May 2017

Are

DISRUPTORS

Turning the Industry

UPSIDE DOWN? Rewrite the Digital Insurance Narrative

Guide to

Marijuana Use & Insurance

MAY 2017

INSIGHT

Editor & Advertising - Deann French | Graphic Design - Rachel Romines

the journal of trusted choice independent insurance agents of illinois

May 2017

CONTENTS 13

Insurance Industry Legislative Day

By Chris Davis Ultimate Guide to Marijuana Use & Insurance

By Nick DiUlio

22

28 9 Trusted Choice

Are Disruptors Turning the Industry Upside Down?

By Deann French Disrupting the Disruptor

By Ryan Hanley

28 21

e-Insight

In This Issue

7 11 32 33 42

39 40 41

Industry Associate News

24

The “No Sale” Signals - Why Customers Won’t Buy From You

By John Graham

Regular Features President’s Message

16

Staff Profile Industry News People in the News

IIA of Illinois News Classifieds

INSIGHT

Insight is the official publication of the Independent Insurance Agents

of Illinois (IIA of Illinois). The magazine is published monthly for the

members of the IIA of Illinois, with the office located at 4360 Wabash Avenue, Springfield, Illinois 62711-7009; Consumer Website: www.ChooseIndependent.com. The IIA of Illinois welcomes letters discussing concerns of the insurance industry, articles, editorials, other matters of interest to the membership. The editor reserves the right to edit and select submissions for publication. Address submissions for review to dfrench@iiaofil.org.

2009 • 2010 • 2011 • 2012 2013 • 2014 • 2015 • 2016

info@iiaofil.org | www.iiaofil.org | (800) 628-6436 or (217) 793-6660 | Fax: (217) 793-6744 The Independent Insurance Agents of Illinois (IIA of IL) has been providing members with a sustainable competitive advantage since 1899.

ADVERTISERS

Board of Directors

Executive Committee

Chairman of the Board | Cindy K. Jackman, CIC, CISR (618) 457-0471 | cindy@ciains.net President | Rick Sutton (309) 692-8544 | ricks@was-irp.com President-Elect | Ryan Hite (309) 688-7316 | ryan.hite@eaglerockins.com Vice President | Patrick Muldowney (312) 595-7192 | patrick.muldowney@alliant.com

26

ABRC

10

AMALGAMATED INSURANCE UNDERWRITERS

41

AMERISAFE

43

AMTRUST

44

APPLIED UNDERWRITERS

Secretary/Treasurer | Bennie Jones (312) 960-6200 | bjones@rmsoa.com

20

ARLINGTON/ROE

IIABA State National Director Gregory A. Sandrock, CIC, AFIS (815) 438-3923 | sanins@essex1.com

26

BERKSHIRE HATHAWAY GUARD INS. GROUP

14

CHICAGOLAND SIA

30

EBRM

8

EMC

5

IPRF

Regional Directors Region 1 | Lisa Lukens (618) 942-2556 | salibainsurance@gmail.com Region 2 | Bill Wirth (618) 939-6368 | billw@wirthagency.com Region 3 | Jay Peterson, AFIS, LUTCF (217) 935-6605 | jay@petersoninsuranceciag.com Region 4 | Darlene McGehee, CIC (815) 432-2404 | dmcgehee@iroquoisins.com

19

JM WILSON

36

MICHIGAN COMMERCIAL INSURANCE

Region 5 | Patrick Taphorn, CIC, CSRM (309) 347-2177 | ptaphorn@unland.com

12

MOTORISTS INSURANCE GROUP

Region 6 | Rob Messer (815) 459-3300 | rmesser@marketfinancialgrp.com

34

NATIONAL GENERAL/STANDARD PROPERTY & CASUALTY

Region 7 | Michael-Charles Hilson (708) 333-3378 | mhilson@gbgins.com Region 8 | Gerald K. Harris, CIC (312) 831-4650 | geraldharris@insurancessystems.com Region 9 | Thomas Evans, Jr. (630) 855-9876 | tevans@bigonline.net Region 10 | Kevin Lesch (630) 830-3232 | klesch@bigonline.net At-Large Director | George Daly (708) 845-3311 | george.daly@thehortongroup.com At-Large Director | Ken Samson, CIC (847) 291-0660 | kens@dascoins.com At-Large Director | Thomas J. Walsh, CPCU, CIC, AAI, CRPC (630) 737-0300 | tjw@twgroupinc.com

Committee Chairs Agency/Company Relations | Timothy Nicoud, Jr. (217) 546-6900 | tim_jr@nicoudinsurance.com Budget & Finance | Bennie Jones (312) 960-6200 | bjones@rmsoa.com Education | Lindsey Polzin, CIC (630) 655-9112 | lindseyp@winesergi.com Government Relations | William Lawrence, CIC (309) 827-0007 | blawrence@plrinsurance.com Planning & Coordination | Bill Kelso (217) 753-2500 | bill.kelso@spriska.com Trusted Choice | Keith Verisario (847) 699-4040 | kmv@allsecurity.com

6

PEKIN INSURANCE

34

PREFERRED PROPERTY PROGRAM

24

QUARTZ

2

SECURA

31

SOCIETY

31

THE IMT GROUP

15

TRANSCOM GENERAL

27

WEST BEND MUTUAL

IIA of Illinois Staff Education Director, CRM Manager Shannon Churchill - ext. 3004 - schurchill@iiaofil.org Vice President of Government Relations Chris Davis - ext. 3002 - cdavis@iiaofil.org Communications Assistant Kirsten Davis - ext. 3023 - kdavis@iiaofil.org Vice President of Communications Deann French - ext. 3022 - dfrench@iiaofil.org Products & Services Administrator Melissa Hilgendorf, CIC, CISR - ext. 3012 - mhilgendorf.indep12@insuremail.net Education Coordinator & Tradeshow Admin Tami Hubbell - ext. 3016 - thubbell@iiaofil.org Director of Human Resources/Board Admin Jennifer Jacobs - ext. 3013 - jjacobs@iiaofil.org Sr. Vice President/Chief Financial Officer Mark Kuchar - ext. 3015 - mkuchar@iiaofil.org

Chief Executive Officer Phil Lackman - ext. 3005 - plackman@iiaofil.org Central/Southern Marketing Representative Lori Mahorney - (217) 415-7550 - lmahorney@iiaofil.org Vice President, Agents Insurance Services Brian McSherry, CIC - ext. 3018 - bmcsherry@iiaofil.org Digital Communications/Web Administrator Rachel Romines - ext. 3024 - rromines@iiaofil.org Director of Membership Services Tom Ross, CRIS, CPIA - ext. 3003 - tross@iiaofil.org Accounting Services Administrator Debbie Trudeau - ext. 3006 - dtrudeau@iiaofil.org Products & Services Administrator Janet White, CISR - ext. 3010 - jwhite.indep12@insuremail.net Sr. Products & Services Administrator Carol Wilson, CPIA - ext. 3011 - cwilson.indep12@insuremail.net

Young Agents | Allyson Padilla (618) 393-2195 | allyson@blanksinsurance.com InsurPAC | Thomas J. Walsh, CPCU, CIC, AAI, CRPC (630) 737-0300 | tjw@twgroupinc.com IIAPAC | George Daly (708) 845-3311 | george.daly@thehortongroup.com

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AUTO

•

HOME

•

LIFE

•

BUSINESS

PRESIDENT'S MESSAGE

Rick Sutton - IIA of Illinois President - (309) 692-8544 - ricks@was-irp.com

Spring is here and this is my favorite time of the year.

Flowers are blooming, grass is green, and birds are back.

Turkey season is here, mushrooms are popping and the crappie are biting. Life is good!

Speaking of Life is Good; Sandie and I are blessed to have a wonderful and healthy family. During the Easter season we were able to see all the kids, grandkids and my 98 year old mother. Palm Sunday we had a wonderful dinner in East Peoria at our son’s home with half the family and then on Easter Sunday we had another wonderful dinner at our daughter and son in law’s home in Eagle Colorado with the other half. We are so thankful for a happy and healthy family.

