wisconsin
INDEPENDENT AGENT DECEMBER 2018
FEATURING MLB PITCHER JIM ABBOTT & WISCONSIN COMEDIAN CHARLIE BERENS 2019
MAY 15-17 MADISON MARRIOTT WEST
MADISON, WI
SEE PAGE 10
We push ourselves for you. Because you push yourself for them. For more about how Integrity can help you help your customers contact: Cathy Colรณn at 920-968-8326 or ccolon@imico.com integrityinsurance.com
wisconsin
INDEPENDENT AGENT DECEMBER 2018
Insurance Bartender. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 InsurCon 2019 Details. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Sales What’s in Your Agency’s Sales Playbook?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Government Affairs Democrats Win Statewide Races Amid Record Turnout. . . . . . . . . . . . . . . . . . . . . . . 14 Errors & Omissions Factors to Consider When Choosing Your Agency’s E&O Limits . . . . . . . . . . . . . . . 19 Why E&O Audits for Small Agencies (or Any Agency) Should Not Be Feared. . . . . 20 Win-Win: Three Ways to Increase Sales While Decreasing E&O Claims . . . . . . . . . . 21 Technology Your Mandate: Embrace, Leverage Insurance Data Analytics. . . . . . . . . . . . . . . . . . 22 Earning Buy-In on Technology in Your Insurance Agency . . . . . . . . . . . . . . . . . . . . . 23 Commentary from Counsel Wisconsin Addresses Third-Party Litigation Funding . . . . . . . . . . . . . . . . . . . . . . . . . 24 Government Affairs All Good Things Must Come to An End. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Virtual University Ask an Expert. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Agency Operations Helping Your Employees Embrace Change. . . . . . . . . . . . . . . 28 Members in the News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30-33 Food for Thought . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Independent Insurance Agents of Wisconsin 725 John Nolen Drive, Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 ■ Fax: (608) 256-0170 ■ Web: www.iiaw.com Executive Vice President - Matt Banaszynski 2018-2019 Executive Committee President............................................................ Jason Bott Robertson-Ryan & Associates - 330 East Kilbourn Ave., Milwaukee, WI 53202 President-Elect............................................. Chris Costakis Avid Risk Solutions- 2501 Parmenter Street, Ste 200A Middleton, WI 53562 Secretary-Treasurer......................................Darrel Zaleski Spectrum Insurance Group, 4233 Southtowne Drive, Eau Claire, WI 5470 Chairwoman of the Board.................................Lise Meyer Meyer Insurance Agency, Inc., P.O. Box 130, Sauk City, WI 53583 State National Director ................................Steve Leitch Leitch Insurance - P.O. Box 85, River Falls, WI 54022 2018-2019 Board of Directors Mike Ansay, Ansay & Associates, 101 East Grand Ave. #11, Port Washington, WI 53704 Nick Arnoldy Marshfield Insurance Agency, Inc., 208 West 5th Street Marshfield, WI 54449 Mike Harrison R&R Insurance Services, Inc., 1581 East Racine Avenue Waukesha, WI 53146 Dan Lau Robertson Ryan & Associates, Inc., 330 East Kilbourn Avenue Milwaukee, WI 53202 Aaron Marsh Marsh Insurance Services, Inc., 11 East Newton Street Rice Lake, WI 54868 Marc Petersen American Advantage - Petersen & Assoc., Inc. 14785 West National Ave. New Berlin, WI 53151 Joanne Lukas Szymaszek Johnson Insurance Services LLC 555 Main Street Racine, WI 53405 Chad Tisonik HNI Risk Services LLC P.O. Box 510187 New Berlin, WI 53151 Pam Utpadel Universal Insurance Advisors, Inc. 100 West Lawrence Street Appleton, WI 54911 WISCONSIN INDEPENDENT AGENT
On The Cover… The IIAW will hold our 120th Annual InsurCon Convention May 15-17 at the Madison Marriott West. Jim Abbott, a major league baseball pitcher who was born with only one hand, will be our Keynote speaker, and WI comedian Charlie Berens will perform at our wrap party, along with many others during the convention. We will have opportunity for CE credits, networking events and our exhibitor hall. The schedule is still being finished, so head to IIAWConvention.com for up-to-date details and to book your hotel rooms. See you there!
> A DVERTISERS & INFORMATION
2018-2019 Committee Chairs
Integrity............................................................ 2
Agency Services............................................ Ruth Vorwald Johnson Insurance Services, 7401 144th Ave, Kenosha wi 53142
Keystone........................................................... 4
Automation/Technology................ Cathleen Christensen Hierl Insurance, Inc., Fond du Lac, WI 53937
AmTrust . .......................................................... 7
Emerging Leaders.................................................. Dan Lau Robertson Ryan & Associates, 330 East Kilbourn Ave, Milwaukee, WI 53202 Employee Benefits........................................... Mike Farrell David Insurance Agency, Inc., 1300 South Green Bay Road, Racine, WI 53406
EMC .................................................................. 6 CE Classes......................................................... 8 Pre-licensing Schedule . ................................... 9 Trusted Choice................................................. 16 Berkshire Hathaway GUARD............................. 17 Swiss Re E&O Coverage....................................18
Government Affairs............................................. Jeff Thiel R&R Insurance Services, Inc., P.O. Box 1610, Waukesha, WI 53187
Robertson Ryan.............................................. 25
Industry Relations............................................Janel Bazan Johnson Insurance Services, 525 Junction Road, Madison WI 53517
Badger Mutual................................................. 28
Membership & Marketing........................ Jamie Durocher Arlington/Roe & Co., 5530 Ryan Road, Houston, MN 55943
Partners.......................................................... 28 Western National............................................. 29 IMT.................................................................. 34 West Bend....................................................... 35 AAA................................................................. 36 DECEMBER 2018 | 3
“We feel Keystone’s services will help us differentiate ourselves from our competition. These tools, along with a few other recent initiatives we’ve taken, have us very confident for our future growth!” Tony Schiegg Green Bay Insurance President
Keystone is proud to welcome Green Bay Insurance Center to the Keystone family! They are in the midst of implementing a strategic plan to position their agency for rapid growth, and the timing of their alignment with Keystone could not be more perfect. Partnering your agency with Keystone provides you the tools that help improve and sustain your success. In the face of an ever-changing industry, agents need unified stability and strength. Because independence works better together.
CONTACT FOR MORE INFORMATION: Elizabeth Schenk 888.892.5905 | eschenk@keystoneinsgrp.com ©2017 Keystone Insurers Group ® All rights reserved. This does not constitute an offer to sell a franchise in any state in which the Keystone Insurers Group franchise is not registered.
INSURANCE BARTENDER
EXPECTED SUBROGATION RECOVERY* This month’s inquiry comes from Jeff in Waukesha. Jeff asks, “I am wondering why expected subrogation recovery is not factored into reserve estimates. By not factoring this in, it hurts our clients because they have higher than expected loss ratios along with higher than need-be experience mods (in the case of a WC claim). It also hurts agencies when it comes to contingencies.”
Good question, Jeff. I conferred with Tad Cleveland, Vice President, Technical Services for the Wisconsin Compensation Rating Bureau. Tad had the following to say, “When workers compensation subrogation recoveries occur for Wisconsin rated risks, the insurance company is required to revise all loss information back to the first year affected by the claim. The WCRB will go back to the first mod that was impacted by the claim involved in the subrogation recovery, and any subsequent mods impacted by that claim, and revise all the mod factors. Even if the year in which that claim was recorded has long since “rolled off” the mod calculation. NCCI, on the other hand (as well as possibly other independent bureau states), only revise the current mod and the two previous mods, if the claim involving the subrogation was part of those mod calculations. This includes interstate rated risks with Wisconsin exposure.” Thanks, Tad, for the assist and clarification on the subject.
IIAW CONVENTION Mark your calendars for May 15-17, 2019 at the Madison Marriott West for IIAW’s 120th Annual Convention. We have legendary pitcher and inspirational speaker, Jim Abbott, who is sure to inspire you as our keynote speaker, along with Wisconsin celebrity, Charlie Berens, of the Manitowoc Minute, for evening entertainment. We have plenty of CE seminars, along with a few innovation WISCONSIN INDEPENDENT AGENT
seminars, and a few special guests to be announced in the future. This is an event for everyone in the insurance industry - and one you won’t want to miss. Learn what it takes to become the agency of the future and what technology solutions you can begin deploying in your agency to drive efficiency and decrease expenses while creating a better customer experience. Visit www.IIAWConvention.com for more details.
From my family to yours, have a safe and wonderful holiday season and a successful 2019!
ON TAP In my next few columns, I will be discussing the Association’s solution to an agency’s technological, financial, workflow and automation challenges, as well as cyber security compliance. We have been hard at work talking with our members to identify pain points and develop solutions to meet the needs of our diverse membership. We have some exciting news to share that I believe will truly help our members re-position their agency for relevance and longevity in this era of insurtech uncertainty. *A previous virtual edition of this article had incorrect information published. Please disregard that article and refer to Tad Cleveland’s response for clarification.
Mason, Diana, Benjamin, Matt, and Dylan
> Matt Banaszynski is the CEO of the Independent Insurance Agents of Wisconsin. Contact him at matt@iiaw.com.
DECEMBER 2018 | 5
C oun t on us to be there, there ...
A strength that sets EMC apart from other insurance companies is the local service we provide. We cover policyholders in more than 45 states and we have 20 offices strategically located around the country. So when you partner with us, you not only get the stability of one of the country’s top insurance organizations, but you also get a familiar face close to home.
We look forward to seeing you soon.
www.emcins.com ŠCopyright Employers Mutual Casualty Company 2018. All rights reserved.
DISCOVER WHAT WE COVER.
We provide
BOP CybermoreLiability than Property General Liability Workers’ Comp
Commercial Auto
Employment Practices Liability Insurance
Inland Marine Commercial Package monoline coverage.
Get to know AmTrust. Discover what we cover at d20.amtrustinsurance.com AmTrust is AmTrust Financial Services, Inc. located at 59 Maiden Lane, New York, NY 10038. Coverages are provided by its property and casualty insurance company affiliates. In TX, coverage is provided by AmTrust Insurance Company of Kansas, Inc., AmTrust International Underwriters Designated Activity Company, Associated Industries Insurance Company, Inc., First Nonprofit Insurance Company, Milford Casualty Insurance Company, Republic Underwriters Insurance Company, Republic-Vanguard Insurance Company, Security National Insurance Company, Southern County Mutual Insurance Company, Southern Insurance Company, Technology Insurance Company, Inc., or Wesco Insurance Company. In WA, coverage is provided by AmTrust Insurance Company of Kansas, Inc., AmTrust International Underwriters Designated Activity Company, Associated Industries Insurance Company, Inc., Developers Surety and Indemnity Company, Milford Casualty Insurance Company, Security National Insurance Company, or Wesco Insurance Company. Consult the applicable policy for specific terms, conditions, limits, and exclusions to coverage.
