SC Agent & Brokers Magazine, Winter 2012
Trade publication for the SC independent property and casualty insurance industry by the Independent Insurance Agents & Brokers of SC for both members and nonmembers. In this issue: event photo recaps of annual convention; columns or articles on cultivating online brand, Consumer/Agent Portal (CAP, SC immigration requirements, avoiding E&O troubles in remarketing accounts and moving forward with a newly merged agency or company.
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McCormack, CPCU, CIC, AAI, CPIW Vice President ext. 14, firstname.lastname@example.org Anita J. Trevino Director of Communications ext. 29, email@example.com Beth Chastie Director of Administration & Finance ext. 17, firstname.lastname@example.org Laura Cornell Director of Insurance Programs ext. 22, email@example.com Megan Huebner Meetings & Membership Coordinator ext. 16, firstname.lastname@example.org Mary A. Ellis Professional Development Administrator ext. 12, email@example.com Jeanette Bloss Education Coordinator ext. 11, firstname.lastname@example.org Pat Fetner Receptionist ext. 10, email@example.com Lee Ruef Director of State Government Relations firstname.lastname@example.org South Carolina Agent & Broker is the official magazine of the Independent Insurance Agents and Brokers of South Carolina and is published four times annually. IIABSC does not necessarily endorse any of the companies advertising in this publication or the views of its writers. Articles and information published in this magazine may not be reproduced without written consent of the IIABSC. South Carolina Agent & Broker is not responsible for unsolicited manuscripts, art or photography. The publisher cannot assume responsibility for claims made by advertisers and is not responsible for the opinions expressed by contributing authors. For more information on advertising, Contact Jim Aitkins Blue Water Publishers 22727 - 161st Avenue SE Monroe, WA 98272 360-805-6474 fax: 360-805-6475 email@example.com Contents Meet Your Next IIABSC Chairman of the Board - Ashley Brady, CIC Message from the National Director 6 8 113th Annual Convention Report 12 South Carolina Toughens State Immigration Law 16 InsurBanc Case Study: Making the Move from Producer to Owner 18 Apples to Apples: Common Errors in Remarketing Acounts 22 AIAM 2012 Course Calendar 24 ACT: Cultivating Your Digital Brand 26 Palmetto Partners Program Lessons From Mergers and Acquisitions Young Agents "Savc the Dates" Big "I" South Carolina Spring Conference - March 14-15 30 32 33 34 IIABSC Education & Events Calendar 36 2012 Board of Directors and Executive Committee 38 Advertiser Index Assure Alliance Astonish Results Bankers Insurance Group Builders Mutual Insurance Burns & Wilcox FCCI Insurance Group Genesee General GUARD Insurance Group JM Wilson Jackson Sumner & Associates Johnson & Johnson M. J. Kelly of South Carolina 19 5 25 31 17 38 25 31 27 2 20, 21 19 Montgomery Insurance NetComp Preferred Specialty Prime Rate Premium Finance RPS Rollins Summit Marketing Services TAPCO Underwriters The Iroquois Group The National Security Group UPC Insurance Universal North America Utica National Insurance Group 28 11 39 11 3 23 37 27 23 40 13 9 4 South Carolina Agent & Broker � Winter 2012 5 IIABSC Chairman of the Board Ashley Brady, CIC L Meet your next IIABSC Chairman of the Board � � � � � CertifiedInsuranceCounselorDesignation(2003) IIABSCBoardofDirectors(2termsstartingin2002) IIABSCSecretary IIABSCChairman-elect/Treasurer AAMGAAchievementAwardforChairmanofIIABSCYoung AgentsCommittee(2002/2004) IIABSCYoungAgentoftheYear(2003) IIABA(national)YoungAgentCommittee(2005-08) EagleScout(1982) CityofMarionSmallBusinessPersonoftheYearAward(2001) UnitedWayBoardofDirectors MarionRotaryClubPresident MarionChamberofCommerce-President2005&2011 MarionCountyEconomicDevelopmentBoard PeeDeeAcademyBoardofDirectors ike many independent insurance agents and Big "I" members, Ashley Brady, CIC, was born to be an insurance agent. Growing up in Marion, SC, he quickly learned firsthand the value and importance of the family business � First Charter Company � a small� town insurance and real estate agency owned by his � mother Ruth. Ruth had started working in the agency � in 1954, and eventually bought it in 1982. � After finishing Francis Marion College in 1989, � Ashley started working in the agency in September � 1989, just days before Hurricane Hugo would � devastate South Carolina. Ashley was quickly exposed � to customer service and frustration, and spent the next � few weeks with a chain saw helping neighbors recover from the hurricane damage. Ashley first became involved with IIABSC through participation on the Young Agents Committee. That quickly led to a nomination to the Board of Directors, where he served two separate terms, starting in 2002. During that time, Brady served as Young Agent Committee chairman and was recognized in 2002 and 2004 with the AAMGA Achievement Award for committee leadership. In 2003, Brady was named the SC Young Agent of the Year. Like many of his association colleagues, Ashley recognizes and appreciates the importance of InsurPac to our national government affairs efforts. But he also had the difficult and unique distinction of chairing the SC InsurPac committee just AFTER Jon Jensen, who had helped South Carolina set records for participation and donations. It was a formidable challenge to follow Jensen, who just finished serving as the national chairman of InsurPac. Another association highlight for Brady was serving from 2005�08 as a member of the national Young Agents Committee for our national association, the first South Carolinian to serve on the national young agent group. 6 South Carolina Agent & Broker � Winter 2012 Brady was elected Secretary of the state association in 2008 and joined the IIABSC Executive Committee. He was elected Chair-elect/Treasurer in 2010 in preparation for his current position that started January 1. True to form, Ashley is not only a leader within the Big "I", but also in his community and church. His family are all active members of Marion Baptist Church. Ashley also serves the community with leadership positions in several business and civic groups in Marion. Ashley's strong commitment to service is never more evident than through his work with Boy Scouts. An Eagle Scout himself, he works as a Scoutmaster and has taken multiple trips to Philmont. These days, Ashley spends time "chasing girls" � his three daughters, that is! Ashley and wife Becky are the proud parents of Haley Katherine, 6, Lexie Anne, 4 and the newest family member, Laura Ashley, 9 months old. With a house full of young girls, Ashley is glad he had the early training from cleaning up after Hurricane Hugo! Winter 2012 � South Carolina Agent & Broker 7 National Director Jon A. Jensen, AAI, AIP Consumer/ Agent Portal: What's in it for you? Q&A with Big "I" Leadership 34.3% and falling. That's the share of the personal lines market independent agents currently claim. And with 75 percent of consumers starting their search for insurance online, how do independent agents fit in to the new buying dynamic? Below are key perspectives on Project CAP (www .ProjectCAP.info) the working name for the Consumer Agent Portal, LLC (CAP) by two Big "I" leaders. Project CAP is an initiative led by the Big "I" and six independent agency carriers (Central Insurance, Main Street America, Safeco, Selective, State Auto and Westfield) to help member agents regain personal lines market share online. Stay tuned for more information as the program gears up. I hope you will consider coming to our Spring Conference in Columbia on March 14, where will have the staff CAP State Association Liaison Paul Martin onsite to tell you more and answer all your questions. think more digitally. I knew if it was happening to me, it was happening to other agents. I thought [IIABA] was the best entity to help resolve it--I couldn't imagine any way to resolve it on my own. How will Project CAP help? I describe Project CAP not as a technology solution but more of a marketing initiative to let us have the conversations we've been missing out on with consumers. How do we take what we already do well and get the message out it in a different forum? Project CAP will give agents new opportunities to talk with the 70 percent of the market that doesn't do business with us today in personal lines. How will Project CAP fold into an agency's existing marketing strategy? There are two equal halves. One is the Consumer Portal--a physical website for consumers [to find independent agents and get quotes]. The other half gives agents digital marketing tools, education and support so that they can play and win in the digital space. If your agency is already marketing in the digital space, Project CAP can help take you to the next level. If you're not in the digital world, CAP will be able to help agents get started. Why is the Project CAP initiative important right now? What could it potentially mean to the market? This is our market. This is our time. The independent agency channel's market share is down to 30 percent in personal lines. As recently as three years ago, most agents weren't interested in online business--they thought those consumers were tire kickers. Now, 75 percent of the market is doing research online. While maybe we should have started earlier, there was