Drive New Business to
5%
COMMISSION
INCREASE ON NEW BUSINESS*
Policy Effective Dates October 1, 2015 to December 31, 2016
Thank you for placing your business with a New Mexico company. We look forward to providing your clients with a wide range of local services to enhance their insurance experience.
New Mexico’s Experts in Workers’ Compensation Insurance. 3900 Singer Blvd. NE • Albuquerque, NM 87109 • 505.345.7260 or 800.788.8851 • www.NewMexicoMutual.com
*Excludes accounts that were insured with New Mexico Mutual in the previous 6 months, canceled policies, rewritten policies, and renewal policies. 2
*Applicable to new policies bound with effective dates of October 1 to December 31, 2016.
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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
"The Voice" of Independent Agents since 1934
IIANM Events
VoZ
Jingle & Mingle - Holiday Party Invite
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Features
Become a 2016 Partner!
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Principal - Senators Introduce Bill to Repeal ‘Cadillac Tax’
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NextGen Heavy Hitters Spotlight - Ryan Brennan
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Producer - Hobby Drones: All HO Policies Are Not Created Equal
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CSR -
Care for New Customers
15
Ask an Expert - Can CSRs Handle BOPs?
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Principal - Is Risk Avoidance Holding Your Agency Back?
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Producer - Small Business Owners Don’t Know About Many Commercial Insurers
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Industry Tidbits
In Every Issue IIANM 2015 Company Partners! 05 Tech Talk 08 Snap Stats 24 Odds n Ends 25
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
Advertiser Index Acuity 13 Big “I” Employee Benefits
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Burns & Wilcox Back Cover DocuSign 23 Integrion 14 Market Finders, Inc. 07 Mountain States Insurance Group
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New Mexico Mutual 02 3 Union Standard 10
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:
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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.
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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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Senators Introduce Bill to Repeal 'Cadillac' Tax by, Wyatt Stewart,Big “I” director of federal government affairs
PRINCIPAL
ing—the exact opposite of the ACA’s stated goals. As a result, this tax will be harmful to middle-income Americans across the country. For these reasons, this is a top priority for the Big “I,” which strongly supports Sen. Heller’s and Sen. Heinrich’s legislation. The introduction of this bipartisan legislation in the Senate marks an important milestone in the effort to repeal this tax.
Sen. Dean Heller (R-Nevada) and Sen. Martin Heinrich (D-New Mexico) have introduced legislation that would repeal the Affordable Care Act’s (ACA’s) 40% excise tax, also known as the “Cadillac” tax. Starting in 2018, the ACA will impose a 40% tax on health benefits that exceed an established annual cost. That year, health plans exceeding $10,200 a year in value for individuals or $27,500 a year for families will be subject to this 40% tax. This tax will impact a greater number of individuals each year while health care costs continue to rise. According to a March survey by Mercer, a benefits consulting firm, about one-third of employers will face the tax in 2018 if they do nothing to change their plans. By 2022, almost 60% will face the levy. The Alliance to Fight the 40 predicts that this will lead to a reduction in employer-sponsored coverage and an increase in employee cost shar-
In addition to the Senate legislation, two related bills exist in the U.S. House of Representatives. Rep. Frank Guinta (R-New Hampshire) has introduced H.R. 879, the “Ax the Tax on Middle Class Americans Health Plans Act of 2015,” and Rep. Joe Courtney (D-Connecticut) has introduced H.R. 2050, the “Middle Class Health Benefits Tax Repeal Act,” both of which would repeal the tax. Earlier, Rep. Courtney penned an op-ed in The Hill newspaper in support of his legislation. The Big “I” has endorsed all three efforts and continues to work as part of the Alliance to Fight the 40 and with both chambers in a bipartisan fashion on this critical issue.
jingle
AND
MINGLE
please join us at the iianm annual
H O L I D AY P A R T Y december 3rd
• 4pm • iianm building no rsvp necessary
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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
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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!)
Help Google Google has the largest share of online search. Making sure Google likes your agency website will help your site show up in online searches.
