2024 January Louisiana Agent Newsletter

LOUISIANAAGENT

JANUARY 2024

CEO FROM THE DESK OF THE CHIEF EXECUTIVE OFFICER BEN ALBRIGHT

CTA CORPORATE TRANSPARENCY ACT TO COST SMALL BUSINESSES $23 BILLION JEFF ALBRIGHT

NEWS NEWS FROM NATIONAL BIG “I” JOHNNY BECKMANN

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IIABL STAFF Benjamin Albright Chief Executive Officer, President balbright@iiabl.com (225) 236-1357

Jeff Albright Consultant jalbright@iiabl.com (225) 236-1366

Karen Kuylen Director of Accounting & Finance kkuylen@iiabl.com (225) 236-1353

Jamie Newchurch Director of Insurance Programs jnewchurch@iiabl.com (225) 236-1350

Kathleen O'Regan Director of Communications & Events koregan@iiabl.com (225) 236-1360

Karson Roberts Communications & Events Administrator kroberts@iiabl.com (225) 236-1351

Dustin Wambsgans Agency Consultant dwambsgans@iiabl.com (225) 236-1361

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TABLE OF

CONTENTS CUSTOM CONTENT From the Desk of the Chief

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Corporate Transparency Act to Cost Small Businesses $23 Billion

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How Can Louisiana Improve Insurance Markets

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News from National Big I

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FEATURED ARTICLES

18153 E. Petroleum Drive Baton Rouge, LA 70809 Ph: (225) 819-8007 www.iiabl.com

The Insurance Policy Council

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Build Insurance Customer Loyalty with Employee Engagement

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Agency Leadership Lessons From ‘Toy Story’ Creator

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From the Desk of the Chief BEN ALBRIGHT IIABL CEO AND PRESIDENT

I am honored and privileged to step into the role of CEO at the Independent Insurance Agents of Louisiana (IIABL). As we embark on this new chapter together, I wanted to take a moment to express my enthusiasm for working alongside our members, tackling the challenges of the hard market including the critical, upcoming legislative session, and ensuring that each and every one of you has the support you need.

First and foremost, I want to extend my gratitude to the IIABL community for welcoming me with open arms. I am genuinely excited about the prospect of collaborating with such a dedicated and dynamic group of independent insurance agents. Your commitment to excellence and client advocacy is the cornerstone of our association, and I am eager to contribute to the continued success of IIABL. I also want to take a moment to thank the IIABL Board of Directors and my dad, Jeff Albright, for the way they’ve handled the transition. From the rigorous interview process to their foresight in leaving a long transition period after my dad’s many years of service to the association, the board has strategically positioned the association for continued success. I’ve been very fortunate to come onboard the association and work under dad’s tutelage for several years before taking the reins. That time has allowed me to learn from my dad’s breadth of experience and to build relationships with members, key people in the industry, legislators, and some of the incoming department staff that will be critical in ensuring the organization’s success going forward. On a personal note, it has also been one of the great pleasures of my life getting to work with my father in this capacity: one that I know many of our family agency members can appreciate. The vision of the board and my dad’s leadership through this transition period has allowed the changeover to be as smooth as we could have hoped for, and I’m truly grateful for how they’ve set me up for success.

Obviously, I’m stepping into this position during a time of unprecedented difficulties for our members in the market. I will be laser-focused on continuing IIABL’s work to improve market conditions in the state for our members and for the policyholders suffering in Louisiana. The upcoming legislative session poses both challenges and opportunities for our industry, and I want to assure you that IIABL will be at the forefront of advocacy efforts. I am ready to tackle these challenges head-on, working tirelessly to ensure that the voice of independent insurance agents in Louisiana is heard loud and clear. Together, we can navigate the legislative landscape and advocate for policies that promote a thriving and sustainable insurance industry.

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My door is always open, and I am here to support you in any way possible. Whether you have questions, concerns, or ideas you want to share, please don't hesitate to reach out. I can be reached by phone at (225) 236-1357 or by email at BAlbright@IIABL.com. Your input is invaluable, and I am committed to fostering open communication between IIABL and its members. We’re here to serve you.

