PIATN Fall Edition 17

WARD-WINNING A 

Fall 2017 • Tennessee

PAGE 12

A WILD ADVENTURE

2017 Professional Insurance Agents of Tennessee Annual Convention

INSIDE THIS ISSUE 09

How do you get rich?

17

Build a local brand

21

Grow profitably with internet leads

Stepping Forward to Serve Clients MidSouth Mutual has provided quality Workers’ Compensation insurance and services to agents and their clients since 1995. Every step of the way, the company has moved forward to provide exceptional service and expanded coverage areas across the Southeast.

MidSouth Mutual provides strength, reliability and value to agents and their clients through quality products, forward-leaning loss control and superior claims services.

Examples of clients we serve include: HVAC Contractors

Bricklayers

Carpenters

Masonry

Building Suppliers

Electricians

Framers

Insulation

Dozing Services

Plumbers

Dry Wallers

Cabinetry

Road Contractors

Painters

Landscapers

Flooring

MidSouth Mutual provides insurance to customers in Tennessee, Georgia, Arkansas, Mississippi, Alabama, Kentucky and North Carolina.

Contact Tom Perez at tom.perez@bwood.com or 615-379-8245 www.midsouthmutual.com midsouthmutual.

Departments 04 In brief Fall 2017 • Tennessee

07 Tech 09 POV 21 Sales 23 E&O 26 Readers’ service and advertising index 27 Officers and directors directory

Cover story 12 A wild adventure 2017 Professional Insurance Agents of Tennessee Annual Convention

Feature 17 Get out in your community A four-step process to build a local brand

Statements of fact and opinion in PIA magazine are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the Professional Insurance Agents. Participation in PIA events, activities, and/or publications is available on a nondiscriminatory basis and does not reflect PIA endorsement of the products and/or services.

President and CEO of PIA Management Services Inc. Mark LaLonde, CPIA, CIC, AAI; Executive Director Kelly K. Norris, CAE; Communication Director Mary E. Christiano; Senior Magazine Designer Sue Jacobsen; Member Information Manager Jaye Czupryna.

Postmaster: Send address changes to: Professional Insurance Agents of Tennessee, 504 Autumn Springs Court, Suite A-3, Franklin, TN 37067.

“Professional Insurance Agents” is published quarterly by PIA Management Services Inc. PIA Management Services, 25 Chamberlain St., P.O. Box 997, Glenmont, NY 12077-0997; (518) 434-3111 or toll-free (800) 424-4244; email pia@pia.org. ©2016 Professional Insurance Agents. All rights reserved. No material within this publication may be reproduced—in whole or in part—without the express written consent of the publisher.

Cover design Zack Littrell

In brief

from the executive director

Momentum …

Momentum is a powerful force. We talk about it relating to sports when we notice that the momentum of a game seems to turn from one team to another because of a play or series of plays. Momentum is believed to change people’s perspective, energy and psyche. It even is defined scientifically in Newton’s First Law, which states that a body in motion at a constant velocity will remain in motion in a straight line unless acted upon by an outside force.

committed members proudly display the PIA logo on their agency front door.

They hang their PIA membership plaque on their agency wall. They have the PIA logo on their business cards, stationery, website and social-media pages. Longterm member Jay Coffey, with Coffey Insurance, even includes a mention that his agency is a “proud member of the Professional Insurance Agents Association” on the agency’s telephone greeting.

Kristopher Mark Fisher, CPIA, LUTCF Executive Director PIATN Franklin, Tenn.

We see momentum each day of our business and personal life. When the morning starts right, it seems that everything goes correct for us … or vice versa. However, what is also true about Newton’s Law is the “acted upon by an outside force” portion too. Often, that outside force is really ourselves. The way we approach a situation, the way we react to a situation and the attitude we assume often are the greatest forces that affect the results. We can change the momentum.

We are changing the momentum of the PIA of Tennessee.

The Board of Directors, staff and active members have committed to see this Association become the premier organization for small- to medium-sized Main Street agencies in this state. Why not be a part of the momentum?

This not only helps promote the PIA, but also tells your clients that you are committed to being a professional, just as doctors promote being members of the American Medical Association. The PIA of Tennessee and our national association have numerous resources to help agencies with branding and networking. If you have not tapped into those resources, you should take a moment to see how PIA can help you and your agency.

In closing, I will remind you that our 2018 PIA Annual Convention will be June 28-29, 2018, at the brand new Guest House at Graceland Convention Center in Memphis, Tenn. More information is available at www.

PIATNconvention.com for your review. As always, the staff and I are here to help you and your team.

One simple change that you can make is participating in the promotion of the PIA in your daily activities. Our most

0

4

Professional Insurance Agents magazine

platinum partner profile

Progressive 6300 Wilson Mills Road

sive offers competitive rates and 24-hour, in-person and online services to drivers throughout the U.S. Glenn M. Renwick, president and CEO since January 2001, leads Progressive in its quest to become U.S. consumers’ No. 1 choice for auto insurance.

Mayfield Village, Ohio www.progressiveagent.com

Philosophy Progressive has 25,000 employees in more than 450 offices throughout the country. Progressive writes in all states except Massachusetts.

Senior executives Glenn M. Renwick, president and CEO Tricia Griffith, claims group president John Barbagallo, commercial-lines group president

Progressive’s philosophy is: “Progressive’s vision is to reduce the human trauma and economic costs associated with automobile accidents. It does this by providing customers with services designed to help them get their lives back in order again as quickly as possible. Governing its vision, decisions and behavior are Progressive’s core values: integrity, golden rule, objectives, excellence and profit.”