How Google decides what sites to display has evolved over the years. It will only show sites that have relevant and useful information for users. So to become Google’s favorite you need to follow certain steps:
High Authority Links Your website’s “authority” or “Page Rank” is one factor that will help your site show up in a search result. The more that other websites with high authority link to your site, the higher Google ranks your site. In other words, more weight is given to links from an authority site of high expertise than sites having a low expertise. Google will even impose a penalty for distributing bad links if low-quality links are in your content. If you are establishing a high-quality connection throughout your content, that makes Google identify you as a high-quality site. The best way to get high-quality links is to create high-quality content that others want to link.
Appropriate Content Keywords Content Keywords are still important but don’t carry the same weight as in the past. However, it continues to be important for you to make sure the keywords (or search terms people use to find your information) are appropriately used in your articles and other content. Your keywords help Google better understand the information on your page so they can list your page in a search result.
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Your Website Good Heading and Description Tags Another way Google evaluates the information on your webpage is with the help of metadata (information contained in the actual code that makes up a web page). This information helps Google lead traffic to your page rather than falling back on related keywords. In this way, Google will send people that are searching for information your website provides to your page, which will bring more business to the agency.
XML Sitemap Development An XML Sitemap provides search engines with an easy to “read” catalog of all your website pages. Every website should have a sitemap. You can create an XML sitemap using several available free tools. These tools will also help you to alert Google that your site is ready to be indexed. A sitemap acts as a guide for Google to recognize what your website is all about and how those pages and links are relevant. Much time is saved depending on how the search engine ranks your page for a search result. While Google has the majority of search traffic, the principles described here also apply to Bing (and other search engines). This admittedly more technical tip is important to remember when creating a new website, updating an existing site, and when adding new content to your site. Consumers are increasingly likely to start their search for insurance help with an online search. You want to do everything possible to have your agency website show up in their search results. What other tools and/or steps do you take to make your website visible to the online consumer? Let me know.
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Goodbye, bookmarks. Hello, Web Clipper. Evernote Has Updated the Web Clipper I am often asked how I am able to keep up with so much information. Evernote is one of the tools I use. I rely on it daily to capture information in various formats that I want to save and use later. I have written about the benefits of using Evernote several times in this newsletter.
Once you capture the page, the clipper allows you to add it to a particular notebook as well as add tags that help make it easier to find later. For example, when I capture an article I think might be a good TechTip, I add the tag “TechTip” so I can quickly pull a list of items with that tag later. The reason I am writing about the Evernote Web Clipper now is because it has been enhanced to work better with a few popular websites. These include: • LinkedIn: Allows you to clip relevant profile content from LinkedIn. An excellent way to prepare for a meeting.
If there is a PDF report that I want to review later, I capture it into Evernote.
• NYT Cooking: Planning a meal? Clip recipes from NYT Cooking and go from store to stove.
If I see an article I find interesting, I capture that article into Evernote.
• Amazon: Comparison shopping? You can clip the Amazon products you are considering directly into Evernote.
I even use a service that automatically retrieves my bank and utility statements and adds them to Evernote. I’ll share that service with you in an upcoming TechTips.
• YouTube: Want to remember a video? Clip it to get a beautiful note with a video preview image.
The particular Evernote tool I use to capture web articles and pages is called the Evernote Web Clipper. The Web Clipper is a browser plugin available for the Chrome, Firefox, Safari, and IE browsers. To clip a web page, you simply activate the clipper. There are several options: • Article: Clips and stores the full article on the page. • Simplified Article: Strips out most graphics and other page elements, so you capture just the article text. This is my default capture mode. • Full page: Does what it states and captures the entire web page.
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For me, Evernote is an indispensable tool, and Web Clipper makes it incredibly easy to capture all the information I want. 9
A Commitment to Young Independent Agents 2015
Together, Your Future is Our Future • 2015 Heavy Hitters Program Union Standard is committed to working with young independent agents because their future is our future. Investing in the education and development of the next generation of agency professionals provides the support necessary to achieve the real goal of mutual success. We recognize the need to foster new talent to perpetuate the independent agency system, as well as provide our best young agents an even greater competitive advantage. Interested in participating in our Heavy Hitters Program? Contact your local Union Standard branch office today. Union Standard’s Heavy Hitters Program – Preparing Agents for Tomorrow
A M
BEST
Commercial Insurance >> Done the Right Way >> By a Company of People >> Who Care
6501 Americas Parkway NE, Suite 600 | Albuquerque, NM 87110 P 505-830-0038 | TF 888-387-0038 | F 505-830-0033 | usic.com 10
Union Standard Insurance Group is a member company of W. R. Berkley Corporation, an insurance holding company that is among the largest commercial lines writers in the United States.
