February 2015 by Independent Insurance Agents of NM

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CREATED FOR NEW MEXICO BUSINESSES

New Mexico’s Experts in Workers’ Compensation Insurance 3900 Singer Blvd. NE • Albuquerque, NM 87109 • 505.345.7260 or 800.788.8851 •

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“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.

"The Voice" of Independent Agents since 1934

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.

IIANM Events

Legislative Mixer 06 Spring Seminar Extravaganza 07 January’s Clickable Calendar 26

Features

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.

Dues Deductibility 06

Advertising rates are available upon request.

Insurance Programs Administrator Cheryl Weddle Business Strategist Mia Logan Communications Director Rachel Sheffield Member Services Associate Renee Trujillo

National Director Sam Conlee Immediate Past Chair Diana Hobbs www.iianm.org

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How to Position Your Agency for the Future.

VP of Member Services Consuelo Trujillo

Secretary/Treasurer Mike Parisi

Should the Agency Receptionist be Licensed?

Industry Tidbits 17

President/CEO Thom Turbett

Vice-Chair Connie Sevier

How Much Data Can Your Agency Afford to Lose?

IIANM Staff

Chair Gabe Portillo

Heads Up! Uber Steering Drivers to Get Personal Coverage

Creating Achievable Goals & Objectives 15

Please contact Rachel Sheffield at rachel@iianm.org for details

2014-2015 Officers

VoZ 19

Leadership is About Emotion 23 The Value of Making Mistakes 24

In Every Issue IIANM 2015 Company Partners! 04 IIANM Event Calendar 08 Snap Shots 09 Tech Talk 20 Odds n Ends 25

Advertiser Index Acuity 07 Burns & Wilcox Back Cover Litchfield Special Risks

Market Finders, Inc. 22 Molina Healthcare 18 Mountain States Insurance Group

New Mexico Mutual 02 Union Standard 12 Click here to reserve advertising space in an upcoming issue of La Voz magazine.

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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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

YOU BE THE JURY!

SEM

INAR Brought to you by:

Join us on the second day of seminar, March 26th at 1:00pm for a MOCK TRIAL of a real life, high profile case involving the Cowboy Stadium. Life & Health class list and registration will be available soon. Property & Casualty Class List March 25 - Morning Class 8:00 - 9:00am / General Session (Everyone attends) 9:00 - 12:00pm / How to Get Your Agency More Attention Online 9:00 - 12:00pm / Commercial Crime March 25 - Afternoon Class 1:00 - 4:00pm / Engaging a High Performance Workforce in Your Agency 1:00 - 4:00pm / Liability for Contractors 1:00 - 4:00pm / Legislative Update

BREAK EXHIBITORS Click here for your exhibitor registration form

4:00 - 5:00pm / Ethics Day 1 March 26 - Morning Class 9:00 - 12:00pm / Directors & Officers Sponsored by 9:00 - 12:00pm / Homeowners March 26 - Afternoon Class 1:00 - 4:00pm / Mock Trial

For special room rate of $115/night, call Sheratonâ&#x20AC;&#x2122;s central reservations line at (800) 325-3535. Deadline is March 3, 2015 This seminar is made possible by these sponsors:

4:00 - 5:00pm / Ethics Day 2

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Independent Insurance Agents of New Mexico

2015

LEGISLATIVE MIXER February 5th, 2015 5:00pm

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

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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For All That Matters

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facebook.com/acuitywow

February 2015

Click on a class to register: Monday

Tuesday

Wednesday

Thursday

Friday

Webcast: Employment Law & the Insurance Agent

sts a c web

2CE

P&C Exam Review

(No CE Credits) Reaching Diverse Customers Marketing Series - Introduction

Kitty Leslie

e c i f f O osed Cl

Webcast: Procedures Manual 1, 2, 3 â&#x20AC;&#x201C; An E&O Overview

L&H Exam Review

An Errors and Omissions Mock Trial

Jeff Straight

3CE

Reagan Consulting Guides to Training and Perpetuation

Business Body Language CSR Essentials - Personal Time Management CSR Essentials Relationship Management CSR Essentials - Verbal Communication Skills: Phone Etiquette & Client Interaction

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INDUSTY ISSUES

Personal Lines Market Share: 1995 - 2012

Several key shifts are noticeable in the chart to the right, which covers 18 years of data: • While captive agency carriers continue to control approximately half of the personal lines market, this is down 8.3 percentage points from their market share in 1995 of just below 60%. However, most of this decrease occurred in the 15-year period between 1995 and 2010, and captive market share has bounced between 50% and 52% since. • Regional IA carriers now enjoy 7.5 percentage points more market share than in 1995, but this shift also occurred primarily between 1995 and 2010. Since then regional carrier share has bounced between 25.1% and 26.1% and is now approximately halfway between those marks.

• Direct response writers have doubled their market share, climbing steadily from 7.1% in 1995 to 14.4% in 2012.

PRINCIPAL

The IIABA Market Share report has consistently looked at this data over the long term to find macro shifts affecting independent agents. A look back to 1995 - when IIABA began reviewing the A.M. Best data - shows that the direct response channel and regional independent agency carriers have grown at the expense of captive carriers and national IA companies.