By the time you read this we may have already completed Federal Legislative Day in Washington, DC. This is an important time in our country’s future and agents from all areas of the county will have lobbied for protect your future. If you did not attend this year’s event, please consider attending next year.

Deann (French, editor) told me the focus of this issue would be “Are Disruptors Turning the Industry Upside Down.” We all know there are disruptors in the Industry whether it is driverless cars, flood insurance, or health care. I have tried to think about how “Disruptors” have changed or had an effect on my life both personally and professionally. Disruptions have made me a better person both personally and professionally by keeping a positive attitude, focusing on the issue and being innovative. No disruptions are insurmountable. Disruption and Innovation are synonymous.

“If at first the idea is not absurd, then there will be no hope for it.” Albert Einstein.

Get involved, be happy and stay safe!

June 2, 2017 is an important day for all members of IIA. This is your official IIA Day of Giving. Several events are scheduled throughout the state. It is not too late to get involved. Please go to the IIA website and click Statewide Day of Giving to see how you can get involved. The web site tells how you can get plan to participate in this day.

Rachel Romines is the event coordinator. She can be reached at rromines@iiaofil.org. Please contact her and get something scheduled. We would like all the Regions in the state to be represented. Remember, no project is too small.

Chairman of the Board, Cindy Jackman, Jon Jackman, Sandie Sutton and Rick Sutton at the St. Jude Tribute to the Stars Gala

may 2017

insight

7

Provide more than protection for your clients. Offer them 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 ®.

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What Members Need to Know

Trusted Choice, TrustedChoice.com and Agency Nation

By Dave Hulcher Like a good neighbor…”, “You’re in good hands…”, “You can save 15% in 15 minutes” - Each year exclusive and direct carriers spend billions in advertising and branding initiatives vying for a bigger share of the over $550B property/ casualty marketplace. It’s been almost 15 years since the Big “I” national association endeavored to combat the marketing efforts of exclusive and direct carriers by creating the Trusted Choice consumer brand with the goal of capturing a greater share of the personal lines marketplace. Today, nearly 75 carriers partner with Trusted Choice to promote the brand and every member is able to take advantage of the resources Trusted Choice offers, including Trustedchoice.com and Agency Nation.

This article will highlight some of the latest valuable resources from Trusted Choice from which all members can benefit.

• Digital Review of Websites/Social Media: Ever wonder how your website stacks up? For no cost the Trusted Choice team will perform a thorough review of your agency’s website, looking at key factors that influence visibility and usability. From search engine optimization (SEO) and blogs, to broken links and website analytics tools, the review will surely be eye-opening for your agency. Contact Madeleine.Stern@iiaba.net or Demarcus.Johnson@iiaba.net.

• Advertising materials: To promote your agency, members have access to a library of professionally produced and consumer-tested marketing and advertising materials.

These are completely customizable and include print ads, direct mail templates, postcards, and television, radio and website ads. Be sure to check out the “Why Use a Trusted Choice Agent?” taggable video which is a great addition to any agents website. It is now also available in Spanish as well. Visit www.trustedchoice.com/agents.

• Graphic Design Services: Bringing big company resources to small town agents, Trusted Choice announced that members now have access to a full-time graphic designer on staff that stands ready to customize marketing materials for your agency. Reach out directly to Madeleine Stern at Madeleine.Stern@iiaba.net to learn more.

• Marketing Reimbursement Program (Co-op): As an incentive for members to incorporate the Trusted Choice logo, the Big “I” will reimburse a portion of the expense to co-brand advertising and marketing materials and in creating/updating a digital presence. Specifically, may 2017

members have the potential to get up to $750 (50% of invoice amount) for advertising collateral material and up to $500 for a digital upgrade (websites, social media, or mobile app) using a web developer or vendor. Contact Trusted.Choice@iiaba.net for more information on the national reimbursement program and the application.

• TrustedChoice.com: A turn-key solution for members interested in generating more online customers. Having a digital presence can be daunting TrustedChoice.com has figured out the recipe for member agent search optimization generating opportunities for both personal and commercial referrals. Call (855)-372-0070 to learn more.

• Sales and Marketing Training: Trusted Choice has created training called “The Power of 30 Seconds” to improve the inbound sales skills of agency staff. Other training includes “Advertising 101” which provides stepby-step instruction for creating an advertising plan. It’s all available by logging into www.trustedchoice.com/agents.

• Agency Nation: Looking for information on how to improve your agency’s digital marketing efforts?

Trustedchoice.com has created www.agencynation.com which has articles, videos, and podcasts to help member agents connect with new customers and grow their businesses. There is both free and subscription services to marketing and sales education.

• Trusted Choice Disaster Relief Fund: The fund was established to assist agency staff and members of the community who have suffered losses due to natural and man-made disasters. It provides a vehicle for cash grants to help families get back on their feet.

Go to www.iiaofil.org/TrustedChoice/DisasterReliefFund for details.

Take some time to review these resources available to your agency and be sure to share this article with staff. From the free marketing resources available from Trusted Choice, to the online referrals of TrustedChoice.com and Agency Nation’s content to help you grow the agency efficiently through digital marketing – I guarantee you will find value.

Dave Hulcher, is Executive Director of the Kansas Association of Insurance Agents. He can be reached at (800)229-7048.

insight

9

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INDUSTRY

Tech Can Bridge the Insurance Workforce Gap According to the Bureau of Labor Statistics, the insurance industry will have an estimated 400,000 job openings by the year 2020. And nearly 50% of the industry’s workforce is older than 45, with only 27% under age 35 in line to replace them.

Those statistics will play out in smaller agencies traditionally staffed by producers, customer service representatives, account executives and managers. In the next 10 years, many of these employees will retire, and agencies will be fighting to fill positions left empty by the oversized baby boomer bubble.

By John Tiene

Armed with a new arsenal of technology tools, tech-savvy agencies will not only increase customer loyalty, but also recruit and retain millennial employees for insurance jobs and careers. New high-tech job functions created by big data analytics are attracting candidates with backgrounds in science, technology, engineering and mathematics.

The bottom line: Fewer producers and personnel will result in less revenue and diminished customer service - which could drive existing clients away.

Agencies are using mobility, social media like LinkedIn, and job boards like Indeed, Monster and CareerBuilder to find “passive” talent - candidates who aren’t actively looking for a job because they already have one. According to Vertafore, millennials are more than twice as likely as other generations to be recruited via LinkedIn or other social media. Agencies that leverage social networks to hire millennials demonstrate a forward-thinking approach that appeals to millennials as employees.

The solution to this looming crisis: Millennials, who make up 25% of the U.S. workforce today and will comprise 50% of the global workforce by 2020, according to BLS. The Pew Research Center reports that millennials value job enjoyment above compensation, followed by job security and flexibility. They volunteer and align with social causes. They are the most connected generation in history, spending an average of 14.5 hours a week on their smartphones, according to Experian Marketing Services.

Such efforts may finally be paying off. When Vertafore surveyed insurance professionals ages 19-35, more than 90% said insurance careers satisfy job satisfaction criteria including work-life balance, career development opportunities and financial stability. Eighty-one percent said they plan to remain in the industry for as long as possible, and 70% would recommend an insurance career to their friends - results that suggest the best recruiting strategy may involve millennials themselves.

Misunderstood as job-hoppers, millennials want to understand their career path, even though it may take a decade or more to achieve their goals. They also want to be engaged and understand how their work impacts clients, their employers and the world in general. The traditionally stable insurance industry is suited for millennials who crave job security, and the opportunities it provides for working directly with clients to mitigate business and personal risk appeals to their desire to help others.

Independent agencies that embrace technology to connect with clients, operate more efficiently and recruit millennials will win the talent battle and be ready for whatever the future brings.

John Tiene is CEO of Agency Network Exchange, an alliance for independent insurance agents in the midAtlantic region, headquartered in Monmouth Junction, New Jersey.

Unfortunately, the insurance industry is fighting an image problem: The stereotype pencil-pushing, gray-suited, 9-to-5 insurance salesman is not attractive to millennials.

Eight of 10 have limited knowledge and understanding of the employment opportunities available in insurance, according to The Institutes.

