Marapr13 online

1046 Louisville, KY

13265 O’Bannon Station Way Louisville, KY 40223

MARCH

We offer independent agents vacant home insurance at very competitive rates with no restrictions on length of vacancy, coverage up to $5 million and flexible policy terms of 3, 6 or 12 months. We can even cover buildings undergoing improvements.

Coverage for homes where the most important thing is not what’s there.

But what isn’t.

APRIL 2013

Has Your Agency Updated Its Disaster Plan?

Online quotes are available and no minimum volume is required.

Just go to www.boltonmga.com and click “Online Rating.”

BOLTON & COMPANY Tracking down the right coverage for over 45 years.

2400 Waterfront Plaza · 325 West Main Street · Louisville, Kentucky 40202 Telephone 502.583.8361 · 800.292.6597 · Fax 502.584.6131 · www.boltonmga.com

Inside: Highlights of Legislative Day 2013

Our Members Say It Best

E R A C H T I W E L D HAN We believe "handle with care" means more than a stamp on a box. We believe the best way to handle a claim is to prevent it from happening in the first place. Our SAFETY W.O.R.K.S. program offers an array of tools focused on training, education and awareness of workplace risks. If you do have a claim, we handle your claims with the utmost care and personal attention. Our fair-minded claims adjustors will guide you through the process. And our financial results show proof of our commitment to "handle

The KRF-SIF’s loss prevention and safety training has meant the world to our company. Prior to becoming members of the Fund, we spent quite a bit on annual safety training. Since the Fund provides this type of training at no charge to its members, we have been able to significantly decrease our training expenses.

Jennifer Shaw, HR Manager, Kentucky Lake Oil Company

with care" our financial strength and stability. ‌the main reason we went with the KRF-SIF workers’ comp program is because of their reputation for handling claims management in a manner that is fair not only to the individual, but also to the company holding the policy. The Fund has proven to be able to reduce the cost per claim and overall claims costs.

My advice is that if claims management counts, you can count on KRF-SIF. If not, you can go anywhere.

Bruce Pieratt, President/CEO, Pieratt’s

Want to have a voice in your workers’ comp? For more information, contact your independent agent or: Mary Carney, KRF-SIF Program Manager ‡ /RXLVYLOOH DUHD )D[ e-mail: mcarney@ccmsi.com www.krfsif.org Contact us about our SAFETY W.O.R.K.S program at www.kesa.org.

200 Executive Park, Louisville, KY 40207 | 502.894.8484 | 800.367.5372 | www.kesa.org

Administered by CCMSI

THE KENTUCKY INDEPENDENT AGENT is the official magazine of Independent Insurance Agents of Kentucky, and is published bi-monthly. Editorial offices are located at 13265 O’Bannon Station Way, Louisville, Kentucky 40223, telephone (502) 245-5432; E-mail IIAK@iiak.org; FAX (502) 245-5750.

Officers William S. Latta Chair; Henderson (270) 827-3543 John Funkhouser, CIC, CWCA Chair-Elect; Danville (859) 236-5922 Michelle L. Love Vice Chair; Owensboro (270) 926-2806 James D. England, AAI Treasurer; Pikeville (606) 437-7361

ON THE COVER

Stephen R. Kinkade, CPCU, AAI National Director; Leitchfield (270) 259-5465

The disaster plan is an important part of the

Tim Conder Immediate Past Chair; Louisville (502) 459-7500

management of your agency. This issue's cover story

Directors

update your disaster plan. Read more on page 8.

provides an in-depth analysis on what you need to

Chip Atkins Louisville, (502) 585-3600 Jason D. Billington, CIC Murray, (270) 753-4751 Moe Dugger Lexington, (502) 426-6060 David M. Houk Horse Cave, (270) 286-2724 Diana G. Hunt, CIC Barbourville, (606) 546-4132 John L. Ison West Liberty, (606) 743-4472 Michael G. Johnson, CIC Lexington, (859) 233-1461 Aaron LaRue Bardstown, (502) 348-0050

FEATURES Legislative Day Receives Record Attendance...........................................5 Cover Story: It's Time To Update Your Disaster Plan ................................8 Trusted Choice®: First Dollar Co-op Aims to Assist Agencies with Trusted Choice® Advertising ...............................................................14

Skip McGaw Madisonville, (270) 821-3122

Study Reveals Growth in Property-Casualty Insurance Market..................20

Staff

What Is The CRM?...........................................................................21

Peggy P. Porter President/CEO Kristie Weyer Insurance Services Manager

Demystifying the Digital World Part 1: Content Marketing ......................28

Joy E. Holder Membership Manager Arlene Adonis-Hawkins Director of Communications Tara Purvis Marketing Director

DEPARTMENTS

Megan Granger Member Services Director

From the Chair ..................................................................................4

The Kentucky Independent Agent welcomes all advertising and editorial submissions. Inquiries for advertising, news releases and editorial contributions can be directed to:

Classified Ads ....................................................................................6

Arlene Adonis-Hawkins 13265 O‘Bannon Station Way Louisville, Kentucky 40223 Ph: (502) 245-5432 Fax: (502) 245-5750 Email: aadonishawkins@iiak.org

Mission Statement

The mission of the Independent Insurance Agents of Kentucky, working in the public’s best interest, is to be the preeminent advocate for Kentucky Independent Insurance Agents and support their business and professional development needs.

Education & Events Calendar..............................................................23 People In The News ..........................................................................25 Welcome New Members ...................................................................30 Industry Partners .............................................................................30

This publication is intended to provide accurate and authoritative information on the subject matter covered and is distributed with the understanding that neither IIAK, nor any contributing author or publisher is rendering legal, accounting or other professional services and assume no liability whatsoever in connection with its use. The opinions expressed in the articles are those of the authors and does not necessarily reflect those of IIAK.

3

FROM THE Chair

It is one of my favorite times of the year.

