January 2015 by Independent Insurance Agents of NM

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NEW MEXICO’S EXPERTS IN WORKERS’ COMPENSATION INSURANCE

3900 Singer Blvd. NE • Albuquerque, NM 87109 • 505.345.7260 or 800.788.8851 •

www.NewMexicoMutual.com www.iianm.org

a L

“La Voz” is the official monthly e-publication of the

Independent Insurance Agents of NM 1511 University Blvd. NE Albuquerque, NM 87102. (505) 843-7231. Fax (505) 243-3367. Web site www.iianm.org. This publication is intended to provide accurate and authoritative information on the subject matter covered, but is distributed with the understanding that neither IIANM, nor any contributing author, publisher, contributor or advertiser is rendering legal, accounting or any other professional service and assume no liability whatsoever in connection with its use. Further, the electronic links to our advertisers and/ or contributors found in this publication are provided as a courtesy to our readers and do not necessarily indicate an endorsement by IIANM. News items from members of Independent Insurance Agents of New Mexico and the general insurance industry are encouraged. The advertising deadline is the fifteenth day of the month, preceding publication. Advertising rates are available upon request. Please contact Rachel Sheffield at rachel@iianm.org for details

IIANM Staff President/CEO Thom Turbett Chief Strategy Officer Marit Peters VP of Member Services Consuelo Trujillo Insurance Programs Administrator Suzie Dodds, CIC Communications Director Rachel Sheffield Member Services Associate Renee Trujillo

2014-2015 Officers Chair Gabe Portillo Vice-Chair Connie Sevier Secretary/Treasurer Mike Parisi National Director Sam Conlee Immediate Past Chair Diana Hobbs www.iianm.org

"The Voice" of Independent Agents since 1934

Features

VoZ

Become a 2015 Partner! 04 Legislative Mixer 06 Thank You InsurPac Donators 06 Save the Date for Spring Seminar

Dues Deductibility 07 Snap Stats 09 Thank you NextGen! 09 Agency Dress Codes 11 Business Income With Out Extra Expense

3 Tips for Motivating Employees 15 Should I Report it to my E&O Carrier?

No One Buys Insurance on Social Media

Top 12 Developmental Goals for Leaders

49 Awesome Social Media Ideas for Insurance Agents

In Every Issue IIANM 2015 Company Partners! 04 Tech Talk 20 January’s Clickable Calendar 26 Odds n Ends 27

Advertiser Index Acuity 22 Burns & Wilcox Back Cover Litchfield Special Risks

Market Finders, Inc. 14 Molina Healthcare 10 Mountain States Insurance Group

New Mexico Mutual 02 Union Standard

e a 2015 Partner! m o c e B The Partners Program is a win-win situation for both IIANM and its Partners. Our Partners appreciate this "one-stop" approach to supporting IIANM and its members. From IIANM's point of view, it saves time and resources formerly spent soliciting for event sponsors. We invite companies to experience the enormous networking, recruiting and branding opportunities presented by becoming an IIANM Corporate Partner. Our Associates Partnership program puts supporters front and center in a meaningful and memorable fashion. Benefits to you: • Support the Agency Distribution System: Your backing makes it possible for IIANM to develop affordable, quality programs that enhance the professionalism of New Mexico's independent insurance agents. • Substantial Savings: The value of the various benefits you receive as an IIANM Partner far exceeds the cost! • Unique Perks: Many of the perks you receive as an IIANM Partner are not available to other companies - at any cost. • First Pick: Diamond, Platinum, and Gold Partners are guaranteed first pick of sponsorships and exhibit space at IIANM events. Six levels of participation are available:

DIAMOND

Diamond

Gold

Platinum

Silver

Bronze

COPPER

Copper

For more information, to view a graph with a breakdown of what each level is entitled to, and for a pledge form, click here. Contact Consuelo Trujillo at 505-999-5805 or consuelo@iianm.org with any additional questions.

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These carriers have partnered with our association to support the vitality of the independent agent system in New Mexico. Take a moment to visit their new page on our site and take advantage of their varied products and services. Independent agents have the freedom to choose!

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Independent Insurance Agents of New Mexico

2015

LEGISLATIVE MIXER February 5th, 2015 5:30pm The room block with a rate of $99 is now available at La Posada of Santa Fe Resort & Spa. Guests may call the following phone number: 800 325 3589 to make reservations.

Room block deadline is January 9th.

2014

CONTRIBUTORS

Mu c h as Gra c ia

The following people donated to the cause in 2014 - shouldnâ&#x20AC;&#x2122;t you join them next year? Armstrong, Robert Berryman, Al Bundy, Gail Burke, William Conlee, Sam Dunagan, George Fortner, Bill Hobbs, Diana Jones, Scott Leavell, Carroll Minick, Dick Parisi, Mike Portillo, Gabe Rice, Robert Sevier, Connie Sims, Gary Turbett, Thom Wiegel, CJ Wolff, PJ

Armstrong Coury Insurance New Mexico State University First Santa Fe Ins Services, Inc. Burke Insurance Group, Inc. USI Southwest, Inc. Dunagan Associates AVI Risk Mngmt Insurance Brokers Millennium Ins Agency, a Division of Leavitt Brown & Brown of New Mexico, Inc. Leavell Insurance, Inc. Minick & Company, Inc. Western Assurance Berger Briggs Real Estate & Ins Mahoney Group, The Western States Insurance Group Inc J S Ward & Son, Inc. IIANM Tucumcari General Insurance Agency HUB International

$100.00 $150.00 $100.00 $2,500.00 $300.00 $120.00 $1,000.00 $150.00 $250.00 $150.00 $500.00 $100.00 $300.00 $250.00 $250.00 $100.00 $500.00 $150.00 $250.00

