 1-800-877-0600.
there when it matters most
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Contents PRIMARY AGENT MAGAZINE
The four Cs of beginner content marketing
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Beginner content marketing techniques create the foundation of our online presence. Think of your online presence as a building. Before we can do the fancy trim work, we must first dig a hole and put in a foundation. Before we can put in the foundation of our online presence, we must understand the beginner content marketing techniques and concepts that guide our work.
Page 12 A case study in Work At Home Vintage Employees Let’s face it: When you need a helping hand around the agency, calling up the local temp service isn’t an option. And outsourcing beyond the United States doesn’t meet everyone’s comfort level. Enter Work At Home Vintage Employees.
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18 Mission Statement Primary Agent delivers ideas to help Insurance Agents & Brokers’ members negotiate their unique position as guardians of trust between insurance consumers and companies while facing the challenges of maintaining a small business. Primary Agent also supports IA&B’s mission to preserve and advocate the American Agency System.
Get social with IA&B
CSI by the numbers Our annual Company Satisfaction (CSI) survey — which this year focuses on personal lines carriers — is a gauge of members’ collective experiences with carriers’ products, underwriting, claims and technology. Here, we offer a quick look at what it’s all about – and why you should care.
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In every issue 3 4 5 6 8 10
My Events Chair of the Board’s Message Ask Our Experts State News Preventing Errors & Omissions Coverage Corner
21 22 IBC IBC IBC
IA&B Partners Technology Update Advertisers Index Classified Ads Last & Least
All communications for publications, including news, features, advertising copy, cuts, etc., must reach the editor by 1st of month two months prior to publication. Advertising rates furnished upon request. Address inquiries to: Primary Agent Editor 5050 Ritter Road Mechanicsburg, PA 17055-0763 Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347 Periodical postage paid at Mechanicsburg, Pa. and additional entry post office. Postmaster: Send address changes to above address. Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2014-5 is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2014. 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 is 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 and 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 the 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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My Events M A Y
Date
2 0 1 4
Topic
Location
6
William T. Hold: Dealing with Disasters
Wilkes-Barre, PA
6-8
P&C Licensing Study Course
Mechanicsburg, PA
7
William T. Hold: Dealing with Disasters
Lehigh Valley, PA
CISR Commercial Property
Pittsburgh, PA
7-10
CIC Commercial Property
Hunt Valley, MD
8
CISR Agency Operations
Philadelphia, PA
13
CISR Commercial Property
Baltimore, MD
CPIA Position for Success
Mechanicsburg, PA
13-15
P&C Licensing Study Course
Pittsburgh, PA
14
CPIA Implement for Success
Mechanicsburg, PA
Insuring Contractors Seminar
Lehigh Valley, PA
15
CPIA Sustain Success
Mechanicsburg, PA
15-16
James K. Ruble Graduate Seminar
Philadelphia, PA
20
CISR Commercial Casualty II
Lancaster, PA
21
CISR Commercial Casualty I
Reading, PA
29
William T. Hold: 3Cs—Comp, Crime & Cyber
Salisbury, MD
MAY 2014
Insuring Contractors
Timely topic presented by coverage expert Jerry Milton, CIC Insurance for contractors can be a lucrative segment of your book of business. This course reviews various property and liability exposures and discusses the policies needed to adequately insure contractors. Certain coverages are very much open to interpretation by the courts, and over the past several years there have been significant changes through rulings (including cases such as Kvaerner and Gambone) as well as ISO policy form updates. Dates & Locations May 14 – Lehigh Valley, PA June 3 – Philadelphia, PA
June 11 – Baltimore, MD July 22 – Pittsburgh, PA
August 13 – Mechanicsburg, PA August 14 – Newark, DE
For more information or to register, visit IABforME.com/contractors
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Board of Directors Officers G. Greg Gunn, CIC Chair of the Board Lemoyne, Pa. Diana M. Hornung Hanby, ACSR Vice Chair of the Board Wilmington, Del.
G. Greg Gunn, CIC
Chair of the Board’s M
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Norman F. Basso, CPCU Immediate Past Chair of the Board York, Pa.
Members
The speed of spring
Henry “Butch” Bradley, Jr. Forest Hill, Md.
The increasing tempo of life in spring carries through to almost everything — work, leisure, even politics. As this issue of Primary Agent magazine reaches your desk, the 2014 legislative session will have just ended in Annapolis. But that doesn’t mean that activity has ceased. It’s in the “off season” when studies are conducted, relationships are forged and ideas are shared.
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. John L. Frankenfield Telford, Pa. John B. Hollister Milford, Pa. Jocelyn R. Howard-Sinopoli, CIC, CISR Butler, Pa. Robert S. Klinger, LUTCF, CPIA+ Germantown, Md. Douglas A. Loesel, CPCU Erie, Pa. Michael F. McGroarty Sr. Pittsburgh, Pa.
As you may have noticed by this point in my chairmanship, I am keenly interested in what happens in the state Capitol. I’ve been in this business and involved in this association long enough to know that what happens in Annapolis doesn’t stay there but trickles down to impact independent agents and their customers throughout the state on a daily basis. And I’ve also been around long enough to understand the importance of AgentPAC — the association’s political action committee – in building rapport and opening doors for the IA&B government affairs team.
Craig S. Mader Gambrills, Md.
So this spring, I encourage you to move quickly ... to support AgentPAC and, in turn, the future of our industry.