I’d also ask that you reach out if you’re interested in getting more involved. We’ll need every voice we can get to pass meaningful change through the legislature, so reach out if you know your local senators or representatives. Similarly, if you’re interested in serving as a volunteer leader, please let us know.

Our entire volunteer leadership team, at the local, state, and national level is made up of agents like you that let us know they’d like to serve.

As we embark on this journey together, I am filled with optimism and enthusiasm for the bright future that lies ahead for IIABL. Together, we will navigate challenges, celebrate victories, and strengthen the bonds that make our association a force to be reckoned with in the insurance industry.

Thank you for your trust and support. I look forward to working closely with each and every one of you in the coming months and years. Here's to a prosperous and fulfilling partnership!

Corporate Transparency Act to Cost Small Businesses $23 Billion JEFF ALBRIGHT IIABL CONSULTANT

The Corporate Transparency Act (CTA), which was passed as part of the National Defense Authorization Act in 2021, contains a provision that creates a new federal reporting requirement for most small businesses. The CTA will go into effect on Jan. 1, 2024.

This new burdensome requirement was originally meant to cover nearly all small businesses, including insurance agents. However, the Big “I" was successful in securing an exemption for independent agents and brokers by showing that insurance producers already provide this beneficial ownership information to state regulators and that the additional burden of providing it to the federal government would be duplicative and unnecessary.

Data released by the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) and the National Federation of Independent Business (NFIB) estimate that complying with the CTA will cost a staggering $22.7 billion in its first year and an additional $5.6 billion per year moving forward, affecting 32.6 million small businesses in the first year and five to six million small businesses every year thereafter.

Also, according to FinCEN, the estimated total time for filing the Beneficial Ownership Information (BOI) reports can take up to 11 hours for a "complex structure" and about six hours for an “intermediate structure." With potential civil and criminal penalties for noncompliance, many small businesses will retain outside legal and accounting counsel, which FinCEN acknowledges will cost up to $2,615 per entity in the first year. Further, the penalties for failure to comply with these reporting requirements are severe, with civil penalties of up to $10,000 and criminal penalties of up to two years in prison.

The Big “I" was the only insurance producer group that advocated on behalf of agents and brokers to exclude them from this new onerous requirement. Without this exemption, the beneficial ownership provision would have required agencies with fewer than 20 employees to file new reports on their beneficial ownership with FinCEN. Agencies would have had to comply with the new requirement annually starting within two years of the law's enactment for existing businesses or upon the incorporation of a new business.

News From National Big I JOHNNY BECKMANN ASSUREDPARTNERS SENIOR VICE PRESIDENT

National Big I (IIABA) continues to work on behalf of all independent agents country wide. With the retirement of Robert Rusbuldt, former CEO, the National Big I has new leadership under Charles Symington. With new leadership comes new ideas. The mission of the Big I remains the same, “To provide independent insurance agents and brokers with a sustainable competitive advantage in the insurance marketplace by equipping members with the tools and resources and advocacy and support to maintain excellence in business and customer service.”

Charles Symington has a long Big I history. He has been with the association since 2004 and oversaw federal and state government affairs, political affairs, grassroots, industry relations and communications and media affairs He has been regularly recognized by The Hill newspaper as one of the top lobbyists in Washington D.C, advocating on a range of topics important to Big I members such as flood insurance, small business tax issues, regulatory reforms and more. Charles is a friend of Louisiana and will work with your IIABL on issues facing Louisiana agents on the national stage.

Charles is also committed to improving communication between the national association and state association leaders. Our national association is very aware of the hard market across the country and the deteriorating relationship between agents and carriers.

The IIABA has produced the Trusted Choice Hard Market Toolkit to assist agents with the challenges of the hard market. More than 9500 agents have downloaded it since its initial publication in July.

The toolkit has been helping agents navigate the challenging market with advice, scripts, and strategies to effectively communicate with clients to help keep customers informed on the impact of the hard market on their coverage and premiums. This Toolkit can be found and downloaded from the Louisiana and National Big I website.

