Independent Agent May 2018 by Independent Insurance Agents of Wisconsin

wisconsin

INDEPENDENT AGENT MAY 2018

GOVERNOR SIGNS CERTIFICATES OF INSURANCE LEGISLATION INTO LAW, DECLARES MAY 9 TH INDEPENDENT INSURANCE AGENTS DAY!

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in connection with a decision to participate in thesponsor MEP andof other BIRS401(k) assumes fiduciary responsibility of sponsorship and limited administration unless ©2014 Big “I” Retirement Services, LLC (“BIRS”), the matters. Big I "MEP" Plan. Participating employers may retain otherwise delegated. Mesirow assumes certain fiduciary responsibilities as investment manager for investment selection and other similar functions.

wisconsin

INDEPENDENT AGENT MAY 2018

Leadership Conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Open Door Policy Governor Walker signs certificates of insurance legislation and much more! . . . . . 8 Agency Management Evolving Leadership: From Command and Control to Engage and Align. . . . . . . . . 12 Psst. 5 things your boss desperately needs reverse mentoring in. . . . . . . . . . . . . . 16 Sales The Most Powerful Sales Skill for Insurance Agents. . . . . . . . . . . . . . . . . . . . . . . . . . 18 Technology How Blockchain will enable pay as you go insurance. . . . . . . . . . . . . . . . . . . . . . . . . 22 What the Internet of Things will do to Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Why data is HR’s Most Important Asset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Errors and Omissions Proceed Carefully if you receive a subpoena . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Industry News Central Insurance Company Expands into Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . 30 Government Affairs Recent State Election Results Signal Political shift may be coming. . . . . . . . . . . . . 33 Virtual University How Much “loss of use” is needed for property damage? . . . . . . . . . . . . . . . . . . . . . 34 Emerging Leaders Spotlight Naomi Sopko, Commercial Lines Underwriter at Burns & Wilcox . . . . . . . . . . . . . . . 37 Risky Business What is Agency Risk Management? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Members in the News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Food for Thought. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 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 2017-2018 Executive Committee President............................................................ Lise Meyer Meyer Insurance - P.O. Box 633, Sauk City, WI 53583 President-Elect.................................................... Jason Bott Robertson-Ryan & Associates - 330 East Kilbourn Ave., Milwaukee, WI 53202 Secretary-Treasurer......................................Chris Costakis Avid Risk Solutions- 2501 Parmenter Street, Ste 200A Middleton, WI 53562 Chairman of the Board................................. Matt Weimer Diversified Insurance Solutions - 100 North Corporate Dr., #100, Brookfield, WI 53045 State National Director ................................Steve Leitch Leitch Insurance - P.O. Box 85, River Falls, WI 54022 2017-2018 Board of Directors Mike Ansay, Ansay & Associates 101 East Grand Ave. #11, Port Washington, WI 53704 Cindy Burns, Burns Insurance 500 South Central Ave., Marshfield, WI 54449 Marc Petersen, American Advantage-Petersen Group 15171 W. National Ave., New Berlin, WI 53151 Jack Riesch, R&R Insurance Services P.O. Box 1610, Waukesha, WI 53187-1610 Chad Tisonik, HNI 16805 W Cleveland Ave, New Berlin, WI 53151 Pam Utpadel, Universal Insurance Advisors 100 West Lawrence St. Suite 313, Appleton, WI 54911 Ryan Waite, Neckerman Insurance Services 6200 Mineral Point Road Madison, Wisconsin 53705 Darrel Zaleski, Spectrum Insurance Group 4233 Southtowne Drive, Eau Claire, WI 54701

WISCONSIN INDEPENDENT AGENT

2017-2018 Committee Chairs Agency Services ............................................Kim Dandrea M3 Insurance - N19 W24200 Riverwood Dr. Waukesha, WI 53188 Automation/Technology ...............Cathleen Christensen Hierl Insurance - P.O. Box 949, Fond du Lac, WI 54936 Emerging Leaders ..........................................Ryan Waite Neckerman Insurance Services - 6200 Mineral Point Road Madison, WI 53705 Employee Benefits.......................................... Mike Farrell David Insurance - 1300 South Green Bay Rd Racine, WI 53406 Government Affairs .......................................Jeff Thiel R&R Insurance Services - P.O. Box 161 Waukesha, WI 53187 Carrier Relations ......................................... Kevin Murray Johnson Insurance Services - 525 Junction Road, Madison, WI 53717 Marketing/Membership Development....Jamie Durocher Arlington Roe- 2 Carlson Parkway N., Suite 175 Plymouth, MN 55447 Technical...............................................Timothy Kakuska Robertson-Ryan & Associates - P.O. Box 547 La Crosse, WI 54602

On The Cover… On April 3, 2018, the IIAW was invited by Governor Walker to attend two private bill signing ceremonies in which the latest round of important certificates of insurance and intrastate motor carrier limits legislation was signed into law. Thanks to all those who helped in this important effort. Governor Scott Walker has declared May 9, 2018 as Independent Insurance Agents Day in Wisconsin in recognition of the vital role independent insurance agents play in their communities and the strategic importance to the Wisconsin economy. The Governor’s proclamation, at the request of the Independent Insurance Agents of Wisconsin, applaud the entrepreneurial spirit of Wisconsin’s independent insurance agents who are small, medium and large businesses working to make a difference in every community throughout the state. Go to page 8 to read more!

> A DVERTISERS & INFORMATION AAA Wisconsin................................................. 42 ACUITY.............................................................. 4 Arlington Roe................................................... 21 Badger Mutual................................................. 25 Berkshire Hathaway/Guard............................... 7 Burns & Wilcox.................................................. 5 Emerging Leaders Committee.......................... 17 Erickson Larsen................................................ 31 IIABA 401k Plan................................................. 2 IIAW Pre-licensing Classes............................... 14 IIAW CE............................................................. 15 Insuring Wisconsin PAC................................... 32 JM Wilson......................................................... 17 Keystone Insurers Group................................. 29 ProtectYourAgency.com..................... back cover Risk Management Services............................. 36 Robertson Ryan & Associates.......................... 27 SECURA........................................................... 20 Society Insurance............................................. 6 The IMT Group................................................. 23 West Bend....................................................... 43 Western National............................................. 35 MAY 2018 | 3

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PROFESSIONAL COVERAGE IS OUR MIDDLE NAME. Only Burns & Wilcox has the depth and breadth of experience to deliver the right solutions right away. Milwaukee, Wisconsin | 262.347.0266 toll free 800.544.5700 | fax 262.347.0440

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Delivering more by focusing on less. Small detail. Big difference. Rather than attempt to be all things to every kind of business, we focus on the ones we know bestâ&#x20AC;&#x201D;restaurants and bars, supermarkets, convenience stores, hotels and motels, medical clinics, artisan contractors and auto service shopsâ&#x20AC;&#x201D;to deliver outstanding property, casualty and workers compensation insurance. Deep niche expertise, with insight into unique business risks, is how we cover the details that make the biggest difference to our policyholders. To discuss an agency appointment, give us a call at 888-5-SOCIETY or visit societyinsurance.com.

What’s New?

What’s Not?

Now a billion dollar company . . . and still growing! (Sales passed the mark in 2016.)

Secure financial strength that comes from being a member of the Berkshire Hathaway family.

Nationwide geographical scope.

Our A+ (”Superior”) A.M. Best Company Rating.

An increasingly robust product suite that features Workers’ Compensation, Businessowner’s Policy, Commercial Auto, Umbrella, and Professional Liability coverage.

Average annual growth in premium in excess of 25% per year for the past five.

Broader appetite for select risks (including Total Insured Property Values as high as $50 million for certain industries and risks).

Ongoing product and service enhancements to win renewals and keep a high retention ratio.

Our focus on being data-driven and using business intelligence to gain a competitive edge.

Higher A.M. Best financial size (i.e., “X”).

A superior combined ratio that (according to A.M. Best) outperforms our peers.

Enhanced infrastructure to support growth.

Our commitment to distribution through independent agents!

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ILIT Y AB

OPEN DOOR POLICY

GOVERNOR WALKER SIGNS CERTIFICATES OF INSURANCE LEGISLATION INTO LAW On April 3, 2018, the IIAW was invited by Governor Walker to attend two private bill signing ceremonies in which the latest round of important certificates of insurance and intrastate motor carrier limits legislation was signed into law. For valuable information on both these pieces of the legislation please review past issues of the Wisconsin IA magazine or contact the IIAW. I would like to personally thank Tony Arneson (Neckerman Insurance), Randy Krantz (Neckerman Insurance), Jeff Thiel (R&R Insurance), Joann Brown (R&R Insurance), Dave Burkhart (AdvisorNet), and Tom Delahunt (Schueller Harrington Insurance) who all played a vital role from start to finish to see these two pieces of legislation signed into law.

Governor Declares May 9, 2018 to be Wisconsin’s Independent Insurance Agents Day Governor Scott Walker has declared May 9, 2018 as Independent Insurance Agents Day in Wisconsin in recognition of the vital role independent insurance agents play in their communities and the strategic importance to the Wisconsin economy. The Governor’s proclamation joins with the Independent Insurance Agents of Wisconsin to applaud the entrepreneurial spirit of Wisconsin’s independent insurance agents who are small, medium and large businesses working to make a difference in every community throughout the state. Independent Agents are an integral part of an industry whose collective economic activity directly contributes more than $15.5 billion to the Wisconsin economy. Independent insurance agents provide insurance from multiple carriers and can offer a wide range of insurance solutions to help protect individuals, families and businesses from financial hardship. They also assists individuals, schools, municipalities and 8 | MAY 2018

businesses in saving money, mitigating risk, preventing loss and protecting the lives of our community. Independent insurance agents support high school and college insurance risk programs, teaching future generations the importance of purchasing proper insurance and exposing students to careers as insurance agents and a vast number of other careers in the insurance industry. The occupation of an independent insurance agent/broker has been identified as one of Wisconsin’s best in-demand, high-wage careers. Independent insurance agents across Wisconsin are proud to be recognized by Governor Scott Walker for the integral part we play in protecting our community from financial hardship and giving back through charitable contributions and volunteer efforts. Thank you, Governor Walker, for recognizing the important role agents play in their communities throughout Wisconsin and answering the IIAW’s call to proclaim May 9th, 2018 as Independent Insurance Agent Day in Wisconsin. WISCONSIN INDEPENDENT AGENT

OPEN DOOR POLICY

Jeff Thiel, Lise Meyer Kobussen and Ryan Waite meet with Congressman Grothman.

Matt Banaszynski, Lise Meyer-Kobussen, Steve Leitch, and Jeff Thiel pictured with Sen. Johnson, recipient of the IIABA’s Gerald Solomon Legislator of the Year Award, at a luncheon on 4/17/18.

Sen. Johnson is Big ‘I’ Legislator of the Year

Matt Banaszynski, Steve Leitch, Chris Hanson, Dustin Helmenstine, and Bruce Kelley (CEO of EMC Insurance Company) meets with Congressman Gallagher.

Members of the IIAW received a private tour of Speaker Ryan’s office and had the opportunity get this wonderful picture on the historical “Speaker’s Balcony”.

IIABA meets with members of Wisconsin’s Congressional Delegation More than 1,000 agents and brokers stormed capitol hill on April 19th to tell them, in part, how important the insurance industry is to the economy and our country. 8 individuals representing the IIA of Wisconsin were on hand to meet with Wisconsin’s congressional delegation to ask for their support on important pieces of legislation ranging from tax reform to flood insurance to crop insurance to health care reform. WISCONSIN INDEPENDENT AGENT

Sen. Ron Johnson (R-Wisconsin) is the Gerald SolomonIndependent Insurance Agents & Brokers of America Legislator of the Year for 2017. Sen. Johnson made a huge impact during the tax reform debate—and his advocacy ultimately helped the bottom line of Big “I” members and their small business clients. He was the most vocal supporter of pass-through businesses during congressional consideration of tax reform, and he single-handedly garnered numerous improvements to the law that benefited Big “I” small business members. When presenting the award at Tuesday’s Leadership Luncheon during the Big “I” Legislative Conference, Bob Rusbuldt, Big “I” president & CEO, said that Sen. Johnson “went above and beyond the call of duty for independent agents and small businesses” in the tax reform debate. “Nearly two thirds of Big ‘I’ members are organized as passthrough entities, and he took care of them,” Rusbuldt said. “He was in the trenches for us.” Sen. Johnson thanked Big “I” members for coming to Washington, D.C. and emphasized their role in educating legislators on the private sector. “The importance of the free market has been forgotten,” he said. “It’s up to the business community to make the case for it.” Sen. Johnson is chairman of the Homeland Security and Governmental Affairs Committee, and also serves on the Budget, Foreign Relations, and Commerce, Science and Transportation committees. The Big “I” presents the Legislator of the Year Award annually to a member of Congress who provides outstanding leadership on insurance issues. The name of the award honors the late Rep. Gerald Solomon (R-New York), former U.S. House of Representatives Rules Committee Chairman and Big “I” member who championed independent agent and broker legislative concerns during his 20 years in Congress. >M att Banaszynski is the CEO of the Independent Insurance Agents of Wisconsin. Contact him at matt@iiaw.com.