Technology can help bridge the gap. The insurance industry is finally catching up to the rest of the business world in this realm: Successful agents are using cloudbased computing and portals to interact with clients more efficiently. Big data analytics enable agents to mine for new business and cross-sell products to deepen customer relationships.

may 2017

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On Tuesday, March 29, over 200 people attended Insurance Industry Legislative Day in Springfield. The attendees heard from Illinois Department of Insurance Director Jennifer Hammer regarding her Insurance Industry Innovation Act initiative, in addition to some staff developments at the department. Attendees also heard an engaging presentation from Wisconsin Insurance Commissioner, and NAIC President, Ted Nickel who spoke of the challenges of leading a diverse organization of individuals and priorities. He discussed the NAIC’s focus on Cyber Security standards, and the challenges of balancing policy that may apply to both large companies and very small agencies. The lunch program also featured an introduction of Senator John Mulroe (D-Chicago), the new Chair of the Senate Insurance Committee. Additionally, Senator Bill Haine (D-Chicago) was recognized as “Legislator of the Year.” Senator Haine served as Senate Insurance Committee Chairman for over a decade, and remains a member of the Committee.

Senator Haine has been a stalwart in protecting the robust insurance marketplace in Illinois and was most deserving of recognition by the industry.

By Chris Davis

2

1

The Health and Life breakout session became a lively exchange between attendees and Representative Laura Fine (D-Glenview), the new Chair of the House: Life and Health Committee. She discussed several of her legislative initiatives to regulate insurance carriers and agents/ brokers, including HB 2624 legislation creating a quasigovernmental Board, independent of the Department of Insurance, that would review and approve, or reject, health insurance rates in Illinois. Agents and brokers in attendance offered intense criticism of this and other legislative initiatives, as well as posing several tough questions of the Representative.

In a serendipitous moment, some attendees headed to the Capitol early to attend a scheduled hearing of the House: Property Casualty Committee. Only one legislative measure was scheduled for hearing in the Committee, and was subsequently not called for debate by the sponsor. Despite the lack of business for consideration, the Committee hearing was not cancelled. Therefore, with several Representatives present, expecting to consider legislation, Committee Chair Camille Lilly (D-Oak Park) called audience members to the table to discuss Insurance Industry Legislative Day. Fortunately, Brad Corso, of Erie Insurance provided testimony on the favorable insurance regulations in Illinois as a primary factor in Erie Insurance, an Ohio domiciled company, choosing to do business in Illinois. Corso informed the legislators present about how and why Erie Insurance chooses to do business in various states and how Illinois’ regulatory climate contributes to a robust insurance marketplace, and how it benefits consumers. This was an extremely successful moment for the day’s events.

Finally, well over 120 individuals and 35 legislators attended an energetic, engaging reception at the Illinois State Library, across the street from the Capitol to end the day.

Chris Davis is IIA of IL VP Government Relations. He can be reached at cdavis@iiaofil.org, (217) 321-3002. may 2017

3

4 1 Illinois Department of Insurance Director Jennifer Hammer 2 Wisconsin Insurance Commissioner, and NAIC President, Ted Nickel 3 Illinois Insurance

Association Executive Director Kevin Martin and IIA of IL CEO Phil Lackman with Senator Bill Haine (D-Alton) 4 Attendees pictured with Senate Republican Leader Christine Radogno (R-Lemont)

continued...

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13

government

Insurance Industry Legislative Day

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1 President-Elect Ryan Hite with Representative Mike Unes (R-East Peoria) 2 IIA of IL Region 2 Director Bill Wirth, Michael Stern of CHUBB, Senator Tony Munoz (D-Chicago), and IIA of IL CEO Phil Lackman 3 Insurance Industry Legislative Day Attendees with Senator Chapin Rose 4 Eric Madiar, Donald D’Errico of Employers, Represen tative Camille Lilly (D-Chicago), Steve Schneider, Jeff Junlkas

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Ultimate Guide to

Marijuan

Use Insuran By

The stakes have never been higher for marijuana legislation and the insurance industry as lawmakers and regulators wrestle with the ramifications of legalizing this once universally banned substance.

The past decade has been undeniably transformative for U.S. marijuana laws. To date, 28 states and the District of Columbia have broadly legalized cannabis in one form or another, including the recent legalization of recreational marijuana in California, Massachusetts, Maine and Nevada during the November 2016 election cycle.

But whether it’s being used as medicine or for leisure, the marijuana legalization trend has resulted in myriad state laws that conflict with the federal government’s official position on the production, possession and consumption of cannabis. What’s more, the particulars of individual state laws are anything but uniform, and what’s considered legal in one state may be unlawful in another - even if they both allow for some degree of marijuana possession or consumption.

As a result, the insurance implications are as varied as they are complicated.

“The insurance industry has run into an interesting area where they know marijuana is legal in some states but 16

insight

that it’s also not legal according to federal law. And that’s led to a real quandary,” says Brenda Wells, director of the risk management and insurance program at East Carolina University in Greenville, North Carolina. “Do they cover it? Do they not cover it? And if they do cover it, how is it valued? These are just some of the questions they’re wrestling with at this stage. And it can get confusing.”

To help you wade through these muddy waters, insuranceQuotes offers some key considerations for marijuana’s impact on various components of the insurance industry.

Marijuana and Homeowners Insurance The question is simple: If you have some marijuana and it’s damaged in a fire or stolen from your property, will your homeowners insurance policy cover the loss?

The answer, however, is not so straightforward.

Some insurers are looking to individual state laws to establish a precedent for coverage. For instance, Allstate went on the record in 2014 saying it would cover the loss of marijuana in Colorado, where cannabis is legal for both medicinal and recreational use.

may 2017

o

ana

e& nce

By Nick DiUlio

“In Colorado, lawfully possessed, processed marijuana is not excluded and is limited to the personal property limit of the homeowners policy,” Allstate said in a statement that year. “Whether it is medical or non-medical is not relevant to coverage.

Fire is a covered peril, and coverage of an accidental fire would not be impacted by whether or not it was started in connection to lawful marijuana use.”

They added that marijuana plants grown with a state license - and not exceeding the legal state limit - would be “limited to the perils and limits under additional protection for trees, shrubs, plants and lawns.”

But, says Wells, this does not address the more perplexing problem of marijuana’s monetary value and conflicts between state and federal laws.

“Even if insurers are writing policies in line with state laws, there’s the critical problem of valuation,” says Wells, who is currently working on an update to her seminal 2014 paper title Marijuana Legalization: Implications for Property/Casualty Insurance. “It’s incredibly hard to establish a market value for marijuana across the board, and how this is handled is going to vary from state to state.”

For instance, a federal court in Hawaii ruled in 2012 that a homeowners policy did not cover the theft of her marijuana plants grown for medicinal use.

The homeowner, Barbara Tracy, was allowed to grow and possess marijuana for her own medical use, and after 12 plants were stolen she submitted a claim to USAA for $45,600. USAA initially agreed to pay Tracy $8,801 for the claim, but Tracy sued, claiming the plants had a far greater value.

USAA argued that because marijuana is federally classified as an illegal Schedule I substance (akin to heroin, morphine, and LSD) they were under no obligation to cover the loss at all. The court ultimately agreed with USAA, stating that even though Hawaii law permits the use of marijuana for medicinal use it is illegal under the Controlled Substances Act and therefore not subject to homeowners’ insurance coverage.

Some states are pre-emptively combatting these types of conflicts by including language in marijuana legalization laws that prevents insurers from denying claims like Tracy’s.

For instance, Oregon’s Control, Regulation and Taxation of Marijuana and Hemp Act states, “No contract shall be unenforceable on the basis that manufacturing, distributing, dispensing, possessing or using marijuana is prohibited by federal law.”

In other states, possession limits are so low that insurance companies aren’t bothering to fight claims. may 2017

For instance, Wells points out that Connecticut allows for the possession of up to 2.5 ounces of “useable marijuana” for medicinal purposes.

“If 2.5 ounces were stolen or lost in a fire, the value of that loss would probably be less than $1,000,” Wells says. “And an insurance company isn’t going to go to the mat over such a small claim.”

