December 2015 by Independent Insurance Agents of NM

from your friends at

New Mexico’s Experts in Workers’ Compensation Insurance 3900 2 Singer Blvd. NE • Albuquerque, NM 87109 • 505.345.7250 or 800.788.8851 • www.NewMexicoMutual.com

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“La Voz” is the official monthly e-publication of the

Independent Insurance Agents of NM 1511 University Blvd. NE Albuquerque, NM 87102. (505) 843-7231. Fax (505) 243-3367. Web site www.iianm.org. This publication is intended to provide accurate and authoritative information on the subject matter covered, but is distributed with the understanding that neither IIANM, nor any contributing author, publisher, contributor or advertiser is rendering legal, accounting or any other professional service and assume no liability whatsoever in connection with its use. Further, the electronic links to our advertisers and/ or contributors found in this publication are provided as a courtesy to our readers and do not necessarily indicate an endorsement by IIANM. News items from members of Independent Insurance Agents of New Mexico and the general insurance industry are encouraged. The advertising deadline is the fifteenth day of the month, preceding publication. Advertising rates are available upon request. Please contact Rachel Sheffield at rachel@iianm.org for details

IIANM Staff President/CEO Thom Turbett Chief Operations Officer Consuelo Trujillo Insurance Programs Administrator Renee Trujillo Communications Director Rachel Sheffield Social Media Director Jacob Grant

2015-2016 Officers Chair Mike Parisi Vice-Chair Dick Minick Secretary/Treasurer Heather Fortner National Director Katherine Yeager Immediate Past Chair Gabe Portillo

"The Voice" of Independent Agents since 1934

IIANM Events

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Holiday Party Invite 09 December’s Clickable Calendar 12 Spring Seminar Coming Soon... 17

Features Become a 2016 Partner!

Principal - 4 Reasons Why Millinnials See Insurance as a Lifelong Career

Producer - NM Has the Highest Number of Employee Lawsuits

CSR -

The 3 Worst Words in Customer Service

Principal - Agency Optimism Plummets 40%

IIANM 2016 Calendar of Events

Producer - David vs Goliath - Competition in Every Corner

Ask an Expert - Ho Ho Homeowners Question

CSR -

Be Ready for Unplanned Communication

Protect Your Home & Holiday this Season

In Every Issue IIANM 2015 Company Partners! 05 Tech Talk 20 Snap Stats - Study Reveals Stability & Growth in P&C Market

Odds n Ends 25

ADVERTISER !NDEX Acuity 13 Burns & Wilcox Back Cover Market Finders, Inc. 11 Mountain States Insurance Group MHI - Manufactured Housing Insurance

07 15

New Mexico Mutual 02 Trustco / HCIT 17 3

me a 2016 Partner! o c e B The Partners Program is a win-win situation for both IIANM and its Partners. Our Partners appreciate this "one-stop" approach to supporting IIANM and its members. From IIANM's point of view, it saves time and resources formerly spent soliciting for event sponsors.

We invite companies to experience the enormous networking, recruiting and branding opportunities presented by becoming an IIANM Corporate Partner. Our Associate's Partnership program puts supporters front and center in a meaningful and memorable fashion. Benefits to you: • Support the Agency Distribution System: Your backing makes it possible for IIANM to develop affordable, quality programs that enhance the professionalism of New Mexico's independent insurance agents. • Substantial Savings: The value of the various benefits you receive as an IIANM Partner far exceeds the cost! • Unique Perks: Many of the perks you receive as an IIANM Partner are not available to other companies - at any cost. • First Pick: Diamond, Platinum, and Gold Partners are guaranteed first pick of sponsorships and exhibit space at IIANM events. Six levels of participation are available:

DIAMOND

Diamond

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For more information, to view a graph with a breakdown of what each level is entitled to, and for a pledge form, click here. Contact Consuelo Trujillo at 505-999-5805 or consuelo@iianm.org with any additional questions.

www.iianm.org

These carriers have partnered with our association to support the vitality of the independent agent system in New Mexico. Take a moment to visit their new page on our site and take advantage of their varied products and services. Independent agents have the freedom to choose!