CONTINUING
EDUCATION
IIAW ONLINE AND ON-SITE CE CLASSES JANUARY Date 7 8 10 10 14 14 15 16 17 23 24 28 29 30
FEBRUARY Date 4 5 5 5 6 7 11 11 13 19 19 20 21 25 27
MARCH Date 4 6 7 12 12 13 14 18 18 19 20 21 26 28
Course
Prelicensing Life & Health (onsite, Jan 7-10) Commercial General Liability Coverages E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two Prelicensing Property & Casualty (onsite, Jan 14-17) Business Auto Coverages Workers’ Compensation Farm Liability Coverages Ethical Dilemmas ... Making the Right Choices It’s Not My Fault, or Is It? - Liability Issues in Personal Lines Policies Cyber Liability 10 Things Every Commercial Lines Agent Ought to Know When the Child Becomes the Parent - Aging Parents and Insurance Decisions Personal Auto Policy
Course
Prelicensing Life & Health (onsite, Feb 4-7) E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two E&O: Roadmap to Policy Analysis - Part One Condominiums Contractual Liability ... Separating Fact from Fiction Prelicensing Property & Casualty (onsite, Feb 11-14) Insuring Toys and Collectibles Life Insurance ... Benefits for the Living Insuring Trusts - Protecting Your Client’s Wishes Ethics - Walking a Straight Line Additional Insureds and Certificates of Insurance Fiduciary Liability, ERISA Bonding, and Employee Benefits Liabilit Dispelling the Myths of Workers’ Compensation Homeowners Hot Topics - What You Need to Know
Course
Prelicensing Life & Health (onsite, Mar 4-7) Top 10 Countdown of Personal Lines Coverages & Current Issues Protecting Your Most Valuable Asset E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two Income After Retirement - Where Does the Money Come From? Business Auto Coverages Prelicensing Property & Casualty (onsite, Mar 18-21) Commercial Property Coverages - Exploring Key Concepts Ethics and Agent Liability It’s Not My Fault, or Is It? - Liability Issues in Personal Lines Policies Farm Vehicle and Equipment Coverages Lying, Stealing, New Types of Fraud: The Importance of Crime Insurance Businessowners Policy (BOP) ... Planning for the Unexpected
*TO REGISTER, PLEASE GO TO IIAW.COM*
Time
8:30AM-4PM 12-3PM 8-11AM 12-3PM 8:30AM-4PM 12-3PM 12-3PM 8-11AM 12-3PM 12-3PM 12-3PM 12-3PM 12-3PM 12-3PM
Time
8:30AM-4PM 8-11AM 12-3PM 4-7PM 8-11AM 12-3PM 8:30AM-4PM 12-3PM 12-3PM 8-11AM 12-3PM 12-3PM 12-3PM 12-3PM 12-3PM
Time
8:30AM-4PM 12-3PM 12-3PM 8-11AM 12-3PM 8-11AM 12-3PM 8:30AM-4PM 12-3PM 12-3PM 12-3PM 8-11AM 12-3PM 12-3PM
2019
120TH
AnniversaryYear
MAY 15-17 MADISON MARRIOTT WEST
MADISON, WI
The IIAW’s 120th Annual InsurCon Convention takes places this upcoming May on the 15th and 16th, 2019, Wednesday and Thursday. The full schedule is being finalized, with more speakers and topics being added, and will be released shortly. The convention will include:
a
peakers on innovation, technology, S industry relations, motivation, risk management and more
a
CE and Innovation sessions
a
CEO panel
a
lated lunch, hors d’oeuvres P and cocktails
a
Emerging Leaders social event at Cowboy Jacks Bar
a
xhibits and vendors, E networking opportunities
a
convention wrap party on the A 16th with Charlie Berens and evening entertainment!
REGISTRATION INFORMATION
HOTEL INFORMATION
Annual convention registration options are below.
All convention events take place at the Madison Marriott West, 1313 John Q. Hammons Dr., Middleton, WI 53562, (608) 831-2000. Rooms in our reserved block for May 15th and 16th are available now for reservation but will sell out, so book early. The last date to receive the block discounted rate is April 15th, 2019. If the block is sold out, rooms can be reserved at the nearby Comfort Suites, 1253 John Q. Hammons Dr., Madison, WI, 53717 (520) 257-3116. Please indicate that you are attending the IIAW Annual Convention to ensure the group rate. The hotel reservation deadline is April 15, 2019.
Option A F ull Registration, both Tuesday and Wednesday Early bird pricing: Member: $209 Non-Members: $249 After Feb. 28: Member: $249 Non-Members: $299 Option B Full Registration, Spouse $149 Option C T uesday Only Member: $169
Non-Members: $209
Option D W ednesday Only Member: $189
Non-Members: $229
Group reservations of 6 or more receive a 10% discount. This applies to full registrations only. For complete descriptions, please go to IIAWConvention.com. Cancellations received by April 15 will be refunded less a $20 processing fee. No refunds will be given for cancellations received after April 15. Attire is business casual for all convention events. Questions? Please Please call the IIAW at (800) 362-7441 or (608) 256-4429. Refer to IIAWConvention.com for the latest convention information and expanded details as they become available.
EXHIBITOR INFO Exhibitor registration fees are as follows: Early bird pricing: M ember registration: $850 Non-member: $950 After Feb. 28: Member registration: $900 Non-member: $1000 For complete details, and to register as an exhibitor, please visit IIAWConvention.com. Exhibitor fees include two registrations to the entire convention. As a friendly reminder, please conduct your agent entertaining during the designated company hospitality hours. Please email Kerry@iiaw.com with any questions.
2019
FEATURED ENTERTAINMENT & SPEAKERS Jim Abbott was born September 19, 1967, in Flint, Michigan without a right hand. He was an All-American hurler at Michigan; won the Sullivan Award in 1987; was the pitcher for the Gold Medal Olympic Team in 1988; and threw a 4-0 nohitter for the New York Yankees versus Cleveland in 1993. Jim played for 10 seasons on 4 different teams and ended his big league playing career in 1999. Abbott has worked with The Department of Labor’s Office of Disability Employment Policy (ODEP) on several initiatives encouraging businesses to hire people with disabilities. Today, in addition to often being a Guest Pitching Instructor during Spring Training for the Los Angeles Angels, Jim Abbott is a motivational speaker. MLB PITCHER JIM ABBOTT
Comedian, host, actor and Emmy-winning journalist Charlie Berens is a dynamic talent in the comedy world. Berens is the creator and star of the Manitowoc Minute. In 6 months, he transformed the viral video series into an hour-long variety show, selling out venues, sometimes within minutes. Charlie’s career extends beyond the Manitowoc Minute. From creating content for Funny or Die, TBS Digital and Fox Sports 1, to hosting shows for Fox, CBS Sports Network and Variety, Berens’ skill set proves invaluable in a rapidly changing media landscape of scripted shows.
COMEDIAN CHARLIE BERENS
Berens is regularly featured on Funny or Die. His comedic mashups including, “If Jack Dawson Was Really From Wisconsin,” have garnered more than 13 million views. Additionally, he performs stand-up around the Los Angeles area, and occasionally hosts events for Samsung and Variety.
Visit IIAWConvention.com for complete details
SALES
WHAT’S IN YOUR AGENCY’S SALES PLAYBOOK?
HOW TO HOLD YOURSELF AND YOUR PRODUCERS ACCOUNTABLE
We’ve been doing a lot of research and improving our programs that address what creates great producers and what it takes to cultivate million-dollar producers. It seems that every agency and most producers want to increase their sales. At least, that’s what they say. However, the recurring disconnect between what they say and what they do reminds me of one of my favorite Kenny Chesney songs, “Everybody Wants to Go to Heaven.” Of course, as the song says, “nobody wants to go now.” If you ask the average agency and producer how they’re going to increase their sales, their typical response is: “I’m going to sell more insurance.” Well, duh, I get that. But the question remains: How are you going to do that? I’m sure you’ve seen the TV commercials for a certain credit card that end with: “What’s in your wallet?” My question to agency owners and producers: “What’s in your sales playbook?” Back in my college football days, a playbook was given to every team member on the first day of practice each season. Whether you were an offensive or defensive player, you received a playbook that defined your duties and obligations to your teammates and your school. It laid out the plays you would run and your specific responsibility on each one. You were required to bring your playbook to every meeting, and you wouldn’t dare show up without it. Using the playbooks and videos (films back then), we were able to compare what we said we were going to do with what we actually did. That’s how we got better—by learning from our losses and replicating our victories. Without a playbook to debrief against, we wouldn’t have known what worked. Basically, it came down to game plans and actual execution. Based on my 35-plus years of experience in this business, I’d say the overwhelming majority of agencies and producers do not have a sales
12 | DECEMBER 2018
playbook. In fact, I’d estimate that fewer than 5% have one. As I’ve explained numerous times in these articles, as well as in my podcasts and presentations, the playbook describes your “set offense.” Basically, we’re looking to define how you will score points (i.e., make sales) when you’re playing the game of insurance. I believe that your agency’s sales playbook should consist of three main sections: Prepare, Play, and Stay. You must prepare to play the game, you have to play the game, and then you have to stay in the game. Before I share some of the strategies behind the playbook, I want you to understand that knowing what to do is the easy part. The hard part is actually doing it. This is not about winging it and becoming semi-successful. This is about having a true culture of accountability by which you and your producers are held to higher standards of performance. Think of the word “accountability” as the ability to obtain more accounts. I love seeing how a culture of accountability changes actual performance.
Prepare Your sales playbook should start with preparing to play the game. You might want to think of it as a pre-game warmup. Some of the basics are: Service Hand-Off (SHO) It’s essential to have a strong division between sales and service responsibilities. This frees up producers to focus on their job: selling. • The Producer’s Perfect Schedule The 12% Factor is a key to being in the game and scoring points. It specifies that producers spend 20 hours WISCONSIN INDEPENDENT AGENT
SALES a week (12% of the total week) face to face with clients, future ideal clients, and centers of influence. The goal is to have 10 sales-related appointments per week. Remember, every hole in the calendar is a lost opportunity to score points! • The Non-Optionals What are the non-optional behaviors and strategies that your producers commit to? What are the things they agree to do and be held accountable for? Unless you know the answers, you have no way to know if they’re fulfilling their commitments; every activity is something they can hide behind. • Future Ideal Clients (FICs).These are neither suspects nor prospects. Accordingly, producers should have an Account-Based Marketing (ABM) strategic plan for obtaining the first appointment with true FICs. • Networking Plan These are the specific events the producer commits to attend each week, month, quarter, and year (Chamber of Commerce gatherings, industry-specific networking events, professional seminars, etc.). The Law of Circulation is not only powerful but also is irrefutable. You have a much better chance of meeting someone if you’re out there circulating in the community than if you’re sitting in your office, aggressively waiting for the phone to ring.
Although this overview doesn’t include everything you need to do to prepare, it’s a good start!
Play Okay, prep time is up (not really, as it should be an ongoing daily activity), and now it’s time to start playing the game. That means it’s time to get out there and meet with FICs and COINs and start telling your story. Basically, this is an executive briefing in which you let them know that you provide something unique in the marketplace. We stress that you should have a story that covers the three Ps: the Purpose, the Process, and the Payoff. What’s the Purpose of your unique approach? (It’s not just to try to save them money.) What’s the Process itself (other than look, copy, quote, and pray)? And, assuming you take them through the process, what’s the Payoff to the FIC? Ultimately, why they should do business with you. I’m guessing that most of you are not too sure about that. That’s why I sometimes challenge owners and sales leaders to ambush their producers at the next sales meeting and ask them about the three Ps. Listen carefully to what they say—you may be shocked.
Stay
• Center of Influence Networking (COIN) Plan What kind of relationship management program will you have in place? The program’s centerpiece should be a schedule of proactive quarterly meetings with each of your 10 COINs.
The final phase is staying in the game, which means cultivating clients for life. Your goal is to achieve 100% effective retention while simultaneously growing your revenue. Staying requires a continuation process and a promise-keeping/exceeding model that will drive a great client experience.