not the groundswell of agents saying we needed to do something. Continuedonpage10 When did you notice that traditional marketing methods weren't working in your agency? Why? We have always measured where business is coming from; historically, we would lose 10 percent of the [personal lines] business Tom Minkler, CIC each year and backfill it with 10 percent IIABA Chairman of new business [like referrals]. We didn't the Board really work at it very hard. Around four years ago, that started to change--and it was around the same time as the national direct writers started spending millions of dollars a year in advertising. We just weren't getting the opportunities anymore. That 10 percent in new business went to eight percent, then six percent...the downward progression was steady. We still had 10 percent attrition but we weren't getting 10 percent average replacement. We knew we had to 8 South Carolina Agent & Broker � Winter 2012 Get to Know Utica! We're not a household name. We don't have a 40-story home office in a big city. But we're a household name to the agents who sell our products and their clients who buy our insurance. We are a multi-regional carrier with great products. We stay close to our agents. And we're consistently noted for the high quality of our service, whether it's our specialized loss control work or the fast, fair work of the Utica Claims staff. Open the door to more sales and revenue for your agency. Call me today to find out what Utica can add to your agency! Matt Lupino -- Resident Senior Vice President Utica National Insurance Group 1100 Boulders Parkway, Suite 300, Richmond, VA 23225 Phone: 804-560-6620 � Matt.Lupino@uticanational.com Winter 2012 � South Carolina Agent & Broker 9 Continuedfrompage8 What's your answer when agents ask you, "What's in it for me?" I let agents know that Project CAP offers many choices, ranging from a basic package that is free to Trusted Choice� agencies, to self-directed packages, to "done for you" professional services. By virtue of being an independent agent and in Trusted Choice�, agents will have new, exclusive, qualified prospects sent to them at a nominal cost. Beyond that, when 70 percent of the market doesn't know how to find you, Project CAP can help position you immediately to get many more opportunities for consumers to talk to you--from filling blog content, to what do you do with your Facebook page, and much more. This is a way for agents to win locally by competing nationally. It's a way to gain business for their own agency while joining with other agents in a cause to recapture personal lines market share. The ability to gain back market share is unlimited; right now 70 percent of business isn't with us. Why is the Big "I" behind Project CAP? The Big "I" is well known for our legislative, regulatory and legal advocacy and our E&O program, but what many agents do not realize is the important work we do to position independent agencies for the future. We study consumer behavior, Bob Rusbult IIABA President company actions, technology trends and more in order to fulfill the mission & CEO statement of IIABA: to "provide members with a sustainable competitive advantage." The Big "I" understands that the status quo in personal lines is not acceptable for independent agencies. We must do business the way consumers want to do business, not the way we want to do business or the way our company partners want to do business. We are leaving a lot of good business on the table because consumers cannot find independent agencies online. We must compete on the electronic highway as well as on main street America. We have a big advantage over the direct writers--we have bricks and we can have clicks--and we offer choice, customization and advocacy. But consumers need to understand we are better than the competition, and they need to be able to find us in the midst of endless and mind-boggling Internet mishmash. Just having a website is not good enough anymore. Agencies need to participate in digital marketing and understand current and emerging consumer behavior if we want to truly compete in personal lines with the direct writers. Why the sense of urgency? We have seen the trends in personal lines, and we know consumer behavior has changed and will continue to change rapidly. Independent agents and IA companies need to operate in "internet time" in order to effectively compete in the personal lines marketplace of today and tomorrow. What is the carrier perspective? What is the role for independent agency carriers that are not investors? The six investor carriers--The Central Companies, Safeco Insurance, Selective Insurance Company of America, Westfield Insurance, The Main Street America Group, State Auto Insurance Companies--and of course the Big "I" are the visionaries that understand that we must compete the way consumers want to do business. Consumer Agent Portal, LLC is a separate corporation that exists for one primary purpose: to push business to independent insurance agencies and independent agency companies. While the investor companies are helping to shape Project CAP and will have some financial benefits other companies do not have, Project CAP will serve all independent agency companies. Many companies have already informed us that they plan to participate on the Consumer Portal and will purchase digital marketing packages from Project CAP for their VIP agencies. Does this effort "commoditize" agencies? Some claim personal lines, particularly auto insurance, has already been commoditized. Research shows that consumers want a "trusted advisor" to help them through the decisionmaking process and to give them the advice and counsel they need for their insurance purchase, which consumers view as complex. Trusted Choice� and Project CAP will enhance the value proposition of independent agents as the trusted advisors for consumers. The Trusted Choice� Pledge of Performance-- the fact that the independent agency system is the only distribution channel that provides choice, customization and advocacy--will be trumpeted by Project CAP at every opportunity. Consumers doing research online will understand there is a difference between Trusted Choice� independent agents and direct writers, and that they can do business with independent agents just as easily as they can with direct writers, but with more advantages! 10 South Carolina Agent & Broker � Winter 2012 Winter 2012 � South Carolina Agent & Broker 11 Spooky It's a 113th Annual Convention Report Market out there! t there! ! of Directors from 1997-99 and on the Agents committees. He is the current chairman of the Trusted Choice� Big "I" Junior Golf committee, a position he has held for more than 10 years. All that, plus his numerous community involvements, which include Boy Scouts, planning commissions, festival planning and church nance, and yet he still nds time to teach numerous CE courses for the Big "I." The Agent of the Year is named for Hayne P. Glover, Jr., the only South Carolinian to serve as the national association president. He was an outstanding example of service to his community as well as the industry, which are the criteria used to evaluate nominees for the award. The award is sponsored by AFCO/ Prime Rate Premium Finance in Florence. award is given to an independent contributing to the betterment of the insurance industry and outstanding service to his or her community outside the eld of insurance. It is sponsored by AFCO/ Prime Rate Premium Finance in Florence. IIABSC leader John Braddy, CIC, AAI, delivered the oath of ofce to the incoming Board of Directors during their installation Monday night of the 113th Annual Convention held Oct. 30 - Nov. 1 in Charleston, SC. Ashley Brady, CIC, of First Charter Insurance in Marion was elected Chairman of the Board by the general membership during the annual meeting. Ken A. Finch, CPCU, CIC, CRM, AAI of Countybanc Insurance in Greenwood was elected Chairman-Elect and Treasurer of the Board of Directors. R. Scott Moseley of the Irmo Insurance Agency in Irmo was elected as the Board's Secretary. All three are two-year terms. Kathy D. McKay, CIC, CPIW, of McKay Insurance in Mt. Pleasant, moved to the position of Immediate Past Chairman. Three new directors were also elected to three-year terms on the Board of Directors beginning Jan. 1. 