Ann Gallen Moll, CIC Reading, Pa.
Until next time,
Joseph R. Pastor, CPCU, AAI Oil City, Pa. Richard M. Rankin, CIC Lancaster, Pa. April E. Ressler, CIC Altoona, Pa. Scott C. Rogers, CPIA* York, Pa.
G. Greg Gunn, CIC Editor’s note: To read more about AgentPAC or to contribute, visit IABforME.com/AgentPAC.
David B. Wasson Sr., CIC State College, Pa. Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** New Castle, Del. * Pa. IIABA National Director ** Del. IIABA National Director + Md. PIA National Director
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Ask our Experts QUESTION: A lender is asking me to provide copy of the Replacement Cost (RC) estimate for the property on which they will be providing a loan and want 100 percent replacement cost on the evidence of insurance certificate. Should I do it? What are the ramifications?
ANSWER: The best practice would be not to provide a copy of the RC estimate. If you choose to do so, however, we would encourage you to take some precautions, as indicated below.
2) Provide a disclaimer along with the RC estimate such as this one: The limits indicated on this application have been selected based on information provided by the applicant and the use of a ‘replacement cost estimator.’ Replacement cost estimators are regularly used in the insurance industry to attempt to determine the cost to rebuild the dwelling if it is destroyed.
First, let’s look at the different issues separately: Lender’s guidelines — Lenders sometimes will state that their guidelines require review of the RC estimator. However, as an agency:
As the name indicates, the numbers are only estimates, and may not fully account for specific property features. Rebuilding costs are also subject to fluctuations due to market conditions. The actual cost to repair the building and/or replace the property may exceed the amount calculated by the estimator and the limits selected.
1) You have no obligation to comply with guidelines drafted by a lender, and 2) Fannie Mae guidelines — which most lenders rely on — do not impose any such requirement.
[Insert name of Agency] makes no representation as to the accuracy of the replacement cost estimate, now or in the future. If in doubt about the limits selected, the applicant/ policyholder should seek a professional appraisal or the assistance of a builder to assess reconstruction costs.
Estimate — As the name indicates, the RC estimate is just that, an estimate. It is not an exact science. Producers who have used them for any significant amount of time know that the values can differ greatly depending on the software used, the criteria defined in the estimator, and the data that is input. (As the saying goes: “garbage in, garbage out.” If the data used is not accurate, neither will be the estimate.)
This disclaimer, along with other related tools, is available at IABforME.com/eo_ prevention. About the special language requested – Finally, you should also refrain from adding any language to the evidence of insurance document that suggests “100 percent replacement cost,” “guaranteed replacement cost,” “full replacement cost” or any similar wording. Such provisions can be viewed as a misrepresentation of the policy and a violation of the producer licensing statute in your state.
In the end — If you are going to provide the information to the lender, we would suggest the following: 1) Get consent from the customer. While under the state’s privacy regulations (at least in Delaware, Maryland and Pennsylvania), you may be permitted to disclose information to a party “holding a legal or beneficial interest in the consumer” (something that a mortgage holder could claim), many lenders will ask for this information before this beneficial interest is established.
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. [5]
Primary Agent | May 2014
State News Chesapeake Employers agreement review posted Review our modified Agency Agreement Analysis of the Chesapeake Employers Insurance Company (derived from IWIF) contract. It accounts for changes made by the company to its original agreement and provides the carrier’s perspective on several items as well. The Agency Agreement Analysis (AAA) we conducted of the Chesapeake Employers’ contract led to several significant changes. Of note, Chesapeake Employers was very open-minded about the process and welcomed the feedback received. After some back-and-forth, the company issued an amendment addressing most of the issues we had identified. We modified our AAA to account for the changes made to the original agreement, as well as to provide some company perspective on the items that remain unchanged. The final AAA is available for your review. Note that two separate reviews are available, one for the Producer Agreement (which grants greater authority) and one for the Limited Producer Agreement. IABforME.com/ carrier_issues/agreements
Md. homeowners’ policies now subject to ACC law Read up on the anti-concurrent causation (ACC) provision. A new state law — which impacts all homeowners’ policies issued, delivered or renewed on or after Jan. 1, 2014 — may trigger customer questions. Expect customers’ inquiries on the anti-concurrent causation (ACC) provision to continue in the months ahead. As reported in Agent Headlines, a new Maryland law requires homeowners’ insurers to notify policyholders of the ACC provision, describe the clause and encourage them to communicate with their producer or insurer for any additional information. While IA&B successfully lobbied to remove language from the final version of the bill which would have required agents to provide insureds with “a description, including an example of the manner in which the ACC clause may be applied,” you should nonetheless be ready to respond to inquiries on the subject. The new law took effect June 1 and applies to all homeowners’ insurance policies issued, delivered or renewed on or after Jan. 1, 2014. For a refresher on how ACC clauses made their way into everyday contracts, and their impact on losses, review our online resource on the topic. IABforME.com/ coverage_issues/ACC
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Joint effort elevates brokers in Maryland health insurance exchange We launched an initiative earlier this year, along with two partnered associations, to connect Maryland Health Connection users (individuals and small businesses) with health insurance producers. Health insurance producers now have more direct access to individuals and small-businesses seeking coverage through the Maryland Health Connection. We partnered with the National Association of Insurance & Financial Advisors of Maryland and the Maryland Association of Health Underwriters — as well as the Maryland Health Benefit Exchange — to introduce the Producer Referral Program. The program allows those seeking coverage through the exchange to call a help line, where enrollees will be connected with licensed health insurance producers who can help individuals select an appropriate plan and assist small businesses with signing up for tax credits and plans before they are available through the Maryland Health Connection. (As this issue of Primary Agent magazine, the fate of the exchange’s twice-delayed small business program was uncertain.)