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More than three-quarters of millennials view insurance as a lifelong career and 82% are optimistic or very optimistic that the industry will evolve to attract the next generation, according to Vertafore’s Millennial Revolution survey. After surveying 3,000 young professionals—10 times last year’s respondent pool—the second annual report found work-life balance and technology to be top traits of overall job satisfaction for millennials in insurance. And whatever the industry is doing seems to be working: 77% of millennials plan to stay in the industry as long as possible. “Without having a silver bullet, a few key things [for agencies] to recognize is the types of environments and opportunities that are attractive to millennials in the first place,” says Guy Weismantel, Vice President of Marketing at Vertafore. “Our industry is well set up to have a lot of those things that people are looking for that are going to be attractive to them: freedom, responsibility, work-life balance.” What’s contributing to the long-term outlook? Here are four things independent agencies are doing right: Work-life balance. The survey found that work-life balance and compensation (both 98%) are the most important factors keeping millennials around, with enjoyment of work (96%) as a close follower. “The flexibility in our industry allows for different working models,” Weismantel says. “At a very basic model, it’s the ability to work from anywhere and be connected to your customers and understand what’s happening with claims, policy renewals and prospecting for new business. There’s a lot of flexibility that millennials we know in general really regard very highly in career choices.”

Embedded technology. Weismantel says last year’s survey revealed that the industry was “on the threshold of a tipping point” when it came to technology and improving millennial’s work experience. Looks like the industry paid attention to the generation’s expectations: This year’s results reveal positive results from the investment. “What’s happened in the succeeding 12 months is that that technology is now becoming embedded in business process and now it’s a way for people to do business,” Weismantel says. “It’s gone from ‘I want my agency to be investing in technology to help me do business’ to ‘Technology is now how we do business.’” Social engagement. Millennials are reaping the benefits when using tech and social media to engage with potential customers and foster potential relationships: 34% of millennials use social media for lead generation and new business. It’s another segment that has seen a surge in involvement when compared to last year’s results as agencies are taking note of the benefits. Because the young generation is already so digitally involved - 71% use their smartphones for work and 82% feel technology increases efficiency and the competitive edge - agencies who want to recruit the generation for fresh perspectives, engagement style and succession planning should stay digitally savvy.

BY MORGAN SMITH

PRINCIPAL

4 Reasons Millennials See Insurance as a Lifelong Career

Personal relationships. It’s hard to imagine someone jumping into the independent agency business if they aren’t a people-person, and millennials are no different. Developing close personal relationships with clients is a tried and true characteristic of the business, and it’s a trait Gen Y seems to value. “[Millennials] really value the personal relationships they develop and find that the insurance industry is a place that allows them to have those types of interactions and flourish in that,” Weismantel says. “Because it’s a very relationship-oriented business, oftentimes they have the opportunity to get out on the front line a lot sooner. If they’re on the producer side, they can really start to develop a client list and start to run their own business.” 6

But 18% of older survey respondents still view technology as a detriment to productivity. “I think we see some inhibitors to widespread adoption, but I don’t know if it’s conflict as much as it is just generational resistance,” Weismantel notes. “We do see a generational dividing line in terms of how the technology is being used, but less about a conflict and more of a different kind of channel that I think agencies are starting to adopt to attract these younger people to buy insurance in the first place when more and more of that’s a challenge for many agencies.” If the industry is to successfully compete against directs or outside industries for a boost in millennial employment and satisfaction, agencies need to take note. Weismantel says Vertafore has seen more agencies really start to tout their technology as a recruitment differentiator. www.iianm.org

e h t m o p r u f o s r y G a id urance l o H wish y s e p n w p , I s Ha States your on. o t y l n eas mi i s a f a y t s a e d Moun Mountain Stdaht ealthy hoclci essful year! From

u the py a n n o t h e r s p a h a you a you for k Th a n

Proudly serving New Mexico businesses for over 78 years. www.msig-nm.com Albuquerque, New Mexico 505.764.1400 Sandia Mountain Range Central New Mexico

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New Mexico has the highest number of employee lawsuits It’s time for insurance agents to revisit their commercial clients’ liability portfolio – particularly those working with businesses in certain states. According to a report released from Hiscox, businesses in 12 states are at least 15% more likely to be the subject of an employee lawsuit than the national average of an 11.7% chance. They include: New Mexico (+66% more likely), the District of Columbia (+65%), Nevada (+47%); Alabama (+41%); California (+40%); Mississippi (+39%); Delaware (+35%); Illinois (+34%); Arkansas (+22%); Tennessee (+20%), Georgia (+19%) and Missouri (+15%).