2012: William J. Bowers, AIP of Russell Massey & Co. in Columbia; J. Robert Bryant, Jr., of Robert Bryant & Son in Orangeburg; and Willard A. Silcox, III, ACSR, of C.T. Lowndes & Company in Mt. Pleasant. Retiring directors Larry G. Joyner, CIC, AAI of CWS Insurance Agency in Spartanburg and James G. Taylor Jr., CIC of the Kinghorn Insurance Agency of Beaufort were recognized for their service and dedication to the association in the past three years. Young Agent of the Year Agent of the Year Lee P. Ellis, CPCU, CIC, AAI, of Ellis Realty & Insurance Agency in Hampton has been named the 2011 Hayne P. Glover, Jr. Agent of the Year in recognition for outstanding community service and contributing to the betterment of the insurance industry. Lee is the President of Ellis Realty and Insurance Agency, a family agency founded in 1948 by his father, E.P. Ellis, Jr. Lee has been an active member of IIABSC having served on the Board 12 South Carolina Agent & Broker � Winter 2012 Lowcountry insurance executive James G. Taylor, Jr., CIC of Kinghorn Insurance Agency of Beaufort has been named the 2011 Young Agent of the Year. Jay is completing a three-year term on the Board of Directors, where he has been an active leader for the Young Agent and Trusted Choice� committees. Jay led the Trusted Choice� Committee when the association rst decided to support the American Cancer Society's Relay for Life� events statewide, and the was recognized then with an outstanding achievement award. Jay is a grassroots contact for local legislators in Beaufort County and has participated with the SC delegation at the national Big "I" legislative conference in Washington, D.C. Like past young agent leaders, he is just as active back home with community service. The Young Agent of the Year TOP: Lee Ellis, CPCU, CIC, AAI (left) is the 2011 Agent of the Year, awarded by Chairman Kathy McKay and sponsor Gary Cornell. BOTTOM: Jay Taylor, CIC (left) is 2011 Young Agent of the Year, also awarded by Chairman Kathy McKay and sponsor Gary Cornell. U N I v E R S A l vA l U E # 3 Be prepared. Prepare now or later. It's an eternal dilemma for some. But not at Universal North America�. It's a basic principle we follow every day. So, we're ready with the financial resources to pay claims. Ready with a Mobile Catastrophe Unit when a storm hits. Ready so we can be there for you and your clients. Like you, we do our homework. It's one of those Universal values we do business by. (866) 338-4262 UniversalNorthAmerica.com Universal North America Insurance Company's Financial Strength Rating of A- (Excellent) has been reaffirmed by A.M. Best. The company's Outlook was revised to Stable. Insurance products are issued and underwritten by one of Universal North America's insurance companies: Universal North America Insurance Company or Universal Insurance Company of North America. Issuance of coverage is subject to underwriting review and approval. Products may not be available in all states. � 2011 Universal North America. HOME FLOOD AUTO Industry Person of the Year David McLellan of Safeco Insurance in Lexington has been named the 2011 Industry Person of the Year for making independent insurance agents and strong company partnerships a priority his entire career. The award recognizes industry representatives other than independent agents who have contributed greatly to the insurance industry in South Carolina. David is a rare breed, he is a company representative that has stayed more than 30 years with the same organization. Insurance is in his DNA, he was born into a family of insurance agents. His father and his uncle were both Big "I" past presidents, and he grew up in Columbia before moving to Dillon where his father bought the agency that his brother Felix owns and operates today. After graduating from Clemson, David started his career with Aetna. He later moved to American States Insurace, which was purchased by Safeco, which was absorbed into Liberty Mutual Group, and he continues a career track that has been dedicated to serving independent insurance agents in South Carolina. There is no more loyal, dedicated and persistent supporter of the independent insurance agency system and South Carolina insurance agents than David McLellan. Through his leadership, the committee built the agent participation in the Relay for Life� events signicantly, and the American Cancer Society� reported back that between the association and agent/company partner participation more than $200,000 was contributed. Additional recognition Sandra K. Braddy, AAI, CPIW, of AFCO/Prime Rate Premium Finance in Florence, John R. Braddy, CIC, AAI, of Braddy Insurance in Dillon and Julius J. Anderson, Jr., AAI of Anderson Insurance Associates in Charleston were recognized for their service to IIABSC with Chairman's Citations from Kathy D. McKay, CIC, CPIW. Grange Insurance won "Elly Pachy Derm" the Golden Elephant awarded to our exhibitor named "Best Booth" overall by a panel of judges during our trade show. It was a tight race, but Mark Brandt of Grange was also awarded "Best Exhibitor Costume." Henry G. Turner Golf Tournament The Henry G. Turner Golf tournament was held at Patriot's Point Links. Cash prizes and golf clubs were awarded to the winners, which are as follows: 1st Place Team: Ken Dunnett, John Miletti, John Mulvey and Todd Hiott 2nd Place Team: William Boswell, Ken Fort, Jack Puckett and Tracy Puckett 3rd Place Team: James Berry, William Bowers, Ben Myers and Lee Ruef Long Drive Winner: Eddie Young Closest to the Pin: Rick Amick and Lee Ellis Outstanding Committee Chair Greenville insurance executive Thomas M. Bates, Jr. has been recognized for his outstanding service to IIABSC by being named the Committee Chairperson of the Year. Bates, Vice President and COO of Herlong Bates Burnett Insurance, is an IIABSC Board Director and chairman of the Trusted Choice� state branding committee. He has embraced his duties as chairman fully, taking every opportunity available to learn more about Trusted Choice� and to share that knowledge with the membership. 14 South Carolina Agent & Broker � Winter 2012 15 O South Carolina Toughens State Immigration Law E-Verify Required for Most Employers By J. Hagood Tighe n June 27, 2011, Gov. Nikki Haley signed into law amendments to South Carolina's immigration laws, including the South Carolina Illegal Immigration Reform Act. The legislation strengthens what was already considered to be one of the toughest immigration reform acts in the country. The new law, which takes effect on January 1, 2012, brings with it new requirements for employers in South Carolina. New Employment Verification Requirements For employers, the most significant change contained in the amendments pertains to employment verification procedures. Under the new law, all employers who are required to complete and maintain employment verification forms under federal law must enroll in the E-Verify federal work authorization program to verify the work authorization of every new employee within three days of hiring the employee. Employers are no longer permitted to verify employment eligibility based only on the employee possessing a driver's license or identification card issued by South Carolina or another state as allowed under the previous Act. The new law requires the South Carolina Department of Employment and Workforce to provide private employers with technical assistance and electronic access to the E-Verify website. Penalties For Violation Of The Act The Act states that "a private employer who knowingly or intentionally employs an unauthorized alien violates the private employer's license" and amends the previous penalty structure by eliminating the civil penalties imposed under the former Act. Instead, for a first violation occurring before July 1, 2012, a private employer shall swear or affirm in writing to the Director of the Department of Labor, Licensing and Regulation that the employer has complied with the provisions of the federal Immigration Reform and Control Act of 1986 from the effective date of the Act, and that it will comply with the Act's employment verification procedures within three business days. An employer who fails to swear or confirm compliance in 16 South Carolina Agent & Broker � Winter 2012 writing, or fails to comply with the Act within three business days, will be placed on probation for a period of one year during which time the employer must provide the Director of Labor, Licensing and Regulation with quarterly compliance reports. Any subsequent violation will result in suspension of the employer's license for a period of 10 to 30 days. For first violations that occur on or after July 1, 2012, a private employer must immediately comply with employment verification provisions of the Act and will be placed on a oneyear probationary period during which time the employer must provide the Director of Labor, Licensing and Regulation with quarterly compliance reports. Subsequent violations will range from suspension of the employer's license for a period of 10 to 30 days, up to revocation of the employer's license for a period of five years. Under the previous Act, employers whose licenses were suspended could not "employ an employee" during the suspension period. The new law expands the prohibition and now provides that employers whose licenses are suspended for failing to comply with the new law "may not engage in business, open to the public, employ an employee, and otherwise operate" during the suspension period. For more information on the requirements for SC employers and to register for the free E-Verify service, visit the SCLLR webpage, www.llr.state.sc.us/immigration . HagoodTighe,apartnerintheColumbia,SCofficeofFisher& Phillips,concentrateshislawpracticeexclusivelyinthelaborand employmentarea.HeiscertifiedasaSpecialistinEmployment and Labor Law by the South Carolina Supreme Court, and is licensedinbothSouthCarolinaandNorthCarolina.Hecanbe firstname.lastname@example.org(803)255-0000. Fisher & Phillips, founded in 1943, is one of the oldest and largest labor and employment law firms concentrating its practice exclusively upon representation of employers. For moreinformationontheweb,www.laborlawyers.com. The Lessor's Risk insurance your clients need to cover any slip up. When it comes to Lessor's Risk coverage, Burns & Wilcox is the top banana. We offer coverage for virtually any tenant occupied building. Plus, our unlimited access to admitted and non-admitted markets