• The market share of national IA carriers has dropped more than 6 percentage points since 1995, although that decrease appears to have slowed since 2010.

For more information, click here to access the full report.

Welcome.

Looking to dominate your insurance market? You’ve come to the right place. NEW MEMBER RESOURCE! Register to get free access to material on sales, marketing and automation processes impacting the insurance business.

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CLIENT COVERAGE

Heads-Up! Uber steering drivers to get personal coverage At a presentation for would-be Uber drivers, a company representative advised getting less-expensive “personal” insurance that can leave drivers uncovered and in some cases lead them to incorrectly register their cars in violation of the law. Uber is steering drivers to purchase auto insurance that leaves them uncovered when they’re trolling for fares and that often forces them to flout the law by lying when they register their automobiles, according to documents, interviews, and an Uber presentation attended by a BuzzFeed News reporter. Uber drew current and would-be UberX drivers to a Los Angeles, Calif. auto dealership with the promise of an opportunity to get a new car through its financing programs. More than a dozen men and women attended the session – including a reporter from BuzzFeed – one of many that the company has been holding around the country in recent months. As Uber employee Alanna Nass clicked through a PowerPoint presentation, a would-be driver asked what insurance is required for UberX.

By, Benjamin Lane SOURCE: Buzzfeed through Insurance Business America drivers, and auto dealers. Working with lenders, Uber has developed leasing and loan programs that have guided drivers to register Uber vehicles for personal use only.

The transit giant has been advising California drivers interested in its low-cost UberX service that personal, rather than commercial, insurance is sufficient to fully cover them and their vehicles. But insurance companies insist that’s not the case, and they have refused to pay when Uber drivers have gotten into accidents while on the job. In some instances, Uber’s secondary insurance doesn’t cover drivers either, effectively leaving them on the hook for medical bills and car repairs.

The DMV says that is improper.

PRODUCER

Nass was unequivocal. “You don’t need commercial insurance,” she said. “When you’re on an Uber trip, you’re covered by us.”

There’s another problem: To qualify for a personal insurance policy in California, a car must be registered with the Department of Motor Vehicles as being for personal use, not commercial use. To get personal insurance, drivers purchasing new vehicles they plan to use for UberX often lie on official state forms that ask whether the vehicle will be driven commercially, according to registration documents,

“There’s not a shade of gray on it,” Andrew Conway, branch chief of registration policy at the DMV, told BuzzFeed. “If you use the vehicle for commercial purposes, even occasionally, it has to be registered as commercial.” He added that anyone who registers Uber cars as personal vehicles is “making a false statement on the report of sale, knowingly.” Insurance is one of the biggest issues at play in the ballooning ridesharing business. Uber, the industry leader, now operates in 53 countries, providing upwards of a million rides per day as it competes with traditional taxi and limousine services, as well as other mobile-app-based services such as Lyft.

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Virtual University’s Ask an Expert

ulty

VU Fac

should the agency receptionist be licensed?

"I have a receptionist who is not licensed and her job is to open mail, answer the telephone, do the daily mail, and direct clients to the CSRs. She will also take direct bill payments from clients and will direct them to the company either by mail or EFT transfer. She in no way discusses coverage with clients or rates policies. My question is does she need to be licensed to take payments from clients." This is a common question and one that has both regulatory and practical answers. As indicated below, your state insurance regulations will probably determine whether this person is required to be licensed. Whether it's a good idea otherwise depends on several factors.

FACULTY RESPONSE That would probably best be answered by your state association, since licensing laws vary by state. However, one advantage of licensing is that if the receptionist's job changes in the future and she does discuss coverage issues with an insured, she's "legal." On the other hand, forcing a non-technical person to obtain a license she may never need could cost the agency a good employee, given the difficulty of sitting in pre-licensing classes and taking the test. Seems this decision partly depends on what the agency management sees in her future at the agency. FACULTY RESPONSE I think it really depends on the state administrative law. Your state association is the best one to answer this. In Illinois, the position would not need a licensed individual. FACULTY RESPONSE Most states won’t require a receptionist to be licensed. But most laws do say anyone who discusses coverage should be licensed. Unfortunately, when people make their payments late one of their questions is, “Am I covered?” If the receptionist answers that question, rather than directing the person to a licensed CSR, they could be acting as an agent without being licensed. Since licensing laws and enforcement of them vary from state to state, it’s always a good idea to check with the state insurance department. FACULTY RESPONSE I doubt it but the agent should check with the insurance department to make sure. FACULTY RESPONSE First, review your state licensing requirements. They may require a license.

