November 2017 WI Independent Agent

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INDEPENDENT AGENT NOVEMBER 2017

Open Door Policy Fall Planning 2017: Technology and the Agency of the Future . . . . . . . . . . . . . . . . . . 4 Technology Chatbots and the Future of Interaction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 How Technology Can Help Your Business Attract and Retain Talent. . . . . . . . . . . . . 8 What Can IBM’s Watson do for Insurance?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Marketing When Customers have Questions, Content Must Have Answers. . . . . . . . . . . . . . . . 13 Errors & Omissions Millennials & the age of Social Media. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Sales Three Questions Every Insurance Prospect Is Asking You. . . . . . . . . . . . . . . . . . . . . 17 Virtual University Getting Sued by Being Too Helpful: Stick to Your Expertise. . . . . . . . . . . . . . . . . . . 18 Agency Management Fix Your Organization Talent Gaps. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Stop Worrying About Robots Taking Your Job. Do This Instead. . . . . . . . . . . . . . . . 22 3 Reason Organizations Fail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Surviving as an Elder in the Tech World. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Government Affairs Lawmakers Approve Budget Including Partial Personal Property Tax Repeal. . . . 27 Members in the News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Commentary from Counsel Federal Court Strikes Down Rules Extending Overtime Pay to Millions. . . . . . . . . . 32 Food for Thought. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Independent Insurance Agents of Wisconsin 725 John Nolen Drive, Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 ■ Fax: (608) 256-0170 ■ Web: www.iiaw.com Executive Vice President - Matt Banaszynski 2016-2017 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 2016-2017 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 Ryan McClone, McClone Agency 150 Main St. Suite 102, Menasha, WI 54952 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

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Darrel Zaleski, Spectrum Insurance Group 4233 Southtowne Drive, Eau Claire, WI 54701 2016-2017 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

On The Cover…

On September 21, 2017, Potawatomi Hotel and Casino in Milwaukee hosted the Independent Insurance Agents of Wisconsin’s 2017-18 Fall Planning Session.

More than 100 committee volunteers turned out for the strategic planning event which included a presentation

by IIAW CEO Matt Banaszynski and discussion lead led by IIAW consultant Dan Paulson. Afterwards, attendees and their spouses took part in a cocktail and dinner cruise on Lake Michigan. It pays to join a committee! Read more about it on page 4.

> A DVERTISERS & INFORMATION AAA Wisconsin................................................. 34 Acuity Insurance............................................. 35 American Advantage Insurance Group............. 13 Badger Mutual................................................. 20 Berkshire Hathaway/Guard............................. 26 Burns & Wilcox.................................................. .2 Erikson Larsen................................................ 23 IIAW Pre-licensing Classes............................... 16 IIAW CE............................................................ 20

Government Affairs .......................................Jeff Thiel R&R Insurance Services - P.O. Box 161 Waukesha, WI 53187

JM Wilson...........................................Back Cover

Carrier Relations ......................................... Kevin Murray Johnson Insurance Services - 525 Junction Road, Madison, WI 53717

Pekin Insurance.................................................11

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

Motorist Group/ Wilson Mutual........................ 25 Robertson Ryan & Associates.......................... 33 The IMT Group...................................................11 West Bend........................................................ 19 Western National............................................... 9 NOVEMBER 2017 | 3

FALL PLANNING 2017:

TECHNOLOGY AND THE AGENCY OF On September 21, 2017, Potawatomi Hotel and Casino in Milwaukee hosted the Independent Insurance Agents of Wisconsin’s 2017-18 Fall Planning Session.

New IIAW President Lise Meyer welcomed the volunteer members who serve on the Association’s eight committees and introduced IIAW consultant Dan Paulson and IIAW CEO Matt Banaszynski to facilitate the planning session and present on the State of the Independent Agency Chanel and technology.

“Before the set committees met at the planning session to discuss their objectives, Dan set the stage as far as expectations and Matt presented on the State of Independent Agency Channel and how technology is disrupting and innovating our industry”, stated Lise Meyer. “Matt teed up the conversation by articulating what challenges and opportunities may be facing the independent agency channel. This provided valuable insight and information for us to discuss within our committees so that we may set goals and objectives that are aligned with the Association’s strategic plan and areas of focus”, concluded Lise.

In a nutshell, committees discussed ways they could support new products and services to ensure the Association offers products and services conducive to the needs of its members. The discussions proved to be a great way to get all the members educated, re-introduced and involved in all aspects of the industry and Association.

Association staff also sat with the various committees to better understand the committees’ annual objectives and to learn what the membership expects regarding products and services.

“I think we all left this planning session feeling like a lot of change is coming to our industry, but with the Association’s support, independent insurance agents are a great position to take advantage of the opportunities that lie ahead, said Matt Banaszynski. Independent agents know a few things about innovation, disruption and evolution. We have been doing it for well over 120 years. Many are quick to point out all the challenges facing our industry and our channel, but in difficulty lies opportunity. This is an exciting time for independent agents. It’s true, historically our channel and industry have been slow to adapt to changes in technology, but those days are over. We are here to help position your agency for long term success.”

Lise Meyer also introduced the committee chairs, Exclusive Company Sponsors, and Partner Level Sponsors.

The committee chairs include: Kim Dandrea, Agency Services; Cathy Christensen, Automation/Technology; Ryan Waite, Emerging Leaders; Mike Farrell, Employee Benefits; Jeff Theil, Government Affairs; Kevin Murray, Carrier Relations; Jamie Durocher, Marketing and Membership Development; and Tim Kakuska, Technical.

Our Exclusive Company Sponsors for 2016-17 include: AAA Wisconsin, Acuity Insurance, Burns & Wilcox, The IMT Group, Integrity Insurance, Liberty Mutual, Progressive, SECURA Insurance, Sentry Insurance, SFM Insurance, Society Insurance, Travelers Insurance, West Bend Mutual and Motorist Group (formerly Wilson Mutual).

In addition to our Exclusive Company Sponsors, we would also like to thank our Partner Level Sponsors: Aflac, Amerisafe, Arlington/Roe, Austin Mutual Insurance, Auto-Owners Insurance, CNA Insurance, EMC Insurance, Madison Mutual, Partners Mutual, Philadelphia Insurance, QBE, WPS Insurance, Wisconsin Mutual Insurance, and Zurich Insurance.

“I and the rest of the Executive Committee strongly encourage you to express

4 | NOVEMBER 2017

your personal gratitude to our committee chairs and those who work for our Exclusive and Partner sponsors for helping make our Association so successful,” said Matt.

After the chairmen/women relayed the individual committee reports, Matt invited all participants and their spouse to join IIAW staff on a cocktail and dinner cruise on Lake Michigan. As you can see from the photos with this article, it was a beautiful evening, enjoyed by over 100 people!

The 2017 IIAW Annual Convention is May 8-9, 2018, at the Marriott Madison West! Details will be coming soon but this year’s convention is going to be incredible.

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THE FUTURE

(Left to Right) Jill Zauner, Lindsay Lau, Mallory Cornell, Naomi Sopko, Jenna Zalud, and Alycia Olson

(Left to Right) Eric Zauner, Zach Trepanier, Derek Kawleski, Matt Banaszynski, Matt Frank, and Bryant Steele

OPEN DOOR POLICY

TECHNOLOGY

CHATBOTS AND THE FUTURE OF INTERACTION

TECHNOLOGY

When it comes to the list of disruptive technologies, are we giving chatbots enough credit?

Chatbots are only beginning to show their potential, garnering initial headlines primarily due to Lemonade and their chatbot called Maya. That is interesting, considering that chatbots and AI will likely have a greater overall impact than many of the common up and coming technologies we have grown to accept, such as autonomous vehicles.

How is it possible that chatbots are silently sitting on the sidelines?

It’s simple. They aren’t sitting silently.

Chatbot development and use is in full swing. The headlines are picking up. Research organizations are putting forward more predictions about chatbots than ever. Chatbots are easier to implement than many technologies and operationally, they will provide real value. Text-based or voice-carried artificial intelligence and service-focused functions can readily swap with current human-based advisor/service functions.

As complex as they are on the back end, chatbots don’t require major hardware investment, such as sensors, and they don’t require an inordinate amount of coding. So, for all of their disruptive potential to the way we do business, they may be far less disruptive to operations and IT, though operations and IT (and customers) stand to benefit from chatbots.

In an era where impatience is growing and speed is rewarded, chatbots can dramatically improve service levels and meet or exceed expectations. They can also make the economics work for providing service and executing transactions for the growing ranks of high-volume, on-demand, low-premium risk products coming to the market.

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They are the future of nearly all personal business transactions. For insurers, chatbots can be their own distinct channel as well as augmenting existing channels, supporting a multi-channel world.

Chatbots are growing in use and importance.

In Majesco’s Future Trends 2017 Report, we discussed the impact and potential of chatbot growth. Chatbots aren’t growing merely because they have service potential — they are growing because automated non-human service is gaining acceptance among the Gen X, Millennial (Gen Y) and Gen Z cohorts.

Chatbots’ appeal and growth will likely make it one of the technologies to break out of age-based stereotypes. WeChat, China’s most popular chat app, is a great example. With nearly 1 billion users (889 million people), its impact is felt across generations and it is even spurring older generations to adopt mobile technology.

WeChat is popular — its users interact for an average of 90 minutes per day.

Because it uses voice commands, it is also learning from conversations, illustrating the potential of chatbots to gain something from each interaction. [i] Business Insider noted that 80% of businesses will be using chatbots by 2020, with 42% believing that they will improve the customer experience.[ii] In addition, 29% of customer service positions in the US could be automated with chatbots or other technology.

Chatbots offer immense potential for customers to interact with an insurer, through direct interactions within messaging or other social media apps.

Other technologies a nd their impact on Chatbots.

The “automated home” race between Amazon’s Alexa, Google’s Home, Apple’s HomePod/Siri and many other technology providers, will enhance chatbot adoption and use. The more people become comfortable with interactions that are non-human, the easier it will be for people to feel comfortable in a chatbot purchase and service environment. Insurance is already adopting chatbot use and ramping up chatbot availability.

In the past year, for example, InsurTech saw a rapid rise in the use of chatbots within startups ranging from Elafris, which enables customers to download auto ID cards and pay bills, to Denim, which markets to consumers and links them with insurers or agents for renter or homeowners insurance.

Robo-advisors represent a chatbot with real AI integration and rules management, that can go beyond outside customer service and well into day-to-day executive assistance.

In July 2015, Zurich shared how they were using robo-advisors in two ways: First to accelerate and improve policy processing and issuance that improved quality and accuracy for their international casualty programs. [iii] Second, they used them in the UK to conduct routine diary reviews for open claims that traditionally required attention by human operators.