PRODUCER

The reasons why are complicated, but report authors suggest that state laws going beyond federal guidelines are the most likely cause of discrepancies in the rate of employee lawsuits between states. In the case of 10 of the states – all but Alabama and Mississippi – anti-discrimination and fair employment practices have imposed restrictions on smaller-sized companies that need to comply with federal standards. Discrimination, as defined by these laws, comes in many forms including age (over age 40), disability, national origin, race, color, religion, sex (including pregnancy) and genetic information (diseases or disorders in family medical history).

by Caitlin Bronson Source: IBA

dants are subject to a defense and settlement payment. When that happens, businesses can expect to bill their insurers an average $125,000 in claims while taking $35,000 in deductibles on themselves. The report comes just months after a similar survey from Littler Mendelson, in which 57% of human resource and C-suite professionals said they expect workplace discrimination claims to become one of the top business risks in the next years. The statistics are a serious argument in favor of ample employment practices liability insurance (EPLI) for American businesses, particularly those in these 12 states. Without proper coverage, clients could end up on the hook for an extra $90,000, going by national averages. Inadequate limits could also cause a sting, though arguably less of one. Still, more than 22% of private companies surveyed by Chubb Corp acknowledged that an employee lawsuit would cause “the most financial damage to the company.” To sell clients on the importance of this coverage, however, insurance agents may have to do some quick education. According to a 2013 survey from Chubb Corp, just 30% of private companies carry an EPLI policy and as many as 60% mistakenly believe the risk is covered under their general liability insurance policy.

The federal e-Verify system, which ensures all new hires are legally allowed to work in the US and is in place for private sector employers in Alabama, Georgia and Mississippi, also sparks employee lawsuits.

Agents may also have to engage with a different set of clientele in dispelling these myths. Industry professionals say human resource departments are typically responsible for purchasing risk management materials like EPLI, and as such, do not often understand what they’re looking at.

Pregnancy accommodation laws may be behind suits in Delaware, Illinois and the District of Columbia, and credit checks also affect the rate of employee lawsuits in Illinois and Nevada. Criminal background checks, meanwhile, are in place in the District of Columbia and Illinois.

Many policies come with guides to best practices, which could be a good place to start. Otherwise, prevention is the name of the game, Hiscox says.

While it is difficult to ascertain just how strongly these laws influence the rate of employee lawsuits in these states, the effect such lawsuits have on businesses is clear. According to Hiscox, the average legal dispute regarding an employment matter lasts 275 days and in 19% of cases, defen8

“The EEOC provides outreach and education at no cost for businesses, associations and non-profits,” the report advises. “They will provide representatives who can speak at conferences and seminars, based on availability. The commission also has small business liaisons at each regional offices to answer questions about compliance and anti-discrimination laws.” www.iianm.org

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H O L I D AY P A R T Y december 3rd

â&#x20AC;˘ 4pm â&#x20AC;˘ iianm building no rsvp necessary

NextGen to Host Food Drive at IIANM Holiday Party! This Holiday season, help feed hungry families in New Mexico by joining our efforts in donating non-perishable food items to Roadrunner Food Bank. Donations will be accepted on December 3, 2015 at our Annual Holiday Party. Come enjoy great company, food, and spirits while helping a great cause.

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The Three Worst Words in Customer Service

by Rich Gallagher

By changing a few words, you can turn a bad customer experience into a great one. Before: You’ll have to wait in line. After: We should be able to get to you soon – it shouldn’t be more than a short wait.

We all have little things that drive us nuts. Here’s one of mine – the phrase “You’ll have to.” Yesterday I walked into a store, politely asked for help, and was told, “You’ll have to wait for one of our technicians to be free.” I didn’t mind the wait, but it got me thinking how often we hear that statement in public – and how abrasive it is to hear as a customer. (Excuse me, but I don’t “have to” do anything, especially for a stranger!) Most of us probably don’t say “you’ll have to” out of rudeness. We say it because we are trying to protect ourselves, or set expectations with a customer. But when you examine the meaning of this statement literally, you can see where it breeds a lot of customer resentment right off the bat: • It tells another person what to do. • It implies that you have the power in this transaction, not them. • It doesn’t give the customer options. The irony is that, just by changing a few words, you can turn a curt brush-off into a great customer experience. Let’s try a few examples:

CSR

Before: You’ll have to fill out this form. After: I’d like to get a little information from you so we can help you better. Before: You’ll have to wait for a technician. After: I’ll have someone out to help you in just a few minutes. 10

Perhaps the best example of an alternative to “you’ll have to” came when I tried to go to a sold-out Philadelphia Phillies baseball game last year, while I was passing through town. Instead of saying the obvious “We’re sold out – you’ll have to come back another time,” the ticket clerk said, “We’d love to have you see the game. Even though we’re sold out, here’s what I’d suggest – if you’d like, feel free to check at each of our gates to see if there are any extra tickets. Good luck!” As it turned out, there were no tickets at any of the gates and I eventually left empty-handed – but every person I dealt with at the ballpark was so polite, upbeat and helpful that it was still a great customer experience. I later discovered that these people are specifically trained for what to say to fans in situations like these, and it works! So look critically at times where you are tempted to say “you’ll have to” to customers, and start rehearsing new responses that speak to your customers’ interests. The difference will be amazing! Rich Gallagher is a communications skills expert and seminar leader. He is the author of several books including “Great Customer Connections” and “What to Say to a Porcupine”.