• Points of Differentiation (PODs) What are the five PODs that separate you and your agency from your competition? What’s special about you? Why should people buy insurance from you? Unless you have a playbook, how do you expect to play the game other than through price-only selling?
As performance coaches to the best agencies and producers, we know that without a sales playbook and a culture of accountability you’ll be winging it at best. And you’ll still do semi-okay! But at the end of your career, I can assure you that you’ll have regrets about what you would have or could have or should have done.
• Practice and Rehearsal Plan Essentially, this is the producer’s personal improvement plan. As I was thinking about this article, another college football memory came to mind: our practice agenda. Every day before practice, we’d look at a schedule of where players needed to be and what they’d be doing. Every activity was scheduled in 15-minute increments. That way we knew where we needed to be at precisely what time, and what skills and drills we’d be practicing. I did the same thing when I was a Little League coach. At every practice, all my players knew where to go, what to expect, and what was expected of them. (Incidentally, we won the championship that year!)
There’s a good chance you’ve heard me talk or write about most of these behaviors and strategies in the past. If you’re one of the “I know, I know” folks who know what they should be doing but aren’t consistently following a sales playbook, you may not be on a winning team. Instead you may be like a kid playing sandlot ball, where team members huddle up just before a play and wing it. They’ve never practiced a play before they run it.
Your playbook must include a plan to hold scheduled practices and rehearsals every week. This dovetails with our belief that every opportunity deserves your very best. Finally, it’s critical to record your practice sessions. Thanks to ongoing technological advances in smartphones, tablets, GoPro cameras, and more, it’s never been easier, so there’s really no excuse not to document practices. Remember, you can’t change what you can’t see. And unless you are willing to record your performance, how can you improve? As I mentioned earlier, the vast majority of agencies and producers don’t have a playbook containing at least this core information. WISCONSIN INDEPENDENT AGENT
Are you content to sit on the sidelines, watching the big boys play? Or do you want to be a dominant competitor who wins the game? If you’re committed to selling even more, retaining even more, and earning even more, you’ll start with a sales playbook that becomes the foundation for your agency’s way of doing business. At the Sitkins Group, we provide an Ultimate Sales Playbook to the members of our Sitkins Network. If you’re interested in being one of the elite agencies with access to our Sales Playbook, or finding out how we help agencies Sell More, Retain More, and Earn More, visit our website at www.Sitkins.com. >R oger Sitkins, CEO of Sitkins Group, Inc., is the nation’s number-one “Agency Results Coach.” He established The Sitkins Network™, a territorial exclusive network of high-performing agencies, and The Better Way Agency, a web-based training program that shows agency owners ways to make significant improvements in all areas of the agency. To learn more, please visit www.sitkins.com and follow us on Facebook, LinkedIn, Instagram and Twitter.
DECEMBER 2018 | 13
GOVERNMENT AFFAIRS
DEMOCRATS WIN STATEWIDE RACES AMID RECORD TURNOUT; GOP HOLDS LEGISLATURE For the first time since 1986 when Tony Earl served as Governor, Wisconsin Democrats will control all five statewide executive partisan offices that include Governor, Lieutenant Governor, Attorney General, State Treasurer and Secretary of State. Meanwhile, Republicans in the state Legislature held on to maintain control of both houses. It has been nearly a decade since the last time Wisconsin had divided government with a Democratic Governor and a Republican controlled legislature. Democrats ousted incumbent Republican Governor Scott Walker and first term Attorney General Brad Schimel amid record midterm election turnout of almost 2.7 million, a figure that surpassed voter turnout in both the 2014 midterm and 2012 recall elections. Democrat School Superintendent Tony Evers and his Lt. Governor running mate, Mandela Barnes, defeated Scott Walker and Lt. Governor Rebecca Kleefisch by a narrow 50 to 48 percent margin, denying Walker a third and final term as Wisconsin Governor. It will be the first time since 1993 that Walker has not held elective office when his term officially ends on January 7, 2019. Evers received 147,000 fewer total votes than Democratic U.S. Senator Tammy Baldwin who won her re-election over Republican challenger Leah Vukmir, yet Evers was able to cross the finish line for the win. The Governor’s race was won with the narrowest of margins of just under 31,000 votes unofficially between the two candidates, making it one of the closest gubernatorial elections in more than 50 years. In 1962, the race was determined by less than one percentage point when Democrat John Reynolds won by 11,955 over
14 | DECEMBER 2018
Republican Philip Kuehn. E vers won 19 counties of mostly urban populated areas while Walker won 53 counties dominating especially in rural areas. Many factors went in to why Evers won the election, but one decisive reason was his significant margin of victory in Dane County. Dane Co. is the second most populous county in the state and a Democratic stronghold. Turnout for this election in Dane Co. is estimated somewhere between 79-83 percent overall. According to unofficial results, Evers won Dane Co. by nearly 151,000 votes (74.7 percent) which is 49,000 more than in 2014 (69.7 percent) in a race that was decided by only 31,000 votes. Another reason for Evers’ success is that Walker and Republicans did not perform as well in suburban Waukesha, Ozaukee and Washington counties as they did in 2014 to the tune of about 44,000 votes. In past election history, this region of the state has proved competitive with Dane Co. for total votes, but that did not happen in this election cycle. Since Trump’s election in 2016, the national trend has seen suburban voters that are primarily married, college educated women, dropping off for Republicans. This trend combined with the massive Democratic turnout in Milwaukee and Dane counties combined ultimately proved insurmountable for Walker’s reelection and is a note of concern for traditional Republicans. On the flip side, the trend from outside of these areas should be
of concern for Democrats who continue to perform poorly with rural voters. Also at the top of the ticket, Republican Attorney General Brad Schimel fell on election night to challenger Josh Kaul in an even closer race decided by just over 22,000 votes. Statewide polling ahead of the election showed Schimel with a lead, but Kaul closed the gap in the runup to the election. Kaul unseated Schimel 50 to 49 percent and he benefited from the coattail effect at the top of the ticket with Evers and Baldwin. Schimel now awaits the official canvass to determine whether or not he will ask for a recount since his vote margin is currently less than one percent. On the legislative side, despite what some expected could be an unfavorable midterm environment, Republicans protected their majorities in both chambers of the legislature and even managed to pick up a seat in the State Senate. Republicans won back the 1st Senate district previously lost in a June 2018 special election and will control the Senate 19-14. Senate Republicans re-elected Senator Scott Fitzgerald (R-Juneau) as majority leader and Senate Democrats re-elected Senator Jennifer Shilling (D-La Crosse) as minority leader. While it was widely expected that Republicans would keep their majority in the Assembly, they defied expectations by only losing one seat in southeastern Wisconsin, returning next session with a 63-36 seat majority. WISCONSIN INDEPENDENT AGENT
GOVERNMENT AFFAIRS
Nationally, Republicans kept the U.S. Senate while Democrats took the majority in the U.S. House for the first time in 8 years. In Wisconsin, there were no upsets or surprises in any of the contested congressional races. Incumbent Democrat U.S. Senator Tammy Baldwin easily retained her seat defeating her opponent State Senator Leah Vukmir (R-Brookfield) by a wide margin of 55 to 45 percent. Incumbents also won in seven of Wisconsin’s eight congressional districts. The only open congressional seat up for election this midterm was won by Republican Bryan Steil who defeated Democrat Randy Bryce in the race to replace retiring House Speaker Paul Ryan of Janesville. Between now and January 7, 2019 when Governor-elect Evers takes the oath of office, he will begin the process of formulating his transition team, staff and cabinet so he is ready to begin governing immediately after being sworn in. Outgoing Governor Walker graciously conceded on Election night and promised to work with the new administration on a smooth and orderly transition. IIAW and its partners would like to thank Governor Walker, First Lady Tonette Walker, and the entire administration for 8 years of dedicated public service to the citizens of Wisconsin. Looking ahead as we must do, what remains to be seen is if there will be gridlock for the next two years with a divided state government or if the new Democratic Governor and Republican controlled Legislature can find common ground. IIAW is ready to roll up our sleeves and get to work on behalf of our members.
> Misha Lee, IIAW Lobbyist WISCONSIN INDEPENDENT AGENT
DECEMBER 2018 | 15
SOCIALLY AWKWARD By Demarcus Johnson
Social media connects billions of people across the globe, provides a safe space to share original, creative, and political thought and, so far, has all but replaced face-to-face communication. Despite its advances, criticisms fill the air all too often that social media is “death to personal conversation” “susceptible to miscommunication” and even “makes us socially awkward.” But, let’s be honest. To NOT take part in social media is to be socially awkward, and a pitfall far too many small businesses fall into. And for those small businesses that dare to be a part of the cool crowd, some roam awkwardly through the social media sphere unsure of how, when, where or even why to connect with their social communities. For Trusted Choice® independent insurance agencies, social awkwardness isn’t an option. Being a part of the Trusted Choice brand means connecting with consumers where they are and when they want, which is why Trusted Choice offers a way for members shed their awkward shell and navigate social media with confidence and skill by reviewing their social media channels. Whether an agency just wants to dip a toe in or cannon ball fearlessly into the waters of social media, social media reviews gauge the agency’s performance, provide supplemental resources, and offer recommendations for improvement. Reviews provide a blueprint for developing an effective social media presence integrated with the agency’s other online properties and overall brand. From choosing the right platform and creating the page to developing a content strategy and engaging your followers, social media reviews dive into all aspects and features of each social media platform including: Facebook Twitter LinkedIn Google+
Youtube Yelp Instagram and more.
You see, you don’t have to be socially awkward. And if you’re a Trusted Choice independent insurance agent, you won’t be. Whether you’re a viral brand, an agency looking to advance socially or just aren’t sure how to get started, a Trusted Choice social review is the best place to start. Don’t be socially awkward. Get a Trusted Choice social media review.
All the Rage
Why is social media all the rage?
Because it: • increases traffic to your agency website; • generates online leads; • promotes brand awareness and loyalty; • offers a unique customer experience; • builds personal relationships; • allows for targeted marketing; • reaches thousands to millions of potential clients; • gauges consumer behavior and perception of your brand; • its free.
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Insurance Agents Errors and Omissions Coverage That’s Right for Your Business
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Big “I” Professional Liability program and Swiss Re Corporate Solu�ons pride ourselves on offering the strongest coverage form in the marketplace that con�nues to evolve to meet the changing needs of agents. Review the preferred policy form and you will find that these are just a few of the coverage benefits:
More premium discounts – Qualifying agents can save over 50% in premium discounts including the loss control, claims free, agency opera�ons improvement review, efficiency, and carrier concentra�on credits. Deduc�ble Savings – Loss only deduc�ble available along with deduc�ble reduc�on feature offering up to 100% savings of deduc�ble (up to $25,000) per claim with proper documenta�on. Ease of Business – Our qualifying policyholders enjoy the benefit of automa�c renewal available with no applica�ons along with online applica�ons when required. Claims Handling – Prompt and thorough claims handling by an experienced staff made up primarily of licensed a�orneys that stand ready to support policyholders with any poten�al incident or claim. Flexible Underwri ng – Targe ng agencies of all sizes and unique opera�ons including both P&C and L&H-only agencies. Capacity – Limits up to $25M Risk Management Tools – Preferred policyholders have FREE access to the exclusive website E&O Happens (www.iiaba.net/eohappens) and the E&O Claims Advisor Newsle�er Stability - Na�onally endorsed program with over 25 years experience and the largest and most stable independent insurance agency E&O program in the country, rated “A+” (Excellent) by A.M. Best. Exclusive - A Big “I” member exclusive policy form and premium credits filed on a Risk Purchasing Group basis give Big “I” members tailored coverage. Member Oversight - A Professional Liability Commi�ee including IIABA member agents oversees and directly influences the program. Our program was designed by agents for agents.
