Kentucky IA - May/June 2015

May/June 2015

Young Agents The Future of our Industry

AHHH, KENTUCKY. A WONDERFUL PLACE TO LIVE AND WORK. All of us at KESA are proud to call Kentucky our home and we’re proud to call KESA our workplace home. KESA’s Kentucky roots run deep with 35 years of providing workers’ comp coverage for Kentucky’s employers. All across our beautiful Commonwealth, from the biggest cities to the smallest towns, KESA’s goal is simple - to keep Kentucky’s workforce safe and provide coverage when a workplace injury occurs. We’re proud of the work we do and we’re proud to be a long-standing part of the Commonwealth of Kentucky.

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

What's

Inside

Contents

Page 16

9 Attracting & Retaining Young Talent

12 The Key to Recruiting Millennials? Make Them Feel Special 16 Improving the Odds: Keys to Success for Young Producers

Page 20

20 21 Insurance Sales Tips for Young or Inexperienced Insurance Agents 27 3 Big Benefits of a Virtual Agency

In Every Issue Page 27 The Kentucky IA is the official magazine of the 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 Email: iiak@iiak.org Fax: (502) 245-5750 The Kentucky IA welcomes all advertising and editorial submissions. Inquiries for advertising, news releases and editorial contributions can be directed to Nikki Petrowski at the editorial office address or via email at npetrowski@iiak.org

4 From the Chair

31 Advertiser Index

6 DOI News

31 Classified Ads

8 Education Calendar

31 Social Media Links

14 E&O

31 There’s an APP for that

26 New Members

Mission Statement The mission of the Independent Insurance Agents of Kentucky is to be the preeminent advocate for Kentucky Independent Agents and support their businesses and professional development needs.

www.iiak.org | May/June 2015 | 3

Officers Michelle L. Love

Chair, Owensboro 270.926.2806 David M. Houk

Chair-Elect, Horse Cave 270.286.2724 Chip Atkins Vice Chair, Louisville 502.585.3600 James D. England, AAI

Treasurer, Pikeville 606.437.7361 Stephen R. Kinkade, CPCU, AAI

National Director, Leitchf ield 270.259.5465 John Funkhouser, CIC, CWCA

Immediate Past Chair, Danville 859.236.5922

Directors Allen J. Crawford, CIC, CSRM

Somerset, 606.679.6311 Sharon B. Hill

Jamestown, 270.343.3144 Michael G. Johnson, CIC

Lexington, 859.233.1461 Aaron LaRue

Bardstown, 502.348.0050 Skip McGaw, CIC

Madisonville, 270.821.3122 Adam T. Murphy, CIC, CISR, CPIA

Cadiz, 270.522.9964 Crystal Reid, CIC

Paducah, 270.442.3533 Ray A. Robertson, CIC

Mt. Sterling, 859.498.3410

Staff Peggy P. Porter

President & CEO Crystal Brown

Administrative Assistant Katie M. Freshley

Education & Events Director Nikki S. Petrowski

Communications Director Tara T. Purvis

Marketing Director Kristie Weyer, CISR

Insurance Services Manager

4 | www.iiak.org | May/June 2015

Chair From the

I’ve just returned from spending several days in Washington DC with 18 IIAK representatives attending the 2015 Big “I” Legislative Conference. We visited our U.S. Senate and House members from Kentucky. We were able to thank them for their help in getting NARAB II and the Terrorism bill (TRIA) passed during this past legislative session and discussed other issues and concerns affecting our members and our industry. I believe our large presence helps remind our nation’s decision makers that independent insurance agents are involved in the legislative process.

It was very refreshing to attend these national meetings and bring along such a large group of Young Agents. We are fortunate to have Carolyn Reynolds from Reynolds Insurance in Berea serve on the National Young Agents Committee. I feel the future leaders of IIAK were part of our group and I can assure you we will be in good hands. This group is intelligent, engaged, involved and eager to serve and vital to the success and perpetuation of our association. Your current YAC Chair, Adam Murphy and YAC Chair-Elect, Neel Ford are both following in their fathers’ leadership footsteps in the association.

This group is also involved with the Kentucky Trusted Choice Big “I” National Championship on July 6th and 7th at Oxmoor Country Club in Louisville. This is a junior golf qualifier for 90 Kentucky golfers. Winners will advance to the National tournament held at Prairie Dunes Country Club in Hutchinson, Kansas from August 3-6. The Young Agents will be there, along with other IIAK representatives, helping promote our mission and spread the word to participants and spectators about Trusted Choice and our industry opportunities, all while promoting junior golf.

I also encourage you to attend, and send your agency staff, to the 2015 Big “I” Sales & Leadership Conference in Owensboro on June 17-18. Registrations are going well and I encourage you to make your plans quickly because you don’t want to miss this program! This two-day conference will be full of valuable professional development sessions and networking opportunities for seasoned agents, company representatives and young agents.

If you would like to be involved with our Young Agent Committee, please contact Katie Freshley at the IIAK office. I also heavily encourage agency principals to allow, and help pay for, your young agents to be involved in our association. It’s an investment that will pay dividends for years to come.

Thank you for allowing me to continue to serve you.

WHY WALK

WHEN YOU CAN SOAR?

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www.iiak.org | May/June 2015 | 5

DOI News

From the Commissioner

By: Sharon P. Clark

At the Department of Insurance, we value our relationship with agents and I was particularly pleased to learn that “young agents” would be the focus of this magazine’s issue. We welcome you to an important profession and look forward to working with you as you progress in your career.

Our staff includes many former agents, adjusters, claims representatives, etc., and I thought it would be interesting to ask some of them to offer advice for young agents. Here are a few of their thoughts: • Be open to the needs of your clients. It’s not all about the commission check!

• Know the market and keep up with current issues and trends. Understand what you are selling.