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Second, billing matters and disputes over communications (messages for agents, etc.) are frequent sources of E&O disputes. If the person isn't licensed, you may need to very carefully limit their activity. FACULTY RESPONSE Often one of the lowest paid, yet most important, positions in an agency is the receptionist. She is typically the first point of contact for prospects and customers. Her demeanor, personality, and communication skills can make or break an account. It is not unusual for agencies to lose customers because of a surly, incompetent, or ignorant-sounding receptionist. A really great receptionist is a potential sales or service candidate...you can teach insurance, but you can't teach personality. Send her to licensing school. It will probably make her a better employee. Plus, if she finds it interesting, you could have someone who can make the natural progression into sales or service, at least in a back-up capacity. It also sends a message to her and the entire office just how imporant you think education is and how committed you are to the professional development of your staff. If you have a good communications workshop in your area, send her to that as well. FACULTY RESPONSE You should contact your state insurance department and obtain a clarification. If in doubt, it’s always best to have all employees licensed, especially if they fill in temporarily for other licensed employees or want a promotion that requires a license. Note: In New Mexico, a receptionist is not required to be licensed, given the scenario listed in this article. Click here to view IIANM Pre-Licensing Course Calendar. We have the resources to help you pass the test!

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Multi-Line-Brokerage-Umbrella

■ Scottsdale Insurance Co. ■ Endurance American Specialty ■ Strickland Insurance Group ■ USLI ■ Century Insurance Group ■ Essex/Markel ■ Heath XS ■ Seneca Insurance Company ■ Admiral ■ Cover X ■ Great American ■ RSUI

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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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MANAGEMENT

Creating Achievable Goals & Objectives By Al Diamond

Every year Agency Consulting Group, Inc. helps agents create and implement their Tactical (Annual) and Strategic (Long Term) Plans for progressing their agencies’ growth and profitability. And, until an agency has planned for several years, the problems always involve ‘disconnects’ between long range goals, next year’s goals (the agency’s Objectives) and the activities that agency staff does every day to achieve those goals (Action Plans). Like magic, once the participants see the light and understand what they do on a daily basis impacts the agency’s annual performance as well as their own compensation, Long Term Goals seem to mesh with Annual Objectives and the staff clearly sees the difference between Objectives and Action Plans. Until that moment is reached, agency staff tends to lean toward activities instead of objectives and this muddies, rather than clears, the path to success. Strategic Goals for a business define where it wants to be after several years of development. Annual Objectives define what the business must do in a single, significant area of performance by the end of the year in question in order to progress toward its long term strategic goals. Action Plans are activities, the conduct of which will likely permit the achievement of the objective. Benchmarks are the monthly measuring stick that estimates a measurable point at which the results should be each month if the action plan has been implemented and is working properly for the stated Objective.

Action Planning without first creating ROAM (Realistic, Objective (rather than subjective), Achievable and Measurable) Objectives are like shooting arrows with a bow one after another without having a target at which to shoot. Yes, you may be fast on the draw, but you may lose all your arrows and you have no idea where they are going to land. A really stupid game we used to play at camp when the counselors weren’t looking was shooting an arrow as close to straight up as we could and then scurrying about trying to avoid being hit by the descending projectile. The best I can say about that practice in my youth is that the surviving members of our little band of idiots are now quite successful at each of their trades. But the reality exists that launching an arrow without knowing where it is going to land is both foolhardy and a wasted task. And so is www.iianm.org

The second thing that takes many individuals and groups years to comprehend is that they form a much greater mind-pool combined than any one of them do individually. Every Objective gets an “owner.” That owner is not expected to complete the Plan or Action Plans on their own – they are just expected to manage the process to the end that every Objective is clearly stated and carries achievable Action Plans and reasonable Monthly Benchmarks. Yet for the first several years, each participant or each group feels that it is a personal failure if they can’t create workable Action Plans or Benchmarks without outside help. In fact, without asking others within their organizations whether it be the owners, managers, other staff members or asking outside the organization the consultants and other advisors for their input and feedback, they are doomed to repeat the same results achieved previously with only slight variations in ideas that they believed were viable in prior years. So if the results were not exactly what they desired, the new results were just as likely to fall short of desired levels. The answer is to form the Objectives and validate them with as many people outside of the work circle as possible. Once you are comfortable that all involved buy into the Objective as reasonable (qualifying for all the ROAM criteria), then create whatever Action Plans you or your team can establish as likely to achieve the objective. Whether you can innovate to new action plans or not, test them with managers, owners and other staff members and counselors long before proposing them in the Strategic Planning meeting. Change and polish them until everyone you ask feels that the Action Plans a) can be done, b) will likely achieve the results in the Objective, and c) are properly cost-justified (how much with it cost vs. the benefit).

PRINCIPAL

The two greatest problems with most beginner planners is 1) creating action plans without knowing the objective, and 2) assuming that they have to create their own action plans without help when they have spent years not achieving goals through those same activities.

creating and implementing action plans without having solid Objectives at which to “shoot” the action plans.

This creative effort using ALL available resources give the Objective owner confidence in the reasonability of the Objective, Action Plan and Benchmarks and creates a feeling of synergy in an organization that has previously thrived on individual performance and blame. We are ALL involved in the success of the agency and we all drown if there is a hole in the ship – even if the hole is not in our compartment. Most agencies don’t foster synergy and sharing. Mature strategic and tactical planning fosters that and eliminates the defensiveness encountered in most small, closely held businesses.

Big“I”Tip

IIANM has a great strategic planning resource! Contact Mia for information.

E&O

How Much Data Can Your Agency Afford to Lose?

Study shows 93% of small businesses that have major data losses are out of business in five years. Plan now for the worst case scenario.