Rated A+ by A.M. Best State-of-the-art coverage form exclusive to Big “I” members Claims-made coverage with full prior acts available Coverage for the sale of both Property/Casualty and Life/Health insurance products Limits of liability up to $25 million Broad defini�on of covered professional services and ac�vi�es Comprehensive defini�on of insured Aggregate deduc�bles available Defense cost outside the limit $25,000 1st Party Personal Data Breach $1,000,000 3rd Party Personal Data Breach sublimit available 60/40 consent to se�le clause Crisis Management coverage; up to $20,000 per policy period for fees, costs, and expenses incurred within 6 months of a crisis event Deduc�ble reduc�on up to $25,000 per claim with proper documenta�on, no limita�on on the number of claims Catastrophe Expense $25,000 per incident, $50,000 per policy period Regulatory defense $100,000 per policy period in addi�on to the limit of liability True worldwide protec�on 10% premium credit for up to three years for proper comple�on of an approved loss control program 10% premium credit for five years for having an approved, voluntary in-house E&O audit
If you have any ques�ons please contact your state administrator.
Agent Advocacy - Supports lobbying efforts protec�ng your industry by contribu�ng a percentage of every premium dollar to the funding of important advocacy efforts of the IIABA.
The informa�on provided is for general informa�onal purposes only and you should review the policy form and any applicable endorsements for complete policy language. Please note that all applica�ons are subject to review, underwri�ng and approval by Westport Insurance Corpora�on, a member of Swiss Re Corporate Solu�ons.
ERRORS & OMISSIONS
FACTORS TO CONSIDER WHEN CHOOSING YOUR AGENCY’S E&O LIMITS It is very common for your customer to ask you - as their insurance agent - “How high should my liability limits be?” It’s about equally as common for a member of our Association to ask our E&O administrators, “Can you please recommend a limit of insurance for my E&O policy.” That is a great question - are your E&O limits adequate for your agency? Not properly addressing this question could be putting your agency at risk. If your carrier is only requiring limits of $1,000,000 in E&O coverage, this doesn’t mean that $1,000,000 offers enough coverage for your agency. Quality agencies should also recognize that this could influence their reputation if a client is wondering why they are being advised to purchase increased limits of liability insurance while your agency carries minimal limits for E&O coverage.
gauge the possible cost of a claim if they failed to procure coverage. This is especially useful since a leading cause in E&O claims is due to the agent failing to procure coverage. Commercial property schedules can be complicated, and an error in the valuation can cost millions of dollars. It makes sense that your E&O limit should be for the worst possible mistake an agency could make. When it comes to liability limits for customers, agency staff should be explaining the coverage, quote what was requested and then provide
As an agency owner, your most valuable asset is your agency and its people. Not properly insuring this investment could threaten the agency and the personal wealth you’ve worked so hard to build. Price is a factor that all businesses take into consideration, and an independent agent is no different. Unfortunately, if you focus on obtaining the lowest rate for your agency’s E&O policy instead of concentrating on the coverage provided, it could negatively impact you in the long run if your agency suffers a loss from an E&O claim. Independent insurance agents sell insurance to protect their clients but cheating your own agency on coverage can end up costing more than the money that was initially being saved when shopping based on price. You could start by looking at the types of risks your agency insures. Agencies that have books of business with a larger volume of commercial
quotes for limits in excess of what was requested. Errors & Omissions classes, and E&O defense attorneys, advise agents to quote the next higher limit, and possibly a few additional increased options. E&O attorneys will tell you that by quoting multiple limits of coverage above what was requested, the agency is much better off if the limits on the policy are not adequate if a claim were to arise. Insurance professionals who quote and rate liability insurance know that the cost associated with increased liability limits can be minimal. The additional premium amount to increase your limits may surprise you. Consider additional limits offered with your next E&O renewal and request additional limits after examining your book of business if your exposure is greater than the limits offered. It is also helpful to use benchmarking data to see limit and deductible amounts for agencies of different Gross Annual
accounts should examine the larger, or more complex, policies and
Premium (GAP) sizes. The chart below shows this data.
> Emily Mydlowski, Insurance and Member Services Coordinator at IIAW, She over sees and administers the E & O, Data Breach and EPLI programs to our members, emily@iiaw.com WISCONSIN INDEPENDENT AGENT
DECEMBER 2018 | 19
ERRORS & OMISSIONS
WHY E&O AUDITS FOR SMALL AGENCIES (OR ANY AGENCY) SHOULD NOT BE FEARED I’ve heard quite a few owners of small agencies avoid E&O audits because they feared the results would cause more damage than the benefits generated. In fact, beyond possibly minimizing future E&O claims, and I emphasize “possibly,” these owners did not see any benefit to an E&O audit. Thoughts like those trouble me because these owners are foregoing considerable benefits including, in some cases, significant discounts on their E&O premiums, helping their agencies run more easily, and definitely making their agencies safer from suits because their fears are so great. Fears often have the consequence of causing people to forego considerable benefit. Fears can be rational or irrational, it does not really matter and in agency owners’ situations, some of their fears are indeed irrational relative to E&O audits. Here are some of the fears I have heard and my response. I can only speak to how I do E&O audits and not others, so please do not read into this any universal promises. Concern: When the E&O carrier sees the audit results they will nonrenew my policy or at least jack up the rate. Reality: This is a possibility. I have only seen this happen once in 25 years but it was combined with a large E&O claim. Maybe without that large claim, the agency’s rate would not have increased or maybe without the audit but with the claim it would not have increased. The underwriter would not tell my client. With that one exception, rates usually decrease especially if the carrier offers a discount for completing the audit. They are pleased the agency is taking steps to minimize the odds of incurring a claim which means the agency is taking steps to increase the carrier’s profitability. The carrier understands that without an audit, the agency may be following potentially injurious processes (or lack thereof). The audit simply specifies which of those processes exist but they know a plan has been developed to fix them. This fear is somewhat akin to not going to the doctor. If I don’t go to the doctor, I won’t get a serious disease. Obviously that is wrong. If you don’t go to the doctor, you just won’t know you’re dying of a serious disease until it is too late to fix. E&O audits are quite similar. Concern: The procedures the auditor recommends only fit large agencies. Reality: If this is the result, get a different auditor. With a few exceptions that are almost always tied to group benefits and surety, the recommendations specific to a certain exposure are the same regardless of agency size, all else being equal. In other words, an exposure relative to proposals has the same solution regardless of agency size. Can large agencies institute the solution more easily? Sometimes they can because they have more resources but quite often in my experience, their size is more of an impediment than a benefit. Large agencies have to get so many layers of management to approve changes that improvements take forever. Then, almost inevitably, someone has a personal stake in leaving
things the way they are even if that way is wrong. The reality is that what makes a difference is the level of leadership and commitment to becoming a better agency without regard to agency size. Concern: I will not have enough time to implement the auditor’s solutions which will cause a problem with the underwriter. Reality: I have never seen this happen if the agency works diligently. Even when the agency did not get everything done but could show the underwriter they were working hard, the underwriter has given them more time. I cannot speak for all underwriters everywhere, but they generally seem pleased to see significant improvement even if it takes longer than expected. The exception is the agency that does not do anything until the deadline approaches. Concern: I will have to institute the auditor’s recommendations. Reality: This is generally true unless the agency can make the point the auditor misunderstood the situation. In other words, if the auditor has correctly identified a material exposure, why would an agency owner refuse to implement a reasonable solution? I have met several agency owners who have advised that if they personally have to abide by rules that reduces their E&O exposure but takes away their freedom to operate however they want, it is not worth it to them. That is a personal choice and generally a bad business decision, but it is yours to make. Concern: Procedures will reduce profitability/efficiency. Reality: This is not true unless an agency is cheating, unethical or so sloppy they are lucky to not have already been sued out of business. Good procedures reduce E&O exposures and increase efficiency, at least the way I recommend procedures be instituted. During the transition, productivity is affected but a few months, sometimes only weeks, of extra work is worth a decade of extra efficiency. The reason good procedures benefit E&O and efficiency is because CSRs can operate more quickly since they do not have to look as hard to find data, they get the data they need the first time and because they see the agency being run fairly because everyone has to follow the same rules. It is not unusual for my clients to increase productivity at least 10%. Concern: The auditor will identify an exposure but not a practical solution. Reality: I ALWAYS provide a workable solution. Sometimes an agency owner
None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this article. Regulated individuals/entities should also ensure that they comply with all applicable laws, rules, and regulations.
20 | DECEMBER 2018
WISCONSIN INDEPENDENT AGENT
WIN-WIN
ERRORS & OMISSIONS
3 WAYS TO INCREASE SALES WHILE DECREASING E&O CLAIMS How often do you hear about a customer suing their car salesman for not selling them a new car, or for selling them a car that lacked all the bells and whistles? Selling and servicing insurance is not like selling and servicing other products. Here are three ways to avoid errors & omissions claims through smart sales practices: 1) Offer all coverages that would commonly apply to the exposure, and that your agency normally handles. Do this even if you know the client won’t buy all the recommended coverages, and even if you think you won’t be able to offer a price your client will find attractive. Why? After a loss, it is not unusual for a policyholder to testify that they don’t recall being offered the coverage in question—and they’re being honest! They really don’t remember that conversation years ago. What they know for certain, though, is that they would have purchased that coverage if only it had been offered. Consider using exposure checklists and questionnaires. You can find sample checklists by logging in to the E&O Happens website (iiaba. net/eohappens) with your Big “I” credentials. Always have your client initial or sign off on offered coverages, and then make a note in your agency system. Or, better yet, send a letter con-firming the client’s rejection of any important coverages. And if you don’t normally handle a certain type of coverage, suggest your client go to another agency for that coverage and document that in writing. 2) Offer higher limits, but don’t take on the responsibility of evaluating the sufficiency of those limits. Make it clear to your client
that you are not choosing the limits, because they are in the best position to know the value of their property and exposures. If you’re still uncertain about the quality of your information, offer several limit options, erring on the high side with at least one. If applicable, tell your client that a co-insurance penalty could apply if they do not have sufficient limits, and always inform your client that they have the option to purchase higher limits. 3) Review the application, quote, proposal and policy to find discrepancies. It is best to have your client complete the entire application. If that is not practical, your standard procedure should involve asking every question in the application and having your client initial each page and/or important items, then sign and date it. If you have your client’s prior policy, identify and address any differences. Make sure the coverages requested in the application match the coverages quoted in the proposal and issued in the policy. If you find any differences, address them immediately with the carrier, any upstream broker and your client. These practices will all require extra effort on your part—but so do E&O claims.
> Caryn Mahoney is an assistant vice president, claims specialist with Swiss Re Corporate Solutions and works out of the Chicago office. Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re.