Appetite

John Sauerland, personal-lines group president

Progressive offers insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles and homes. It’s the fourth largest auto insurer in the country, the largest seller of motorcycle insurance and a leader in commercial auto insurance.

Tennessee staff Jeffrey Scovell, regional sales manager David Benchabbat Sr., sales representative Robert Cannon Sr., sales representative Todd Tipton, sales representative

History Progressive began in 1937, and over the years, has worked hard to build a superior product for auto insurance consumers through competitive pricing and by continuously improving its products and services. Today, Progres-

Progressive continues to make shopping for insurance and servicing policies easy and convenient for customers.

It continues to grow its network of independent agents— local experts tuned into their customer’s needs. It continues to offer mobile applications that make servicing policies easier. And, recently it launched its newest usage-basedinsurance product, Snapshot, which rewards customers for safe-driving habits.

“Agents have been an integral part of the success and growth of Progressive.

We remain committed to the channel and our agents—in fact, our agency channel is as large today as it has been at any time in the history of Progressive. We’ll continue to find new ways to help agents stay relevant and meet consumers’ needs.”

—Karen Barone, general manager of agency sales and distribution

PIA of Tennessee and Progressive proud partners for independent agents

www.pia.org

0

5

platinum partner profile

Nationwide Columbus, Ohio

companies in the country. What hasn’t changed? Nationwide’s commitment to one fundamental principle: that we can do more together than we can do alone.

www.nationwide.com

Philosophy

Lina Attaie, sales leader

Nationwide’s philosophy is: “As we’ve grown, we’ve taken a thoughtful approach to building relationships, focusing on offering the right level of consultation, compensation and benefits to agencies. These strong relationships empower you to grow your business with Nationwide— and to be rewarded for success. Today, we have come together as One Nationwide—which has expanded even further our ability to offer a broad portfolio of flexible options so our agency partners can solve for a wide range of customer needs.”

History

Appetite

Nationwide was founded in 1926 to help farmers insure their vehicles, but their needs quickly evolved—as they continue to evolve today. Over the past 90 years, the company has grown into one of the largest insurance

Today, Nationwide is much more than automobile insurance. It’s a diversified insurance and financial services organization serving consumers and businesses from coast-to-coast.

Senior executives Steve Rasmussen, president and CEO

Tennessee staff

PIA of Tennessee and Nationwide® proud partners for independent agents

0

6

Professional Insurance Agents magazine

Insurance in the age of technology and AI AI or Advanced Intelligence or Artificial Intelligence is more prominent in the insurance world. This is not something that happened over night— although it does seem like it is, since we hear about it more often. In fact, it started years ago when carriers and other third-party companies realized the importance of big data and they began to warehouse the data in the hopes that someday, all that data would become pertinent. Well, it looks like that day has arrived.

Since these concepts are relatively new, it’s difficult to discuss them as absolutes. Rather, the insurance industry will continue to adapt as they become more prevalent and, ultimately, it will be up to the consumers, markets and policymakers to decide how the information will be used or the ramifications that will occur.

Big data Now that companies have captured big data for several years, they have a treasure trove of information. Think of everything that could be captured from an insurance standpoint—from fires and liability losses; to accidents and dog-bite claims; to burglary losses and break-ins, etc. Now realize that each of those data points can be tied to specific locations or areas.

Years ago—when an agent actually could rate a policy manually—the rating only went down to a level of line of business, territory and coverage limit.

Now that carriers can incorporate all the collected data into a carrier’s rating algorithm, the industry is moving toward a multivariant rating system. This means they can create a rate within a coverage limit down to the Nth degree.

This past year, we have seen two different start-up insurance carriers that base their platform on AI alone. Both carriers focus on homeowners policies; much of their underwriting is based on AI. They have been able to do this by purchasing industry databases, and they use programs with defined algorithms to search for trends that may not be apparent to humans without extended analysis. All of this is done in the blink of an eye.

Not sure how it works? Consider this scenario using your agency’s information.

You want to find out who is the best customer in your portfolio. The query prompts a discussion: Who has the most policies? The highest premiums? Or, who has brought in the most commission dollars over the past years?

www.pia.org

What if you could run your database through a series of computer programs to determine that Customer X, brought in Y number of referrals, each of those referrals then brought in Z number of referrals, etc. Now you see that Customer X— who maybe only had two policies with your agency—directly or indirectly was responsible for bringing in 25 multiple-policy customers.

Tech

jim pittz, cic, cpia Business issues director, PIA Management Services

Before you ran the program, would you have thought that Customer X was one of your agency’s best clients? Would you have considered the above scenario? Would that have changed your definition of the best customer?

Does this change your idea of how big data can help your agency?

According to Brad Stewart, senior vice president, head of product, AI Enterprise Solutions, Wells Fargo, “Machine learning is a branch of artificial intelligence that utilizes data and algorithms to train software logic instead of programming that logic through explicit rules.”

This type of intelligence exists now.

However, do not expect everyone to utilize it yet. Since it involves a sizable initial investment, only the bigger institutions will be developing it at this time. Still, this practice is closer than you think.

0

7

The impact of smart cars With more press reporting on driverless cars or smart cars, more of the cars’ performance data is available for review. It still is questionable if the insurance industry will have access to all the information gathered by the cars’ manufacturers, since they own the data.

Consider the scenario in which a driverless car is involved in an accident. The main question is which car was responsible for the accident (the driverless one or the one driven by a person)? If the driverless car is at fault, the next question is: Did the human take control of the vehicle prior to the accident, or was the human involved in causing it? Finally, if the data collected by the vehicle contradicts the information the insured gave to the insurance company when he or she purchased the insurance policy, will there be ramifications for the policyholder?