Maryland Personal Auto forms facing revisions Regularly update your agency management system to ensure you’re using the latest ACORD forms editions, including two revised Personal Auto forms effective later this year. Applying updates to your agency management system ensures that you’re using the most recent ACORD form editions — and that you’re in compliance with licensing agreements. What licensing agreements? It is a violation to issue prior editions of a superseded ACORD form once a new form is introduced. Your obligation stems from the licensing agreement between ACORD and your agency management system vendor (AMS, Applied, etc.). Agency management systems introduce the latest ACORD forms through periodic updates … which all too easily can fall through the cracks at busy agencies. What form revisions are coming down the pike? On the horizon for Maryland are two revised forms: the Personal Auto Application ACORD 90 MD (2014/12) and the Personal Auto Application Section ACORD 290 MD (2014/12), effective in December.
All producers who are certified to work within the exchange can request to participate. The program asserts health insurance producers into the exchange, calling attention to their existing — and underutilized — role as licensed, educated advisors. Contact us to participate: IAB@IABforME.com
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Steady flow of NFIP updates Keep up with the latest National Flood Insurance Program (NFIP) updates to keep your flood insurance customers’ heads above water. Stay afloat in a sea of (seemingly constant) flood insurance changes by minding FEMA bulletins. On Dec. 16, 2013, FEMA released its June 1, 2014 Program Changes. Since then, the agency released four addendums (and possibly more after this issue of Primary Agent went to print). Monitor our Agent Headlines articles, as well as the NFIP iService website, to ensure you and your customers are ready for next month’s changes. IABforME.com/news NFIPiService.com
Primary Agent | May 2014
Preventing ERRORS AND OMISSIONS
“DO’S” AND “DON’TS” OF REDUCING CHANCES OF AN E&O CLAIM
The Utica National E&O Program supplied this article. Insurance Agents & Brokers Service Group Inc. 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.
The duties of a producer or account executive/customer service representative in an agency present tremendous challenges and responsibilities. It’s hard work and is not getting any easier. The knowledge expected would fill volumes and the workload probably seems like it never ends. These staff members deserve a tremendous amount of credit because without them, the agency would not be the same. While the degree to which these men and women perform this job professionally and ethically can greatly determine the agency’s success, it can heavily determine the agency’s errors-and-omissions risk, too.
prospects rely on them for this knowledge to ensure their assets are properly protected. To meet this challenge, a commitment to knowing the various classes and lines of businesses, and the uniqueness of each, is required. Because there is so much to learn in the insurance business, there will be times when a producer and account executive do not possess the necessary knowledge. How these instances are handled and knowing where to find the information are vital. Bluffing one’s way through the answer is not recommended. This might work once in a while, yet since there is a very good chance the customer or prospect is documenting the conversation, it’s only a matter of time before it catches up with the agency staffer.
Gaining knowledge Both producers and account executives must have a strong technical knowledge of the industry. Customers and
A great tool for producers and account executives is an exposure-analysis [8]
checklist. These checklists provide tremendous detail on more than 650 classes. For a producer, this is an ideal resource for knowing the prospect or client. Before visiting a jewelry store prospect, for example, the producer should take the time to educate himself or herself on a jewelry store’s exposures. For account executives, these checklists are also a solid way to improve their knowledge of various lines or classes of business. Sales skills and more Yet having the knowledge and knowing where to get it are only parts of the solution. The formula for success also includes the need for sales skills. Having knowledge with no sales skills – or sales skills without knowledge – can be extremely dangerous for the agency from an E&O perspective. Without a doubt, the sales process
doesn’t end when the sale is made. How producers and account executives conduct themselves during the sales process — pre-sale, sale and post-sale — will likely determine whether they are successful and to what degree they are an E&O risk. When interacting with the client, in most states, an insurance producer, including account executives, has a common-law duty to obtain the coverage the client specifically requests within a reasonable time or inform the client of the inability to do so. Thus, it is key to listen for what the customer or prospect is asking. Not providing what the customer requested has been a root cause of many E&O claims. The words or phrases used to promote your agency and abilities are also important for avoiding an E&O claim. Telling customers and prospects you are an “expert” or that “at our agency, we make sure that you are properly covered” sound impressive. However, while the belief may be that the ability to be successful is enhanced, it can also lead to the producer and the agency being held to a greater degree of liability should a problem develop. Choose the words and phrases used verbally or in print carefully. One word to avoid is “recommend.” It’s not as harmless as it might sound. For example, say the agency recommends that the client secures a $1 million umbrella. If the client ultimately has a loss well in excess of the $1 million, the agency could face an E&O claim for “recommending” a limit that was insufficient for the loss suffered. The best approach is to offer coverage options and limit options for each of those coverages, and then let the customer make the decision. Don’t make it for them!