This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. Copyright © 2018, Big “I” Advantage, Inc. and Westport Insurance Corporation. All rights reserved. No part of this material may be used or reproduced in any manner without the prior written permission from Big “I” Advantage. For permission or further information, contact Agency E&O Risk Manager, 127 South Peyton Street, Alexandria, VA 22314 or email at info@iiaba.net.
may not like the solution but that is different from providing a workable, reasonable solution. A few exposures exist where an agency principal may not understand how to implement a solution which is different from the auditor not providing a solution. A good and simple example is a coverage rather than a procedure. Business income is a coverage that I find many agencies avoid discussing with clients in detail because they simply do not know how to discuss it. If an auditor makes a recommendation and you simply do not know how to deal with it, ask. I can only speak for myself but I am happy when agents ask for more help because it means they want to improve. Another example involves factors like creating proper contracts and following certain rules where owners and producers regularly argue they should not be required to follow the auditor’s recommendation because it will cost too much money. I cannot judge what “too much money” means to any given person. However, a claim is likely to cost far more and these steps almost always bring additional benefits. One of the best benefits of a good E&O audit that is followed, is the agency becomes more professional in a completely positive sense. The result is an agency that is easier, not harder, to manage. WISCONSIN INDEPENDENT AGENT
Concern: An E&O audit, if followed, will reduce sales. Reality: Agencies that actually follow the recommendations, at least the way I do audits, almost always increase sales. A common reaction a year or two later is, “I didn’t believe you and I didn’t want to believe you when you said your recommendations would increase sales, but they did.” Does the sale take more time? Yes, but the agency makes more money, builds a better client relationship and reduces E&O exposures. Does the sale potentially require more knowledge? Yes, but that is why clients and carriers need agencies. If they do not need on-the-ground knowledge, they can sell just as effectively, for less money, through the internet and 800 numbers. n E&O audit results in entirely positive results if an agency embraces the opportunity to improve its services to clients, decrease its E&O exposures, increase sales, and often improve the workplace environment for its staff.
> Chris Burand is president of Burand & Associates, LLC.
DECEMBER 2018 | 21
TECHNOLOGY
YOUR MANDATE: EMBRACE, LEVERAGE INSURANCE DATA ANALYTICS USE INSURANCE DATA TO GROW The continued proliferation of mergers and acquisitions involving insurance agents, carriers and MGAs underscores the fact that leaders in all sectors of the industry are focused on growth. Besides exploring and pursuing M&A transactions, many of these organizations are looking at new ways to drive their organic growth as well. As a result, agencies, MGAs and insurance companies are all looking at new ways to leverage big data to identify growth opportunities within their existing books as well as areas to target for expansion. In fact, the latest emphasis is the next move along a continuum of technology innovation in the insurance sector that now spans nearly four decades. Indeed, the latest generation of insurance technology platforms represents a culmination of the succession of past innovations that have made insurance agencies increasingly more efficient and productive — often to the benefit of their growing and evolving clientele.
Looking back For the most part, the relationship between insurance agencies and information technology dates back to the early 1980s. That’s when the advent of agency management systems helped usher in automated rating, proprietary interface and t-filing. These systems have evolved over time from a suspense and accounting system to include automated workflows and robust document management. During the next 20 years, many new technology-related developments will be introduced and embraced by insurance agencies — beginning with ACORD download standards (including Policy Download, which automates the population of exposure data in the agency management system and Claims Download). The latter was truly a game changer in that it allowed agencies to better support their clients when a claim arose — especially with respect to claims that were directly reported to insurers, which otherwise would have left the agency uninformed.
22 | DECEMBER 2018
ACORD XML was also developed later in this time period. This provided Real Time capabilities, such as rating and inquiries that continue to grow in usage every day. Both Download and Real Time capabilities and tools helped drive efficiencies and streamline agency operations, including enabling agencies to become paperless and carriers to reduce costs of mailing insurance documents to agencies.
Assessing current breakthroughs Today, the latest breakthroughs in insurance technology involve the expanded use of data analytics by agencies, MGAs and carriers. For more than three decades, insurance agencies of all sizes have been inputting or downloading data into agency management systems. Nowadays, they are finally realizing they can leverage much of the data they’ve been accumulating on a continual basis to grow their business. For instance, many agency executives want to identify opportunities to increase commission rates and cross-sell their current clients. They want timely insights about which insurance markets have an increased appetite for writing specific lines of business or targeting their growth strategies to individual industry sectors. They also want to gain intelligence for benchmarking purposes on rates other clients in similar locations or comparable industries are paying, as well as what products and limits are they purchasing. Within their own organizations, agency executives and sales leaders want a better understanding of what drives their revenue growth, as well as what revenue sources are contributing most to the firm’s profitability.
Leveraging data to drive performance and growth Meanwhile, insurance carriers and MGAs want access to agency data so they can grow their business in the most efficient, productive and profitable ways. They now want analytics on what industry sectors are generating the fastest premium growth, what types of insurance products are being purchased, and geographic regions seeing the highest growth rates. This data, in turn, will enable them to design custom insurance programs or expand their current books of business. In addition, they want the opportunity to connect more effectively with individual agencies that serve the niche businesses and industries they are targeting. Today, new technology platforms are providing the analytical tools that agencies, carriers and MGAs need to serve their clients more effectively and grow their business in the most efficient manner. Indeed, these platforms are delivering answers to critical questions raised by executives at all levels in agencies, insurance companies and MGAs faster and better than ever before. At the same time, they are helping unveil new and exciting opportunities to grow their business, drive operational efficiency and enhance their client service. Without question, the latest technology is the next “big thing” in insurance, and the industry at all levels needs to embrace it and leverage it to enhance everything from their daily workflow to their near-term and long-term strategic objectives.
> Donna LaGoy WISCONSIN INDEPENDENT AGENT
TECHNOLOGY
EARNING BUY-IN ON TECHNOLOGY IN YOUR INSURANCE AGENCY If you’re like many agencies across America, you would love to embrace new ideas and improve your customer experience by embracing technology. However, all too often agency owners are met with resistance from the team in adopting modern strategies. For some they move forward, and the agency becomes a hostile environment, others don’t engage simply because they understand the uphill battle they are likely to face and well, it’s just easier to keep things as is… for now. So how do some of the top growing agencies in America get their team motivated and embracing technology? Let’s start this conversation by clearly understanding both parties’ fears, uncertainties and doubts or as we like to call it “FUD.” For the team member you are asking to change and adopt new ways of working they are fearful of not understanding it, being able to explain it to the clients and/or just making a mistake that costs the client, team and agency. This fear draws a great deal of uncertainty. For many insurance agency team members their job is to “underwrite” risk, so to them everything is a risk. This mentality has been built up over time unfortunately, so they see everything as a risk not taking (including new business, producers or even cross selling). For many team members they identify if they personally would like the new technology used on them as a consumer. This is where you hear things like “Well, I get too many emails as it is” or “I don’t want people texting me” or even something as simple as “if I don’t have the physical paper I won’t know what’s happening.” These are all reactions to their personal opinions vs. facts. The idea that 1 client out of 1000 may not be happy about a change or launch of new technology is where their mind focuses, rather than the 999 that are happy or neutral. Finally, we bring doubt into the equation. For most team members with reluctance they doubt that it will stick, be used or executed. If your agency’s culture is not driven to embrace new technologies and processes, it will have a ripple effect throughout your business – Business partners take it more as a recommendation for use of the technology than requirement. As you can see most of the resistance comes from short-term “today” thinking. They are concerned that the time it will take to learn something new will be such a disruption to their day-to-day operations and oftentimes set them back on what they consider an already grueling workload, that it’s simply not worth doing. Staying the same is the easiest path until the world changes around you. So how do you, the owner or team leader, overcome major resistance from your team? It all starts with a great plan. In working with the top agencies across the country we have found some significant strategies that help you earn adoption and buy in.
for the future but there could be some mainline technology issues that are holding your team back that you aren’t aware of yet. Things like a faulty printer or scanner, the bridge between your management system and the companies not working; or the team not understanding the most efficient ways to run rating software. Why start adding more when you probably need to do a technology audit first to find the biggest challenges and start working on them? Once you clean up your operation you can bring ideas to the technology committee for review and consideration. You obviously have the final say however, getting everyone’s feedback and buy in helps with the launch.
System Matter Expert (SME) In your agency you need a SME for every piece of software or technology. This is your go-to person on this one area. They are in charge of updates, training and teaching people how to best use the systems. When there is an expert on the floor using the systems with the team, you get much greater buy-in. The team is happy to ask them a question rather than bothering you!
Launch Plan & Party One way we often miss opportunities to effectively launch new technology is we have a meeting. We ask people to take an online demo and then expect it all to work. Your expectations are just plain wrong (sorry). You need to invest time in a launch plan as a team. What training will you take and when? What’s the launch date? How many meetings will you have? From there you can plan a launch party. Why have a meeting? Meetings are boring. Instead have a launch party with balloons, music and make it exciting. When the team is having fun, the buy-in follows.
Accountability & Incentives
As an agency leader you are online reading, being an active part of
If you are launching something new there needs to be routine accountability to determine 1) Is it being used, and 2) Is it being used accurately? If we meet both of those criteria, we are winning. Nothing gets buy-in quite like incentives. Rewarding people for going out of their comfort zone, learning something new and adopting your way of thinking is completely reasonable. Make sure the incentive is something that they want, not just what you want. Most people don’t love to change so when you announce change, you need to make sure you explain the why, the plan, your expectations and the incentives. Combining this all together makes for a winning launch.
industry groups and listening to your peers. For many agency team members, they are far more isolated. So YOU see the “why” because YOU are immersed in it. You may also be trying to better the agency
> Kelly Donahue-Piro, President of Agency Performance Partners and Co-Founder of Agency Appeal
Assemble a Committee
WISCONSIN INDEPENDENT AGENT
DECEMBER 2018 | 23
COMMENTARY FROM COUNSEL
WISCONSIN ADDRESSES THIRD-PARTY LITIGATION FUNDING WITH NEW DISCLOSURE REQUIREMENT
Perhaps you have heard, or read, about third-party litigation funding (or litigation finance) - a financial accommodation through which an outside company covers a litigant’s legal fees in exchange for a piece of the proceeds. The industry is experiencing explosive growth and has received attention from, among others, the Wisconsin legislature.
In this month’s column, we will take a look at the industry and how the State of Wisconsin has chosen to shine light on it.
The Rise of Third-Party Litigation Funding While the nascent industry lacks transparency, and concrete numbers are therefore hard to come by, sources estimate the industry as a whole has surpassed $100 billion. A 2017 survey reported that 36 percent of law firms
request, provide to the other parties any agreement under which any person, other than an attorney permitted to charge a contingent fee representing a party, has a right to receive compensation that is contingent on and sourced from any proceeds of the civil action, by settlement, judgment, or otherwise.” Importantly, this provision - for which the U.S. Chamber of Commerce was a leading advocate – requires production of litigation funding agreements at the inception of litigation (and without any formal discovery),
had used litigation funding. The details of litigation funding arrangements can vary, but they usually share common characteristics. An outside company – usually one of a small handful of key players who dominate the industry – agrees to pay the litigation expenses for the party to a lawsuit (or a prospective one) on a non-recourse basis. In exchange, the funder is entitled to a portion of the ultimate judgment or settlement obtained in the case. Financing is often arranged directly with the litigant, but law firms are taking an increasingly active role in arranging the funding. Certain types of claims and lawsuits are more amenable to litigation finance; it is more likely to be used in high-risk, high-value claims. According to a survey conducted by one of the largest litigation funders, Burford Capital, the average value of a financed claim was $33.5 million, with the average amount of funding equaling about 10 percent of the assessed value of the claim.
does not require judicial supervision or management, and does not address, or provide any protection for, the potentially privileged aspects of litigation finance agreements. The law does not apply to traditional contingency fee arrangements solely between lawyer and client. Further, unlike disclosure rules that have been devised or proposed in other jurisdictions, Wisconsin’s law does not distinguish between litigation funding agreements involving commercial entities and those involving plaintiffs in putative class or representative actions.