MAY 2018 | 9

2018

LEADERSHIP C NFERENCE JULY 18-20 WILDERNESS RESORT WISCONSIN DELLS

EMERGING LEADERS

SCHEDULE OF EVENTS WEDNESDAY, JULY 18 3pm -4pm

ow to Prevent Agents E&O: Pollution Coverage Gaps in Commercial H General Liability and Commercial Property Policies (1 CE)

Dustin Helmenstine, American Risk Management Resources Learn the details of the pollution exclusion commonly found in General Liability and Property policies using claim scenarios.

4pm-6pm

Wilderness Escape Room

A Leadership Conference ffiirst, 12 attendees at a time will have 60 minutes to solve clues and puzzles and navigate their way out of either The Basement Room or The Hotel room, located on-site at the Wilderness Resort.

5pm-8pm

Poolside Cabana

Grab some food and a drink and relax! The poolside cabana is back and you don’t want to miss it! Sponsor: SECURA Insurance

THURSDAY, JULY 19

“Excalibur Culture”. Participants will learn what Excalibur does to keep the team motivated to go above and beyond and provide a WOW experience to their clients.

12pm-1pm 1pm-2pm

Lunch Roundtable – Insurance Industry Technology Experts

Moderator: Matt Banaszynski Wilderness Ballroom Hear from the experts on the latest technology trends impacting the insurance industry and how your agency can stay one step ahead. Panel: Greg Kirsch, Ansay & Associates; Bob Van Beek, Secura; Pete Weigel, Midwest IT

2:15pm-4:15pm “ How to Become a Social Media Rockstar” including a special presentation on “Creepy Facebook Ads”

Spencer X Smith, Founder of SpencerXSmith.com Wilderness Ballroom Social media is the best means ever invented to grow both your personal reputation as well as that of your organization. Spencer will share stories and strategies that have worked for him and that you won’t hear anywhere else.

8am-9am Breakfast 9am-9:30am Welcome Presentation: Emerging Leaders Committee Update

5:30pm-9pm

9:30am-11am Building the Digital Customer Experience

FRIDAY, JULY 20

Dan Lau & Ryan Waite Wilderness Ballroom

Jeff Roy, President & CEO Excalibur Insurance Group Wilderness Ballroom There are pivotal moments in every business category where success can be rendered simply by changing your perspective, or angle of approach. The consistent thread for every company who wants to build a tribe of raving fans is simple. Stop thinking “Digital Technology” and start creating “Emotional Relevance”. Join Jeff Roy as he takes you under the hood and shares his team’s path to humanizing the digital experience. You’ll learn why they exist as a brand, and how they implemented a multi-faceted digital strategy to evoke emotional relevance as a fundamental element of their customer journey. Learn how Excalibur generates 450 to 600 quotes every month and has developed a sales process to give their prospects and clients a unique experience.

11:15am-12pm

Insurance Employee Experience

Una Roy, VP Operations Excalibur Insurance Group Wilderness Ballroom During this 45-minute presentation, Una Roy covers what she will explain as the

Backyard Patio Party Wilderness Resort Outdoor Patio After a day full of interesting topics and conversation, it’s time to relax on the patio at the Wilderness Resort. We will have plenty of food and drinks, plus outdoor games for everyone to enjoy.

8am-9am Breakfast 9am-11am Federal and State Data Privacy Laws: Are You Compliant? (2 CE) Bill Larson, NetGen Data Security Consulting Wilderness Ballroom Improve your understanding of the Gramm-Leach-Bliley Act (“GLBA”) with respects to the law and its importance to insurance agents and the impact of non-compliance on a carrier relationship and contracts.

11:10am-12pm Cyber Risk: What Are the Threats and How To Be Protected? (1 CE) Edward Chang, SVP Cyber Risk Management Travelers Wilderness Ballroom He has prosecuted Romanian phishers, Nigerian fraudsters, and other computer hackers and cyber criminals. Eddie Chang discusses the top threats insurance professionals are facing and the steps to take to protect information as well as your reputation.

12pm

Conference Ends

FEATURED SPEAKERS

REGISTRATION INFORMATION

Jeff Roy As the CEO of the Excalibur Insurance Group, Jeff’s

willingness to invest, will challenge you to be better. As a leader and coach Jeff is fueled by 3 things - technology, people, and big ideas. He also believes that the pinnacle of innovation for an entrepreneur is best measured by the number of times you’ve tried something new - and learned from the adventure when it didn’t go as planned. What gives Jeff and his Excalibur team their edge? His peers believe it’s because he refuses to wait for someone else to make a difference. In 2016 Roy and Excalibur won Aviva Canada’s ffiirst Broker’s Hackathon. A contest designed to encourage groundbreaking ideas on how technology can enhance the industry. And you may be surprised to learn that Excalibur Insurance is not in the insurance business; they’re in the experience business. As evidenced by the way they’ve challenged the status-quo, once you start looking at your business that way, it totally changes your perspective.

Una Roy She faces every obstacle, with Everest-like expectations.

In fact, after more than 22 years in the insurance industry, don’t even think about throwing a challenge in Una’s path unless you’re looking for serious results. Some call it leadership, but those who know her best will simply tell you she always had a knack for creating repeatable success and attracting the right people. The reality? Regardless of context, Una loves building a game plan that increase the odds of winning. She’s proven that a well-designed system can attract and empower people to achieve the unexpected. The result? She and her team of volunteers raised an unprecedented $500,000 in a community with only a population of 3200. As Excalibur’s VP of Operations, she’s came to the same conclusion years ago - talent doesn’t fififind you by chance. Una believes that ffiirst you need to know “what you stand against”, and then you need to engineer a system that makes it easier to attract and inspire like-minded people who live to make a difference. As a coach, leader, colleague, wife, mom, volunteer and friend - when it comes to fifinding a better way to help, Una’s always been hardwired for success.

The IIAW Leadership Conference registration options (fififind full descriptions at IIAW.com):

Option 1: Full Registration - $239 Members; $259 Non-Members After June 13 - $259 Members; $269 Non-Members

Option 2: Non-Industry Spouse: $119 Option 3: Children (5 & Older) - $40. Children 4 & Under – FREE

WATERPARK PASSES

Guests receive waterpark wristbands at check-in and have access to all waterparks on the Wilderness Resort property. Guests may obtain wristbands any time after 12PM even if rooms are not ready until check-in at 4 PM.

CANCELLATIONS

Cancellation request received by June 18, 2018, 2018 will receive a complete refund. After the cut-off date, there is a 72-hour cancellation policy per room. Reservations cancelled prior to the 72hour mark will be charged a $30 fee. Cancellations within 72 hours will pay the entire room rate.

HOTEL INFORMATION

Room Rates: July 18 & 19 - $169.99; July 20 - $199.99. For reservations, call (800) 867-WILD and note that you are attending the IIAW Leadership Conference. Refer directly to the Wilderness Resort for full reservation and cancellation policies at the wildernessresort.com. The Wilderness Resort is at 511 E Adams St, Wisconsin Dells. The hotel reservation deadline is June 18, 2018. All conference events are hosted at the Wilderness Resort. Conference dress code is resort casual.

EXCLUSIVE SPONSORS

PARTNER SPONSORS Aflac

Central Insurance Company

Partners Mutual

Wisconsin Mutual

Amerisafe

CNA Insurance

Philadelphia Insurance

WPS Health Insurance

Arlington/Roe & Co.

EMC Insurance

QBE

Zurich Insurance

Auto-Owners Insurance

Madison Mutual

AGENCY MANAGEMENT

EVOLVING LEADERSHIP: FROM COMMAND-AND-CONTROL TO ENGAGE-AND-ALIGN Our age of disruption demands an evolution in leadership. Big change is underway across our economy—it’s hard to think of an industry that’s not facing disruption. Smart companies are transforming proactively, experimenting with new business models, new strategies, new customer relationships and new ways of delivering their goods and services

Even as companies respond to rapidly changing market conditions, however, leaders must recognize that these kinds of adjustments are necessary but not sufficient. Leaders themselves—and, more broadly, the practice of leadership— must evolve. To evolve is to adapt. Organisms that adapt to changing environmental conditions are the ones most likely to survive; similarly, organizations that can respond and adapt to turbulent markets will have the best shot at survival. Those that can’t change are in jeopardy. Nokia and Kodak, once esteemed brands and market leaders, illustrate what can happen when an enterprise fails to evolve as the world changes. What’s true for an enterprise is also true for the people who run them. This moment of unprecedented change is creating the need for new approaches to leadership. It’s time for executives to evolve, to adapt their style of leadership—to jettison the traditional “Command-and-Control” approach in favor of what I call “Engage-and-Align.”

The (Rise and) Fall of Command-and-Control Following the Second World War, as millions of veterans returned to the U.S. and took key positions inside corporations, they carried with them a Command-and-Control playbook that they learned during their military service. Their hierarchical approach to leadership worked incredibly well, supporting the growth of American industry during the second half of the 20th Century. Macro trends such as the rise of large industrial conglomerates and overseas expansion of American business lent themselves to Command-and-Control systems and leadership styles.

12 | MAY 2018

Not surprisingly given its success, Command-and-Control still prevails in many organizations, even if it has mellowed and morphed since the days of “The Man in the Grey Flannel Suit” and “Mad Men.” Though I rarely hear executives describe themselves as Command-and-Control leaders, I do hear an awful lot of people refer to their CEO or the company’s underlying leadership style that way. But in this age of disruption, Command-and-Control has outlived its usefulness. Also referred to as Hub-and-Spoke leadership, its centralized authority and hierarchical control orientation slows decision-making and discourages leaders at all levels from developing a sense of authority and responsibility. Its rigid hierarchies promote silo behaviors and passive-aggressive conflict, killing an organization’s ability to acknowledge, understand and adapt to disruptive change. Command-and-Control leaders favor compliance over creativity; they stifle candor, experimentation, and innovation, which in turn suppresses adaptation and speed. The explosion of data currently available to organizations presents an acute challenge to Command-and-Control leadership. More information is being processed in more corners of the enterprise than ever before—to the point where few Finance teams these days can create a “single version of the truth” on their own. As companies transform how they absorb data and develop a shared narrative about reality, leaders run the risk of missing crucial perspectives if they don’t find ways to bring more of their colleagues into important conversations. Command-and-Control also withers under the weight of globalization and a hyper-competitive networked economy. The

WISCONSIN INDEPENDENT AGENT

AGENCY MANAGEMENT

strategy and operations of modern corporations have radically increased in complexity, and the need for innovation has spiked. It is no longer tenable to expect one person—the hub in the Hub-and-Spoke model—to adequately understand the breadth of issues, take sole responsibility for decision-making, and personally direct the efforts necessary to unlock new growth opportunities.

The Changing of the Guard

Engagement that brings more people into a process does not mean everyone gets a vote or has a voice in every step along the way. But by providing a forum for dialogue and contribution, Engage-andAlign leaders allow key people across the organization to question, challenge, improve and ultimately understand the plans they are responsible for executing. With a sense of authorship comes ownership—and owners are passionate about bringing things to fruition.

Fortunately, a generational change is underway, as an increasing number of Gen Xers and Millennials earn executive positions at large companies. These new leaders bring new beliefs and practices that promise to evolve executive leadership and transform the corporation. They are less comfortable with Command-and-Control behaviors, seeking instead to empower people across the organization to step up and take on greater responsibility.

But engagement alone does not secure the desired outcomes. In today’s complex environment, a diverse collection of people must contribute information, experience, skills, and effort to deliver value to customers. Rather than the hub working to coordinate the actions of the spokes, the spokes need to learn to go directly to one another, aligning themselves to ensure effective collaboration.

Instead of directing and controlling, these Engage-and-Align leaders bind together the human resources of an enterprise to work collaboratively, transparently, and candidly. Foregoing an “I tell, you do” approach, Engage-and-Align leaders invest time and energy in creating an inclusive context for work—the environment and behaviors in which people can fuse together productively. This new generation of executive leaders feels responsible for developing a “we” mentality across the enterprise— uniting individuals to form an extended team, a community with shared definitions of purpose and success, capable of aligned and collaborative action within individual teams and across functions. Engage-and-Align leadership is far more complex and messy than issuing commands—which is probably why so many executives today fall back on dictating. Giving instructions provides a sense of control. But Huband-Spoke leadership is failing to produce the desired results in too many of the organizations I’ve observed. Leaders must recognize that their audience has changed. With Baby Boomers in the twilight of their careers, Gen Xers and Millennials dominate the workforce. And these younger people want to be involved; they want to participate in the process of making decisions. Engaging and empowering these next-generation contributors is far more effective than telling them what to do (and how to do it).