means we offer the broadest protection possible. So remember, when it comes to Lessor's Risk, there's one company who never slips up � Burns & Wilcox, the largest independent wholesale broker and underwriting manager. Charlotte, North Carolina | 704.525.1152 toll free 800.999.3434 | fax 704.525.7399 charlotte.burnsandwilcox.com Greensboro, North Carolina | 336.834.8778 toll free 866.832.4979 | fax 336.834.9066 greensboro.burnsandwilcox.com Morehead City, North Carolina | 252.726.8992 toll free 800.498.1600 | fax 252.726.9484 moreheadcity.burnsandwilcox.com Murrells Inlet, South Carolina toll free 800.849.3271 fax 800.354.3573 � Commercial � Personal � Professional � Brokerage � Binding � Risk Management Services Winter 2012 � South Carolina Agent & Broker 17 Lessor's Risk Insurbanc Case Study: making the move from Producer to owner J But even with a willing, retiring agency owner there was a lot to do before Grace could call himself an agency principal. Grace learned that buying an independent insurance agency required a solid perpetuation plan, a properly structured financial deal and an ability to adapt to his new role at the agency. The first step in creating a workable deal was to get a OWNER'S PROFILE: professional firm to price the agency's commercial and personal Who: Jim Grace, President, Underwood Anderson lines books of business. After that, the financing came into play. & Associates Inc. Due to his prior career as a banker, Grace already knew What: Buying the independent insurance agency "local banks were not a real avenue for financing" because from its retiring owner and taking over his they typically practice "tangible-collateral based lending." He book of business realized he would not be able to get a loan from a typical bank, How: Grace went from producer/manager to because an insurance agency's value is intangible. producer/owner after solving financing So Grace and Hood turned to specialists--it was between and business perpetuation issues. After working with InsurBanc and another financial institution. After a referral from a firm that specializes in presenting the deal to the banks, Grace quickly learned it would agency valuations, he turned to InsurBanc need refinements to make it work for all parties involved. for financing. Because of their expertise in agency financing, InsurBanc recognized the viable opportunity in the transaction. "Their When Jim Grace joined Underwood Anderson & Associates, experienced, consultative approach helped me draft an optimal Inc. in 1992, he wasn't thinking about the possibility of one day deal," said Grace. owning the agency. He started as a producer, quickly built up According to Robert Pettinicchi, Executive Vice President a book of business and started managing the commercial lines of InsurBanc, "Our core competency is agency lending. Period. business for the firm. When we looked at the proposal we recognized two important In 2000, after agency founder Wayne Underwood retired, issues: first, the financial capability of the agency and of the the agency's new owner, Ron Anderson, began to discuss his potential owners; and second, the commitment from both parties own retirement plans with Grace. Anderson wanted to perpetuate to carefully structuring a sustainable transaction for all of the the agency to someone who worked at the company and was parties involved." familiar with their operations and staff. "In about 2004 or 2005, Noted Grace: "InsurBanc was able to provide a we started talking about things to come," Grace recalled. comprehensive financing package. In 2009, as Anderson's retirement InsurBanc's Ted Clark was a approached, Grace (along with Wayne "Our core competency is agency professional banker very focused on Hood, a producer and now minority lending. Period." helping Wayne and I reach our goal. owner) reached a gentlemen's agreement -Robert Pettinicchi He continued to work with us until for the two producers to acquire the Executive Vice President of InsurBanc the deal was done." agency in a perpetuation transaction. im Grace long had a dream to own the independent agency in which he produced and managed. But while the owner agreed to perpetuate the agency, Grace could only buy if he could structure a deal that worked for everybody. South Carolina Agent & Broker � Winter 2012 18 He added: "You've got to have an agency principal who is going to have the ability to be flexible as well as a financial institution that will work continuously through the deal." Other priorities: Getting qualified legal counsel who is familiar with insurance agency transactions; and working with a knowledgeable CPA (certified public accountant) experienced in agency perpetuations. Grace, the principal owner since the beginning of 2010, looked back at the lessons learned and the tremendous amount of work required after he became owner. "The combination of proper planning, absorbing the retiring principal's book of business, and adding the administrative side of supervising 23 people has been quite monumental and still is," he pointed out. It's working, though: "The transition has been very smooth due to the quality of staff and the tenured employees" at Underwood Anderson & Associates. Grace has seen his ownership dream come true, but is already looking to the next generation of ownership. "Everyone here [in the agency] is very tenured," and the new principal wants to see the next owners come from within the agency. "We hope to see a smooth transition and provide a level of opportunity by continuing to build value for even the young producers that are coming up in a few years." Optimize Your Agency's Cash Management With A Bank That Works Like You InsurBanc was founded by insurance industry leaders, giving us the expertise to assess your independent agency's financial position and, like you, provide professional advice and recommendations. We combine the flexibility and convenience of technology with the personal touch of our dedicated staff. InsurBanc recognizes the uniqueness of your agency business and offers a range of specialized deposit products to help facilitate cash management and maximize value. We look at your agency's individual cash flow situation, then design a cash management program to meet your needs. � Depository Accounts � Online Banking/Bill Pay � Remote Deposit � Remote Lockbox � Positive Pay � Token Layer Authentication Call (866) 467-2262 or visit InsurBanc.com To partner with an advisor that knows the agency business turn to InsurBanc. www.assurealliance.com 1-864-541-0168 *Insurance Journal's "Top 100 of 2011" Winter 2012 � South Carolina Agent & Broker 19 tA den gents nd ep en tA den gents J Siin 0 S nce 1930 ce 193 J Select n ie s mpapanies Co Com & & Serving I Serving I nd ep e nd ep en tA den gents & J Sin ie s mpan Co Serving I ce 1930 J T Apples to Apples: By Charles Phillips VP Claims & Liabilities Westport Insurance Corporation Common Errors in Remarketing Accounts he phrase "apples to apples" often comes up when comparing coverage. And it is guaranteed you will hear it again if you remarket an account and your customer ends up with an uncovered loss. Whether you remarket an account at the request of your customer (shopping for price), due to the carrier (non-renewing policyholder or exiting a business) or out of the agency's necessity (i.e. have agency contracts with different carriers), the first thing that will happen if a loss is not covered by the new policy will be determining whether it was covered by the prior policy. If it was, you can bet that your customer will contend that he wanted "apples to apples" coverage. As we know, no two policies are exactly the same and so a true "apples to apples" change is rare. Agents can, however, avoid some common errors and take measures to help eliminate errors and omissions (E&O) claims. Any time you remarket the account, there should be some benefit for your insured. Be familiar with all the differences in the new policy and advise your customer. Don't assume that a difference, especially anything that means a reduction in coverage, is not important to your customer. Notify customers of all changes and let them make the decision. Finally, document your file--preferably with a signed declination from your customer or a letter confirming a conversation in which all changes were discussed and agreed on. Here are some common problem areas in remarketing an account: � Apply for the correct coverage. While this might seem obvious, you might be surprised at how many times agents just sent in an old application (with potentially incorrect information on it). If there are specific coverages that you know will be necessary, make sure you bind or request those (i.e. liquor liability or assault and battery coverage for a bar). � Make sure limits are the same or greater. When remarketing an account, make sure that you offer the same or greater limits (including any sub-limits). Make sure deductibles are the same or less. Check the exclusions. This is an area fraught with perils. Every carrier has different exclusions. If the new policies exclude something that was not excluded previously, highlight it for your customer and let it be part of their decision. This is definitely an area that you should document. Your recollection of a discussion about what might appear to be an innocuous exclusion at the time will certainly be different from a customer's