In the case of smart cars, the last question could be a real concern. A smart car can capture a plethora of data about a driver (e.g., average miles/hour, miles driven, time of day the car is driven, stopping metrics, aggressiveness, accuracy or frequency of staying in lanes, GPS information, highway vs. local routes, etc.). An insurance carrier can input this data into its algorithm, which can calculate and charge a policyholder a monthly insurance rate designed specifically for the insured based on his or her monthly driving habits.

IoT As with smart cars, soon there will be a smart everything. With the advent of the Internet of Things, it appears that everything will be connected. Now what are the insurance implications if many household gadgets are now connected?

Consider an insured who, on a life insurance application, states that the household is smoke free. However, a smart smoke detector collects data that contradicts the insured—it detects cigarette smoke every day. Could this data be used against the insured?

PIA Buy Button

EffortlEss marketing

Build relationships and round your business with consumer newsletters and e-newsletters from PIA. We do all the work: writing, design and distribution.

• Written by industry experts • Easy and cost-effective • Print or online options • Customized to fit your agency’s brand and existing marketing efforts • Establish your agency as the authoritative, local source for insurance

(800) 424-4244 • creativeservices@pia.org

0

8

Professional Insurance Agents magazine

112370 715

AI is not the only type of technology impacting insurance. There is simpler technology that could be just as beneficial to you and your insureds. PIA touts the Buy Button as a game changer for the agency. This buy, or bind, button will allow you to bind a policy directly from your agency management system

or comparative rater—thereby reducing the overall workload of your staff and creating efficiencies.

Additionally, if a Buy Button is posted on your agency’s website, you can use an algorithm to allow specific insureds to purchase additional policies or change their insurance limits.

You could limit this functionality to specific insureds, types of policies or even insureds who have been with the agency a minimum number of years—talk about a loyalty benefit!

Another Buy Button benefit is the ability to bind coverage anywhere (e.g., at a client’s home or workplace).

Say you are attending a convention, conference or other outing. You can bind an insured’s policy during the event. You give the person a quote while he or she is at your conference booth. The person likes the offered policy and wants to purchase it. You push a button—BAM—the policy is bound. Word then spreads around the event, and you have a line of people at your booth—your only limitation is how many people you brought with you who can handle the workload of binding policies for all your new insureds.

Technology can be scary, but it also can be incredibly helpful in the insurance business. You don’t have to be on the cutting edge, but you should be willing to welcome it. Many elements of today’s technology can be equated to something as elemental as the tides. They are coming, they always will be coming and there is no way to stop them from coming. Bob Dylan wrote the song The Times They Are a Changin in 1964. More than 50 years later, you know what? ... The times they are a changin’ once again.

Pittz is PIA Management Services’ business issues director.

How do you get rich?

I am a proud family man. My twin grandsons entered college this fall and I could not be more delighted. They are an endless source of pride and an equally great source of stories. Recently, one of my grandsons asked me, “Grandpa, how do you get rich?” I presume he’s been thinking about his path in life and, as he is entering university, he’s been giving some thought to his career and direction.

I didn’t hesitate in my answer: “Well,” I said, “It depends on your definition of ‘rich.’” You can be rich with your relationship with your wife; you can be rich with your family. You can be rich with your friends and community … These are some of the things I value most.”

I knew that’s not what he was asking about, but it is an important point and there are things a person needs beyond monetary wealth to be happy and successful in life. In fact, these very things help to build financial wealth. I took the opportunity to share this with my grandson. “Rich isn’t just money,” I said, “And besides, who is rich in whose eyes? There will always be someone with more money than you and if you chase money with greed, you may not end up happy or rich.”

When we first got started, my wife made $5,000 a year as a teacher and I was hustling for less than $2,500/year. I was fortunate because I had a great mentor in my father and he taught me to use my centers of influence to help build my business. In fact, my father was one of my biggest centers of influence. He was a manufacturer in New York’s garment district. I stopped in at his office for lunch every day (because I couldn’t afford lunch myself) and he would introduce me to people with whom he worked. Eventually, I became a specialist in that industry: I could talk about textiles and trimmings and I learned the risks in that business and I picked up many accounts that way.

I joined organizations, built relationships and I was always prospecting. If I went to the dry cleaner, I was working with the dry cleaner. But, my father taught me to be careful, not to always be selling—rather, to always be building my network.

When I entered the Army, I was in a unit that had many accountants and attorneys. One of the accountants became a close friend and he began his practice when I was starting mine. We would recommend various accounts to each other.

Another center of influence I had was the friends I made in college; and friends with whom I went to summer camp. I didn’t chase people, but I let them

www.pia.org

Pov

n. stephen ruchman, cpia Past president, PIANY

know what I was doing and they knew I wanted to help them. One of my fraternity brothers got a job out of school at a major advertising firm. We would get together once a week, because his agency was located in my building. He would introduce me to various people with whom he worked. Before you knew it, I had a book of advertising executives’ homeowners and auto policies. One of them became the biggest agency owner in the country and before I knew it, I was the agent—all from a simple auto policy.

Speaking of accountants and attorneys, a friend of mine (who happened to become president of Michigan State) had a little black book of wisdom, and shared his tips about business through the book. One of his best pieces of advice was: “Be kind to the accountants and attorneys, for they will inherit the earth.”

Truer words were never said; I’ve gotten many referrals from accountant and attorney friends.

Once my business was running, I learned that attorneys and accountants, like insurance agents, have to take continuing education. But, they have the option to identify their own experts and specialists to teach the courses. I got approved to teach these courses and I went to my friends’ firms to discuss workers’ compensation audits; I would customize my

0

9

information—so for attorney friends who served the garment industry, I could talk about those risks and related contracts. And, I would receive referrals.