Document and review In all of the various interactions, whether with the prospect or the markets you are using, is the need for prompt and professional documentation. Reinforce that this need for documentation applies to producers and account executives. While the “old school” approach of documenting the discussion in the file or agency management system may be sufficient at times, there will be situations where the documentation should also involve a note to the customer or prospect detailing the essence of the conversation. The goal here is to avoid any misunderstandings before a claim occurs. If a problem develops, this documentation — or lack of — will greatly determine the direction of the E&O claim. Documentation is not an option; it is mandatory. It must also be prompt and professional. Does the customer always buy all of the coverages noted in the proposal? No. Both producers and account executives should get the customer’s sign-off on the coverages/limits they will not be securing. After receiving the order, it is crucial to review the policies upon receipt of them to ensure they reflect what was ordered. The producer and account executive should be involved in this process to ensure the coverage is what the customer requested. In all but a few states, the client has a duty to read his or her policy. Therefore, it is strongly suggested to include a cover letter with the policies advising the customer to review the policies and contact the agency if there are any questions or any of the policies need correction. If the producer is delivering the policy, include the cover letter with the policies and bring the letter to the customer’s attention.
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Checklists for less Utica touts the benefits of using exposure-analysis checklists for increasing knowledge of various industries. Our members are entitled to discount pricing for the Producer Online — a robust risk-evaluation and coverage resource that includes exposure-based questions for over 600 types of business.
IABforME.com/ Discounted_Services
In all likelihood, the marketplace has prompted accounts to be remarketed on renewal to other carriers in your office, so bring to the customer’s attention any deficiencies or coverages being “given up” by moving the account to another carrier. Document these discussions. This also applies if you are moving the account from the standard marketplace to the E&S marketplace. Oftentimes, carriers will change their guidelines. Agency staff must be aware of these guidelines and to adhere to them. Overstepping the carrier’s binding guidelines is a common reason carriers are increasingly suing their agents. Going a long way Being a producer or account executive requires tremendous knowledge, professionalism and attention to detail. This will go a long way to ensuring success — and ensuring you are not an E&O nightmare waiting to happen.
Primary Agent | May 2014
Coverage COR N E R
2013 STELLA AWARDS: FACT OR FICTION? JERRY M. MILTON, CIC Jerry M. Milton, CIC, teaches and consults on industry issues. The legal profession recognizes him as an expert on insurance coverages. He is also the education consultant for IA&B, working with CISR, CIC and continuing education programs.
The 2013 Stella Awards have been announced. For those of you who are unfamiliar with these awards, they are named for Stella Liebeck, the 81-year-old lady who spilled hot coffee on herself and successfully sued McDonald’s. You remember, she took the lid off the cup and put it between her knees while she was driving. Not her fault, right? Therefore, it had to be McDonald’s fault.
ankle tripping over a toddler who was running inside a furniture store. The store owners were understandably surprised by the verdict, since the running toddler was Ms. Robertson’s own son. 6th place Carl Truman, 19, of Los Angeles won a $74,000 verdict plus medical expenses when his neighbor ran over his hand with a Honda Accord. Apparently, Truman didn’t notice that the neighbor was at the steering wheel of the car when he was trying to steal the neighbor’s hubcaps.
The Stella Awards are presented for the most outrageous lawsuits and verdicts in the U.S. These awards sound like they should be in “Ripley’s Believe It Or Not.” After you read these, you won’t know whether you should laugh or cry.
5th place Terrence Dickson of Bristol, Pa. was leaving a house he had just burglarized by way of the garage. Unfortunately for Dickson, the automatic garage door opener malfunctioned, and he
7th place Kathleen Robertson of Austin, Texas was awarded $80,000 by a jury of her peers after breaking her [ 10 ]
couldn’t get the garage door to open. Worse, he couldn’t re-enter the house because the door from the garage to the house locked when Dickson exited the house. He was forced to sit for eight days inside the locked garage. He survived on a case of Pepsi and a large bag of dry dog food. He sued the homeowner’s insurance company claiming he suffered undue mental anguish. Hard to believe, but the jury said the insurance company had to pay Dickson $500,000 for his “mental anguish.” 4th place Jerry Williams of Little Rock, Ark. was awarded $14,500 plus medical expenses after being bitten on his rear end by his next door neighbor’s beagle, even though the beagle was on a chain inside its owner’s fenced yard. Williams was
not awarded as much as he asked for because the jury believed the beagle might have been provoked by Williams, who had climbed over the fence and repeatedly shot the dog with a pellet gun. 3rd place A jury ordered a Philadelphia restaurant to pay Amber Carson of Lancaster, Pa. $113,500 after she slipped on a spilled soft drink and broke her tailbone. The reason the soft drink was on the floor – Ms. Carson had thrown it at her boyfriend 30 seconds earlier during an argument. 2nd place Kara Walton of Claymont, Del. sued the owner of a night club in a nearby city because she fell from the bathroom window to the floor, knocking out her two front teeth. Even though Ms. Walton was trying to sneak into the club through the ladies room window to avoid paying the $3.50 cover charge, the jury said the night club had to pay her $12,000, plus dental expenses.
1st place Mrs. Merv Grazinski of Oklahoma City, Okla. purchased a new 32-foot Winnebago motor home. On her first trip home from an Oklahoma football game, while driving on the freeway she set the cruise control at 70 mph and left the driver’s seat to go to the back of the Winnebago to make a sandwich. No surprise, the motor home left the freeway, crashed and overturned. Also no surprise, Mrs. Grazinski sued Winnebago for failing to include in the owner’s manual that she couldn’t leave the driver’s seat while the cruise control was set. The Oklahoma jury awarded her (are you sitting down?) $1,750,000 plus a new motor home. Winnebago actually changed their manuals as a result of this suit just in case Mrs. Grazinski has any relatives who might buy a Winnebago.
them as such. However, several reporters who have tried to verify these claims have been unable to find any court documents or records that would substantiate these awards.