www.iianm.org
UNION STANDARD’S
HEAVY HITTER Ryan Brennan,
Berger Briggs Real Estate & Insurance
Q A
Please tell us a little about yourself…
I was born and raised here in Albuquerque, NM. I went to St. Pius High school, graduated in 2006 and went to Regis University in Denver on a soccer scholarship. I graduated from Regis in 2010 with a Business Administration Degree with an emphasis in Finance and Marketing and decided to move back to Albuquerque. I started working at Berger Briggs in August of 2010 and have been here ever since.
Q A
Can you tell us a little about your current responsibilities?
As an Agent at Berger Briggs it is my job to assure that our current accounts are renewed and that the proper coverage’s are in place to assure there are no gaps in their program. I am also responsible for making sure that we keep up to date with any changes in our clients operation. Lastly, I am responsible for going after new business for the Agency.
Q A
How and why did you choose insurance as your career?
Both my Father and my Grandfather were insurance agents so I was familiar with the industry and knew that if you worked hard it is a great way to earn a good living. I also really like that it is an industry where there is a direct correlation between how hard you work and how much you are able to make. Being that we work on commission, there is no one else that really determines how much you make besides yourself. The other thing I really enjoy about being an insurance agent is you get to work with owners of all kinds of different businesses and I find it interesting to learn about their businesses and get an in depth understanding of what they do.
Q A
Do you have any influences/role models that have helped shaped your career?
Since I have started at Berger Briggs my Father, Fred Brennan, has not only been my mentor but my role model as well. He has taught me that working honestly and morally is the best way to do business and to never take shortcuts. I hope to one day know half as much about insurance as he does. I have seen how hard he works on every one of his accounts and makes sure not to miss any details and that is why a lot of his clients have been with him for over 20 years.
Q A
What do you think are the key challenges that young professional agents face in our industry?
I think the biggest challenge for young agents today is to continue our education and knowledge base instead of only concentrating on getting new business. The insurance industry is constantly evolving and changing and I think it is extremely important to stay on top of these changes. A lot of the prospective clients we come across have been with the same agent for over 10 years. I think that the only way you can get these prospective clients to trust their business with someone new is to be able to show that we are knowledgeable and that they can trust their business with us.
I
Big “ ”dea We are working hard on next year’s 2016’s education calendar. Keep up with your education and knowledge base by staying tuned for next month’s La Voz featuring a full listing of upcoming classes! 11
hobby drones: all ho policies are not created equal An agent has some questions after reading an article on the Big “I” Virtual University about exclusions for personal drone use.
by Bill Wilson
Q
PRODUCER
A
"Were you referring to an ISO endorsement that included coverage for model or hobby aircraft? I don’t find this coverage in the HO policies of [four insurers]. And wouldn’t the business exclusion remove coverage for an insured real estate agent who uses a drone to take pictures of homes?"
“The aircraft liability exclusion in all ISO HO policies defines ‘aircraft’ as follows: ‘Aircraft means any contrivance used or designed for flight except model or hobby aircraft not used or designed to carry people or cargo’ [emphasis mine].