At the January meeting, the IIABA Boad of Directors adopted a policy statement on Agency Compensation and Appointments. This statement’s purpose is to state clearly to insurers the importance of the independent agency channel and our concerns with the state of our carrier relationships. The statement will be distributed to all insurance industry stakeholders and emphasizes the critical and unique role that independent agents and brokers play in the insurance marketplace. It details the services we provide for both consumers and insurers and expresses concern about recent carrier reductions in agents’ commissions and inappropriate agency terminations.

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BIGINEWS While acknowledging the challenges insurers face in the current hard market, the statement also affirms that “we also believe the practice of reducing agent compensation and terminating agency appointments is rash and misguided” and that “the ability of agents to serve the needs of consumers is hindered when insurers inappropriately terminate agency appointments.” The policy document goes on to say that insurers have a responsibility to discuss in advance with their distribution force any significant actions they will take. Read the full statement here.

On the legislative front, the National Big I has been very successful in protecting our agencies. The most recent example is The Corporate Transparency Act (CTA) which went into effect on January 1st.

This act requires most businesses with fewer than 20 employees to report their beneficial ownership to the U.S. Treasury Department’s FinCEN. Compliance with this regulation is expected to cost small businesses a total of $22.7 billion in its first year—up to $2,600 per entity—and failure to report could result in civil and criminal penalties of up to $10,000 or two years in prison. But unlike many other small businesses, Big I members don’t need to worry about any of this in the new year. That’s because the Big “I” was successful in securing an exemption for insurance producers, arguing that the law was erroneous and duplicative for state-regulated insurance agencies.

The Big I National Association will continue to advocate for small business tax reform. Our next National Big I meeting will be in Washington D.C. in April. Both your IIABL lobbying team and IIABA lobbyists will meet with the Louisiana Congressional delegation in Washington. Some important topics of discussion will be continuation of the flood insurance program, transparency in insurance pricing, and long term authorization of the crop insurance program, small business tax reform, wildfire exposures and hard market relief.

How Can Louisiana Improve Insurance Markets?

JEFF ALBRIGHT IIABL CONSULTANT

When we talk to insurers about why they don’t do business in Louisiana, we get a variety of answers. Of course, property insurers bemoan the frequency and severity of hurricane losses in recent years. But there are other states that have had catastrophe losses, whether it is hurricane, wildfire, or convective storms.

Why is the Louisiana insurance market so much worse than other states?

Three words. Legislation. Regulation. Litigation.

For many years, unlike many other states, Louisiana has tried to legislate, regulate, and litigate insurers into submission. This heavy handed approach of “protecting consumers” has resulted in insurers leaving the state or restricting their business in Louisiana. Limited market capacity leaves consumers with our current availability and affordability crisis.

We can’t change the weather. Hurricanes will happen. But we can bring Louisiana into the mainstream like other states by reforming legislation, regulation, and litigation to make Louisiana a state where insurers want to conduct business.

If we are ever going to make Louisiana a more competitive insurance market, 2024 is the year.

We have a new Republican governor, a new insurance commissioner with experience from the industry, 57 new legislators, and super majorities in both houses of the legislature. The first year of a new four year term is the best chance to make major difficult changes. Next year will be a fiscal session where tax reform will take all of the oxygen out of the Capitol and other reforms will be inconsequential. THIS is the year for insurance reforms.

What does that look like?

Following are some of the insurance reforms being considered for the 2024 Regular Session of the Louisiana Legislature.

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LOUISIANAMARKETS 2024 Insurance Reform Legislation 1.Build more resilient buildings Improvement of the building code Enforcement of the building code Continued funding of the LA Fortify Homes Program Tax credits?

2.Fair claims handling/Proof of loss/Good faith R.S. 22:1892 & R.S. 22:1973 Combine bad faith statutes (La R.S. 22:1973 and 22:1982) so there is only one set of statutes and one set of penalties.