In the quest for improved customer service, quality, accuracy, speed and efficiencies, robots and robotics have significant opportunity for insurers. From automating processes to interacting with

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TECHNOLOGY

customers, the potential seems limitless, as well as creating a starting point for cognitive applications.

A natural link: AI and Chatbots Cognitive systems help visualize, use and operationalize structured and unstructured data, pose hypotheses based on data patterns and probability, and understand, reason, learn and interact with humans naturally.

As a result, they help organizations create knowledge from data to expand nearly everyone’s expertise, providing continuous learning and adapting to the environment to out-think the competition and the market.

AI and cognitive computing technologies like IBM’s Watson have been touted as the link between data and human-like analysis.

Because insurance requires so much human interaction and analysis regarding everything from underwriting through claims, cognitive computing may be insurance’s next solution to better analyze and price risks using new data sources, while adding an engaging

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and personalized advisory interface to their services.

A savvy insurance technologist can easily begin to draw the lines between that kind of intelligence management and its potential when linked to chatbot advisory and directive services. Just as many of today’s advisors and agents have experience in underwriting, tomorrow’s chatbot may carry with it the ability to market, gather data, quote, underwrite, issue policies and settle claims without human intervention. Putting one face on an insurance company probably couldn’t get more complete than that.

For now, we can see the seeds of this complete chatbot value chain in its beginnings. At the recent SVIA InsurTech Bootcamp in August that we were involved in, we saw and discussed the array of opportunities to leverage chatbots, AI and cognitive … highlighting the opportunities unfolding.

In June of this year, PolicyPal, a Singaporean startup, announced the launch of its AI-

enabled mobile app, which includes a chatbot supported by IBM Watson Conversation technology.[iv] The app not only helps prospects through the insurance selection process, it explains complex insurance concepts to consumers to enhance their overall insurance knowledge. The AI, having educated itself, is in effect, giving back through chatbot interactions. That is the future of insurance interaction, a market where both parties have something to learn and gain from the insurance relationship.

When Gartner asserts that, “Chatbots will power 85% of all customer service interactions by the year 2020,” that may be enough to drive some business leaders to look into all that chatbots have to offer. Majesco, at the forefront of the changes in the industry, is a partner in chatbot development and implementation. Are you ready to bring the advantages of chatbot interactions into your organization? > Denise Garth SVP - Strategic Marketing, Industry Relations and Innovation at Majesco

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TECHNOLOGY

HOW TECHNOLOGY CAN HELP YOUR BUSINESS ATTRACT AND RETAIN TALENT In today’s job market, it is just as important for companies to make a good first impression as it is for potential employees. These days, many workers are looking for more from their jobs than just a good salary, and are likely to be motivated by other factors such as company culture and the opportunity for professional development.

So how can you be sure you’re attracting and retaining the best talent in this competitive environment?

Investing in the right technology can help your organization to attract quality candidates and retain high performing employees.

In fact, technology is vital for the success of your hiring, onboarding and training processes. And with the right tech tools, you will be more likely to keep staff engaged, motivated and happy in their jobs.

Let’s look more closely at the benefits of using technology to attract and retain top performers.

Using Social Media to Attract Talent

TECHNOLOGY

Whether you acknowledge it or not, social media plays a large role in your recruitment, with your website, branding and social channels helping you to draw the right employees to your business.

Think about it: before applying for a job, most people will first check out the organization’s Twitter, Facebook, Instagram and LinkedIn profiles and activity. We want to be sure that we are a good fit for the company, and vice versa. If your social media channels are outdated, poorly managed or non-existent, you will be reducing your chances of attracting quality candidates.

In the modern workforce, job hunters are also just as likely to use a smartphone or tablet to search and apply for jobs as they are to use a desktop computer. So mobility is important. As Jan Brouwer, of HR Transformation, says “HR needs to become digital to attract, retain and engage talent in a digital world.”

Using a Learning Management System to Onboard New Hires These days, the best HR teams are embracing technology to automate their recruitment, onboarding and training processes, through sophisticated apps and Learning Management Systems (LMS).

With an effective onboarding program, you can reduce staff turnover rates, increase employee engagement, and allow new hires to reach their full productivity, faster. With 30% of companies needing a year or more to get an employee to reach peak production levels, investing in the right onboarding program is sure to pay off. In addition to this, the way that a company brings new team members on board says a lot about the culture of the organization.

Ongoing training is also highly valued by today’s employees, as an essential part of professional development, and HR teams are increasingly turning to technology for staff training needs. A good LMS, carefully developed with your employees in mind, can be

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used as the perfect platform for creating and distributing training content. You can customize your LMS to your exact needs, helping to make training more interesting and useful for staff while keeping them engaged and challenged.

When choosing an LMS, make sure the technology is intuitive and easy to use, accessible, flexible and mobile. It should be relevant, up-to-date and engaging for users.

Using Technology and Training to Retain Employees While staff turnover is inevitable, it is important to try and reduce that figure to build and maintain a positive work culture.

In addition, filling empty positions is a huge expense for any business, with the associated costs of advertising, interviewing candidates and training new hires.

When your organization shows a willingness to invest in technology for employee development, you’re showing a willingness to invest in the future of your employees. Individuals value that kind of investment, and are more likely to perform well and remain loyal to your organization.

Having up-to-date and relevant technology solutions is also important to staff, with access to the right technology more important to employees than you might think. In fact, a recent Accenture survey tells us that 45% of respondents admitted that their own devices were more effective than the ones provided by their employers. Investing in good quality technology for your employees may be a better financial decision than losing their skills and knowledge to another company.

As you can see, having the right technology is an essential part of attracting good candidates to your organization and encouraging high performers to stay with your business. With happy, productive employees you’ll also find yourself reaching company goals more efficiently. > Scott Cooper is the VP Marketing for Online Learning Platform GO1.

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TECHNOLOGY

WHAT CAN IBM’S WATSON DO FOR INSURANCE?

TECHNOLOGY

You probably remember Watson from when this cognitive computing system defeated two human champions during a three-day match on Jeopardy. This happened about five years ago, and generated a positive PR storm for IBM and the future of AI and analytics. Even more important than the $1 million prize, was the fact that in order to beat its human adversaries, Watson could not simply just recall facts, but had to use reasoning, interpret statements contextually, and strategize.

For those unfamiliar, Watson is a “technology platform that uses natural language processing and machine learning to reveal insights from large amounts of unstructured data”. Watson performs two key functions in its commercial application; those being answer customers’ questions, rapidly interpret insights, relationships, and patterns from important information that it extracts from provided documents. IBM claims that 80% of data today is unstructured, meaning that it comes from news articles, social media posts, and other sources.

Watson is able to sort through this massive amount of information like a human. It does this by gathering as much information as possible and interprets the language for things like grammar and context. Additionally, this platform will then use reasoning and logic to evaluate the information for possible meanings and decides on what the core of the problem or question is. It then uses supporting evidence and quality of data to make a rational decision. To learn more about how Watson works please check out this video (https://www.youtube.com/ watch?v=_Xcmh1LQB9I).

Here are some quick facts about why we need programs like Watson that will blow your mind. a Medical data is expected to double every 73 days by 2020 a Watson can read 40 million documents in 15 seconds a It is predicted that by 2020 the market for machinelearning applications will be around $40 billion, and 60% of these applications will run on platform software from Amazon, Google, IBM, and Microsoft.

This means that in order to keep up with this kind of volume, some big changes are coming to insurance.

What can Watson do for your policyholders?

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Policyholders are increasing their demands for real-time access to a variety of insurance provides, which is an unavoidable trend. This puts the focus for provider-customer relationships on maintaining positive interactions, experiences, and satisfaction. IBM’s Watson allows users to analyze insights, track their policyholders to anticipate future needs, and provide them services that they want. You can also analyze weather conditions and social data to provide further tailored policies. With the use of real-time data, you can respond faster to catastrophes, and Watson will even help you select the best course of action.

Watson can help with need analysis. When discussing client needs and services, it is necessary to match products to their individual needs. Automated solutions allow agents to ask a series of questions conversationally that Watson would translate into product advice. This will make things more efficient and smoother when discussing complex products with clients. The next big move in the mobile world will be voice-interfacing with the web, and your insurance clients. More sophisticated technology will be needed to interpret and respond to customer requests. In order to accurately respond to customer questions, such as “what is the renewal date of my policy?”, will require platforms that can understand language, relationships, and concepts.

The insurance industry is often critiqued because of its negligence to adopting technological advancements comparatively to other industries. However, there is a clear need from agents and brokers for this type of technology to keep volume up and costs down. It appears Watson is positioning itself as a robo agents solution, whereas, Riskgenius classifies and organizes clauses in policies and contracts, then allows you to comment and share the results. Important changes are coming to insurance, ones that can impact the way insurance is renewed, client acquisition, and research. Implementing these technologies will be the key to being able to keep up with future demand. > C lara Stahl RiskGenius

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BE WORRY FREE WITH IMT

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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YOU KNOW OUR RELATIONSHIP-DRIVEN MODEL When we recruit agents, we don’t just sit back and hope they’ll thrive. We take our relationship with you seriously and work to see your agency succeed. Tell us your goals and we’ll help you make them a reality.

Contact us AgencyRecruiting@motoristsgroup.com MotoristsInsuranceGroup.com

MARKETING

WHEN CUSTOMERS HAVE QUESTIONS, CONTENT MUST HAVE ANSWERS Today’s customers literally have a world of information at their fingertips, and that breeds an expectation that they’ll have their questions answered by small businesses quickly through compelling content and a comprehensive website.

So what happens when a customer can’t find necessary information as soon as they need it? Chances are, they’ll go elsewhere.

Here are some tips on how to be the perfect resource for your customers, no matter their needs.

questions your ideal customer would actually type into Google. So, if you have a dental practice, your potential customer is going to be typing in “dentist in [city]” so make sure that phrase is used frequently, but naturally, within your site and throughout your content.

Create content that answers questions.

Have the most basic information available and easy to find Believe it or not, just over half of small businesses reported having a website, even though without one, they are basically invisible. And even small businesses that have a website make the error of “clumsy contact options” as internet marketing specialist and Forbes All Business contributor, Brad Shorr, calls it.

One study found that more than a quarter of small business websites don’t include a phone number, and almost 70 percent didn’t have an email address on the home page. Make sure that your website clearly states your hours, address and other pertinent information.

Optimize for mobile When you’re out and about looking for information, where do you turn first? If you said your smartphone, you’re not alone. In fact, mobile digital media time now surpasses desktop usage — at 51 percent compared to 42 percent.

That’s why it’s vital your website and content be designed for “mobile first.” Wondering if your website is mobile friendly? Check out this handy Google tool that will test it; if not, your web designer can make some relatively simple tweaks that will fix it.

Use SEO best practices Considering there are more than 6.5 billion searches a day worldwide, you want your small business to show up — and the higher, the better, since more than 90 percent of consumers never proceed past the first page of results.