Nonetheless, there is a lot of money at stake here on the whole. According to Forbes, the legal U.S. marijuana market exceeded $6.5 billion in sales in 2016, and that number is only projected to climb in the coming years.

“First and foremost, the insurance industry needs to figure out whether or not they want to cover marijuana losses, and if they do they need to be prepared to pay claims.

If not, they need to change their contracts to expressly exclude it,” Wells says. “But that still doesn’t solve the bigger problem of how to value the plants. What is a fullygrown marijuana plant worth? No one has an answer to that yet.”

Marijuana and Life Insurance As more and more Americans legally smoke cannabis for recreational and medicinal use, life insurance providers have had to grapple with its impact on the application and underwriting process.

According to insurance specialist Michael Quinn, life insurance providers are wrestling with whether or not smoking marijuana carries the same health risks as smoking cigarettes.

“Regular smokers are charged tobacco rates, which are often four times higher than those for non-tobacco users,” Quinn says. “But some insurers are deciding to treat marijuana differently.”

For instance, Prudential tends to offer some of the lowest life insurance rates for medical marijuana users because they do not place them in the same risk pool as cigarette smokers.

“Based on your marijuana use alone, there is no telling what kind of rates you will be offered. You could technically get rates anywhere from substandard to preferred plus,” Quinn says. “However, Prudential looks at the reason behind your medical marijuana use, and this means that your rates will be based on the severity of your health condition.”

For instance, let’s say a hypothetical man named Jim smokes medical marijuana to help with insomnia. As a 50-year-old in otherwise perfect health, Prudential would offer him a preferred plus non-tobacco rate.

If, however, Jim uses medicinal marijuana to ease the symptoms of multiple sclerosis, he would get a higher rate based on the severity of the condition being treated, not his use of marijuana.

Nonetheless, the extent to which your life insurance might be affected by smoking marijuana will depend on the individual insurer and the frequency of your use.

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17

Davis. “There’s still no standard to follow across the board.”

When it comes to workers compensation insurance, Davis says there are a few more carriers willing to offer coverage to the marijuana industry.

“Workers compensation insurance is primarily run based on state laws, so you see that market opening up a little in states where marijuana is now legal,” Davis says. “But that number is still very limited due to the social stigmas attached to the product. Mostly, the carriers offering coverage are non-rated or smaller carriers who aren’t worried about a negative public image.”

“For underwriting consideration, the first thing we must determine is whether the use is recreational, or if the proposed insured had been issued a prescription for medical use,” says Pinney Insurance underwriter Mike Woods. “If it’s for medicinal purposes, underwriting is going to be looking to the specific issue that the marijuana is being used to treat.”

For recreational use, Woods says the underwriter is going to want to know the frequency of use.

“Cannabis contains carcinogens, and evidence suggests that heavy cannabis use may be associated with oral cavity, pharynx, esophageal, and lung cancers,” Woods says. “Because of those concerns, many carriers will assign tobacco use rates for any use.”

Marijuana’s Impact on Businesses For businesses in the legalized marijuana industry, insurance providers are still operating in unchartered waters, says Tim Davis, workers compensation and general liability insurance expert.

“Because marijuana is still against federal laws, this causes a major limitation in the marketplace for any business that serves or operates in the marijuana industry,” Davis says.

“General liability exposure is still untested, and since the exposure is too new to have time to develop, we will have to see how the premiums for this industry shake out.”

For instance, if you own a marijuana retail store and someone falls while shopping there, general liability insurance would cover any medical costs incurred by the shopper. What’s more, product liability issues may come into play for marijuana retailers selling edible marijuana food products.

“Premiums are still incredibly high for the few carriers who offer insurance to the marijuana industry because no one knows yet if this type of insurance will be profitable,” says 18

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Assuming the national trend for marijuana legalization continues, Davis believes this will change rapidly over the next five-to-10 years as courts and governments address some of the key coverage concerns and conflicts between state and federal law.

“Once carriers can properly assess what their risk is and know how the judicial system will defend the policies, it will be much easier for more major carriers to enter the market,” Davis says.

Marijuana and Auto Insurance The intersection of legal marijuana and auto insurance has been fairly uncomplicated thus far, and that’s because the insurance ramifications for getting caught driving high are no different than those associated with driving under the influence of alcohol.

“If you’re convicted of driving under the influence of marijuana your insurance rates will go up, just like they would if you were charged with a traditional DUI for booze,” Wells says.

However, one of the most significant questions concerning legalization is whether or not more recreational pot legalization has lead to more incidents involving socalled drugged driving. It’s been four years since Colorado and Washington were the first to legalize recreational marijuana, and the data is still a bit unclear.

“I would say the legalization of marijuana has caused a spike in auto accidents for a few reasons, and the most significant one is that new users who don’t have any tolerance to marijuana often overuse it and are not aware of its effects until it’s too late,” says Lindsey Parlin, a Colorado-based criminal defense attorney who specializes DUI cases. “Even if you smoked 30 years ago, you might not realize that the effects of the marijuana out there today are much more significant.”

Nonetheless, it’s very difficult to find any empirical data that links marijuana legalization to an increase in stoned driving in any of the seven states that now allow for its recreational use. may 2017

“A big problem is that there is no separate DUI law for driving under the influence of marijuana,” says Sam Tracy, former chairman of the international nonprofit Students for Sensible Drug Policy. “They just sort of wrap it into the alcohol laws, so if you get charged with a DUI we don’t have data that splits out marijuana versus alcohol versus prescription drugs ... so we haven’t been able to get a solid understanding of the effects of legalization.”

Still, there are some who urge a great deal of caution despite the lack of data.

What’s more, marijuana is not an approved medical treatment by the FDA, and because of its Schedule I classification extensive clinical research on its medicinal efficacy has been difficult to obtain.

“That probably isn’t going to change anytime soon,” Wells says For additional information visit www.insurancequotes.com.

“With the higher prevalence of marijuana in the world, what we’re seeing is a sort of denial of the fact that marijuana can be impairing,” says Chris Cochran, spokesperson for California’s Office of Traffic Safety.

“Marijuana is not a benign substance when it comes to driving ability. It throws off your perception of time, loosens inhibitions, and changes reaction times. We can’t just say, ‘Oh, people who are high drive slower and nicer.’

“Anything you put into your body that will alter your brain chemistry is potentially impairing and dangerous behind the wheel.”

Medical Marijuana and Health Insurance Even if you live in one of the 28 states that have legalized marijuana for medicinal use, don’t expect your health insurance to foot the bill.

Because of its federal designation as a Schedule I controlled substance, health insurance providers have their hands tied when it comes to reimbursing patients using medicinal cannabis, says Wells.

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19

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e INSIGHT -

online journal at www.iiaofil.org/Communications/Insight.aspx

Are

DISRU

Turning P TO R S UPSID the Industry E Rewrite the Digita D O W N l Insura nce Narr ? a Guide to

tive

Marijua & Insunra Use ance

M AY 2 0 17

INSIGH T

The Top Rules of the Most Successful Agen ts

Rule Rule Rule Rule Rule

1: Produce 2: Talk 3: Build Relationships 4: Play Well with Others 5: Have a Great Attitude

Read more in this month’s e-Insight

By John Chapin may 2017

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21

Are Disruptors Disruption [dis-ruhp-shuh n]

Noun 1. forcible separation or division into parts.

2. a disrupted condition: After the coup, the country was in disruption.

3. Business. a radical change in an industry, business strategy, etc., esp introduction of a new product or service thatcreates a new market: Gl advance of technology are major cause’s of business disruption.

Disruption. Seems like this is the new buzz word tossed about in insurance circles. It also seems like every day there is another “disruptor” busting onto the insurance scene. But what does this all mean, and what can we do to brace our industry for their interruption?

Disruption is a wide-ranging term that typically means outside competitors and/or technologies upending traditional entrenched companies. With so many different emergent technologies popping up it can be difficult for insurers to know which ones will actually impact their business.