By, Bob Chaput

Imagine your worst nightmare. A server overheats, starting a fire that consumes your computer room before the sprinkler system kicks in and completes the disaster process. You’ve lost facilities, hardware, network and data. Now what? There are four primary assets needed to effectively operate an information system – facilities, hardware, network and data. In the unfortunate event of a disaster, hardware and networks can be replaced, and facilities can be moved to a new location. In fact, with the exception of data, virtually every company asset can be replaced. Therefore, your top priority should be to protect the asset that’s most at risk and hardest to replace: your data. Businesses need to strike a balance between the level of business risk they can tolerate and the cost of perfect security. Initially, all businesses would say they can’t afford to lose any data and they can’t tolerate any downtime. But protection on that scale is probably cost-prohibitive and overzealous. It’s unlikely that all applications are equally mission-critical and all systems are equally vital. Gartner Group research found that 93% of organizations that have experienced a significant data loss are out of business within five years. Businesses should look for a solution that incorporates the following four components:

PRINCIPAL

Requirement #1: Continuous Backup Only half of U.S. businesses perform data backup, and surveys find these businesses do not always do an adequate job. Because some agencies have limited or no IT staff, they perform bulk server backup sporadically, use traditional tape for backup and typically perform the task after business has closed for the day. That means to restore data, companies can only expect to recover from the previous night. How can you eliminate this window of vulnerability? Ask your provider for continuous backup that allows data to be captured as it is changed – essentially in real-time. Requirement #2: Automatic Off-site Storage Even if your business is rigorous about backup, are you equally rigorous about ensuring that the tape is safely stored offsite? Look for a service that provides safe and accessible data-vaulting, and transmits the data via the Internet, so physical damage to tapes or theft of tapes is avoided entirely and the data is immediately available for system recovery.

Requirement #3: Immediate Recovery Recovery is the process of restoring operations and specifically, data, after an outage or disaster. It’s an obvious point, but often overlooked: being able to immediately recover data is critical to ensuring business continuity. Online services provide a means of recovering data immediately from any Web interface. Look for a service that offers this level of convenience and control. Requirement #4: The Guarantee Backup and recovery software vendors will have RTO* and RPO* ranges within their service level agreements, but none will provide an absolute guarantee because there are too many elements outside of their control, like tape quality or the ability of the internal IT staff. Online backup and recovery services, however, are able to provide the luxury of a guarantee because the entire process is managed by experts at the service provider, and the technical components of the service are fully automated. When evaluating any backup and recovery solution provider, make sure to ask if it guarantees the recovery, rather than just the backup, of data. Establishing business continuity metrics such as RTO and RPO is critical in business continuity planning. Devoting attention to RTO and RPO is the only way to guarantee your agency will still be able to operate in the event of a disaster. After all, when it comes to disaster recovery planning, do you want your business up and running quickly, but operating with data that’s a week or even a day old? Bob Chaput (rchaput@amtechgroup.com) is president of American Technology Group, Inc., a disaster recovery and data protection services firm. *’RTO’ or Recovery Time Objective is the amount of time the business can be without service. *’RPO’ or Recovery Point Objective is defined as the maximum targeted period in which data might be lost.

Big“I”Tip ACT has provided agencies a Prototype Security Plan for you to download to safeguard the personal information of your agency’s clients

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FREE WEBINAR - NARAB II A Practical Guide for Big “I” Members (How the new national producer licensing system will work) Big I government affairs staff will be conducting a webinar on NARAB II entitled “NARAB II: A Practical Guide for Big I members.” The webinar will take place on Monday, February 9 at 3:00 p.m. EST. There is no cost to participate in the webinar, it will be capped at 1,000 participants, and it will be limited to Big I members only. Please register at: https://attendee.gotowebinar.com/register/4015560864773358338

Menicucci Insurance Agency and Reynolds Insurance both made Albuquerque Business First’s List of “BEST PLACES TO WORK” ~Great job guys!!

After registering, you will receive a confirmation email containing information about joining the webinar.

IIANM Staff Loves the MEP!

Also, Farmington Chamber of Commerce presented AVI Risk Management and Insurance Brokers with the chamber's Business of the Year award. AVI was given special praise for its generosity to charity and to children in San Juan County, most notably the Special Olympics. Congrats AVI!

IRS RAISES STANDARD MILEAGE RATES: The IRS this week issued the 2015 optional standard mileage rates used to calculate tax deductions for operating a vehicle for business, charitable, medical or moving purposes. Beginning on Jan. 1, the standard mileage rates will be 57.5 cents per mile for using a vehicle for business purposes, up from 56 cents in 2014. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. Mileage rates for using a vehicle for medical or moving purposes will be 23 cents per mile, and the rates for miles driven in service of charitable organizations will be 14 cents per mile. Taxpayers always have the option of claiming deductions based on the actual costs of operating their vehicle rather than the standard mileage rates. www.iianm.org