recollection when the exclusion keeps a claim from being covered. Know the financial stability of any new carrier. Make sure the new carrier is financially stable. This is especially true if you are forced to take a customer from the admitted market to the nonadmitted market or to a carrier that is not covered by a guaranty fund. You can bet that if the new carrier has insolvency problems (and the old one is still stable) there will be a resulting claim. Look for other issues that may affect coverage. The new carrier may have insured to value requirements Continuedonpage25 � � � 22 South Carolina Agent & Broker � Winter 2012 Our cOmprehensive mOBiLe hOmeOWners insurance �15%NewBusinessCommission �PartnershipProfitSharing �100,000MaximumPolicyLimits �50+AgeOfInsuredDiscounts �NewerHomeDiscounts �FastOnlineQuotes,Policies AndEndorsements reWarDs Our agents. National Security strives to provide competitive, affordable insurance for policyholders, but we also reward our agents with some of the highest commissions in the industry, a partnership profit sharing program and an award-winning web site that provides fast online quotes, policies, and endorsements. Find out more by calling 1-800-239-2358 x213 or visit us on the web at www.nationalsecuritygroup.com. Elba, Alabama � 800-239-2358 11-187 IIA SC Agent & Broker Ad text outl.indd 1 11/7/2011 12:00:18 Winter 2012 � South Carolina Agent & Broker PM23 "Excellence through Education" 2012 Course Calendar Our newest designation program focuses on nontechnical skills important in providing excellent customer service to clients. DAY 1 Jan. 17, Columbia; Feb. 7, Greenville; Oct. 10, Charleston AIAM 110, Understanding Insurance Consumer Needs: Examine how personalities affect the office, how to recognize your co-workers' and customers' personality and communications styles so that you can increase effectiveness in service provided. 3 hours P&C Why service matters, and why it is never enough. Participants will learn how to build and maintain efficient and effective levels of service. 4 hrs. P&C DAY 4 April 10, Charleston; July 18, Columbia; Sept. 11, Greenville AIAM 410, How Not to Get In Trouble With Your Mouth: Learn how to reduce the chance of an E&O claim by analyzing the causes of loss and implementing changes to prevent loss. 4 hrs. P&C AIAM 420, The Write Stuff: AIAM 120: Best Practices in Customer Service: Proper grammar and style in all written forms reflects the overall professionalism of the agency, and one wrong or misplaced comma may give an entirely different meaning than the author intended. 2 hrs. P&C DAY 2 DAY 5 Feb. 15, Charleston; Sept. 20, Columbia March 22, Columbia; March 29, Greenville; May 3, Bluffton AIAM 210, Mastering Time: AIAM 510, Regulation, Politics and Polish: Most of us need better control of our time. It is our most precious resource, but one that is often wasted. Participants will complete an in-depth time management profile and learn how to take better control of their time in order to be more productive both professionally and personally. 4 hrs. P&C Our industry is one of the most regulated around, and many agents are not familiar with the laws that affect their very livelihood. Learn why involvement in political action is important and some of the important business etiquette skills that are crucial for today's professionals. 4 hrs. P&C AIAM 220, Organizational Workflow: AIAM 520, Leadership is Everyone's Job Organized and efficient workflow is essential to an agency's survival. Good workflows will protect against E&O claims, provide better customer service to insureds, and streamline processes. 2 hrs. P&C Everyone needs to have basic leadership skills. Learn how the Best Practices materials go beyond supervision to show you how leadership can make a difference every day. 2 hrs. P&C DAY 3 DAY 6 May 22, Charleston; Nov. 7, Columbia May 10, Columbia; May 22, Greenville; Sept. 18, Bluffton AIAM 610, Ethics, Yesterday, Today and Tomorrow: AIAM 310, Negotiating Conflict: Learn how to negotiate well with clients and co-workers. Determine how to prevent conflict before it starts, work well with others, and understand both sides of the story. 3 hrs. P&C This course will discuss where the study of ethics originated along with ethical situations that affect us today as insurance professionals. Also looks at state and federal laws affecting our industry's ethical behavior, the costs of unethical behavior and various approaches to ethical behavior. 3 hrs. Ethics AIAM 320, Professional Relationships in the Agency: 24 As an insurance professional, you make a difference to your clients, underwriters and co-workers. Learn how to develop relationships and how they improve the effectiveness and success of the agency. 3 hrs. P&C AIAM 620, Changing Attitudes/Creating Opportunities: This course will examine the various approaches to stress and how to determine which approach to use in each situation to reduce overall conflict. 2 hrs. P&C Continuedfrompage22 or different ways it handles coinsurance. For certain types of policies, be aware if you are switching between claims made and occurrence policies. Remember that when remarketing an account, you will never find the exact "apples to apples" coverage. Be aware and move with caution. Always maintain good communication with your customer and document your file. Charles Phillips (charles_phillips@ swissre.com) is vice president, claims & liabilities at Westport Insurance Corporation. Keep an Eye on the Details Want to avoid E&O problems caused by remarketing an account? Don't overlook the details. Are all of the application specifics up to date? Make sure that all the same buildings, locations, vehicles, personal property, etc. are covered. This is especially important if the previous policy had mid-term changes. Don't just rely on a list that was given to you at the last renewal. Match the coverage that was in the prior policy and all endorsements. And while it is always good to check on values at each renewal, it is especially important to check values at remarketing time. With auto-renewals and direct bill policies, you might have a pretty good defense if your customer did not request to increase a limit. The argument loses some steam if you remarket the account, especially if you take it upon yourself to initiate the remarketing effort. By remarketing, you may have taken on additional duties under the law. You're invited to MEET and Tweet e Risk Monsters We're giving away Risk Monster plush toys! Follow @BankersInsGroup on Twitter and tweet the giveaway to enter Homeowners | Flood | Excess Flood | Dwelling Fire | Artisan Contractors (Vector) Business Owners (BOP)| Contractors General Liability | Builders Risk | Workers' Compensation 800.627.0000 x4900 � bankersinsurance.com Winter 2012 � South Carolina Agent & Broker 25 Your Digital Br Cutivating nd S 1. Cutthroughthehypeaboutsocialmediatogetsomeeasytofollow, practicaltipsonbuildinganeffectivedigitalbrandthatisintegrated intoyouragency'soverallmarketingplan.Relationshipsincreasingly haveadigitalcomponentandlearningtoeffectivelyusethesetools canenhanceyourofflinerelationshipsandbuildyouragencybrand. ByMaureenWallBentley ometimes the problem with "the next big thing" is that all the buzz around it can drown out the legitimate value hidden beneath. Take social media. Many independent agents have become so overwhelmed by the constant clucking about this "must-do" marketing tool that they simply have dismissed it as non-essential and faddish--and then promptly gone back to business as usual. And, in a sense, these agents are half-right: Some of the social networking communities will be lost in a blink, overtaken by the next "next big thing." But many will be with us for a long while. And underneath all the tweeting, friending and geolocating is a valid core that independent agents should heed: Relationships increasingly have a digital component and learning to effectively use these tools can enhance your offline relationships and build your agency brand. So, how can you sift through all the noise to leverage the true benefit of social media? In short, think strategically and use some common sense. Herein, a few thoughts to get you started. Have a plan. If you don't have a holistic marketingcommunications plan for your agency, you're almost certainly wasting money and you probably have no idea what's working or why. Draft a plan that outlines the following elements, and include any social media efforts; don't separate social networking from your overall activities. a. Goals. Be as specific as possible. For example, "Increase new middle market accounts by x percent" is better than "Grow commercial lines revenues." b. Budget. The best agencies budget between 3�5 percent of revenues for marketing (1�3 percent for very large firms), with more funds allocated in years with big projects, such as a major rebrand. Keep in mind that web development is far less expensive than it used to be and that social media can be virtually free. c. Audiences. Building a profile of your targeted buyer will enable you to better identify good vehicles (publications, websites, etc.) and develop messaging. d. Messaging. List all the points you want to convey in your plan, realizing that not every message is appropriate for every audience, campaign or outlet. e. Vehicles. Identify the various publications, radio stations, websites, etc. that you want to use for advertising, and which you might target for PR efforts (they may not be the same). Include any direct marketing efforts as well as social media and blogging. f. Responsible parties. It is best to have one person internally supervising all the efforts, but identify all contributors, including those posting to social media, blogging, drafting bylined articles or being interviewed for local press. g. Metrics. Include short-term measurements such as Google analytics, incoming calls and readership numbers, but consider long-term goals, as well, such as new business from current clients, increased commercial revenues and retention. 