I would get clients from the attorneys and by doing so, I built further expertise.

Agency

Agency

Agency

E&O

E&O

E&O

has a market for your agency and specific risk

My own attorney asked me to join him volunteering for a charity. He said, “You will meet people who can become clients,” but he said, “Don’t chase them away.” I built my business further by doing good for others. At meetings, people knew what I did and they saw that I was interested in helping them and the community. When they needed to work with someone they trusted for insurance, they thought of me.

My father and my friends taught me the importance of working with your centers of influence, not necessarily selling, but my dad also taught me to always look forward. He was a wonderful businessman and my idol. So, of course, I called him to tell him when I got a big new account. He said, “That’s good, but also bad.” I was surprised and asked, “How is that bad?”

He said, “Now, you have to replace that big prospect with five new prospects.

You always have to have prospects in the pipeline—so your business doesn’t run hasdry.” a market for your has a market for your

agency and specific risk a tenant inagency and specific riskof your new He was right again. There’s business: Eighty percent

business will come from your existing clients. When I started out in the lifeinsurance business, I would go back to my clients every year, and as their families grew, their needs increased. As I went into the property/casualty business, I continued this practice. I would have an annual review for each existing client and sell coverages because they were growing, or their worth and property was increasing in value. The annual review is essential. Not only is it doing the right thing for the insured, it also helps protect you, as an agent, from errors-and-omissions exposures.

And as I learned from my father, whenever I finished an annual review, I would not leave the room without a referral for one of my client’s friends, competitors or family members. How many of us forgo that annual review or leave it up to a customer service representative? There was a period in my early days when if you asked my clients who their insurance company was, they would say, “Steve Ruchman.” I was the face for the companies and my clients knew they could call me for all their needs. That’s a good thing. It’s not an inconvenience, it’s an opportunity.

I’m excited for my grandsons as they embark on their education and careers.

I know they will make many great friends and important contacts at school and I hope they remember the importance of the relationships they make along the way. These are the things that have made me rich.

Ruchman is a retired independent agent and founder of Ruchman Associates Inc., the agency he started in 1961. He can be reached via email at: nsruchman@ gmail.com.

Contact Kristopher Fisher 800-875-7428

1

0

Contact Kristopher Fisher 800-875-7428

Professional Insurance Agents magazine

Contact Kristopher Fisher 800-875-7428

The more coverage clients have with you, the less likely they are to switch agents. EMC National Life is committed to making life sales simple with easy-to-understand products and online services to speed up the sales process. It’s just one of the many reasons policyholders Count on EMC ®.

LORA BUSKE Senior Life Sales Representative EMC National Life

LIFE INSURANCE MAKES A

CUSTOMER FOR LIFE. BIRMINGHAM BRANCH OFFICE Phone: 800-239-2005 | Corporate Office: Des Moines, IA

www.emcins.com ©Copyright Employers Mutual Casualty Company 2017. All rights reserved.

1

2

Professional Insurance Agents magazine

JESSIE LITKENHUS PIATN’s program administrator

A wild adventure

T

2017 Professional Insurance Agents of Tennessee Annual Convention

raveling to the mountains of Tennessee was a great adventure. The Annual Convention’s theme, “Go Wild,” was dispersed throughout the convention and trade show. Rocky Top log chairs, front porch with mountain scenery, mock moonshine still and banjo players set the mood for the buzzing trade show.

www.pia.org

1

3

Fifty-eight exhibitors had the chance to network with 100 agents during lunch and continue their fellowship on The Island or touring the Smokies. JM Wilson snagged the best “WILD” booth, with many other participants joining in the fun.

A golf tournament was held to benefit the Smoky Mountain Area Rescue Ministries. It raised $2,000 for those individuals affected by the wild fires.

Nationally known speakers shared inspirational words and led valuable education classes on How To Be An Effective Agent In This Century, allowing attendees to earn up to 10 hours of CE.

Milton Lagasse received the Glen R. Page Distinguished Service Award.

The Presidents’ Dinner wrapped up the convention events at the Titanic Museum, with an elegant dinner and tour back in time. We thank all who participated and helped to put on this great event.

Litkenhus is PIA of Tennessee’s program administrator.

Mike Tansil (center) was named Agent of the Year.

Paige Conrad was named Company Rep of the Year.

1

4

The PIA Golf Tournament raised $2,000 to present to the Smoky Mountain Area Rescue Ministries.

Professional Insurance Agents magazine

The new 2017-18 board of directors: (L-R) Mike Morat, Neil McConnico, Dedric Pearson, Tina Hutsenpiller, June Taylor, Mike Tansil, Leighton Bush, Greg Augustine, Doron Claiborne, Josh Witt and Adam Cox.

JM Wilson winner of the best “WILD” booth.

Our “Rangers” helped direct people and provide information with the daily events.

Chris Merryman, winner of the Agent Door prize.

PIA staff, Jessie, Kristopher and Kelly at the Presidents’ Dinner held at the Titanic Museum.

www.pia.org

The trade show was filled with the sound of the Smokies. The front porch included a mock moonshine still, banjo and guitar players.

Mark your calendars for next year’s Annual Convention June 28-29, 2018, at the Guest House, Memphis, Tenn.

1

5

Innovative, Not Conventional Niche Workers’ Compensation and Commercial Line Coverages for Main Street America Get started with an agency appointment application at amtrustappointments.com/Tenn2.