At one point the biggest implied threat came from online giant Google. In early March 2015 Google launched Google Compare for Auto Insurance, “a comparison-shopping site that let consumers compare the rates from different insurance providers.” The option to compare rates began popping up after a consumer did a Google search for “car insurance” using Google’s search engine.

Predictions, discussions and news articles regarding this tech behemoth dominated for months.

According to an Aug 3, 2015 article in Recode, by Dax Craig “There are some who believe that the tech giant may not be doing anything noticeably different from other aggregators in the auto insurance space. However, if past accomplishments in other industries like navigation, travel and email tell us anything, Google can (and will) find a way to engage the consumer better than incumbent insurers. Rather than writing its own business 22

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and determining individual risks, Google has teamed up with carriers of all sizes to reach customers efficiently, allowing them to quickly search, get rates and compare policies “pound for pound.” Already, this platform has helped shift the insurance industry’s emphasis on the customer by allowing peer-to-peer ratings and allowing consumers to openly disclose any negative or positive experiences with the insurer in question, which will breed overall superior customer service and experience.

Nearly every industry undergoes disruption when consumer expectations shift and businesses are forced to adapt and keep up. For decades, insurance didn’t have the kind of pressure from outside entrants that it is currently facing. Whether Google fails or succeeds early on, it makes little difference: Its entrance is a wake-up call. The more tech companies enter the space, the more traditional insurance must struggle to play catch-up.” https://www.recode.net/2015/8/3/11615294/googleapplies-pressure-on-insurance-innovation Ultimately, the high expectations of Google’s entrance into the insurance industry were not fulfilled. By March 23, 2016, merely one year later, Google announced they were pulling out of this venture.

But Craig was correct, this was a wakeup call for the insurance industry.

Cut to 2017 Exactly one year to the date of the Google Compare closure announcement, March 23, 2017, Insurance Journal ran a piece by Don Jergler detailing the presentations at the Western Insurance Agents Association (WIAA) state of the industry conference in Irvine, Calif.

One of the featured speakers at the event was James Keating, founder, chairman and CEO of The Keating may 2017

rs Turning the Industry

UPSIDE DOWN?

Group. According to Jergler’s piece Keating stated, “If we survive the next five to 10 years and improve the way we do things, we can be well-positioned into the future.”

However, he added that

TO COMPETE WITH THE DISRUPTORS INDEPENDENT AGENCIES MUST EMBRACE TECHNOLOGY.

The need for the insurance industry to fully embrace technology was a theme reiterated throughout that conference. In fact, the article went on to share facts presented by Michael Jans, founder and CEO of Agency Revolution, “Jans, produced a dizzying array of statistics to drive home his point about the need for agencies to be on board with investing in better technology: • 81 percent of consumers research online before shopping • 65 percent of consumers read between four and 52 online reviews • 98 percent of people check email at least once a day • 39 percent of people check their email 10 times or more a day • 87 percent of people say they check their email between midnight and 5 a.m. at least once a week • The average person touches, taps or swipes their smartphones roughly 2,617 times in a day “‘In our business, if we want to reach people and touch people, we have to be where they are,” Jans said.’”

Where they are is online and on their smart phones and insuretech startups are experts at finding more ways to reach consumers and make it more convenient for them to buy insurance online.

When Life Hands You Lemons….

Timeline - April 4, 2017 (seems like a popular time of year for big insurance industry announcements) Lemonade announced they were entering the Illinois market.

Lemonade, the insurance company powered by artificial intelligence and behavioural economics, may 2017

By Deann French

today announced it has been licensed as a full-stack insurance carrier by the State of Illinois. Renters in the state can now buy a Lemonade policy in seconds using the Lemonade app or by visiting lemonade.com.

Homeowner’s policies will be available in the state soon.

New York City-based Lemonade is an artificial intelligencepowered app. Currently the site offers renters’ insurance in Illinois, with homeowner and condo insurance to come soon. Lemonade is looking to reach 97 percent of the US population by the end of 2017.

Would-be disruptor’s prey on the most basic of insurance buyer desires: cheap, fast and easy,” said Ryan Hanley, SVP Marketing or TrustedChoice.com. (see page 24) And Lemonade is filling all the desired check boxes: 1. Renters insurance starts at $5 per month, while homeowners insurance starts at $25 per month.

CHECK 2. Lightning quick processing for simple claims (one claim was processed and paid in three seconds) CHECK 3. The entire process is done via mobile app or internet.

CHECK Plus Lemonade comes with the ever popular social giving component. Essentially any unused claim portion is donated to the charity of choice for the user.

This is called “GiveBack” BONUS As reported in a recent Forbes piece, Lemonade is already poaching customers from industry giants. “According to their website, 19 percent of their users switched from Allstate and 16 percent of users switched from State Farm.

And it’s particularly enticing to young consumers: 80 percent of the first 2,000 policies sold were to first-time buyers.”

And Lemonade is only one of many new startups looking to disrupt the status quo within the industry. Other names you may recognize include Zenefits, Attune, Coverhound, Hippo and Insurify to name a few. And experts agree we haven’t heard the last from Google.

As a matter of fact, Jergle reported that Jans did some research to see how many insuretech-themed conferences are planned for the near future. “I counted 20,” Jans said.

“It’s an industry and it’s right next to us and it will disrupt us.”

MORE TO COME

ion. ., especially involving the et: Globalization and the rapid

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23

DISRUPTING THE DISRUPTOR

How to Rewrite the Digital Insuranc

by Ryan Hanley

Once again, pundits are predicting the demise of “traditional insurance,” namely the local independent agency channel.

Our successors? Insurtech startups; fast-moving technology disruptors willing to prioritize a “one-click” customer experience over everything else.

This is a narrative we refuse to accept at TrustedChoice. com.

What real threat could disruptors pose to an established industry such as ours?

The answer begins and ends with customer experience.

As an industry, we have not kept pace with the rapidly evolving demands of the modern insurance buyer. In a 2016 study, Accenture estimated consumer dissatisfaction with traditional insurance providers had created a $470 billion market opportunity in premiums globally.

Disruptors, capitalizing on declining customer loyalty and the perceived commoditization of insurance products,

view these premiums as low hanging fruit. And so should independent agents.

It was to this end that TrustedChoice.com, under the leadership of CEO, Charles “Chip” Bacciocco, launched its first generation platform in 2013.

“From its inception, TrustedChoice.com was founded as an independent company, to provide a sustainable and scalable competitive advantage to independent agents and carriers,” remembers Tom Minkler, president of ClarkMortenson Insurance. “This is why The Big “I” and a small number of forward-thinking insurance carriers got together and created TrustedChoice.com in the first place.”

Three and half years later, TrustedChoice.com is attracting almost half a million visitors and delivering over 10,000 one-to-one, consumer to agent connections, (we call referrals), each month.

Would-be disruptors prey on the most basic of insurance buyer desires: cheap, fast and easy.

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24

insight

may 2017

RS

nce Narrative Easy replaces expertise.

Convenience replaces trust.

Price replaces coverage.

Bots replace humans.

This is why TrustedChoice.com was created, to sift through the sea of new technology, pull out the useful pieces and create tactical solutions for independent agents to use in their own business.

But how can independent agents compete with venture capital-backed budgets and slick technology in a marketplace where consumers seemingly don’t care about the product?

“People have sounded the death knell of the Independent agent for more than a hundred years. We’re still here.

That said, we cannot be so arrogant and dismissive as to believe inaction is an option. We must accept Darwinian principles and adapt to the changing digital marketplace,” explains Mike McBride, president of Mason-McBride, Inc. “That’s what TrustedChoice.com is, the independent agent’s mechanism for adapting to change.”

As independent agents, we don’t sell insurance; we sell our people. We sell a relationship.

Craig Welsh, Group Distribution Leader at Westfield Insurance, believes in this methodology, noting: “TrustedChoice.com is digitizing the independent agent value proposition and allowing local agents to build new relationships they may not have otherwise found in the physical world.”

From day one, TrustedChoice.com set out to be a different type of marketing and lead distribution platform. We would not pander to the lowest common denominators of selling insurance: cheap, fast and easy.