2. Assign a community monitor. Keeping track of your agency's online posts and followers' responses can take time--but you don't have to do it yourself. Assign the task to someone who enjoys social networking and "gets" the immediacy of it. While this may be a young producer or college intern, don't rule out older employees, as social media use is growing leaps and bounds among Boomers. 26 South Carolina Agent & Broker � Winter 2012 RELATIONSHIPS IT'S WHY WE STAND OUT FROM THE CROWD "I'm a mom, and for me excellent communication is important. The same holds true for my role as a Bond Underwriter. Developing personal relationships with our customers is essential-- it's who we are." Robyn Shepherd Bond Underwriter--professional listener and "customer care" expert Connect with Robyn on LinkedIn! PIA National 2011 MGA of the Year Property/Casualty � Professional Liability � Surety Commercial Transportation � Personal Lines � Premium Finance 800.538.4796 jmwilson.com Winter 2012 � South Carolina Agent & Broker 27 3. Follow offline rules. You wouldn't (or shouldn't) go to a Chamber of Commerce dinner and talk non-stop about yourself or your agency. Rather, you'd engage other people in a more personal way--ask about their business or kids or new car, or commiserate over last week's loss for the home team. And, most important, you'd listen. These same standards of conduct should be followed online as well. If you don't--just like in the offline world--people will avoid you. Be brand consistent. Your social media presence should share the look, feel and messaging of your agency's other touch points. So, if your website promotes your agency as commercial-lines oriented, then your Tweets should be in sync. And if your agency's color palette is typically gray and green, don't dress up your Facebook page in blue and gold. Think both strategically (Are we telling the same story in our online and offline touch points?) and tactically (Does our avatar/online representation reflect our logo?). Conducting an image assessment every few years is a great way to align all the pieces that communicate your brand. Think service--and listen. Some of the most successful social media adopters use their online presence more for service and customer communications than for marketing. One agent, for example, posts weather warnings and other local news on his Facebook and Twitter accounts. Because he's not spamming with promotional material, he has developed a healthy following--and the appreciation of those who avoided the downed tree or the flooded byway because of his Tweet. Such low-key posts reinforce his position as a good guy in the community, which helps his agency brand. Esurance, the online auto provider, pays careful attention to any online conversations about its brand so that it can respond in real time to unhappy customers or other malcontents. Think of your social networking sites as a rolling customer survey. (And don't think that these negative comments won't happen if you're not listening online; they will, but you'll be none the wiser.) 4. Editor's note: For more information about strengthening your online presence and using websites and social media effectively, click the "Websites & Social Media" link in the gray shaded portion on the left side of the ACT home page (www.iiaba.net/ act). For more information general branding information, IIABSC members can visit the Trusted Choice� agent's page (www .trustedchoice.com/agents) under the "Branding Basics" menu. You will need your IIABSC username and login. If you have forgotten yours, click the black "Forgot username or password?" link under the login area of our homepage (www.iiabsc.com). Maureen Wall Bentley is executive vice president of brand strategy for Aartrijk, an insurance industry branding firm. Maureen prepared this article forACT and can be reached at email@example.com. FormoreinformationaboutACT,contact Jeff Yates, ACT Executive Director at firstname.lastname@example.org. This article reflects the views of the author and should not be construedasanofficialstatementbyACT. 5. No one keeps independent agents on course to succeed like we do. Montgomery InsuranceTM is committed to the success of its independent agents. We meet the needs of your small to mid-sized commercial lines customers by providing the Montgomery AdvantageTM: stability and consistency, profitable growth, ease of doing business, local decision making, service you need and expect, competitive products and services, and people you know and trust. Doing more to help independent agents conquer the fast turbulent currents of business today. you us 6. Don't expect miracles. Anyone who tells you they are quadrupling sales through social media is likely blowing smoke. That may sound like an excuse to toss aside a social media effort altogether, but it's not. Social media, like many branding vehicles, can be powerful in keeping your agency front of mind, and it is wonderful for humanizing your firm. But you wouldn't (or shouldn't) expect one ad in the local paper to transform your business, and you should be equally realistic about social media. www.montgomery-ins.com � 2010 Montgomery Mutual Insurance Company. All rights reserved. 28 South Carolina Agent & Broker � Winter 2012 MIC_AgentBroker_Kayaker_Ad.indd 1 11/9/10 3:35 PM BIG MARKETS I Market your agency with the new Member Marketing Activity Center www.independentagent.com/MMAC Big "I" Markets (BIM) is the IIABA member's online market access program with no fees, no volume commitments and competitive commissions. Commercial Lines: ACEC Business Insurance Affluent 4:1 Package (Four Carriers) Bonds ACE Bid Contractor Chartis Performance Chubb Surety Fireman's Fund Other Commercial Auto At-Home Business Commercial Builders' Risk Collector Car Policy Commercial Media Umbrella Event Liability Commercial Property Umbrella Commercial Package Policy (150 sub-classes) Fine Art & Valuable Articles (Stand-alone) Community Banks Business Insurance Program Flood Insurance Employers` Practices Liability Excess Environmental Impairment-Pollution Coverage Event Cancellation (EXPO Plus) NPC Event Liability CBRA Executive Liability (Wrap+) Marine Insurance Financial Advisors' E&O Fine Art & Valuable Articles (Stand-alone) Ski-Safe Marine Insurance Flood Insurance (Excess also available) Non-standard Homeowners Hartford Affluent Non-standard Homeowners Alarm Contractors Arborists Insurance Program Coastal Homeowners Orthotics and Prosthetics Corporate/LLC Owned Homeowners Specialty Pool & Spa Non-standard Condos Self-Storage Program Specialized Truck Equipment Non-standard Homeowners Habitational Markets Non-standard Rental Dwellings Apartments Non-standard Renters Condo and Homeowner Associations Vacation Income Property Personal Builders' Risk Hospitality/Restaurant Program Seasonal Homeowners Bar/Tavern Program Unprotected Homeowners Family Style Restaurant Fast Casual Unsupported Secondary Homeowners Fine Dining Restaurant Vacant Dwelling NIghtclub Program Personal Builders' Risk Miscellaneous Professional Liability Non-Profit D&O Liability Personal Excess Policy Outdoor Markets Personal Umbrella Policy Guides & Outfitters Recreational Vehicles Rod & Gun Clubs Fishing and Hunting Lodges & Plantations proliability Program Real Estate E&O Recreational Vehicles Specialty Pool & Spa (Hartford) Specialized Truck (Hartford) Travelers Select Accounts Apartment Pac Building Pac Business Pac Condominium Pac Contractors Pac Online Registration Garage Pac We've made it easier than ever to Plug into the Power of Big "I" Office Pac Markets! Register online today and discover a fresh new way to do Religious Pac business. All products are only accessible online and coverage is subject Restaurant Pac to licensing compliance and underwriting approval. To register online Store Pac Technology Office Pac you will need your login ID and password, your agency tax ID number, Technology Consultants Prof. Liability your agency E&O policy, and your state agency/agent license Workers' Compensation information (where applicable). Log on to www.bigimarkets.com today to begin the registration process and be quoting in minutes! Personal Lines: www.bigimarkets.com South Carolina Product Availability: Palmetto Partners Program IIABSC offers a special thanks to our 2012 Palmetto Partners. The program was created as a simplified way for companies, brokers and vendors to support the association and all our major conferences and events on an ongoing basis. They contribute once annually and are not solicited for additional sponsorships or support for the rest of the year. Independent Insurance Agents & Brokers of SC Diamond Level Johnson & Johnson IIABSC Agency Platinum Level Gold Level Silver Level Bankers Insurance United Property & Casualty Ins. Co. Jackson Sumner & Associates St. Johns Insurance Company American Strategic Insurance Frontline Homeowners Insurance Main Street America Group Montgomery Insurance Bronze Level AFCO/ Prime Rate Premium Finance Corp. Berkley Mid-Atlantic Group, LLC Capitol Preferred Insurance Companion Property & Casualty Ins. Co. Hanover Excess & Surplus Preferred Specialty, LLC Southern Cross Underwriters State Auto Insurance Companies Tapco Underwriters Download forms and program benefits at: www.iiabsc.com 30 South Carolina Agent & Broker � Winter 2012 Comp � Businessowner's � Auto � Umbrella GUARD Plus Your wish is granted! You want/we offer: 1- Ease of doing business ! Fast responses ! Sophisticated technology (including a nationally recognized agency portal) PLUS personalized attention 2- Competitive price 3-Broad underwriting appetite targeting small- to mid-sized risks ! Metropolitan areas don't scare us. ! Coastal exposures are considered! 