Engage-and-Align leaders replace a mindset of control with a mindset of alignment. They ensure that each unit contributes to the whole by encouraging the open exchange of information, perspectives, and recommendations; they insist that individuals, teams, and functions listen actively to better understand the viewpoints brought by others. Engage-and-Align leaders create the environment for adult conversations in which perspectives are effectively debated, decisions are both made and supported, and next steps are communicated clearly. As execution unfolds, leaders maintain alignment by instituting processes that ensure learning, adaptation, course correction and consistent communication.

The Times They are a-Changin’… To be clear, Engage-and-Align is not about leaders abdicating responsibility or authority. Engage-and-Align leaders still play firstorder roles in resource allocation, decision-making and holding people accountable. But they share the responsibilities of, and in some cases, the authority for, leadership more widely. Engage-and-Align is the logical evolution of Hub-and-Spoke leadership—ensuring that the talent within an enterprise contributes its full measure in today’s more complex, challenging environment. Engage-and-Align allows teams, functions, and geographies to communicate regularly and collaborate readily without a central hub controlling their interactions and giving orders.

Defining Engagement and Alignment Real engagement requires real participation: Engage-and-Align leaders invite more people into the conversation so they fully understand context, contribute information and perspectives, debate options and recommend ways to improve execution. Take the strategy development process as an example. In too many organizations, the creation of strategy is still a clandestine, Commandand-Control undertaking run by a small group of executives (sometimes supported by external consultants). I’ve seen very few strategies with these origins well executed. Engage-and-Align leaders, in contrast, open up the strategy development process to a wider audience, welcoming more iteration and inputs. They sacrifice some speed in exchange for a more thoughtful, thorough end-product that in my experience is far more likely to be implemented successfully. WISCONSIN INDEPENDENT AGENT

Over the past few years, I’ve partnered with several business leaders who have adopted an Engage-and-Align approach—and I’ve witnessed first-hand the power it can unleash in energizing an organization to produce extraordinary results. I’ll bet that if you compare the effectiveness of the Command-and-Control leaders in your enterprise to those who are experimenting with new methods of engaging and aligning their people, you’ll notice the same thing.

> Bob Marcus works with CEOs and C-Suite Executives for companies such as New York Times, General Motors, Biogen, Waste Management, ULTA Beauty, Motorola Solutions, 7-Eleven, Western Union and scores of other institutions in dozens of countries. Currently he works for Nvolv in Rochester, New York as a Change Strategist, Thought Partner and Executive Coach.

MAY 2018 | 13

2018 PRE-LICENSING CLASS SCHEDULE Conducted at State Association Headquarters, IIAW pre-licensing classes fulfill the study requirements for life, health, property and casualty. Full course materials — not just an outline — are included with registration. The classes are:

LIFE & ACCIDENT/HEALTH January 8-11 February 5-8 March 5-8 April 9-12 May 14-17 June 4-7 July 9-12

PROPERTY & CASUALTY January 22-25 February 12-15 March 19-22 April 23-26 May 21-24 June 18-21 July 23-26

August 6-9 September 10-13 October 8-11 November 5-8

August 20-23 September 24-27 October 22-25 November 12-15

December 3-6

December 10-13

Designed to help you pass your state licensing examination. The quickest way to meet the Wisconsin education hours requirement. Taught by experienced insurance professionals who know the business. Conducted in a comfortable classroom with free parking. Approved by the Office of the Commissioner of Insurance.

IIAW MEMBER PRICING: $340 - Pricing given for full class registrations.

NON-MEMBER PRICING: $355

You may also take individual classes.

DAILY SCHEDULE

Life & Accident/Health

Day 1 (Monday) 8:30 a.m. - 4:00 p.m. ($85) SECTION A: Principles of Insurance & General WI Ins. Law Ethics Day 2 (Tuesday) 8:30 a.m. - 4:00 p.m. ($90) SECTION B: Life Policies, Terms & Concepts Day 3 (Wednesday a.m.) 8:30 - 11:30 a.m. ($45) SECTION B: Life Policies, cont. & WI Life Insurance Law Day 3 (Wednesday p.m.) Noon - 4:00 p.m. ($45) SECTION B: Accident & Health Policies, Terms & Concepts Day 4 (Thursday) 8:30 a.m. - 4:00 p.m. ($90) SECTION B: Accident & Health, cont. & WI Health Insurance Law

Property & Casualty

Day 1 (Monday) 8:30 a.m. - 4:00 p.m. ($85) SECTION A: Principles of Insurance & General WI Ins. Law Ethics Day 2 (Tuesday) 8:30 a.m. - 4:00 p.m. ($90) SECTION B: Property Policies, Terms & Concepts CLASS SITE/DIRECTIONS The IIAW is located at 725 John Nolen Dr. in Madison, WI. Day 3 (Wednesday a.m.) 8:30 - 11:30 a.m. ($45) When traveling south on John Nolen, it’s the last driveway SECTION B: Property Policies, cont. & WI Property Insurance Law Day 3 (Wednesday p.m.) Noon - 4:00 p.m. ($45) before Highway 12/18 (Beltline). Located near the Alliant SECTION B: Casualty Policies, Terms & Concepts Energy Center and Sheraton Hotel. Day 4 (Thursday) 8:30 a.m. - 4:00 p.m. ($90) INCLEMENT WEATHER SECTION B: Casualty Policies, cont. & WI Casualty Insurance Law If weather conditions are questionable, use your own judgment regarding your personal safety. If Madison public  Please contact Kathy@IIAW.com for information about schools are closed, the IIAW is closed and pre-licensing is multiple registration discounts. canceled for the day. Canceled classes are made up on The course fee includes all class materials. Materials are Friday. distributed on the first day of class. You receive: HOTEL INFORMATION • The Life & Accident/Health or Prop. & Casualty Insurance Students requiring lodging will receive a special rate at the Study Manual. Clarion Suites, 2110 Rimrock Rd. in Madison. Please call • The Intermediary’s Guide to Wisconsin Insurance Law. the hotel directly at 608.284.1234, and ask for the • The State of Wisconsin Ins. Licensing Candidate Handbook. independent insurance agent’s discount. This provides all the necessary information to obtain a license.

To register, click the Education tab on IIAW.com. For Wisconsin exam info, visit prometric.com.

CONTINUING EDUCATION IIAW ONLINE & LOCATION CE CLASSES IIAW Webinar: Cyber Liability 3 CE Credits Approved Date: May 3, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM IIAW Webinar: Dispelling the Myths of Workers’ Compensation 3 CE Credits Approved Date: May 7, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM IIAW Webinar: Insuring Hobby and Small Farms 3 CE Credits Approved Date: May 8, 2018 Location: IIAW Webinar – iiaw.com/events Time: 8:00 AM – 11:00 AM IIAW Webinar: E&O: Roadmap to Policy Analysis – Part One 3 CE Credits Approved Date: May 10, 2018 Location: IIAW Webinar – iiaw.com/events Time: 8:00 AM – 11:00 AM IIAW Webinar: E&O: Roadmap to Policy Analysis – Part Two 3 CE Credits Approved Date: May 10, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM IIAW Webinar: Agent Pre-Licensing School, Life & Health Date: May 14-17, 2018 Location: Madison, Wisconsin Time: 8:30 AM – 4:00 PM IIAW Webinar: Commercial General Liability Coverages 3 CE Credits Approved Date: May 14, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM IIAW E&O Risk Management: How To Manage Changing Risks and Opportunities (Lunch Provided) 6 CE Credits Approved Date: May 15, 2018 Location: Green Bay, Wisconsin Time: 9:00 AM – 4:00 PM IIAW Webinar: Protecting Your Most Valuable Asset 3 CE Credits Approved Date: May 15, 2018 Location: IIAW Webinar – iiaw.com/events Time: 8:00 AM – 11:00 AM

IIAW Webinar: Contractors Liability Exposures…Risk Analysis to Coverage Solutions 3 CE Credits Approved Date: May 16, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM IIAW Pre-Licensing School, Property & Casualty Date: May 21-24, 2018 Location: Madison, Wisconsin Time: 8:30 AM – 4:00 PM IIAW Webinar: 10 Things Every Commercial Lines Agent Ought to Know 3 CE Credits Approved Date: May 21, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM IIAW Webinar: Homeowners Hot Topics…What You Need to Know 3 CE Credits Approved Date: May 22, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM IIAW Essentials of Legal Liability and Insured Status (AM Session) – Hosted by Gates 4CE Credits Approved Date: May 23, 2018 Location: Madison, Wisconsin Time: 8:00 AM – 12:00 PM IIAW Essentials of Legal Liability and Insured Status (PM Session) – Hosted by Gates 4CE Credits Approved Date: May 23, 2018 Location: Madison, Wisconsin Time: 1:00 PM – 5:00 PM IIAW Webinar: Ethics & The Law 3 CE Credits Approved Date: May 23, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM IIAW Webinar: Farm Liability Coverages 3 CE Credits Approved Date: May 24, 2018 Location: IIAW Webinar – iiaw.com/events Time: 8:00 AM – 11:00 AM

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AGENCY MANAGEMENT

PSST ... 5 THINGS YOUR BOSS DESPERATELY NEEDS REVERSE MENTORING IN Here’s something you can bet on: Your youngest employees are already way smarter than you in lots of areas. As a leader, are you taking the time to learn from them? For bosses and senior leaders, staying relevant and effective means finding a way to keep up to date on what’s just coming on the radar—and that’s where reverse mentoring comes in. Reverse mentoring—in essence, learning from younger employees—isn’t a new approach. (It was popularized by former GE chief Jack Welch, among others.) But, in my experience, it’s sadly underutilized. As a leader, you can always benefit from fresh eyes, new perspectives and direct insights into new technology. Plus, it’s a two-way street: younger employees get to

debate that AI will prove to be the most transformative technology since the the Internet itself. Across industries—from cars and manufacturing to banking and advertising—progressive companies are already making massive investments. But, be honest: Do you have any idea how AI could change your business—not in a hypothetical way but in a right-here, right-now way? I speak with CEOs all the time who throw around buzzwords like machine learning and have no clue what it can (or can’t) do for them. In many cases, having unrealistic expectations for AI is

me, this is a huge missed opportunity from a communications perspective. (In fact, I wrote a best-selling book about it.) If there’s a channel where almost all of your employees (not to mention your customers and competitors) are already spending their time—exchanging ideas and offering opinions—shouldn’t you as a leader be there, too, listening and engaging? Younger employees—especial digital natives who grew up with social media— often have an intimate understand of different platforms and uses. I’m not

know senior executives and learn from their knowledge, too. Here are five areas where I think leaders like me can (and should) benefit from the understanding and passion of younger colleagues this year. This can be through informal chats (like #randomcoffees) or more formal mentoring experiences: the point is to deliberately make those connections with younger employees instead of letting this resource pass you by. Many of these themes revolve around tech, but I think some basic know-how should prove empowering regardless of what sector you work in:

just as bad as dismissing the technology outright. That’s why a little reverse mentoring here is critical. Find time to speak with recent science and engineering grads who’ve seen these tools up close and understand business applications. You might not understand every word of the discussion, but getting a grasp on AI is critical for staying relevant as a leader in the years ahead.

saying every VP has to get fluent in Snapchat, but a little reverse mentoring here can go a long way toward getting you up to speed and bridging the communication gap with your team.

Artificial Intelligence: There’s little

16 | MAY 2018

Social Media: It’s hard to find somebody who’s not on Facebook these days—unless that somebody is an executive. A full 61% of Fortune 500 CEOs still have no social media presence whatsoever. To

Diversity and Inclusion: 2017 was a year when gender discrimination across industries, especially media and technology, leapt into the headlines and demanded attention. Yet, diversity extends beyond gender to encompass race and ethnicity, age, ability and more. I’ve seen up close how younger employees and HR professionals bring a powerful awareness around these issues, and they’re often equipped with a critical theory toolkit

WISCONSIN INDEPENDENT AGENT

older leaders lack. Take, for example, sensitivity around the impact of unconscious bias—a term that wasn’t even part of the corporate vocabulary until a few years ago. It’s now a given that you don’t have to deliberately show prejudice toward one group for bias to be present. Implicit and unintended stereotyping in the workplace can be just as harmful—if not more so. The more that leaders can learn on this topic, the better equipped they’ll be to identify unconscious bias and root it out within their organizations.

costs that go along with it. While some critics dismiss blockchain as hype, boosters insist that the applications are virtually endless, enabling companies to cheaply and safely do everything from manage healthcare records to verify voters, negotiate contracts and certify supply chains. So could blockchain change the course of your business? Your best bet here may be to find that guy or gal on your IT team who bought Bitcoin when it was going for sub $100 and pick their brain … provided they haven’t retired to a Caribbean island already.