March Madness is in full speed. So you

encourage you to get involved. If you would

may have to be patient with me in this

like to find out more about Project CAP,

article as I may skip around in discussing

please contact the association at (502) 245-

topics of interest. I do hope that your team

5432 or visit

(either high school or college) was successful

www.projectcapmarketing.com.

in their respective tournament.

Our Agents Legislative Day was held

2012 - 2013 IIAK Chair

marketing, is a new program we are offering to members - the Trusted Choice Kentucky

highest attendance ever recorded by the

Advertising Co-op. Please don't miss out

association, with over 90 attendees. This is

on utilizing this program, as it is a first-

a great avenue for us to interact with our

dollar co-op. Specifically, the association

legislators and discuss issues that are of

will support you with your agency Trusted

interest to our industry. Our legislators

Choice advertising up to a maximum of

appreciate us being there and do listen to

$500. The program runs until August 31st

our issues. So I encourage you all to attend

and is open to all members. You can find

next year.

more information about this program on

Leadership Conference have been combined this year with Big “I” Day held

our website at www.iiak.org or contact the association at (502) 245.5432.

Your association is fortunate again this

on May 16th and the YAC Sales &

year to host a CRM course to be held from

Leadership Conference held from May 15

June 12 to 15 at the Hyatt Regency in

to 17. The events will be in Bowling Green

Louisville. Individuals that hold a CIC

at the Holiday Inn University Plaza. Please

designation can satisfy their annual update

plan on bringing your young agents and

requirements by attending this CRM course.

attend this very important meeting where

Attendees do not have to be members of

you can interact with agents young and

IIAK to take advantage of attending this

old. Programs of interest for this event will

course, so if you have clients who are risk

be a discussion on Health Care Reform and

managers, please inform them of this course.

how it affects our member agents, as

Last but certainly not least, please make

business owners and as consumers; as well

your contribution to KAPAC. For those of

as a presentation from our own association

you who don't know what KAPAC is, it is

members who are taking part in Project

our political action committee that helps

CAP and how it is returning market share

us in getting in the door with our decision

to Kentucky. Young agents attending the

makers at the state level.

conference can participate in all of this and

I hope I haven't rambled too much. I

participate in a two-part seminar on

appreciate you, our members for allowing

developing your own personal marketing

me to serve your association. If any of you

plan. This combined event will be

would like to discuss any issue with me, I

educational, great networking and an all-

can be contacted by calling (270) 827-3543

around good time.

or by email at bill@lattainsuranceservices.com.

For those of you who haven't yet gotten

4

Also to help you with your agency

on February 13th in Frankfort. We had the

Big “I” Day and the 2013 YAC Sales & Bill Latta

engaged with Project CAP, I strongly

Advocacy IIAK board member Diana Hunt, YAC members Laura Yount and Kimberly Wilburn.

Legislative Day Receives Record Attendance

IIAK President Bill Latta welcoming everyone to Legislative Day.

This year's Legislative Day garnered record attendance with over 90 attendees present. Held on February 13th at the Capital Plaza Hotel in Frankfort, agents and industry personnel came from throughout the state to listen to industry leaders and meet with legislators on issues affecting the industry.

Legislative Day is an industry wide day which invites a number of insurance organizations to participate. In addition to members from IIAK, attendees included representatives from the Kentucky Association of Health Underwriters (KYAHU), the National Association of Insurance & Financial Advisors (NAIFA) and the Professional Insurance Agents (PIA) of Kentucky. The day began with a morning breakfast and a briefing of insurance issues going through the legislature. IIAK President & CEO, Peggy Porter, headed the briefing, followed by presentations from Marcus Woodward of KYAHU, David Thornton of PIA and Rep. Steve Riggs (D-Louisville).

Following the issues briefing, attendees headed over to the Capitol where they were able to hear a meeting of the House Banking & Insurance Committee and also meet with their local legislators.

There was one bill of particular interest to agents this year and that was HB 164 sponsored by Rep. Bob Damron and deals with electronic proof of motor vehicle insurance and is supported by IIAK:

Electronic proof of motor vehicle insurance HB 164, sponsored by Rep. Bob Damron (D-Nicholsville) Background: In order to allow proof of insurance in an electronic format Rep. Bob Damron (DNicholasville) has introduced a bill to allow the practice. The bill authorizes the use of proof of motor vehicle insurance in an electronic format by download or transmission to a portable electronic device.

An insurance card in an electronic format means the display of an image subject to immediate download or transmission from the insured's insurance company or agent on any cellular phone or

any other type of portable electronic device but does not include a photographic copy of a paper insurance card on a portable electronic device.

However, a paper insurance card or portable electronic device to download the insurance card must be kept in the motor vehicle. If proof of insurance is requested by a police officer because it is not listed in the KAVIS database at the Department of Motor Vehicle the police officer can accept a paper or electronic insurance card but it must be effective no more than 45 days before the date the police office requests the card. It

Jimmy Blount and Beth Combs from Garrett Stotz Company in Louisville

also allows the county clerk to require an email of the electronic insurance card to the clerk for motor vehicle license registration or renewal if it does not appear in the KAVIS

IIAK board members (l to r): Jason Billington, Aaron LaRue, David Houk and Diana Hunt.

5

database but it must be effective no more than 45 days before the date requested.

The clerk may print a copy of the card for

Representatives Jeff Greer and Bart Rowland

the clerk's record.

Outcome: This bill has since passed the Kentucky legislature and was signed into law by the Governor on March 22nd.

It will take effect this summer.

L to R: Rep. Jeff Greer, YAC members Adam Murphy and Neel Ford, Rep. John Tilley and Rep. Bart Rowland

Classified Ads Acquisitions Established Louisville agency interested in acquiring insurance

Acquisitions&Producers A well established regional agency is interested in individual

agencies in Jefferson and surrounding counties. If you are interested in

producers and insurance agencies considering selling or merging.

selling, merging or need assistance with perpetuation, we would like to

Commercial lines & personal lines wanted in Louisville, Lexington,

talk with you in confidence. Call R. Alex Rankin, CPCU or Steve B.