Require a written statement by the policyholder as the “Satisfactory Proof of Loss” trigger. Unlike states like Create a cure period or claims process that encourages insurers to make supplemental payments and gives both parties an opportunity to resolve any dispute before a policyholder has to resort to costly and lengthy litigation.

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Continued from page 13 3.Modify the “more than 3-year rule” R.S. 22:1265.D. & R.S. 22:1333.C. Allow changes in individual policy deductibles Clarify “material change in the risk” Limit rule to policies that qualify before 1/1/2025 Non-renew a percentage of their policies Repeal the statute entirely 4.Deregulate insurer rate filing process Replace prior approval rating statutes with use & file/file & use Modernize & streamline rate filing processes LDI provide assistance to insurers on rate filings 5.LA State Catastrophe Reinsurance Fund Low attachment point reinsurance wrap policy Funded by carrier purchases over time Ability to issue catastrophe bonds funded by policyholder assessments, if underfunded.

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LOUISIANAMARKETS 6.Third-party litigation funding arrangements Require disclosure of all third-party litigation financing arrangements in which a third-party funder will be entitled to a share of any earnings from a settlement or judgment Prohibit third-party litigation financing 7.Reform collateral sources on medical expenses Create something like balance billing statute in Medicaid (can only recover amount paid by insurer + deductibles, copays) Limit recovery to actual medical expenses paid (eliminate current 40% of the difference between the amount billed and paid) Require claimants to use collateral sources of Workers Compensation or health insurance if available but allow claimant to recover deductibles, copays, etc.)

8.Transparency around actual medical costs Only allow medical bills that are actually paid or owed by the claimant to be introduced into evidence Limit evidence to actual medical costs and exclude billed charges Likely tied to 2-year prescription 9.Elimination or reduction of direct action statute Prohibit direct action against the insurer unless there is a reservation of rights or an inability to serve the plaintiff 10.Reduce or eliminate jury trial threshold 11.License & regulate roofers; permit & inspect roofs 12.License & regulate the property insurance policy appraisal umpire process (2023 HB 604) 13.Require inspection by insurer before major demolition by mediation contractors

The Insurance Policy Council JEFF LANDRY GOVERNOR OF LOUISIANA

About the Council The Insurance Policy Council was established at the request of Governor Jeff Landry to identify the problems that exist in the Insurance Industry in Louisiana and to discuss and propose solutions to those problems. This council was led by Commissioner-Elect Tim Temple and Ross Laris and included voices from across the political and policy spectrum in Louisiana. The findings listed below represent the recommendations made by the council.

Property Insurance is unavailable and unaffordable in Louisiana.

Between an unprecedented number of natural disasters and excessive regulations and litigation, the property insurance market is in a crisis. In addition, twelve carriers went insolvent, which prolonged the claims process for their policyholders and placed the financial burden on the shoulders of the remaining market participants and, indirectly, on taxpayers. Consumers are being priced out of the market due to skyrocketing premiums and decreasing options. Insurance providers are fleeing the state because of Louisiana’s uncompetitive regulatory environment and a constant threat of litigation. Louisiana is the most unaffordable state in America for insurance, and it is imperative that we reverse course and correct the fixable areas of our insurance market.

Recommended Solutions 1. Continue and expand the efforts to fortify roofs in South Louisiana. Claims and damages are dramatically reduced when a roof stays on a house during a storm. Therefore, to lower the cost of doing business, insurance premiums, and damages for consumers the council recommends supporting longterm funding of an expanded roof fortification effort.

2. Create a clear process for claims resolution. Currently, there are multiple statutes and other regulations that cause confusion for insurance providers and consumers regarding the process by which a claim is handled. To avoid costly litigation and to ensure consumers’ claims are resolved in a timely manner, it is necessary to create a clearly defined claims process.