Cryptocurrencies and Blockchain: OK. We all regret not investing in Bitcoin back in the day. But, beyond that, why is this whole cryptocurrency thing causing such a stir? And why should ordinary businesses care? At root, much of the excitement centers around the tech behind Bitcoin, blockchain—a kind of

Apps: Sounds silly, but a little reverse mentoring in apps might just save your business. Right now, do you know what apps are on the homescreens of your employees straight out of university? Which ones do they open up every day, sometimes multiple times a day? Chances are—even if we’re talking about

digital, decentralized ledger for transactions that are made across a peer-to-peer network. This sounds, well, boring. But blockchain is powerful because it allows sensitive exchanges to take place—like transferring money or settling securities—without the need for a centralized third party like a bank and the

games or emoji makers—there’s a glimpse of the future to be gleaned there. Before Uber or WhatsApp or Instagram were multibilliondollar, industry-changing behemoths, after all, they were apps on some twenty-something’s phone that no one over the age of thirty had ever heard of.

Case in point, HQ Trivia. I started noticing younger employees playing the live, game show-like app last fall. Back then, it had a few thousand users. Now, it has a few million. To me, this is a powerful wake-up call: Posting on a Facebook news stream is great and all, but there’s something magical about live, real-time interaction with others. In HQ, I see what the future of social media and gaming might look like—and I never would have caught on if not for the younger employees on my team. Once upon a time, reverse mentoring was reserved for the Luddites in the office who couldn’t open an email or do a Google search. But the accelerating pace of technological change means that brand new tools and techniques are now emerging every few years (or months!), not just every few decades. You certainly don’t have to be “old” to be out of touch, any more. Leaders of all ages looking to stay relevant would be wise to schedule a little reverse mentoring time with into their calendar this year. > Ryan Holmes is a serial entrepreneur, Ryan Holmes started his first business in high school, ultimately opening a string of ventures—from a pizza restaurant to a digital media agency— before starting Hootsuite in 2008. As founder and CEO, he has helped grow Hootsuite into the world’s most widely used social relationship platform, with 16-million-plus users, including more than 800 of the Fortune 1000 companies

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MAY 2018 | 17

SALES

THE MOST POWERFUL SALES SKILL FOR INSURANCE AGENTS Salespeople are always looking for the next resource to help build rapport, differentiate from the competition, and make more sales. Of all the arrows in your sales production quiver, there is one that stands above the rest.

4) Questions cultivate humility 5) Questions unlock doors

Questions. An average question is still better than a great answer.

Asking the Right Questions Early in my insurance production career, I quickly realized that I didn’t have the experience, knowledge, or talent of other seasoned insurance producers. The awareness caused me to lack confidence in myself and it showed in my results. This lack of confidence continued until I discovered a big secret….at least it was a secret to me. People didn’t really care how much I knew, how long I was in business, or my insurance expertise as much as they cared about themselves and their business. The power of building rapport, differentiating from the competition, and making more sales wasn’t based on the quality of my answers nearly as much as it was based on my ability to ask the right questions.

There should be no doubt by now that questions are vital for every successful insurance producers, but what are the best questions to ask? The purpose of your questions is to gather information, determine their value systems learn the decision-making process, and differentiate. You know you have asked some great questions when the response is, “No one has ever asked me that before?” In his best-selling sales book, “The Little Red Book of Selling,” Jeffrey Gitomer lists 7 powerful questioning success strategies. 1. Ask questions that make the buyer evaluate new information

Does this mean the experience, knowledge, or talent isn’t important? Of course not, you must continually be improving in these areas. However, the most successful sales producers spend much more time learning about their future ideal clients than they do telling their future ideal clients how much they know.

2. Ask questions that qualify needs

The Power of Questions

5. Ask questions that separate you from the competition

Questions are the lifeblood of insurance agency producers. Before I discuss the best types of questions that producers should be asking, let’s unpack the why. Why are questions so important?

6. Ask questions that make the prospect think before giving a response

1) You only get answers to the questions you ask.

7. Ask power questions to create a buying atmosphere

2) Questions lower walls

You are a professional

3) Questions lead to the highest form of communication

When meeting with your future ideal client, it’s imperative that act and sound like a trusted advisor, not “just another insurance agent.” There

18 | MAY 2018

3. Ask questions about improved productivity, profits, or savings. 4. Ask questions about the company or personal goals

WISCONSIN INDEPENDENT AGENT

SALES is a reason why most insurance consumers say that all insurance people sound the same.

a W hat’s the one thing you wish you could improve your risk management and insurance program?

Your job is to build strong relationships with your future clients and current clients, but it’s also to serve as an insurance professional.

The Ultimate Question

Professionals are world-class. Professionals are prepared. Professionals are committed to their craft. That means you must ask questions based on helping your future clients control their true cost of risk. Think of other top professionals like medical providers. Do they treat their patients without proper analysis? One of my favorite statements from Sitkins Group CEO, Roger Sitkins is, “Prescription without proper diagnoses is malpractice.” How do you know how to help someone…..or even if you should help someone without asking the right questions? The short answer is that you can’t.

I am the father of five children from teenager to baby (Yes, I know how this happens:). Kids are a great source of wisdom even when they don’t even realize it. Children can teach us many things and one of the biggest lessons I have learned from my children is to naturally be curious about everything. They ask question after question to learn, understand, and sometimes to get what they want. They also have mastered the most important question of them all, the ultimate question. If you are a parent or have been the parent of young children, you already have heard the ultimate question more times than you care to admit. Are you ready for the ultimate question……..WHY?

Here are some sample questions to get you thinking about questions that build rapport and diagnose your future clients’ main issues. Remember, these are just examples and it’s up to you and your agency to determine the best questions that reflect your client’s needs and your agency’s strengths.

Yes, WHY? These three letters are magical.

a H ow would you rate the effectiveness of your current risk management program?

You can also use things like…. “Tell me more,” “How does that make you feel?” “What else should I know?” The more information you gather and the more questions you ask, the better equipped you are to serve the needs of your future client.

a H ow often do you currently conduct your organization’s risk assessment? a W hat process do you have in place for getting your employees back to work after an injury? How is your current program assisting you with this process? a O utside of premium, which by the way is only one aspect of the true cost of risk, what to you most value in your current insurance program. a H ow do you current determine the effectiveness of your risk management program? a H ow successful was your latest experience modification assessment? a H ow have you determined the amount of retained earnings required for your business to survive if a major loss were to occur? a I f you and I were having this conversation three years from today, what must happen to ensure you are happy with your risk management and insurance program? a H ow much time do you or a member of your team currently spend handling insurance issues?

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When a future client provides an answer to one of your questions, don’t just say “OK,” and start your pitch. There is always another question and if you aren’t sure of the next question to ask, simply ask “WHY? “

Asking Great Questions is Skill That Must be Practiced and Developed One of the common traits I see of top insurance producers is that they are relentlessly prepared. Before every phone call, appointment, or presentation, they have done their homework and know the most important questions to ask. The skill of asking great questions doesn’t just happen by accident. Use your weekly sales meetings (you have those right?) to practice the art of asking questions. Instead of watching one more episode of your favorite show on Netflix, do your homework and create three top risk-based questions that you can ask your future ideal clients. To be a true professional, build rapport, and provide true risk analysis, you must master the art of asking questions. Professionals invest their time and energy in becoming the best. You are a professional. No other sales skill will serve you better. Remember, even an average question is better than a great answer. What would happen if you begin to ask great questions?

> Brent Kelly is an executive coach and speaker with the Sitkins Group. He helps agencies define a clear path to sell more, retain more, and earn more through the “ProFit Experience.” Contact Brent at brent@ sitkins.com or learn more about the programs Sitkins Group offers at www.sitkins.com.

MAY 2018 | 19

Doing The Right Thing Since 1964

The Roe Family

Patrick, Jim, Katie and Andy

It’s the right thing to do. To keep your agency relevant, you just need the right products and the right people. Our team of dedicated and attentive professionals can help you fill the gaps in your insurance offerings, providing more opportunities for sales. The more you get to know us, the more you’ll see the possibilities.

Let us help you find the right solutions. ®

TECHNOLOGY

HOW BLOCKCHAIN WILL ENABLE PAY-AS-YOU-GO INSURANCE For most people, insurance is just something we pay monthly or yearly without a second thought. Yet it’s the very thing that financially protects some of our most valuable assets — like our homes, cars and health.

And sure, you may have mulled over coverage amounts and discounts during the initial policy purchase, and maybe you even read the fine print (we said maybe). But what if you have too much coverage? Or not enough?

communicate and gather information. They allow us to move beyond old school data-entry and explore how we extract and manage data from a safe record.

What exactly is a blockchain?

TECHNOLOGY

Enter blockchain technology. This relatively new concept is making waves across the tech scene and could revolutionize the way we buy and pay for insurance — with the amount of coverage that isn’t too high or too low for your situation. But to understand how blockchain technology works, let’s first explore its foundation: digital distributed ledgers. Ledgers have been around since practically the beginning of time. They’re about as old as currency and writing — evolved from clay tablets to paper bookkeeping to digital spreadsheets — and are still used today to document records of transactions. While paper forms still play a major role in our day-to-day activities (think cash, bills, signatures, certificates), developments in cryptography and advanced algorithms have allowed conception of distributed ledgers. So, what makes these distributed ledgers significant? Simply put, they’re a part of a larger network with a unique distribution channel. It sounds complicated (and it is), but know that these ledgers enable for a new record-keeping system that goes beyond a simple database. Plus, unlike paper forms, distributed ledgers enable us to protect and formalize connections in the complex digital world.

People spend more time online than ever before — browsing retailers, depositing checks, ordering sushi. All of these actions build our unique digital selves. This information creates “chains” of data. This data is then formed into “blocks” to be disbursed across a worldwide network (here’s where our digital distributed ledgers come into play). These blocks contain timestamped records — down to the second — that can’t be hacked or corrupted, forming a sort of digital DNA. Since there’s no centralized authority that can control this information, blockchain technology is considered incredibly powerful and secure.

Insurance and blockchain technology So, how does this technology disrupt insurance? Well, let’s start by laying out how insurance works. Basically, there’s an established contract between two parties (insurer and policyholder). Yet there’s room for human error on both sides — like complex language (mumbo jumbo) on the insurer’s side and bogus claims on the policyholder’s side, for example. A smart contractworks to alleviate trust issues (which are not possible through traditional contracts) and decrease transaction costs.

Transparency with smart contracts Most importantly, these ledgers are changing the way we

22 | MAY 2018

In the simplest form, smart contracts are code that execute once WISCONSIN INDEPENDENT AGENT

TECHNOLOGY specific conditions are met on a blockchain. Here’s how it works: first, contract terms are agreed upon, coded and placed in the blockchain. Once an event triggers, the contract goes into action. Think of smart contracts like a vending machine: You put money into a machine (cannot be changed halfway through or undone). The machine keeps the money and gives you a candy bar. The contract has been executed. Specific to the insurance industry, smart contracts can play a vital role in multiple ways. They enable policy documents to be stored on multiple digital ledgers so all are available for amendment and evaluation by different parties and can never be altered or lost without the parties’ agreement. Also, they streamline legal and contractual procedures in a simple and secure manner.

Smoother claims process When a claim is entered, the smart contract on the blockchain can verify valid claims. It could detect any malicious activity, such as multiple claims for one accident. Plus, it makes the whole process quicker without the need for human intervention.

Improves efficiencies Switching insurance companies can be … tedious. Smart contracts on blockchain allow verified (and secured) data to be easily accessed and shared without time-consuming data entry or lengthy verification.

Fraud prevention The greatest reason for insurance companies to get aboard the

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blockchain train? To prevent fraud. According to the FBI, each year a staggering 40 billion dollars is contributed to fraudulent activity — with the average American family taking on the burden of around $400 to $700 in increased premiums. Blockchain technology is known for authenticating police reports, purchases and more, which works to eliminate fraud.

Pay-as-you-go insurance Blockchain technology is helping rebuild trust that has long been broken between insurers and policyholders. As applied to pay-as-you-go insurance or usage-based insurance (UBI), this technology could help form a deeper connection. UBI is a relatively new concept that interprets the number of miles you drive and adjusts your rate accordingly. In theory, this type of insurance encourages people to drive less and drive safer for, yep, you guessed it, lower rates. A win for both insurer and policyholder. Blockchain could enhance UBI products by storing collected data from vehicle sensors in the blockchain, thus lowering costs for drivers and providing insurance companies with complex, protected consumer data. A study by Allied Market Research suggests the UBI market could explode from 15 million to 142 million consumers in the next five or so years. So, pay-as-you-go insurance could be the answer to discovering the right amount of coverage for your lifestyle, with secure blockchain technology helping to vastly improve the process.