A.M. BEST RATING OF “A” (EXCELLENT), FSC “XV”

Get out in your community A four-step process to build a local brand

With the insurance industry spending roughly $6 billion a year in advertising to bring “Mayhem” and the like into America’s homes 24 hours a day, local independent agents can feel frustrated when it comes to branding. However, building a local brand within their communities can ensure a path to success no matter what Flo and the gecko are up to on the national stage.

It can be daunting for an agent—or anyone for that matter—to fathom the amount of dollars put forth by insurance companies for advertising each year. In fact, the insurance industry ranks among the top-10 industries in the U.S. when it comes to annual advertising spending growth, according to Insurance Business America.

A recent report from SNL Financial, also quoted in the story, found that Berkshire Hathaway, parent company of GEICO, was the top spender at $935 million in 2015— the most recent year for which data was readily available.

Other leading spenders included Allstate at $655 million,

State Farm at $608 million, Progressive at $604 million and Nationwide at $297 million.

What is a professional, independent agent, who operates on Main Street or in a local strip mall, rather than high atop a big city corporate high-rise, to do in order to stand out? The answer is: Play up his or her best assets and develop a local brand.

To find success in local branding, independent agents need a multipronged approach with a plan for tracking results. They need to explore a variety of mediums and use the tools that work for them, including: websites, social media, email, newsletters, community involvement, referrals, direct mail and more. Further, they need to remember that they can provide something else the big exclusive agencies can’t—significant variety in carrier offerings.

While all of these tactics can be useful, let’s look at four ways independent agents can stand out from the pack by building a local brand.

www.pia.org

1

7

No. 1: Accept that small, local appeal with community involvement For every independent agent who says, “I can’t compete with GEICO,” I say, “Why would you compete with GEICO in the first place?”

Independent agents need to tap into their strengths to be the best communitybased service providers they can be. We’ve all seen the bumper stickers—“Buy Local.” In fact, many consumers in the marketplace like to buy local and keep their business dealings local when they can. Independent agents need to capitalize on that and promote the personal touch and variety of product options that the big guys just can’t offer.

Placing a banner for an agency in the little league outfield still goes a long way.

Clients, as well as potential clients in the community, see the agency’s name and know that agency supports their hometown teams and groups. Tried-andtrue methods of local advertising are still effective today. Agency owners might consider advertising in the local coffee shops or diners, in the church or temple bulletin, sponsoring a local charity run or walk, or buying a banner to hang in the school gym. The community residents will get to know the agency’s name—creating awareness for that local brand.

Technology and social media may be creating new ways to communicate with current and future clients, but some of these classic tactics never lose their luster. That’s not to say that these forms of communication can’t complement the more traditional methods. Agents should consider using these tools to help with business-to-business support on a community level. For example, they

could host a seminar for small-business owners to inform them of the importance of cybercrime protection (with insurance as well as business processes) and promote the event online and via social media.

No. 2: Tap into carrier resources Often, independent agents argue that they don’t have the numerous resources and tools at their disposal that the national insurers do. But, in fact, they usually do.

Many carriers offer tool kits for independent agents with marketing materials, like signage, brochures and newsletters, as well as riskmanagement advice, online tools, website design assistance and more.

Independent agents can inquire with their carriers to find out what resources are available.

For Dwelling and Mobile Home Insurance, put your trust in a company that has been insuring homes for over 50 years.

20 %

CO NEW M BU M SI IS NE SI SS O N

Our Products: • Dwelling Fire/Mobile Home • Comprehensive Mobile Homeowner’s • Limited Homeowner’s

Can Provide You With: • • • • • •

20% New & 15% Renewal Commission AAIS Policy Forms Direct Contract with National Security Partnership Profit Sharing Fast Online Policy Issuance Easy Payment Options

National Security has provided competitive, affordable insurance to policyholders for over 50 years, but we also provide a lot for our agents, with competitive commissions, excellent customer service and experienced company adjusters. As an admitted Southeastern based regional company, National Security prides itself on fast, efficient service from a friendly small town company, and online access for all agents, providing fast quotes, online policy issuance, online dec page printing, and real-time policy information.

Find out more by calling Sharon at 1-800-239-2358 x213 or visit nationalsecuritygroup.com.

1

8

Professional Insurance Agents magazine

Elba, Alabama

Further, agents should ensure the carriers they represent are clearly displayed on their websites and social media, and stay in regular contact with them to see how they can partner in local events.

This approach can provide maximum impact, with little or zero money.

These carrier tools can help agents reach all their existing and potential clients, whether homeowners, auto, life or commercial. It’s about the local agent leveraging the strength of another known brand.

No. 3: Develop an active referral program Word of mouth is, and has always been, one of the most powerful and effective promotional tools around. A customer referral can be valuable— so valuable that an agency owner

may want to consider offering rewards for those referrals. Agents can do this in two ways. Reward the customers who directly offer a referral, depending on the state in which they operate, or reward the staff employee who obtains the referral (or both).

For example, in New England, there are agencies that raffle off a television, hand out lottery tickets and award gift cards for customer referrals. Sometimes a little incentive can go a long way.

Agencies need an active referral program and staff ought to know when and how to ask for referrals from customers. An ideal time to request a referral or testimonial is after a claim is settled and all parties are satisfied. In any case, staff should have a scripted and well-rehearsed referral request at the ready. An agent’s top customers usually are the best referral sources.

No. 4: Engage on social media Creating regular content on Facebook, LinkedIn and Twitter can bring an agency’s branding into the social-media world, but the competition out there can be intimidating. Social media is a great tool, an extension of what agents already do and can provide significant exposure to an agent’s brand; however, it takes time, patience and commitment.