NKY and BG. We represent the best and desired markets for

Thompson, CPCU, at Sterling G. Thompson, Co. at (502) 585-3277.

growing an agency or book of business. Confidentiality provided to all interested parties. Call Scott Ferguson at The Underwriters

Looking for

Group (502) 244 – 1343.

Producers Independent with top best markets looking to expand presence

Producer Wanted

in Jefferson, Oldham or Shelby counties. Wanting Personal lines,

Louisville Insurance LLC has producer opportunities with flexible

Producer or book of business to move or purchase. All arrangements

compensation plans while offering ownership in book of business

possible, in strict confidence. Please send inquiries to Turner

produced. Confidentiality provided to all interested parties. Contact

Insurance Agency, 2460 Shelbyville Road, Shelbyville, KY 40065

Glenn Pike at 502-473-5454 or glenn@louisvilleins.com.

or call Kurt Turner, CPCU at (502) 633-6060.

To place a classified ad please contact Arlene Adonis-Hawkins at aadonishawkins@iiak.org or (502) 245-5432.

6

You’re an independent agent.

Got your life jacket on?

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

7

COVER Story

It's Time to Update Your Disaster Plan

by Jeff Yates, ACT Executive Director

Disaster planning is for every independent agency. Nearby construction can take out your electricity or sever your connections to the Internet, putting your staff out of commission for several days.

A computer virus can bring your systems down, resulting in costly down time and an inability to service your customers as they expect to be serviced.

Has your agency taken the proper precautions to handle these disasters, let alone a fire, flood, hurricane, tornado, or earthquake? Does your staff understand what is expected of them to safeguard against disasters and what their role will be if a disaster were to occur? The following checklist is based upon recommendations contained in ACT's reports and is designed to assist agencies in updating their current disaster plans.

The Key is Pre-Planning • Think through different contingencies & how agency will respond; develop a written plan; test & practice different scenarios.

• Train each employee on his or her roles both to prevent disasters and to help the agency and its customers deal with the aftermath.

• Have a plan to access additional staff resources should current staff not be available.

• Conduct an annual network assessment of your disaster plan & your security plan, and update as needed.

• Maintain valuable papers and agency records off site in a secure facility.

• Include specific triggers in your plan that will set it into motion as foreseeable disasters approach.

Technology Positions Agencies to Handle Most Disasters More Effectively • Move from paper to electronic files wherever possible. Implement download for commercial lines as well as personal lines. The management system is the go to place for client information.

• Portability provides a great advantage so you can reach your agency

8

•

•

•

•

•

management system, email and other systems anywhere and any time.

Have a substantial agency website with needed agency and carrier contact information. This is where customers will look first after a disaster. Have your website hosted off- site in area that will not be affected by the disaster.

Claims download will start to become available in the next year. Implement it as soon as possible and encourage your vendor and carriers to offer it promptly.

Customer claims inquiry on the carrier website is an important tool in handling the surge in customer inquiries following a disaster. The industry needs to work to extend this functionality out to the agency website as well. Agents should implement real-time claims inquiry from their agency management system wherever possible to cut the time to handle these inquiries to under a minute.

Give customers and agents the capability to file claims online. This can be more efficient than filing the claims by phone when phone service is intermittent and unreliable.

Implement real-time claims inquiry, real-time rating, and the other realtime capabilities available to you so that you can service customers in as little time as possible and continue to write new business in the aftermath of a disaster.

Take Advantage of Third Party Resources that Will Keep Your Agency Functioning In the Aftermath of a Disaster • Consider 24/7 remote telephone service to handle customer inquiries if the agency's communications are down, as well as the tremendous spike in claims that is possible. These services possess a mirror of the agency's database.

• Consider engaging a firm to provide emergency equipment & facility replacement if needed.

• Consider remote hosting of agency management system.

• Consider remote service for back up

COVER Story

•

•

•

•

• • •

of your data, in addition to your tape back ups.

Host your agency website in a secure facility out of the area where the disaster might strike.

Consider hosting your email off site or have a back up Internet agency email account.

Consider having a technology firm to provide emergency services, help desk, on-site assistance and equipment when needed.

It is important to formulate these relationships in advance, and understand your vendors' disaster plans.

Pre-arrange to have a temporary office at branch or “buddy” agency.

Make provision for emergency housing following a disaster if needed.

Have maintenance contract for generator, including refueling in the aftermath of disasters.

Employee Communications • Set up employee phone tree, including emergency contact info for each employee.

• Set emergency call in number, email & text messaging for employees.

Customer Communications • Maintain customer emergency contact information.

• Give customers emergency contact information for agency.

• Train customers to go to agency website for emergency contact information for agency, their carriers, and other services.

• Consider a letter to customers at start of hurricane season detailing their carriers, coverages, and emergency contact info for the agency and their carriers.

• Consider ad campaign to encourage consumer preparedness for disasters, with helpful information located on agency website.

• Consider using email and automatic call outs providing customer

information when a storm is imminent.

• Reach out to customers in aftermath with website, signage, newspapers, radio, and TV. Prepare messages in advance.

Lists/Info You Will Need in Electronic & Paper Form When You Evacuate • Employee telephone tree with emergency contact info.

• Carrier contact info. Carrier passwords (take security precautions with respect to this information).

• Phone company & other agency vendor contact info.

• Contacts for emergency assistance & services.

• Complete customer list, with emergency contact info, location addresses, policies, carriers, limits, deductibles, and lienholders.

• Rolodex and copies of the disaster plan.

• Expiration list of policies to be processed for next six months. Activity lists of things coming up for next two months.

• Equipment inventories and valuable agency papers.

• Take security precautions with regard to all of this information!

Telephones • Switch over phone lines at the phone company switch to emergency service before disaster. Investigate capability to do this automatically online.

• Have access to multiple cell phone services, satellite phones, and text messaging.

• Implement Voice over Internet for back up communications capability.

• Have alternative phone line that bypasses the telephone switch in your office to which the agency's regular phones can be switched if you lose power.