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POLICYCOUNCIL Automobile insurance premiums are significantly higher than Louisiana’s neighboring states. Despite being average in the number of collisions and other factors that often contribute to higher auto insurance premiums, Louisiana’s average premiums are far higher than almost anywhere else in the United States. These high premiums are placing financial strains on Louisiana’s citizens and make the state uncompetitive when it comes to attracting and retaining citizens and business. Through a mixture of the state’s regulatory and litigious environment, premiums will continue to increase and price more Louisianans out of the state unless steps are taken to address the core problems surrounding our insurance market.

Recommended Solutions 1. Reform Louisiana’s statutory provisions surrounding the automobile insurance industry to be more competitive with neighboring states. Many of Louisiana’s laws are out of sync with neighboring states that have drastically lower premiums. Some examples are collateral source, direct action, and the prescriptive period. The council recommends reviewing the laws that make Louisiana an outlier and seeking potential legislative fixes to make Louisiana more competitive while ensuring consumer protections.

2. Explore options to change Louisiana’s legal climate. Louisiana has been regarded as an overly litigious environment for years. To make sure insurance providers can provide affordable coverage, it is necessary to review and explore changes to the legal environment that bring transparency, fairness, and honesty back into the litigation process.

Build Insurance Customer Loyalty with Employee Engagement MANAN SAGAR GENESYS GLOBAL HEAD OF INSURANCE

A policyholder named Jason had questions about the claim forms his insurance carrier asked him to fill out. He tried to use online self-service and even interacted with a chatbot, but neither option gave him the information he needed. Frustrated, he picked up the phone. The agent answered his specific questions but seemed rushed and ended the call with Jason still confused. He called back two more times, and each agent left something unresolved. Jason felt like he was doing all the work. He spoke to a manager who apologized for the lackluster service and explained that they were handling higher call volumes with fewer resources. Jason felt let down.

Digital channels and self-service options give customers convenient access to more information and support. But, for more complex issues, live agents are still needed. And when it comes to insurance, 72% of customers still prefer a phone call, according to “The connected customer experience” report.

That means your agents’ skills in resolving issues and engaging customers with empathy are missioncritical. Developing those skills and meeting customer expectations can be a challenge — even for the best contact center teams. They don’t always get it right.

Adding channels isn’t likely to fix that. But adding digital workforce engagement tools can help. When integrated with your contact center solution, workforce engagement management (WEM) tools enable agents to deliver more helpful, empathetic experiences.

1. Guide agents to create personalized interactions Policyholders want to feel heard and understood. During a crisis that requires them to file a claim, they also want to talk with an agent who can guide the interaction efficiently and with empathy. A complex workflow can disrupt the agent’s ability to focus on the caller’s needs. Spending time searching different systems for policy details or relevant information about the policyholder distracts the agent and disrupts the conversation flow — and that can frustrate the policyholder and agent alike.

Bringing all data and processes into a single unified platform can save agents time and improve their focus on callers’ needs. Quick access to relevant policyholder information, such as claim details and conversation history, also gives agents important context for personalizing the conversation. Plus, it creates service continuity when multiple agents interact with the same policyholder.

Build insurance customer loyalty with employee engagement. (n.d.). Genesys. Retrieved February 1, 2024, from https://www.genesys.com/blog/post/build-insurance-customer-loyalty-with-employee-engagement

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Tools like agent-assist can do even more to help agents guide the conversation. Using an artificial intelligence (AI)-powered engine, agent-assist surfaces the next-best steps, along with answers to frequently asked questions. This guidance can be especially helpful for agents who support multiple sophisticated products.

More advanced assistance tools also display a confidence score to help the agent decide if the suggestion is a good fit. With machine learning, agents can improve future suggestions by rating each one. This inthe-moment support frees agents to focus more intently on the conversation and respond more quickly to a policyholder’s needs.

By helping the agent maintain attention on the caller, agent-assist creates a more fluid interaction that enhances customer satisfaction. The efficiency gained allows the contact center to maintain the quality of the customer experience when call volume is high or contact center staffing is low.

2. Build agent skills with interaction analytics: As automation and self-service increasingly handle tasks like simple inquiries and product quotes, contact center agents spend more time dealing with lengthy, complex and varied interactions. These interactions might require specialized skills, especially if the agent is supporting and servicing sophisticated products or dealing with a new claims process. That means skill development and quality assurance are crucial. Ensuring consistent quality on calls can be difficult.