The good news is, you don’t have to be a web expert to integrate “search-friendly” characteristics into your website.

The “key” to SEO is making good use of keywords that represent WISCONSIN INDEPENDENT AGENT

More than 80 percent of customers go online for information before they ever make a purchase. That’s where great content comes in: To inform and educate consumers about your product or service and establish you as the authority by aligning your content with your customers’ needs.

Not only can great content help you answer the questions your customers have, but it can help you rank higher in search engines.

“Too many people skimp on content, but it’s one of the major anchors that tether you to Google’s relevancy algorithms,” says blogger and software engineer R. L. Adams. “Thin content with errors, or duplicate content and spun content can really hurt you. Instead, the content has to be well-written, keyword-centric and highly engaging where readers are spending a good amount of time digesting and consuming that content.”

But while 89 percent of B2B marketers use content marketing, almost 70 percent say their strategy is “undocumented,” meaning that it might not be hitting its mark. Just putting up random content isn’t enough.

A survey by the LinkedIn Technology Marketing Community found that the top three attributes that made content effective were audience relevance, compelling storytelling and content that triggers a response or action.

By creating a user-friendly online presence and engaging, easily searchable content, you can establish yourself as the go-to resource for a specific product or service and give your business an edge over your competition.

> Cathie Ericson is a freelance writer covering business and consumer topics. She creates branded content for Fortune 500 companies, and her work has appeared in LearnVest, Costco Magazine, Forbes, TheGlassHammer.com and IDEA Fitness. Follow her @cathieericson.

NOVEMBER 2017 | 13

ERRORS & OMISSIONS

Millennials

& THE AGE OF

SOCIAL MEDIA

SIGN OF THE TIMES An industry that traces its roots back several millennia is being forced to reassess the way it does business like never before.

According to Forbes Magazine, Millennials (those born 1980 to 1996) have $200 billion in annual buying power and represent about a fourth of the U.S. population (92 million people). As the next wave of customers entering their “power purchasing” years, they are considered trendsetters in the marketplace. Millennials leave no market untouched. No industry is exempt. This impacts everyone and everything as we know it–yes, even the centuries old insurance industry.

Trending data show us that Millennials are twice as likely to purchase, service and modify their insurance online or through other electronic methods such as texting, instant messaging or via social media.

These can be great service tools, but it must be understood how these new technologies impact the duty, and therefore, the exposure of insurance agents. How does the possibility of an E&O claim increase with this shift from traditional in-person agent relationships to a more virtual marketplace?

One seemingly simple answer is best framed as a question: What is the customer’s reasonable expectation of coverage? Bear in mind that Millennials have grown up knowing that, as soon as they hit the “Finish Order” button, the movie tickets, pizza or shoes are not just purchased, they’re on their way. Has that expectation been appropriately dispelled in the context of an insurance transaction?

When utilizing less formal, ‘Millennialfriendly’ methods of policy initiation or servicing, there is often a key element missing: standard disclosure language and a clear record verifying the ‘conversation’.

The common industry refrain, “Coverage cannot be bound, modified or cancelled without speaking to a licensed representative...” is often absent from texts, social media and instant messages.

Absent any disclosure to the contrary, the Millennial customer may assert that she has “a reasonable expectation of coverage” once a text is sent to her agent

and payment is made (or offered). Even in the absence of confirmation of coverage by reply communication, it remains to be seen whether the courts–especially those occupied by Millennial judges–will absolve the agent from liability.

From a ‘traditional perspective’, instantaneous coverage–both procurement and servicing–is an impossibly heightened duty no agent should be expected to fulfill.

And yet, if an agent is not conscientious and prompt in his communications to these ‘early adapter’ customers, this could inadvertently become the standard for procuring and servicing policies via nontraditional methods.

Before understanding how to limit exposures, we need to understand a few fundamentals about the millennial customer.  Technology is a given. 87% of millennials use two or three devices every day. Sooner than later (if not already), you

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. Copyright 2010 Swiss Re America Holding Corporation

14 | NOVEMBER 2017

WISCONSIN INDEPENDENT AGENT

ERRORS & OMISSIONS

will receive business communications through various 21st century media.  If you are not online (practically speaking) you do not exist.  Less is more. Less formal contact, ease of access and immediate results are basic expectations in the millennial marketplace.

In order to effectively protect yourself from a heightened duty and resulting E&O exposure in the face of this new wave of customers, you must be well-equipped.

Consider implementation of the following as a standard part of your business practice: 1. Strong social media presence: Nowadays it is essential to have an online presence.

It is of equal importance not to overpromise. All that you promise online may very well become your (legal) duty and standard of care.

2. Disclaimers: They are still relevant and ever important! All modes of communication and agency promotion need to have standard disclosure language in them.

3. Manage expectations: Be explicit. Make certain it is clear to the customer what communication(s) will convey the message that ‘coverage is now in place.’ Equally important: how will you communicate that coverage is not available, or that more information is needed?

4. Close the communication loop: When receiving communications from various media it is essential to synthesize.

Consolidate the feedback and instructions, then reconfirm the impact to coverage and effective dates with the customer.

Be particularly communicative if you cannot procure the coverage or process the changes as requested.

5. Document! Document! Document! Even when receiving what you consider to be informal communications, treat them as on the record. This includes Facebook comments, text messages, Skype, Instagram and ‘tweets’ (using Twitter). It all becomes a part of your file, with few (if any) exceptions.

Online presence is a must, as is servicing policies virtually. This radical departure from the traditional insurance agent/client relationship poses some hurdles, but our challenge as an industry is not simply to overcome these obstacles. We have to understand the true ramifications and increased exposures that come with rapidly changing technology. > L arrye Murrell is an assistant vice president, claims specialist with Swiss Re Corporate Solutions and works out of the Overland Park office. Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re Corporate Solutions.

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NOVEMBER 2017 | 15

2017 PRELICENSING CLASS SCHEDULE Conducted at State Association Headquarters, IIAW prelicensing 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:

REGISTER AT IIAW.COM 2017 CLASS DATES

!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

L IFE & A CCIDENT /H EALTH February 6-9

P ROPERTY & C ASUALTY February 20-23

March 6-9

March 27-30

April 3-6

April 17-20

May 15-18

May 22-25

June 5-8

June 19-22

July 10-13

July 24-27

August 7-10

August 21-24

September 11-14

September 25-28

October 9-12

October 23-26

November 6-9

November 13-16

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

December 4-7

December 11-14

Property & Casualty

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: 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 multiple registration discounts. schools are closed, the IIAW is closed and prelicensing is 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.

SALES

THREE QUESTIONS EVERY INSURANCE PROSPECT IS ASKING YOU Every prospect you encounter has some level of hesitation in doing business with you, but it all boils down to three main questions.

I am long-time fan of the work of John C. Maxwell. John is known as the world’s leadership guru, and deservedly so. One of my favorite books from John C. Maxwell is, “Everyone Communicates, But Few Connect.”

This book discusses what separates average communicators from world-class communicators. As a long-time salesperson and entrepreneur, I have seen first-hand the power and effectiveness of great communication.

In the book, John explains that there three questions that every single person you come in contact is asking about you when you wish to serve them.

To be an effective sales producer, business leader, or influence a prospect in a positive way, you must answer these three questions effectively.

1) “Do you care for me?”

Everyone human being desires to be cared for in some way. To make connections with prospects they must feel and see that you genuinely care for them and their best interest.

Running a business or being a sales producer is tough work. Every day can feel like a grind.

I often hear words like hustle, determination, desire, confidence, and so on when discussing traits of top business leaders.

As important as those traits are for being successful, empathy goes a long way to make your prospect feel cared for and respected.

You need understand their situation and circumstances. Ask the following questions. > What is your prospect feeling? > What concerns does your prospect have? > What is your prospect seeking?

WISCONSIN INDEPENDENT AGENT

> What does your prospect value? > What makes your prospect smile?

Les Giblin, former national salesman of the year and speaker stated, “You can’t make the other fellow feel important in your presence if you secretly feel that he is a nobody.”

Business leaders and top sales professionals understand that relationships are everything.

“Whenever you can help other people to understand that you genuinely care about them, you open the door to connection, communication, and interaction.” John C. Maxwell.

3) “Can I trust you?”

At the heart of every business transaction is the question, “Can I trust you?” Trust is the foundation to every business relationship.

It’s not earned in a day, but day by day. How can you build trust? Here are few questions to get you thinking. > What are you doing with your current clients to prove you do what you say you will do? > What value are you giving your current prospects to show that you care more about them than their checkbook? > What is your reputation in the community?

2) “Can you help me?”

Have you heard the phrase, “Nobody wants to be sold, but everyone wants to be helped?” It’s 100% true!

Nobody likes an in your face salesperson trying to pitch their product or service.

However, have you ever seen a product or service on TV or in a store and thought, “That would really help me.” Maybe it would help you feel better, solve a problem you have had, make life easier, or make someone else happy.

The point is that it’s the outcome buyers seek, not the product or service. In my early years of selling insurance, I would often go on and on about how important a certain liability coverages or why maintaining higher liability limits would be to the important to the prospect.

I soon learned that the prospect didn’t care about specific instance policies or coverage amounts, they just wanted assurance that if someone sued them, they would be protected adequately. They wanted to know how I would help them, not what I was selling them.

Focus on how you help your prospects, not what you are selling your prospect.

> What is your reputation online? > What are you doing each day to grow as a person and business leader?

The Bottom Line These three questions, “Do you care for me?,” “Can you help me?,” and “Can I trust you?” are the three questions every one of your prospects are asking themselves when determining if they should even consider doing business with you.

• You must be an intentional listener • You must find out what they value the most • You must build your relationship with consistent actions in favor of them When the other person truly feels valued then a true connection blossoms and your book of business grows.

>B rent Kelly

NOVEMBER 2017 | 17

VIRTUAL UNIVERSITY

GETTING SUED BY BEING TOO HELPFUL:

STICK TO YOUR EXPERTISE

A fellow “insurance nerd” of mine did a class a few years back titled, “Getting Sued by Being Too Helpful.” He presented the class alongside an attorney who specialized in E&O defense. The thrust of the class was that insurance agents should stick to their expertise (insurance), and not venture outside of insurance when giving advice to customers.

Here are 10 examples I have run across recently that illustrate this concept very well.

All of these situations were presented to me by agency staff, seeking an answer from me so that they could provide an answer to their customer.

1. GOLF CART: “Can golf carts legally travel on public roads? If so what roads, and must they be licensed? What safety equipment is required? My customer has asked me and I don’t know the answers.”

A: “I don’t know. I’d refer the customer to the Department of Highway Safety. I can help you with the insurance issues surrounding the ownership of a golf cart, but not the registration issue.”