>H aden Kirkpatrick is the director of marketing strategy and innovation at Esurance, where he is responsible for all initiatives related to product and service innovation.

We understand the importance of partnerships and take great pride in building strong, stable relationships with our agents and policyholders. Through experienced claims expertise and hightouch customer service, we are there when we are needed most. Learn how you can represent IMT Insurance & Wadena Insurance at imtins.com/contact_us.

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MAY 2018 | 23

TECHNOLOGY

WHAT THE INTERNET OF THINGS WILL DO TO INSURANCE One of the best (worst??) features of the interwebs is how you can drill down ever further into what ever rabbit hole strikes your fancy. In the spring, a young man’s thoughts turn to…fishing. At least ’round here. Earlier this month, a couple of different research projects amplified each other. The blog on voice computing paired up with some discussions with an insurtech startup working in the smart home arena. One hyperlink led to another and soon Amazon had a number of packages in transit. Changing Nature of Risk is ACT’s working group that looks at new exposures and coverage availability for agents and carriers. One of our advisories is an exploration of the Internet of Things (IoT). Rather than regurgitate that here, if you need a refresher, take a quick gander.

TECHNOLOGY

Insurance and IoT Ernst and Young wrote a white paper in 2016 on the opportunities that IoT provides to the insurance industry. As might be surmised, in an analysis of seven industries, insurance comes in last in terms of the number of companies able to use insights from new data sources to boost customer value.* In E&Y’s view, that data can come from 4 different sources. > Wearable technology that provides health metrics > S ensors attached to mobile objects reporting on location or performance > Location based sensors such as home thermostats >G eospatial Information Systems that provide information on huge systems such as hydrological data

24 | MAY 2018

These sensors are then connected into communication networks that provide insights that were previously unavailable. Think about how your use of a mapping program on your phone enables real time updates on traffic congestion. All of this data is communicated with cloud based applications that turn that data into information in real time. This information provides three distinct advantages to insurance carriers. First, because the data is real time and direct from the sensors, a direct connection to experience with less unintentional (or otherwise) filtering. More accurate data means more accurate insights. Second the direct connection can provide a closer relationship to the insured and facilitates an understanding of how the insured’s needs change over time. Finally, that greater customer intimacy provides the ability to develop customized insurance products with features that appeal to customers. The implications for how an insurance company could use these insights to improve underwriting and pricing algorithms are huge. Imagine being able to identify changing loss trends even before the claims payments have been made and changing pricing models instantaneously. An insurance company could develop products that allow customers to up sell themselves on features and benefits that they value. Or even more radical, down sell less desirable customer segments.

New Capabilities, New Opportunities Potentially the most revolutionary aspect of all of this new information is a radical restructuring of the insurance value WISCONSIN INDEPENDENT AGENT

TECHNOLOGY proposition. Historically, the primary reason most insurance products were bought was the promise of payment after loss. But what happens to our industry when the numbers of losses and total claims decrease by 10, 20 or even 50 percent? Perhaps you are out of state on vacation and a temperature device in your home reports that interior temperatures are dangerously low and your pipes may freeze. A technician could be dispatched to service your furnace.

few years away from most vehicles on the road being autonomous, the reduction in losses could be dramatic. Some members of the Society of Automobile Engineers working on autonomous cars believe that their vehicles will eliminate 80% of human caused accidents. Combine that with smart road surfaces reporting weather conditions and traffic flow rates. Perhaps a majority of vehicle accidents can be eliminated. While this might be the most dramatic example of how IoT can affect the insurance industry, it is not the only one. IoT will mitigate losses in multiple lines.

Water damage claim averted Or possibly your iHeartMyself device reports potentially deadly arrhythmia. A medical professional is automatically notified and an Uber is dispatched to take you to the local hospital for the appropriate treatment. Major hospital stay and expensive rehab avoided. Dan Burrus, a noted speaker and futurist, has defined two principals for future trends: hard vs soft. “A hard trend is something that will happen: a future fact. A soft trend is something that might happen: a future maybe.” That there will be significant loss reduction in some existing lines of business and segments is a hard trend. Whether or not the changing nature of risk and new exposures will replace some or all of those claims dollars is unknown. As an example, statistics say that 90% of vehicle accidents are caused by human mistakes. If autonomous vehicles are only half again as safe as we are, then when most or all vehicles are autonomous, we should see a 40+ % decrease in accident frequency. Even though we’re quite a

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+ What does that do to demand for insurance products? +H ow does an insurance organization realign the value proposition when the potential for losses decrease dramatically? +W hat happens to an industry when dramatic, fundamental changes take place to the underlying economics?

Long Story Short The Internet of Things is being embraced in many industries. Connecting sensors to cloud applications in order to gain new insights and create new value and services is proceeding at a rapid pace. Although insurance lags in these developments, both established players and new startups are working to leverage these new capabilities. Hardware manufacturers are developing loss control devices. Industrial equipment manufactures are instrumenting their products so that performance can be remotely monitored. Biometric wearables get smarter and more capable every day. Software companies and app developers are building reporting and control capabilities. Insurance companies are forming partnerships with established companies and start ups alike. The world is becoming more interconnected every day. The best way to get a feel for what is possible is to plug yourself into the world of sensors and connected devices. A simple place to start is in your home. Purchase a smart thermostat or a Phillips Hue Lighting starter kit. A smart thermostat will provide a taste of the possibilities but operate in the background. Phillips LED lightbulbs aren’t the least expensive on the market, but the Phillips app is well designed and feature rich. The color changing bulbs are a bit pricey, but the white-only lights aren’t too bad at $ 12 per bulb. Note that you will need one Hue bridge (included in the starter kit) to plug into your router. Once you get your bulbs installed you can create routines that will welcome you home, turn out lights when you leave, and make lights turn on and off when you are out of town to make it appear that you are still home. S ee how you’re reducing your exposures and potential losses? Once you get some experience with IoT, you might find that you’re adding security cameras or smart outlets to control other devices. Think I’m all wet, or right on? Hit me up with your objections, or raves on how you are using connected devices to improve your life and what you think they mean for the insurance industry. >M arty Agather is a leading author and speaker on insurance technology. Marty’s position as an insurance technology thought leader has been developed through a career of leading change in industry organizations and processes.

MAY 2018 | 25

TECHNOLOGY

WHY DATA IS HR’S MOST IMPORTANT ASSET The average Human Resources (HR) team is sitting on a data gold mine, which is the theme of my new book ‘DataDriven HR’. There’s recruitment data, career progression data, training data, absenteeism figures, productivity data, personal development reviews, competency profiles and staff satisfaction data, just for starters. Plus, in addition to traditional HR data sets, companies can now collect so much more data – scanning social media data, for instance, or analyzing the content of emails to gauge employee sentiment.

TECHNOLOGY

Using HR data can be legally and ethically challenging, but incredibly valuable – probably the greatest asset the HR team has. Why? Because when HR data is used to improve decisions, make employees happier, and optimize processes, it adds value to the company. In the past, a lot of HR data went unused or, if it was used, it was put into charts and tables for something like a corporate performance pack. Now, in the era of big data and analytics, companies are turning their data into insights, such as predicting when employees will leave, where to recruit the most suitable candidates from, how to identify and attract those suitable candidates, and how to keep them happy once they become employees. All this means that HR data is more valuable than ever before. So it’s no wonder that a report by the Economist Intelligence Unit found that 82% of organizations planned to either begin or increase their use of big data in HR before the end of 2018. This has given rise to ‘intelligent HR’ as a bit of a buzz phrase.

recruitment and people management, and wasteful, expensive activities like annual staff satisfaction surveys take up time that could be better spent elsewhere. Plus, there’s the issue that HR is traditionally seen as very people-orientated, and not so much about numbers and data. Even when data does play a role, it’s not necessarily being used in a smart way that’s most relevant to the business in question. A lot of HR data analysis comes in the form of standard KPIs measuring factors like absenteeism. After all, metrics like this are easy to measure, and they’re measured by most companies as a matter of course (the old case of, ‘if they’re doing it, so should we’). But, these days, there are far more unique and valuable HR metrics that can be measured – metrics that can deliver business-critical insights and have a significant impact on the organization’s performance. This is where the idea of data-driven HR comes from. HR teams can use data to make better HR decisions, better understand and evaluate the business impact of people, improve the leadership’s decision making in people-related matters, make HR processes and operations more efficient and effective, and improve the overall wellbeing and effectiveness of the company’s employees. All of this can have a huge impact on a company’s ability to achieve its strategic aims, and that’s what makes HR data so valuable.

Intelligent HR is data-driven HR Despite having access to a wealth of data, in my experience, too many HR teams spend the majority of their time on admin tasks or legal issues. Clunky staff appraisals, the day-to-day minutia of

26 | MAY 2018

This idea of the data-driven HR team is certainly gathering pace, and HR and people management is undergoing a data-fueled revolution. This part of business that has traditionally focused

WISCONSIN INDEPENDENT AGENT

TECHNOLOGY on softer elements like people, culture, learning and development, and employee engagement is becoming increasingly driven by hard numbers and data analysis.

Adding value wherever possible Truly intelligent or data-driven HR focuses HR data and analytics on the goal of adding value and driving performance across the organization – all the time, not just every now and then or on specific projects. With intelligent, data-driven people management, the top priority is to add value to the organization in the smartest way possible, using all the tools at the HR team’s disposal: data, sensors, analytics, machine learning, artificial intelligence, and more. Take Google’s approach to people management, as a quick example. Google gives staff free meals, generous paid holiday allowances, access to ‘nap pods’ for snoozing during the day, and space to grow their own fruit and vegetables at work. Why? It’s not because Google’s leadership team feel all warm and fuzzy about their staff (or, at least, that’s not the only reason). These policies and decisions were based on what the data told Google would increase employee satisfaction. And the value to the company? While staff turnover is consistently high in the tech world, Google has been voted the top company to work for in eight out of the last 11 years.

I’m certainly not saying that HR should only be about data. People will continue to be a central driver of success, even in this age of increasing automation, robotics and artificial intelligence. What I am saying is the role of the HR team is changing and, as our ability to gather and analyze ever-increasing amounts of data grows, so too do the opportunities for HR teams to add more value to the organization. This is what makes HR data such an important asset. Thank you for reading my post. Here at LinkedIn and at Forbes I regularly write about management, technology and Big Data. If you would like to read my future posts then simply join my network here or click ‘Follow’. Also feel free to connect on Twitter, Facebook or Slideshare. Also, you might like to read more about how data and analytics are transforming HR in Data-Driven HR. It’s packed with real-life examples and practical ways HR teams can deliver maximum value in our increasingly data-driven world. And if you want something to read now, then you could check out my my new and free ebook ‘The 9 tech mega-trends that are shaping our world’.

>B ernard Marr is an internationally best-selling author; keynote speaker; leading business, technology and data expert

JOIN a Top 100 Agency

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.

Q: Will I make more money?

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.

Q: How can I maximize my time?

A. We handle staff management, HR, accounting, IT, rating, office management and other administrative details. This allows Producers to spend more time with their families or growing their book on their terms.

Q: How does carrier contingency work?