If you don’t, ask for help from sales or claims management.

• Educate yourself and then educate your clients.

When clients have a question, the agent is usually the first call. Customers will appreciate the peace of mind your answers will provide if you are knowledgeable and give reliable information. You are the face of the insurance company. Your clients should feel at ease with you and feel confident that they are prepared for the worst.

• Be willing to explain the basics of insurance.

Consumers need to know what a deductible is and understand the importance of selecting the level right for their situation. Explain what each coverage does (and does not) provide. Tell your clients about rental reimbursement coverage.

Understand the rating criteria used by each company you represent and be able to explain this in consumer-friendly terms. Be sure you have a clear understanding of no fault and be able to explain the pros and cons of filing a rejection.

• Understand the Department’s complaint process and the functions of the Consumer Protection division. For example, in order to investigate, the division needs a written complaint. An allegation made over the phone is not sufficient.

6 | www.iiak.org | May/June 2015

• Take responsibility for your own license. An eServices user account is the best tool to keep an eye on your license status. Check your information frequently for needed contact changes, continuing education credit, license renewal date, etc. Don’t depend on someone else to follow up on your license requirements.

• Be familiar with insurance laws – even if you are trained incorrectly, it is your license in jeopardy. If a procedure seems wrong, call the Department to verify.

• Don’t wait until the last minute to complete continuing education. Online courses are subject to technology glitches. If your continuing education is completed even one day late, by law it is still late.

• If something goes wrong, contact DOI. We have staff in place to help you with any issues.

As commissioner, I would echo that last point. Please think of us as your partners in providing quality service to your clients and contact us at any time.

We want you to be successful!

© 2013 SECURA Insurance

Let’s be there when they need that little push.

Loving every minute since 1900 Commercial • Personal • Farm-Ag • Specialty

www.iiak.org | May/June 2015 | 7

Education Calendar E&O: Risk Management Louisville • October 8

on - site class!

____________________________________________________________________________________ ABEN Webcasts - (http://iiak.aben.tv/) Below are the classes that will earn you CE credit. But don’t forget that there is also a vast selection of Personal Development classes available.

Annuity Basics and Where They Fit

Home Based Business Exposures

May 26 @ 12 pm EST June 11 @ 12 pm EST

June 25 @ 2 pm EST

Certificates of Insurance May 26 @ 10 am EST June 11 @ 10 am EST

Commercial Lines Claims That Cause Problems June 9 @ 10 am EST

How Insurance Agents Can Become Invincible to Lawsuits and Save Thousands in Taxes June 9 @ 10 am EST

Make the Wholesaler you BFF! May 19 @ 10 am EST June 16 @ 10 am EST

Commercial Property Endorsements That Can Make You Money!

National Flood Insurance Program: Updated through 2014

May 19 @ 2 pm EST July 21 @ 10 am EST

May 20 @ 10 am & 3 pm EST June 17 @ 10 am & 3 pm EST

Data Privacy Insurance

The New Health Age: The Future of Health Care in America

June 8 @ 1 pm EST

May 26 @ 10 am EST June 23 @ 10 am EST

Directors and Officers Liability Insurance

Personal Lines Claims That Cause Problems

June 9 @ 2 pm EST

May 21 @ 10 pm EST

Estate Planning Basics May 26 @ 2 pm EST June 11 @ 2 pm EST

Professional Ethics in the Insurance Industry June 12 @ 2 pm EST

For questions on any of these courses or IIAK’s education program, contact Katie Freshley at kfreshley@iiak.org or call 502-245-5432 8 | www.iiak.org | May/June 2015

Attracting & Retaining Young Talent Meeting the challenges to “get the best” Attracting young customer service representatives to the insurance industry is a challenge, but what most do not realize is that keeping the young professionals in the industry is the biggest challenge of all! The insurance industry has an enormous amount of opportunity to offer a young professional, and these opportunities are often overlooked.

Insurance is a growing industry that is fairly recession proof. The high retirement rate among baby boomers is causing a generation shift; this shift is driving a strong hiring environment by offering many opportunities for young professionals to start and grow within the industry. There are, however, three major challenges to meet when trying to get young professionals to join the insurance industry.

The first challenge The first challenge is educating the younger generation on what the insurance industry has to offer and what the opportunities are. It is ironic that most insurance professionals did not initially plan to work in the industry. Insurance agencies need to give young professionals a reason to choose insurance as their career path. Agencies need to recruit and educate young professionals about the industry by building relationships with university career centers and participating in their career fairs. Agencies also need to develop an active internship program as well as a full-time employee development program to train new hires on the insurance industry as a whole, and on the agency products, systems, workfows, and markets. These programs should be marketed to the young recruits during the university career fairs.

Once a talented, but inexperienced, person starts in the insurance industry, he or she can take continuing education classes to get up to speed on the technical side of the business. CSRs often start in the CISR program; later they can attend CIC classes for more advanced education.

Challenge #2 The second challenge is matching a person’s interpersonal skills to the right job. In order to reach his or her full potential, a person must be placed in

By: Annie Laurie Roberts, CISR

a position that requires his or her particular skills—the skills necessary to success.

Most people will like their job if they are good at it. A recruiter should first look for a person who is people-oriented, has a strong sense of customer service and possesses good communication skills. In addition, a good CSR should be a reliable source of information and be technologically savvy.

The greatest challenge The third and perhaps most important challenge of all is retaining the young professionals once they have entered the insurance industry. Loyalty, benefits, and retirement are no longer enough to keep employees. Most young professionals are ambitious, willing to learn, and easy to train; however, they want instant gratification. It is important for them to have a career path and goals set before them. They need to be constantly challenged, whether it is a task within the agency or continuing education. It is important to train new employees properly and give them all the necessary tools to succeed in their roles.