4- Unique product ! A strong Workers' Comp lead line ! Special BOP Stretch endorsements 5- Superior claims handling that promotes customer retention 6- Favorable compensation A limited number of appointments are available. Contact us to learn more: www.guard.com/apply Your Business Is Our Business! � typical agent workday 1 2 Login to BoB 2.0 Quote and write poLicy working with builders mutual is just that easy. We're always looking for ways to help our agents offer better service and coverage to their customers. By attending our exclusive training, using our online resources and exploring our increased appetite, you'll become--and stay--the "go to" agent for residential, commercial and trade contractors. if you're in construction, the insurance choice is simple. (800) 809.4859 � buildersmutual.com Winter 2012 � South Carolina Agent & Broker 31 A Lessons from mergers and acquisitions GS GS ByHerbGreenberg,Ph.D,CEO,Caliper s we emerge from the toughest years that many of us have experienced in quite some time, many companies are analyzing their true strengths and weaknesses. Many had to restructure, downsize and even merge into new, more diverse organizations. Immediately after a merger, the new organization enters one of the most difficult transition periods imaginable. It is a time of enormous upheaval. At least one corporate culture and many jobs are at stake. The people side of the equation comes into play when the vision and possibilities of the new organization captures the imagination of everyone within the organization-- or it does not. This transition period is when management must quickly determine, foster and cultivate the values, philosophy and style it wishes to see emerge. In a very brief span, management has to establish the operating environment and determine how the new organization will be perceived by its employees, clients and the public. At the same time, employees face the severe stress of an unknown situation. Some may leave either by design or their own decision, and the rest decide whether they want to play by the new rules. Often these decisions are made amid confusion and apprehension. While trying not to set off too many stress signals, management has to determine who has the necessary skills and motivations to help take the new organization forward. It is usually in this frantic, confused environment immediately after the new organization is created that the most important people decisions are made. These often hastily formed decisions irreversibly imprint upon the newly created organization. Not surprisingly, most newly merged organizations are simply not prepared for this transition phase. By the very nature of two companies merging, the process is never as smooth as a dance. But there are some things the new management can do to make sure that the unfolding arrangement does not look like a wrestling match. The key challenge for management is getting the opportunity to see people in their best light, so that the most intelligent judgments can be made without offering any false promises. Quickly identifying the individuals who can help steer the organization onto a new course is a difficult assignment. One study has found that almost 60 percent of the top managers of acquired companies leave within five years. In some cases, the management team of the acquired firm is the single most South Carolina Agent & Broker � Winter 2012 valuable resource to be acquired. Therefore, it is important to take aggressive steps to ensure that key people are not discouraged. And, it is not simply a matter of keeping the best managers, but how you keep them. Conflicts can arise from a number of issues, not the least of which is: What do you do with very talented professionals who are accustomed to holding positions of power and responsibility? Can they work together in a collaborative effort? How can they focus their energies on helping the newly formed company through this difficult transition while staying ahead of the competition? How can they obtain insights, information and objectivity about the new people they are supposed to manage? How can they motivate individuals to collaborate and adapt to the new environment? If you don't know the inherent strengths, limitations and motivations of each of the key managers, the deal will go sideways. So, who should you look for? Ultimately, those who can help a new venture rise to its next level bring technical expertise; a desire to sign onto a new vision and help mold an emerging culture; an ability to learn quickly; and an ability to inspire others while keeping one eye focused on achieving new goals. The process of selecting the final management team is an ongoing one that focuses on assessing each senior manager's strengths and weaknesses; not so much their technical and functional skills as their potential to get along and cooperate productively with their counterparts from the other company, and their ability to provide a strategic viewpoint on managing the merged operations. Still, there is no simple formula. By its nature, it is a time of reassessment. Some people just can't psychologically make the shift, and others do not have the necessary skills. There are bound to be fears and conflicts throughout this volatile period. The best thing you can do is let everyone know you understand it is a trying time and be clear about the goals of the new venture and how you will approach them. You have to get people focused on solving the external problems rather than worrying about their seating arrangements. By setting a tone that is forthright and caring, and making the transition as short as possible, you will be better able to win cooperation and trust so that an accurate assessment can be made of everyone's strengths, potential and abilities to contribute to the emerging organization. Ultimately, leadership must communicate openly and consistently to create a vision of the newly emerging organization that is so appealing everyone will want to sign up. 32 The Big "I" Young Agents Committee provides you with the tools you need to succeed as a leader today and tomorrow Save the date Scholarship Golf Tournament June 1, Columbia Wildewood Golf Club Young Agents Conference Aug. 2-4, Hilton Head Marriott Resort & Spa Member Resources > Young Agents Winter 2012 � South Carolina Agent & Broker 33 www.iiabsc.com 2012 Big "I" SC March 14 � 15 Spring Conference Embassy Suites, Columbia, SC Exhibit Hall open all day Wednesday, with: Legislative and Industry Issues panel Representatives from SC's Department of Insurance and members of the SC State Legislature have been invited to bring attendees up to date on various issues and proposed legislation facing the South Carolina insurance industry today. Wednesday 8:00�11:00 am Trusted Choice� Consumer Agency Portal Promises, Promises New Ethics course 11:00 am�6:30 pm Learn more about the new Consumer Agency Portal and the web-based tools available to help agents meet the needs of the next generation of insurance consumers, those who research and purchase personal insurance products online. Exhibit Hall open 11:30 am�1:00 pm 1:15�3:00 pm 3:30�5:15 pm 5:15�6:30 pm New Ethics course for those on a new CE cycle Topics of discussion for this new Ethics CE course include the obligations of the agent and carrier in providing a liability defense; getting the correct coverage into place and assisting customers in risk identication; the impact of agents using insurers that are not nancially sound; the importance of adjusting claims properly and the obligations to customers after a loss occurs. Check web site for up-to-date agenda information and topics. Lunch with Exhibitors CAP: Get the Point Legislative & Industry Issues Panel Exhibitor Appreciation Reception CE Credits... Thursday 8:00 am Continental Breakfast 9:00 am�11:00 am Legislators... Exhibitors... Closing General Session ... and PRIZES! 