Are you aware that the Big “I” sponsors a MEP (Multiple Employer Plan) for its members? About two years ago, the Big “I” started the journey by forming Big “I” Retirement Services, LLC, which harnesses the collective size of the association’s membership and economies of scale by sponsoring a member-only 401(k) program utilizing an MEP. (IIANM joined the Big I MEP this past fall and can attest that it rocks!) The MEP provides flexibility for each agency to offer a plan design that can include a profit-sharing component and/or a 401(k) provision with matching employer contributions, a vesting schedule, loan provision, Roth feature and more. It’s unique in that it is considered one plan but also provides for each employer to tailor their options, utilizing a common provider platform. The Big “I” 401(k) MEP includes a number of investment options, utilizing index funds and Prudential’s Stable Value Account, a predetermined guarantee of principal and interest. The custodian is Schwab, one of the largest in the country, and the administrative services provider is MVP Administrators. The Big “I” MEP also provides assistance with Social Security claiming strategies for older employees and uses an ERISA 3(38) investment consultant—Mesirow Financial— to review the plan investment options, greatly reducing investment exposure from a fiduciary standpoint for participating agencies. Since the MEP is actually one plan, it files government forms on behalf of all plans (such as IRS Form 5500), is subject to external audit and eliminates the need for an ERISA fiduciary bond. In the face of rising income taxes and national recognition of a retirement savings problem, the Big “I” 401(k) MEP is an efficient way for agencies to meet the needs of their employees while reducing their fiduciary exposure. For more information, contact Christine Muñoz at 800-221-7917, ext. 5466. - See more at: http://www.iamagazine.com/viewpoints/ read/2014/12/18/legislative-action-puts-spotlight-on-retirement-plans#sthash.aIsDrt4r.dpuf

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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SALES

Has the Internet Changed Us All? How to Position Your Insurance Agency for the Future by Paul Martin The other day I was having a conversation with an independent agent about the changes we’re all seeing with customers. We agreed that consumer behavior is glaringly different from 15 or 20 years ago in many important ways. The internet has changed us all it seems. We have grown accustomed to instant access to every imaginable picture, video, or piece of information. We now are available to friends and family (and expecting others to be) via our phones 24/7. And, we’re getting more and more comfortable connecting with people and businesses through our computers instead of in person. Are we and our relationships with others actually being changed by all this? Are these trends something we would stop if we could? How will we need to adapt and still be consistent with my personal and business values?

had a quick moment of panic realizing you left your phone at home and your already half way to the store? When did it become a crisis to have to be out of communication with your network of friends and family for an hour during a grocery store run? I love reminding younger people that we used to drive half way across the country in our cars, with no phones. We’d call when we got there, if we called at all. But I’ll admit it, I do it too. I have it with me all the time. I noticed the other day thinking about these issues that I hadn’t turned off my phone in weeks. I had it on me, by me, or on the nightstand for over a month, ever ready to react to a ring, a chirp, or hum. Some agents may feel that if the old way dies, then they too are obsolete 300This connectedness does have advantages. Having the phone on the grocery run can save the day on that one more thing that Momma needs from the store without making another trip. Phones are terrific tools in case of an emergency or if we simply need directions. And in so many ways, smart phones add flexibility to our work and personal lives. But isn’t this really odd?

The Internet Has Changed Us

Are we really that dependent on these little boxes of plastic? Maybe, I don’t know, but the trend is there for all to see.

One way consumers are different today is that everybody, and I mean everybody, has the internet, and they use it all day long, both at home and on the move. So much is coming to us through the internet that it is impacting our impressions of people and businesses, our awareness of brands, our decision making, and even our awareness of what’s happening in the world.

Consumers are plugged in all the time and they are getting the bulk of their communications via their phones. As business owners, how should I be adapting to this new world?

I recently asked my college age son how he gets his news. He replied listing off several websites, but added, “But Dad, I never watch television.” And after observing his behavior while at home on his semester break, he told me the truth. No TV. And I suppose that will be normal for many of his generation. But, if I’m a business owner today and this fastest growing customer demographic -this no TV, no printed anything group – how do I get in front of them with my message in the future, and how will I introduce myself? This isn’t something that’s coming, it’s here. It’s not a fad. It’s not going to pass.

Do I have their mobile number? Do they have mine? Am I accessible as they want me to be?

Positioning Your Agency for the Future

As the consumer’s life become more centered on their connection to the internet, will the old ways of building relationships becoming obsolete? Some agents may feel that if the old way dies, then they too are obsolete.

But today, they are faced with a dilemma – how do I use my relational talents in an environment I don’t understand very well.

The Constant Connection Being constantly connected through our phones has been another dramatic way we’re all changing. Have you ever www.iianm.org

PRODUCER

These questions are ones that insurance agents, and others whose business is relationship based, will be grappling with for many years to come.

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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!)