Litigation funding has been provided both to large, sophisticated commercial entities in commercial litigation, and to individual (or putative class) plaintiffs in consumer litigation. Litigation funding to plaintiffs is more common, since their claims generally have defined outcomes in terms of dollars recovered, from which the funder can claim its share. However, third-party funding has also been provided to defendants, although it is less common and more complex because it is harder to define a favorable outcome for which the funder would be entitled to a pay-off. There are several potential reasons for the increasing popularity of litigation finance. For companies and law firms, a lawsuit paid for through litigation funding is more conducive to an alternative fee arrangement with litigation counsel, and helps companies fund litigation for which they would otherwise be fronting significant fees on an hourly basis. For investors, litigation funding is often seen as a somewhat risky, but provides a more lucrative return opportunity in a low-yield environment. Critics of litigation funding, however, say that it increases both the frequency and cost of litigation, that there are agency or moral hazard risks, and that it is largely unnecessary because businesses are capable of evaluating and funding their own claims when they are meritorious.
disclosure of litigation funding agreements, some federal district courts have promulgated local rules requiring disclosure. The North District of California, for instance, requires disclosure of litigation finance agreements but only for collective or representative actions. 24 of the 94 federal district courts have local rules requiring disclosure of outside parties with a financial interest in the litigation. While these rules do not single out litigation finance, they arguably apply to litigation funding arrangements. Other courts have reviewed funding agreements in camera (i.e., only the judge could review it), or required production of litigation finance agreements in discovery, but permitted redaction of content covered by the work product doctrine. At the congressional level, in May 2018, the Litigation Funding Transparency Act was introduced in the U.S. Senate, which would require production of any litigation funding agreement within 10 days of execution of the agreement or upon filing of the lawsuit. The proposed bill has not yet advanced in the Senate, and, given the recent flip of control of the House of Representatives, may not have a bright future. However, at the state level, the Chamber of Commerce, which lobbied for Wisconsin’s disclosure law, has promised to advance the cause in other jurisdictions.
The Wisconsin Disclosure Rule On April 3, 2018, Wisconsin became the first state to require disclosure of third-party litigation arrangements when it passed Wisconsin Act 235, a law which included a number of reforms to Wisconsin civil procedure to make litigation more efficient and business-friendly. The new law provides that “a party shall, without awaiting a discovery
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More Disclosure on the Horizon? While Wisconsin is the first state to require disclosure of litigation funding arrangements, courts around the country have already weighed in, and new requirements are in the works at the state and federal level. For example, while the federal rules of civil procedure do not currently require
Litigation funding’s growth will no doubt be accompanied by additional calls for disclosure and other regulatory and judicial scrutiny. In passing Act 235, Wisconsin is at the leading edge of the curve, and parties’ management of (and litigation over) the disclosure obligations in our state may very well drive legislation, regulation and judicial decisions around the country. > Josh Johanningmeier WISCONSIN INDEPENDENT AGENT
GOVERNMENT AFFAIRS
ALL GOOD THINGS MUST COME TO AN END As we head into a busy holiday season and close out the year, I’d like to thank you for your support, friendship and kindness. My team and I have truly been blessed with an incredible insurance marketplace in Wisconsin. We’ve been honored and humbled to serve as the chief regulators of such a fine industry – an industry working locally, regionally, nationally and internationally to provide insurance solutions, security and peace of mind to millions of individuals and businesses. You are the engine that allows risk-taking and is there for when the worst occurs.
I’d be remiss if I didn’t thank Governor Walker for his confidence in me. With his trust, we were able to run and reform the department, enabling you to provide insurance solutions that best serve your customers. I’m proud to know our outstanding department staff is well qualified to continue this open and transparent interaction on any given issue moving forward.
I’ve had the honor of representing you and Wisconsin’s Insurance story nationally and internationally. Your financial strength, insights and innovative solutions are second to none! Together, we’ve worked hard to update laws, regulations and bulletins to continue a competitive marketplace and serve consumers by providing them with a myriad of choices.
Thank you for the incredible ride. It’s been the best job of my life and I will treasure the experiences and friendships made along the way. Merry Christmas and Happy New Years to you and yours! > Theodore K. Nickel, Commissioner
Cheers
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How we grew from 28 Producers to 95 Producers. Q: What markets do you have?
A. As the largest independent agency in Wisconsin, RRA has strong carrier relationships. We offer over 50 CL, 30 PL and 45 EB carrier partners.
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A. Yes, we offer one of the strongest returns to Producers. We pay all office costs including staff salaries. You continue to own your business/book but enjoy all the advantages of being with a larger agency, including profit sharing.
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A. Producers can share in ALL contingencies. Because of our size, our contingent return is more predictable and stable to our Producers.
Q: Do you have a solid perpetuation plan?
A. Scaling back hours, retiring or planning for the unexpected should be a priority. We help connect Producers with similar interests and backgrounds to develop a buy/sell plan where they are comfortable.
Q: What technology resources do you offer?
A. A dedicated IT department ensures technology resources are performing and the latest tools are being reviewed. We operate on Applied Epic and offer Zywave, AcuComp and HR Workplace Services.
Q: Who owns the book?
A. Simple, the Producer maintains 100% ownership without a non-compete.
Learn More: Chris Illman I cillman@robertsonryan.com I 800.258.0277 I www.RobertsonRyan.com
WISCONSIN INDEPENDENT AGENT
VIRTUAL UNIVERSITY
ASK AN EXPERT
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broader than the underlying. Many carriers write excess coverage as part of a home/auto package. These are probably “following form.” Compare the exclusions on the umbrella/excess policy with the underlying policies. Are they the same or are there exceptions to exclusions that provide broader coverage? Is there a self-insured retention? If so, it’s probably an umbrella. An excess policy doesn’t need an SIR because it’s not broader than the underlying. Is it a stand-alone policy with its own declarations page, insuring agreement, exclusions and conditions or is it an endorsement to an auto/home package? What is the premium? If it’s $150, it’s probably an excess policy. If it’s $450, it’s probably an umbrella. You really need to read each form to know the difference.
Umbrella or Excess Policy Without thoroughly reviewing the underlying policies and the umbrella/excess policy, what is the best way to figure out if an umbrella policy is in fact a true umbrella policy or is actually an excess policy? Carriers use these terms interchangeably on their forms and I wanted to know if there was an easy way to distinguish the two. It’s regrettable that the companies use the terms interchangeably; I’d call them on that! As a general rule (as much as is possible with these non-standard forms), umbrella policies “open up” (like umbrellas) to provide coverage that is broader than underlying forms. Excess policies provide additional limits, but they go straight up over underlying limits and increase only the amount, not the scope of coverage.
----Since these forms are non-standard you need to look at definitions exclusions and conditions to determine whether it really is an umbrella or an excess. A lot of umbrellas today are really hybrids since often times they are following form on some of the exposures such as pollution or liquor. There is no easy way to evaluate these forms without careful review.
----No, there is no shortcut on this. You need to review the schedule of underlying policies and the terms and exclusion of both excess or umbrella policies. Differences on endorsements - AI, Primary wording, and other items - should also be considered. I have seen umbrella policies for an offshore oil company exclude all operations over water, absolute liquor liability exclusions for a whiskey distillery and other examples.
----There is no substitute for reviewing the umbrella/excess policy to determine if it is a following form policy.
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You are correct – carriers will use a variety of terms to describe their umbrellas, and all umbrellas are not equal. And, just as you had feared, you must read the umbrella policy to determine what coverage is provided. Sometimes (but not always), a “true” umbrella is indicated by the umbrella having its own insuring agreement. Another simple way is to compare the exclusions to the underlying policies. Check the coverage territory as it applies to auto liability. Look at the definition of bodily injury and/or personal injury. Those are a few of the areas you should examine. Another indicator is when the umbrella says there is no deductible or no “self-insured retention.” This usually is because there is no broadening of coverage from the underlying (but not always). Look at it this way, if your agency has about six umbrella carriers, then you only have to read six policies. As you examine each of them, make notes so that you remember next time.
First, you’re right that carriers all too often use the two terms interchangeably and, unfortunately, incorrectly. Also, unfortunately, there is no easy way for an agent to determine the differences. You need to read all of the carriers’ umbrella/excess policies available in your agency and compare them. A number of years ago, I developed a spreadsheet comparing the umbrella coverages provided by the 10 to 12 primary carriers in our agency. The differences were startling, and two carriers’ forms clearly stood out. We then did the same thing with PL umbrellas with the same results. If you want the easy way out, just refer to the coverage as excess liability and forget about calling it umbrella coverage. Most clients are only interested in getting the higher limits and the term “umbrella” doesn’t resonate with most. Not a great answer but given what you’re asking it’s the best I can offer.
----You’ve got to read the entire policy. Even some policies purported to be umbrellas are not “true” umbrellas for all underlying liability coverages, but, rather, become straight excess for some of the underlying liability coverages. So, they have elements of both umbrella and excess. There is no “easy” way to distinguish among these policies, in my opinion. ----This is not an easy question to answer. Are you referring to personal lines or commercial lines? What distinguishes an umbrella policy from an excess policy is that the umbrella provides broader coverage in some situations. Many excess policies are “following form,” i.e. they follow the underlying forms’ coverage and exclusions. It is not
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Husband Requests Wife Be Removed from PAP We were contacted by a husband requesting that we remove the wife who is a named insured, from an auto policy. They currently live in the same household. All vehicles are titled in the husband’s name. The husband requested we provide a form to have the wife sign it removing her as a named insured, but she would still be listed as a driver. As an agency, what is our responsibility to the wife. DO NOT FULFILL THE REQUEST! Explain to the husband the legalities of your decision to not comply with the request. We ONLY fulfill when we have a copy of the final divorce decree from the court. ----The agency standard should be, when insuring married couples, both spouses should be named insured on all policies (auto, homeowners,
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26 | DECEMBER 2018
WISCONSIN INDEPENDENT AGENT
rentals, boats, RVs, motorcycles, umbrellas, etc.). It does not matter who the home is deeded to, who has the mortgage, who owns or leases the car, etc. In almost all personal policies, the named insured becomes “you” and has more rights and coverage than simply an “insured” under the policy. The ISO policies automatically considers a resident spouse “you”, even if not named in the declarations. The key here is resident spouse. So, if the wife leaves the husband, her status as “you” would end, and she would lose rights and coverage under the policy. You don’t say why the husband wants to do this. We have seen this with wealthy insured’s (who married wife #4 or maybe #7) and had a pre-nup and didn’t want her to get her paws on anything at the time of divorce. We still would not remove the spouse. So, you need to ask the insured what he hopes to accomplish. Because if she is a resident, she is still “you” if not named in the declarations. If they are separating, then more than ever you don’t want to remove her and take away her rights and coverage. And what would you give her to sign? It had better say something like, “I acknowledge that by signing this I will be giving up rights and coverage under this policy,” and she would need to be dumb as a rock to sign something like that. For the sake of protecting your insured (and your E&O exposure), do not agree to such a request.