www.iianm.org

Check out our new website! www.market-finders.com

Proudly Serving the Independent Agents of New Mexico since 1977

5201 F Venice Ave NE - P.O. Box 90280 Albuquerque, NM 87199-0280 (800) 530-8711 (505) 822-8711 Fax: (505) 822-1165 La

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www.market-finders.com

December 2015

Click on a class to register: Monday

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Thursday

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H O L I D AY P A R T Y

Webcasts:

Commercial Lines Claims That Cause Problems

Agency Ownership Perpetuation

12:00 - 2:00 pm

16 P&C Exam Review Kitty Leslie

e c i f f O ed Clos 12

Webcasts:

Liability Issues to Worry About Indemnity Agreements & Additional Insureds

Training New Employees

e c i f f O ed Clos e c i f f O ed s o l C

E&O Risk Management

Negotiating Conflicts

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Rated A+ by A.M. Best and S&P Wardâ&#x20AC;&#x2122;s 50 best-run company Named the #3 large company to work for in America Manages over $3 billion in assets 61st largest insurer in the nation In business since 1925 Less than 3% voluntary employee turnover

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Agency optimism plummets 40% but what's scaring them?

by Caitlin Bronson SOURCE: IBA

The reasons for this drop in confidence are myriad, though the report identifies three trends as among the biggest perceived “threats” to independent agencies: predictive analytics, the entrance of Google into the insurance space and shopping trends of the millennial generation. Predictive analytics were viewed as the single biggest threat to the future of the agency channel, with 59% of respondents telling Vertafore they were moderately to seriously threatened by carriers who are integrating risk analytics solutions into their business models. In that line of thinking, carriers become more self-sufficient and have less need of the agency channel. Another major threat expressed by agents is the influx of alternative distribution channels into the insurance space, including aggregator sites like Google Compare and Zenefits, and retailers like Walmart or various car dealerships distributing products. More than half (54%) of agents surveyed now feel moderately to seriously threatened by these new entrants.

Independent insurance agencies across the country are dramatically less optimistic about their future growth prospects than they were a year ago, a new report reveals.

PRINCIPAL

According to software provider Vertafore’s 2015 Agency Sentiment Survey, optimism about future growth based on year-over-year results has fallen among agencies of all sizes, and particularly among large agencies (earning more than $10 million in revenue), where only 33% claim to be “very optimistic” about their prospects. That’s nearly a 40% drop since 2014, when 70% of large agencies said they were feeling very positive about the future. Among smaller agencies there was less of a shift, though levels of optimism remained low. Just 31% of midsized agencies (earning between $1 million and $10 million in revenue) said they were “very optimistic” about their future success, down from 60% last year. And among the smallest agencies (earning less than $1 million in revenue), optimism sank from 25% saying they were feeling positive in 2014 to 11% feeling the same in 2015. Perhaps consequently, just 29% of all agencies told Vertafore they were focusing on aggressive growth, compared to 42% in 2014. The focus on maintaining current sales levels, meanwhile, jumped to 12% from 5% last year. 14

Finally, the increase in online insurance resources and the shopping preferences of the millennial generation have agents feeling threatened. A full 48% of agents said they are concerned by this generation’s self-guided purchasing habits and the lack of agency resources to accommodate these preferences. Guy Weismantel, vice president of marketing of Vertafore, points out that agencies are not standing still, however. Four out of five agencies reported increasing their IT budgets over the last 12 months in order to address these threats, with 47% planning to spend more to advance customer self-service capabilities, while 43% are looking to investments in cloud services and solutions. Investments in mobile (40%) in the form of mobile-friendly websites and apps are also among technology budgets for agents in 2015. “The insurance industry is on the verge of disruption in the way we work and do business,” Weismantel said. “New self-service technologies are popping up daily, contributing to the evolving role and future of the insurance agent. Rather than shying away from change, our survey shows that agents are embracing and integrating technologies into their operations to enhance the customer experience.

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IIANM’s 2016 Calendar of Events

january 1st 12th & 13th 18th 21st

July Office Closed - New Years P&C License Exam Review Office Closed - MLK Jr Day L&H License Exam Review

February 9th & 10th 15th

P&C License Exam Review Office Closed - President’s Day

Spring Seminar Office Closed - Good Friday

P&C License Exam Review L&H License Exam Review

5th Office Closed - Labor Day 21st & 22nd 82nd Annual Convention!