34 South Carolina Agent & Broker � Winter 2012 Find up-to-date agenda, forms and online registration at www.iiabsc.com You're an independent agent. Don't forget your helmet. The Big "I" Professional Liability Program Prevent. Our risk management resources keep your agency from making common preventable mistakes. Protect. Our superior coverage and expert claims teams are in your corner in the event of a claim. Prosper. When you know you have the best E&O protection, you can focus on growing your most important asset�your business. The Big "I" and Swiss Re are jointly committed to providing IIABA members with leading edge agency E&O products and services. The IIABA and its federation of 51 state associations endorse Swiss Re's comprehensive professional liability program. www.independentagent.com/EO Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas. Westport is a member of the Swiss Re group of companies and is licensed in all 50 states and the District of Columbia. �2008 Swiss Re Calendar January 17 18 19 25 26 CLASSROOM COURSES For course descriptions and up-to-date calendar, see our Education & Event calendars at www.iiabsc.com AIAM Day One, 110 & 120, Columbia, 7 hrs. P&C CISR Commercial Property, Columbia, 7 hrs. P&C E&O Risk Management, Charleston, 6 hrs. P&C Agency Management-Based Ethics, Charleston, 3 hrs. Ethics CISR Commercial Property, Greenville, 7 hrs. P&C June 6 12 12 13 19 20-22 20 21 27 Agency Management-Based Ethics, Greenville, 3 hrs. Ethics CISR Personal Auto, Charleston, 7 hrs P&C AAI 82B Agency Management-Based Ethics, Columbia, 3 hrs. Ethics CISR William T Hold Seminar CL, Charleston, 4 hrs. P&C, 4 hrs. Ethics CIC Commercial Casualty, Charleston, 20 hrs. P&C Commercial Lines Nuts & Bolts, Columbia, 6 hrs P&C Commercial Lines Nuts & Bolts, Columbia, 6 hrs P&C Surplus Lines Markets & Practices, Charleston, 6 hrs. P&C February 1-3 7 8 14 15 21 22 23 23 CIC Life & Health, Columbia, 20 hrs. L&H AIAM Day One, 110 & 120, Greenville, 7 hrs. P&C CISR Commercial Casualty, Bluffton/HHI, 7 hrs. P&C CISR Commercial Casualty, Charleston, 7 hrs. P&C AIAM Day 5, 510 & 520, Charleston, 6 hrs. P&C CISR Agency Operations, Myrtle Beach, 6 hrs. P&C or L&H, 1 hr. Ethics Agency Management-Based Ethics, Greenville, 3 hrs. Ethics CISR William T Hold PL, Columbia, 4 hrs. P&C, 4 hrs. Ethics CISR William T Hold CL, Bluffton/HHI, 4 hrs. P&C, 4 hrs. Ethics July 10 11 17 17 18 E&O Risk Management, Myrtle Beach, 6 hrs. P&C E&O Risk Management, Florence, 6 hrs. P&C CISR William T Hold PL, Greenville, 4 hrs. P&C, 4 hrs. Ethics AAI 82C AIAM Day 4, 410 & 420, Columbia, 6 hrs. P&C March 1 6 6 7-9 14-15 15 20 20 21 22 29 E&O Risk Management, Rock Hill,6 hrs. P&C CISR William T Hold Seminar CL, Greenville, 4 hrs. P&C, 4 hrs. Ethics Top 10 Life Insurance Needs, Greenville, 6 hrs. L&H CIC Personal Lines, Greenville, 20 hrs. P&C IIABSC Spring Conference, Columbia, 3 hrs. Ethics CISR Agency Operations, Rock Hill, 6 hrs. P&C or L&H, 1 hr. Ethics AIAM Day One, 110 & 120, Myrtle Beach, 7 hrs. P&C Surplus Lines Markets & Practices, Columbia, 6 hrs. P&C CISR William T Hold PL, Charleston, 4 hrs. P&C, 4 hrs. Ethics AIAM Day 2, 210 & 220, Columbia, 6 hrs. P&C AIAM Day 2, 210 & 220, Greenville, 6 hrs. P&C August 2-4 8 14 16 22-24 23 Young Agents Conference, HHI CISR Commercial Property, Charleston, 7 hrs P&C CISR Personal Auto, Columbia, 7 hrs P&C CISR Personal Auto, Bluffton/HHI, 7 hrs. P&C CIC Personal Lines, Columbia, 20 hrs. P&C CISR William T Hold CL, Columbia, 4 hrs. P&C, 4 hrs. Ethics September 11 11 12 12 18 19 20 20 25 26-28 27 AAI 83A AIAM Day 4, 410 & 420, Greenville, 6 hrs. P&C E&O Risk Management, Columbia, 6 hrs. P&C CISR Commercial Casualty, Greenville, 7 hrs P&C AIAM Day 3, 310 & 320, Bluffton/HHI, 6 hrs. P&C CISR Personal Residential, Myrtle Beach, 7 hrs P&C CISR Commercial Casualty, Rock Hill, 7 hrs P&C AIAM Day 5, 510 & 520, Columbia, 6 hrs. P&C Agency Management-Based Ethics, Columbia, 3 hrs. Ethics CIC Commercial Property, Myrtle Beach, 20 hrs. P&C Agency Management-Based Ethics, Charleston, 3 hrs. Ethics April 3 4 10 11 17 17 18-19 20 24 25 E&O Risk Management, Columbia, 6 hrs. P&C Agency Management-Based Ethics, Rock Hill, 3 hrs. Ethics AIAM Day 4, 410 & 420, Charleston, 6 hrs. P&C CISR Personal Residential, Columbia, 7 hrs. P&C CISR William T Hold CL, Myrtle Beach, 4 hrs. P&C, 4 hrs. Ethics Top 10 Life Insurance Needs, Columbia, 6 hrs. L&H CIC Ruble Graduate Seminars, Myrtle Beach, 12 hrs. P&C, 4 hrs. L&H Top 10 Life Insurance Needs, Charleston, 6 hrs. L&H CISR Agency Operations, Florence, 6 hrs. P&C or L&H, 1 hr. Ethics E&O Risk Management, Bluffton/HHI, 6 hrs. P&C May 3 9 10 15 16 17 22 22 23 31 AIAM Day 2, 210 & 220, Bluffton/HHI, 6 hrs. P&C CISR Agency Operations, Columbia, 6 hrs. P&C or L&H, 1 hr. Ethics AIAM Day 3, 310 & 320, Columbia, 6 hrs. P&C AAI 82A CISR Personal Residential, Greenville, 7 hrs P&C E&O Risk Management, Greenville, 6 hrs. P&C AIAM Day 3, 310 & 320, Greenville, 6 hrs. P&C AIAM Day 6, 610 & 620, Charleston, 5 hrs. P&C CISR Dynamics of Service, Rock Hill, 7 hrs. P&C Agency Management-Based Ethics, Bluffton/HHI, 3 hrs. Ethics October 9 10 17 18 23 24 28-30 31 AAI 83B AIAM Day One, 110 & 120, Charleston, 6 hrs. P&C CISR Dynamics of Service, Bluffton/ HHI, 7 hrs. P&C E&O Risk Management, Charleston, 6 hrs. P&C CISR Personal Residential, Charleston, 7 hrs P&C Agency Management-Based Ethics, Charleston, 3 hrs. Ethics IIABSC 114th Annual Convention, Savannah, Ga. CIC Agency Management Day 1, Hilton Head. 16 hrs. P&C or L&H, 4 hrs. Ethics 36 South Carolina Agent & Broker � Winter 2012 WEBINAR COURSES No exam required for CE credit January 10 11 17 18 19 ABEN Workers Comp Beyond the Basics, 3 hrs. P&C ABEN Business Income Beyond the Basics, 3 hrs. P&C GTW: Insuring Condominiums, 2 hrs. P&C ABEN Ethics & Business, 3 hrs. Ethics GTW: Rental Car Coverages, 2 hrs P&C February 7 15 15 21 22 ABEN Ethics & Business, 3 hrs. Ethics ABEN: Indemnity Agreements & Additionals, 2 hrs. P&C GTW: General Liability, 2 hrs. P&C ABEN: Building Codes, 2 hrs. P&C GTW: Agency Management-Based Ethics, 3 hrs. Ethics March 1 8 20 20 21 27 27 ABEN: Certificates of Insurance, 3 hrs P&C ABEN: Business Auto Claims, 2 hrs P&C ABEN Workers Comp Beyond the Basics, 3 hrs. P&C ABEN Insurance and Property Lease, 2 hrs. P&C ABEN Business Income Beyond the Basics, 3 hrs. P&C ABEN Ethics & Business, 3 hrs. Ethics GTW: Builders Risk, 1 hr. P&C If you thought our Five-Minute Phone Call was fast, April 26 ABEN Ethics & Business, 3 hrs. Ethics Online Rater! Now,there'sonemorereasonTAPCOisThe Logical Choice forfast, easy and accurateE&Spolicyissuance.OurNEW OnlineRateriseasytouseandconvenient,allowingyouto quote and request binders for your insured's instantly, anytime,anywherewithasimpleclickofyourmouse. � Quotesandbinderrequestsavailableonline24/7 � Easytouse--onlyonescreen NEW try our May 8 15 ABEN Workers Comp Beyond the Basics, 3 hrs. P&C ABEN Ethics & Business, 3 hrs. Ethics June 19 ABEN Ethics & Business, 3 hrs. Ethics July 10 11 19 ABEN Workers Comp Beyond the Basics, 3 hrs. P&C ABEN Business Income Beyond the Basics, 3 hrs. P&C ABEN Ethics & Business, 3 hrs. Ethics � Receivequotesinstantlyfor: -Dwelling -Homeowner -Vacant -Builder'sRisk � BONUS:Earnanadditional$5 credit on yourTAPCOEZBucksVisadebitcardfor atotalof$15perpolicyuponreceiptof applicationandpremiumpayment August 14 ABEN Ethics & Business, 3 hrs. Ethics September 11 12 25 ABEN Workers Comp Beyond the Basics, 3 hrs. P&C ABEN Business Income Beyond the Basics, 3 hrs. P&C ABEN Ethics & Business, 3 hrs. Ethics Try it today! October 9 ABEN Ethics & Business, 3 hrs. Ethics Visit gotapco.com and sign in to the broker web services gateway to get started. November 8 ABEN Ethics & Business, 3 hrs. Ethics 800-334-5579 www.gotapco.com Winter 2012 � South Carolina Agent & Broker 16690 Tapco Ad - South Carolina Agent and Broker Winter 2011.indd 1 37 11/11/11 10:30 AM 2012 Board of Directors Executive Committee Chairman Ashley Brady, CIC First Charter Co., Inc Marion, SC email@example.com Chairman Elect/ Treasurer Kenneth A. "Ken" Finch, CPCU, CIC, CRM, AAI Countybanc Insurance Greenwood, SC firstname.lastname@example.org Secretary R. Scott Moseley Irmo Insurance Agency Irmo, SC email@example.com National Director Jon A. Jensen, AAI, AIP Correll Ins Group Spartanburg, SC firstname.lastname@example.org Immediate Past Chairman Kathy D. McKay, CIC, CPIW McKay Insurance Mt. Pleasant, SC email@example.com Directors Thomas M. Bates, Jr. (Tom) Herlong Bates Burnett Insurance Greenville, SC firstname.lastname@example.org William J. Bowers, AIP (Will) Russell Massey & Co., Inc. Columbia, SC email@example.com Angus M. Brabham, IV, CIC (Gus) Frank B. Norris & Co. Columbia, SC firstname.lastname@example.org J. Robert Bryant, Jr. (Bobby) Robert Bryant & Son, Inc. Orangeburg, SC email@example.com David A. Cyphers, CIC, AAI Sifford-Stine Insurance Clover, SC firstname.lastname@example.org Kimberly J. Gore, CIC (Kim) HUB International Southeast Myrtle Beach, SC email@example.com Willard A. Silcox, III, ACSR (Bill) C.T. Lowndes & Company Mt. Pleasant, SC firstname.lastname@example.org Edward S. Spivey, CIC, AAI (Spider) Howard B. Smith Agency Mullins, SC email@example.com Richard L. Walker, CIC Cormell Street & Patterson Florence, SC firstname.lastname@example.org 38 South Carolina Agent & Broker � Winter 2012 Independent Insurance Agents & Brokers of SC 800 Gracern Road Columbia, SC 29210 PRSRT STD U.S. Postage PAID Permit No. 592 Pontiac, Illinois Your Preferred Choice for Homeowners Insurance Protection Programs � Homeowners � Flood Responsive Insurance Planning We Give You `Count Ability' -- Count on Superior, Affordable Insurance to Suit Your Lifestyle Stable Lifestyle Protection A Stable Well Nurtured Company That Has the Strength to Help When You Need It Most Innovative Coverage Requires Strength and Experience Doing Whatever it Takes to Process Your Claim PLAN PuRCHASE PRoTECT www.UPCIC.Com