Random sampling is time-consuming — a bit like finding a needle in a haystack.

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Speech and text analytics can automate the process and ensure all interactions are evaluated. The analytics can score the agent on the metrics you choose, such as an empathy metric, and flag problems based on the conversation. For example, a carrier might want to ensure agents are encouraging policyholders to use a mobile app when submitting photos showing damage with a claim. With word and topic spotting, speech and text analytics can flag a conversation in which the agent asked the policyholder to email the photos instead. That flag could trigger the manager to assign the agent with training on the mobile app.

Quality dashboards that aggregate data enable managers to see overall team performance, spot trends over time and pinpoint skill development opportunities for individual agents. Sentiment analysis can also help the manager determine quickly whether a caller had a positive or negative experience. If the dashboard is updated with analytics running in near-real time, the manager can offer coaching to agents right away.

3. Empower agents to boost performance: The same analytics that enable managers to pinpoint interaction issues can also empower agents to manage their performance. Agent dashboards that display KPIs give agents insights as they monitor their personal metrics. Gamification uses motivational tools to nurture continued growth. Agents can see how coaching and other learning opportunities impact performance and then compare themselves with other team members. With a dose of healthy competition, agents can challenge one another to improve their overall performance.

According to the MIT Technology Review Insights report “Customer experience and the future of work,” 96% of CX executives who responded to the survey say they struggle to recruit contact center agents. And 62% report increased hiring costs. The key is to keep agents and keep them engaged is to empower agents to drive performance metrics. This allows them to be more committed to both the organization and its customers — and it means your contact center can maintain a consistent delivery of outstanding customer experiences. That creates customer satisfaction can lead to overall agent satisfaction, which reduces agent attrition.

Agent Engagement Is Key To Better CX In the insurance industry, the contact center agent’s role is critical in maintaining customer satisfaction.

They do much more than provide price quotes and resolve billing questions. Policyholders rely heavily on agents to guide them through difficult experiences; keeping agents trained, supported and engaged is a key component in the customer experience. Even as digital transformation reshapes the industry, personalized service remains a strong differentiator that customers value and will repay with loyalty. And a loyal customer is a long-term customer.

To learn more about consumer expectations with insurance companies — and where providers are succeeding and failing, read our report “The insurance industry’s empathy gap.”

Agency Leadership Lessons From ‘Toy Story’ Creator DIANE T. KEIL-HIPP KNIGHT INSURANCE GROUP CHIEF OPERATING OFFICER

We all know the movie “Toy Story" and its lovable characters Woody, Buzz, Jessie, and the rest of the gang that come to life when humans aren't looking. But what could this animated movie possibly have to do with leadership? Well, the lessons for business leaders come from “Toy Story" creator Pixar and its cofounder, Ed Catmull.

In a recent Wall Street Journal article, Catmull shared his wisdom about change, long-standing success, and the elusive “sweet spot." Interestingly, Catmull's comments align with the research on the internal factors necessary for organizations of all sizes to survive over time.

First, let's take a quick overview of the Pixar journey. Catmull was recruited by George Lucas in 1979 to create a digital film unit. In 1986, Steve Jobs purchased the unit from Lucas and founded Pixar along with Alvy Ray Smith and Catmull. Nine years after its founding, Pixar released “Toy Story," and in 2006, Pixar was sold to Disney for $7.4 billion.

Now, before you discount this story because "all tech companies got rich in this era," consider that in 1986, Sun Microsystems and Silicon Graphics were on top. Today, you'd be hard-pressed to find someone who recognizes those names. Although it is hard to believe that technology firms could ignore signs of their technology changing, that is what happened. Today, neither firm exists.

Catmull understood that, although technology was a critical ingredient to Pixar's success, organizational culture, its view of change, and its corporate attitude are the pillars technology rests on. As a leader, he was determined to build a company with a sustainable creative culture that encouraged communication and removed hierarchies.