In addition, the younger, incoming generation has a completely different view of technology and workfows, and it is important for agencies to keep up with them and their knowledge of technology.

Agencies should listen to the young professionals’ ideas, and the young professionals should know that those ideas are valued. This will make them more willing to participate in the future and will help them feel that they are a part of a successful team. www.iiak.org | May/June 2015 | 9

employee development program should give them enough insight to know what avenue they think is best for them. The insurance industry has many different jobs and roles to offer an individual. From a customer service representative to an auditor, there is surely a role that will fit almost any person. With all the different opportunities available, insurance is a career that any young professional should consider.

An agency should try to get young professionals involved in various other projects within the agency.

Giving them responsibilities other than those in their job description will make them feel that they are needed. This responsibility may not be hard to implement, but it can be effective in improving job satisfaction.

Promoting continuing education is very important, Annie Laurie Roberts, CISR is a Commercial Lines Account Magager as is encouragement to join professional groups. at Fisher, Brown, Bottrell Insurance, Inc. in Jackson, Mississippi.

These groups will give the young professionals a network where they can meet many individuals on whom they will be able to rely as information sources. Insurance as an industry has strong community relationships, and young professionals want to be a part of that. It gives them that sense of community.

Finally, an agency should provide a positive, friendly, and professional environment where a young professional 800-226-3224 feels comfortable and is excited www.fcci-group.com to go to work.

Keeping up with the times As was mentioned above, a generational shift is occurring within the industry, and agencies need to be able to understand the differences in those generations. In my opinion, there are currently four different generations in the workplace, and there soon will be five. Generational differences can affect everything, including recruiting, building teams, dealing with change, motivating, managing, and maintaining and increasing productivity. Generational differences, relative to how people communicate, might create misunderstandings, high employee turnover, difficulty in attracting employees and gaining employee commitment.

Being aware of the differences can help individuals tailor their message for maximum effect, regardless of the task or relationship. An agency should maintain a balance among these different generations.

This balance will result in peer groups among employees within an agency that offer a strong sense of community. Good business is based on understanding others.

Many young professionals do not know what path they want to choose right out of college. Insurance internships and an 10 | www.iiak.org | May/June 2015

“Local presence is the key to FCCI’s claims resolution. I’m able to meet with our agents, policyholders and injured workers and help them through the claims process. Each claim is different, but in each one I listen to the customer’s or claimant’s issue and offer resolution that considers the entire scenario.

FCCI empowers me with decision making authority, and that allows me to build trusting relationships and to resolve issues fairly.”

Lisa Dalton, AIC Claim Specialist FCCI Insurance Group Midwest Region St. Louis, Missouri Now, let’s talk about your business.

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www.iiak.org | May/June 2015 | 11

The Key to Recruiting Millennials?

By: Jacquelyn Connelly Make Them Feel Special During a recent webinar, Applied Systems asked an audience of insurance agents whether they have a plan in place to attract and hire young talent. An overwhelming majority—83%—said no.

It’s a disappointing statistic given that in 15 years, as much as 50% of the current insurance workforce will retire.

“If you’re not paying attention to millennials, you should be,” said Christen Kelly, product marketing manager for Applied Systems, who moderated the webinar. “Each industry has to pass the baton from one generation to the next—ours is no different.”

Independent agents have been hearing for a long time that their industry has a great story to tell— they just need to tell it better. But industry leaders say laying out the status quo for Generation Y is not enough to even get their attention, let alone convince them to join the insurance industry.

“The perception among young professionals is that insurance is suited for the older workforce,” Kelly said.

“Historically speaking, when you mention the word ‘insurance,’ it turns people off,” agreed panelist Brooks Zeigler, a producer at Morris and Templeton Insurance Agency in Savannah, Ga. “Millennials have been conditioned by their parents and grandparents to roll their eyes.”

So what does a winning perpetuation strategy involve? According to Michael Howe, senior vice president of product management at Applied Systems, insurance agencies shouldn’t try to prove they’re a great place to work. Instead, they should focus on what needs to improve—and tell millennials their unique skill set will be crucial to future success.

“The agencies that adjust and alter the way they do business, the technology they bring, how they do marketing, how they do selling—they’re actually adjusting the way the agency works to fit the 12 | www.iiak.org | May/June 2015

millennial, not vice-versa,” Howe explains.

For example, a millennial producer might rely heavily on social media and mobile technology to generate leads. “Those are the tools that come naturally to them to find customers,” Howe says. “Back 10-15 years ago, there was no agency in the world that was finding new customers via social media. Today, you see it all the time—agencies bring in millennials and engage them with what they’re good at, and they leverage that as a strength.”

And that’s the key to attracting young talent: telling them they have something to offer that nobody else can bring to the table. Millennials don’t want to hear about what your business can do for them— they want to hear about what they can do for your business.

“You have to better communicate why the industry needs the unique skills and DNA of this generation,” Howe says.

“If you’re trying to pitch someone coming out of college to go work at the agency stuck in 1983, good luck with that. But if you can communicate to the person coming out of college, ‘Look, you’re the future and we’re changing our business to better suit your unique skills’—you’ve got their attention now.”

That’s because knowing they’ll be on the vanguard of where an industry needs to go—and that they’ll play a big role in making a difference for the business—is much more appealing than simply joining one they perceive as stodgy or boring.

“Put yourself in the shoes of someone coming right out of college,” Howe says. “You’re considering two pitches: ‘Come work in an industry where we’ve been doing it the same way for 25 years,’ or ‘We know we need to change, the business is really evolving and we need people like you to help us evolve into that new world.’

Which company would you join?”

Jacquelyn Connelly is IA senior editor.