A lot of carriers don’t make this ‘model or hobby aircraft’ exception. That’s why we say personal lines insurance is not a commodity—significant differences often exist between policy forms. And, as evidenced by one of the very upscale carriers you mention, inferior coverage doesn’t necessarily result from cheaper product. Consider the following: Several years ago, a claim involved $25,000 water damage in a condo unit due to a water leak in the unit above. The downstairs condo had coverage under a ‘deluxe’ condo policy that was superior to the ISO HO-6 in many ways—but water damage wasn’t one of
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them. The claim would have been covered under the plain vanilla ISO HO-6, but the insured was out $25,000 under the more expensive and overall better form. This forced the downstairs condo owner to go after the upstairs unit owner, whose condo insurer at least initially denied the liability claim. Another example is the exclusion for ‘repeated seepage or leakage for weeks, months or years’ water damage in many homeowners policies. ISO got rid of this exclusion around 1991—as long as the water damage is hidden and reported promptly, the ISO HO-3 covers the damage. Considering this is a major source of claims, a purchasing decision between several HO policies should reflect the value of an ISO form if there is a greater risk of this happening. P.S.: The business exclusion in the ISO HO policies would likely remove liability coverage for BI or PD arising from any excluded business activity. Not every ‘business’ activity is excluded—some exceptions apply—but an adult who makes their living selling real estate would likely be unable to secure coverage under the HO policy for using a drone in that business activity.” Bill Wilson is director of the Big “I” Virtual University. This question was originally submitted by an agent through the VU’s Ask an Expert Service. Answers to other coverage questions are available on the VU website. If you need help accessing the website, email rachel@ iianm.org to request login information.
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Care for New Customers According to “Are You Being Served?,” an article in The New Yorker, 80 percent of companies surveyed said they deliver “superior” service. But consumers put that figure at just 8 percent. That’s quite the discrepancy. The article concludes: “The real problem may be that companies have a roving eye: they’re always more interested in the customers they don’t have … they end up devoting all their energies to courting us, promising wonderful products and excellent service. Then, once they’ve got us, their attention wanders.” Does this happen to your new customers? Certainly not intentionally. But without specific plans to support new client “on-ramping,” it could. After all, it’s easy during the set-up of a new account to lose sight of the client—the actual person or people behind the account. The processes of your firm are second nature to you. They are unfamiliar to your new clients. Don’t leave them in the dark. They hate the dark. And, you only get one chance to make a first impression, right? That’s why a well-planned customer service approach is so important. It can change the initial — and the lasting — impression a customer has of your agency. Some ideas to consider:
1
Know the obvious.
2
Provide contact information.
Don’t show up at your first meeting and ask the things you should already know about their company. Do your research and impress with the head start you’ve established.
Not just for you, but for everyone who might touch the account. Be clear on areas of responsibility and provide multiple points of contact — e-mail, phone, social media links. Include photos when possible. It’s nice to have a face connected to the name.
3
Pre-empt FAQ.
You know the most common issues or concerns new clients have. Give them the answers before they need them. They may be too embarrassed or initially overwhelmed to even ask.
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Check in frequently.
5
Explain next steps.
6
Anticipate.
Clients appreciate knowing what happens next. Be sure to let them know expected timelines as well.
If you were new to the account, what might you be wondering about? Addressing potential issues before they arise positions you as the expert.
7
Establish methods for formal and informal feedback.
Let clients know you welcome their input.
8
Respond.
9
Deliver as promised.
Always and promptly. Even if you don’t have a solution yet, let them know you are working on it.
If possible, over-deliver — ahead of time and under budget. But if you hit a snag, don’t wait until you’ve blown a deadline to let the client know of any issues. People understand when issues arise, but they don’t want to be taken by surprise.
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Get personal.
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Become a resource.
At the same time you’re getting to know the business, get to know the person.
Forward articles, research or other information you find that could help clients with their jobs, even when not directly related to the insurance services you provide. It’s simple to forward the link and become a reliable resource. Valued partners become long-term partners.
CSR
a. Be sure to ask in the beginning what kind of communication contact each client prefers. Some appreciate phone calls, others want e-mail. Still others want to be poked in social media.
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Do so more often than you might with an established client. But again, check the clients’ preferences, too. Even a quick, informal follow-up at the end of each week —“Everything OK? Just checking in to make sure everything we did this week makes sense.”
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Virtual University’s Ask an Expert
red ve c o C opi ing T om g c rin up in 16 Sp ar 20 emin S
can personal lines csrs handle bops? ulty
VU Fac
We were recently asked our opinion about whether personal lines CSRs could also handle small business accounts written on BOPs. While some CSRs can make the transition, it is fraught with perils. Find out what the VU experts think about the realistic expectations of such a change.