Now, the million dollar question: Are these claims fact or fiction? When released, many news organizations, including CNN, U.S. News & World Report and the New York Daily News, accepted them as fact and reported
Y’all take care!
A spokesperson for Winnebago has flatly denied this claim ever occurred and further stated that they have no knowledge of a Mrs. Merv Grazinski. Do you remember the Stella Award a few years ago to the lady who sued Kenmore after she tried to dry her poodle in her microwave? That claim was proved to be false. So, fact or fiction? I don’t know. You can draw your own conclusion. I do know that it’s a sad commentary about our legal system that each of these claims is believable (although the Winnebago case is pretty hard to swallow).
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MARKETING
The four Cs of beginner content marketing Beginner content marketing techniques create the foundation of our online presence. Think of your online presence as a building. Before we can do the fancy trim work, we must first dig a hole and put in a foundation. Before we can put in the foundation of our online presence, we must understand the beginner content marketing techniques and concepts that guide our work.
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Primary Agent | May 2014
B
efore we effectively execute the “how” of professional content marketing, we must first understand the “why.” The great content marketers of our time — Seth Godin, Gary Vavnerchuk, Chris Brogan — all have a deep understanding of why they’re doing what they do. It’s the why that dictates the how. The four C’s of beginner content marketing are very simple (not easy, but simple): create, captivate, community, convert. If you can harness all four, even at this very basic level, you will find success online. You will find success online because you’ll actually understand why you’re doing all the little tips and tactics and tricks and strategies that master guru content marketers tell you to do.
Create The first C is create and with good reason. We must create our own content. Have to … no way around it. No short cut. No excuses. (The only caveat to this is hiring a great copywriter or freelancer.) Our website, our blog, our social media outposts must all contain original content. Most of us did not start our businesses to become publishers. Unfortunately, in today’s world, it’s become increasingly difficult to buy the attention our business needs to survive. We must publish. We must create original content. This is where the idea of “content warfare” (learn more at https://plus.google.com/+RyanMHanley) came from. We’re not curating content, we’re not regurgitating content, and we’re certainly not stealing content. We publish original content so when our audience needs the expertise we have, they have no place else to look beyond us. —————————————————————————————————
Captivate your audience by being human in the digital world. —————————————————————————————————
Captivate The content we create must captivate our audience’s attention, and the simplest way is to be human. Be a vulnerable, humble, honest human being. Then focus on publishing original, valuable content about your business, your clients or your community as often as you can. Tell stories, provide case studies and share testimonials. Tell your clients’ stories, market your clients’ business and share testimonials of your clients’ work. Captivate your audience by being human in the digital world. You’ll build trust, you’ll build relationships, and you’ll build a never ending stream of attention.
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Content marketing, defined So what is content marketing? According to the Content Marketing Institute (yep, there’s an organization for that): “Content marketing is a marketing technique of creating and distributing valuable, relevant and consistent content to attract and acquire a clearly defined audience – with the objective of driving profitable customer action.” Or, as Rebecca Lieb of Advertising Age put it, “Content marketing is a pull, rather than a push, strategy. Content doesn’t interrupt, it attracts.”
MARKETING Community
The rub
Community building is vital to the long-term success of your content marketing strategy. We can generate attention in bursts — create a new product with some compelling sales copy and pay for ads that attract attention. Do this and you will move product. You’ll make sales no doubt. But it’s a burst of attention. You get a huge run up and then … crickets … back to nothing. As quickly as your “audience” showed up, they’re gone to the next guy or gal shouting about the next product.
The four Cs of beginner content marketing are theory in so much as I’m not telling you how many times a day you should post to Facebook or Twitter. These are derivatives of your ability to create original content, captivate your audience and build a community.
Unless you build a community…. When you build a community, you’re manufacturing repeat customers and brand evangelists. You’re building your own personal marketplace for the products and services you sell. Community is what keeps your content marketing thriving, forever. ————————————————————————
Anyone who tells you different is trying to sell you something. Don’t overinvest in platforms or tools. Submerse yourself in creation, and you won’t be a beginner for long.
Ryan Hanley penned this piece. He is an author, speaker and content warrior, who spent six years as an insurance agent and director of marketing for an independent insurance agency in upstate New York. Learn more and contact him at ryanhanley.com, or find him on Google Plus at +RyanMHanley.
When you build a community, you’re manufacturing repeat customers and brand evangelists. You’re building your own personal marketplace for the products and services you sell. ————————————————————————
Convert Conversion is the easy the part. If you’ve created original content that captivates your audience and built that audience into a community, conversion is easy because you’ve already put in all the work. You don’t have to sell your community. You don’t have to sell your audience. If you’ve put in the work, if you’ve done the first three Cs, then your community is going to tell you what they want. All you need to do is provide it. Conversion works when your audience trusts you. It’s that simple and that hard.
Want to partner with a reliable agency? Ready to sell your insurance agency? Want to retire, or sell part of your book? Or are you ready to expand your services and products? If you answered yes to any of these questions, contact me:
Judy Dodds
Business Development Manager 302-299-4776 jdodds@aaamidatlantic.com
©2014 AAA Insurance
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Good people Make great partners!