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www.iiak.org | May/June 2015 | 13

Don’t Find Yourself Underwater Many people who are not in a flood plain think they are safe from floods and don’t consider obtaining flood insurance. Safe, that is, until they find themselves victims of a hurricane or heavy rains that cause flooding.

Many agents feel the same way, and consequently, there are some property owners who are unaware that flood insurance is available to protect them. But from an errors & omissions perspective, property owners need to know that coverage may be available—and possibly advisable—even when the property is not in an area at risk for flooding or there is no requirement by the lender to have a flood policy.

Hurricane Irene affected many properties that had not previously been damaged by high winds and flooding that result from hurricanes. Several states on the East Coast received damages of nearly $16 billion.

Some areas, such as Virginia, Washington D.C., Delaware, Maryland, New Jersey, New York and Vermont, experienced flooding and power outages for several days after the initial impact of Hurricane Irene.

In Vermont, one of the hardest-hit states, communities were without power and isolated because of the flooding that damaged bridges, roads and residential and commercial properties.

Many residents in these states did not have flood insurance, which may have assisted them in repairing or replacing the damage resulting from the flooding.

Flood insurance is provided through the National Flood Insurance Program, which Congress created in 1968 to help provide a way for property owners to financially protect themselves.

The NFIP offers flood insurance to homeowners, renters and business owners. It is administered by the Federal Emergency Management Agency, which works with several private property-casualty insurance companies to offer flood insurance to property owners and renters.

The coverages offered from carriers working with FEMA are the same, as are the available limits. The only differences from carrier to carrier are the rates,

By: Tracy Hopkins Shead

which are based upon many factors.

Insurance agents should be knowledgeable of the major types of flood policies offered through the NFIP. They should also be aware that NFIP policies have maximum limits for property and contents.

Because many properties today exceed the maximum limits of the NFIP policy, it may not be enough to just offer the NFIP policy. In some cases, a customer might need an excess flood policy, which can be available through the standard markets.

While the duty to recommend is not the standard of care in many states, it is important to note that, if it does become a factual question at trial, the jury deciding the outcome of the case will be comprised of citizens from the community that was devastated by the flood. Many will have had flood damage to their properties, or they will at least have friends and family who suffered losses. That means they are generally going to have a sympathetic ear for the plaintiff.

Unfortunately, once the flood loss has occurred and a homeowner or commercial property policy denies coverage, the property owner will look to the agent or broker and allege that flood insurance was not offered.

Too often, flood insurance is not offered by the agent or broker, unless the property is located in a flood plain and the lender has such a requirement. The agent or broker often does not offer every coverage to every client available in the marketplace.

But being proactive and using a checklist of coverages for homeowners, renters, condo owners or commercial clients with a place for the client to initial their acceptance or understanding that they are rejecting the coverage may assist in decreasing the number of these types of claims.

Tracy Hopkins Shead is an assistant vice president, claims and liability management, with Swiss Re Corporate Solutions. She handles claims against insurance professionals as a teleworker through the Overland Park, Kan., office.

For All That Matters

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Improving the Odds: Keys to Success for By: Adam Murphy, CIC, CISR, CPIA Young Producers “Tell me and I forget, Teach me and I may remember, Involve me and I learn” – Benjamin Franklin

As I look back and reflect on my own career as an insurance professional, this quote certainly holds true for me. I’ve been blessed to work in an agency environment that fully invested in my success and included me in all aspects of agency operations, not just sales activity. I’m certain that without the 360 approach to hands-on training & a commitment to my own professional development, I’d most likely find myself out of the industry or at least out of the agency business. I was 24 years old when I first started working in the agency and frankly, I didn’t have a clue what I was getting myself into! What was supposed to be a summer job, eventually turned into a career, and 11 years later I find myself poised to perpetuate our family’s two location agency footprint.

a success rate of 22%. The good news is, there’s hope. Agencies in the top 25% of the study had a success rate of up to 84%. If you haven’t read it already, I encourage all agency principals & sales managers to review the study. It outlines many critical success factors that contribute to higher producer success rates such as Specialization, Team Selling, Mentoring.& Sales Training to name a few.

In the meantime though, here are a few pointers that have ultimately helped me “make it” as a young producer:

I was lucky though; I was able to be brought along slow and work my way up from essentially a summer intern, to a Personal Lines CSR, & ultimately a Producer & Agency Manager. Most young producers, aren’t so fortunate. For many, there is an immediate expectation to generate sales and the time clock to validation starts ticking on day one. It’s critical that agencies fully commit to developing the young talent they bring into their firms. Likewise, new producers must be prepared to fully immerse themselves in the business and soak up all the knowledge they can as quickly as possible. If not, the costs are astounding.

In the recent Producer Recruiting & Development Study by Reagan Consulting, they surveyed over 562 firms from across the country ranging from small independents to large national brokers and found the average success rate of new producers actually “validated” was 56% over the past 5 years. On average it took those new producers 32 months to achieve validation. Those agencies on the bottom 25% of that study, only had 16 | www.iiak.org | May/June 2015

Education & Professional Development Our agency has always tried to encourage our people to achieve higher levels of education and expand their knowledge of our industry. The National Alliance is a great resource for obtaining professional designations and enabling you to

have a better understanding of our profession.

Designation programs such as the CISR, CIC, & CRM are all excellent ways to expand on your technical abilities as an insurance professional. In addition, formal sales training can be paramount for young producers that are new to the industry or that have never been exposed to one-on-one sales situations.

The National Alliance also provides the Dynamics of Selling workshop that teaches you how to prospect, qualify, & ultimately sell. Many insurance carriers also offer formalized sales training programs that incorporate the Dynamics of Selling materials.

Professional athletes & musicians spend thousands of hours and years of their lives honing their craft.