“We want to know if you have any feedback on using a personal lines CSR to write BOPs. We would like to get any remarks from agent(s) that may have done this or are doing this. We’re considering letting our personal lines staff handle small commercial accounts and wondered what the pitfalls might be.” There are agencies that have tried this..both successfully and unsuccessfully. Depending on your staff and their training, it’s doable, but it may not be as easy as you think. We ran this by the VU faculty and their responses are below. In addition, we’re soliciting input from agencies with experience in this area and will add their comments as received.
Faculty response....
I think a lot of people equate personal lines and small commercial as about the same thing...something a personal lines CSR can easily handle. The truth is that, while there are some similarities, there's a lot to learn about small commercial and BOPs. The list of coverages and exposures is long and I won't go into detail here. Can a personal lines CSR sell and service a BOP? Sure, some of them can, but only after the proper training.
Faculty response....
When I was in an agency, we developed a "small business unit"...this unit did personal lines and small commercial. The key is proper training. There are new exposures here that personal lines folks aren't used to.
Faculty response....
I'm assumimg that the CSR will be given the BOP account by the producer, who has thoroughly reviewed the insured's exposures to be certain the BOP is the correct policy, as opposed to the CPP, that all correct endorsements have been used, and where there is no BOP endorsement available, the account has also been quoted on a CPP where the are many more endorsements for tailoring the coverage. I'm also assuming that auto coverage has been placed in a commercial policy or, if H&NO is used, it has clearly been explained to the insured. I'm assuming that the account will be monitored by the fully cross-trained CSR. There should be NO problems UNLESS: 1. At renewal, the CSR is not familiar with EVERY difference in EVERY BOP the agency handles to be sure that the current BOP is still adequate.
2. The CSR is totally familiar with the exposures presented by a commercial client such as TIB coverage—where the insured installs TIB during the policy year and calls in to be sure they are covered. Or what to do IMMEDIATELY if there is H&NO auto when the insured calls to report they bought a truck—last week!! 3. The CSR does not go to at least one seminar a year on the BOP. The ISO forms will change again 1-1-2006 in most states. All the 2004 CPP Additional Insured changes will be made at that time. Including the "auto" vs "mobile equipment" mess. I know that can be explained by the CSR. Of course if the CSR can do all this they should be promoted to PRODUCER!
Faculty response....
I strongly oppose using personal lines CSRs to handle BOP or other small commercial business. The coverage found in a BOP or other small business policy is no less complex than a much larger commercial accounts with CGL, property and crime exposures. There are simply smaller property and crime figures. Many BOP accounts—if not the large majority—lease space and have quite complex contractual obligations. A personal lines CSR has no experience in lease issues. Most producers don’t even know what to look for. I have had the unfortunate experience to read several depositions following a coverage dispute, and a subsequent E&O lawsuit against an agency, where a personal lines CSR had been handling BOP or small package business. The depositions were simply terrible. The plaintiff attorneys quickly discovered the CSR was not conversant in commercial insurance and the defense was sunk.
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. 16
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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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PRSRT STD US POSTAGE
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November 2015
Click on a class to register: Monday
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P&C Exam Review
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Kitty Leslie
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Webcasts:
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L&H Exam Review
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Is
Holding Your Agency Back? by Paul Martin
D
uring my career, I’ve noticed some characteristics of the insurance industry that speak to the personality and tendencies of the people in it. Insurance, by its very nature, is about assessing and managing risk. We examine the risks in life and business and try to put a number on it. We see opportunities to expand our offerings, but we’re cautious at the outset. We think up ways to apply technology, then experiment, implement, and use it. But because of the nature of the work, all the training that emphasizes avoiding mistakes, the natural mindset bent toward the traditional and the status quo, the risk averse among us outnumber the risk takers. Have We Gone Too Far? Now I don’t want to brush off the importance in our industry of avoiding foolish or unnecessary risks. We are a highly regulated industry, precisely because the insurance marketplace can’t afford its players to be too risky. Too many businesses and families are counting on us being there when they need us. We should remember, we made some big promises.