General Contributor Founders Club General Contributor Platinum Club Pioneer Club General Contributor Centennial Club Founders Club Pioneer Club Founders Club Gold Club General Contributor Pioneer Club Pioneer Club Pioneer Club General Contributor Gold Club Founders Club Pioneer Club

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Registration will be available, January 19th, 2015

S H E R AT O N A B Q U P T O W N 15 Hours of Continuing Education for the Insurance Professional This seminar is designed to specifically meet the annual continuing education requirement for licensed NM insurance agents. This two-day program offers educational opportunities, a great Trade Show with industry exhibitors, and provides a venue for industry professionals, agents, CSRs and company representatives to network. For those of you who have not attended before, this is how it works: • We will be featuring 4 tracks, taught by various instructors. • Choosing your classes is much like making selections from a menu. • You may choose to take all your classes within one track (i.e. commercial lines only) or you may choose to mix and match tracks. • The entire program is approved for both the P&C and L&H licenses, so you may attend any class you like.

Dues Deductibility By federal law, we are required to provide each of our member states with the following disclosure regarding their 2013-2014 dues. Dues to the Independent Insurance Agents & Brokers of America (IIABA) are not deductible as a charitable contribution but may be deductible as an ordinary and necessary business expense. To the extent that IIABA engages in lobbying, the portion of the dues that relate to lobbying expenses is not deductible as an ordinary and necessary business expense. This law was enacted in 1993, effective January 1, 1994 [Section 13222 of the Omnibus Budget Reconciliation Act of 1993 (OBRA 1993)]. The non-deductible portion of dues for 2013-2014 is 25.27%. Please forward this information to the appropriate staff in your organization. The following is a recap of the non-deductible portion of dues for the past six years: FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 www.iianm.org

Estimated Estimated Estimated Estimated Estimated Estimated Estimated

18.23% 17.72% 21.92% 22.83% 22.71% 23.76% 25.21%

Actual Actual Actual Actual Actual Actual

17.35% 21.37% 22.19% 22.29% 23.14% 25.27%

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INDUSTY ISSUES

The following chart provides a quick data overview of premium written, as well as market share, for the property-casualty insurance industry in 2012. This yearâ&#x20AC;&#x2122;s report primarily covers year-end numbers for 2012 and compares them with recent trailing years. The 2012 year is the last full period for which data provided to IIABA by A.M. Best Co. - is currently available. The 2012 year saw the strongest property-casualty market growth since the economy collapsed in 2008. Premiums grew by $20.4 billion, or 4.2%, over 2011 levels. Independent agency companies and their agents captured $12.5 billion of that growth, bringing in a total of $288.7 billion in p-c premiums. For more information, click here to access the full report.

PRINCIPAL

P&C Premium & Share Overview

Thank You! NextGen had a very successful food drive at IIANMâ&#x20AC;&#x2122;s Annual Christmas Party. They were able to deliver 490 lbs of food and $165 to Roadrunner Food Bank! Thank you NextGen and to our wonderful members for your generosity!

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Introducing Molina Healthcare’s exciting 2014 Medicare Advantage Prescription Drug Special Needs Plan Molina Healthcare, a Fortune 500 Company, was created more than 30 years ago by Dr. C. David Molina. As an emergency room doctor, he believed that every person should have access to high-quality care. Molina Medicare Options Plus HMO SNP Plan offers a competitive plan design with additional benefits that you can market year round to meet the needs of dual eligible customers.

• Large Provider Network • Comprehensive and Preventive Dental Services • Vision Exams and Eyewear • Transportation • Over-the-Counter Medications and Supplies • Strong Compensation Plan • Renewal Commissions • Competitive Plan • Market Year Round to Dual Eligible Customers

If you have a New Mexico Life and Health License, contact us to learn more. Please contact: Broker Support Unit (866) 440-9788 broker@molinahealthcare.com

NSR_14_MMG_345

38979MED0214

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Virtual University’s Ask an Expert

agency dress codes ulty

VU Fac

When I first started in this business, my employer required not only a coat and tie, but also a HAT! My how times have changed. In many organizations now, "business casual" is the order of the day. However, what constitutes "business casual," like beauty is in the eye of the beholder. As a result, without some guidelines, things can get out of hand.

"I know this question is very subjective, but I would like to hear what some of your experts' opinions are regarding agency dress codes. We are struggling with the corporate business dress or business casual dress issue within our agency. The management team seems to think corporate dress with coat and tie is the only way to go to promote a professional appearance and production would be negatively impacted if we lightened up on the dress code some. "The staff believes a more flexible business casual dress code with a coat and tie on an as-appropriate basis is more staff friendly and practical, especially during the hot summers we experience here in Texas. I know this may seem a trivial issue but it is causing some serious dissention between the staff and management within our agency. Your thoughts and comments would be greatly appreciated." When I first started in this business, my employer required not only a coat and tie, but also a HAT! My how times have changed. In many organizations now, "business casual" is the order of the day. However, what constitutes "business casual," like beauty, is in the eye of the beholder. As a result, without some guidelines, things can get out of hand. We ran this by our faculty and got the responses below.

Faculty response....

All employees come in looking professional in their cotton twills and shirts. They love it. When the occasion arises that a coat and tie or similar attire for the ladies is required, there is no problem.

My suggestion is to form an employee team to draft the guidelines for management to approve. Let the team know that in drafting the guidelines, it needs to answer this question - if our most important client were to visit the office unannounced and for the first time, what impression would they have of the staff?