Easily Manage Expenses with Expensify I travel a lot, so managing expenses has always been essential. Up until recently, my system included a physical envelope where I would place receipts for every trip. Once back at my office I would scan those receipts, create an expense report using a desktop application, print the report as a PDF document, and forward that along with an invoice to the client for payment. That system worked well for a long time. However, earlier this year I transitioned to an online expense management program – Expensify. This expense management platform has significantly reduced the amount of time I spend managing my expenses. It may help you, too. There are multiple ways to add receipts and expense information to the platform and a particular report: • Manually on the Expensify website. The site is mobile responsive, so it works quite well on a tablet device. You can also drag a scanned image of the receipt onto the website to have it automatically uploaded. • Using the free mobile app (for iOS and Android platforms), you can take a picture of the receipt and manually add information about the merchant, amount, and the particular report it should be assigned to. • SmartScan provides the ultimate hands-free experience. You simply take a picture of the receipt or upload the receipt to the website and the SmartScan process will read the receipt and automatically enter the merchant’s name, transaction date, and the transaction amount. Using this information, SmartScan will create a new expense item.

button. The report has an excellent format that includes all receipt images. I then attach this PDF to an email and forward it to the client for reimbursement. If you use Evernote, you can link Expensify with your Evernote account. The completed receipt is automatically added to a separate Evernote notebook for long-term storage. You can also add receipts to your Evernote Expensify notebook, and those receipts will be automatically imported into the Evernote platform. The Individual version of the platform is free. This version is a great way for you to test the platform to see how well it will work for you. The Team version is $5 per month per active user (an active user is someone who submits at least one expense in that month). This version also includes an expense approval process. I now keep track of all my expenses — business and personal — on the Expensify platform. For personal expenses, I simply create a report for each month and take a picture of the receipt and attach it. Once I close that month’s report, it is transferred to my Evernote notebook where I can search for the specific information on the receipt if I need to view it later.

• Directly from bank and credit card accounts. Expensify offers guaranteed eReceipts for expenses imported directly from a bank or credit card account. These are full digital replacements of their paper equivalents for purchases under $75 and, as a plus, are accepted by the IRS. • You can also manually add an expense including mileage and time billing expenses on the website and/or the mobile app and assign them to a specific report. Once you have added all expenses for a particular trip or event, you can create a PDF file with just a click of a

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Answers to Your Insurance Technology Questions I constantly receive questions from a variety of different people: agency owners, agency sales staff, agency internal staff, state associations on behalf of their members, insurance company personnel, and technology vendors. A few of the more recent questions I’ve received include: • “Do you know of a good cross-platform calendar that is better than Outlook and iCloud?”

tions than I would if I was just typing out my response. • Provide a website resource where others with the same question can quickly and easily search for the answer. • Each show’s notes will allow me to provide additional resources and links that I mention in the show to make it easier for anyone to access the information.

The Format of GYA GYA will be short. Right now I am estimating each episode of the show will be between 10 and 20 minutes long depending on the complexity of the question.

• “I have decided to move from my current vendor. What agency management system platform should I consider?”

I listen to quite a few on-demand audio programs (podcasts), and I find the ones I actually listen to are less than 30 minutes long. I just don't have the time to listen to longer programs – and I do not think you do either.

• “What is the best way to document the client file when they prefer to use text messaging?”

Want to Submit a Question?

• “I just finished reading your page on a virtual agency and found it very informative. We would like to learn more about a virtual agency and how to start one. Could you provide any info or links on how to start this type of agency?”

It is easy to ask me a question. All you have to do is go to GladYouAsked.SteveAnderson.com and fill in the form you find on that page. While there is no guarantee that I will be able to answer your question, my goal is to get to as many as possible.

• “Some agency personnel believe we should share Word documents with all of our company login credentials listed with everyone in the agency. I have always understood that for user-specific user IDs and passwords, those were not meant to be shared with others. What is the correct protocol for sharing or protecting user IDs and passwords for the companies we are contracted with?”

You will be able to find all of the episodes for this show along with any show notes at the same site: GladYouAsked.SteveAnderson.com. I look forward to answering your insurance technology questions...

These questions are sent to me either via a voice mail message or, more likely, an email. I try to respond via email (or a short phone conversation) as soon as I am able. Unfortunately, answering the question can take some time depending on the projects I am working on and my travel schedule. Moreover, when I answer a question via email, others who may have the same question cannot benefit from my answer and the information I am able to provide. So I decided an audio program (also known as a podcast) would be a perfect way to solve these problems. The title of the show — Glad You Asked — came from a long-running column in my premium newsletter "The Anderson Agency Report" where I addressed the same types of questions from my subscribers. My hope is the Glad You Asked Show will provide a solution to several problems: • Allow me to answer your insurance technology questions in a format where I can provide more details and explana-

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Representing some of the most financially strong and innovative insurance companies in the specialty marketplace

“FINDING MARKETS FOR THE AGENTS OF NEW MEXICO SINCE 1977” WE THANK YOU FOR YOUR BUSINESS!!