PRINCIPAL
But be that as it may, we shouldn’t let our natural tendencies to avoid risk in providing insurance services get in the way of taking risks in our marketing, our processes, and customer communications using the computer tools right in front of us. Risk and Technology You may not realize it, but the insurance industry has always been a leader in the use of computer technology. Many of the first large mainframe computers used outside of the military and research were purchased by insurance companies. The ability to crunch mountains of numbers quickly made using it a no-brainer. As computers went from whole rooms to desktops, insurance companies and agencies put them to use – rating policies, issuing documents, and keeping records. But not everyone came around so quickly to using the personal computer. Some agencies held out as long as they could. The cost of going to a computer system wasn’t cheap, and there was still the old way of doing things that seemed to work fine. 20
But the evolution of the business world, and the falling prices of computers, eventually forced everyone onboard. When the internet arrived, it was an interesting phenomenon, but beyond email (which was a godsend alternative to mailing all that paper), it was still too clunky and new to be of much use beyond simple informational websites. A Whole New World Today it’s a different world, and it happened all fast. While we were going about our lives, the internet became a whole different animal. Smart phones helped change it. Increasing bandwidth did too. Children who grew up on Xboxes playing Halo with kids on the other side of the world saw it differently than those who had lived through the introduction of PCs and the internet. The internet to them was just the way the world worked. Those children are grown-ups now. They’ve likely never used a phone with a cord, opened the yellow pages, or seen carbon paper, and they don’t care. They are living their lives connected to their friends, families, and businesses at the speed of light. And this is where the riskaverse nature of so many of us in the insurance business is hurting many independent agents. Adapt or Die Marketing today is internet-focused for a reason. That’s where everyone is and wants to be. Even traditional television is struggling to survive as more and more people find what they want streaming online. People are buying what they need online. They’re educating themselves and entertaining themselves online. And they are looking to solve their problems online. We, as independent agents, need to be there to be found online. The risk avoidance tendencies of our industry are holding us back. As a group, we must engage with customers online. We’re not going to radically change the way insurance works, and we shouldn’t even try. But we must find ways to make our insurance agencies visible to the public. The best, most affordable, and easiest way for any independent insurance agent to begin doing that is to do it at TrustedChoice.com. The way we connect with consumers today has changed whether we like it or not. And there’s no going back. www.iianm.org
Choose well and prosper.
No need to limit your selections (fortunately). Group Short Term Disability Guardian Life Insurance Company of America Two plan op�ons for Benet dura�ons-13 weeks or 26 weeks Guaranteed Issue available to groups of 2+ (with specic requirements being met) Maternity Coverage Group Dental Guardian Life Insurance Company of America Offers a choice in selec�ng providers with In Network and Out of Network op�ons Comprehensive coverage is available for Preventa�ve Services Benets include basic services, major services and orthodon�a Group Long Term Disability Guardian Life Insurance Company of America
Group Life Insurance Guardian Life Insurance Company of America A choice of plan op�ons Cost-effec�ve premium/payment op�ons Coverage can be extended to spouse & children Guaranteed Issue available to groups of 2+ (with specic requirements being met) Group Vision Comprehensive Na�onal Network with VSP In and out of network benets Available to groups of 2+ We’re ready to take your order. Contact ChrisƟne Munoz at IIABA at (800) 848-4401 or chrisƟne.munoz@iiaba.net to learn more about any of these opƟons.
Waiver of premium available Residual disability benets 2 levels of plans available: 60% of earnings and 66 2/3% of earnings Guaranteed Issue available to groups of 2+ (with specic requirements being met)
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Small Business Owners Don’t Know About Many Commercial Insurers by Jacquelyn Connelly, IA senior editor
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any small business owners are unaware that many companies even provide commercial insurance, according to the 2015 J.D. Power U.S. Small Business Commercial Insurance Study. But agents can play a big role in adjusting their perception. The study finds that more than 75% of small business owners are unaware that nine of the 17 insurers included in the study provide commercial insurance - and no insurer has a commercial insurance awareness rate above 46%. Not surprisingly, the study also reports that insurers with a primary personal lines focus enjoy a much higher awareness rates than their commercial-centric counterparts: Five of the six insurers with commercial awareness rates above 40% are among the largest personal lines providers, each spending more than $300 million annually on personal lines advertising.