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

MAY 2018 | 27

ERRORS & OMMISSIONS

PROCEED CAREFULLY IF YOU RECEIVE A SUBPOENA Over the past few years, we have seen an increase in the number of subpoenas served on insurance agents even if they are not a party to the litigation. How those subpoenas are handled can mean the difference between whether or not they develop into E&O lawsuits. The purpose of this article is to instruct and inform you as to how to proceed should you ever be served with a subpoena in litigation wherein you are not a party to the lawsuit. Any agency receiving a subpoena should proceed with caution. Though the caption on the subpoena does not list the agency as a party to the litigation, the fact remains that a legal proceeding is pending and it is not difficult for the lawsuit to be amended to add the agency as a party. Sophisticated attorneys will often serve subpoenas in order to try and obtain documents or testimony that could help support a claim against your agency. For this reason, we suggest every agency should have procedures in effect as to exactly what must be done if it receives a non-party subpoena. An agency that receives a subpoena is legally obligated to comply with that subpoena, or it runs the risk of possibly being held in contempt of court, even if the subpoena is somehow defective. A subpoena cannot simply be ignored or disregarded. For this reason, Swiss Re Corporate Solutions always suggests that

is confidential and might not otherwise be something to which the party issuing the subpoena has a right to obtain. The documents and ESI should be reviewed by your lawyer to ensure the proper documents and ESI are disclosed. The second type of subpoena requires someone to appear at a deposition or trial to testify. Usually it is a deposition for a lawsuit involving one of your insurance customers. Again, it is important for an agent to be represented by a lawyer. The lawyer will review the pertinent materials with you and help prepare you for your testimony at the deposition. It is preferable to be prepared when you testify. It diminishes the chance the agency will be brought into the lawsuit as a party. Moreover, a lawyer will attend the deposition with you to ensure the rules of court are followed and that your rights are protected. For example, the rules of court, depending

the language contained in the Swiss Re Corporate Solutions E&O policy, issued to MIIAB members through Agents Assistance Corporation, defines a claim as including the receipt of “a summons, a subpoena, or any other notice of legal process.” As such, an agency that receives a subpoena and responds to it on its own without notifying its E&O insurer runs the risk that it failed to report a claim in compliance with the terms of its E&O policy. This failure to provide notice to the insurer could potentially result in a disclaimer of coverage by Swiss Re Corporate Solutions for any claim or lawsuit that may arise in connection with it. An additional reason why an insurance agency should advise its E&O insurer of a subpoena that it receives is because many E&O policies provide coverage to help assist the agency in complying with the subpoena. As an example, your current Swiss Re Corporate

an attorney be involved to assist the agency in responding to any subpoena received. Often, a subpoena is defective because it fails to comply with the statutory requirements for service, or it requests information that is beyond what is permissible. If your agency responds without the assistance of counsel, it is possible that it will be complying with an improper subpoena and, thus, disclosing information that it is not required to be disclosed pursuant to state law. In fact, responding to a defective or improper subpoena may result in an agency disclosing information that may be protected by state insurance regulations or Federal laws. Therefore, an agency that responds to a defective or improper subpoena puts itself at risk of facing a possible E&O claim, lawsuit, or possible regulatory action. There are three types of subpoenas that an insurance agency and insurance agent might receive when the agent and agency are not parties to a lawsuit. One, a subpoena that demands documents and electronically stored information (“ESI”). It is important for you to be represented by a lawyer when you produce the documents and ESI. For example, the documents and ESI might contain financial information about the insured that

upon the state, usually require the agency to be compensated for the work it performs producing the documents and compensation for an agent’s professional time spent attending a deposition. Your lawyer will negotiate the compensation with the attorney who served the subpoena on your agency. The third type of subpoena is a combination: a subpoena that commands your agency to produce documents and commands a person from the agency to testify at a deposition. You should immediately contact Swiss Re Corporate Solutions. We will assign an experienced lawyer to review the materials, prepare you for testifying, and to ensure the rules of court are followed. Many E&O policies contain language that defines a “claim” or “potential claim” against the agency as including the receipt of a subpoena. For this reason, it is a good practice for every agency to review the language contained in its E&O policy related to subpoenas so that it understands the policy terms and provisions related thereto. Our recommendation has always been that when an agency receives a subpoena it should immediately advise Swiss Re Corporate Solutions of the subpoena. For example,

Solutions E&O policy provides subpoena coverage of $10,000 per policy year, which is not subject to a deductible, to have counsel assigned to help the agency respond to subpoenas. In our experience, an agency with an attorney involved in responding to a subpoena is less likely to be dragged into litigation. It is for this reason E&O insurers provide this type of subpoena coverage. Every insurance agency should make certain that it has an established procedure in effect concerning how it will deal with any subpoena it receives. It should also ensure the procedure is known and followed by all employees. As part of that procedure, there should be a method for notifying the E&O insurer for the agency about a subpoena it receives. If, after being notified about the subpoena, the E&O insurer declines to assign counsel to assist in responding to the subpoena, the agency should then consider whether it may be best to retain counsel on its own. By following these steps, the prudent insurance agency will be in a better position to avoid becoming a party to litigation related to a subpoena it receives.

>M ark Shackelford is Senior Underwriter, Vice President Swiss Re Corporate Solutions

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. The views expressed in this article do not necessarily represent the views of the Swiss Re Group (“Swiss Re”) and/or its subsidiaries and/or management and/or shareholders.

28 | MAY 2018

WISCONSIN INDEPENDENT AGENT

“Keystone is for people who believe that powerful partnerships generate prosperity.” Elizabeth Schenk Vice President of Sales & Geographic Expansion

At Keystone, we provide you with the resources and expertise to meet the needs of your clients and grow your agency. We take a consultative approach and develop partnerships based on shared goals and mutual interests. Partnering with us provides you with the tools you need for unified stability and strength in an ever-changing industry. Because independence works better together.

Coming to Wisconsin June 2018 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.

CENTRAL INSURANCE COMPANY EXPANDS INTO WISCONSIN Founded in Van Wert, Ohio in 1876 as the Central Mutual Insurance Company, the Central Insurance Companies have evolved into a successful property and casualty group writing over 375,000 insurance policies for policyholders in 23 states. Central’s home office is located in Van Wert, Ohio, with regional offices in Atlanta, Boston, Dallas, and Van Wert. Central operates on a strong foundation of core values including Integrity

When an agency acquisition or consolidation takes place, Central treats

in the way they operate the business; Relationships developed working as a team and sharing in each other’s successes; and Excellence achieved by never compromising on quality, providing superior performance, and pursuing continual improvements. This commitment to excellence is reflected in the company’s

have caused its underwriting results to improve over several years.”

the acquiring or partner agency as a new prospective agency and performs routine due diligence. The company wants to ensure that the new relationship has a strong likelihood of success, as well as confirm that the new entity will continue to value the principles and culture that Central values. Central believes that consolidations

combined assets that total more than $1.6 billion, as well as its ‘A’ (Excellent) rating from A.M. Best. Central’s companion stock company, All America Insurance, was established in 1961, and is a wholly-owned stock affiliate today. Central sets itself apart through a corporate planning approach focused on consistency and stability. The company first decides on the degree to leverage capital, and then lets that decision determine the targeted growth rate in premium. In that way, Central lets its strength in capital govern the level of top-line growth the company prefers. The most recent President’s letter from A.M. Best that affirms Central’s rating reflects the company’s financial position and approach: “The ratings and outlooks reflect Central Insurance Companies’ (Central) strong riskadjusted capitalization, diversified personal and ‘Main Street’ commercial products. In addition, Central maintains a geographically disbursed book of risks that along with sophisticated pricing and disciplined underwriting practices

Central feels its approach balances and maintains a disciplined distribution and underwriting plan. The approach also guides and diversifies the geographic areas where the company does business. The company operates exclusively through the independent agency system and is currently represented by 420 agents. Central carefully considers cultural fit and location when appointing agencies. The idea isn’t to canvas every corner of the state with agencies, but to find agencies with new markets and/or agencies in underserved areas. The company is always looking for agency partners that fit its business model, but is also pleased with the consistency and relevancy of the current agency plant. Prospecting has begun in Wisconsin in anticipation of Central’s entry in January 2019. This expansion will not only grow the revenues of the com¬pany, but also spread operational costs over a larger geography, most of which isn’t as storm prone as their cur¬rent book.

will continue, and is committed to being open and receptive to win-win situations. Central considers any impact an acquisition or consolidation will have on the franchise value of current agency partners. The company has limited involvement nationwide with agency network groups. Central offers scholarships and internships as a way to encourage high school and college students to consider the insurance industry as a career option. Those students hail from a variety of disciplines ranging from marketing, IT, accounting, sociology, and education. The goal is to identify a well-rounded group of talent looking for a stable career. Central recognizes the dilemma of agency perpetuation and the unbalanced number of young talent entering the industry versus the number of upcoming retirees on the horizon. In addition to scholarships and internships, the company actively promotes the industry through programs like InVEST and Junior Achievement, and through supporting

30 | MAY 2018

WISCONSIN INDEPENDENT AGENT

INDUSTRY NEWS

college and university programs that offer risk management and insurance curriculum. Central is investing in rewriting policy administration programs and software to make the entire information and claims system more intuitive and simple. The company is deeply committed to maintaining and streamlining internal processing technologies, conveniences, and process improvements for customers, and adopting the latest best practices in cyber security. Central’s new service center approach can serve as an essential point of contact for the customers of independent agents. Just 18 months off the ground, the new center helps independent agents manage their workload by handling a range of basic servicing tasks, hereby freeing up agents to prospect, build business, and maintain key relationships.

WISCONSIN INDEPENDENT AGENT

In regard to contingency agreements, Central certainly wants a fair way to share profits with its agencies. The agreement was revamped from a 3-year to a 1-year program that is both profit and growth driven. The agreement also generates an overall return on a book of business with long-term profitability. One of the major changes to the agreement was changing the growth factor. It is viewed as a kicker, not a detriment to the agency; the goal is to not penalize for a flat year. The company was one of the first to do downloads for personal and commercial lines. Recently, Central also wrote its own “single sign-on” for all its systems. As ID Federation becomes more robust and widely accepted, Central is likely to support that single sign-on for agencies as well. Central believes it’s a great time to be an

independent agent. Customers understand that the world is getting riskier, and that it might be easier to sometimes press a button and get a policy. But that’s not what policyholders are buying. People seeking insurance are coming to work with you – the independent agent. Central believes those customers and prospects will pay independent agents to take care of important assets so they can attend to other aspects of their lives. The independent agent system is at the core of Central’s business model. By strengthening and maintaining the partnerships and distribution channel, Central anticipates a bright future for young talent entering the industry. The company also looks ahead to the continued ease of doing business with agency partners and the policyholders they serve.

MAY 2018 | 31

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GOVERNMENT AFFAIRS

RECENT STATE ELECTION RESULTS SIGNAL POLITICAL SHIFT MAY BE COMING Results from a recent Wisconsin Supreme Court race, along with a special election to fill a vacant State Senate district previously held by Republicans for almost two decades, are giving state Republicans pause and Democrats hope that the political winds may be shifting. It’s the type of momentum that a political party in power fears going in to an election year, but not unusual for midterms that have often proven to be unfavorable to the political party holding power. Governor Scott Walker, who faces re-election this year, has sounded the alarm with his supporters pointing out that recent state election results are a sign that a “blue wave” may be coming to the Badger State. In 2010, then President Barack Obama lost a total of 69 congressional seats. It was the most seats lost by a president’s party in a midterm since President Franklin D. Roosevelt back in 1938. Wisconsin’s state house flipped from complete Democratic control to Republicans taking over all of state government in what is known as a “trifecta”. President Obama’s party went on to lose 20 seats in the following midterms and state legislative Republicans expanded their majorities. This year’s fall elections are still several months out, but Democrats are going to do everything possible to unravel the GOP trifecta and restore power to their party. Wisconsin Republicans have held trifecta control since 2011 when they took over the three vital centers of state political power - the office of Governor (Walker), the state Assembly (63-35) and state Senate (18-14). Trifectas generally make it easier for the party in power to advance its agenda and harder for opposition parties to challenge it. This year, trifecta control by Republicans could be in jeopardy, especially if recent state election trends continue into November. The state legislature has adjourned its general business session for the year and lawmakers have returned home to their respective districts to begin a WISCONSIN INDEPENDENT AGENT

6-month long slog to win over the voters. Notably earlier this month, a more motivated base and strong turnout by Democrats statewide were able to carry Supreme Court Justice candidate, Rebecca Dallet, to a substantial 12-point margin of victory over her conservative opponent, Sauk County Judge Michael Screnock. Ordinarily, a state Supreme Court race wouldn’t gain national attention, but this race was anything but local news. Democrats are now using the victory as more proof that a political shift is coming not just to Wisconsin, but across the country. The Supreme Court election was a contest that saw the second highest voter turnout for a spring election since 2011. And despite the judicial election being officially “non-partisan”, both political parties and more than a dozen outside special interest groups engaged in the race to the tune of $3 million spent on electioneering activities. With the election of Dallet, Wisconsin’s seven-member high court narrows to a 4-3 conservative majority. Longtime Justice Shirley Abrahamson faces re-election next year and recent Walker appointee, Justice Dan Kelly, is up for election in 2020. Looking at the statewide election results, Dallet won the vote in areas of the state in the west and northeast that in 2016 helped carry Republican Donald Trump to the presidency. Areas where Dallet won and the large margin she won the election by is serious cause for concern for Republicans heading in to November. Another election from January of this year in northwestern Wisconsin also suggests a political shift may be on the horizon. In what some have characterized as a political upset, relative unknown Democrat Patty Schachtner won a State Senate special election over

Republican Assemblyman Adam Jarchow with an overwhelming 55 percent of the vote. The seat was vacated in late 2017 by former Republican State Senator Sheila Harsdorf who resigned her seat to accept an appointment in the Walker Administration as state Agriculture Secretary. Harsdorf had easily won the seat for Republicans since 2001, while Donald Trump also won the district with 55 percent of the vote just less than two years ago. History shows the rarity for a sitting incumbent Assemblyman (Jarchow) running for the State Senate to lose such an election. This outcome, along with Dallet’s Supreme Court victory, have served as a major wake-up call for Republicans, meanwhile Democrats are more energized and motivated than ever. Another important indicator of a political shift will be the results of two special elections being held on June 12th in the 1st Senate District and 42nd Assembly District. Governor Walker did not plan on calling special elections in these districts, primarily because the Legislature is adjourned and regular elections are being held in November. But two state courts recently ruled in favor of a legal challenge from Democrats that forced the Governor to call special elections next month. These vacant districts were held by Republicans until Walker appointed them to serve in his administration at the end of last year. If Democrats win back these two seats next month, it will be hard for Republicans to argue that a political shift is not coming to Wisconsin in the form of a blue wave. Buckle up and hang on for the ride. The midterm elections are fast approaching.