Consider tip No. 1 (Think local) listed above on the importance of community involvement. Use social media to amplify that involvement and community presence. Dedicate at least 10 minutes a day to social media and consider the following tactics:

www.pia.org

1

9

• Sponsor and post pictures of an agency sign at the local baseball field; sponsor community events and share the spotlight.

to make the brand pervasive in the community.

• Promote other local businesses in the community as well. Small businesses will return the favor. By sharing the spotlight, agents welcome people in and show good will.

Times have changed. With technology and Main Street at their disposal, independent agents have a stronger opportunity than they’ve had in years to compete with industry giants. Professional, independent insurance agents can offer what big corporations can’t—a variety of products and services from different carriers, community involvement and a personal touch.

• Engage local youth groups. Promote their events ahead of time and share live video of the activities the agency supports and as part of the community brand strategy. Don’t be afraid to promote the agency here and there.

• Share photos of reaching milestones, new hires or staff volunteer events.

In addition, independent agents can get their staff involved in social media.

Let your staff know of the agency’s presence online and encourage them to view your social media and be responsive. Within a few weeks, the agency can increase its reach exponentially.

Agents would do well to focus on increasing “likes,” “followers,” and joining public groups. Additionally, posting photos, video and relevant content will keep your readers coming back to your sites. And, agents always should remember to follow the 80/20 rule. In other words, only 20 percent of social media posts should be sales related. Don’t sell all the time—build the presence of the brand!

Be your brand Once an agent has established that local brand, he or she has to embrace it, talk about it, tweet about it and then get others to do the same. The goal is

Agents can enhance their local brand by getting engaged and providing personal service that leads clients to want to share their experiences with others. Ultimately, that brand represents a commitment—to the clients, quality and community.

Matt Masiello is executive vice president and COO of SIAA (Strategic Insurance Agency Alliance) and CEO of SAN Group. He can be reached at mattm@siaa.net.

Get to know M. J. Kelly, managing general agents and surplus lines brokers. We offer a national company’s purchasing power and a neighbor’s personal attention. When you partner with us, you get specialists with industry knowledge, superior products, easy applications, and personal service. We’re ready to write your risks. Whether it’s special events, cyber liability, or artisan contractors, M. J. Kelly is here to help you write business. Our success is yours. Get to know M. J. Kelly Company.

M. J. Kelly Company-Arkansas 800.873.8374 www.mjkelly.com

Ask about M. J. Kelly Company Premium Payment Plan.

2

0

Professional Insurance Agents magazine

Grow profitably with internet leads Acquiring internet leads to develop and retain long-term customer relationships is a key strategy for many professional, independent agents. In the past, the process for acquiring third-party leads was relatively simple and straightforward: an agent would buy leads from a reputable lead generator with the assurance that all or most of those leads were fresh, legally compliant and were from consumers with real intent to get a quote and potentially convert into customers.

The good news is: More consumers than ever are shopping online, filling out forms and receiving multiple quotes. The bad news is that the process for acquiring high quality and actionable insurance leads has become more complicated and frustrating. So much so that some agents fundamentally have given up on internet leads altogether.

Consumer on-site engagement impacts close rates in insurance Average close rate

<1 min.

1-3 mins.

3-5 mins.

5-15 mins.

15-30 mins.

30-60 mins.

>1 hour

Time on the form (lead duration) Lead duration is the amount of time elapsed between when the consumer lands on the site, and when they submit the lead form. This data point is derived based on the consumer behavior Jornaya witnesses during the original lead event. In this chart, lead duration is correlated with close rate, which refers to the number of leads that converted into customers. The average close rate is typically between 2.5% and 3%, based on aggregate Jornaya client data in the insurance space.

Confidential and Proprietary. For information purposes only. Please do not copy or distribute further without prior express written permission from Jornaya™. ©2017 Jornaya™, Jornaya.com & Jornaya™ Inc. All rights reserved.

Instead of a simple process of acquiring leads directly from the lead seller who generated the lead, agents often end up working with third-party lead aggregators, players in the ecosystem in which lead generators sell via other lead sellers for additional monetization on their leads. As a result, agents may have little or no transparency regarding the origin and history of the leads they are buying.

So, what should be an efficient and effective ecosystem has evolved into one in which agents are left unsure of exactly what they are getting. www.pia.org

What frustrates agents is when they receive recycled/old leads or fraudulent leads from consumers who did not fill out a quote-request form. In addition, agents are wary of leads when the consumers did not give proper consent to be contacted. This means risking violation of the Telephone Consumer Protection Act.

sales

Jaimie pickles General manager, insurance, Jornaya

The TCPA has become a concern for agents and insurers. TCPA-related case filings are on the rise. And, consumers are being encouraged and incented to file suits. For example, in May 2017 a Florida-based insurer settled a class action TCPA lawsuit for $4.25 million.

So, how can agents purchase higher quality leads? They can do this by leveraging the right technology and data to add transparency to the leadpurchasing process. Using consumer journey data, agents now can gain real-time intelligence into the origin and history of leads. They can take action, before the lead is purchased, to ensure that the leads they purchase are from consumers with real intent and they are TCPA compliant.

Knowing important measures of consumer intent such as lead age and duration (i.e., amount of time the consumer spent filling out a lead form) helps to measure lead quality accurately. If a lead is 90 days old or the time spent by the consumer is too short, it is unlikely the lead will result in a sale.

2

1

Independent agents can use behavioral data and analytics to measure the intent of each consumer. They can view the consumer’s journey as one continuous engagement. Using these insights, agents have the ability to not only measure intent—but also the potential value of each lead they acquire.