Computers • Have multiple ways to reach the Internet.

• Take advantage of wireless and

9

COVER Story

•

•

•

•

portability. Have laptops with broadband mobile access cards and wireless Internet.

Have smart phones & PDAs with cellular broadband access that can act as a high speed modem.

Seriously evaluate ASP option for agency management system. Ask how they can help if you don't have Internet connection.

Have procedures for properly turning on and off critical equipment, including the UPS battery backup units. Test these procedures periodically.

Investigate portable satellite dish for Internet access which is coming on the market.

Back up of Agency Data is Absolutely Critical • Create daily back ups, and have two trusted, authorized employees alternate taking the daily tapes to two different locations. Also maintain monthly and annual tapes.

• Perform test restore at least monthly to test the integrity of the tape and the integrity of the data.

• Invest in secondary form of data archiving to provide redundancy (tape, remote, external hard drive).

• Seriously consider using online remote service as primary back up method, coupled with tapes.

• Be prepared to Fed-Ex a tape of the latest database to agency management system's data center if a disaster is imminent.

• Keep copy of back up software, with its key code, off site in a secure place.

• Manage the security risks presented when taking each of these steps.

Generators • Consider having a permanent generator large enough to supply continuous power to entire facility, wired for automatic cross-over, located in as safe a place as possible.

• Each server & work station needs to be fitted with a proper Uninterrupted Power Supply (UPS).

10

• Never plug computer equipment directly into a generator.

• Test generator under an electrical load to make sure it is producing electricity.

• Contract with vendor to provide ongoing maintenance and testing and to deliver fuel in emergencies.

When a Foreseeable Disaster is Imminent • Fed-Ex a tape of the latest database to the agency management system's data center.

• Consider email and automatic call outs to customers with emergency contact information.

• Staff should complete processing of all work that is outstanding, especially as it relates to coverage relating to the disaster.

• Make sure all needed lists are up-todate in paper form, as well as exported to a laptop & portable storage device.

Tight security is imperative on each of these items.

• Make sure all employees know their assignments & have made clear how they can be reached in emergency.

• If possible, load your agency management system application onto a laptop along with your “latest and greatest” data file for instant access. Take all security precautions to protect your data.

• If you utilize an on-line data backup service, upload to them if possible.

• Wrap and label all employee work to be done to protect it.

• Take reasonable steps to protect all equipment.

• Redirect your phone numbers before the disaster.

• Disconnect all electrical equipment from the wall.

• If destruction of file server is imminent, consider taking the server with you if you know how to disconnect it and handle it safely.

• Shut off water and gas lines.

• Have needed provisions on hand, including enough cash for a few weeks.

COVER Story

Needed Provisions • Fans, extension cords, batteries, flashlights, battery-powered lamps and radios, and low heat, low-energy lighting available to use with your generator.

• Sufficient bottled water to handle employees' and customers' needs for two weeks.

• Canned or dry food goods that do not require refrigeration or cooking, as well as beverages and snacks for employees & customers.

• Can openers, paper/plastic utensils, plates and cups, trash bags, bleach, paper towels and cleaning supplies, and hand wipes.

• First aid supplies and blankets.

• Have paper ACORD claims forms available, carbon paper, and other office supplies, as well as digital cameras.

• Matches, barbeque grill, fuel for grill.

Customers' & Employees' Special Needs in the Aftermath of Disasters • Be aware there will be significant emotional and psychological effects after major events.

• Provide drinks & food • Have a volunteer or staff member manage the client process, create waiting lists, and direct claims process traffic.

• Staff should caucus each day to adjust response as necessary.

Carrier Issues • Understand in advance each of your carrier's CAT plans, the local presence they will have, and how they will permit you to make multiple claims efficiently.

• Understand how your MGAs, E&S Brokers, and their carriers will handle claims.

• Seek draft authority or methods to provide customers with emergency funds immediately.

• Seek the ability to file claims online, since other types of communication may be intermittent or nonexistent.

E&O Considerations • Document in writing prior to the

•

•

•

•

•

anniversary date if you are unable to replace coverage.

Advise customers of significant reductions in coverage when you replace coverage with a new carrier or write/renew the coverage with a surplus lines carrier and secure customer's written acknowledgement of the reduction in coverage. Where an admitted carrier renews the policy, state laws usually put the obligation on the carrier to notify the customer of reductions in coverage (not so with a non-admitted carrier).

Be especially careful to follow all of the laws with surplus lines placements, point out coverage reductions or coverage gaps to customers, along with the fact that surplus lines carriers are not typically covered by the guaranty fund. Get binders, certificates or other evidence of insurance from the surplus lines broker because the retail agent does not have binding authority for this business.

Advise the customer in writing of any adverse change in the carrier's A.M. Best rating during the policy term.

Request a signed rejection form from customers that refuse available coverage for flood insurance (and/or earthquake insurance in appropriate areas). Clearly communicate to customers the exposed limits on their risks.

Create a well documented file.

Summarizing Some of the Key Issues • Pre-plan. Have redundancy in communications, Internet access, and back ups.

• Make arrangements with third party emergency resources.

• Become paperless; implement download & real-time.

• Understand critical nature of good data back-ups to recovery.

• Take advantage of wireless technologies for voice and data, as well as the portability of PCs and portable devices.

• Have emergency contact info for employees, customers, carriers, and third party emergency resources. Have needed lists of information.

11

COVER Story

• Make sure employees & customers know how to reach you.

• Know your carriers' CAT plans.

• Carefully evaluate the E&O exposures that arise in these situations and manage them.

Additional Resources • ACT's Key Considerations in Disaster Planning & Management, located under “Agency Improvement Tools” at www.independentagent.com/act.

• ACT's The Lessons Learned from Recent Disasters & Recommendations for Improved Response for Independent Agencies and the Industry (2006), available from jeff.yates@iiaba.net.

• ACT's The Independent Agent's Guide to Systems Security; What Every Agency Principal Needs to Know (including prototype agency security policy), located under “Agency improvement Tools” at

www.independentagent.com/act.