Quote a middle market account with Harleysville, and watch your circle of trusted advisors grow in a hurry. First, there’s your field underwriter, who’ll understand your client’s business and recommend the right coverage. Next, your risk services specialist, who’ll assess the hazards of your client’s operation and propose solutions to address the challenges. And finally, when the account is especially large or complex, our claims business consultant can meet with your client initially, then later to discuss specific losses and trends. For contractors, manufacturers, wholesalers and more, team with our middle market professionals once and you’ll call us again and again. To learn more about this and other benefits of a Harleysville appointment, call 800-523-6344, ext. 5016, or visit our website.
Scan this tag to be sent directly to the agency recruitment section of our corporate website. Busines s | In land Marine | Person al | Life/Employee Ben efits | Flood | Human S er vices | www. harleys villegroup.com
AGENCY MANAGEMENT
Tapping into the retired work force A case study in Work At Home Vintage Employees
Let’s face it: When you need a helping hand around the agency, calling up the local temp service isn’t an option. And outsourcing beyond the United States doesn’t meet everyone’s comfort level. Enter Work At Home Vintage Employees.
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Primary Agent | May 2014
Identifying the back-end work backlog Renewal reviews were piling up at the Downingtown, Pa.-based Miller’s Insurance Agency. Managing Partner and COO Fran Shaw recognized that her staff was stretched thin and that it was time to look for outside support. She recalled an agency-consulting firm touting Work At Home Vintage Employees (WAHVE), a contract staffing solution that connects agencies with experienced insurance professionals who have retired from agency life but wish to continue working from home. So Shaw picked up the phone.
Why WAHVE? Besides the cost savings, the number-one reason agency principals hire WAHVE is to increase profitability by freeing up highly paid staff from process work. Other things that have prompted agencies to try WAHVE:
Finding behind-the-scenes help
w Unable to find local talent
“The beauty of WAHVE is that I didn’t have to do any interviewing or testing,” shares Shaw. “It takes away the need to hunt for people with experience.”
w Prefer an outside person doing
Shaw provided WAHVE with a description of the back-end work in question and an explanation of what management system and programs her staff uses. WAHVE matched her with a retiree some 400 miles away in the Carolinas who was willing to work remotely full time for Miller’s Insurance Agency. As a bonus, the wahve – as WAHVE refers to its contract employees – had experience working with some of the same carriers, so she was familiar with the forms and endorsements the agency uses. WAHVE simplified the technology setup, and Shaw considers the process of providing remote access an easy one.
Getting ahead The wahve worked remotely from her home for Miller’s Insurance Agency for a year and successfully completed the back-end work, while connecting with Shaw and her staff via conference calls and Skype. A firm believer in fostering a team environment at her agency, Shaw admits the biggest challenge was assimilating the whave into the group. “It has to be more than just the executive,” shares Shaw. “Everyone in the agency has to look at the wahve as part of the team.” That aside, Shaw appreciated the ease of finding an experienced staffer and expects that she may reach out to WAHVE again in the future. “Can this work? Yes it can,” says Shaw. IA&B has partnered with WAHVE to provide assistance to agencies that need staff support without the commitment in time and the short- and long-term cost associated with a full-fledged hiring process. As a result of the partnership, IA&B members receive a 50 percent reduction on WAHVE’s one-time set-up fee – or, if they open an account by Aug. 31, 2014, the $2,500 fee is completely waived. Read more at IABforME.com/WAHVE.
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quality assurance w Maintain productivity while
employees are on maternity or other leave w Focus agency marketing efforts
on a new segment of business w Mentor a producer
ASSOCIATION AT WORK
CSI
by the numbers
Our annual Company Satisfaction (CSI) survey is a gauge of members’ collective experiences with carriers’ products, underwriting, claims and technology. The 2014 CSI looks at personal lines carriers. Give us your two cents. The more surveys we receive, the more comprehensive look at the agency-company relationship we can provide. And that means a greater benefit to you when you’re comparing experiences or considering new appointments.
IABforME.com/CSI
15
average number of minutes to complete the survey
4
categories of questions
[ [18 18] ]
Primary Agent | May 2014
1
month the survey remains open
2013 CSI in review
3
number of carriers we hope you’ll rate
250
dollars you could win in random drawing among participants
457 participants in last year’s CSI
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Last year’s CSI gauged members’ experience with commercial lines carriers. Comprehensive results and analysis are available at IABforME. com/CSI; highlights follow. Members’ overall satisfaction with commercial lines carriers decreased slightly, which broke the continuous trend of improvement since the CSI’s inception in 2004. Collectively, the smallest regional carriers received the highest satisfaction rating. Respondents’ satisfaction remained the highest with their carriers’ policy service and claims and lowest with technology — a trend continued from the 2010 results. MMG Insurance, ACUITY, Lackawanna Casualty, Donegal and Goodville Mutual received the highest satisfaction ratings.
We’re pulling
for you to renew!
MY Advocate
Haven’t renewed your IA&B membership? You’re coming to the end of your rope.
MY Support
IA&B strives to be a lifeline for independent agents
MY Agency
by providing a broad array of programs, products and services that provide value for them.
MY Connection
What's new FOR YOU?