Shouldn’t we be doing the same?

people in my agency: My father Tim Murphy and former agency owner Bill Kearney. They have been consummate mentors to me. Always encouraging and always supportive. They made sure I was involved and engaged every step of the way; from taking me along on joint sales calls to making agency operational decisions, they always made sure I was involved and engaged. In my opinion, it is a must that every young producer have someone like that they can count on to celebrate success with and to encourage them when they stumble.

Mentors don’t have to come exclusively from inside the agency either. Look for other agents that have been successful and ask them how they did it. I guarantee they’ll be more than happy to share their story.

Get Involved in the Community One of the best things I’ve done for my career, and my own wellbeing for that matter, is getting involved in the local communities in which we operate. I’ve served, volunteered, and sat on boards at our local Chambers of Commerce, Young Professional Organization, Rotary Clubs, and Church to name a few. This is a great way to build relationships and expand your centers of influence. Successful people hangout with other successful people and you want to be a part of that if you’re going to be successful in our business. Make sure you do it for the right reasons but once you do, opportunities will eventually start coming your way. I once heard a local businessman that I truly admire say, “the dirty little secret about serving others is that often times you get back much more than you put in.” I absolutely believe this to be true.

Find a Mentor Without question, my career would have never gotten off the ground if it weren’t for two

Organization / Time Management If there’s one thing that all young producers must learn and establish right out of the gate, it’s effective time management & organizational skills. In a 2012 article for Property Casualty 360 entitled, “Why New Producers Fail”, Ken Fields of the renowned State Auto Pacesetter Program writes, “The personal freedom associated with outside sales is attractive to potential producers.

That freedom also is the No. 1 reason new producers fail”. He goes onto say, “Establishing solid time management skills needs to be a No. 1 priority for new producers. They need close, daily supervision and an initially structured environment www.iiak.org | May/June 2015 | 17

to develop these skills. The sink or swim approach to training new producers is one of the reasons so many fail.” No matter how you decide to organize your daily activities, it’s critical that you set goals and have a mechanism in place to record that activity and to keep yourself accountable.

Peer Groups Lastly, the benefits that I have received from being involved with the Young Agents of KY are immeasurable. Networking and building relationships with other young agents from across the state has been one of the most enjoyable parts of my career. It’s been a true pleasure to serve and learn from other young insurance professionals like Neel Ford, Eric Harden, an Ross Richey who come from some of the best agencies you’ll find anywhere. Those guys are the future leaders of our industry and it’s an honor to serve as Chairman of a committee so full of talented individuals.

In addition to all the great networking opportunities with other young professionals, being a part of Young Agents has also enabled us to solidify existing carrier relationships, obtain new carrier contracts, take advantage of educational opportunities, participate in discounted membership benefits and advocate on a state and national level on behalf of our industry. In April our Young Agent Committee was able to travel to Washington D.C. and meet with our elected leaders in Congress.

Where else would you get an opportunity to sit down with the Majority Leader of the Senate or a current Presidential Candidate and discuss the 18 | www.iiak.org | May/June 2015

issues affecting your business? Where else would you get to hear a panel of CEO’s from companies such as Liberty Mutual, The Hartford, CNA, and The Motorists Ins. Group address issues affecting our industry? Nowhere. Those are just a few of the benefits that being a part of Young Agents can provide.

In closing, I encourage every agency and every young agent to attend the upcoming Sales & Leadership Conference coming up on June 17th & 18th in Owensboro, KY at the new Owensboro Convention Center on the Riverfront. It will be a great opportunity to hear from Industry Leading IT Expert Steve Anderson and the Commissioner of Insurance Sharon Clark as well as play a little golf.

For more information please visit www.iiak.org or call the IIAK office at 1 (866) 426-4425. We look forward to seeing you then!

Adam Murphy is the current KY Young Agent chair and is the Agency Manager at Lake Barkley Insurance Agency in Cadiz.

He can be contacted at amurphy@lbinsurance.net.

www.iiak.org | May/June 2015 | 19

21 Insurance Sales Tips for Young or Inexperienced Insurance Agents By: John F. Carroll Selling insurance is different from selling everything else.

If you know a young insurance salesperson please pass this article along to them. And if you are one:

Insurance is one of the most expensive things people buy and they can’t see it, touch it, or hold it.

Follow these 21 tips to be an inexperienced but insanely successful insurance salesperson:

You’re selling ideas. You’re selling trust. You’re selling promises.

You’re selling yourself.

This is such a huge challenge that most insurance salespeople quit in the first 2 years and many agents are afraid to hire inexperienced salespeople.

I hate to see young producers fail and even more, I hate seeing agents miss out on the largest pool of cheap, passionate, and open-minded talent.

That’s why I created Insurance Splash. To help young insurance salespeople be successful and encourage hiring agents to consider young and inexperienced applicants.

1) Dress More Professionally Obviously, if you dress more professionally clients are more likely to take you seriously. I don’t need to convince you of that.

But when you’re the sharpest dressed person in the office your coworkers and your boss will take you more seriously and most importantly, you’ll take yourself more seriously!

Sometimes confidence comes from the outside in.

If you look the part everyone, including yourself, will start to believe it.

2) Avoid Using “Young” Slang Have you ever told a client or prospect that you were “all about” customer service?

Do you express agreement by saying things like, “Gotcha”, “Right on” or “For Sure”?

Don’t get me wrong, I believe in being yourself and not apologizing for it, but when you’re trying to sell, the more you speak like your prospect the better success you’ll have.

If your prospect doesn’t use those terms it’s harder to earn their trust when you do.

3) Find Common Ground Regardless your prospect’s age or background there’s always something you have in common. Find it.

Did you grow up in the same neighborhood?

Like the same baseball team? Shop at the same grocery store? Do you both love your family?

Ask questions and figure it out so you can focus on the commonalities and skip over the rest.