PRODUCER
“There are more avenues to get personal lines quotes - they’re almost more accessible to people,” says Mark Garrett, research director in the insurance practice at J.D. Power. “You have large direct carriers really advertising a lot, and you also have a ton of online aggregator sites where you can get quotes online. Everybody’s pushing that at the consumer in the personal lines space.” For commercial clients, awareness avenues are more limited - and agents and brokers play a crucial role in educating clients about their options. According to the study, when customer awareness of commercial insurance offerings results from an agent, broker or trade group, the proportion of customers who considered shopping or shopped an insurer is 61%, compared to just 38% when awareness results from advertising alone. And Garrett says 70% of the time, small commercial clients rely on their agent as the main source of information; Web-based resources are next in line at 32%. “Whether it’s optimization, product placement or other online resources, it looks like small business owners are doing a little bit of information-gathering on their own,” he notes. “It’s still a differentiator to have a good, well-designed website where it’s easy to find information. But it’s really to augment 22
the fact that 70% of the time, they’re also talking to their agent.” And that guidance may be more important than you think: The study reports that satisfaction among small commercial customers drops a whopping 162 points when the customer believes their agent doesn’t completely understand their business needs. “That’s a really big drop,” Garrett says, noting that the only other situations that result in a similarly drastic decline are when a claim doesn’t cover everything the customer expects it to; the customer has difficulty understanding a rep on the phone; or the customer doesn’t receive a promised follow-up call. “These are basically major frustrations - real high-incidence things that don’t happen a lot, but when they do, they’re huge dissatisfiers,” Garrett explains. “And right up there is this idea of your agent really understanding you, your business and your needs. If not, it’s hard to recover. The agent is just as important as a major ball getting dropped anywhere else in these interactions.” The study also places satisfaction among small commercial insurance customers at 793 on a 1,000-point scale, up 10 points from last year - an improvement driven in large by better communication about premium changes. “Where we see the highest level of satisfaction is when the conversation is done in person or over the phone,” Garrett says. “That’s where the agent can really play a big role and have a discussion about here’s what’s happening, why your rates are going up, options for minimizing the increase. When we see those things happening, that really minimizes the negative impact of having a rate change.” Now in its third year, J.D. Power’s small commercial study examines overall customer satisfaction and insurance shopping behavior among small commercial customers with 50 or fewer employees. “Front and center, the agent has the absolute most impact,” Garrett says. “The No. 1 driver of the way I feel about my carrier and my relationship with insurance is how well I feel the agent understands my specific needs, my business. The agent’s got to know me.” www.iianm.org
& IIABA IIABA (the Big “I”) has endorsed DocuSign as the official electronic signature platform for it’s members. DocuSign is used by 11 of the top 15 US insurance carriers. Benefits For Insurance Professionals: • Grow revenue by getting policies signed faster • Reduce E&O exposure and ensure 100% in good order forms • Save time and money by eliminating printing, faxing and overnighting paper • Delight your clients by sending forms they can sign from any device • Complete your applications, renewals, coverage forms and other documents • Easily upload signed PDFs to your agency management system For an exclusive discount off the industry’s #1 eSignature solution visit:
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Congratulations! Insurance Business America’s annual Elite Women in Insurance recently honored Lynn D. Mintz of AVI Risk Management & Insurance Brokers, for being one of our industry’s best and brightest who are making their mark on the business. Congratulations, Lynn!
Private 100 List (ABQ Journal’s List of Top 100 NM Owned Businesses) #29 - Cress Insurance Consultants, Inc. #44 - Menicucci Insurance Agency #88 - Reynolds Insurance Great job!
Expense Comparisons Insurance industry observers often assert that the IA model is at an inherent disadvantage relative to other distribution systems. They believe other channels have lower costs and thus can pass that savings along to customers. But generalizations can be misleading. A closer look at the data shows that several IA carriers have competed exceedingly well against the direct response giants. Furthermore, the independent agency model fares far better on this metric than captive agency competitors.