It causes dissension in a lot of agencies. The biggest problem is, when you relax dress codes, people take advantage. The agencies that have had most success have gone to a khaki or navy twill for pants or skirts and shirts with the agency logo. I have one agency that provided shirts for all of the employees in a variety of colors, 5 for each person. This is their summer dress code.

When the dress code is relaxed, people have different tastes and you get all kinds of inappropriate dress. I recommend the "uniform" approach or nothing.

Faculty response....

Most agencies are now in 'business casual' attire with an even more casual (or a themed) Friday. Many are purchasing logo products and either having employees wear the same (or any) logo attire as a form of uniform. Formal attire is used when important guests are expected or for staffers who visit clients expecting more formal dress. Business casual has taken over because businesses have become more aware that professionalism can actually be enhanced by allowing employees to be comfortable at work. www.iianm.org

Over the last few years I have seen most of the larger, more professional agencies move toward a more casual dress code but with specific, strictly enforced guidelines for what is appropriately called “business” casual - definitely no jeans, T-shirts, shorts, tank tops, sneakers, etc. It is rare that we see an office requiring coats and ties.

On approving the guidelines, management should probably stress that a relaxation of the dress code does not also mean a relaxation of the work ethic! With management being supportive of employees’ desires to go a little more casual, and letting them set the standards, you might just see an improvement.

Click here to view additional faculty responses and also other related articles. You will need to log-in to view, so if you do not know your log-in info, send Rachel an email.

CLIENT COVERAGE

Business Income "WITHOUT" Extra Expense By Bill Wilson Here’s the situation. The agency has a Building and Personal Property Coverage Form and a Business Income (Without Extra Expense) CP 00 32 10 00 on a granite/ marble shop. Lightning struck the premises, causing damage to a piece of machinery which would best be described as a compressor on steroids…a big piece of equipment. There is no debate that the machinery was substantially damaged. The adjuster has indicated that coverage for the machinery applies under the property form and repairs are being made. The insured took the initiative to rent a replacement compressor at a cost of about $100 a day. By the time repairs were made, the agent estimated the insured incurred about $6,000 in rental costs. Because of this rental, the insured has in reality suffered no loss of business income. The adjuster has denied the claim for the rental and told the customer, “If your agent had written the Business Income And Extra Expense Coverage Form, this would have been covered.” When the claims supervisor was contacted, his response was, "The coverage form covers the 'reduction' in business income. Since there was no business income paid, there is nothing to reduce and so no coverage."

our payment for Business Income loss and Expenses to Reduce Loss will not be more than the Business Income loss that would have been payable under this Coverage Form (after application of any Coinsurance penalty) if the Expenses to Reduce Loss had not been incurred. This coverage does not increase the Limit of Insurance. The Coinsurance condition does not apply specifically to such Expenses to Reduce Loss, but it is used as described above to determine the total amount payable.

As I understand it, the insured suffered no business income loss solely because he spent the extra expense to rent the machinery. As the policy language clearly shows, to the extent that it prevents a business income loss, the extra expense is covered. The claims staff should be encouraged to read the form.

PRODUCER

At some point, the agent will probably like the carrier to explain why their claims reps are creating E&O exposures for their agents by telling insureds what the agent should have done, but right now it's more productive to educate the adjuster and get the claim paid. The title of the form, "Business Income (WITHOUT Extra Expense) Coverage" is a misnomer. ISO should be encouraged to change the title to something like "Business Income (With Limited Extra Expense) Coverage Form." This is what the CP 00 32 says: 4. Additional Coverages a. Expenses To Reduce Loss In the event of a covered loss of Business Income, we will pay necessary expenses you incur, except the cost of extinguishing a fire, to avoid further loss of Business Income. The total of

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MANAGEMENT

By, JoAnna Brandi

3 Tips for Motivating Employees

It's tough to motivate employees to consistently create the kinds of positive customer experiences that lead to customer loyalty. It's like customer care; you can't "mandate" motivation any more than you can "mandate" that frontline employees feel genuine care for your customers. And the challenge can never be fully resolved if managers don't learn more about what makes their employees tick. I've traveled all over the country to teach people from all over the world about customer care, customer loyalty and workplace happiness. It's given me a thorough understanding of the pain points that businesses face each day, and one big challenge for so many is motivation. The bottom line: One size does not fit all when it comes to motivating all of your customer-facing employees. Different people are motivated by different things, and you should never assume you know what those things are. Motivation is directly linked to what an employee values. Uncover what they value and how they perceive the world and you'll have the key to what it takes to motivate them to be and do their best, to go above and beyond to build trusting and loyal customer relationships! Today, more than ever, creating happy, engaged and willing-to-say-greatthings-about-you-customers is key to long term profitability. Put these three action steps to work and then incorporate what you learn into your motivation initiatives:

Our belief systems are almost completely formed by the time we are 14 years old. Understanding a little about what was going on in the early years of each generation really helps to understand their world view.

Money isn't everything. Be mindful that when it comes to motivating employees, money isn't the be all and end all. Want proof? My friend and colleague Mel Klei-

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Motivation is both an inside-out and an outside-in proposition. Provide your employees with a balance of intrinsic and extrinsic motivations. Intrinsic motivation comes from within an individual while extrinsic, as the name implies, is being motivated from outside oneself by someone or something else. Most managers rely solely on the latter using money and/special privileges, thank you notes, pizza parties and the like. The problem: These can lose their power over time. To inspire intrinsic motivation, look for opportunities to get to know your employees and find out their individual goals, values and strengths. Make it your habit to notice, appreciate and build on them. Understand that everyone has their own individual combination of "motivators." When you find the right combo you unlock the passion inside. Would they like more opportunities for growth and challenge? Recognition in the company newsletter or in a memo to your boss? A chance to collaborate with others on a creative project? Telecommuting so they can spend more time with their kids? Prestige? Independence? A chance to teach others? Paying attention to ordinary conversations can reveal this extraordinary information. Scheduling a little one-on-one time with each employee every few months to tell them what they are doing right will put this information into a useful context for delivering feedback that will be appreciated.