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Commercial / Public Auto General Liability Property / Vacants Garage / Dealers Liquor Liability Special Events Inland Marine Directors & Officers Liability Professional Liability / E&O Commercial Umbrella Watercraft / Motorcycles / ATVs Personal Umbrellas Homeowners Mobile Homes Dwelling Fire / Vacants New Mexico’s Locally Owned Managing General Agency

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5201F Venice Ave NE - P.O. Box 90280 Albuquerque, NM 87199-0280 (800) 530-8711 (505) 822-8711 Fax: (505) 822-1165 www.marketfindersnm.com

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Leadership is About Emotion Make a list of the 5 leaders you most admire. They can be from business, social media, politics, technology, the sciences, any field. Now ask yourself why you admire them. The chances are high that your admiration is based on more than their accomplishments, impressive as those may be. I’ll bet that everyone on your list reaches you on an emotional level. This ability to reach people in a way that transcends the intellectual and rational is the mark of a great leader. They all have it. They inspire us. It’s a simple as that. And when we’re inspired we tap into our best selves and deliver amazing work. So, can this ability to touch and inspire people be learned? No and yes. The truth is that not everyone can lead, and there is no substitute for natural talent. Honestly, I’m more convinced of this now – I’m in reality about the world of work and employee engagement. But for those who fall somewhat short of being a natural born star (which is pretty much MANY of us), leadership skills can be acquired, honed and perfected. And when this happens your chances of engaging your talent increases from the time they walk into your culture.

By, Meghan M. Biro SOURCE: Forbes

PRINCIPALS

Contextualize. Great leaders respond to each challenge with a fresh eye. They know that what worked in one situation may be useless in another. Before you act, make sure you understand the specifics of the situation and tailor your actions accordingly. Let Go. Too many people think leadership is about control. In fact, great leaders inspire and then get out of the way. They know that talented people don’t need or want hovering managers. Leadership is about influence, guidance, and support, not control. Look for ways to do your job and then get out of the way so that people can do theirs. Honesty. Not a week goes by that we don’t hear about a so-called leader losing credibility because he or she was dishonest. Often this is because of pressure to try and “measure up” and it’s not coming from a place of being real – often this relates to fear of not being accepted for your true self. We live in age of extraordinary transparency, which is reason enough to always be true to your core – your mission will be revealed, your motivations will show by your behaviors. But it goes way beyond this. It’s an issue that sets an example and elevates an organization. If you have a reputation for honesty, it will be a lot easier to deliver bad news and face tough challenges. Are you inspiring people from your heart?

English: Robert Plutchik’s Wheel of Emotions (Photo credit: Wikipedia)

Let’s Take A Look At Tools That Allow For Talent To Shine: Emotional intelligence. Great leaders understand empathy, and have the ability to read people’s (sometimes unconscious, often unstated) needs and desires. This allows them to speak to these needs and, when at all possible, to fulfill them. When people feel they are understood and empathized something, they respond PERIOD and a bond is formed. Continuous learning. Show me a know-it-all and I’ll show you someone who doesn’t have a clue about being human. Curiosity and an insatiable desire to always do better is the mark of a great leader. They are rarely satisfied with the status quo, and welcome new knowledge and fresh (even if challenging) input. It’s all about investing in yourself.

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PRINCIPAL

Kindness and respect. Nice leaders (people) don’t finish last. They finish first again and again. Ignorance and arrogance are leadership killers. They’re also a mark of insecurity. Treating everyone with a basic level respect is an absolute must trait of leadership. And kindness is the gift that keeps on giving back. Of course, there will be people who prove they don’t deserve respect and they must be dealt with. But that job will be made much easier, and will have far less impact on your organization, if you have a reputation for kindness, honesty and respect.

Collaboration. People’s jobs and careers are integral to their lives. The more your organization can make them a partner, the more they will deliver amazing results. This means, to the greatest extent possible, communicating your organization’s strategies, goals and challenges. This builds buy-in, and again is a mark of respect. People won’t be blindsided (which is a workplace culture killer) by setbacks if they’re in the loop. Leadership is both an art and a science. These tools are guidelines, not rigid rules. Everyone has to develop his or her own individual leadership style. Make these tools a part of your arsenal and use them well as you strive to reach people on an emotional level. Be Human. This Matters

Big“I”Tip Getting your employees involved in our NextGen program is a great way to enhance their leadership & business strategy skills!

CUSTOMER SERVICE

The Value of Making By, Chris Burand

What's the best thing you can do to make your customers happy? Screw up! Yep, that's right, make a mistake... then fix it. According to one study, customers who had experienced a problem that was then quickly resolved to their satisfaction were happier than customers who never experienced a problem. Here's how you can capitalize on this premise.... In Fortune magazine, Michael Schrage wrote a very interesting article titled "Make no mistake?" He wrote about how customers are more satisfied by companies that fix mistakes than by companies that make no mistakes at all. His example was that of a hotel. The hotel discovered that its guests enjoyed everything going well, but that when something went wrong, they were even happier to see the hotel make things right, quickly and efficiently. He wrote, "Guests who had experienced a problem that was quickly and politely resolved rated the hotel service higher than guests who had had no problems at all. What's more, more guests with happy resolution of their hassle said they were likely to recommend the hotel than did the trouble free guests." The hotel is now trying to identify what kinds of problems they can inflict upon their guests (provided they can fix the problem immediately). This is an incredibly enlightening discovery! Mr. Schrage explained the situation extremely well. Customers do not want hassles. They want everything perfect but they realize they do not live in a perfect world. Therefore, customers give high marks to companies that handle mistakes in a prompt, courteous manner. In many situations people expect problems so a company's ability to handle those problems is often even more omnipotent than total quality. In other situations, total quality prevails. For example, people prefer their new cars never breakdown because getting them repaired is a major inconvenience. Therefore, original quality is key because the expectation is that new cars should not break.