As it turns out, these three pillars are foundational for all types and sizes of businesses, including insurance agencies. Here's how each pillar affects agency performance and longevity: 1) Organizational culture. This defines the environment in which co-workers engage. Together, coworkers learn how to think, feel and behave. The behaviors that are validated by the environment are taught to new members as the correct way to think, feel and behave. Soon, a culture is born, whether productive or dysfunctional.

At Pixar, Catmull wanted to build a culture that encouraged communication and removed hierarchies.

Nearly 40 years later, fostering this type of culture still takes attention and focus. But it is a nonnegotiable effort for the longevity of the business.

Keil-Hipp, D. T. (2023, December 20). Agency Leadership Lessons From “Toy Story” Creator. Www.iamagazine.com. https://www.iamagazine.com/strategies/agency-leadership-lessons-from-toy-story-creator

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A productive agency culture encourages employees' ideas, rewards stellar performance and abounds with supportive conversations. But when culture is dysfunctional, the tentacles spread far and wide.

Maybe you know of agencies where ideas are shut down, only favored employees are rewarded, and gossip thrives. These are all examples of a dysfunctional culture. When these behaviors are commonplace, the agency's sustainability is at risk.

2) View of change. The organization's view of change affects its desire to look into the future of consumer wants and needs. A resistant organization will be satisfied with the status quo and less likely to change tried-and-true processes for new approaches.

However, Catmull says there is no point of rest, no place for coasting, no sweet spot. “Even when you get to a place where everything seems right, people come in with new ideas, new technology, new expectations … we need a mindset that allows us to adapt when nothing is stable," Catmull told the Wall Street Journal earlier this year. Although it seems like an oxymoron, embracing change must be a foundation.

Because many agencies are long-standing firms, resistance to change often prevails. The agency's history and legacy can become its own worst enemy, preventing the firm from embracing new technology and recognizing changing consumer demands. For instance, do you know an agency that still relies on paper policies?

3) Corporate attitude. Corporate attitude is defined by the firm's view of its future existence. If the firm is humble, it will not take its success for granted. However, a firm with an overly confident attitude about its future can ignore the changing winds. This type of attitude often emerges after an organization achieves great success. Even the most attentive leaders can get caught up in the moment. Who can blame leaders for basking in the glow after years of hard work?

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But basking in the glow can open an organization up to being blindsided. Catmull admitted that Pixar had its share of problems. Internal rifts, discrimination and sexual misconduct blindsided him.

At agencies, a corporate attitude of over-confidence can be years in the making. Long-standing, B egenerational n A l b r i g h tbusinesses are especially susceptible to wearing rose-colored glasses that show an idyllic future. But assuming the agency will continue to thrive simply because it has prospered to this point is December 2023 dangerous.

Often, agencies who suffer from this attitude blame others for their lack of sales growth and fail to reinvest in the business or strategically plan.

Spinning Wheels: The research supports Catmull's observations. My research on organization decline led to the creation of the Spinning Wheels model, which illustrates how these three factors—culture, change and attitude—spin into liabilities, creating a dysfunctional culture that resists change and assumes its future is guaranteed.

When these three factors of change, culture and continuity become liabilities, the organization becomes inwardly focused, spinning in its busyness of following processes that brought earlier success.

But while the organization focuses inward, the consumer market is moving, likely in a different direction. Consumers will move away from firms that no longer meet their needs. But an organization that's spinning its wheels thinks that its existing processes will still garner success. And if you think insurance agencies are immune to changing consumer needs, you are proving my point.

Don't let your organization become a spinning wheel. Take the “Toy Story" lessons and pay attention to your organization's culture, view of change and corporate attitude. If any one of these starts to spin inward, grab that wheel, stop the spinning and lead your firm toward the future market.