PRINCIPAL

Learn how to do the multigenerational dance. Today's workforce is comprised of four distinct generations, each one having very specific needs and desires. While the WWII generation typically responds to authority, Gen X is self-reliant and tends to seek work/life balance. Meanwhile, Boomers tend to look for meaning in the ways they make a living while the youngest generation, Gen Y, is looking to be recognized for their efforts. Though these generalizations aren't cut in stone, they're a great starting point for beginning to understand what your staff members really want.

man (the world's leading authority on recruiting, selecting and retaining the best hourly employees.) offers this simple test: Write down four words – money, opportunity (growth and challenge), recognition and life style. Rank them one through four in the order of importance. People are always surprised to learn that nine out of ten people do not put money in the number one slot. Be sure to share this test with your team as well and to encourage people to share their results.

By putting these tips into action, you'll be off to an excellent start in "creating an environment where your employees feel good about themselves in your presence, and are inspired to perform at their best." JoAnna Brandi is Publisher of the Customer Care Coach® a weekly training program on mastering "The Art and Science of Exquisite Customer Care." She is the author of books such as "Winning at Customer Retention - 101 Ways to Keep 'em Happy, Keep 'em Loyal, and Keep 'em Coming Back" and "Building Customer Loyalty - 21 Essential Elements in ACTION."

To find more tips on managing, visit our “Management Tools” area on our website.

E&O

Potential E&O Claim:

Should I report it to my E&O carrier? By Brian Snyder, J.D., Assistant Vice President, Claims Specialist, Swiss Re Corporate Solutions*

The decision whether an insurance agency reports a potential claim to its professional liability carrier brings with it a host of issues to consider. What effect does reporting a potential claim have on my agency's loss history? How will it affect my agency's premium? What difference can it make? After all, it is a potential claim. My customer has not hired an attorney or filed a lawsuit against my agency. Am I only creating trouble for my agency by reporting this potential claim? The best source to answer this question is the agency's professional liability policy. The policy requires that an agency report potential claims to its carrier. But apart from that, there are additional, common sense reasons for doing so. The following example highlights those reasons.

PRINCIPAL

An agency's most important and long-term customer owned an engineering business along with numerous commercial buildings. The agency handled all of the customer's insurance needs obtaining, among other coverages, commercial property coverage. A pipe burst in one of the commercial buildings resulting in over $200,000 in damage. Unfortunately, the building was vacant for several years, a fact not shared by the customer with the agency. As a result, the commercial property coverage placed by the agency contained limitations on coverage for vacant buildings. Even though the agency suspected the carrier would invoke the vacancy provisions of the policy, the agency thought it was best, nevertheless, to report the claim to the carrier. The agency's suspicions were well-founded as the carrier denied coverage for the property claim because the building was vacant at the time of the loss and was vacant for several years.

The customer was outraged by the lack of insurance coverage, although it did not take issue with the carrier's coverage position. Like many business owners, the customer believed that the significant premiums he paid each year entitled him to coverage in the event of a loss regardless of policy language. The agency was worried about losing its most important customer, even though it knew it did not breach any duty owed to the customer. After all, the customer never told the agency about the change in the building's status: from occupied to vacant. And the agency also agreed with the carrier's coverage position. Faced with an angry customer who was litigious by nature, and a significant uncovered loss, the agency decided to report a potential claim to its professional liability carrier, Westport Insurance Corporation. The Westport claim handler made his initial contact with the agency within 24 hours of the potential claim being received by Westport. After collecting the claim information, the Westport claim handler and the agency worked together as a team to develop a strategy focusing on both the customer and the carrier. The customer was assured that the agency would advocate on the customer's behalf with the carrier in an effort to identify any avenue of recovery for the customer. At the same time, it was explained to the customer that the agency did nothing wrong in placing the property coverage that included vacancy provisions. The customer's indulgence was sought so that the agency could have time to then discuss the situation with the carrier. A commitment was made to provide frequent updates to the customer. The focus then turned to the carrier. As there was no dispute with the carrier's coverage position, the Westport claim handler and agency agreed on a two-part strategy that would leverage the agency's long-term profitable relationship with the carrier, and the customer's profitable account history. The agency appealed to the carrier using empirical data to prove that the carrier benefited throughout the years by doing business with the agency and the customer. As a result,

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the carrier agreed to make a business accommodation by paying the customer $100,000 on the uncovered claim. This decision was relayed to the customer. The agency believed that the carrier would contribute more. After further discussions with the Westport claim handler, the agency made an additional appeal to the carrier resulting in an agreement to pay an additional $100,000 bringing the total recovery to $200,000. The agency's contact with the carrier said that he had never seen a payment of this kind on a loss that was clearly not covered by the policy. The Westport claim handler and the agency had many conversations about not only what to say to the customer and carrier, but how to say it. Of utmost importance were creating and keeping goodwill with the customer.

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. Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re Corporate Solution.