2. SWIMMING POOL: “I insure a homeowners association. Does the swimming pool have to meet the requirements of the Americans with Disability Act?” A: “The best source is probably a local building official or a swimming pool company; I’d refer the customer there. Did you have a question about coverage under a CGL policy for the pool?”

3. IRAS AND LIFE INSURANCE CASH VALUES: “I am quoting an umbrella for a customer. He has asked me if he were to get sued could the plaintiff take his IRA and cash value from his life insurance policy?”

A: “That’s a question to be answered by an attorney; I’d suggest to the customer that they consult with their attorney. Did you have a question about coverage under an umbrella policy? If so, I can help with that.”

4. GARNISH WAGES: “A coworker and I disagree on an issue. She just sold her house and says she no longer needs to carry an umbrella.

(WHAT?) She said that if she got sued a judge could not garnish her wages. Could that happen?”

A: “Your coworker should ask a judge that

question. Now, let’s talk about the need to carry an umbrella even if you don’t own a home.”

5. AUTO LEASE: “My customer owns a car and wants to lease it to his company and add it to his business auto policy. Does FAIA have a sample lease we can provide to the customer?”

(I swear this was a real question.)

A:“No we do not; that’s for an attorney to draw up. Now, let’s talk about the serious insurance mistake the customer is about to make.”

6. CONDO DRYWALL: “I insure a condominium and they have to tear out the drywall to repair a pipe that is deteriorating. There is no insurance claim, but they have asked me who has to pay for the drywall. I want to be helpful to my condo association, so what’s your view of who has to pay?”

A: “My view is that this is not an insurance issue, and an insurance agent should not be involved. The issue is between the board and the unit owner. If there had been a covered cause of loss generating an insurance claim I could have helped, but this is not an insurance issue.”

7. THE KID’S CAR: “My customer’s son is 19 years old and dad wants to put the car in the kid’s name, and write an auto policy with low limits. The kid is over 18 and the title is not in dad’s name any more. Dad has asked if he can be sued if the kid injures someone?”

A: “You know the saying that anyone can be sued for anything. Whether such suit would result in success is ultimately up to a judge or jury. I can, however, discuss the serious insurance gap that is about to be created.”

8. FORM OF BUSINESS OWNERSHIP: A few years back when my daughter was only 25 she called me saying, “Dad, Beth and I are going to start our own speech therapy business.”

After the initial shock passed (she was only

25 and planning to start a business!), I said to her, “Let me know a month in advance and I can get the insurance going for you.” A week or so later she called back saying, “Dad, how should we organize this thing? Should we incorporate, be a LLC, a partnership, or something else?”

DAD’S ANSWER:“I don’t know, Leslie. Ask Robert, he is your corporate attorney. Once you and Robert figure it out let me know and I’ll run with the insurance issues.”

9. CONDOMINIUM: “I have a condo association where a unit was sold by one individual and bought by another individual in May of this year. In July, the new unit owner wrote to the property maintenance company that the bay window in her master bedroom does not close property and the sliding lock does not secure the window. She called a window company and their assessment was that the window was not level or plumb and the entire system needs replacing to the tune of $6,500. The association has asked me who has to pay for this repair?”

A: “This does not involve insurance and the board should consult with their property manager and/or attorney.”

10. VEHICLE REGISTRATION: “Is it possible to register the vehicle that is garaged in California and a vehicle garaged in Chicago without physically bringing each vehicle to a Florida Tax Collector or DMV office?”

A: “Refer the customer to the local ‘tag office’ so they can get the answer. Then, if the vehicle is registered in Florida and thus requires a Florida auto insurance policy, you can take care of that aspect for the customer.”

Remember, stick to your area of expertise. i.e. insurance. Don’t get sued by trying to be too helpful to your insurance customer. >D avid Thompson

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.

18 | NOVEMBER 2017

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CONTINUING EDUCATION

IIAW IN-PERSON CLASSES

E&O Risk Management: How to Manage Changing Risks and Opportunities – Lunch provided!

6 CE Credits Approved Date: November 28, 2017 Location: IIAW State Headquarters Time: 9:00 AM – 3:00 PM

ABEN ONLINE CE CLASSES Ethics in Today’s Changing Times 4 CE Credits Approved Date: November 21, 2017 Location: ABEN Online – iiaw.aben.tv Time: 2:00 PM – 6:00 PM Premium Financing 2 CE Credits Approved Date: November 27, 2017 Location: ABEN Online – iiaw.aben.tv Time: 10:00 AM – 12:00 PM CDT Certificates of Insurance – Emerging Issues and Other Stuff that May Scare You! 3 CE Credits Approved Date: November 27, 2017 Location: ABEN Online – iiaw.aben.tv Time: 10:00 AM – 1:00 PM Commercial Lines Claims That Cause Problems 2 CE Credits Approved Date: November 28, 2017 Location: ABEN Online – iiaw.aben.tv Time: 9:00 AM – 12:00 PM Long Term Care Insurance 2 CE Credits Approved Date: November 28, 2017 Location: ABEN Online – iiaw.aben.tv Time: 8:00 AM – 10:00 AM E&O Risk Management: Meeting the Challenge of Change 6 CE Credits Approved Date: December 5, 2017 Location: ABEN Online – iiaw.aben.tv Time: 8:00 AM – 2:45 PM

IIAW ONLINE CE CLASSES E&O: Roadmap to Policy Analysis, Part 1 3 CE Credits Approved Date: November 14, 2017 Location: IIAW Webinar – iiaw.com/events Time: 8:00 AM – 11:00 AM E&O: Roadmap to Policy Analysis, Part 2 3 CE Credits Approved Date: November 14, 2017 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM It’s Not My Fault, or Is It? – Liability Issues in Personal Lines Policies 3 CE Credits Approved Date: November 16, 2017 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM Commercial Property Coverages 3 CE Credits Approved Date: November 17, 2017 Location: IIAW Webinar – iiaw.com/events Time: 8:00 AM – 11:00 AM The Dirty Dozen 3 CE Credits Approved Date: November 20, 2017 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM Contractors Liability Exposures…Risk Analysis to Coverage Solutions 3 CE Credits Approved Date: November 28, 2017 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM Workers Compensation 3 CE Credits Approved Date: December 4, 2017 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM

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AGENCY MANAGEMENT

FIX YOUR ORGANIZATIONAL TALENT GAPS Talk is cheap, they say. This is especially true in the business world. For example, have you ever purchased an item from a store that claims “We stand behind our products!” only to discover they have all kinds of arcane refund rules when you try to return the thing because it broke?

Business leaders have an image in mind for their organizations. A freighttransport company has to project operational efficiency to its current and potential customers, while a tech company should be seen as having a culture of innovation. However, you can’t claim operational efficiency if, behind the scenes, no one in the organization has patience for building systems or following procedures. And you can’t boast about leading-edge tech products if you lack the creative resources and know-how to develop them. Well, one can do those things, but customers will quickly learn otherwise and move on to a competitor.

The problem is: How do you know if your company has the people in place to fulfill the image you want to project? Performance competencies are a great place to start.

Performance competencies are the attributes we possess that help us perform well in jobs for which we are well suited (and cause us to struggle if we do not line up well with our roles). They are built from hard data and based on research into top performers across all positions and industries.

A lot of business leaders make the mistake of thinking everyone in the organization needs to have the same set of motivations (the “hiring in one’s own image” fallacy). In reality, performance competencies will be different for different functions. If you work in a tech company looking

to innovate, you want leaders who show performance competencies such as Leading Changeand Managing Innovation. On your product development team, you need people with competencies like Continuous Learningand Creativity and Innovation.

If you are with a freight-transport organization, Process Management, Strategic Thinking, and Adaptability are likely to be important competencies for overseeing systems and coming up with timely solutions when logistical issues arise.

After measuring the performance competencies displayed by your existing staff, you can: a Identify the enterprise-wide talent gaps that may be holding you back a Uncover the hidden talent and untapped potential you already have

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a Reorganize your human capital to ensure people are in the roles for which they would be most productive We live in an age of data, and gathering such information on your staff is becoming an important component of organizational development.

With that in mind, the first step toward accessing the information in the bullets above is to have team members complete a scientifically validated personality assessment.

Imagine you collected such data from your leadership group. These are the people whose actions define the culture of the organization, and you would be able to see, for the first time, exactly what you’re missing in terms of driving innovation or developing and implementing operational standards.

Then move onto your R&D or product-development team. Maybe the leadership qualities you seek are hiding there in plain sight. And so on.

If you don’t have the people you need, you can start moving the culture needle with future hires. The assessment process pays for itself when, by having the right people in the right roles, you start delivering on the image you project to the market. > Eric Baker Content Specialist – Writer with Caliper

WISCONSIN INDEPENDENT AGENT

NOVEMBER 2017 | 21

AGENCY MANAGEMENT

STOP WORRYING ABOUT ROBOTS TAKING YOUR JOB.

DO THIS INSTEAD...

Thanks to recent wide-spread coverage of the significant advancements in artificial intelligence (like this one where Elon Musk says robots will take your job), I’ve been getting an increasing number of emails and messages that go like this: “Can you please tell me which jobs and industries you think will be the first to have their jobs taken by robots? I don’t want to choose a career path that’s a dead-end...”

My response? Stop worrying about robots taking your job in the future. First, studies show it will be years before this is a reality.

A study by McKinsey Global Institute (MGI) on the potential for automation across 54 countries and more than 2,000 work activities indicated that the number of jobs that can be fully automated by adapting currently demonstrated technology is less than 5%.

More importantly, one-third of new jobs created in the U.S. in the past 25 years were types that did not exist, or barely existed.

Think about areas like IT development, hardware manufacturing, app creation, and IT systems management. As we evolve, new jobs and industries are created. Thus, even though a part of your current job will likely become automated in the next few years, you will likely have something new to do in it’s place.

Which leads to the more important question...

Ask Yourself: “How Can I Control What I Do Next?”

At Work It Daily, we’ve been studying the, “every job is temporary” trend since 2009. Having worked with thousands of professionals, we’ve identified the single most important thing you can do to have control over your career in the future: conditioning yourself to learn and grow on a daily basis so

22 | NOVEMBER 2017

you can do more than respond to unexpected career changes - you can take advantage of them. Shifts in our workplace, our jobs, our careers, and even our industries provide us with daily opportunities for getting ahead. It’s similar to your finances. The more educated you are as an investor, the more likely you are to make good financial decisions AND position yourself to take advantage of opportunities lesser-informed people don’t see or understand.

So, if all it takes to stay employable against the robots is creating good daily habits designed to keep us informed and grow our skills, why aren’t more people doing it?

The Real Career Killers Aren’t Robots - They’re The Attention-Robbers!