11th & 12th 20th

P&C License Exam Review L&H License Exam Review

November P&C License Exam Review Southern Seminar (tentative) L&H License Exam Review Office Closed - Memorial Day

June 7th & 8th

P&C License Exam Review Last Chance Seminar (tentative)

October

May 10th & 11th 11th & 12th 19th 30th

9th & 10th 23th & 24th

September

April 12th & 13th 21st

Office Closed - Independence Day P&C License Exam Review Roswell Seminar (tentative) L&H License Exam Review

August

March 9th & 10th 25th

4th 12th & 13th 19th & 20th 21st

P&C License Exam Review

8th & 9th 17th 24th & 25th

P&C License Exam Review L&H License Exam Review Office Closed - Thanksgiving

December 1st 13th & 14th 26th - 30th

Holiday Party P&C License Exam Review Office Closed - Christmas

www.iianm.org

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David vs.

Goliath

Competition in Every Corner

I recently attended a presentation by marketing guru Stephen Henning, author of “Killing Giants: 10 Strategies to Topple the Goliath in Your Industry.” Drawing on his days at Sony, Henning discussed how the company was the technological leader in magnetic tape, which was unparalleled in terms of sound quality. Although Sony was concerned about a smaller competitor - TDK - it was less concerned about entrants in the space offering a different approach, confident their sound quality could not match Sony’s. But as the portable cassette player (Sony Walkman) evolved into personal audio digital players (Diamond Rio), MP3 files became a game changer. The sound still couldn’t match Sony’s magnetic tape, but the convenience to the consumer yielded such a significant advantage that the slight difference in sound quality was not enough of an impediment to slow adoption of the new technology.

PRODUCER

I couldn’t help but think about how this lesson applies to the insurance space. For decades, insurance trench warfare divided into the “exclusive” agency channel versus the independent insurance agency approach. Until the 1990s, the nascent “direct” channel was rather benign in terms of personal lines market share. For the most part, the insur-

by Dave Evans

ance carriers were monogamous in terms of their support. The independent agent carriers focused their resources on that channel and the exclusive agency carriers on promoting their brand and their captive agents. Many carriers still take this approach. But since then, the Internet and the evolution of digital marketing have created a new paradigm. Independent agents must now face the reality of multiple distribution channels—and not just in personal lines. The direct channel now offers BOPs and commercial policies. And recently, new competition emerged when national payroll companies like ADP and Paychex started offering health, retirement, disability, workers comp, BOPs, umbrellas and more through what they call the convenience of a one-stop solution for payroll and HR compliance. Now, technology and benefits firms like Zenefits offer free software to their clients as an added value. Agencies that have traditionally focused on competing with the “agency down the street” now have a different landscape to navigate. Digital marketing is increasingly critical to generate awareness and drive consumers to your website. The next step is defining your agency’s brand - the essence of your business. In the new normal of technology-driven competitors, how do you position your agency’s identity? Providing a choice of carriers to tailor the appropriate coverage is the hallmark of the independent agency. But ease of doing business, 24/7 accessibility for claims reporting and illustrative quotes is now another important component. Demonstrating expertise is also critical. The Trusted Choice® Freedom Campaign tools and TrustedChoice.com’s Advantage Subscription are a great place to start. You may feel your agency is already touching all these bases. But how do you compete with a company that offers free software and integrated HR and ACA compliance? Independent agencies need to consider strategic partnerships with firms that offer these services at the same level of commitment and service as your agency so your clients can perceive the same ease of doing business. Larger businesses will continue to seek specialists to solve their unique needs, but small and midsized businesses may opt for integrated, perceived lower-cost solutions. A boa constrictor doesn’t kill their prey by crushing it. Rather, it tightens its grip and shuts off the blood flow. For these ambush predators, the size of the prey increases as they get older and larger. Right now, the independent agency channel is the larger and older distribution channel for commercial insurance. The disruptors are here to stay. To compete, you need to disrupt the way your agency does business. www.iianm.org

Virtual University’s Ask an Expert

HO ho homeowners question ulty

VU Fac

Each year, we receive thousands of "Ask an Expert" questions. Some are brilliant, while others are...well, let's just say "less than brilliant." However, every now and then, we get questions that are just plain "different." Below is an example of such a question received days before a major international event.

"Two questions, please: "I have an in-home 'business' involving the manufacturing and distribution of toys for children. I do not charge for these toys and earn no income from them. I have both on- and off-premises exposures for damage to the toys, my personal property, and my liability. Does my HO-3 cover me? "I also operate a vehicle that travels largely by air, but with very frequent ground stops. The vehicle is unlicensed and, while it can be used on public roads, it was not designed as such nor is it used that way. Will a personal auto policy protect me, is my homeowners sufficient, or do I need a recreational vehicle policy? "Merry Christmas! "kkringle@northpole.org" Dear Mr. Kringle: I ran your questions by the VU faculty and their responses are listed below. I hope they're helpful. P.S. With regard to that other list I sent you in late summer, please change the Dell 8100 to a Dell 8300. Thanks! FACULTY RESPONSE While you have a number of uncovered exposures, and no insurance company is willing to underwrite the risk, you are probably beyond the jurisdiction of any court. You are as judgment proof as someone who has no assets. P.S. I will leave you the hot chocolate and cookies as usual.

sure, clearly covered by named perils, but perhaps not by named exclusions coverage. Liability could be a concern either way. Frozen waste striking someone at a high rate of speed is dangerous.