MY Training
■ new digital marketing opportunities ■ new agency agreement analyses ■ new Company Satisfaction Index (personal lines) ■ new Power Hour webinars ■ new Insuring Contractors seminar ■ multiple market options ■ member pricing on insurance (E&O, data breach, etc.) ■ access to legal and industry experts WE THANK MEMBERS WHO HAVE ALREADY RENEWED, AND WE’RE PULLING FOR THE REST TO DO SO BEFORE THEIR BENEFITS END. RENEW ONLINE AT IABforME.com/RENEW.
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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 ACUITY Berkley Mid-Atlantic Group Donegal Insurance Group Erie Insurance Group Harleysville Insurance HM Insurance Group Insurance Agents & Brokers Service Group Inc Liberty Mutual Insurance MMG Insurance Company Millers Mutual Group Millville Mutual Insurance Co Mutual Benefit Group Penn National Insurance Swiss Re The Main Street America Group Utica National Insurance Group
GOLD LEVEL
ISU Insurance Agency Network Progressive Westfield Insurance
SILVER LEVEL
Access Insurance Company Allied Insurance American Mining Insurance Co Burns & Wilcox Limited Cumberland Insurance Group Farmers Mutual Insurance Company of Western Pennsylvania Frederick Mutual Insurance Co ICW Group Insurance Companies Juniata Mutual Insurance Co PSBA Insurance Trust Selective The Philadelphia Contributionship
BRONZE LEVEL Aegis Security Insurance Co Agency Insurance Company AmWINS Program Underwriters Inc Auto-Owners Insurance Company Bailey Special Risks Inc Briar Creek Mutual Insurance Company Chubb Group of Insurance Companies Conemaugh Valley Mutual Insurance Co Countryway Insurance Company Encompass Insurance Foremost Insurance Group GMI Insurance Goodville Mutual Casualty Company Guard Insurance Group Hanover Fire & Casualty Insurance Company Harford Mutual Insurance Co Insurance Alliance of Central PA Inc Insurance Placement Facility of PA Keystone Insurers Group Inc Lebanon Valley Insurance Company MAPFRE Insurance Mercer Insurance Group Merchants Insurance Group Mercury Casualty Mutual Aid Exchange Penn PRIME Municipal Insurance Reamstown Mutual Insurance Company Rockwood Casualty Insurance State Auto Mutual Insurance Company TAPCO Underwriters Inc The Brethren Mutual Insurance Company The Motorists Insurance Group The Mutual Service Office Inc Travelers Tuscarora Wayne Group of Companies Zenith Insurance Primary Agent May 2014
Primary Agent | May 2014
Technology U P DAT E
ELECTRONIC POLICY DELIVERY — A GAME CHANGER
SUSAN LABARRE CPCU, AU, AIM, PMP Susan LaBarre, CPCU, AU, AIM, PMP is director of Agency Automation & Quoting, Customer Experience, at Liberty Mutual, Commercial Insurance. She also is chair of ACT’s Policy Delivery Work Group. Susan wrote this article for ACT and can be reached at Susan.LaBarre@LibertyMutual. com. This article reflects the views of the author and should not be construed as an official statement by ACT.
The insurance industry is a paper hog. I dare say that insurance carriers probably generate and distribute more paper than any other industry, second only to publishers of books, magazines and newspapers. But even publishers are migrating more and more towards electronic platforms, and carriers are adapting, too.
reduced their reliance on paper. With the introduction of dual monitors, smartphones and tablets, slowly we are adapting and realizing that we can effectively function without hitting “print” as often as we used to. It simply requires changing our mindsets and getting creative about how we exchange the information, while still remaining our client’s “trusted advisors.” If technology continues to advance as it has in the last five years, think about how delivery will likely change in the next five years.
When you compare our own industry’s dependence on paper documents five years ago to today, you generally see that most organizations have [ 22 ]
Benefits of electronic policy delivery Moving to electronic delivery is good for our planet. The average tree makes 16.67 reams of copy paper or 8,333.3 sheets, according to Conservatree.com. Increasingly, society is recognizing the need to reduce its carbon footprint, from individual consumers on up to corporations. The insurance industry generates billions of pages of paper documents annually at a significant cost. Reducing expenses by delivering policies electronically will enable us to reduce the cost of our policies, as well as preserve vital natural resources. But it’s not all about carriers just wanting to save money. Dozens of agents tell me that when they “do the math,” reducing dependence on paper saves them time and money. These
agencies want to receive their policies electronically, so they can easily enter them into their agency management system and deliver them electronically to those clients who have agreed to receive them this way. Electronic policy delivery — a game changer for agencies Many agencies have turned electronic delivery into a “game changer” for their firms. How do they do this? Methods vary; however, typical agency workflows include: (1) Adopting ACORD® Activity Notes to receive policy copies electronically from their carriers directly into their agency management systems (2) Implementing a new process to obtain and retain the approval of clients to accept electronic versions of their policies and other insurance documents
w Free up staff to acquire new business, cross-sell and service existing accounts w Compete more effectively with direct carriers Increasingly, consumers are demanding online access to their insurance information including auto ID cards, certificates of insurance, and copies of their insurance policies. This
concerns some agents as they feel it will encourage consumers to “shop” for a better deal at renewal. However, many agents indicate that offering documents electronically has actually increased renewal retention and customer satisfaction. Some agents also fear that many consumers are not ready to accept electronic delivery. But in reality, when agents proactively offer policyholders
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(3) Employing secure and registered email or an e-Signature tool to send these electronic documents to their clients securely, or providing access to these documents through a secure, password-protected portal that the agency has set up for the client. Combined, these solutions enable the typical agency to: w Eliminate scanning and indexing paper copies of many documents w Significantly reduce printing and mailing costs w Reduce the “cycle time” to deliver a policy from weeks down to days or even minutes w Increase renewal retention w Be alerted to transactions before clients are (for example, non-payment of premium or claim settlements) [ 23 ]
Partners.