Americans currently spend over an hour each day scrolling through Facebook. Plus, 3.25 billion (yes, BILLION) hours of video are watched each month on Youtube. Usage of the newest social media platform, the one teenagers are currently obsessed with, Snapchat is up to 25-30 minutes per day - and growing.

These are the attention-robbers luring people into wasting valuable time they could be using to grow professionally. Ironically, in a survey we did to over 800 professionals, the number one reason they gave for not investing time and money in their own professional development was a lack of time. To which, I say, “If you can spend an hour a day on Facebook, imagine what you could do if you

spent ten minutes on Work It Daily?”

Be honest with yourself. Time isn’t your issue, lack of attention is.

Key Takeaway: Pay Attention Now, Or Pay Later The sad, simple reality is while millions of people are worried about robots taking their jobs, they aren’t motivated to do what it takes to fix the problem. They’re too easily distracted each day by mindless digital activities. Thus, until one day becomes today, they will continue to expose themselves to the risk of becoming obsolete.

The best advice I can give anyone concerned about a robot taking their job is this: build daily habits that ensure you’re: 1. Connected to the right people, 2. Informed on the latest trends in your industry, and 3. Developing a unique skill set within your professional that saves or makes companies money.

In the same way you should be planning to fund your retirement, you should have a strategy for staying employable through the shifting markets of the future.

> J.T. O’Donnell, Founder and CEO, WorkItDaily.com WISCONSIN INDEPENDENT AGENT

AGENCY MANAGEMENT

3 REASONS ORGANIZATIONS FAIL Anything supported by three pillars is inherently weak; lose one and everything comes crashing down.

Organizational culture is no different. Whether you own a small company, run a non-profit, or lead a team of hundreds, your organizational well-being rests upon these three pillars:

1) Ineffective interview strategies. “Tell me about yourself.” “How have you handled this problem in the past?” “Why do you want this job?’” Yuck. Boring. Ineffective.

a Hiring Right

2) Promoting technically qualified people who are not prepared to lead.

Haphazardly filling open positions plagues many. What’s one solution? Implement behavior-based interview strategies that reveal an applicant’s true self. Hint. Include role-plays in your interviews.

a Training Right a Treating Right Unfortunately, most organizations fail at one, or more, of these three cultural pillars.

Hiring Right: Hiring and promoting the wrong people is like purposely planting weeds in your garden. Yet, far too many organizations fail to support this pillar. I constantly see two flawed approaches that guarantee failure:

Training Right: Employee development is never-ending and needn’t be costly nor timeconsuming. Consider these quotes from Disney University visionaries, and then eliminate the baseless excuses you might have for not training your team:

“Budgets might be tight, creativity is free.” Van France, Disney University founder “Training is not an ‘employee car wash.’” (oneand-done always fails) Tom Eastman Treating Right: Cultures of respect and honesty attract the right employees and customers.

Even the strongest, well trained new-hires will fail when thrown into a dysfunctional team.

Which of these three pillars do you need to reinforce? At the WIA Conference in May, I look forward to sharing multiple examples of how many organizations, including Disney, have strengthened each of the three pillars. > Doug Lipp helped create the first international version of the Disney University at Tokyo Disneyland and then lead the Disney University Training team at Disney’s corporate headquarters. He is a consultant to corporations around the world.

AGENCY MANAGEMENT

SURVIVING AS AN ELDER IN THE TECH WORLD

About 15 years ago, I was inexplicably offered a job at Google—at age 52. At the time, my age reliably put me in the running for “oldest employee.” Still, I was thrilled to be there and worked hard to become known as a good colleague, reliable, energetic, and a quick study.

As the company grew, so did our team, and of course many new people (virtually all younger) were hired around me.

One day well into my tenure, I had a quick hallway chat with one of the leaders of our team. As part of my job, she suggested, I should show these newbies how to do some of my everyday tasks. “You know, let the young people do it,” she said.

Let the young people do it: I understood immediately. In this moment, she and I were mature stewards (she’s about 15 years younger, by the way) looking across a verdant landscape of young employees. We two could share a grown-up understanding that the way forward was to give these up-and-comers every chance to learn and grow. As I recall, my reaction at the time was a mental shrug: Yep, that’s how it is.

I’ve thought about that brief exchange a lot since—and it was in no way particular to Google. Age awareness is a funny thing. I’m 66 now and I don’t dye my hair or hide my age. But this confidence comes in part from working in tech businesses for many years, among—and increasingly for—people 10, 20, and even 30 years younger than me. I haven’t

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always liked it, but it’s the norm. I’m used to it. So used to it, in fact, that I’m quite skeptical of legacy companies that value hierarchy and old-school protocols above all. (You know the ones: They live by “We’ve always done it this way.”) I wouldn’t want to work in a place where management is close to my age without a gold-plated guarantee they share the “Let’s try it and see” outlook of younger companies.

There’s a lot of attention in the business world today on what’s called diversity and inclusion. It’s the idea that companies need to work harder and more persistently to attract, retain, and recognize diverse talent across the spectrum of gender, race, class, and so on. Not only is it the right thing to do, the thinking goes, but it also enhances business by creating a broader mix of people bringing their energies, styles, creativity, and fresh thinking to the job. And we’ve all seen stories of company culture gone wrong when diversity isn’t prioritized.

But there’s one bias that doesn’t get addressed much: age. The very people who might be affected by age discrimination often don’t want to bring it up—especially in Silicon Valley.

Let’s face it: Few of us over 40 want to be considered “old” or label ourselves as outsiders.

If workers do come forward, age discrimination is very hard to prove, since it’s often hidden by internal reorganizations, budget cuts, and employee “at-will” agreements. The subject of “older workers” can be a legal minefield for companies—to even acknowledge it is to open a Pandora’s box of issues.

We “elders” know perfectly well that our workplaces are by and large not about us. We don’t drive how roles, functions, advancement, and success are seen. Career development options and the hierarchical career ladders everyone is expected to climb are designed for the majority: younger workers.

What can be done? There has to be a systems overhaul before the members of the over-40 crowd can quit worrying about hair dyeing or giving themselves a crash course in pop culture. Almost everyone I know over 40 tends to omit their graduation year from their résumés and eliminate or streamline their past experiences.

Let me suggest a few areas where the olds might get a little more TLC. WISCONSIN INDEPENDENT AGENT

AGENCY MANAGEMENT 1. Socializing In an era when we’re encouraged to bring our authentic selves to work, after-hours socializing is part of the deal. For older workers (and others who aren’t quite a “culture fit”), tone-deaf get-togethers can cause emotional or logistical havoc. I’ve survived karaoke, rock climbing, and a folkloric overnight ski trip myself. There are good reasons for groups to let off steam and get better acquainted, but please, managers, make sure everyone feels comfortable about socializing in whatever way and at whatever time that you think will be so much fun. As writer and working mom Mikki Kendall observes, “Coworkers can bond over an in-office lunch or an employee picnic that welcomes families just as well, if not better, as they can over a whiskey tasting.” Here’s a good guideline: Team social events shouldn’t require physical prowess or alcoholic excess—so forget paintball and bar crawls. Done right, employee socializing leads to understanding between ages, cultures, genders, and all the rest. Done badly, corporate “fun” can lead to disaffected employees—or worse.

2. Career development As long as you’re still working, professional development shouldn’t stop. In my corporate jobs I’ve noticed that virtually all the skill building the company pays for is geared to people starting out or wanting to climb the ladder. Career help is often tied to what’s called an “up or out” management approach—which means you either have the wherewithal to be promoted steadily up the chain, or out you go.

But programs that encourage job rotation—job shadowing, shifting to another office or partner site—work for all kinds of employees, not just younger ones. Not everyone can pull up and take a six-month rotation to Belo Horizonte or Singapore, but you can design programs for different ages and mobility.

3. Mentoring programs Mentoring and coaching programs are useful tools for professional development. I’m also glad to see technical mentoring programs on the rise, which do the important work of helping young women and people of color get into STEM roles, management training, and other specialties. I’d love to see more widespread mentoring programs where the over-40 crowd can make use of their experience. Even better, let’s help older employees transition into mentoring roles while they’re paid to do it. I know of one position at a large company where a long-time WISCONSIN INDEPENDENT AGENT

senior executive assistant became the (paid) mentor and advocate for a large group of EAs. Let’s see more of that. I should note the rise of “reverse mentoring”—a valuable way to build relationships and engagement across age groups. As 2U CTO James Kenigsberg notes, “Looking to junior employees as mentors helps you stay current with what’s going on above and below water.”

4. Valuing individual contributors Career tracks often lead to managing people: It’s the main way you make more money and earn bigger titles and more perks. But there are plenty of talented and dedicated people with no desire to get into the people-management business—and when you’re older and really skilled at your job, why should you have to?

More companies should offer a fully developed, and valued, individual contributor track.

Tech companies often give engineers this option, but surely other teams need steady, knowledgeable talent with depth, not breadth.

Why must an ace creative director, biz dev, or sales star also have to become a manager to get all the goodies? If success isn’t only defined by achieving manager status, there’s room for more people to excel.

7. Phased retirement The vast number of us boomers (some 10,000 a day) rushing headlong toward 65 calls for more creative ways for us to to eventually disengage from jobs. Companies shouldn’t want all that institutional knowledge to walk out the door all at once. Beyond that, people don’t want to—and often can’t—retire at one predefined age. We want and need to work; at the same time, we want to have more free and flexible schedules. Companies should devise programs (like these) to adjust workloads and responsibilities so that valuable workers are engaged as long as they’d like to be.

8. Benefits and perks As companies add more kinds of benefits to attract recruits, HR and compensation experts should consider the whole spectrum of addons. Egg freezing and IVF coverage can be wonderful for those who need them; ditto for parental leave for adoptions and support for gender reassignment surgery.

How about a few items that are geared to older workers? Like these: Enlightened policies for eldercare support (liberal leave, geriatric manager services)

5. Outside learning It’s not uncommon for companies to offer a professional development allowance that covers some or all of the cost of continuing education where it has direct relevance to your current job. That’s nice, but in the era of soft skills, like creativity and EQ, we should broaden what “relevant” means. It’s not a big stretch to see how, say, an outdoor survival program or improv classes can help workers become more engaged, curious, and nimble. For training that’s farther afield, a flexible spending account to which employees can contribute could be designated for this purpose.

6. Recognition and credit for volunteer activities Many companies set aside days for volunteering at charities or for team fundraising on runs and walks. These are great ways to build camaraderie while doing a social good, not to mention giving the company reputational luster. Older workers, who often have done years of volunteering on their own, benefit from being valued for their efforts, especially if it counts toward promotions, sabbaticals, and skill building. Consider adding programs where giving back counts for something.