• IIABA's Best Practices of Crisis Management-A Step-By-Step Business Recovery Planner, located under “Best Practices” at www.independentagent.com.

• National Institute for Occupational Safety & Health at www.cdc.gov/niosh/topics/prepared/; click on “small business disaster planning guide.”

Jeff Yates is Executive Director of the Agents Council for Technology (ACT) which is part of the Independent Insurance Agents & Brokers of America. Jeff Yates can be reached here. ACT's many reports and business improvement tools can be found at www.independentagent.com/act. This article reflects the views of the author and should not be construed as an official statement by ACT.

Acquisition Strategy

#11

LOSS CONTROL SERVICES

“ Reducing losses adds value for your clients.”

Chad Veach, Engineering Services Supervisor Provide more than protection to your clients.

Provide the added value of EMC’s no-fee loss control services, which could help reduce the cost of their insurance. It’s just one of the many reasons policyholders Count on EMC®.

Cincinnati Branch: 800.732.5595

|

Home Office: Des Moines, IA

www.emcins.com © Copyright Employers Mutual Casualty Company 2013 All rights reserved

12

NON-RENEWED

One homeowners claim and you’re out?

What kind of policy is that?

Are you Ànding more and more of your clients are being dropped after one claim?

And you have to make the call to tell them they are no longer covered?

You know what happens next. You lose a client. Once they start shopping, you stand a good chance of losing their auto coverage and everything else.

• HO3 Coverage available • Prior claims are OK • A Rated company • $150,000 to $10,000,000 in values Top rated products and service. It’s why we’ve been in business for over 47 years.

Call or visit our website today. Then call your clients and tell them they’re covered.

Bolton & Company has a market that is perfect for those homeowners.

Tracking down the right coverage for over 47 years.

2400 Waterfront Plaza • 325 West Main Street • Louisville, Kentucky 40202 Telephone 502.583.8361 • 800.292.6597 • Fax 502.584.6131 • www.boltonmga.com

13

TRUSTED Choice®

The Independent Insurance Agents of

First-Dollar Advertising Co-op Aims to Assist Agencies with Trusted Choice® Advertising

Kentucky is excited to deliver a brand new program for 2013 that aims to support

• The 2013 Trusted Choice® Kentucky Advertising Co-op will run from March

®

member agencies with their Trusted Choice co-branding efforts. The 2013 Trusted

1st to August 31st, 2013. Applications are accepted on a first-come/first served

®

Choice Kentucky Advertising Co-op is a

basis and/or until funds are depleted.

first-dollar co-op that will provide eligible member agencies with a maximum of $500 towards Trusted Choice® advertising costs.

Details of the program include: • All IIAK Trusted Choice® member agencies are eligible to take part in the

“The co-op is a great opportunity for agency members of all sizes to engage in Trusted Choice® co-branding of their agency, particularly out in their local communities,” said IIAK Director of Communications, Arlene Adonis-Hawkins. “We have found

program.

that members are active in advertising in • Provided all guidelines and requirements are met by a member agency, IIAK will provide a first-dollar co-op of up to a maximum of $500 per agency member

their own communities and we hope that this further encourages them to spread the word about Trusted Choice® and be identified as a Trusted Choice® member

®

towards its Trusted Choice advertising costs. No matching by the member agency is necessary.

• Trusted Choice® must be incorporated

Members can find further information about the program by visiting www.iiak.org.

Trusted Choice® provides numerous

into all advertising efforts either in the

advertising creative materials for members,

form of the Trusted Choice® logo, Trusted

in addition various logo formats. These can

Choice® website or mention of the

be found at

agency as a Trusted Choice® member.

www.TrustedChoice.com/agents. For

• Acceptable forms of advertising include: venue advertising, print publications, billboards, radio, television and website advertising.

14

agent or agency.”

questions on the 2013 IIAK Trusted Choice® Advertising Co-op, please contact IIAK by calling (502) 245-5432 or email ahawkins@iiak.org.

We invite you to attend a combined

Big I Day (May 16)

&

YAC Sales and Leadership Conference (May 15 to 17)

Holiday Inn University Plaza, Bowling Green

Register for these events at www.iiak.org Events Schedule

Venue & Hotel InformaƟon

Wednesday - May 15 5 p.m.

YAC Sales & Leadership Conference RegistraƟon & Welcome RecepƟon 7 p.m.

Dinner - on your own Thursday - May 16 9 a.m.

YAC Sales & Leadership Conference ConƟnental Breakfast 9:30 a.m.

Big “I” Day RegistraƟon 10 a.m.

Discussion on Health Care Reform and the Independent Agent / How Project CAP is Returning Market Share to Agents in Kentucky 11:30 a.m.

Lunch 12 p.m.

Golf Scramble 12:30 - 2 p.m.

How Independent Agents Can Harness Content and Social Media MarkeƟng to Drive New Business Revenue with Ryan Hanley 5 p.m.

RecepƟon 7 p.m.

YAC Sales & Leadership Conference Dinner & Bowling with fundraising for the Make-A-Wish FoundaƟon ® Friday - May 17 8:30 a.m.

YAC Sales & Leadership Conference Breakfast 9 a.m.

Seminar: “What’s Your Personal MarkeƟng Plan - Part 1,” presented by Ed Lamont 12 p.m.

Lunch 1 p.m.

Seminar: “What’s Your Personal MarkeƟng Plan - Part 2,” presented by Ed Lamont YAC Sales & Leadership Conference Event

Joint Big I Day / YAC Sales & Leadership Conference Event

The venue for the YAC Sales & Leadership Conference and Big “I” Day is the Holiday Inn University Plaza in Bowling Green.

If you are aƩending the YAC Sales & Leadership Conference and will need hotel accommodaƟon, please contact the Holiday Inn University Plaza by calling (270) 745-0088 or toll free 800-Holiday. AƩendees should request the block listed for the Independent Insurance Agents to guarantee the group room rate of $109 (plus taxes) single/double.