*Brian Snyder, JD, is Assistant Vice President and Claims While not every potential claim is resolved on such favorSpecialists with Swiss Re Corporate Solutions. Brian joined able terms, this example shows what can be achieved the company in 1995 and has worked in several claims dewhen a thought-out, collaborative approach is taken by an partments during that time, and handled insurance agents agency and Westport. Without question, had this potential and brokers professional liability claims since 2001. Prior to claim not been reported to Westport, the customer would joining the company, Brian spent three years as a litigation AN E&O CLAIM YOU COULD HAVE AVOIDED. have sued the agency and the carrier, BY and the agency attorney in Kansas City, Missouri. would have lost its most important customer. Copyright 2014 Swiss Re

DON’T GET BITTEN

The agency may also be concerned about whether the mere reporting of a potential E&O claim will have any adverse underwriting effect on their E&O. Each situation BY AN E&O CLAIM YOU COULD HAVE AVOIDED. is unique and each carrier is different. Westport will review the facts and circumstances of the individual situation, but as a general rule the mere reporting of a claim does not automatically result in any underwriting action or increase in premium. Because your E&O professional liability policy is claims made, it is imperative that you report any potential claims immediately to your E&O carrier. In fact, Westport recommends that you report them as soon as practicable to ensure that the claim is reported during your policy period so coverage can be determined. In the situation described above, there generally would be no underwriting action taken or premium increase as a result of the potential claim. Big “I” Risk Management Website Not every potential claim will end up with a result like this Big “I” Risk Management Website one, but if you give yourself (and your E&O carrier) the opportunity to resolve things before they develop into www.independentagent.com/EOHappens something bigger, the probability of a positive outcome Big “I” members whose increases dramatically. And if you don't, the possibility is agency E&O Big “I” members DON’T BEE&O ON THE HOOK FOR: whose agency insurance is written by Swiss Re through DON’T BE ON THE HOOK FOR: insurance is written by Swiss Re through completely gone. By taking steps to report potential claims the Big “I” Professional Liability Program the Big “I” Professional Liability Program Failing to procure coverage requested the client Failing to by procure coverage requested by the client to Westport early, you may avoid actual claims and maybe have access to an exclusive risk have access to an exclusive risk Not adequately identifying client exposures Not adequately identifying client exposures management web site. management web site. even litigation. to provide timely notice of a claim to the carrier Failing to provide timely notice Failing of a claim to the carrier

www.independentagent.com/EOHappens

Log on today to fish for E&O claims

Misrepresenting or not explaining policy provisions

or not explaining policy provisions Log on today to fish for E&O claims frequency data, Misrepresenting real-life case studies and Providing inaccurate information to carriers frequency data, real-life case studies andanalysis, sample Providing inaccurate to carriers client letters, sample information Failing to properly add additional insureds or loss payees Need coverage for your agency? analysis, sample client letters, sample agency procedures, agency E&O self Failing to properly add additional insureds or loss payees assessments, podcasts on important We pool members’ volume and buyingagency power to procedures, agency E&O self E&O topics, and much more. offer competitive products and servicesassessments, for use podcasts on important E&O topics, and much more. by your agency.

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Multi-Line-Brokerage-Umbrella

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■ General Liability ■ Commercial Property ■ Umbrella/Excess Liability ■ Pollution Liability ■ Professional Liability ■ Liquor Liability ■ Directors & Officers ■ Errors & Omissions ■ EPL ■ Inland Marine

Classes of Business:

Markets:

Transportation

■ Scottsdale Insurance Co. ■ Canal Insurance Co. ■ Carolina Casualty Ins. Co. ■ Northland Insurance Co. ■ Colony Insurance Company ■ Lloyd’s of London ■ Century Insurance Group

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SALES

We use social media marketing to build an audience because it’s from that audience will we eventually pull leads and sales. Social media is not a direct sales tool, but it’s an incredibly powerful indirect sales tool. by Ryan Hanley

Let’s address the 800 pound gorilla in the room: the social media marketing ROI question. The “If I get on Twitter and Facebook how much revenue will I make?” question. The question far too many independent insurance agencies are using for not allocating resources to social media marketing. Let’s do this… we can’t move forward without being open, honest and transparent. Social media marketing are NOT sales tools. At least not in the traditional sense we insurance agents like to hang our hat on. Social media marketing is an audience building tool. We cannot expect to make direct sales out of social media. That doesn’t mean we won’t make sales, we just can’t expect to make them directly. Direct sales is not the purpose of social media marketing. If we try to use it as such our results (total revenue produced from online marketing activities) diminish.

At face value the concept of engaging in social media marketing without the expectation of sales seems ridiculous. I get it. I was an agent for eight years. We only have so much time in the day and doing things that don’t produce immediate results will never be a priority. Unfortunately the consumers we serve are beginning to dictate a new way of doing business. What offline marketing activity yields immediate results? Cold calling? Radio ads? Asking for referrals? All of these activities have a sales cycle. The only difference between the prospects we add to our pipeline through traditional offline marketing activities and the audience we build via social media marketing, is the perception that they are somehow different. In reality these individuals and businesses are the same thing.

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Building an audience online is the process of filling our digital sales pipeline.

How To Start Building an Audience Online At a high level, there are three steps to building an online audience for your insurance agency: 1) Determine your target audience. In the social media world, the shotgun approach to marketing does not work. Social media marketing consumes enough time, energy and resources, if you know exactly who you want to go after. It’s a a complete waste of time if you’re implementing the spray and pray method. Spend 30 minutes thinking about the type of business you want to write, what those individuals or businesses are interested in and where they can be found. 2) Choose one or two networks A common pitfall of insurance agencies looking to gain traction of social media is the “Be everywhere” strategy. Agents feel like they need to be on every social media platform in order to capture the maximum amount of attention and new leads.

PRODUCER

What is my agency supposed to do with an audience?

Just as producers have filled their sales pipeline for over century, they now must also be working to build an audience online. This is how we capture the Connected Generation consumer.