You and your clients. You and Harford Mutual. We’re committed to protecting their business and building yours. That’s what mutual success is all about.
Explore P&C insurance opportunities at HarfordMutual.com
TECHNOLOGY UPDATE
the choice, many agents indicate that seven out of 10 actually prefer electronic documents. Stepping up to the challenge Times are changing, and our industry needs to step up to this challenge by setting a positive example while at the same time positioning ourselves to compete with direct carriers. Independent agents, brokers, carriers and vendors all need to work together in order to offer our customers an electronic experience that is better than paper, if we are going to continue to thrive as an independent, value-added distribution channel. Just think about it: We have the opportunity to offer a first-class interactive online experience to our clients, while at the same time setting an example as good “corporate citizens” by preserving our planet’s resources for future generations.
The migration from paper to electronic documents is an “evolution” not a “revolution.” By working together, we can do this right and create “win-wins” for carriers, agents, vendors and create a value-added experience for our clients. This will take some time for all to agree and to modify systems and workflows to fully support electronic delivery. Some consumers may never fully embrace electronic documents, but the overwhelming majority will, and they will receive their documents faster and at much lower cost. So, let’s treat the exceptions as just that – exceptions. The time is now to prepare for this inevitable direction and turn it into a competitive differentiator. It will be important for agents, brokers and carriers to work together and be proactive in encouraging their policyholders to move to electronic document delivery.
Editor’s note: The Agents Council for Technology Electronic Policy Delivery Work Group met throughout 2013 to discuss issues associated with electronic document delivery, from the carrier to the agent, as well as from the carrier or agent to the insured. The group then published its findings in a report: Best Practices Recommendations for Delivery of Insurance Policies to Agents & Insureds. Read more at independentagent.com/ACT. For more information on the ESIGN & UETA laws, please see ACORD’s Guidelines for e-Signature and e-Delivery in the Insurance Business, written by the law firm Locke Lord and also available at independentagent.com/ACT.
We See a Bright Future More options await you with Preferred Property Program’s umbrella policies Our umbrella programs are designed to offer the most comprehensive coverage so the future is never in doubt. Our umbrella liability policies are written by XL Insurance, with Chubb Insurance Group for the excess layer, featuring flexible, broad coverage that includes: • $5 to $25 Million in umbrella coverage with up to $50 Million in total limits. • Hi-Rise apartments up to 35 stories eligible, with higher eligible by referral. • Excess of D&O, General Liability, Auto, Employers Liability, Employee Benefits and more. • Developer-sponsored boards eligible.
Contact us for a quote:
888.548.2465 A subsidiary of
JGS
info@umbrellaprogram.com www.umbrellaprogram.com
®
Service is our specialty; protecting you is our mission ®
960 Holmdel Road, Holmdel, NJ 07733 XL Insurance is the global brand used by XL Group plc's insurance companies. Preferred Property Program’s XL policies are underwritten by Greenwich Insurance Company.
INSURANCE
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Classified ADVE RTI S E M E N T S
SOUTHEAST PA PRODUCERS & AGENCIES Professional agency since 1926 located in Feasterville, Bucks County, Pa. Call for confidential information and a review of our services. Contact Ray Reinard at 215-375-8600, Ext. 119.
If you would like to place a
Caring for a coffee connoisseur
Classified Advertisement, simply fax your ad on company letterhead to 717-795-8347, and we will take care of the rest.
Ad Index AAA Mid-Atlantic . . . . . . . . . . . . . . . 14 Coastal Agents Alliance . . . . . . . . . . 23 Donegal Insurance . . . . . . . . . . . . . . . 1 Guard Insurance Group . . . . . . . . . . 11 Harford Mutual Insurance Group . . 23 Harleysville Insurance . . . . . . . . . . . 15 IA&B Partners Program . . . . . . . . . . 21 IA&B . . . . . . . . . . . . . . . . . . . . . . . 3, 20 Interstate Insurance Mngmnt. . . . OBC Millers Mutual . . . . . . . . . . . . . . . . IFC Preferred Property Program . . . . . . 24
Lloyds of London no doubt has a taste for insuring prized parts (reportedly Heidi Klum’s legs and Bruce Springsteen’s vocal cords, included). But the policy taken out on Gennaro Pelliccia appears to be one of the most unusual yet: The tongue of Pelliccia, the chief coffee taster for Costa Coffee, is insured for $13.5 million. Pelliccia taste tests each coffee bean batch at the Costa Coffee London plant before it’s roasted and shipped to stores. Costa Coffee operates a worldwide chain of coffee shops that sell 108 million cups of java annually. Source: BBC ________________________________________________________________
The Last & Least column is dedicated to the industry’s oddities – from creative claims and kooky coverages, to (tasteful) jokes and strange stories. Submit yours to IAB@IABforME.com, subject line: Last & Least. The editor will happily protect sources’ anonymity upon request.