> Misha Lee, IIAW Lobbyist

MAY 2018 | 33

VIRTUAL UNIVERSITY

HOW MUCH “LOSS OF USE” IS NEEDED FOR “PROPERTY DAMAGE”?

Most general liability coverage cases, that address whether “property damage” has taken place, focus on the “physical injury to tangible property” aspect of the definition. That’s a more common scenario than whether there has been a “loss of use” of property (the other component of the definition of “property damage”).

In addition, whether there has been “physical injury” is usually answerable with the naked eye (or with some assistance). You can see that a building is no longer standing or that water intrusion has caused damage. On the other hand, whether there has been a “loss of use” of property can be more esoteric. So, between “physical injury” cases being more common, thereby providing more guidance, as well as involving a more easily identifiable injury, it is not surprising that “loss of use”-based “property damage” cases can be challenging. This was on display in Mid-Continent Casualty Co. v. Adams Homes of Northwest Florida, No. 17-12660 (11th Cir. Feb. 13, 2018). It is a construction defect case, but with an unusual aspect. Putting aside the non-relevant corporate background, Adams Homes of Northwest Florida built homes on land that had originally been designed for golf courses and holding ponds. Homeowners sued Adams seeking damages for Adams’ alleged negligence in failing to ensure the installation of adequate drainage. Adams sought coverage under a general liability policy issued by Mid-Continent. MidContinent denied coverage in 2009. Then, in 2015, Mid-Continent agreed to defend Adams, under a reservation of rights, after an 8th amended complaint was filed. Wow. Persistence. Mid-Continent filed a declaratory judgment action. At issue was whether there was “property damage” alleged. The definition of “property damage” was the one frequently seen in CGL policies: “a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or b. Loss of use of tangible property that is not physically

injured. All such loss of use shall be deemed to occur at the time of the ‘occurrence’ that caused it.” As the District Court saw it -- there was no “property damage” alleged as there was no “physical injury to tangible property.” The court stated: “In none of the one hundred and forty-seven paragraphs . . . is it alleged that Adams did anything that physically damaged [Homeowners’] homes.” The Eleventh Circuit concluded that it did not need to decide whether that was correct, as the lower court failed to consider the “loss of use of tangible property that is not physically injured” aspect of the definition of “property damage.” The Homeowners alleged that, on account of the manner of Adams’s construction – on land meant for retainage lakes -- “the streets adjacent to their homes, and the common areas they have access to, are now prone to flooding,” which has made “[Homeowners’] ordinary use or occupation of their property physically uncomfortable” and “disturb[ed] the [Homeowners’] free use . . . of their property.” As the Eleventh Circuit saw it, these allegations created a factual issue whether the Homeowners alleged “property damage” on a “loss of use” basis. Thus, Mid-Continent had a duty to defend Adams. The Eleventh Circuit went to the dogs for guidance in reaching its decision. It turned to the 1999 Florida appeals court decision in McCreary v. Florida Residential Property and Casualty Joint Underwriting Association. There the court held that an insured’s failure to control, supervise, and confine its dogs to its own premises was an “ongoing clear and present danger to the health, safety and comfort of [a neighbor]” that ultimately rendered him “unsafe and insecure in the use

and enjoyment of his own property.” This, the McCreary court held, created a factual issue as to the loss of use of the neighbor’s property. The court analogized the situation faced by the homeowners with the dog-fearing neighbor in McCreary: “These allegations [by the homeowner’s], fairly read, create a factual issue as to loss of use. Mid-Continent contends water is relatively harmless, unlike the McCrearys’ dogs, which entered Rebalko’s property and ‘caus[ed] an immediate danger to [Rebalko] and his pets.’ But the absence of allegations that the storm water runoff is placing Homeowners in immediate danger does not counsel a different result. Physical discomfort in the use of property, like insecurity and unsafety in the use of property, raises the specter of loss of use. Although it is unclear whether the physical discomfort caused by the run-off is severe enough to prevent Homeowners from using their property, the same was true of Rebalko’s allegations in McCreary. Rebalko did not allege he stopped using his property because of the McCrearys’ dogs; rather, Rebalko alleged he felt insecure and unsafe in its use. Like Rebalko, Homeowners are entitled to have any ambiguity about whether the physical discomfort caused by the run-off was severe enough to cause loss of use resolved in their favor. If the allegations of the complaint leave any doubt as to the duty to defend, the question must be resolved in favor of the insured.” The takeaway: In essence, at least for duty to defend purposes, the court read “loss of use” of property as “loss of enjoyment” of property.

> This article is reprinted with permission of its author, Randy Maniloff, as it appeared in the March 7, 2018, issue of his Coverage Opinions newsletter (Volume 7, Issue 2). Maniloff is an attorney with White and Williams, LLP located in Philadelphia, PA. Visit Coverage Opinions here: www.coverageopinions.info.

The Virtual University is a Big “I” members-only resource. Many articles are based on real-life questions received by the Ask an Expert service. This service ensures that the information is current and topical. Go to www.independentagent. com/Education/VU/. You will need to login with your IIABA username and password before using the VU. The IIABA does not assume and has no responsibility for liability or damage which may result from the use of any of this information.

34 | MAY 2018

WISCONSIN INDEPENDENT AGENT

Don’t let your clients get stuck in the penalty box.

At Western National, our Personal Auto policyholders are never penalized with premium increases for tickets or accidents. That’s our Penalty-Free Promise®, and it’s one we’ve stood behind for over 50 years. For the lasting penalty protection your clients deserve, turn to Western. “Penalty-Free” means an individual’s Personal Auto rates are never increased due to tickets or accidents. Initial and ongoing eligibility for coverage not guaranteed. Coverage not available in every state.

www.wnins.com

RISKY BUSINESS

WHAT IS AGENCY RISK MANAGEMENT? Many of you have heard or read IIAW promoting Agency Risk Management and the important role it plays in taking proactive steps to protect your agency, customers and employees. And while several agencies have taken the first step in understanding the exposures facing their business, others are still unsure of exactly what Agency Risk Management is and why it’s so important. What is risk management? ISO 31000 defines risk as “the effects of uncertainty on objectives”. In business, risk management is the process of analyzing goals and identifying and responding to the inherent uncertainties of the operation. Agency Risk Management is looking at the specific uncertainties for the agency that would have consequences in terms of economic performance and professional reputation and determining methods of managing those risks in a deliberate and effective manner. So, we’re talking about E&O risk, right? Yes, but that’s not all! While we have traditionally focused on E&O risk for independent agencies, there is a larger picture to look at. Think about the way you look at customer exposures. The Big “I” Agency Risk Management program does the same for your agency. We look at agency risk within four categories: operational, strategic, financial and physical hazards. Operational Risk: Within an agency of any size, operational risks exist due to procedures and systems that are in place within the agency. Operational risks are the primary culprit for E&O claims, so we spend a great deal of time focusing

on the invariable practices that are outlined in an agency procedure manual as well as how well agency employees document contacts with customers, carriers and third parties. An agency Operational Improvement Review or Agency Health Assessment will take a unique look at the operational risks for your agency. Strategic Risk: Many agencies do not take the time to create a strategic business plan or fail to make necessary updates to the plan they have. These behaviors increase the strategic risk of the agency. It is important to create a business plan and have regular reviews of the plan. If the business fails to deliver on their plan, fails to allocate the adequate resources or fails to respond to changes in the industry, they could quickly find themselves struggling to keep their doors open. Financial Risk: Understanding the financial risk of the agency requires a firm understanding of the agency’s financial health. An agency owner should have a clear understanding of the customer segmentation as well as the agency’s pro forma operating profit. Mitigating financial risk means making sound investment decisions and

turning financial risk into financial opportunity. Physical Hazards: Physical hazards can be easier to visually see but are often ignored and take a backseat to running everyday operations. Perhaps the agency building needs repair or working conditions are hazardous for employees. It is always important to recognize these hazards (especially as a business owner in the insurance industry!) and make sure that employees see an agency owner’s commitment to their well-being. At IIAW, we continue to look for additional resources to offer our members and we encourage everyone to be proactive about agency risk identification and mitigation. There are simple steps to protect the agency from a potential loss or reputational damage. In an industry constantly experiencing change and opportunity, the only way to be successful and stay relevant is to work together to mitigate risk and capitalize on opportunities in a calculated manner. > Mallory Cornell is the Director of Risk Management for the Independent Insurance Agents of Wisconsin.

EMERGING LEADER SPOTLIGHT Each month we will be featuring one of the active members of our Emerging Leaders Committee. Our May Emerging Leader is Naomi Sopko, Commercial Lines Underwriter at Burns & Wilcox. Tell us your name and a little more about you: Naomi Sopko and I grew up in Winneconne, WI but moved to the Milwaukee area for college. I have been here ever since! I am a Commercial Lines Underwriter for Burns & Wilcox, Ltd. How long have you been on the Emerging Leaders committee? This is my first year on the committee. How did you hear about the Emerging Leaders Committee? I heard about the Emerging Leaders Committee from my coworker, Jenna Zalud, and decided I needed to see what all the fuss was about. Why did you choose to become active with the Emerging Leaders committee? I didn’t know much about the committee until I attended the conference last July. Once I was there I realized how great of a networking opportunity it is for young insurance professionals. I knew I wanted to be a part of this fun and motivated group of people. What is your favorite EL event or activity that you’ve done with the EL group? I thought last year’s leadership conference was amazing. There were WISCONSIN INDEPENDENT AGENT

so many great speakers, and also plenty of social time to do some networking and make new friends. We also recently had a networking event at Nine Below. Everyone got to see how terrible I am at mini golf… but it was a blast. Hopefully we’ll be able to plan more of these smaller events in the future. Why should a new agent join the EL committee? Honestly, it’s the perfect way to meet other people like you in the insurance industry. We may not all have like backgrounds or work in the same line of business, but we do have the common goal of being successful at our jobs. Learning about what others do and hearing different perspectives on the industry is valuable knowledge. What is your spirit animal? I just took an online quiz (that I’m sure is 100% accurate) and it turns out I’m an owl. I actually think that fits pretty well! What is one professional goal for you in the next 3-5 years? I’d like to finally finish my ASLI designation. Hopefully it won’t take me three more years!

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West Bend Mutual Insurance is a Best Workplace in Financial Services & Insurance Great Place to Work® and Fortune Magazine recently named West Bend Mutual Insurance Company one of the Best Workplaces in Financial Services & Insurance. Inclusion on this national list is based on anonymous survey feedback from company employees. West Bend Mutual Insurance employees were asked to rate leadership strength and integrity, pride in their work and organization, opportunities for professional growth, and support for work-life balance among other factors. While companies look to recruit and hire the right candidate, job seekers are equally interested in finding the right position at the right company. Great Place to Work uses data and insights to write reviews that offer a true picture of the workplace and elevate the hiring experience. Companies with published Great Place to Work reviews show they are serious about creating great workplaces, are comfortable with transparency, and are interested in sharing the unique aspects of their workplaces treasured by employees. Great Place to Work is the global authority on high-trust, highperformance workplace cultures. Each year, more than 10 million employees in 50 countries take the Trust Index© Employee Survey, its proprietary research tool.

A.M. Best Affirms A- Excellent Rating for Society Insurance

of risk-adjusted capital, strong liquidity and conservative approach to loss adjusting.” “A.M. Best is the oldest and most prominent rating agency for insurance company solvency and creditworthiness. Their process for analyzing operating results and business plans is rigorous,” Parks noted. “This affirmation of financial strength and stability positions us well for greater success as we expand operations while continuing to produce underwriting profits.”

NEW EXECUTIVE VICE PRESIDENT NAMED FOR GREEN BAY REGION Ansay & Associates welcomes John Vose to new position Ansay & Associates, a leading regional insurance and benefits solutions agency, announced the hiring of John Vose as the Executive Vice President of its Green Bay region. Vose comes from The Hanover Insurance Group, where he served as Assistant Regional Vice President, overseeing the Personal Lines operation throughout Wisconsin. “John has a great history of building strong teams that consistently produce growth,” said Ansay & Associates CEO Mike Ansay. “For this position, we wanted someone who exemplifies leadership and teamwork, and John fit that bill perfectly. We look forward to the positive impact he’ll have on our organization.”