Pick only one or two social networks, (the networks most populated by the target audience you determined in step #1) and spend your time becoming well known there for your insurance work. 3) Consistently tell your story

Telling your story means sharing updates, thoughts, advice and information on your company, clients and community. I call this the 3 C’s of Storytelling. In order to build an audience online which will eventually turn into revenue you’re going to have to share something with a little more depth than a list of the products you sell.

Share updates about your agency in the form which fits the story you want to tell as often as you can.

Get the FULL Story

Steve

ANDERSON.com by, Steve Anderson (Always feel free to email me with comments, new ideas or products that have worked for you. I will check them out and spread the word!)

It’s Time to Update Your Payment Process The sale is not final until the check clears the bank. Getting paid for the insurance policies you sell is a key part of running a successful agency. How agencies have handled the payment process hasn’t changed all that much over the years—send an agency invoice, receive a check in the mail, and deposit it into the bank. Direct Bill transferred some of the burden of collecting money to the insurance company, but also transferred some of their loyalty from you to the company. Today’s consumers are demanding more payment options than ever before. Moreover, it is these changing expectations of your clients that require you to begin to think differently about how you get paid for the policies you sell. I have a friend in Dallas who owns a business and charges over $20,000 of business expenses a month on a credit card to earn the points. According to the latest New York Federal Reserve study on non-cash payments, the use of paper checks has gone from 37.3% of transactions in 2003 to 18.3% in 2012 (the latest year available). The use of debit cards has increased from 15.6% in 2003 to 47% in 2012. Do you accept credit or debit cards in your office? Mobile payment options will continue this trend away from paper checks to electronic payments. PayPal, Square—the little white dongle you add to your phone or tablet to swipe a credit card—Amazon payments, and just last week Apple announced Apple Pay—a mobile payment option for the new iPhone 6 and 6 Plus. Your agency needs to begin the process of creating a way for your clients to pay you using whatever payment method they want. Setting up electronic payments is a complex issue. There are many moving parts. The industry needs to address and find a way to accept electronic payments as soon as possible.

To help you understand the complex issues that the industry—agencies and insurance companies—need to address to set up electronic payment options, I have created a white paper titled “It’s Time to Update Your Payment Process.” This white paper will help you gain a better understanding of the payment industry as well as the opportunities we have to accept electronic payments. You can download a PDF copy of the paper by clicking on this link: It’s Time to Update Your Payment Process Consumers are demanding. They want what they want, and they will find a way to get it. Many of your clients no longer even use checks. Agencies of every size need to begin strategizing on the process they will use to be able to accept electronic payments for insurance policies. Consumers are demanding it.

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Your Favorite Flashlight App Can Track You! “Five hundred million people are infected, and they don’t know it, but it’s not them; it’s their smartphones.” ~ Gary Miliefsky, Cyber Security Expert, Founder, SnoopWall. A TechTips subscriber forwarded me an email last week with a YouTube link to a TV news program about infected Android flashlight apps. Click here for the full report (5:40 in length). This article is just a small piece of the puzzle in keeping your (and your organization’s) information safe. The issue that Miliefsky highlights is that some smartphone apps track information about you and take information on your phone and send it to other countries. According to Miliefsky, the top 10 apps today that you can download from the Google Play store are all tracking apps, and there have been approximately half a billion downloads of these apps. Here is what happens. When you install a particular flashlight app on your Android smartphone and hit the ON button, a dialog box appears asking you for access to your personal information, such as your name, address, all of your family photos, contacts and, most important, your credit card/account numbers could all be compromised. These are details you would never want to be sent anywhere. Someone is stealing your information and sending this data to other nations (China, India and Russia). The creator of one of the most popular apps for Android mobile devices has agreed to settle Federal Trade Commission (FTC) charges that its free app, which allows a device to be used as a flashlight, deceived consumers about how their geolocation information would be shared with advertising networks and other third parties: Android Flashlight App Developer Settles FTC Charges It Deceived Consumers. When installing any apps, most people do not read the Terms & Conditions included in the app description on the Google Play Store. They instantly hit the ACCEPT button, allowing their personal data to be transferred. Uninstalling the app will not always solve the problem. The only sure solution is to uninstall the app and restore the factory settings of the device. This is because, even after uninstalling, there are Trojans and malware lurking in the background, waiting for you to access things like your contact list or banking information. Restoring the factory settings will ensure they are removed.

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Suggestions to Protect Your Phone Information • Disable your GPS at all times, except for an emergency or if you need to use your smartphone for navigation purposes. • Disable your NFC (Near Field Communications) for Android devices, or iBeacon on Apple devices, permanently. • Disable Bluetooth at all times, except when you are driving and want to have hands-free calls. • Verify the app's behavior and privacy risk prior to installation. Always try to find an alternative before installing any unsafe/threatening apps. • Use masking tape over your webcam and microphone when you’re not using the device or take out the battery from your smartphone when the device is not in use. Miliefsky has suggested only installing flashlight apps that are 100 KB or under. Any such app whose size ranges between 1.2-5 MB is a questionable application. He also mentions that before performing a factory reset, one should ensure that all relevant/personal data such as contacts, family pictures, etc. (mainly core information) are backed up. This threat is most prevalent in the Google/Android OS. Windows and Apple iOS flashlights might behave in a similar manner. However, the threat is not as great as that of the Android OS. This is because their spying capabilities are limited due to the hardened OS features of Windows 8.1 RT and Apple iOS 7 & 8.