CSR

I am not suggesting to purposely sell customers the wrong coverage only to pay losses out of our own pocket when a claim occurs (though many agencies occasionally do this). This is one area though where insurance agents have an advantage over most all other businessesâ&#x20AC;&#x201C;not because

insurance companies make so many mistakes issuing policiesâ&#x20AC;&#x201C;but because customers often do not pay attention to their insurance until a claim occurs and then, the claim can serve as a proxy for a mistake. Are customers who never have a claim, never have a billing problem, and therefore never get to enjoy an agency's great service likely to rate the agency as high as customers who have a claim and receive first class service? If you service your own claims, this is a great opportunity to shine and make a long-lasting, positive impression on your customers. This option though is not available to all agencies because many agencies do little with claims. They turn over all claims to their companies. In many cases, customers contact the carriers directly. This makes a lot of financial sense but it means agents must find alternative ways to impress their customers. Fortunately, most insurance customers do not expect much from their insurance agent (in this area), so the opportunities to exceed expectations are ample. Here are some ideas that firms, other than agencies, have already implemented. 1. One accounting firm offers a service for helping homeowners recover from losses, rebuild, collect claims, and get emergency housing and clothes. They do this on their own initiative. They do not depend on the insurance company to take action. Do you lead or follow the insurance companies when taking care of your customers? 2. Another firm sends flowers to their personal lines clients that have auto accidents resulting in injury. What do you do for your clients whom experience a loss? 3. Other firms have arranged contingency plans with professionals such as grief counselors, public relations firms, and disaster recovery experts to help their commercial clients when they have employee deaths, public relation issues, and other disasters. These types of perks are cheap and some are free. Yet almost no agencies do anything like this. We know customers want to feel special, we know they want to be cared for when claims arise, and we know they are likely to refer more people after expertly fixing a problem than if nothing happens. What are you waiting for?

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an d

Odds ends Groundhog Day, Feb. 2. Will the groundhog see its shadow and go back to sleep for six weeks, or will spring come early this year?

Tortoises make their way back from extinction

Finding the right path at any age Helping employees succeed in their chosen careers can be tricky when they can’t figure out what they really want to do with their lives. It’s a gift when managers get the opportunity to direct people who seem to have known what they wanted from birth—like these early bloomers: • Stage and screen star Mickey Rooney made his vaudeville debut before his first birthday. • Mathematician Michael Tan began working on his bachelor’s at New Zealand’s Canterbury University when he was 7. • Horror-film king Boris Karloff launched his monstrous career at age 9, playing the Demon King in a children’s production of Cinderella. • Inventor Thomas Edison set up his first basement laboratory at age 10. • Director Steven Spielberg was 12 when he began making short films using his father’s 8mm Kodak camera. It can be more challenging to nurture the careers of employees whose best destinies seem to elude them year after year. When you get frustrated by workers who struggle to find their direction, just remember: • Former Philippines President Corazon Aquino was 53 when her husband’s assassination prompted her to give governance a try. • Confucius was 56 when he decided to abandon politics, resigning as prime minister of the state of Lu to become a wandering teacher and philosopher. • Clara “Mother” Hale was 64 when she became foster parent to the baby of a heroin addict, leading her to found Harlem’s Hale House, which cares for hundreds of drug-addicted infants. • “Miss Lillian,” the mother of former President Jimmy Carter, was 68 when she elected to pack her bags and join the Peace Corps, spending two years working as a nurse in India. • Mary Baker Eddy was 87 when she chose to try her hand at publishing and launched the Christian Science Monitor. www.iianm.org

Now some good news from the world of nature: The Hood Island giant tortoise of the Galapagos Islands, whose once vast numbers had dwindled to only 15 in the 1960s, has surged back with help from scientists. As reported on the Sci-News website, scientists captured the remaining tortoises, successfully bred them in captivity, and began repatriating them to their home in the 1990s. Now more than 1,000 of the tortoises are breeding on their own, a stable population back from the edge of extinction.

What’s a nutritious snack? Try these tasty treats You’re hungry. What should you eat if you’re trying to avoid junk food and excess calories? Consider these healthful snack options: • Olives. A snack of five olives has just 45 calories. • Hummus and carrots. Four ounces of hummus and three carrot sticks contain only 80 calories. • Pineapples and pistachios. Mix 1/2-cup of dried pineapple slices with about 25 pistachio nuts. Plus, fruits and nuts are a good source of antioxidants. Also try peanuts and raisins or almonds and dried apricots. • Cottage cheese and apples. Top a sliced apple with about 1/2-cup of low-fat cottage cheese. Benefits: calcium, protein, and fiber. • Mini-pizza. Slice a whole-wheat pita in half. Spread a little tomato sauce, then sprinkle some cheese and vegetables on top. Heat in microwave or toaster oven until cheese melts. • Rice cakes. These can be eaten by themselves or with various low-fat toppings. Look for rice cakes made from whole-grain brown rice. • Water. A tall glass of water revitalizes your body while assuaging hunger pangs. And it’s caffeine- and calorie-free.

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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 26