4) Ask Prospects About Their Kids If you’re trying to sell to someone much older than you, try to find out if they have a child or grandchild

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your age and ask a lot of questions about him or her.

You’ll prime their brain to think about their loved one. This makes your prospect more likely to buy from you since they would want someone else to do the same for their child.

Plus, while you may be young and inexperienced, if you’re more polished than their child you’ll come off as a real professional by comparison.

5) Reference Combined Experience Remind prospects that they’re not buying only from you.

“I passed my licensing exam 3 months ago and I’m so lucky because our office has over 45 years of insurance experience! In fact, every single policy I write is double-checked by the owner of the agency.”

If experience may be an issue for your prospect, make sure they know you’re up to your ears in it.

6) Learn From Experienced Coworkers Technology has created a very unusual situation in the business world.

It makes younger people think they’re smarter than they are.

As a tech guy myself, I know it’s hard to take advice from someone you just watched peck away at a keyboard to write a one sentence email.

But I also know more multi-millionaire insurance agents than almost anybody and I have found almost no correlation between their tech abilities and their success.

That’ll change for your generation, but learn everything you can from those who’ve been around.

7) Be Enthusiastic Have you ever seen an infomercial without enthusiastic people?

Everybody likes enthusiasm and as a young salesman, you can display unbridled enthusiasm without looking like an idiot.

People will just think you’re young and have a lot of energy.

They’ll like it. And they’ll buy into it.

8) Follow the Markets If you want to relate to a more mature and professional audience, follow the stock market.

You don’t have to be an expert, just know enough to ask questions that don’t make you sound stupid.

After you’ve qualified someone by asking if they follow the market, ask something like, “What sectors do you think are going to do the best in the next quarter?”

And don’t turn into one of those Cramer wannabees who think they always know the sleeper stock. It’ll make you look inexperienced to someone who has followed the market for years.

9) Listen to Your Phone Voice Record your voice on the phone while talking to some clients. Do you sound smart? Do you sound confident? Do you sound like a little kid who picked up the phone in Daddy’s office?

10) Sell to Other Young People There’s one group you have a huge advantage with in selling - other young people!

And guess what: there’s millions of them!

Millions buying homes, millions getting married, starting businesses, having kids, buying expensive stuff! Go get them!

11) Don’t Ignore Sales Fundamentals I’m sorry to burst your bubble, but Facebook, Twitter, Text Messages and QR Codes don’t sell insurance. People do.

Of course there are tools that can make things easier and more effective for agents, but social media will never replace the basics.

Read “How To Win Friends and Influence People” by Dale Carnegie. It was written in 1936 and teaches you how Teddy Roosevelt, Henry Ford, www.iiak.org | May/June 2015 | 21

Benjamin Franklin and a lot of other old people become successful long before Mark Zuckerburg.

Everything in that book is just as relevant today as it was 75 years ago.

12) Speak Less, Listen More As a young or inexperienced salesperson, there’s always an impulse to demonstrate your knowledge.

You want prospects to see you know your stuff because you’re a bit worried about it yourself.

The more you talk or explain things they didn’t ask about, the more obvious it is how much you don’t know.

And the more likely you’ll elicit a question you can’t answer!

going to have to do it too.

16) Become a Marketer You can’t rely on the agency you work for or the carrier(s) you’re selling for to come up with and execute all the marketing ideas.

And you also shouldn’t depend on only one source for all your leads. Develop leads from multiple sources: • In-person networking • Referrals • Social media • Agency website • Internet leads • Keeping up with insurance marketing.

13) Bring Up Age First You’re not just a salesperson, you are a marketer.

The best way to avoid an objection is to bring it up and overcome it before the prospect has a chance to.

Make a joke about your inexperience and be open about it.

Once you’ve brought it up, you have the excuse to explain why your prospect shouldn’t be concerned. (you’re well-trained, you’re licensed, you ask questions when you don’t know answers, etc) 14) Be Better Prepared If your inexperience makes you feel inadequate as a salesperson then find a way to get around it.

Work harder, work longer, learn more about your products. Have an answer for every possible question.

Read books about sales, listen to sales audio tapes, go to seminars about sales.

Get in front of a mirror, a colleague, or a friend and practice your sales scripts, practice your rebuttals, your closes.

Nothing comes to you. Prepare yourself and go get it.

15) Expect to Live In the Trenches Selling insurance is hard, hard work.

Insurance agents you see with big houses and nice cars playing golf around the world didn’t get there overnight.

They sold and sold and sold. And sold more.

It’s the only way to become super successful in this business and if you want to be successful you’re 22 | www.iiak.org | May/June 2015

17) Don’t Spew Features When you’re new to selling it’s common to focus on product features rather than benefits.

At some point you learned all 10 features of a product and you’re anxious to prove your knowledge by telling customers about all 10 of them.

Unfortunately they don’t care about all of them.

There’s maybe one or two features that interest them and you’re better off asking questions to identify the client’s needs so you can explain how your products will satisfy those needs than trying to explain everything.

Don’t spew features on your clients; identify their needs and satisfy them.

18) Don’t Use Jargon Nothing says “bad salesperson” more than using jargon to someone that doesn’t understand it.

There is no better way to show prospects you don’t give a %&#! about them than by using terminology no one outside your industry should know!

When you’re new, you have a unique advantage of being able to relate to clients as an outsider. People will actually relate better to you if they feel like you’re still on their side. You haven’t crossed over to the “insurance salesman” side.

Don’t use jargon, it only makes you look like you’re hiding something.

19) Recognize and Act on Buying Signals I’ve witnessed a lot of new salespeople shoot themselves in the foot because they didn’t know when to shut up.

When someone is ready to buy, let them do it.

If it’s that important to explain everything then go ahead and do it - after you get their signature and a check!