SafeTeen Adds Another Emmy to Collection SafeTeen New Mexico added another Emmy © to its growing collection at the Rocky Mountain Emmy Awards in Phoenix last month. Last year’s documentary, “Net-iquette” was awarded the Emmy in the category of Community Public Affairs. As always, the documentary was co-produced with Chris Schueler of Christopher Productions, who also serves as SafeTeen’s Executive Director. As most IIANM members are aware, the SafeTeen organization is housed at the association offices in Albuquerque and operated by staff volunteering their time. Since its founding in 2001, the organization has raised over a million dollars from generous corporate and government donors to fund its programs. Since that time, Safeteen and Christopher Productions have produced fourteen documentaries on issues affecting teens, and this year’s Emmy is the eleventh to be awarded to a ST/CP produced documentary. For this comparison, IIABA examines carriers’ operating ratios for private-passenger auto insurance - the line of business in which all distribution systems compete in a major way. Net operating expense ratios can be used to compare efficiency across companies and distribution methods. Lower net operating expense ratios reflect more efficient operations. When considering distribution channel averages, both national IAs and their regional counterparts beat captive agencies on the net operating expense ratio. National IAs calculated to 40.9% and regional IAs to 38.3%. Captive agency carriers came in higher at 41.2%.
It is true that as a category, direct response writers report better operating expense ratios than IAs or captive writers. However, individual carrier performance varies greatly. On average, direct writers recorded ratios of 29%, but the highest ratios reported by a direct writer was 35%. In fact, since IIABA launched this research review in the mid1990s, we have consistently have found that both national and regional IAs perform better than many captive agency firms and often rival direct response channels on efficiency. 24
Click here to view the complete Marketshare Report 2012 Data www.iianm.org
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Odds ends BEST THANKSGIVING TURKEY RECIPES Go beyond basic brines with turkeys that are infused with the flavors of herbs, fruits and even cured meats. Behold The Cooking Channel’s top 34 methods to prepare your main attraction.
THE 92 BEST THANKSGIVING SIDE DISHES Need some know how or inspiration for what to serve alongside your bird? Check out The Cooking Channel’s tastiest sides. From classic mashed and sweet potatoes to green beans, roasted vegetables and cranberry sauces - all bearing unique flavors.
HEALTHY THANKSGIVING RECIPE ROUND UP In need of some healthy recipe ideas for this year’s Turkey (or Tofurkey) feast? Check out EBF’s health coach’s blog for a little post of some delisious healthy Thanksgiving dishes, all on one page.
THANKSGIVING PIE RECIPES Some things aren't as easy as pie — like choosing which type to serve at Thanksgiving! So, why pick? From modern maple sweet potato to classic apple and pumpkin, these recipes are worth doubling down for.
One-a-Kind Dinosaur Fossil Found in New Mexico
Shhh. Albuquerque is cool, but it's a secret. According to Albuquerque Business First, Albuquerque made Huffington Post’s “5 Secretly Cool Cities Where You Can Still Get in on the Ground Floor.” “Offering authentic Southwest culture by the bucketful and wildly underrated as a destination for lovers of the great outdoors, America’s other mile high city may not have it all just yet, but it’s already [got] a lot,” the story states. “Did we mention that world-class Santa Fe is just a quick hop up the road? There’s even a reliable commuter rail connection, right into their walkable downtown.”
Researchers from the New Mexico Museum of Natural History and Science discovered the skeleton of the dinosaur in 2011, but it took four years to excavate it from the earth. They also needed the help of the National Guard to lift the fossil with a Blackhawk helicopter. The excavation site is about a 30 minute drive south of Farmington.
The story goes on to tout Albuquerque’s Huning Highland neighborhood and the “within-reach Victorian fixer-uppers,” EDo and the “hangout zone” of Grove Café and Apothecary Lounge, Los Poblanos, Zendo coffee shop, “noteworthy microbreweries” Marble and La Cumbre, Rebel Donuts and Five Star Burgers.
The skull of the baby pentaceratops will be on display at the museum, starting Thursday, Nov. 5. Visitors will also be able to watch paleontologists remove rocks and dirt from the fossils, as that work will take place behind large glass windows as a museum exhibit.
“Add in the region’s unique multicultural heritage (think architecture, think a ton of good food, festivals, local traditions) and you’ve got a city that’s not staying under the radar forever,” the story says. 25
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