For example, one of the nation’s largest agencies relies on this kind of technology to gauge consumer intent accurately and to assure TCPA compliance.

TCPA fulfillment is done using a compliance-reporting tool, which monitors and audits leads, supporting marketers that directly dial and text consumers by precisely identifying and separating compliant from noncompliant leads prior to purchase. The technology tracks and assures the existence of the consumer’s consent, delivering a positive first experience for every new customer.

One personal-lines property/casualty insurer was finding it challenging to validate the quality and compliance of the leads that it was purchasing for its agents. It also now uses this kind of technology and data to make smarter decisions and deliver higher quality leads to its agents. Using consumer-journey intelligence data and real-time decision-making tools have helped the insurer measure a consumer’s intent before it buys a lead and add new customers profitably. Below are some tips for growing profitably with internet leads.

Send leads in real time. One of the most prevalent issues with bad leads is that they are not fresh. “Speed-to-contact” is vital to success. It’s critical to know that your lead seller is sending you leads in real time so you have the best possible chance at converting them.

Your association is also your own private ad agency.

Logos

Graphic design Newsletters Printing on site Mailing services

Only purchase leads that are TCPA compliant. You don’t want to be sued by a consumer. The number of TCPA lawsuits grows every year. In fact, it increased 1,273 percent from 2010 to 2016. You need a vendor that can identify, in real time, that your leads are compliant and provide persuasive proof that the consumer consented to contact.

Pickles is general manager, insurance at Jornaya (jornaya.com), a company providing marketers with the highest resolution view of the consumer-buying journey.

Consumer pieces Trade-show displays Member discounts! (800) 424-4244 • creativeservices@pia.org

2

Buy from the generator directly.

There are many lead sellers that resell other publishers’ leads (i.e., aggregated). Research shows that aggregated leads rarely outperform leads bought directly from the source.

Measure consumer engagement.

There are a few key ways to measure engagement. We find that the amount of time a consumer spends completing a lead form is a primary metric. Our data shows consumers who spend five minutes or more filling out a lead form have much higher intent to buy than those who spend less than 30 seconds.

Branding

2

Identify how your lead provider attracts consumers. Find out if your leads are sourced from a paid search, email campaigns, banner ads, affiliates, call centers or incentivized campaigns. In our experience, if a lead originates from a Google search, it indicates a much higher intent (to buy) than a consumer who has replied to an email. Additionally, our research shows that incentivized leads are less valuable, because the consumer is interested in a reward, not your policy.

Professional Insurance Agents magazine

What is your memory worth in the courtroom?

The answer to the question posed in the headline is: “not much.” When errors-and-omissions claims occur, the discovery process involves sworn statements provided in depositions or in the actual courtroom in the vast majority of the cases. When these statements are provided, the best scenario is that there is documentation, such as agency system notes, letters, emails, etc., to support them. However, all too often, statements are based on the memory of the people providing them.

Using the scenario in which the producer alleges that the client declined a specific coverage from the proposal, which of the following has more credibility: the producer relies on his or her memory or a document that memorialized the decision to decline a specific coverage?

E&O

Curtis m. pearsall, cpcu, CPIA President, Pearsall Associates Inc.

Document A common phrase often used in litigation matters is, “if it is not in the file, it didn’t happen.” It would be challenging to find a more accurate phrase when it comes to E&O loss prevention. When an E&O matter develops, both of the attorneys have a right to all of the various pieces of a file. This includes agency notes, emails, letters, the proposal and more. The goal is that the documen-

Help Build Your Family’s Financial Future With

PIA Trust Insurance Plans INSURANCE PLANS DESIGNED WITH LOCAL AGENTS IN MIND As a PIA Member* serving Main Street America, you and your employees have access to a variety of highquality, competitively priced insurance plans.

Plans available include:  Basic Term Life**  Voluntary Term Life  Dependent Term Life  Hospital Indemnity  Long Term Disability  Short Term Disability  Business Overhead Expense  Accidental Death & Dismemberment

PIA SERVICES GROUP INSURANCE FUND

*PIA National membership, when required, must be current at all times. **Only available if 100% employer paid and if the employer and 100% of the employees enroll.

No medical underwriting necessary up to guaranteed issue limits.

For more information about PIA Trust Insurance Plans, please contact your local PIA Affiliate or call the Plan Administrator at 1-800-336-4759. Additional information is also available on-line at www.piatrust.com.

Policies or provisions may vary or be unavailable in some states. Policies have exclusions or limitations which may affect any benefits payable.

Underwritten by Unimerica Insurance Company, Portland, ME. Administered by Lockton Risk Services.

www.pia.org

2

3

tation will tell a story that aids in the agency’s defense. Therefore, a lack of documentation significantly affects that defense.

Typically, the courts do not look favorably on a person’s use of his or her memory; it is referred to as “hearsay” and does not carry the same weight as actual written documentation. There is the definite possibility that testimony based on memory may be considered inadmissible.

What does good documentation look like? Consider these key elements: • Be mindful about your documentation as your email or agency notation could be read by someone who is suing you.

• The documentation should be handled promptly and accurately.

• The documentation should be detailed and contain the necessary “who,” “what,” “why,” “when” and “where.”

• The person doing the documenting should be the same person who had the conversation with the client.

• Discussions with carriers and intermediaries should be documented.

While you believe that the underwriter will work with your agency in the event of a problem, what if that underwriter is no longer with the company when you need them?

• Declinations or rejections of coverage must be documented. To ensure that there is no misunderstanding about what the client said and what your agency heard, it is strongly suggested that there be written communication back to the client memorializing the discussion. You will be surprised about what clients will say after losses when they are told there is no coverage.