Instead, we use the independent agency channel’s five distinct strengths as leverage over disruptive methods of distribution: • We are part of the community we serve • We have deep expertise • We have access to a full spectrum of insurance solutions • We advocate for our clients • We have greater scale than anyone else It is the sheer volume of independent agencies across the country, 21,000-plus just in the Big “I” membership alone, which fuels our opportunity. But we must do it together.

We can’t disrupt the disruptors by ourselves. Hand in hand, we must all become participants in the digital marketplace.

The Mechanism of Disruption

Mechanism: defined as a system of parts working together in a machine; a piece of machinery. What a perfect way to describe TrustedChoice.com.

The independent agency channel is a machine, TrustedChoice.com is its mechanism of innovation.

At its core, TrustedChoice.com is a data-driven company.

By collecting massive amounts of data on consumers and their intent, agents and their expertise, and carriers and their appetite, we’re able to deliver unique, real-time fulfillment suggestions to insurance consumers at their exact time of need.

“No one else is doing this for the independent agent channel,” explains Derek Hyde, TrustedChoice.com chief technology officer. “No one else has access to the depth and breadth of data we do. Our platform learns alongside the data collection, continually improving the quality of lead delivery. We don’t always know what the data will reveal, so we’re innovating on the fly. Every day we move closer to being the ‘Amazon of Insurance.’”

The “Amazon of Insurance” is an inevitable path to fully exploit the five strengths of the independent agency channel: Local, expertise, choice, advocacy and scale.

Ryan Hanley is SVP of Marketing for TrustedChoice.com.

He can be reached at ryan.hanley@trustedchoice.com.

As new technology flows into the industry, there is no reason independent agents should not harness the same technology-driven efficiencies heralded by disruptors.

Would-be disruptors prey on the most basic of insurance buyer desires:

CHEAP, FAST AND EASY

may 2017

insight

25

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“NO SAL

The

Why Customers Wo Salespeople are always alert for “buying signals,” those indications that the customer is ready to say yes. When this happens, the savvy salesperson knows it’s time to stop talking and ask for the order.

But salespeople often miss the warning signs that all is not well. Mostly unspoken, these are the “no sale signals” customers send when they’re dissatisfied with a salesperson. Here are 13 of them:

1. You don’t connect with me. You think you do

with your small talk and feigned friendliness. It’s all an act, the same one you put on for every customer. Your efforts at manipulation are transparent and belittling. You don’t give even one good reason to buy from you.

2. You’re only interested in making a sale. You

may think that’s your job. It’s not. You haven’t figured out that your role as a salesperson is understanding what’s going on with your customers, what they’re thinking about, and what they want to accomplish. Do that, and the sale will take care of itself.

3. You decide what I should buy. Evidently, you

don’t trust your customers to make their own buying decisions, so you do it for them. You don’t trust them enough to offer options. Do you think choices will confuse them-or worse, drive them away? Try helping your customers examine the possibilities so they can narrow the choices to the point that they say, “This is what I want.”

4. You push the customer to make a decision.

You and your customer aren’t on the same page when it comes to urgency. You prepare the proposal quickly, make the presentation, and get a positive response from the customer. You make constant attempts to motivate the customer, but nothing works. The customer procrastinates.

Later, you find out the order went to someone else. Pushing customers doesn’t work.

5. You don’t answer the customer’s questions.

Salespeople think they do, but they don’t. They’re so intent on what they want to get across, they don’t hear what the customer is saying or how they’re acting. Even so, salespeople come away pleased with their performance and pat themselves on the back for the great job they did on the presentation-but they don’t get the order.

ALE”Signals

Won’t Buy From You

By John Graham

6. You make the customer feel inadequate. You

don’t do it deliberately, and you would be surprised and even shocked if customers told you how you made them feel. It’s easy to assume customers have a certain level of knowledge but many don’t-due to the rapid changes in every industry, including their own. It’s important to remember that you may be better informed than the customer, not matter what you are selling. This makes it easy for a customer to feel inadequate-and defensive. If the person is sensitive, this can harm your chances of moving forward.

7. You don’t stay in touch after the sale. You

make a point of telling customers that you will be checking in with them from time-to-time to see how they’re doing and to answer their questions. You know that’s what they want to hear from their salesperson. When you don’t do it, you let them down. They fell for your line, and you’ve played them for a sucker, or so they think-and that makes the bad juices flow. Then you wonder why you don’t get any more business or referrals from them.

8. You don’t follow through. You say you’ll get

a customer the requested information. Three weeks later, you haven’t done it. Then, he reminds you, and you make up an excuse or throw a colleague under the bus. The customer comes to the conclusion that he can’t count on you. It’s time to realize that such experiences are indelible.

9. You try to impress customers rather than help them. To put it bluntly, all too often, salespeople

make themselves the “star” of the show. For some reason, perhaps it’s a lack of self-confidence, salespeople feel it necessary to “sell” themselves to a customer by peppering the conversation with success stories and name dropping.

All the while, what customers are looking for is help, and you miss the opportunity to make a sale.

11. You offer solutions that are either inappropriate or don’t solve the customer’s problem. You do it deliberately, and you probably get

away with it some of the time. But when buyers figure out what you have done, your credibility is gone and so is the customer.

12. You don’t take advantage of opportunities to be helpful. A customer came in to replace an

expensive five-year-old digital device he had bought elsewhere wasn’t working properly. The sales technician examined it, ran tests, made adjustments, and handed it back to the customer. “Try it now,” said the tech. Sale lost?

No. Some weeks later, the customer called and ordered the latest model. By helping, the sales tech got the order.

13. You don’t think like a customer. The worst

criticism anyone can level at salespeople is to say they don’t think like a customer. Namely, they don’t take the time to discover what’s important to customers, what they don’t like, how they make their decisions, and what bothers or worries them. If there’s one thing customers want from salespeople, it’s to be understood.

Sure, there are easy sales, but they’re the exception. Selling requires patience and sensitivity. Most sales balance precariously between yes and no. Most sales are hard to win. It’s unfortunate when salespeople make it even tougher for themselves by undermining their own success.

John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of “Magnet Marketing,” and publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@grahamcomm.com, 617-774-9759 or johnrgraham.com.

10. You don’t play it straight. The day after having

a car serviced, the dealer’s rep called to see if the work was satisfactory. The customer told her that he was pleased. So far, so good-until the other shoe dropped. Then the dealer’s rep added, “You may get a call from the manufacturer asking about our service.” That’s all it took to know what was important to the dealer. The customer felt the dealer was using him.

may 2017

insight

29

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imtins.com | west des moines, iowa insight

31

ASSOCIATE NEWS

Thank you to our Associate Members.

Diamond Level Members

Platinum Level

Standard Property & Casualty, a National General Company

Gold Level

AAA Insurance Agent/Broker Review Company Arlington/Roe Blue Cross/Blue Shield of IL

Grinnell Mutual Reinsurance Company Imperial PFS A.J. Wayne & Associates AMERISAFE Atlantic Specialty Lines Auto-Owners Insurance Co. Berkshire Hathaway Guard Insurance Companies Burns & Wilcox, Ltd. Chicagoland Carstar Columbia Insurance Group Donald Gaddis Company, Inc. Encompass Erie Insurance Group Farmers Mutual Hail Foremost Insurance Group Forreston Mutual Insurance Company Grange Mutual Casualty Co. Illinois Mine Subsidence Insurance Fund Illinois Public Risk Fund Interstate Risk Placement IPMG J. C. Restoration J M Wilson Keystone Insurers Group, Inc.

32

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Silver Level

The IMT Group West Bend Mutual Insurance Co.

Bronze Level

Liberty Mutual Madison Mutual Insurance Company MarshBerry Maximum Ind. Brokerage, LLC Mercury Insurance Company of IL MetLife Auto & Home Motorists Insurance Group Nationwide Networked Insurance Agents ProAg Rockford Mutual Insurance Co. ServiceMaster DSI Society Insurance Specialty Risk of America Surplus Line Association of Illinois Transcom General Agency Travelers United Fire Group Utica National Insurance Group W.A. Schickedanz Agency, Inc. Western National Insurance Westfield Insurance Company

may 2017

IIA OF ILLINOIS NEWS Education Classes may

10 10 17 18 18 24 24

CIC - Commercial Casualty Chicago CISR - Personal Residential Bloomington CISR - Personal Lines Misc.