For All That Matters

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Top 12 Development Goals for Leaders

PRINCIPALS

By, Dan MacCarthy SOURCE: Media Buzz I help a lot of leaders create individual development plans using some variation of this process. This time of year (January) is always especially busy. Although every leader I work with is unique, it seems like the development goals end up being somewhat common from year to year. To help you get a head start on your 2015 leadership development plan, here’s a list of development goals that may apply to you too. I’d recommend picking no more than one and really working at it for at least 6 months. Do not attempt to work on all 12, just because there are 12 months in a year. For 2015, I’d like to improve my: 1. Strategic thinking. Improve my ability to see the big picture and take a longer range, broader business perspective. Learn to step back from the day-to-day tactical details of my business and focus on the “why”, not just the “what” and “how”. 2. Listening. Learn to pay attention and demonstrate to others that I value what they have to say. Use active listening, open-ended questions, body language, and eliminate distractions that get in the way of my ability to listen. 3. Coaching. Shift my leadership style away from always directing and telling and learn to guide and develop my direct reports. Work with each of my direct reports to create their own individual development plans. 4. Financial acumen. Learn how to understand, interpret, and use “the numbers” to improve my business. 5. Cross-functional knowledge and perspective. Learn about other aspects of the business other than my own functional silo. 6. Industry, competitive, and customer knowledge. Improve my understanding of our industry and our competitors. Get closer to our customers and find out what they need and value. 7. Leadership presence. Improve my ability to “command a room” and communicate in an authentic way that inspires others. 8. Change leadership. Be more of a change catalyst, a champion of change. Learn to implement and sustain change in my organization.

PRINCIPAL

9. Remote management. Improve my ability to manage my remote direct reports and organization. Make better use of technology to plan, communicate, and collaborate virtually. 10. Collaboration. Improve relationships with my peers. Be a better partner, understand their goals and needs, and learn to work together to help achieve each others goals.

11. Talent management. Improve my ability to assess, hire, promote, and develop. Fill all open positions with nothing but “A” players and replace chronic underperformers. Develop a “virtual bench” for all key positions and a succession plan for my own position. 12. Time management. Get a handle on where I’m wasting time and shift my focus to more value-added activities. Learn ways to work more efficiently and prioritize. Arm your business with best practices that ensure your growth & sustainability. Check out the “Management Tools” section of our website to help your agency run smoothly. www.iianm.org

CUSTOMER SERVICE

Awesome Social Media Ideas for Insurance Agencies marketing. For example, use positive reviews that people post on Facebook in direct or email marketing.

14. Identify the agency employee who is most passionate about social media and put that person in charge of the agency’s social media marketing.

15. Host live Twitter chats so people can ask questions and a dialogue is started. It doesn’t always have to be about insurance. Invite different subject matter experts to answer questions about a variety of topics.

16. Create boards for each line of business on Pinterest

Source: Insurance Journal Social media is a good marketing tool when used wisely. Today’s agencies are creating interaction among fans while developing promotions that generate revenue. The following includes 50 marketing ideas that agencies can use with social media.

1. Be personable. If posts on social media are too sales-y, it will be difficult to get and engage with followers. To many consumers, a hard sell on social media is a turn off. Balance self-promotional posts with posts that are informational, posts that are personable and posts that are helpful. 2. Write regular posts at least once a week, but two to three times a week is even better.

3. Write social media posts on ideas for home improvement, car care and businesses tips.

4. Keep customers engaged. 5. Create fun contests for fans with Facebook. Give prizes, like a gift card, to winners.

6. Post a fact, story or comment relevant to a particular insur-

ance product or market and end the post with a question.

7. Use blog posts to share content and drive traffic to the agency’s website (also helps with search engine optimization) and on social media profiles.

and pin pictures and articles about the topic. For example, if Agency ABC writes motorcycle and boat insurance, they might have a board for motorcycles and a board for boats. They could pin pictures of motorcycles, tips on taking care of a boat, great places for a motorcycle ride, etc.

17. Create boards on Pinterest for what the agency is all about. If it’s a family-oriented agency, share fun stuff and ideas for family activities, recipes for family dinners, etc. If it’s more business-oriented, pin inspiring business quotes, good books on business, technology for businesses, etc. 18. Promote the agency’s referral program. 19. Run a promotion to increase Facebook fans by donating a dollar to a local charity for every new fan on Facebook. 20. Use your mobile website to promote social media profiles. 21. Recognize a fan or follower of the week on the agency’s Facebook or Twitter profile as a way to say thank you.

22. When the agency gets a new follower on Twitter, @ the follower, and say thanks for the follow.

23. Spend one hour a week looking for five articles to

share. They can be about insurance, community news and events, general interest articles about the lines of business the agency writes, e.g., home improvement, car care tips, etc. Schedule the posts for each day of the week using a service like Hootsuite or Tweetdeck.

24. Schedule posts for Saturday and Sunday and after

8. Sign up for Facebook, LinkedIn, Twitter, Google+, Pinter-

hours. Just because the office is closed, doesn’t mean the agency’s followers aren’t reading social media.

9. Like the page and write ‘I love ABC Agency’ on the Wall.

25. Start a community group on LinkedIn and every day

est and YouTube.

10. Profile agency employees and post a photo of them.

CSR

11. Post information about community events and news. 12. Share pictures of the agency’s community involvement. 13. Incorporate what agency fans and followers say about

the agency, owners or employees in social media in other

suggest topics for discussion.

26. Talk about events and holidays and share articles or information that discusses risks associated with those. 27. Post information on education and training events for a particular industry. They do not have to be related to insurance but could be geared toward the agency’s specialty business. www.iianm.org

28. Create polls and surveys for followers and fans on current

39. Have employees participate in the agency’s social media campaign.

29. Post videos and audio periodically on an agency blog, YouTube, Facebook, and agency website.

40. Include social media addresses on business cards and

30. Display the social media channel links on the agency’s website.

41. Target “influencers” including editors, bloggers, consultants and PR pros in the agency’s target markets.

31. Integrate the agency’s Twitter account with its LinkedIn

42. Use Google to identify major trends in the agency’s target markets and tailor comments and questions to those trends.