Financial planning ahead of retirement Counseling on Medicare and supplemental insurance (believe me, it’s complicated) A formal Employee Resource Group designation for those of a certain age (for example, the Google Greyglers are, roughly, 40 and up) New roles for retirees (e.g., company historian) I feel very lucky to have spent so many years around the technology world, where I’ve learned firsthand how to manage through chaos, pivot with adroitness and humor, savor fast failure, and all the other tech commandments. These are skills I’ll call on for the rest of my life. Now, it would be great for many more businesses to embrace the fact that, as a recent Brookings report says, “Older workers possess deep work experience and expertise as well as extensive institutional knowledge and professional networks.” Let’s not let anything go to waste!

> Karen Wickre

NOVEMBER 2017 | 25

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GOVERNMENT AFFAIRS

LAWMAKERS APPROVE BUDGET INCLUDING PARTIAL PERSONAL PROPERTY TAX REPEAL Republican lawmakers who control both Houses of the legislature finally approved a $76 billion state budget, but not without some last minute political drama. After more than a two-month delay and some contentious negotiations between the Governor, Senate, and Assembly leadership, the long-awaited two-year state budget was signed by Governor Walker along with 99 vetoes. Included in the final budget are slight changes to the state’s personal property tax.

The Assembly went first and passed the budget with little fanfare on a 57-39 vote.

After several hours of partisan floor debate, 5 Republicans joined all 34 Democrats in

early next year to return home to their districts and prepare for re-election. But hundreds of proposed bills await action by both houses of the legislature.

agents and their agencies? Remember, in the past, it didn’t matter very much if an item was included on Schedule C (Machinery, Tools, and Patterns) or Schedule D (Furniture, Fixtures,

voting against it. The Senate convened later in the week passing the spending plan with no amendments 19-14. One lone conservative Republican, Senator Dave Craig, joined all 13 Senate Democrats voting against the bill’s final passage. The Senate requires a simple majority of 17 votes in order to pass a bill. In the hours leading up to the final floor vote, 3 Republican Senators threatened to withhold their vote in an attempt to include several last minute changes to the bill despite top leaders of both houses reaching a budget agreement with the Governor. The Assembly leadership quickly balked calling the Senators’ demands an equivalent to a “ransom list” of personal pet projects and said the Assembly would not agree to making any further changes.

One budget issue important to IIAW members has been repealing the state personal property tax. This budget brings some good news and bad news on that front. Since its inception decades ago, the personal property tax collected by local municipalities has gradually become the swiss cheese of taxes with more exemptions on the books than there are items that are taxable. Some municipalities refuse to collect the tax because of the administrative burden it presents. It has been the primary motivation for why IIAW banded together with a broad business coalition earlier this year to aggressively fight for a full repeal of the tax in the state budget. Many legislators, particularly those who are familiar with running a small business, were sympathetic to the cause and

and Office Equipment) because both categories were subject to the tax. However, starting January 1, 2018, it will matter.

Work closely with your accountant or lawyer to make sure you’re complying with the updated Personal Property Tax laws. The Department of Revenue (DOR) has indicated that they will not be providing any formal guidance to local tax assessors or businesses on the new exemption. It may be a good idea to start reviewing your personal property/ fixed asset list before the end of the year. Each item of business personal property should be individually evaluated to determine whether it needs to be reported, as well as the proper category it belongs in, prior to completing your Statement of Personal Property Taxes due

The Senators responded by saying they were simply exercising their right to improve the bill. Finally, in a chess-like maneuver, the three stalling Senators struck a last-minute deal with Governor Walker that they would vote in favor of the budget if, in turn, they received assurances that Walker would use his veto pen to make the changes they were seeking.

The agreement, while it made way for passage and finality of the state budget, could further complicate an already tenuous relationship between the Houses for the remainder of the 2017-18 session. Several of the vetoes Walker agreed to were priorities of the Assembly leadership and were negotiated by the Joint Finance Committee. How the Assembly leadership responds to this slight-in-hand from the Senate for the rest of the session remains to be seen. 2018 is a critical election year with the primary in August and general election in November. The Legislature officially completes its last general business floor period in midMarch of 2018 and lawmakers will be anxious

helped build momentum for getting rid of the on March 1, 2018. Items correctly classified tax. under the category of Machinery, Tools, and However, successfully getting a full repeal Patterns not used in manufacturing will now fell victim to the headwinds of an estimated be exempt from Wisconsin’s Personal Property $261 million annual price tag. The legislature Tax. By law, tax assessors have the right to view subsequently came up with an alternative personal property based on the statement, so and agreed to carve out yet another personal members should be prepared to justify items property tax exemption at a much lower price previously reported as taxable that are now tag of $74.4 million per year aimed specifically exempt. at non-manufacturing machinery, tools and A partial repeal or another exemption—the patterns. upside is the state Legislature did take another Effective with personal property tax step forward to eliminating the personal assessments starting on January 1, 2018, all property tax altogether. Key legislators have Machinery, Tools, and Patterns not used in promised to revisit this issue in the next budget manufacturing will now be exempt from cycle with the hopes of advancing a full repeal personal property tax. The new law defines plan. The bad news is that the lawmakers machinery as “a structure or assemblage of clearly missed an opportunity to, once and parts that transmits force, motion, or energy for all, do away with this outdated, unfair, from one part to another in a predetermined confusing tax and simply added more holes to way by electrical, mechanical, or chemical the swiss cheese with another exemption. means.” It further states that “machinery does not include a building.” > Misha Lee, IIAW Government Affairs Counsel What does this mean for Wisconsin insurance

WISCONSIN INDEPENDENT AGENT

NOVEMBER 2017 | 27

News Members in the

Grange Insurance Introduces 36-Month Policy Option for Businesses

Grange Insurance has launched a new 36-month commercial insurance package policy, helping select businesses spend less time focused on renewing their insurance each year and more time focused on what matters most—running and growing their businesses.

“As part of our commitment to independent agents and growing their commercial business, Grange is making significant investments to transform ourselves into a commercial carrier of choice,” said Mike Winner, Grange Insurance President of Commercial Lines. “Our commitment to the 36-month package policy is an example of one of these investments.”

Grange’s 36-month package policy gives commercial policyholders that qualify the opportunity to have consistent, stable rates, terms and conditions for 36 months, or three years, along with a simple, streamlined annual update process.

Grange Insurance is one of only a few insurance carriers to offer businesses a 36-month commercial insurance policy, giving its customers an alternative to traditional annual policies where the rate can change each year.

“This product will help differentiate Grange from our competitors,” Winner said. “It will also let us stand out in the commercial insurance space and be a great partner and leading commercial carrier for our independent agents.”

Though the rate, terms and conditions will remain the same, 36-month policyholders can still update their insurance policy mid-term and adjust the overall premium to reflect business changes and changes in risk exposure, such as adding more employees or streamlining operations. Businesses can also pair the 36-month policy with other annual policies within a single account.

Grange Insurance’s 36-month policy is just one of many investments Grange is making on its path to becoming a preferred commercial carrier for its independent agents. Those investments include both its consultative underwriting approach and Risk Management Consulting services to help its independent agents solve the insurance needs of their commercial customers, and to help those commercial customers improve workplace safety and avoid losses.

Most recently, the company launched a new cyber coverage for businesses in 2016 that gives policyholders access to cyber security protection services from CyberScout.

Acuity Completes Headquarters Expansion Acuity announced that it has completed the expansion of its corporate headquarters in Sheboygan. The project created two additional wings of office space and doubled the amount of

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total building space, which now stands at over 1.2 million square feet.

Acuity’s headquarters can currently accommodate 1,600 employees, and the infrastructure now in place could ultimately support 4,000.

Acuity began the expansion in late 2013. The project was driven by strong growth in Acuity’s customer base that led to the hiring of hundreds of new employees over the past several years.

“Expanding our headquarters reflected not just a current need, but our faith in Acuity,” said Ben Salzmann, Acuity President and CEO. “We are constantly planning for the future, and our expansion is part of our preparation for handling growth in business we will achieve in the years ahead.”

In addition to the southeast wing completed in July 2016 and the northwest wing finished in February 2017, Acuity added new galleria space, two 640-car parking structures, expanded training facilities, and upgraded infrastructure, utilities, and security. The company gained energy efficiency through HVAC upgrades and through an “outside-in” approach to design that spreads natural lighting throughout the interior space. New workstations include ergonomic features such as heightadjustable, sit-stand desks. The company also more than doubled the size of its on-site fitness facility, The Firm.

“Our people are the heart of Acuity and the reason for our success,”

A cross-section of Acuity’s expanded headquarters shows how architectural features create an effective, unified space.

said Sheri Murphy, Acuity’s Vice President - Services and Administration.

“An overarching goal of this project was to create a business environment that was both state-of-the-art and employee-focused.”

The project also expanded on design features that make Acuity unique among employers. The company now has a 2,000-person theater-in-theround for companywide meetings where no seat is more than 66 feet from stage. A 65-foot Ferris wheel, dubbed the Acuity Charity Wheel, was permanently installed for special events and fundraising, as well as a climbing wall.

The project also built on Acuity’s reputation for its stunning artwork, with the company commissioning additional installations of the iconic Seven Sisters glass sculptures that can be clearly seen by tens of thousands of motorists who pass by each day on Interstate 43. A time-lapse video of the installation is available at www.acuity.com/ sevensisters.

“We are one of the first businesses in Sheboygan that travelers see,” Murphy said. “We want visitors to get a positive and lasting impression not just of Acuity, but of the community as well.” Additionally, the company installed a group of gargoyle statues, traditional symbols WISCONSIN INDEPENDENT AGENT

action, developing a plan to bring the region together in support of the victims’ families.

Throughout the 10-week social media campaign, the $1.14 billionasset community bank used its social media channels as a platform to raise funds for victims and organize fundraising events, increasing its reach by more than 1,333 percent.

Meghan Axtman Wins the Second Annual InsurTech Scholarship

An aerial architectural rendering of Acuity’s corporate headquarters expansion. of protection, to emphasize the company’s mission of protecting its customers.

Acuity’s headquarters campus is also home to the World’s Tallest Symbol of Freedom, a 400-foot flagpole that flies an American flag measuring 140 feet wide by 70 feet high. Acuity erected the flagpole in 2014 as a statement of gratitude to our country and those who defend it. At the base of the pole is a Veterans Memorial. The flagpole is one of the most visible landmarks on the Interstate 43 corridor.

Remaining on-site work will include finishing the landscaping of the headquarters grounds.

Acuity, headquartered in Sheboygan, Wisconsin, is a property and casualty insurer that operates in 26 states, generates nearly $1.4 billion in revenue through 1,000 independent agencies, and manages over $4 billion in assets. Named one of the top 10 large companies to work for in America, Acuity employs over 1,200 people.

River Valley Bank Recognized as a 2017 Independent Banker Social Media and Marketing Leader For decades, community banks have reigned as leaders of relationship building (and lending). But with a range of new marketing techniques and digital channels, community banks are proving just how powerful their stories of camaraderie, friendship and trust can be when they are shared across social platforms.