Rolling Meadows CISR - Personal Auto Edwardsville Ethics Rolling Meadows CISR - Commercial Property Springfield CISR - Commercial Casualty 1

New Members

june

7 13 13 14 20 21

CISR - Commercial Casualty 2 Rockford CISR - Life & Health Rolling Meadows Errors & Omissions Lake Bluff CIC - Life & Health Rolling Meadows Ethics Westmont CISR - Agency Operations Springfield

member agency Barasch Insurance Service & Financial Planning, Inc. Skokie, IL Feddersen Insurance Agency, Inc. Oak Lawn, IL Hazen Insurance Agency, Inc. St. Charles, IL Mills Insurance Group, LLC Lisle, IL Northpointe Consulting, LLC Springfield, IL RJP Insurance Services, Inc. Northfield, IL Stateline Insurance Agency, Inc. Hebron, IL

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Online Education www.iiaofil.org IIA of IL Webinars | ABEN Webcasting May & June Featured Online Classes E&O: Roadmap to Policy Analysis | Personal Auto Hot Topics Business Auto Coverages | The Dirty Dozen Contractors Property Exposures | Cyber Liability Agent’s Guide to Insurance Nonprofits | Condominiums Income After Retirement | Commercial Property Dispelling the Myths of Workers’ Compensation Insuring Trusts | Protecting Your Most Valuable Assets Farm Liability | Insuring Toys & Collectibles | AND MORE

First Chicago Insurance Group Bedford Park, IL For information regarding IIA of Illinois membership or company sponsorship, contact Tom Ross, Director of Membership Services, at (217) 321-3003, tross@iiaofil.org. may 2017

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33

Now that we’re a part of National General, we’re much easier to do business with!

• Top-notch auto and home portfolio • Intuitive, cutting-edge policy platform • Continued excellence in service We value your loyalty!

Visit nationalgeneral.com/getappointed

Illinois Young Agents are hosting the first ever statewide Day of Giving on June 2.

The goal of #IIADayofGiving is to encourage as many individuals throughout the state as possible to devote June 2 to donating time, talent and treasures for the betterment of their communities.

Help us make an impact in Illinois.

EVENTS ARE ALREADY SCHEDULED IN SEVERAL CITIES AROUND THE STATE Des Plaines

Jerseyville

Participating in Collecting supplies for Feed My Starving Children Riverbend Humane Society. and collecting spare change Will also clean up grounds for Pediatric Cancer Research. on June 2.

Olney

Shred and Electronic Recycling event with proceeds to benefit Big Brothers Big Sisters of Richland County.

Rolling Meadows

Feed My Starving Children MobilePack event held June 2.

Lisle

Collecting donations to create care packages for Family Shelter Service to be donated on June 2.

Sauget

Night at the Ballpark at the Gateway Grizzlies game.

Proceeds to benefit St. Jude Children’s Research Hospital.

Springfield

Charity Garage Sale Event at Association Headquarters.

Large Community Garage Sale, Food Trucks, Haircuts & Facials, Blood Mobile with all donations to benefit St. Jude Children’s Research Hospital.

DONATE:

TIME • TALENT • TREASURES

YOU CAN MAKE A DIFFERENCE

www.IIADayofGiving.org • Facebook.com/IIADayofGiving may 2017

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35

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Free

Haircuts Mini-Facials for Donation

Support St. Jude Children’s Research Hospital The IIA of IL is a proud supporter of St. Jude Children’s Research Hospital. We offer many programs throughout the year to raise funds for the fight against childhood cancer. We encourage our members to join us in this fight.

Put your support on display for all to see. For a $25 donation you will receive the window cling shown below to display that you, a Trusted Choice Independent Insurance Agent, are a proud partner of St. Jude Children’s Research Hospital. Windows clings are available through June 2, 2017.

100% of the proceeds will go to St. Jude Children’s Research Hospital.

Order yours at www.iiadayofgiving.org/st-jude-donation.

Finding Cures. Saving Children. may 2017

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Staff Profile Lori Mahorney Central/Southern Marketing Representative Number of Years at the IIA of IL: Two What do you like most about your job?

I love interacting and visiting with our members throughout the state and promoting our membership benefits.

Tell us about the first job you ever had: I was a lifeguard for Island Bay Yacht Club in Springfield, IL. I started when I was 15 and worked there for four summers. I loved being outside and working with kids and their families.

If you could have any career other than this what would it be?

An Art Teacher What is your favorite:

Pastime: Reading, cooking, painting and being outdoors

Food: Mexican and Pizza

Movie: The Usual Suspects and True Romance

TV Show: This is Us and Netflix original, Bloodline Band: U2 and Pearl Jam Tell us about your family: I’ve been married to my husband, Mike, for 19 years. We have three boys, identical twins, Joe and Jake, who are 16 and our youngest, Will, who is almost nine years old.

Both twins are on the Autism Spectrum and attend a special needs school in Indianapolis. Although the journey with them has presented numerous challenges, we are fortunate to have such a great support system to help them thrive to their maximum potential. Thanks to technology we FaceTime almost every evening and we visit every third weekend.

Our youngest son Will has taken a natural love for the water and swims competitively year-round. When he’s not in the pool he’s either swinging from a tree or acting like any typical 8-year-old boy.

Name one thing on your bucket list: I would like to learn a language and scuba dive the Great Barrier Reef What is your biggest fear?

Dying Of what are you most proud either personally or professionally?

My children. They have taught me to be patient, open minded, empathetic of others and appreciative. They have made me a better person.

Name something people would be surprised ot know about you.

I met my husband, Mike, while interning at Walt Disney World.

Although we are both from the central IL area, it took traveling to Orlando to meet.

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industry news

Progressive Continues Significant Investment in IA Channel; Announces New Program Offering Higher Commissions, Performance Bonuses Building upon its $1 billion acquisition of home carrier American Strategic Insurance, Progressive announced additional compensation opportunities for independent agents through Paths to Partnership, featuring a new national auto commission schedule and performance bonuses to reward agents who build larger personal auto books, and place longer-retaining personal auto business, with Progressive.

Under the program Progressive will continue to welcome inconsistently insured and simpler needs customers, and the tiered commission structure rewards auto policy growth regardless of customer segment. New incentives for preferred business, however, reflect the company’s efforts to become a go-to carrier for households with more complex needs as well, and complement the 2015 launch of Platinum, a preferred home and auto incentive program that continues to roll out across the country.

Progressive will start rolling out the new national auto commission schedule in phases, beginning with 12 states in July of this year, and another 32 in January 2018, when the new partner program and performance bonus will launch nationally. Full details are available to appointed agents on ForAgentsOnly.com.

The company also plans to roll out comprehensive enhancements to its commercial and personal lines quoting and servicing platforms over the next 18 months to further extend ease of doing business with Progressive and continue bringing to market smart, simple ways for agents to better serve their customers.

Acuity Insurance Named a Best Company to Work For Acuity Insurance claimed the #9 spot in the 2017 FORTUNE “100 Best Companies to Work For®” list. For the third straight year, Acuity has ranked among the top large employers for its workplace and corporate culture.

In addition to a high level of trust, Acuity’s great workplace recognition reflects the company’s outstanding employee benefits, career opportunities, and involvement of staff in strategy and decision-making. It also recognizes Acuity’s strong charitable giving and a unique, fun, and celebratory corporate culture.

Grinnell Mutual Reveals New Brand Identity Grinnell Mutual, which has provided property and casualty insurance and reinsurance to customers for more than 100 years, today is unveiling a new brand identity that more closely aligns with its continued growth and transformation.

Grinnell Mutual’s new brand theme - Trust in Tomorrow - builds on its history of trusted relationships and speaks to a confident future for mutual members, agents and policyholders. Along with a new primary logo for Grinnell Mutual, the evolution in brand identity features a new name and logo for its reinsurance unit, Grinnell Re. It also includes a new member logo, Grinnell Mutual Member, which replaces the longstanding FarMutual logo. Jansen says these changes reflect the more forward-looking and expanded offerings of the company.