FACULTY RESPONSE This doesn't sound like a business but rather a charitable effort, and there is no exclusion for doing charitable things in the HO policy. As to your vehicle exposures, the PAP won't do you any good unless it has at least four wheels. I'd suggest that you check with Arctic Mutual to see if they have a special artisan program that suits your unique operations.

FACULTY RESPONSE In today’s society you may need the following coverages IF this is truly a business:

FACULTY RESPONSE Kris - Your homeowners policy might cover you, but you do have a definite personal injury exposure due to your method of dropping down chimneys unannounced. Invasion of privacy is a concern. You may also have a workers comp exposure for the elves. I understand they have recently unionized which gives you the possible business risk of a strike. The vehicle which travels through the air is an aircraft. Is it a licensed vehicle? Do you ever use it to service your residence premises? It might actually qualify as mobile equipment on a CGL policy...we need more details. You might be in trouble with the EPA due to the hazardous waste produced by the reindeer. However, this might not be a pollution exposure, but rather a “falling objects” expo-

I would consult with both an attorney and a competent insurance agent. You know how litigious our society has become.

1. A CGL with as high a limit as you can afford, with an umbrella with a limit about the size of the net worth of Bill Gates. Can you imagine if you crash into the Sears Tower?? However see item 2 below, the CGL excludes aircraft (exclusion g). But you still need the CGL for Products Liability and Completed Operations. 2. The vehicle is a not an “auto” or “mobile equipment” thus you must have aviation coverage. Again limits as high as $$$$$$$$$$ will be in order. This is in case you collide with a jumbo jet liner or the Sears Tower. 3. Also needed are Crime coverage, EPL (for those elves), Terrorism Coverage, Life Insurance, Health Care and Long Term Disability, and Workers Comp. In fact, I’D stay home, and forget this “in home business”.

To view more faculty responses, or for more information, click here. You will be required to log-in, email rachel@iianm.org if you need help.

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Steve

ANDERSON.com by, Steve Anderson (Always feel free to email me with comments, new ideas or products that have worked for you. I will check them out and spread the word!)

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Be Ready for Unplanned Communication

• If you aren’t already engaged online and talking about your brand, just one negative news story can be rocket to the top of the search engine results.

Is your agency prepared to deal with a call from an upset client, with a major fire at an insured business, or simply an online negative review about your sales or service? While all different, all are likely unexpected and requires internal planning and discussion to ensure that your response is timely and effective.

• If you haven’t established your own content and claimed an online foothold for your brand on your own terms, it can become extremely difficult to make up lost ground later.

Complaining Customers There will always come a time in every agency when a client is upset. Your challenge is to handle the situation in a way that leaves the customer satisfied and if you’re lucky, you can even encourage him or her to serve as a passionate advocate your agency going forward. You and your customer service staffs’ ability to effectively deal with customer complaints provides a great opportunity to turn dissatisfied customers into lifelong customers. Here are some tips to help ensure that you are ready to help when a complaint is made: • LISTEN…hear what they have to say and don’t interrupt until they are finished. Don't get defensive nor take the complaint personally and don’t jump to conclusions. • Once they have finished, repeat back what you heard and ask questions to better understand their perspective. You want to solve their problem, not argue with them, so empathize and look for ways to solve the issue. • Remember that an apology will often diffuse the situation. Don’t place the blame on another person or department. Simply let them know that you are sincerely sorry for the issue that is causing them concern. • Work with the customer to find an acceptable solution and you can start by asking them "What would be an acceptable solution to you?" They may not know, but making them a partner to solve the issue will assure them that you care about them and the outcome. Be prepared with a few solutions of your own to offer the client to consider. • If you need to work with someone else internally to solve it, do so quickly! Remember that customers prefer the person they are speaking with to be able to solve their issue. When complaints are sent upstream to be handled by others, only add to the customer's frustration.

• Every mention and every connection you create in cyberspace creates a rich network of brand content.