20) Don’t Sell on Price I get it - people are shopping on price, they’re comparing on price, and they’re buying on price.

You buy everything on price too, right? Wrong.

Here’s the bottom line: If you honestly believe people only buy on price then quit today. You’re in the wrong business and the industry doesn’t need you.

We’re not going to survive with a bunch of price-checkers. The entire industry will suffer if you don’t get out now.

21) Embrace Your Youth Be crazy. Be reckless. Be passionate. Be young!

No one ever had a mid-life crisis and became an insurance salesman. Don’t be afraid to breathe some life into this business!

Smile. Laugh. Be fun.

John F. Carroll is the founder and CEO of InsuranceSplash.

For years, John has consulted insurance agencies with internet marketing and sales strategy and he is dedicated to making insurance marketing easy and effective for all insurance agents.

Welcome to Our Backyard!

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www.iiak.org | May/June 2015 | 23

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Train Your Brain presented by

Robb Zbierski Your profession demands that you remember a wealth of knowledge including client information, market data, presentations and most importantly, NAMES! A simple slip of the mind can result in thousands of dollars in lost sales or credibility.

In Robb’s program, we’ll start by understanding how your memory works and how it may have worked against you up until now. Through this interactive, fun and informative session you’ll be blown away at what you can recall and how easy it is to train your memory for improved short term and long term recall!

Creating a Customer Experience Your Clients Can Expect Today presented by

Steve Anderson Providing good customer service is no longer good enough. Today’s consumers are changing fast. Their expectations of what makes an excellent customer experience are changing even more quickly. Successful agencies that look toward the future will be adapting and changing as fast or faster than the consumers they serve. This program provides a roadmap for what it takes to create an experience that will keep customers coming back.

DOI News presented by

Commissioner Sharon Clark A favorite of our association, Department of Insurance Commissioner Sharon Clark will present the current issues affecting our industry on a state and national level.

Register today at www.iiak.org

Already registered?

Download the Grupio app from your app store and search for IIAK

Issues, Advocacy & Leadership panel discussion

Enjoy a discussion moderated by Dustin Miller from Government Stratgies as IIAK Chair Michelle Love, Rep. Jeff Greer, Rep. Bart Rowland, Arlington Roe’s Donna Schlie, and Jeremy Terry, AINS, CPIA of KEMI to answer your burning industry-related questions. www.iiak.org | May/June 2015 | 25

IIAK would like to welcome our newest members:

Thank You 2015 Industry Partners Premier

Agency Member Franklin Insurance Agency, Inc. Frankfort

Shepherd Insurance Louisville

Platinum

Sky Insurance Bowling Green

Associate Member Iroquois Midwest, Inc.

An insurance network which provides independent insurance agents throughout much of the USA with property, casualty, and liability products.

Hallmark Insurance Company

Hallmark Insurance Company’s Personal Line Segment is dedicated to providing our appointed insurance agents the tools and products to better educate their clients and serve their ever-changing needs for auto and renters insurance.

Gold Acuity Bolton & Company Grange Insurance KEMI Progressive Risk Placement Services Silver Amerisafe Bailey Special Risks, Inc. Kentucky National Insurance Company Keystone Insurers Group Motorists Insurance Group Secura Insurance State Auto Insurance Company

With 60+ years of experience in our niche markets, Markel Specialty develops and underwrites specialty insurance products to address the unique risks these organizations face.

Bronze Auto-Owners Insurance Company Countryway Insurance Company FCCI Insurance Group Kentucky Agents Finance Company KESA KY Associated General Contractors Midwestern Insurance Alliance Inc. Summit Westfield Insurance

For information regarding IIAK membership, contact Tara Purvis, Marketing Director 502-245-5432 • tpurvis@iiak.org

Sterling Burns & Wilcox Ltd Columbia Insurance Group InsurBanc

Markel Specialty

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3 Big Benefits of a Virtual Agency By: Steve Anderson Technology has significantly improved the ability of people to connect and work from anywhere.

This easy access to information and services allows insurance organizations to redefine the concept of “work” and where it happens.

Online access to agency management systems, voice over IP (VoIP) telephone communications systems, instant messaging, and video calls are just a few of the tools that allow employees to be able to work from literally anywhere.

The ability for an employee to work without the necessity of driving to an office has some substantial benefits for almost any insurance organization.

There are at least three benefits from adding virtual options.

1. Finding and Retaining key talent Today’s college graduates have grown up in a world where they work wherever they happen to be. They might use the corner coffee shop or one of the new “networking space” as their office for the day. They are just not as constrained by a place as some of us that have been around longer.

Adding a virtual option for agency staff may just give you that edge you need to recruit the best and brightest.

I recently received the following email from an insurance agent: “We have a staff of 5 and 2 gave notice that they were quitting last week. One, who is very replaceable, is now gone. The other, who is a crucial member of our staff, will stay until the end of the month before they have to move away.

We have a lot going on right now and do not have the time to train two new employees while absorbing the work of the departing ones.

We asked the crucial employee if she’d be willing to work from home after they move, and she is on board. She’s an incredible CSR, but we are not really sure how to do it. Not wanting to re-invent the wheel, I thought I’d check with you to see if you had any advice — maybe a sample job description, etc.”

This agency wanted to retain that one key employee. Offering the ability for the employee to work remotely helps the agency by substantially reducing the expense of finding and training a new person.

This is simply one example of how being open to virtual options helps improve the agency’s bottom line.

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2. Higher productivity Studies continue to show that — for the right person — remote employees are more productive.

Some of the productivity benefits we hear from insurance organizations include:

offer insurance organizations the ability to hire experienced and well-trained virtual staff on a full or part-time basis.

Huge increase in employee attendance rates.

Zero commute time – higher employee morale.

Insurance organizations that are embracing the virtual concept are experiencing improvements in employee morale, agency productivity, and customer service satisfaction.