The four community banks chosen for recognition in this year’s Independent Banker Social Media and Marketing Leaders, sponsored

by WebbMason Marketing, did much more than tell a story to their audiences. Instead, these banks became immersed in their communities by marrying digital communications with the relationship building ingrained in community banking.

The marketing efforts of these community banks are not only driving new business and creating powerful branding for the banks themselves; they are also inspiring other local and small businesses to experiment with new digital strategies. Themes of tight-knit communities, friendship and coming together during trying times continue to resound in community bank messaging, but our winners demonstrate that the industry is grabbing the attention of online audiences in increasingly captivating ways.

It’s no secret that community banks are vital to their communities during times of need. Earlier this year, after a tragic event, River Valley Bank went further by using social media to drive outreach and support from neighbors, media and other businesses in the region.

When four people, including two tellers from a neighboring bank, were killed in a shooting in March 2017, River Valley Bank sprang into WISCONSIN INDEPENDENT AGENT

Insurance Technologies Corporation (ITC), a provider of agency marketing, rating and management software and services, announced today Meghan Axtman is the recipient of the 2017-2018 InsurTech Scholarship.

Axtman, a full-time student at the University of WisconsinMadison, won the $1,000 scholarship prize for her excellent academic accomplishments and enthusiasm for pursuing a career in the insurance industry.

“Congratulations to Meghan Axtman, the winner of the InsurTech Scholarship!” said Laird Rixford, president of ITC. “During Meghan’s internship with an Sparks Insurance, an independent insurance agency, she showed eagerness and understanding for the needs and future of the industry. We look forward to seeing the impact Meghan will have on the insurance industry in the future.”

Applicants submitted a 1,500-word essay about the impact technology will have on the insurance industry during the next five years.

Axtman is a senior studying economics at the University of Wisconsin-Madison. She is a member of the Women in Economics Club. Axtman expects to graduate with her bachelor’s degree in May 2018 and hope to work as an underwriter.

R&R Named Waukesha County ‘Business of the Year’ Waukesha County Executive, Paul Farrow, recently announced winners of the 2017 Waukesha County Executive Awards and R&R Insurance was proudly named ‘Busines of the Year.’

In addition, the Hebron House was named ‘Best Large Non-Profit,’ Oconomowoc Silver Streak was named ‘Small Non-Profit of the Year,’ and Your Choice to Live Director Sandi Lybert was named ‘2017 Champion of the County.’

Congratulations to all those being recognized!

A celebration luncheon will be held in November for award winners.

Global Insurance Accelerator Announces SFM Mutual Insurance as New Investor The Global Insurance Accelerator (GIA), the world’s first business accelerator focused solely on innovation and technology for the insurance industry, is pleased to announce that SFM Mutual Insurance Company (SFM), a workers’ compensation specialty provider, will join the GIA Board of Directors as part of support for the company’s recent annual investment.

Founded in 1983, SFM is a leading provider of workers’ compensation insurance in the U.S. Midwest. The company’s mission and values reflect those of its member base with a concentration on integrity, high service standards, and innovation as a means of meeting and exceeding policyholder expectations.

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News Members in the

innovation in and for the insurance industry via a mentor-driven, 100day program. GIA supports an annual cohort by providing each graduate company $40K of seed money in exchange for six percent equity. During the program, cohort members get insurance-specific mentoring via 1:1 meetings with industry executives, as well as basic business infrastructure assistance, coaching on garnering investments, and product-specific insights into strategies for increasing applicability to and feasibility for the insurance industry. The GIA extended network includes insurance company investors, startups and mentors from across the global business and insurance communities. For more details please visit www. globalinsuranceaccelerator.com.

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“We see participation in the GIA as a fitting expression of our long-standing culture of innovation,” said Bob Lund, president and chief executive officer of SFM. “Harnessing technology to better serve the needs of our customers is one of the ways we deliver long-term value, and the GIA presents a vital dialogue around that commitment.”

The GIA’s immersive program invites insurance technology (InsurTech) to Des Moines, Iowa, one of the nation’s largest business centers for the modern insurance industry, for in-depth industry mentorship and business coaching, as well as exposure to insurer operations, focused line of business (LOB) insight, and access to potential additional investors. Each April, cohort companies graduate by pitching onstage in front of Global Insurance Symposium attendees.

“Our industry-leading, 95 percent policyholder retention rate is a key indicator of our commitment to delivering long-term positive results for our customers,” said Mike Happe, senior vice president and chief marketing officer for SFM. “We look forward to offering our mentorship and encouragement to those seeking meaningful ways to embrace technology to make the world a better place.”

The GIA has steadily added new investors throughout 2016 and 2017, and recently completed the most globally-diverse cohort to-date. SFM joins the GIA’s existing investor group in offering program mentors, and looking forward to the annual InsurTech Week in Des Moines which will take place October 23-27, introducing an additional 15 InsurTech startups to the GIA network.

“SFM is joining the GIA at the perfect time,” said Brian Hemesath, managing director for the GIA. “Not only are we looking forward to their participation in board discussions and leadership, but InsurTech Week offers an opportunity for their best people to engage with InsurTech startups in a 1:1 way almost immediately. This is a great way to launch our work together and to boost to their already thriving internal culture of innovation.”

As a part of the GIA, insurer investors are often exposed to the newest industry-specific technology trends ahead of formal product launches, and, are therefore better positioned against modern competitors operating in the same markets. While the startups included in each of the GIA’s annual cohorts are typically early-stage, those participating in InsurTech Week vary widely in stages of business and product development.

For information on becoming an investor in the GIA, or on applying for the 2018 GIA program, please visit www. globalinsuranceaccelerator.com.

About the Global Insurance Accelerator (GIA) Launched in 2015, the Global Insurance Accelerator (GIA) fosters

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Society Insurance Introduces Leading-Edge Cyber Liability Coverage Society has announced cyber liability insurance coverage beginning with new policies and renewals effective December 1, 2017.

While Society has offered basic data breach protection in the past, this comprehensive cyber liability insurance coverage is broader in scope, addressing both first-party losses and third-party liability claims, and including protection from things like cyber extortion and payment card company rule violations.

“Society is thrilled to offer cutting-edge cyber liability insurance protection to complement our suite of business insurance products.

This coverage is particularly important for the service and hospitality industries we serve,” said Society Vice President of Commercial Underwriting D. Holly Lifke. “As always, we are committed to educating agents and policyholders on smart risk management techniques to prevent the worst from happening while providing protection and peace of mind if it does.”

With cyber liability insurance available at a competitive price, Society remains on the front line of providing innovative insurance products with great attention to the details that matter most to business owners.

SECURA named one of 2017’s Best Small and Medium Workplaces SECURA Insurance has been certified by Great Place to Work® and Fortune as one of 2017’s Best Small and Medium Workplaces. This is the second year the Fox Cities-based property and casualty insurance company has been recognized with this award because of results from an anonymous survey completed by employees. Camaraderie, leadership, fairness, rewards, and career opportunities were categories in the assessment. SECURA ranked 73 among the 100 leading organizations.

A strong sense of community stood out in the survey results, which highlighted many of the company’s strengths. “It means a great deal to be recognized as a ‘Great Place to Work’ because it captures the intangible qualities that make our company a great place for employees to invest in themselves and their talents,” said Garth Wicinsky, Senior Vice President and Chief Administrative Officer. “We strive to be a place where people want to be, and surveys like this show that we’re hitting the mark.”

“We applaud SECURA Insurance for seeking certification and releasing its employees’ feedback,” said Kim Peters, Executive Vice President of Great Place to Work’s Certification Program. “These ratings measure its capacity to earn its own employees’ trust and create a great workplace— critical metrics that anyone considering working for or doing business with SECURA Insurance should take into account as an indicator of high performance.”

“According to our study, 93 percent of SECURA Insurance employees say it is a great workplace,” says Sarah Lewis-Kulin, Vice President of Great Place to Work Certification and List Production.

WISCONSIN INDEPENDENT AGENT

Outstanding small and mid-sized employers—as identified by their employees—are substantially more likely to report work experiences linked to retention, innovation, and good customer service, according to research by Great Place to Work. The winning organizations also are more likely than their peers to maintain a healthy organizational culture as they grow larger and more complex.

Wicinsky said, “Our commitment to our employees’ achievements, health and wellness, and work life balance is reflected in our growth as a company, as well as those we connect with—our agency partners, policyholders, and community.”

Associates completed 548 anonymous surveys, with a 90 percent confidence level and a margin of error of ± 1.68. This ranking considered 74,000 surveys from employees at hundreds of businesses in all sectors of the economy. The survey included questions like: > Do employees trust the people they work for? > Are people proud of their work? > Are great experiences available to everyone, or does it depend upon who you are and what job you perform?

In addition to high rankings for camaraderie and community involvement, SECURA employees feel valued by their company.

Competitive pay, benefits, profit sharing, and 401(k) contributions are complemented by additional perks like an onsite Caf�, fitness center, access to health and wellness professionals, summer hours, and other creative benefits like grants for first-time home buyers and High Fives, which are peer-to-peer company-sponsored rewards.

The company also encourages employees to pursue professional development opportunities, career mapping, leadership training, and continuing higher education.

One of SECURA’s most popular initiatives is a program called SECURA Cares, which provides temporary financial support for employees going through tough times. Throughout the year, employees “pass the hat” with activities and fundraisers, and a committee reviews confidential recommendations and provides support based on the individual needs.

A strong employee culture has led to financial success for SECURA Insurance. The company is in Ward’s 50 top-performing property and casualty insurers, and has earned an A (Excellent) financial strength rating from A.M. Best. It was also recognized by the TV program “World’s Greatest” for its outstanding workplace culture.

About the Best Small and Medium Workplaces T he ranking was based on anonymous feedback from more than 74,000 employees working at Great Place to Work-Certified organizations. Employees completed a Trust Index™ survey with more than 50 questions assessing pride, camaraderie, executive effectiveness, innovation, benefits, professional development, and other elements of a great workplace. Scores also considered organizations’ performance relative to their size and industry, as well as their ability to provide a great workplace for all employees, regardless of who they are or what they do. Survey results from eligible companies had a 6 percent margin of error, at most, with a 95 percent confidence level. Organizations with 10 to 99 employees were considered for the small workplaces list and those with 100-999 employees were considered for the medium list.

To find out more about becoming Great Place to Work-Certified and eligible for Best Workplaces lists published with FORTUNE, visit www.greatplacetowork.com.

WISCONSIN INDEPENDENT AGENT

Motorists Insurance portal expands service to three more states Motorists Insurance expanded its portal service to Illinois, South Carolina and Wisconsin today to provide superior technology and service to agents representing Motorists Insurance Group.