Professional Response to a Negative Review So, someone posted a review on a social media site pointing out some a bad experience they had with your agency….what do you do? • Keep your composure and never engage in a virtual shouting match with someone online, even if the post was off base or even false. If the post is threatening or in some way may violate the Terms of Service for the site, flag it for the site’s support team to review and possibly have it deleted. • Be civil and professional in your response to any online review. Give your professional perspective of the situation and offer a solution. It is important to show others that you have taken the time to address the poster’s concern and have taken steps to solve the problem. If the poster is someone that you know professionally or personally, consider a private message or outreach through another method to discuss. • Don’t respond to one compliment or compliant, but not others. Consistency is critical to establishing your online reputation! Consider having the marketing department be in charge of monitoring and responding to online posts about your agency. Disaster Communication Social media can also prove an important tool for reaching customers during disasters. • Even when phone lines or power are interrupted, smart phones often still work. • If you have generated a strong following online or have a contact list of customer cellphone numbers, you can maintain important communication during particularly difficult times. This is when your value as an agency can be solidified for life.

CSR

There is no getting around customer complaints. But, if you and your service teams use these tips to navigate through the client’s issues you can turn challenges into growth opportunities. Social Media Scares Negative news Even if your agency isn’t using social media, someone is online talking about you. Wouldn’t you like to be part of that dialogue? Wait and it could be too late.

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Protect Your Home & Family this Holiday Season! ~ tips from IIABA Read these tips and help protect you and your loved ones during the holidays. Read about host liability, how to avoid holiday theft and how to stay safe in parking lots. Also, remember that this is a great time of year to review your insurance coverage - update anything that has changed over the past year, whether it’s a new addition to the house, the family, or your art collection!

PARTY HOST TIPS If Grandma got run over by a reindeer, you’d better hope the reindeer wasn’t drinking at your holiday party. If a guest or third party is injured in an alcohol-related accident, and the drinking can be linked to your party, you could be held responsible. This includes paying medical bills, vehicle repair costs, lost time from work and, in the worst case, claims for wrongful death resulting in huge monetary settlements. A social host’s liability when serving alcohol to guests is no joking matter. Many courts have found non-commercial hosts liable for the damages their party guests cause as a result of consuming alcohol and then driving motor vehicles, and several states have enacted statutes that can be interpreted as mandating non-commercial social host liability. “Most of your partygoers will be worrying about what ‘black tie optional’ means and what kind of wine to bring, but as a host, you need to be aware of your responsibilities,” says Madelyn Flannagan, IIABA vice president for education and research. “Drunk driving is a major problem during this season. And serving up a little too much holiday cheer may lead to being served a lawsuit, or worse, if you’re not careful.”

to purchase special event coverage or a separate liquor liability policy before hosting a holiday office party. Businesses may want to take additional precautions as well, including limiting alcoholic beverages. Taking steps, such as instituting a cash bar, may not ease the problem. Charging employees for alcoholic beverages in an effort to limit drinking parties hosted in the office or at the boss’ home may not always be the best solution for businesses, cautions Flannagan. “It’s important for businesses to remember that once they charge a fee for alcohol, they have technically entered the alcohol sales business, even if only for one night,” says Flannagan. “That carries with it requirements for a liquor license and an array of special liability protection needs. It definitely does not let these employers off the hook.” You can’t entirely eliminate risks, but planning ahead and learning your responsibilities as a host is the best defense. Purchasing a personal “umbrella” liability policy — providing $1 million or more in additional coverage over the limit of a standard homeowners’ or renters’ policy — may be a prudent move for the frequent party host, and can cost as little as $125 a year. How to prevent holiday party accidents and protect yourself or your business: · Limit your guest list to those you know. · Host your party at a restaurant or bar that has a liquor license, rather than in a home or office. · Provide filling food for guests and alternative nonalcoholic beverages. · Schedule entertainment or activities that do not involve alcohol. · Arrange transportation or overnight accommodations for those who should not drive.

When hosting a holiday party, individuals should look to the liability portion of their homeowners’ or renters’ insurance policy for protection if they are sued and found liable for an accident involving a guest who drank at their homes. Consumers should regularly review their liability coverage limits to ensure they are adequately covered should an accident occur.

· Stop serving alcohol at least one hour before the party is scheduled to end.

Many businesses typically host a holiday party in a given year. Employers must make sure their comprehensive general liability (CGL) policies provide coverage for third- party liquor liability through a special endorsement, or they need

· Stay alert, always remembering your responsibilities as a host.

· Do not serve guests who are visibly intoxicated. · Consider hiring an off-duty police officer to discreetly monitor guests’ sobriety or handle any alcohol-related problems as guests leave.

· Review your insurance policy with your agent before the event to ensure that you have the proper liability coverage. www.iianm.org

HOW TO AVOID HOLIDAY THEFT

HOLIDAY PARKING LOT TIPS

Take the simple holiday safety precautions of breaking down or concealing the empty boxes that once held your brand new plasma TV, computer, DVD player or children’s toys. DO NOT place them on the curb in plain view for looming burglars to know what awaits them inside the home.