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ADVERTISER INDEX COMPANY AmWINS Access Insurance Services, LLC Berkshire Hathaway GUARD Ins Cos Burns & Wilcox, Ltd. Commercial Sector Insurance Brokers CRC Group Gulf States Insurance Imperial PFS Independent Market Solutions

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COMPANY LA Workers Compensation Corporation LCI Workers' Comp LUBA Workers' Comp RLI Homebuilders SIF UFG Insurance

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UPCOMINGEVENTS Date & Time

Location

Registration

IIABL 2024 Legislative Preview Lafayatte Luncheon

Feb. 27 11:30 am - 1:30 pm

Ruffino’s On The River

Online Registration

IIASB February Luncheon 2024 Legislative Preview

Feb. 28 11:30 am - 1:30 pm

The Shreveport Club

Online Registration

IIAGNO February Town Hall 2024 Legislative Preview

Feb. 29 11:30 am - 1:30 pm

Metairie Country Club

Online Registration

IIABR March Luncheon 2024 Legislative Preview

March 12 11:30 am - 1:30 pm

Juban’s Restaurant & Bar

Online Registration

IIABL Women In Insurance Conference

April 4-5

The Southern Hotel

Online Registration

IIAGNO BBQ Social

April 18 4:00 pm - 6:00 pm

Central City BBQ

Online Registration

IIABL Young Agent Cornhole Tournament

May 2 4:00 pm - 6:00 pm

Tin Roof

Online Registration

IIAGNO Charity Golf Classic

May 10 8:00 am - 12:00 pm

Golf Club at Audubon Park

Online Registration

IIABR TopGolf Charity Tournament

May 23 2:00 pm - 5:00 pm

TopGolf

Online Registration

IIABL Annual Convention

June 16-19

Hilton Sandestin

Online Registration

IIABL & IIAM Young Agents Conference

August 22-24

Royal Sonesta New Orleans

Online Registration

IIABR Fall Social

Oct. 10 4:00 pm - 6:00 pm

BRQ Seafood & Barbeque

Online Registration

IIABL Cook-off

October 2024

TBD

Coming Soon

Event

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LOUISIANAAGENT

IIABL 2023-2024

BOARD OF DIRECTORS & OFFICERS PRESIDENT, ARMOND K. SCHWING Schwing Insurance Agency, Inc. - New Iberia PRESIDENT-ELECT, BRET HUGHES Hughes Insurance Services, Inc - Gonzales SECRETARY-TREASURER, ROSS HENRY Henry Insurance Service, Inc. - Baton Rouge NATIONAL DIRECTOR, JOHNNY BECKMANN, III Assured Partners - Metairie PAST PRESIDENT, MICHAEL SCRIBER Scriber Insurance - Ruston YOUNG AGENT REP, KRISTIN SWANSON SCOTT Swanson & Associates - New Orleans ANN BODKIN-SMITH Thomson Smith & Leach Insurance Group - Lafayette MATTHEW DEBLANC Continental Insurance Services - Marrero CHRISTY DESOTO 1st Insurance of Marksville - Marksville DOMINIQUE DICARLO CROUCH Riverlands Insurance Agency - LaPlace ROB W. EPPERS Risk Services of Louisiana - Alexandria MATT GRAHAM Lincoln Agency - Ruston CHRISTOPHER S. HAIK Higginbotham Insurance - Lafayette STUART HARRIS McClure, Bomar & Harris, LLC - Shreveport BEAU HEAROD Jeff Davis Insurance - Jennings CHARLES H. LEBLANC Bourg Insurance Agency, Inc. - Donaldsonville CRAIG MARTEL Insurance Unlimited of LA, LLC - Lake Charles LYDIA MCMORRIS Alliant Insurance Services - Baton Rouge A. EUGENE MONTGOMERY, III Community Financial Insurance Center, LLC - Monroe JOE KING MONTGOMERY McGriff Insurance Services - Monroe HARTWIG "ROBBY" MOSS, IV Hartwig Moss Insurance - New Orleans ROBERT LOUIS PALMER, JR. Insurance Underwriters, Ltd. - Metairie RANDY PERISE Blumberg and Associates - Ponchatoula ROBERT STONE Stone Insurance, Inc. - Metairie