32. Create a schedule for checking social media and con-

43. Ask for recommendations from LinkedIn contacts to some of their contacts.

33. Don’t just retweet and link to the work of others.

44. Avoid number envy — the quality of contacts is more important than the number of contacts.

events, community news, industry trends and customer service.

account. Find out how in the LinkedIn Learning Center. tent posting; don’t leave it unscheduled.

34. Employ a multi-tweet campaign to plant doubt in the minds of potential buyers. Begin each tweet off with the phrase “When was the last time your family [or business] insurance agent…” Then complete it with a positive action such as “… contacted you with a money-saving idea?” Include a link to a landing page on the agency’s site to convert the person’s doubt into a sales lead.

email signatures.

45. Create and share holiday cards with social media contacts. 46. Don’t be negative or defensive on responding; stay positive.

47. Keep up with changes in social media platforms.

37. Keep postings fresh and timely.

48. Make the agency’s Facebook wall different. Focus on the visual by attaching videos, colorful large print flyers on various insurance topics (formatted as pictures), creative postings designed to elicit comments from fans, such as “Hit Our Facebook Wall with the Cause of Your Worst Car Accident” and other interesting, visual content.

38. Be a participant via sharing, liking and voting; don’t just

49. .Let customers say whatever they want.

35. Buy an ad through Facebook that will go out on the

agency’s network.

36. Don’t ask followers or friends for favors.

sit there.

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January 2015

Click on a class to register: Monday

Tuesday

Wednesday

Thursday

Friday

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Webcast: Employment Law & the Insurance Agent

Jack Cleary

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sts a c web (No CE Credits) Reaching Diverse Customers Marketing Series - Introduction

P&C Exam Review

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Webcast: Webcast: Procedures Employment Law Manual & the Insurance An E&O Overview Agent

L&H Exam Review

Webcast: Comm Property Endorsements that Can Make You $

Reagan Consulting Guides to Training and Perpetuation An Errors and Omissions Mock Trial Business Body Language CSR Essentials - Personal Time Management

Bob Ouellette

CSR Essentials Relationship Management CSR Essentials - Verbal Communication Skills: Phone Etiquette & Client Interaction

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an d

Odds ends Water Detected on Holiday Recovery: Distant NeptuneGet back to work without stress Sized World The search for extraterrestrial life in the universe starts with water. Scientists so far have discovered evidence of water only on larger exoplanets the size of Jupiter, but recently astronomers at the University of Maryland in College Park detected water vapor in the atmosphere of HAT-P-11b, a Neptune-sized world some 122 light years away in the constellation of Cygnus. As reported on the Science News website, scientists analyzed data from the Hubble, Kepler, and Spitzer space telescopes to find the water by looking at the spectrum of light visible when the distant planet’s orbit brought it between Earth and its home star, an orange dwarf. The findings make HAT-P-11b the smallest planet yet known to possess water.

The Most Commonly

See the 100 most commonly misspelled words in the English language, according to the Oxford English Corpus, an electronic collection of 2 billion words that helps show which mistakes are most often made.

The holidays are over, but you may not feel ready to dive back into the grind. Your job (and your boss) won’t wait, though. Here’s how to get past the holiday madness and New Year’s doldrums: • Review your goals. Look back at what you accomplished the previous year. Then spend some time setting new objectives for the coming 12 months. This should help you get charged up for the future. • Adjust your energy level. Log your activities for a few days and identify tasks that waste time and leave you feeling drained. Eliminate what you can, and look for strategies to manage what you’re stuck with. • Set priorities. Look at what’s most important to get done now. Achieving a fresh goal will improve your spirits and remind you of what you’re good at. • Hold a debrief. At the end of your first week after the holidays, review the past few days. What did you accomplish? What remains to be done? What’s up for next week? You’ll be able to make plans in an organized fashion. • Commit to work/life balance. Make one of your resolutions to balance the demands of your job and your personal life more equitably. You’ll be less likely to crash after a holiday if you’re not stressed out before it begins.

Stick to Your Fitness Resolutions One week into the new year and already you’ve chowed down on a dozen brownies and missed going to the gym? Don’t be too hard on yourself, but don’t give up on the diet and exercise resolution either. Keep trying, and remember that you’re human and prone to setbacks. Don’t let a failure to stick to a plan one or two or even a few days derail you from picking up and trying again. Follow this advice: • Be realistic. If you’re trying to drop 20 pounds, don’t try to lose it all in a month. Set your sights on losing no more than a pound or two a week. • Set specific goals. Don’t say you’ll exercise more. Instead, commit to walking 30 minutes during your lunch break three days a week. • Find a partner. You’ll find sticking to your resolutions easier with a mutual support system. Get together with a buddy who’s trying to accomplish the same goals and give each other encouragement and company. • Log your progress. Writing down how much weight you’ve lost, or how many times you’ve gone to the gym in the past week gives you a sense of accomplishment - and the encouragement to keep going. Also, it helps you to track any trouble spots and allows you to find solutions. www.iianm.org

Take your professional liability business to new heights.

PROFESSIONAL LIABILITY

At Burns & Wilcox, our expertise becomes your expertise. Whether it is cyber liability or medical malpractice, EPLI or fiduciary liability, we will ensure your clients avoid any gaps in coverage. Raise the level of your professional liability expertise with Burns & Wilcox. Albuquerque, New Mexico | 505.346.2583 toll free 866.643.8538 | fax 505.822.0092 albuquerque.burnsandwilcox.com 28