Malls and shopping centers will be jammed this holiday season. Unpredictable traffic patterns and preoccupied drivers cause thousands of parking lot mishaps that cost consumers millions of dollars each year. Parking lot safety is especially important during the holidays. Consumers should be particularly cautious about where they park because parking lots are also prime territory for thieves, pickpockets, carjackers and vandals.

“Holiday theft can happen to you,” warns Madelyn Flannagan. “It is very easy to be consumed by the hectic pace that this season brings, but everyone needs to take time and put family and home safety at the top of their holiday wish list. “Only half of the population appears to be aware of the risks involved with tossing an empty box out on the curb. That figure needs to be 100 percent,” stresses Flannagan. “Everyone is a target of holiday thieves. The box from your new computer is an open invitation. Boxes from toys inform criminals that you have children.” After opening gifts, independent agents and brokers urge recipients to break down all boxes into small pieces and discard them in non-clear trash bags. Home Burglaries—Homes are most often targeted during the holidays, particularly because owners are more likely to be away visiting relatives while their new, expensive gifts remain unattended inside.

Surprisingly, many parking-lot mishaps do not involve two drivers —but rather the result of improper backing into parked vehicles. That increases the likelihood of hit-andrun incidents and the chance that you will be left to pick up the tab. Simple caution is the only real cure to avoid being a victim of parking lot accidents or crime. Parking lot safety tips for holiday shoppers: · Watch for cars cutting diagonally across lots; drive slowly and use your turn signal. · When backing out of a parking spot, be aware of waiting cars, others who are backing out at the same time and motorists who speed through lanes. · Beware when mailing those holiday greeting cards. Post office parking lots have the highest incidence of accidents due to frequent customer turnover.

Independent agents and brokers urge everyone to lock all doors and windows even when leaving home for a short period of time. Furthermore, leave spare keys with a neighbor rather than hiding them outside. Burglars know exactly where to look for spare keys. They are not fooled by fake rocks and other hiding places.

· Don’t park between spots, especially in busy lots. You may gain only retribution from angry fellow shoppers.

Auto Thefts & Break-Ins—Whether parked in your driveway or a mall parking lot, your automobile is one of the most common targets for thieves seeking expensive gifts during the holiday season.

· Park in well-lit areas. If the lot is inadequately lit, complain to management. Retailers and parking-lot owners can be and have been held liable for personal injury in these cases.

Independent agents and brokers urge everyone to bring gifts into homes with you overnight rather than leaving them in your car. When shopping, put all of your packages in the trunk before departing one parking lot and driving to another. Waiting until your next shopping destination allows others to see packages go into the trunk of your car and then you departing into the mall or store. Watch Yourself!—Americans carry more cash and credit cards on them during the holiday season. Independent agents and brokers urge consumers to use a single credit card when holiday shopping rather than carrying several different credit cards or large amounts of cash. To have freedom of motion and clear visibility, do not overload yourself with packages when leaving a store—you cannot defend yourself with your arms full of bundles. Keep purses zipped and close to your body in your possession rather than leaving it in your shopping cart. Avoid walking alone and leave stores well before closing time for a more active parking lot.

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· During the day, park away from buildings to reduce the chance of dings from other car doors or shopping carts and the likelihood of vandalism; but avoid secluded areas, especially at night.

· Ask mall security to walk you to your car if you feel you are not safe. · Always roll up your car windows and lock your car doors. · Always have your keys ready when approaching your car and check the back seat and under the car before getting in. · Put all shopping bags in your trunk. Do not keep them in the front or back seat where they are visible to thieves. · Put all of your packages in the trunk before departing one parking lot and driving to another. Waiting until your next shopping destination allows others to see packages go into the trunk of your car and then you departing into the mall or store. · Review your insurance coverage with your agent. Liability coverage will protect you if you hit another motorist, collision will cover the damage to your car, and comprehensive will insure you for damage by vandals or theft of your vehicle. 23

INSURANCE EMPLOYMENT HIGHEST EVER Employment within the industry continues to reach new heights each quarter as more Americans than ever are employed by the insurance industry.

Number of US insurance industry employees

Source: The Department of Labor Statistics & Insurance Business America 2.56 million 2.55 million 2.54 million 2.53 million 2.52 million 2.51 million 2.5 million Jan 2015

Feb 2015

March 2015

April 2015

May 2015

June 2015

July 2015

Aug 2015

Sept 2015

Source: The Department of Labor Statistics & Insurance Business America 24

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The Smithsonian explains what's behind the holiday tradition of hanging hosiery on the fireplace. Click here to read more...

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