All reservaƟons should be made by April 15, 2013 to be eligible for this rate.

15

16

.

Paducah

.

ashland

From Ashland to Paducah We’ve got you covered

Workers’ Compensation Property & Casualty

1-800-442-5723 17

Relax...

You’ve offered each of your clients a personal umbrella policy.

Right?

It might not be quite as relaxing as a day at the beach, but knowing you’ve done everything in your power to protect the customers who trust you to help them will go a long way towards easing your mind.

Offering each and every client an umbrella not only protects those who choose to purchase the coverage. It protects your agency from liability. And it protects your book of business, since studies show that customers who have multiple policies are less likely to move their business elsewhere.

As a Big “I” member, you have access to a stand alone personal umbrella program from A+ rated carrier RLI, featuring: Limits up to $5 million available Excess UM/UIM available in all states You can keep your current homeowner/auto insurer New drivers accepted - no age limit on drivers Up to one DWI/DUI per household allowed Auto limits as low as 100/300/50 in certain cases

Competitive, low premiums for increased limits of liability Simple, self-underwriting application that lets you know immediately if the insured is accepted E-signature and credit card payment options Immediate coverage available in all 50 states plus D.C.

So cover your clients... protect your agency... and profit from umbrella sales!

Contact Jennifer Hopper, your RLI Administrator at: Email: jhopper@arlingtonroe.com Tollf Free: (800) 878-9891, ext. 8639 Local Fax: (317) 554-8551 Toll Free Fax: (888) 552-9891

18

Got Pivots?

Looking for Pivot Insurance?

We We have have a a unique unique pivot pivot policy policy your your clients clients need. need.

Full Replacement Cost with Mechanical & Electrical Failure NO Age Limits NO Special Theft Deductibles NO Pictures or Inspections Covers Collapse, Collision with fixed objects and much more

Appointing New Agents in Kentucky.

Contact Mid-America Risk Managers, Inc Omaha, NE 800-935-6276 Ext 240 WWW.MARM.NET

19

Industry

Study Reveals Growth in Property-Casualty Insurance Market

20

The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) has released the results of the 2013 Market Share Study (based on 2011 data) which reveal that after years of market contraction, all property-casualty insurance premium lines grew. The study also showed that independent agency and brokers (collectively “IAs”) were well positioned to capture a substantial piece of the market going forward.

This is the 17th year the Big “I” has contracted with A.M. Best Company to supply it with year-end industry market share and company expense data. The Big “I” analyzes this data annually to assess the state of the independent agency system.

“The Big ‘I’ is pleased to announce that, despite the market fluctuations and challenges of recent years, the independent insurance agency system remains stable, strong and growing,” says Bob Rusbuldt, Big “I” president and CEO. “Many carriers that weathered the storm of market contractions for several years were able to successfully bounce back.”

The market share study revealed that many regional and national IA carriers expanded their market shares by impressive double digits and that overall IA shares grew in several states. More good news also showed that regional IAs outpaced market growth in many business lines across the country.

“This annual study provides the most accurate picture of what is occurring with property casualty insurance distribution because it separates out the direct response companies from the captive agency companies,” notes Madelyn Flannagan, Big “I” vice president of agent development, education and research. “Unique to the Big ‘I’ study, A.M. Best separates out the affiliates of groups which use different distribution systems and places these affiliates in the appropriate distribution category wherever the company group uses separate affiliates for this purpose.”

Other findings from the Market Share Study include: • IAs outperformed captive agencies carriers in personal lines and grew

premiums by nearly the same amount as direct response carriers largely due to impressive performance in homeowners, where IAs outperformed the captive agencies; • IA carriers also benefited greatly by a huge surge in commercial premiums, which climbed by 5% in 2011. IA carriers also captured $8.4 billion in additional premiums in 2011, which represents 74% of the entire $11.4 billion growth in that market.

• IAs still control a majority of the entire p_c market, writing 57% of all premiums, including a third of all personal premiums.

• IAs still dominate commercial insurance sales, which resurged in 2011, growing $11 billion or 5% more than 2010.

• IAs grew premiums and/or market share in several states and IA share remains strong in many states overall. In many states, IAs dominate both personal and commercial lines.

• IAs are as efficient as other models.

While IAs as a group may have higher efficiency ratios compared with captive and direct writers, there are several IA carriers with personal auto efficiency ratios that rival these challengers. As noted in past reports, this proves that management, not the model itself, is the key driver.

• Many Big “I” Best Practices firms continued to grow in the face of recent weak markets and are doing well now that the p_c market appears to have turned around. Agencies that are easy to do business with, use improved access to technology and leverage the confidence and customization communicated through the Trusted Choice® brand have the potential to enjoy robust growth in every state and every product line.

All of the data in the Big “I” report come from A.M. Best and is printed with its permission. More information on the study is available by request or online at: www.independentagent.com/Resources/R esearch/MarketShareReport.

Education

What is the CRM?

The CRM (Certified Risk Manager) is a

that an individual is knowledgeable in all

designation program being offered in

areas of managing risks, hazards and

collaboration between IIAK and the National

exposures. The courses provide and in depth

Alliance for Insurance Education. The

knowledge about today's highest priorities:

designation is earned by successful

identifying, analyzing, controlling, financing

completion and passage of an exam of five

and administering operation and political

courses. The CRM designation demonstrates

risks, catastrophic loss exposures, employee risk exposures, employee injury exposures, juridical risks and legal risk.

The five CRM courses are: • Principles of Risk Management • Analysis of Risk • Control of Risk • Financing of Risk • Practice of Risk Management The course offering on June 12-15, 2013 is The Practice of Risk Management. This course helps tackle the daily managerial and organizational requirements of risk managers and consultants. The topics covered in this course are: • Introduction to Implementing and Monitoring the Risk Management Process • The Risk Manager • Building Your Risk Management Team • Information Technology for Risk Managers • Allocating the Cost of Risk • Due Diligence During Organizational Change • Executive Risk • Enterprise Risk Management • Reputation and Brand Management • Case Study

When: June 12-15, 2013 Where: Hyatt Regency Louisville, Downtown Louisville, KY For more information and to register go to www.iiak.org.