Almost no one takes a “sick day” unless they are REALLY sick.

Isn’t it time your agency embraced these options?

We are not constantly interrupted in our workday by insurance company marketing reps wandering in.

Steve Anderson provides information to insurance agents about how they can use technology to increase revenue and/or reduce expenses. Join us at the Big “I” Sales & Leadership Conference to hear Steve present “Creating a Customer Experience Your Clients Can Expect Today”

No office politics to deal with really.

We meet once a month – so wasted time in meetings is reduced.

These benefits help everyone get done what needs to be done quicker leading to a much better client experience.

3. Better customer service Because insurance organizations are able to retain their top talent and the most experienced customer service staff, client satisfaction increases. Some comments include: We have been able to attract excellent experienced staff because we allow everyone to work from home – giving our clients the insurance-savvy agents he or she desire.

While there are employment issues that need to be considered and managed, a virtual staff allows the organization to offer extended opportunities for clients to contact you when they want, not just when your “office” is open.

COMMITMENT A PROMISE WE DON’T TAKE LIGHTLY

“With 37 years in the bond business, I know our response time can be the difference between our agent writing a new piece of business or not. I don’t go home at night until every phone call and email has been answered. ”

Steve Kuykendall Surety Manager

Younger people coming into the industry have a different concept of “work.” When they work, where they work, how they work, what they call “work,” and why they work can be very different than what an older agency owner experienced.

Attracting and retaining these talented people requires a new idea of “the office.”

And, as baby boomers begin to retire, they often want to (or need to) continue working — but at a reduced pace. Organizations like Work at Home Vintage Employees

Managing General Agency Since 1920

800.538.4796

jmwilson.com

Brokerage/Professional Liability Property & Casualty • Personal Lines • Surety

Commercial Transportation • Premium Finance

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We’re taking our show on the road!

Join us at these Regional Meetings in a town near you!

EACH meeting there will be a drawing for a 7-inch Kindle Fire HD Date Tuesday, August 18 Wednesday, August 19 Wednesday, September 16 Thursday, September 17

City Paducah Bowling Green Florence Louisville

Location Western Kentucky Community & Technical College Holiday Inn - University Plaza Hilton Cincinnati Airport Hilton Garden Inn Northeast

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Relax...

You understand that you’ll need to structure your professional emails differently than you would a text or a tweet. But unless you had the good fortune to take an “Email Etiquette 101” course in college, you might be unsure of what, exactly, you should and shouldn’t do before clicking “send.” Let’s clear up the cyber-confusion with a few tips for effective email communication:

You’ve offered each of your clients your email carefully before sending it. It takes a personal umbrellaRead onlypolicy. a few seconds to glance back over what you’ve written before clicking “send”—but those few seconds could save you a lot of grief! Specifically, make sure that you’ve entered the correct email addresses.

Confirm that you’ve included all of the necessary information and proactively answered any questions that readers might have. Look for and correct any typos.

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

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Classifieds Acquisitions

Established Louisville agency interested in acquiring insurance agencies in Jefferson and surrounding counties. If you are interested in selling, merging, or need assistance with perpetuation, we would like to talk with you in confidence. Call R. Alex Rankin, CPCU or Steve B. Thompson, CPCU, at Sterling G. Thompson, Co. at 502-585-3277

DO YOU FOLLOW IIAK ON

SOCIAL MEDIA

NO? THEN YOU ’ RE MISSING OUT ON IMPORTANT NEWS &

EVENTS!

Find all our links at our homepage: www.iiak.org Or, use your smartphone to scan the QR codes below:

Looking for Producers

Independent with top best markets looking to expand presence in Jefferson, Oldham or Shelby counties. Wanting Personal lines, Producer or book of business to move or purchase. All arrangements possible, in strict confidence. Please send inquiries to Turner Insurance Agency, 2460 Shelbyville Road, Shelbyville, KY 40065 or call Kurt Turner, CPCU at 502-633-6060.

IIAK

Young Agents

Commercial Property/ Casualty Producer/Partner

Louisville Insurance LLC has producer opportunities with flexible compensation plans while offering ownership in book of business produced. Confidentiality provided to all interested parties. Contact Glenn Pike at 502-473-5454 or glenn@louisvilleins.com.

Ad Index Acuity Arlington/Roe Bolton & Company FCCI Guard Insurance J.M. Wilson Kentucky Retail Federation KESA RLI Personal Umbrella Secura Summit Consulting Swiss Re Professional Liability West Bend Mutual Insurance

15 13 OBC 10 23 28 19 IFC 30 7 29 5 11

For classified ads or to advertise in the Kentucky IA, contact: Nikki Petrowski, Communications Director, 502-245-5432 • npetrowski@iiak.org

Cost: Free Learn more: https://cloudmagic.com/ “CloudMagic is a Webby’s People award winning email App which has client for iOS as well as Android. CloudMagic works with all the popular email service providers such as Gmail, Yahoo Mail, Hotmail, Microsoft Exchange, Outlook, Office 365, iCloud, etc. You can manage all your services from a single interface of CloudMagic.

CloudMagic also has integration with various apps such as Evernote, OneNote, Pocket, Salesforce.com, MailChimp, etc.

You can directly save any email to any of these apps. a very fast and reliable app. www.iiak.org | May/June 2015 | 31

Before your clients hit the road, call us!

We have the fastest quotes on two wheels!

Quotes are available on-line at www.boltonmga.com (click on-line rating) and are quoted in real-time. Compare our new competitive rates and remember, we have no minimum volume requirements.

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2400 Waterfront Plaza • 325 West Main Street • Louisville, Kentucky 40202 Telephone 502 583.8361 • 800 292.6597 • Fax 502 584.6131 • www.boltonmga.com