The new brand identity is Grinnell Mutual’s first major update since 1963. It worked with West Des Moines-based branding and marketing agency Meyocks to create the new identity and theme.

Fortune Magazine Names West Bend a “Top Financial Services Company” West Bend Mutual Insurance announced it has been named to the list of “40 Best Companies in Financial Services” by Fortune Magazine. This award is the result of an employee survey that reported high levels of trust in management, as well as camaraderie and pride in what employees do each day. An average of 98 percent of employees of the companies that made the list reported they enjoy a stable workplace and describe their organizations as friendly.

The FORTUNE “100 Best Companies to Work For” list recognizes businesses that have exceptional workplace cultures. In compiling the annual ranking, Great Place to Work® evaluates companies based on employee ratings of their workplace culture, including the level of trust they feel toward leaders, the pride they take in their jobs, and the camaraderie they experience with coworkers.

Being a best workplace has enabled Acuity to outperform other companies in the insurance industry. Acuity has grown its customer base and policyholder surplus several times faster than the industry over the past 17 years. A great workplace has also contributed to Acuity’s remarkably low staff turnover, helping build stronger relationships with customers and independent agents.

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Society Insurance has officially announced the election of Dina S. Schultz to the role of senior vice president and chief operating officer.

Schultz was appointed to the position of senior vice president of operations and innovation last fall after the retirement of Bill Reeves was announced. At that time, Society’s board of directors had expressed its intent to name Schultz COO after the retirement was official. As COO, Schultz will continue to oversee the underwriting, claims, sales and marketing, and human resources departments at Society.

Falese Joins J.C. Restoration J.C. Restoration is pleased to announce a new member to their Sales Team. Angela Falese, Key Account Manager, comes to the company with eight years experience in the disaster restoration industry. Falese has been a trusted advisor in the insurance, property management, and fire department sectors, and will continue to be a resource to these customers for disaster restoration services in her new role at JCR. She also is certified to organize and teach Continuing Education classes and currently serves as president of the Northwest Suburban Insurance Professionals (NSIP).

Schultz brings more than 30 years in business and leadership expertise to the position, with nearly 17 years of executive-level background in the insurance industry.

Since joining Society in 2012, Schultz has led a fullscale rebrand of the company while steering Society toward profitable and long-term growth. Schultz has transformed the sales and marketing functions at Society in her time with the company, utilizing her strong marketing, advertising, public relations and operations expertise to focus on offering agents and policyholders many new products, tools and services to make the company easier to do business with. As an executive sponsor, Schultz is also overseeing a grassroots program to continuously improve Society’s operations through efficient processes and procedures.

Prior to joining Society, Schultz was the chief operating officer of Missouri Employers Mutual and was instrumental in leading the start-up company to become the number one workers compensation insurance carrier in Missouri. Schultz received a Bachelor of Science degree in marketing, public relations and advertising, with a minor in psychology from Stephens College in Columbia, Mo.

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people in the news

Society Insurance names Schultz Chief Operating Officer

CLASSIFIEDS

for the insurance professional by the insurance professional

POSITION AVAILABLE

48. ICW Group is hiring a business development underwriter covering our Southern Illinois territory. Our business development underwriters oversee both underwriting and marketing initiatives.

This is a great opportunity for candidates with an entrepreneurial spirit to truly become their agents’ business partner and take their career to the next level. To learn more about the role and ICW please visit our website at icwgroup.com/careers. Contact:

Kara Clark ICW Group 3161 W. White Oaks Drive, Ste 302 Springfield, IL 62704 (858) 350-2596

AGENCY OR BOOK OF BUSINESS WANTED

86. Independent agency with 35 years’ experience is looking for an agency or book of business to purchase in Cook County. We can take over your location. Sell that high maintenance book of small commercial and/or personal lines. Visit our website at www.hallbergagency.com. Contact:

T. Strimel @ (708) 552-2454

AGENTS WANTED

6. Allstate Insurance Company is currently looking to contract Independent Insurance Agencies throughout the state of Illinois.

The Property and Casualty contract consists of selling personal lines and light commercial business. Our compensation is among the most competitive in the industry. By joining the Allstate family as an independent agent you will have one of the most successful and recognized insurance brands backing you. For more information on this opportunity please contact:

Stephen L. DeBrun Allstate 421 S. Grand Ave W Springfield, IL 62704 (217) 820-4603

POSITION AVAILABLE

51. Small but growing property & casualty agency looking for a full-time CSR/Account Manager with insurance experience in Springfield. Strong work ethic, dependable and detailed individual only apply. Compensation will be based on experience. Benefits include health insurance and simple plan.

Contact:

Dfrench@iiaofil.org Reference #PA51

OFFICE SPACE FOR LEASE OR SALE

01. Former office space of Premier Risk Services located in the heart of Itasca. The first floor is approximately 2,500 SF and can accommodate up to 18 people. It has a kitchen/break room, conference room, two private offices, and 11 workstations. The second floor suite is roughly 6,000 SF and can accommodate up to 30 people. It has a kitchen, break room, large conference 42

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room, nine private offices, and 20 workstations. The entire space is fully furnished and equipped, and can be offered in its entirety, or partially. This space is also ideal for a cluster operation. For additional information and an electronic color brochure, go to www.premierplaceluxurycondos.com or contact:

Dino Gavanes Advisers Group. Inc. 630-779-0566 dino_gavanes@advisersinc.com

AGENCY/AGENTS/PRODUCERS WANTED

02. Forest Park/Oak Park agency for over 55 years, will meet your needs by providing space, markets, marketing & sales support, automation, merging with or purchasing your agency.

Perpetuation/ Succession Plans, Buy-Sell Agreements also available. We have experienced, educated and dedicated staff for you and your clients. Have access to our numerous companies, office services and many other resources. Retain ownership in your book with contingency. Please look closely at us- we are an agency you want to do business with! We’ve done it before, we know how- we make it easy! Visit our website at forestagency. com/agents.html, or call for a confidential discussion and a list of Agency benefits.

Dan Browne will provide an agency evaluation/appraisal at little cost to you. Please call:

Dan Browne or Cathy Hall Forest Agency (708) 383-9000 dbrowne@forestagency.com

OPPORTUNITIES/SPACE AVAILABLE/RETAIN OWNERSHIP

13. We are a 100 year old Northbrook agency looking to discuss any mutually beneficial opportunity. Our producers, mergers, clusters and agency purchases receive 50% commissions on new and renewal business without any expenses. We can provide: office space, phones, agency management system, service renewals and changes. The companies we represent are: Badger Mutual, Employers Mutual, General Casualty, Guide One, Hartford, Kemper, Progressive, Rockford Mutual, Safeco, State Auto, Travelers and Met Life. Contact:

Nancy Solomon Martini, Miller & Schloss, Inc. (847) 291-1313 Ron@martini-miller.com

AGENCY WANTED

20. Since 2004, Central Illinois Agents Group LLC has been providing independent agents with a variety of markets with contingency opportunities. Agents have availability to several markets that they may not be able to sustain or maintain on their own. We have markets for personal, commercial, agricultural and crop insurance lines. Let us help you get to the next level.

Visit www.ciagonline.com for contact information. may 2017

Entrepreneurial, Not Bureaucratic Niche Workers’ Compensation and Commercial Line Coverages for Main Street America Get started with an agency appointment application at amtrustappointments.com/Illinois1.

A.M. BEST RATING OF “A” (EXCELLENT), FSC “XIV”

ANA_2017_Ad_Campaign_Print_Ad_Illinois.indd 1

1/11/2017 8:55:34 AM

Expect big things in workers’ compensation. Expect to save a third of your clients 30% or more. Most classes approved, nationwide.

For information call (877) 234-4450 or visit auw.com/us. Follow us at bigdoghq.com.

Š2017 Applied Underwriters, Inc., a Berkshire Hathaway company. Our insurance carriers are rated A+ (Superior) by A.M. Best.

Insurance plans protected U.S. Patent No. 7,908,157.