21

Bringing the Best Together IN KENTUCKY Partner with the best and distance yourself from the competition.

Greg Carlton, Roy Riley & Keith Riley Peel and Holland Financial Group Benton, KY

Sandra Torstrick Blain Al Torstrick Insurance Agency Lexington, KY

Ben, Brett, Kenan & Bud Schultheis Schultheis Insurance Group Evansville, IN

Tommy Adams CM Moore Insurance Agency Bowling Green, KY

Matt Swallows Swallows Insurance Agency Cookeville, TN

Tom Strate Strate Insurance Group Morristown, TN

Virginia Goff Durrett Insurance Agency Louisville, KY

Bob McIntire McIntire & Associates Insurance Cleveland, TN

Carl Schlotman III CAI Insurance Agency Cincinnati, OH

David & Bob Fenner Thomas-Fenner Woods Agency Columbus, OH

Hugh M. McGowan & Hugh B. McGowan McGowan Insurance Group Indianapolis, IN

Tom Chappell & Chris Turnbull Chappell, Smith & Associates, dba. CS&A Insurance Franklin, TN

Partners in Pennsylvania, North Carolina, Virginia, Indiana, Ohio, Kentucky, Tennessee and Georgia.

• Increasing Agency Value for Over 235 Partners in 8 States • Perpetuating & Strengthening the Independent Agency System • Individually Owned & Operated

Doug Walker Walker & Associates Insurance Indianapolis, IN

Call Nancy Tehan at ntehan@keystoneinsgrp.com 888.892.5865 Or visit www.keystoneinsgrp.com

22©2012 Keystone Insurers Group®. All Rights Reserved. This does not constitute an offer to sell a franchise in any state in which the Keystone Insurers Group franchise is not registered.

EDUCATION & Events Calendar

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23

24

PEOPLE In The News

Atkins Promoted to RH Clarkson CEO

IIAK board member George L. â&#x20AC;&#x153;Chipâ&#x20AC;?

Benefits

Atkins, III, has been promoted to chief

Committee.

executive officer of RH Clarkson Insurance

Prior to this, he

Group in Louisville, KY. His promotion

served on the IIAK

became effective Feb. 1.

Membership

Prior to becoming the agency's CEO, Atkins served as its chief operating officer.

He has been with the agency since 1995.

Services Committee.

Chip Atkins, CEO RH Clarkson Insurance

Atkins is a graduate of the University

In his new position, Atkins will oversee

of Kentucky where he attained a B.A. in

the day-to-day operations of the agency.

Communications. He and his wife

As an active member of IIAK, Atkins joined its board of directors in 2011 and

Stephanie have three children and reside in Prospect.

is a current member of the IIAK Health

25

Arlington/Roe. You have our word on it.

“Whether you choose Arlington/Roe for our breadth of knowledge, product line diversity, market access or industry know-how, you may be assured we are in business primarily to serve you. We will do our best to earn and keep your trust. You have our word on it.”

– James A. Roe, CPCU, ASLI, President

Managing General Agents and Wholesale Insurance Brokers

800.878.9891

s

ArlingtonRoe.com

Aviation | Bonds | Brokerage | Commercial Lines | Farm | Medical Professional | Personal Lines | Professional Liability | Transportation | Workers’ Compensation

26

Your customers deserve a ®

Silver Lining.

When something happens to your customer’s home, car, or business, it may not be a disaster. But no matter what it is, your customers always deserve fast and fair service from their insurance company.

West Bend provides a Silver Lining, no matter what the claim may be.

When a child at Kristin’s day care center fell off the swing set and broke his arm, getting good care for him and taking care of the medical bills quickly and painlessly was important. So that’s just what we did.

Sometimes little things mean a lot. And every day, when something bad happens to someone, West Bend makes sure your customers experience the Silver Lining. Because the worst brings out our best.®

27

Marketing

When it comes to content marketing,

Demystifying the Digital World, Part 1: Content Marketing Written by Cari Twitchell, Project CAP

do you know the basics? If you are like many other independent agents across the country, digital marketing and its interworking parts are unknown entities.

What is a CMS anyway? What do you do when you “curate content”? In this post, we hope to help shed some light on this sometimes overwhelming topic by starting from the beginning.

What Is Content Marketing?

(write, edit, publish, delete) all content within your website.

• Conversion: This term is often used in discussing whether the content you are publishing is helping your end goal of gaining more clients. In digital marketing, if your customer is not contacting you, “liking” your posts or “retweeting” your tweets, then that client isn't converting.

• Curation: Content curation is the process

In short, content marketing is using

of sorting through the mass of already-

content to attract the attention of your

published content and presenting it in

prospective clients with the goal of having

an organized fashion, along with

them take action. Content is not restricted

providing your own editorial point of

to just the written word; it includes a variety

view.

of other forms, such as images, videos and podcasts. This content can appear anywhere - on your website, blog, YouTube channel, Facebook page, LinkedIn profile and Twitter.

Defining Content Marketing Terms Those of us in the digital marketing industry often get caught up using jargon, which can be just as confusing as the term “umbrella policy” to a new insurance customer. Here are a few definitions that will help you: • Call to action: This is a short message that states very clearly what you want your reader to do. Ex: Call our agency at 555-555-1234 for a free insurance quote.

• Tagline (slogan): A phrase or word that identifies who you are and/or what you do that others will use to quickly identify you. Ex: Just Do It (Nike).

• CMS: This stands for content

28

Five Key Elements of a Successful Content Marketing Program Understanding content marketing allows you to take the next step to create a program that will perform for your agency.

• Create compelling content that your readers care about. There are two elements of great importance here. First, the content you create has to be compelling. You need to be able to connect with your readers in a way that engages with them. Second, you need to publish content that matters to your audience. Is the topic you're writing about relevant to your client base? If not, don't publish it.