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----I would not remove her without other steps first - to protect both the clients and to protect your agency from an E&O. Dependent on your agency’s relationship with the client, the producer or agency principal could call and ask why - to determine if there is some other issue that is better dealt with in a different manner. And that person could explain how much significant coverage would be lost across the policy coverages. Then if the husband still insists I would send a letter confirming what was discussed and decided and have them both sign the letter and notarize it. ----You need her permission to remove her. Don’t make changes reducing coverage without the permission of all named insureds. Although she would not be a named insured she would still qualify as “you” but only as long as she resides with her husband – at least this is true to an ISO PAP. Your insured should not be giving you coverage advice. Your job is to give him coverage advice. Removing her as a named insured does not reduce the premium but could reduce the coverage. Is your E&O premium paid up? ----As a named insured, she needs to authorize the change. Do they understand that this potentially reduces her coverage? ----Since they are married she owns the vehicles. It makes no difference who registered the auto as a married couple they both legally own the vehicle. Removing her as a named insured from the policy will not change the “who is an insured” provision. It includes the named insured and their resident spouse. I have no idea what the husband thinks removing her name will do but since she owns the autos she can be sued. Why would he be trying to eliminate her from coverage since, if he could accomplish that just be removing her, their personal assets would be on the line should she be named in a suit arising from a covered loss. That is why the “who is the insured” automatically includes an unnamed spouse as an insured. WISCONSIN INDEPENDENT AGENT
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Adding Language to a COI We insure a small commercial GC that is entertaining the possibility of performing work for a large local school system. The school system/ owner is asking for some language on the COI that I have concerns about. First, the owner is asking for the following clause to be inserted into the COI: “The insurance company is prohibited from pleading government function in the absence of any specified written authority from the Board of Education….” I am not sure that this one is an issue. However, the second clause they are requiring reads: “The policy(s) will automatically include and cover all phases of work, equipment, persons, et cetera which are normally covered while performing work under the above contract, whether specifically written therein or not.” This language bothers me because of the “whether specifically written therein or not” statement. It seems to be asking the insurance agents to effectively amend the policy(s) to include coverage for whatever the owner darn well wants the policy(s) to cover. I fear that this sort of request violates state law, in that it is asking me - as the licensed agent - to insert language that changes the policy, and thus I as the agent has violated state law. If I am coerced by owner’s requirement, then the owner is a participant in the insurance fraud, no? Now, I would not commit insurance fraud, so I wish to approach the owner/school board and advise them that their language is tantamount - in some way, shape, or form - to insurance fraud. Is this insurance fraud? An agent should never add any language such as this to a COI. If the change is absolutely necessary, you should seek an endorsement to the policy from the carrier, though the request is likely to be rejected as this language is overly broad and potentially troublesome. ----I would send this to the carrier. You don’t want to misrepresent coverage. I had a situation where one state department said they were not subject to the Department of Insurance regulations. Don’t put yourself in the middle. These requirements apply to your insured. You can only certify applicable coverage. That’s why the COI makes so many references to the policy. ----It’s not insurance fraud, it’s a misguided attempt to use the COI to create certainty that cannot be created. A COI can only be used to report what is in the insurance policy and since this language is not in the insurance policy (I can only assume), you can’t put it on the COI. You may want to mention to the school that if they are getting this wording on other COIs that such wording IS fraudulent unless the agent can show proof of such language in the insurance policy. Point out that the COI is nothing but information. They need to know that any agent putting such wording on a COI without showing proof that this language is included in the policy are guilty of material misrepresentation and ultimately lying (though that is not a legal term). ----I have no idea what the first requested COI statement means. In the second statement, what does “normally covered” mean? That is not language found in any insurance policy I’ve ever seen. Issuing such a certificate would be an Unfair Trade Practice in many states. ----You are agent of the carrier, you need to be talking with the carrier on what wording they will and won’t allow. You are smart not to do anything without direction from the carrier.
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AGENCY OPERATIONS
HELPING YOUR EMPLOYEES EMBRACE CHANGE Do you remember the scene in the movie Wayne’s World where Rob Lowe’s character explains to Wayne and Garth the new structure of their previously self-produced cable show? Garth’s response: “We fear change.” Garth is not alone in his trepidation. When you take people out of their comfort zones, they get, well...uncomfortable. Even if the current circumstance is not ideal, at least it’s familiar territory. In the business world, fear of change often stems from two main concerns: Am I still going to have a job when all is said and done; and if I do, how much more work is going to be expected of me? Here are 8 quick tips to help keep panic to a minimum in times of change: 1. Explain your vision. Help people understand why the changes are necessary. Also let them know what’s in it for them and what the downsides are of not changing. Communicate these things regularly so it begins to feel natural. 2. Get people involved in the planning process. The more included people feel, the more vested they are in making the new process succeed. 3. Make sure you have a plan. The plan should show how you expect to make your vision a reality,
how the proposed changes relate to the goal, and the time frames for implementing and achieving each step in the process.
the company are not really worth the turmoil they’re likely to continue causing.
4. Before rolling out the new process, give everyone a preview of the plan. Break it down into digestible pieces. Start with small, easy to handle steps so people can meet with initial success and develop confidence in their abilities and the plan. 5. Don’t expect people to be committed to the new procedures immediately. Let commitment grow slowly and it is more likely to be lasting.
8. Identify people who are positive and succeed early in the change cycle. Reward them for their progress, and allow them to share their success stories and serve as examples to others.
6. Anticipate resistance. It will be important to determine if the resistance is founded, such as initial fear of the unknown and genuine concerns about potential problems with the change—or if some people are just habitually negative and will consistently work against your efforts. Try to nip this in the bud by getting them to contribute ideas and eventually buy into the changes. Be aware, however, that you may also determine their contributions to
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7. Provide the extra resources people need to adapt to the new changes. Make training and assistance available, as well as an “open door” policy that enables people to feel comfortable expressing problems, concerns or confusion—including the ability to say, “I’m not sure how to do this.”
9. Keep people updated on how the new plan is progressing and share the positive outcomes of the changes. Adapting to change always takes time. Continue to keep the communication open and avoid surprises. Make sure you are doing your part to make people as comfortable with it as possible so you truly earn their trust and commitment to the new vision.
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Motorists Insurance Group Wins 2018 Guidewire Innovation Award Motorists Insurance Group has been selected as a winner of the 2018 Guidewire Innovation Award. The award honors those who have best demonstrated business and information technology benefits experienced through the use of Guidewire products. Motorists leveraged the Guidewire InsuranceSuite and Digital Portal platforms in the May 2017 launch of their new commercial lines solution, Motorists Insurance. Initially coined the Transformation Program, Motorists Insurance’s objective was to create a new company using vended technologies to support a new business operating model, commercial lines products and organizational structure. With strategic consult provided by PwC, Motorists integrated the Guidewire Digital Portal with dozens of supporting systems to create a brand-new experience for their agents, policyholders and associates. “ Motorists is tremendously honored and humbled to be selected as a 2018 Guidewire Innovation Award winner. While our company is being recognized for our innovative greenfield approach to delivering business and IT benefits using Guidewire technology, we didn’t get here by ourselves,” Motorists Senior Vice President and Chief Strategy Officer John Kessler said. Not only did Motorists have the strategic consult of PwC, who was essential in integrating Motorists Insurance’s core systems, approximately 190 internal resources and over 450,000 hours were dedicated to the ideation, formation and launch of Motorists Insurance. The project proved to be well worth the investment. In Motorists’ Guidewire Innovation Award submission, the company was pleased to reveal the success of the new commercial lines company. In its first nine months, Motorists Insurance wrote $18 million in premium. And as of first quarter 2018, the company had onboarded over 500 Motorists Insurance agencies and 72 percent of their agents downloading had written business – well above the industry average for commercial lines.
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“This is a significant recognition and honor for our group of companies,” Motorists Executive Vice President, Commercial Lines and Life, Grady Campbell said. “We are proud of our associates’ efforts to give our agents and policyholders a customized and improved experience.” Guidewire honored Motorists’ achievement on Tuesday, Oct. 16, during the awards ceremony at Guidewire Connections at the Wynn Las Vegas. Motorists Executive Vice President and Chief Information Officer Tony Laska accepted the award on behalf of the company. Along with continuing their commitment to their policyholders and agents, Motorists has consistently been an industry leader with innovative solutions. “The digital age is an exciting time for insurance companies, and we can’t express how honored we are to be recognized for the advancements we’ve made for our customers through Motorists Insurance,” Laska said. With plans to roll out this new commercial lines solution to more states and transform their personal lines business by 2020, Motorists is excited about the future, technological leap they have made to better serve their customers and recognition they’ve earned in the Guidewire Innovation Award through their most transformational project in company history: Motorists Insurance.
M3 Named one of Madison’s 2018 Best Places to Work M3 Insurance was recently named to the 2018 “Best Places to Work” list, as published by Madison Magazine. Madison Magazine works with Omaha, Nebraska-based Quantum Workplace to facilitate a rigorous annual survey measuring areas of employee satisfaction and workplace culture, including: communication and resources, individual needs, manager effectiveness, personal engagement, team dynamics, and trust in leadership.
Vizance combines wit Kenosha insurance agency Hartland-based insurance agency Vizance has merged with Kenosha agency Sparks Insurance. The combination took effect Sept. 1, and the financial details were not disclosed. With the addition of Sparks, Vizance will expand its geographic reach into the Racine/Kenosha area. WISCONSIN INDEPENDENT AGENT
Vizance, founded in 1978 and formerly known as RC Insurance, now serves clients from northern Illinois to northeastern Wisconsin. The privately-held, independent agency provides a range of individual and commercial insurance, as well as risk management, employee benefits and financial services. It has offices in Hartland, Appleton, Kaukauna and Oshkosh. With the addition of Sparks’ seven employees, Vizance now has 98 employees. President Jeff Cardenas said he plans to add another 12 to 15 employees across Vizance’s footprint in 2019. Sparks, founded in 1960, provides auto, home, life, health and business insurance. It will retain its branding and its Kenosha office in the integration. Its leadership will also remain in place, with principals Lon Knoedler, president, and Bonnie Knoedler, secretary/ treasurer, remaining with Sparks. “We found a partner that meshes seamlessly with our philosophies, culture and way of doing business. It’s a win-win-win for our staff, our clients and our company partners,” said Lon Knoedler, president of Sparks Insurance. “First, the most important thing to us always is culture and values, and those really aligned well,” Cardenas said. “Geographically, we’ve really been looking at the Kenosha area for a long time and we’ve known Lon and Bonnie for a long time. “Lon is really viewed as an expert in the insurance industry,” he said. “We’re going to be looking at Lon globally as a resource for our entire company, really for training and coverage purposes. Lon has a real passion for teaching and mentoring that we’re going to utilize.” “Vizance has experienced 15 to 20 percent growth in all of its departments year-over-year, which has been driving its growth,” Cardenas said. “That’s driven by an internally competitive, yet supportive, atmosphere.”
EMC Insurance Companies announces the hiring of Jim Slaski as their new Administrative Services Manager. Jim comes to EMC with 29 years of industry experience, working as a Sr. Premium Auditor, Regional Audit Manager and most Jim Slaski
recently, as a Sr. Territory Marketing Manager. His educational background includes a BBA-Accounting from University of Wisconsin-Madison, MBA-Management from Cardinal Stritch University and his CPCU & APA designations.