Society retains A.M. Best A- rating with Stable Outlook. Society Insurance recently had its overall financial strength affirmed as A- Excellent with Stable Outlook by national rating agency A.M. Best Rating Services. Society has maintained this rating and outlook since 2007. The A- Excellent rating was supported by a highly successful 2017 in which premiums grew for the seventh consecutive year, exceeding $171 million. Society also set a new record high in policyholder surplus, which increased by 8.4 percent to $153 million. These strong results led to a 98.4% combined ratio, securing an underwriting profit for the fourth consecutive year. Society earned a Best’s Capital Adequacy Ratio (BCAR) of 99.6%, which represents A.M. Best’s cumulative opinion of financial standing. “We achieved an extraordinarily positive ratio,” said president & CEO Rick Parks. “This result is due to our high level

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Over the course of his career, John has earned his CPCU designation while serving as an independent insurance agent, financial planner, and several management positions. John earned his MBA at Marquette University in Milwaukee. “I’m eager to help contribute towards becoming a best-inclass insurance agency in Wisconsin,” Vose said. “Ansay & Associates is known for its hardworking, forward-thinking employees. I’m pleased to be part of that team. Our future is bright.” Ansay & Associates, named one of “2017’s Fastest Growing Firms” by the Milwaukee Business Journal, now serves over 5,000 Wisconsin businesses and 20,000 individual customers. It has approximately 300 employees and 12 offices throughout Wisconsin. WISCONSIN INDEPENDENT AGENT

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Madison Mutual Insurance Chooses Roost® Home Telematics Solutions Smart Sensor Deployment to Increase Policyholder Engagement Sunnyvale, CA – April 18, 2018 – Roost, a leader in Home Telematics for property insurance carriers, today announced it has reached an agreement with Madison Mutual Insurance. In a strategic partnership focused on increasing policyholder engagement, Madison Mutual Insurance will offer it’s policyholders a free Roost Smart Water Leak and Freeze Detector or Roost Smart Battery. Serving customers in Illinois, Missouri, Wisconsin and Indiana, Madison Mutual Insurance is showing regional leadership by leveraging the industry’s most innovative home telematics platform. Through the technology deployment of Roost Smart Sensors, policyholders will be better able to help mitigate the cost and hassle of fire, smoke and water leak related claims. Further, Roost continues to expand its reputation as the leading smart sensor notification platform and customer engagement solution of choice. “Our policyholders rely on Madison Mutual to look out for their best interests and to be there in times of need,” said Mike Wenos, Madison Mutual Insurance President. “Not only will our agreement with Roost deliver smart sensors that give our customers the best new tools to mitigate their risk of water and fire loss, but they also strengthen our relationship and regular engagement with our policyholders.” The award-winning Roost Smart 9V Battery is a simple retrofit solution that transforms existing smoke alarms into smart alarms. If the alarm sounds and no one is home, a smartphone notification is delivered. The Roost Smart Water Leak and Freeze Detector is designed to sense water leaks as well as humidity and freezing temperature situations. Easily locate in places around the home most prone to water leaks such as sinks, hot water heaters, toilets and various appliances. It then delivers smartphone alerts via the Roost app to help minimize water damage and loss. These Wi-Fi enabled smart sensors don’t require a hub and set up in less than five minutes. “Madison Mutual Insurance cares about protecting their policyholders and employing the latest and most powerful tools to ensure their safety day in and day out,” said Roel Peeters, co-founder and CEO of Roost. “By offering Roost’s Home Telematics solutions, Madison Mutual is taking advantage of our best technology to both mitigate loss and deepen engagement with their policyholders.” Roost’s Home Telematics solutions are changing the way insurers engage WISCONSIN INDEPENDENT AGENT

with their policyholders, mitigate fire & water claims and drive new business growth.

R&R Names Mike Payne Vice President of Sales Mike joined R&R in 2012 and has served as a Commercial Account Executive. In his new role, Mike will be strategic in creating partnerships within businesses across the state. In addition, he will continue to help clients manage risk by providing proactive risk management services and bringing new and innovative ideas to the table. Mike’s resounding goal is to make clients more efficient and better/more educated buyers of insurance. “Mike’s innovative approach will be instrumental in the continued growth of R&R’s sales team, as well as the agency as a whole,” states Frank Maurer, Executive Vice President, R&R Insurance. “Mike has been a key asset to R&R and we look forward to the opportunity to expand on his knowledge, experience, and strategic approach to helping businesses.” Mike earned a Bachelor of Science in Marketing from Indiana University, Kelley School of Business. In addition, Mike is an active member of the Waukesha County community. He currently holds positions on the Waukesha County Business Alliance Policy Board, the City of Waukesha Plan Commission, the Wisconsin Manufacturers & Commerce Small Business Committee, and the Waukesha County Center for Growth Board. Mike is also a past recipient of the Waukesha County Emerging Leader Award.

AAA, Hertz team up to reduce distracted driving Despite multiple warnings and statistics sent out by traffic safety organizations every year, studies continue to show that distracted driving remains prevalent among drivers of all ages. As part of Distracted Driving Awareness Month in April, AAA – The Auto Club Group and Auto Club Group Traffic Safety Foundation are partnering with The Hertz Corporation on a campaign that encourages motorists to evaluate their driving habits and take a pledge to stay focused on the road, avoid cell phone use and minimize other distractions. “Too many drivers use their phones while behind the wheel,” said Amy Stracke, managing director of traffic safety advocacy

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for AAA – The Auto Club Group and executive director of the Auto Club Group Traffic Safety Foundation. “Our hope is that by taking the pledge to drive safely, people will be more committed to staying focused on the road, knowing how easy it is for distracted driving to become a dangerous habit.” According to the National Highway Traffic Safety Administration (NHTSA), distracted driving resulted in 3,450 deaths in 2016, with nearly one-tenth of fatal crashes reported involving distractions. The AAA/Hertz campaign will include the online pledge at AAA.com, safety messages at participating Hertz rental car locations, social media campaigns and more.

• Familiarize yourself with the vehicle’s controls before you hit the road. • If you have passengers, enlist their help so you can focus on driving. • Prior to departure, secure mobile devices and any objects that may move and distract you while driving.

Robertson Ryan Continues to Grow Robertson Ryan & Associates has a long standing reputation for attracting industry leading insurance professionals. As a Top 100 US Insurance Agency, they are the 53rd largest independent insurance agency in the US, according to the Insurance Journal. Their growth continues. In 2017 RRA’s western US presence clicked up a few notches with the addition of a Las Vegas Producer and Scottsdale/Phoenix location, which has 5 Producers.

AAA is celebrating 40 years of partnering with Hertz – offering exclusive discounts and benefits to AAA members – and has been working to educate the public on the risks of distracted driving since the 1980s. AAA members who take the pledge will receive additional savings on their Hertz rental car.

Chris DuBos joins Robertson Ryan as a Vice President / Producer. He holds insurance licenses in Life, Health, Property and Casualty and also holds his FINRA Securities 7 and 66 registrations. Prior to entering the financial services industry in 2004, Chris worked in the Aerospace Engineering & Defense division of The Boeing Company. A native of Seattle, Washington, Chris moved to the Midwest and was an All-American offensive tackle on the Wheaton College football team. Chris and his wife Jennifer have 4 children and live in Stevens Point, Wisconsin.

“Through our partnership with Hertz, we can reach additional motorists with information to help save lives,” said Nick Jarmusz, Wisconsin director of public affairs for AAA. “Distractions come in many forms beyond the use of a cell phone, such as interacting with passengers, eating or drinking, reaching for things in the back seat and programming your GPS while driving.”

Craig Ward joins Robertson Ryan as a Vice President / Producer. He has over 30 years of experience providing business insurance which include 18 years as an agency owner. In 2003 he earned his Certified Insurance Counselor (CIC) designation. Craig splits his time between northeast and southeast Wisconsin.

“We’re proud to partner with AAA on this important campaign,” said Bob Stuart, Hertz Executive Vice President of Global Sales. “Working together, we hope not only to educate people about the risks of distracted driving but to make our roads safer by getting motorists to avoid distractions.” AAA recommends the following tips for avoiding distractions while driving: • Make a commitment to safe driving. By taking the pledge at AAA.com, drivers have the opportunity to commit to safe practices before getting on the road. • Minimize cell phone use. Use message-taking functions and return calls when you are stopped and off the road.

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Alex Montero joins Robertson Ryan as a Vice President / Producer in Scottsdale, Arizona. Arizona marks the 7th state RRA has expanded to. Alex has been in the insurance industry for over 10 years and started his career with a captive agency. Most recently, he was a Commercial Lines Producer with AAA Insurance where he helped over 500 small businesses mitigate their risk. Presently Alex has a Workers Compensation Specialist designation from CopperPoint Mutual and is currently working on attaining his Chartered Property Casualty Underwriter (CPCU) designation. Allan Degner, Robertson Ryan’s Vice President of Marketing said, “We have an incredible team and are fortunate that we have the opportunity to continue growing. RRA’s unique organizational set-up, including our Producer Owner model, continues to provide one of the best environments to be an agent and grow your business with the support of an established team.” WISCONSIN INDEPENDENT AGENT

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Invitational Chess Tournament Brings Students to Acuity

On February 24, nearly 300 students competed in the 7th Annual Acuity Invitational chess tournament at the insurer’s headquarters. The invitational is open to students in grades K-12 in Sheboygan, Manitowoc, Ozaukee, Washington, Fond du Lac, and Calumet counties. “Acuity is proud to support programs, such as the annual chess tournament, that provide students the opportunity to hone their skills and expand their educational horizons,” said Ben Salzmann, Acuity President and CEO. “We have a strong commitment to the communities where we work, live, and do business.” Acuity’s headquarters is host to community events throughout the year, including educational activities and competitions, and the company’s 65-foot Acuity Charity Wheel is used for special events and community fundraising. Acuity also supports initiatives that make a difference in local communities, contributing nearly $1.3 million to charitable organizations in 2017 alone. For more information on the chess tournament, including a full list of the 2018 winners, visit www.acuity.com/chess.

Gannon’s professional excellence and years of service to his community. Gannon, who passed away in October 2017, represented West Bend Mutual Insurance as an agent with Richards Insurance for 25 years. “In those 25 years, his agency continued to grow, as did his involvement in his community,” said Kelly Tighe, vice president-sales of West Bend Mutual Insurance. “More important to him than personal successes, however, was the opportunity to give back to his community.” Gannon served as president of Family Promise of Washington County, West Bend Sunrise Rotary, West Bend Area Chamber of Commerce, the Washington County Youth Hockey Association, and West Bend Jaycees. He volunteered for a number of other local organizations, as well. “Bob also became very involved with school leadership programs, helping others with alcohol addiction, homelessness, and heroin addiction,” Tighe said. “He served two terms as the Wisconsin State Assembly representative from the 58th District, during which time he focused on revitalizing our urban communities, stopping the opioid epidemic, and shrinking government dependence. “It’s a great honor to present the Distinguished Agent Award to Bob. He’s always exhibited the highest degree of professionalism and commitment to our industry and to the West Bend community. The list of past Distinguished Agent award winners is a collection of outstanding individuals who have made a positive difference in the lives of many. Bob is an excellent addition to the list and is very deserving of this recognition.”

Gannon honored by West Bend Mutual Insurance for service to community and insurance industry WEST BEND, WI (March 20, 2018) – Bob Gannon, formerly of Richards Insurance in West Bend, was posthumously honored by West Bend Mutual Insurance Company as the recipient of the 2018 W.E. “Mike” Koehler Distinguished Agent of the Year Award. The award recognizes WISCONSIN INDEPENDENT AGENT

Gannon’s son, Bryce, accepted the award in his father’s memory. In recognition, West Bend Mutual Insurance donated $5,000 to the MACC Fund (Midwest Athletes Against Childhood Cancer) in Gannon’s name. The W.E. “Mike” Koehler Distinguished Agent Award honors Mike Koehler, an independent insurance agent and volunteer, who throughout his life, tirelessly served the insurance industry, independent agents’ associations, and his community of Cedarburg, Wisconsin.

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FOOD FOR THOUGHT

Serving AAA Members, even on two wheels. While you’re out enjoying this year’s ride, here’s a refreshing tip for AAA Members: AAA now offers roadside assistance for bicycles. AAA Bicycle Service is a new benefit with every membership that provides transportation for you and your bicycle if it breaks down on your ride. It’s one more way AAA helps members relax and enjoy the ride!

Learn more today! Contact Leo Plese (630) 328-7076 or lmplese@aaachicago.com AAA Bicycle Service is available in Florida, Georgia, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Tennessee, Wisconsin and portions of Illinois and Indiana. 17-IA-2064A

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