• Continuously update your online presence with new content. You need to publish often if you want to stay relevant. While creating your own content is most valuable, it is often time-

management system, which does just

consuming. There are a few methods

what it says. It allows you to manage

of getting new, unique content to share

Marketing

with your audience: • Ask others for guest posts for your blog.

• Curate content from relevant publications and add your own editorial twist.

• Purchase licensed content from others.

• Repurpose old content in new ways.

• Have and follow a core content strategy.

When you create a content strategy, you are laying the groundwork for the ongoing creation, delivery and maintenance of your digital content.

This strategy can help you answer those key questions of who will create the content, what will they create, where will it be published, when will it be published, and why the content is important to your readers and your

KNOWLEDGE COMES FROM EXPERIENCE

agency.

• Stay organized. The best way to organize your content marketing is to create a schedule. This schedule should include due dates, topics, authors and other important information that allows you to easily track your content efforts.

• Stay involved. This is important

“I go the distance on my bike—just like my 30-year journey with J.M. Wilson. I lead a great team of managers and underwriters that work hard to help our agents be successful.”

regardless of where you publish your content. You need to stay current and involved. Publish often enough to show prospective clients that you stay current with the industry. Whether through blog comments, Facebook posts or other social settings, engage in a dialogue with your clients to give them a community feeling and personal connection.

Sandi Fritz, CIC

Content Marketing Does Not Stand Alone

Vice President, Underwriting and Branches—and fixture on the bike trail Connect with Sandi on LinkedIn!

You can make the most of your online presence by tying content marketing closely with search engine marketing and social media marketing. Watch for posts in the coming weeks on each of these topics. Until

Managing General Agency Since 1920 Property/Casualty t Professional Liability t Surety Commercial Transportation t Personal Lines t Premium Finance

then, read our in-depth content marketing posts or contact our team to learn how we can help you create a compelling content marketing program.

800.666.5692

jmwilson.com

29

WELCOME WELCOME NEW NEW MEMBERS We welcome the following to membership in the Independent Insurance Agents of Kentucky since our last report: Agency Members

Quality Insurance of Kentucky - Lexington Associate Members Business First Insurance Co. - Lakeland, FL The Association, its officers and staff look forward to serving these new members with the best membership benefits and related products and services available.

Support Independent Agents and Become an Industry Partner The Industry Partners program is an opportunity for companies, wholesalers and vendors to strengthen their support of IIAK on an on-going basis. Your participation in the program will guarantee you high-profile, yearlong exposure to our members, but also extends to a wider audience of industry personnel and industry leaders.

Industry Partners as of 3/11/2013:

Premier Level Liberty Mutual Insurance Safeco Insurance Seneca Insurance Company Platinum Level Encompass Insurance Gold Level Arlington Roe & Company Bolton & Company

30

Risk Placement Services, Inc. Silver Level Acuity Amerisafe, Inc. KEMI Keystone Insurers Group State Auto Insurance Company Travelers Bronze Level Auto-Owners Insurance Company Bailey Special Risks, Inc. Bituminous Insurance Companies Columbia Insurance Group Countryway Insurance Company InsurBanc Kemper Preferred Kentucky Agents Finance Company KESA Secura Westfield If you are interested in becoming an IIAK Industry Partner or would like further information on this program, contact IIAK at (502) 245-5432 or email iiak@iiak.org.

Our Members Say It Best

E R A C H T I W E L D HAN We believe "handle with care" means more than a stamp on a box. We believe the best way to handle a claim is to prevent it from happening in the first place. Our SAFETY W.O.R.K.S. program offers an array of tools focused on training, education and awareness of workplace risks. If you do have a claim, we handle your claims with the utmost care and personal attention. Our fair-minded claims adjustors will guide you through the process. And our financial results show proof of our commitment to "handle

The KRF-SIFâ&#x20AC;&#x2122;s loss prevention and safety training has meant the world to our company. Prior to becoming members of the Fund, we spent quite a bit on annual safety training. Since the Fund provides this type of training at no charge to its members, we have been able to significantly decrease our training expenses.

Jennifer Shaw, HR Manager, Kentucky Lake Oil Company

with care" our financial strength and stability. â&#x20AC;Śthe main reason we went with the KRF-SIF workersâ&#x20AC;&#x2122; comp program is because of their reputation for handling claims management in a manner that is fair not only to the individual, but also to the company holding the policy. The Fund has proven to be able to reduce the cost per claim and overall claims costs.

My advice is that if claims management counts, you can count on KRF-SIF. If not, you can go anywhere.

Bruce Pieratt, President/CEO, Pierattâ&#x20AC;&#x2122;s

Want to have a voice in your workersâ&#x20AC;&#x2122; comp? For more information, contact your independent agent or: Mary Carney, KRF-SIF Program Manager Â&#x2021; /RXLVYLOOH DUHD )D[ e-mail: mcarney@ccmsi.com www.krfsif.org Contact us about our SAFETY W.O.R.K.S program at www.kesa.org.

200 Executive Park, Louisville, KY 40207 | 502.894.8484 | 800.367.5372 | www.kesa.org

Administered by CCMSI

1046 Louisville, KY

13265 O’Bannon Station Way Louisville, KY 40223

MARCH

We offer independent agents vacant home insurance at very competitive rates with no restrictions on length of vacancy, coverage up to $5 million and flexible policy terms of 3, 6 or 12 months. We can even cover buildings undergoing improvements.

Coverage for homes where the most important thing is not what’s there.

But what isn’t.

APRIL 2013

Has Your Agency Updated Its Disaster Plan?

Online quotes are available and no minimum volume is required.

Just go to www.boltonmga.com and click “Online Rating.”

BOLTON & COMPANY Tracking down the right coverage for over 45 years.

2400 Waterfront Plaza · 325 West Main Street · Louisville, Kentucky 40202 Telephone 502.583.8361 · 800.292.6597 · Fax 502.584.6131 · www.boltonmga.com

Inside: Highlights of Legislative Day 2013