Motorists Insurance is the new commercial lines solution launched by Columbus-based Motorists Insurance Group May 1. It now operates in five states on a pilot basis as the company works to refine and improve strategies for a rollout to its 29-state footprint through 2018.

“Motorists Insurance allows us to offer one technology platform and a consistent set of processes and procedures to serve our independent agents, associates and policyholders,” Motorists CEO Dave Kaufman said. “Our vision is to be the most trusted and responsive provider of industry-leading insurance solutions. To do that, we knew we needed to transform how we sold and packaged coverage for our agents and policyholders. Motorists Insurance is the result of that transformation.”

Motorists is committed to being a high-tech, high-touch company. Its information technology and underwriting associates work in the same open space for integration of the disciplines to constantly improve customer experience.

The products Motorists Insurance offers are unique in the industry.

The MiChoice Business Program offers tiers to choose the right coverage to fit the size and unique liability needs of a company. Policyholders won’t pay for coverage they don’t want or need, and agents will have more power to customize a policy to satisfy their customers’ needs and budget.

The commercial product offering complements the workers’ compensation offerings of BrickStreet, which Motorists Insurance Group announced an affiliation with this past spring.

New Executive Vice President Named In Madison Ansay & Associates, a leading regional insurance and benefits solutions agency, has hired Dan Hanes as its Executive Vice President in its Madison office, effective immediately. The current Executive Vice President, Tim Draxler, will be staying on-board during the transition until his retirement. Tim Draxler has been a leader and asset to Ansay & Associates in the Madison Market and will help Hanes continue that success. Hanes has extensive experience in the insurance industry, which has included stops at MassMutual Wisconsin, American National Insurance Company and Farmers Insurance Group.

“Dan not only has experience, he has the right kind of experience we desire at Ansay,” said Ansay & Associates Chairman & CEO Mike Ansay. “He’s a natural leader who excels at building teams, improving the overall customer service experience and coaching other associates.

Those are the traits we’ve been searching for. We couldn’t be more excited to have Dan in our organization.”

Hanes’ expertise also includes news business development through field consulting and coaching, building outstanding sales teams and improving sales processes. He was most recently employed as a Vice President of Sales at MassMutual Wisconsin in Madison, where he was responsible for building and leading a team of Wealth Advisors.

“I’m eager to bring my knowledge and skills to Ansay & Associates,” Hanes said. “Throughout my career, I’ve been focused on growth – whether that was revenue growth or the growth of my fellow associates.

I look to continue that growth at Ansay & Associates.”

Ansay & Associates, recently named one of “2017’s Fastest Growing Firms” by the Milwaukee Business Journal, serves over 5,000 Wisconsin businesses and 20,000 individual customers. It has more than 220 employees and 10 offices throughout Wisconsin.

NOVEMBER 2017 | 31

COMMENTARY FROM COUNSEL

FEDERAL COURT STRIKES DOWN RULES EXTENDING OVERTIME PAY TO MILLIONS OF WHITE-COLLAR EMPLOYEES If you’re a regular follower of this column, you probably remember an article from last summer about the long-anticipated wage and hour regulations issued by the U.S. Department of Labor. The Final Rule on Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees under the Fair Labor Standards (FLSA), issued in May 2016, was set to substantially increase the salary threshold that had exempted most white-collar workers from overtime pay requirements, automatically extending overtime pay protection to more than 4 million workers during its first year of implementation.

But, on August 31, 2017, a federal court in Texas struck down the new Department of Labor regulations, ruling that the agency had exceeded its authority when it significantly increased the salary level necessary to exempt

the kind of work associated with exempt executive, administrative or professional employees (the “standard duties test”) unless the employee is considered a “highly compensated” worker—in that case, the

beyond the scope of the Department of Labor’s Congressional authority to “define[] and delimit[] which workers are employed in a “bona fide executive, administrative, or professional capacity” such that those

executive, administrative, and professional workers from overtime pay requirements.

This decision represents a huge win for employers who faced the prospect of having to overhaul their overtime pay practices or risk steep penalties for noncompliance (including double damages and attorney’s fees for failure to pay overtime wages).

less stringent “minimal duties test” applies instead.

individuals are exempt from overtime pay requirements. According to the court, the dramatic increase in the salary-level “effectively eliminated” the duties tests mandated by Congress, rendering the new rule unlawful.

The court found that “Congress unambiguously directed the Department [of Labor] to exempt from overtime pay employees who perform ‘bona fide executive, administrative, or professional capacity’ duties” and that the Final Rule would “make overtime status depend predominantly on a minimum salary level, thereby supplanting an analysis of an employee’s job duties.”

The Department of Labor had previously estimated that 4.2 million workers currently ineligible for overtime, and who fall below the minimum salary level, would automatically become eligible under the Final Rule without any change to their duties. The court determined that, “[b]ecause the Final Rule would exclude so many employees who perform exempt duties” in violation of the “unambiguous intent” of Congress in passing the FLSA, the regulations are “unlawful” under governing principles of federal law.

The Texas court’s ruling invalidates the Final Rule nationwide and the Department of Labor has already indicated that it does not intend to pursue enforcement of the rule. Employers of white-collar workers can be assured that the rule (and its harsh penalties) will not be implemented. For additional guidance on your agency’s compensation practices, be sure to consult with competent counsel.

Background In 1938, Congress enacted the Fair Labor Standards Act—a law that sets minimum wage and overtime pay requirements and authorizes the Department of Labor to promulgate rules that define and effectuate various provisions of the law. As a general matter, employers are not required to pay overtime wages to most executive, administrative, and professional (“EAP”) employees as long as those employees satisfy three criteria. To determine if an individual is an EAP employee exempt from overtime requirements, the Department of Labor has set forth tests for analyzing each criterion.

First, the employees must be paid on a salary basis not subject to reduction based on the quality or quantity of work (the “salary-basis test”). Second, the salary must satisfy a minimum threshold (the “salarylevel test”). The salary level test is not the same as a minimum wage requirement—no employer is required to pay any employee a salary specified in the regulations (unless the employer is claiming an applicable EAP exemption). Some types of professionals (namely teachers, attorneys, and doctors) are specifically excluded from the salary basis and salary level requirements. Third, the employee’s primary job duty must involve

32 | NOVEMBER 2017

The Final Rule The Final Rule was primarily aimed at updating the salary and compensation levels that exempt white-collar workers from overtime payment requirements. The rule provided that, on December 1, 2016, the salary threshold for overtime pay exemption would jump from $455 per week (or $23,660 for a full-year worker) to $913 per week ($47,476 for a full-year worker)—more than double the previous amount. The rule also was set to raise the salary threshold for overtime exemption for highly compensated employees from $100,000 to $134,004 annually (to the annual equivalent of the 90th percentile of full-time salaried workers nationally).

But the rule did not take effect last December because several parties (including 21 states and a number of businesses) filed a lawsuit against the Department of Labor in a federal court in Texas to challenge the Final Rule. On November 22, 2016, the court issued a preliminary injunction which blocked the rule from being implemented until a determination could be made as to the merits of the parties’ arguments.

Federal District Court’s Ruling On August 31, 2017 the federal court in Texas ruled that the Department of Labor had exceeded its authority by significantly increasing the salary level requirement for the overtime exemption. The court ruled that the Final Rule’s more-than-doubling of the previous minimum salary level was

> Josh Johanningmeier is the IIAW’s General Counsel.

Call the Legal Services Hotline at (877) 236-1669.

WISCONSIN INDEPENDENT AGENT

AT YOUR SERVICE

TRISHA OURS JOINS IIAW AS DIRECTOR OF AGENCY AND MEMBER SERVICES Meet Trisha Ours…or maybe you already have.

Trisha Ours is no stranger to the independent agency. Through her involvement as an employee at the Horton Group for fourteen years to her active membership on the IIAW Emerging Leaders committee, she attributes earning her new role to her experience and passion. “The committee helped me grow in so many ways and was a catalyst for where I am today.”

Trisha officially joined the IIAW staff in September and hit the ground running with plans to enhance membership engagement and experience. Trisha has a clear passion for the work she does and wants all members to know she is here to help. It is important to get the

most out of your membership and as Director of Agency & Member Services, Trisha will be your key to making sure that happens for you and your agency. With the addition of Trisha to the IIAW staff, the bar gets raised even higher for what we can accomplish. Now more than ever, IIAW is putting a focus on member services and will continue to strive to ensure everyone is receiving best-in-class resources, service, training and key insights on new developments and trends in the industry.

Growing up in Green Bay, WI, Trisha moved to Milwaukee for school. “Like many people in the industry, I didn’t aspire to be an insurance agent. In fact, I wanted to be a teacher.” While working hard to support herself financially, she found herself in a role as a receptionist at the Horton Group. She continued to work in every service role they had and gained the experience to pursue her true dream of working in training and operations; a dream she will get to fulfill in

her new position at IIAW. Although she didn’t become a teacher herself, she did marry one! Trisha met her husband Mike during volleyball open gym at UW-Milwaukee.

They now have three boys: Spencer (9), Mason (7) and Liam (21 months). These boys keep her busy, but she is still able to find time to enjoy some of her own passions like hula hoop dancing, singing, painting, running and being outdoors. Trisha also enjoys giving back to her own community as the Vice President of both her neighborhood association as well as the PTA. Many of you may already know Trisha, but others may be meeting her for the first time.

Whichever is the case for you, it is in your best interest to reach out to her. Everyone from new members to those who have been enjoying the benefits of the Association for years should invest the time and connect with Trisha on the details of your membership and how we can enhance the experience of being a part of the IIAW.

SNAP SHOT into a Top 100 Agency How we grew from 28 Producers to 95 Producers.

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Learn More: Gary Burton I gburton@robertsonryan.com I 800.258.0277 I RobertsonRyan.com

FOOD FOR THOUGHT An insurance agent went to a museum and he accidentally hit a statue.

Museum administrator: “that’s a 500-year-old statue you’ve broken!”

Insurance agent: “thank god! I thought it was a new one.”

The blonde thinks: “The insurance agent must have tried to grope me in the dark and mistakenly groped the old lady, so she slapped him.”

The old lady thinks: “That guy must have groped the blonde in the dark and she slapped him.”

‘‘

The insurance agent thinks: “The underwriter must have groped the blonde in the dark and she mistakenly slapped me instead of him.”

The underwriter thinks: “I can’t wait for the next tunnel, so I can slap that insurance agent again!”

Needing insurance is like needing a parachute. If it isn’t there the first time, chances are you won’t be needing it again.

Crash course in service excellence.

‘‘

An underwriter, an insurance agent, an old lady and a beautiful blonde find themselves together on a train.

The train passes through a tunnel and, in the darkness, a loud slap is heard. When the train came out of the tunnel and into the light, they see that the insurance agent has a red five-finger mark on his cheek.

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WISCONSIN INDEPENDENT AGENT

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