Robertson Ryan & Associates We’re happy to share that a new agency has joined Robertson Ryan & Associates in Minocqua WI. Robertson Ryan is positioned for further growth and we appreciate all our partners who help make our growth possible. Charlie and Aimee Ouimette own and manage Wisconsin Benefit Planning, a very successful multi generation independent agency in Minocqua WI. The agency has been serving clients since 1921. Presently they service Benefits clients and offer Brokerage (Financial) Services. In their new partnership with RRA they will be adding Commercial Lines and Personal Lines service capabilities and are excited to continue growing. Their team members will also be joining. We’re so excited to have an office in this fine part of the state of Wisconsin. WISCONSIN INDEPENDENT AGENT
SFM Board names Miller president and chief executive officer BLOOMINGTON, Minn.—The SFM Mutual Insurance Co. Board of Directors has named Terry Miller president and chief executive officer of the organization. Miller’s promotion, effective November 5, is the result of a leadership succession strategy that Terry Miller has been in motion since 2015. Miller has worked at SFM for over 30 years, serving as the company’s original controller. He has since risen through the ranks, becoming vice president of accounting, vice president of finance, then senior vice president and CFO. Since April, 2016, Miller has held the position of executive vice president and Bob Lund chief operating officer. “Terry has been an instrumental part of SFM’s success for many years,” said SFM Board Chair Robert Mars. “His experience, knowledge and vision make him the ideal person to lead the organization into the future.” Terry Miller’s appointment comes as SFM President and CEO Bob Lund steps down after leading SFM since May 2007. After a remarkable tenure of leadership at SFM, Lund has chosen to enter a new “career adventure” in private law practice that will allow him to perform pro bono work in the elder law area, among other services. “SFM has been very fortunate to have strong leadership during its history and Bob’s tenure as CEO has been exceptional,” said Mars. “Under his thoughtful guidance, the company has seen unprecedented growth and risen to new heights of success.” Before his 12-year stint as president and CEO, Lund was vice president and general counsel. During his time at SFM, he said he’s enjoyed working together with employees to develop a culture of caring for customers and the community at large. “SFM is in great shape to do even better things in the future,” Lund said. “Terry’s deep experience and commitment to service excellence will serve SFM and its policyholders well.” Miller credited Lund with taking SFM’s emphasis on service to a new level. “I am thrilled and at the same time humbled that the board chose me to be SFM’s next CEO,” he said. “I plan to follow in Bob’s footsteps and keep moving us forward as the leader in service excellence.” Miller is a certified public accountant and holds the chartered financial analyst designation. He serves on the Board of Directors of the Minnesota Workers’ Compensation Reinsurance Association, The Insurance Federation of Minnesota and Small Sums, a Saint Paul, Minnesota-based nonprofit. He recently was on the board of the Minneapolis Urban League. He’s also a member of the Minnesota Society of CPAs, the American Institute of CPAs, the CFA Institute and the Insurance Accounting and Systems Association. Miller graduated with honors from the University of Minnesota-Duluth with a bachelor’s degree in accounting and received a master’s degree in business administration from the University of St. Thomas. “Terry’s exemplary history with the company and his involvement in every aspect of the operation over the past two decades assures SFM, their agents and their clients that the company has a great leader in position for the future,” said Mars.
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DECEMBER 2018 | 31
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Hausmann-Johnson Insurance Named a 2018 Best Small Workplace by Great Place to Work® and FORTUNE Great Place to Work and FORTUNE have honored Hausmann-Johnson Insurance as one of the 2018 Best Small & Medium Workplaces! The ranking considered more than 112,000 employee surveys from small and medium-sized companies. Great Place to Work, a global people analytics and consulting firm, evaluated more than 50 elements of team members’ experience on the job. These included the extent to which employees trust leaders, the respect with which people are treated, the fairness of workplace decisions, and how much camaraderie there is among the team. Rankings are based on employees’ feedback and reward companies who best include all employees, no matter who they are or what they do for the organization. Hausmann-Johnson Insurance took the #43 spot on the list. “Hausmann-Johnson Insurance is proud to be recognized for being among the 2018 Best Small Workplaces,” says Barry Richter, President. “Being a Great Place to Work speaks to our WHY: To support and care for those we serve so they can reach their highest potential. Our associates are our greatest asset, and when they feel valued, so do our clients and communities.” The Best Small & Medium Workplaces stand out for excelling in the industry’s rapidly-changing marketplace. “When it comes to revenue growth and innovation, the 2018 Best Small & Medium Workplaces continue to outperform their peers making these companies more competitive and helping them secure their position in the marketplace,” said Michael Bush, CEO of Great Place to Work. “What these companies do differently than their peers is that they offer a great workplace for all employees, regardless of role or personal traits”. The Best Small & Medium Workplaces list is one of a series of rankings by Great Place to Work and FORTUNE based on employee feedback from Great Place to WorkCertified™ organizations. Hausmann-Johnson Insurance also was ranked as a Best Small Workplace in 2017, a Best Workplace in Financial Services & Insurance in 2016, and a Best Workplace for Giving Back in 2016 by Great Place to Work and FORTUNE.
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Acuity’s Growth Recognized by Deloitte Acuity is named to the Deloitte Wisconsin 75, the annual program honoring the state’s largest closely held firms for their impact on Wisconsin’s economy. In Acuity’s 12th year on the list, the insurer is ranked at number 19. Senior Business Analyst Amanda Radloff and Paul Private companies play a critical role Miller, Manager - Communications, receive the Deloitte Wisconsin 75 award on behalf of Acuity. in Wisconsin’s economy, providing a stable and strong foundation. Since the launch of the Deloitte Wisconsin 75 in 2003, Wisconsin’s most recognizable private companies have participated. Acuity continues its strong business growth and expansion in 2018. The insurer has doubled its revenue in the past eight years and is on track to add $225 million to top-line revenue in just 24 months. Now the 56th largest property-casualty insurance company in the nation out of 2,600 carriers, Acuity recently completed a $250 million headquarters expansion project to plan for significant staffing increases and business growth in the years ahead. Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 100,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 27 states. Rated A+ by A.M. Best and S&P, Acuity employs over 1,300 people.
West Bend Mutual Insurance Honored with National Workplace Award for Ninth Straight Year WEST BEND, WI (November 27, 2018) – For the ninth year in a row, Business Insurance magazine and the Best Companies Group have named West Bend Mutual Insurance Company one of the nation’s top places to work in the large property/casualty insurer category. West Bend, one of 75 companies nationally recognized in the 2018 Best Places to Work in Insurance program, ranked second in the large company category. The national awards program is designed to identify, recognize, and honor the best places of employment in the commercial insurance industry, benefiting the industry’s economy, its workforce, and businesses. Companies participating in the program are property/casualty insurers, group life/health insurers, reinsurers, third-party administrators, and agents/brokers. “At West Bend, our vision is to be the company of choice for our policyholders, agents, and associates,” said Kevin Steiner, president and CEO. “This top workplace award is strong evidence that our associates see WISCONSIN INDEPENDENT AGENT
West Bend as their company of choice. We believe our positive and motivating work environment helps our 1,300 associates deliver outstanding service to our agents and policyholders, which helps make West Bend their company of choice, too.”
LTD (Casey, IA), Lee/O’Keefe Insurance Agency, Inc. (Springfield, IL), Farmers Union Insurance (Little Falls, MN), Clark Insurance (Brandon, SD), and Burns Insurance Agency LLC (Marshfield, WI). IMT is built on our deep roots and relationships in our communities and truly value our partnership with each of them.
West Bend offers their associates many amenities, including continuing education courses held in a state-of-the-art training facility; an on-site bank; on-site clinic; dry cleaning services; a 7,100-square-foot fitness center; a variety of fitness classes; three miles of walking trails; on-site massage therapist; and wellness programs that include health risk assessments.
For more information on IMT’s #GivingTuesday initiative, please visit our Facebook page or contact Erin Wonsmos, IMT Marketing Manager. For additional #GivingTuesday information, please visit www.givingtuesday.org.
West Bend associates say they like being part of a company with community and environmental priorities. West Bend actively supports dozens of not-for-profit organizations, including Habitat for Humanity, United Way, and The MACC Fund. Care for the environment is promoted with gardens for associates to grow their own organic produce, reduction of paper use, elimination of plastic wear and Styrofoam in the on-site cafeteria, and the preservation of 160 acres of prairie on their campus. These are just a few of the company’s sustainability initiatives.
Appleton, Wis. (November 28, 2018) – SECURA Insurance will donate $25,000 to five nonprofit organizations through a #GivingTuesday contest designed to help independent agents support organizations within their local communities. Five participating agencies were selected at random to receive a $5,000 donation to a nonprofit of their choice. The online contest drew more than 311 entries from more than 48 agencies during the three week contest.
Founded in 1894, West Bend employs nearly 1,300 people; offers home, auto, and business insurance in Wisconsin, Illinois, Iowa, Indiana, Minnesota, Ohio, Michigan, Missouri, Kansas, Kentucky, Nebraska, and Tennessee; and has grown to more than $2.5 billion in assets and more than $1 billion in revenue. It’s represented by more than 2,000 independent insurance agencies.
IMT Insurance Celebrates #GivingTuesday and Pledges $20,000 to Eight Different Organizations WEST DES MOINES, IA, NOVEMBER 27 - IMT Insurance was honored to participate in #GivingTuesday! #GivingTuesday is a global day of giving that harnesses the collective power of a unique blend of partners – charities, families, businesses, and individuals – to encourage philanthropy and to celebrate generosity worldwide. #GivingTuesday is held annually on the Tuesday after Thanksgiving.
SECURA Insurance donates $25,000 to five nonprofits in honor of its agency partners
“SECURA not only supports nonprofits, we also provide insurance coverage that’s designed for the risks they face,” said Kevin Klestinski, Vice President–Specialty Lines Underwriting. “#SECURAgivesback is our way of saying thank you to our independent agents for the work they do to protect nonprofits, and we know many agents are active in supporting their communities. #GivingTuesday is a great way to give back and raise awareness of the incredible work nonprofits are doing in the communities we serve.” The winning agencies and the nonprofits that will benefit include: • Zimny Insurance Agency of Alexandria, Minnesota benefiting Andria Theatre • AW Welt Ambrisco Insurance of Iowa City, Iowa benefiting The Birdhouse Hospice Home of Johnson County • Green Owens Insurance of Franklin, Indiana benefiting KIC-IT
IMT strives to support local communities in an impactful way throughout the states in which write business. On Tuesday, November 27, 2018, we donated $2,500 to eight different organizations every hour from 9 AM – 4 PM, for a total of $20,000! Six recipient organizations were randomly selected from our pool of Community Contest winners, who were nominated by a local IMT Agent earlier this year, and two organizations were chosen based on feedback from IMT employees. We are excited to participate in this initiative! The following organizations each received $2,500 as part of IMT’s #GivingTuesday: Adair-Casey Food Pantry (Casey, IA), Brandon Area Food Pantry (Brandon, SD), Animal Rescue League of Iowa (Des Moines, IA), Food Bank of Central Iowa (Des Moines, IA), Oasis Central Minnesota (Little Falls, MN), Personal Development Center (Marshfield, WI), Ronald McDonald House Charities of Central Illinois (Springfield, IL), and Tori’s Angels Foundation (Panora, IA). We were pleased to have a number of local IMT Agencies join us in presenting the eight organizations a donation on #GivingTuesday! We extend a special thank you to the following IMT Agencies: TrueNorth Companies LC (West Des Moines, IA), Insurance Store WISCONSIN INDEPENDENT AGENT
• American Insurance of Bismarck, North Dakota benefiting Ruth Meiers Hospitality House • Cottingham Insurance of Bismarck, North Dakota benefiting Bismarck Cancer Center Foundation For additional information about the company’s charitable giving and community support, visit secura.net/community. SECURA’s Specialty Lines office is located in Middleton, Wis. ABOUT SECURA INSURANCE SECURA Insurance is headquartered in Appleton, Wis. More than 475 independent insurance agencies in 12 states represent the company, which provides a broad range of competitive commercial, personal, farm, nonprofit, and special events products. It is known for providing exceptional service to its agents and policyholders since 1900. The carrier also is a Ward’s Top 50 company for outstanding results in financial performance and consistency over a five-year period. Visit www.secura.netto learn more. ###
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FOOD FOR THOUGHT
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