Online Education

• Pre-Licensing • Training and Education for the New Employee • Continuing Education from CEU.com

www.piatn.com/education Education at your convenience

www.piatn.com/education For more information, call Pam Cass, CPIA, at 800-875-7428

2

4

Professional Insurance Agents magazine

• The agency should have written standards and procedures established that clearly delineate where documentation of various types should be stored in the agency system.

Done right For insurance producers, there should be concise documentation of producer-client meetings. This can be at the initial stage of the relationship or at the numerous times when the interaction occurs. Notes should

For insurance producers, there should be concise documentation of producer-client meetings.

be taken detailing the discussion and then memorialized not only in the agency system but also, as noted above, through some form of written communication back to the customer or prospect. The documentation should include who was present for the meetings, what was discussed, and what was agreed upon.

Quality documentation may not be easy and will be time consuming, especially if it is done right. However, it is that important.

Pearsall is president of Pearsall Associates Inc. and special consultant to the Utica National E&O Program.

2017 Partners

from the people stronger

who

customer satisfaction

know.

stronger

coverage

stronger

loss control

stronger

defense

TENNESSEE

Continuous E&O protection since 1966.

504 Autumn Springs Court Suite A-3 • Franklin, TN 37067 Phone: 615-771-1177 • Fax: 615-771-3456 Contact: Kristopher Fisher, kfisher@piatn.com Visit: www.piatn.com

Directory

Readers’ service and advertising index

16 11 2 20 18 BC

AmTrust North America EMC Insurance MidSouth Mutual Insurance Co. M.J. Kelly Company National Security Fire & Casualty Co. PIA Branding Program

Show your true colors

8, 22 PIA Creative Services 10 PIATN Agency E&O 24 PIATN Education 23 PIATN Trust Insurance Plans 19 Summit 26 Utica National Insurance Group

Name____________________________________________________________________ Agency___________________________________________________________________ Address__________________________________________________________________ City/town________________________________ State____________ ZIP_____________ Phone____________________________________________________________________ Check advertisers of interest, complete form and mail to: PIATN magazine • 504 Autumn Springs Court, Suite A-3 • Franklin, TN • 37067

2

6

Professional Insurance Agents magazine

Enhance your ad with the impact of color.

Reach our sales representative at (800) 875-7428. .

Directory

PIATN officers and directors OFFICERS

President Mike Tansil My Team Insurance 1507 Memorial Blvd.

Murfreesboro, TN 37928 (615) 895-4201 mtansil@mileytansilins.com President-elect Adam Cox Alder & Cox 2110 Northpoint Blvd.

Hixson, TN 37343 (931) 503-0015 acox@aldercox.com Vice President Dedric Pearson Pete Mitchell & Associates 4216 Millbranch Road Memphis, TN 38116 (901) 345-6176 dedric.pearson@petemitchellins.com Secretary Tina Hutsenpiller Hutsenpiller Insurance 13085 Lebanon Road Mt. Juliet, TN 37122 (615) 218-8370 tina@hutsenpillerinsurance.com Treasurer Leighton G. Bush Bush Insurance and Financial Services 278 Seaboard Lane, Ste. 10 Franklin, TN 37067 (615) 794-9668 leighton@bushinsurance.com Immediate Past President & President, PIA Advantage Services Inc. Doron Claiborne, CPIA Claiborne & Taylor Insurance P.O. Box 10099, 319 West McKnight Drive Murfreesboro, TN 37129

(615) 893-5064 doron@claibornetaylor.com

NATIONAL DIRECTOR

June W. Taylor, CIC, CPIA, CPIW Wilkinson Insurance Agency Inc. P.O. Box 159, 205 Highway 76 White House, TN 37188 (615) 672-4439 june.taylor@wilkinsonins.com

DIRECTORS Greg Augustine The Augustine Insurance Group 111 North Riverside Drive Clarksville, TN 37040 (931) 503-0015 gaugustine@aol.com Tom Gernt, CPIA Art E. Gernt Insurance Inc. 171 Lantana Road Crossville, TN 38555 (931) 200-0110 tom@gerntinsurance.com Neal McConnico Clay & Land Insurance P.O. Box 17356, 866 Ridgeway Loop Road, Ste. 200 Memphis, TN 38187 (901) 767-3600 neal@murphyinsure.com Mike Morat, CPIA, LUTCF Mike Morat Insurance Services 2021 South Germantown Road Germantown, TN 38138 (901) 755-8858 mmorat@aol.com William â&#x20AC;&#x153;Billâ&#x20AC;? Oldham Oldham & Cox Insurance 9724 Kingston Pike, Ste. 1401 Knoxville, TN 37922 (865) 769-2332 bill@oldhaminsurance.com Josh Witt The Insurance Group LLC P.O. Box 32454 Knoxville, TN 37930 (865) 670-0911 jwitt@insgrp.net

STAFF

Kristopher Fisher, CPIA, LUTCF Executive Director (615) 771-1177 kfisher@piatn.com Jessie Litkenhus Program Administrator (615) 771-1177 jlitkenhus@piatn.com Kelly Smagacz Executive Administrator (615) 771-1177 ksmagacz@piatn.com

The PIA Branding Program

Advertising that helps set PIA members apart from — and above — their competition. �������������� ���������������

�������� ���������� ������

������������� �������������������

������������� ����������� ������������

���������������

����������������� ���������������� ������������������������������� ��������������������������� �������������������������������������� ����������������������������������� �������������������������������� ��������������������������������� ���������������������������������� ���������������������������������� �����������������

������������������������������ ���������������������������� ����������������������������������� ������������������������� ����������������������������� ��������������������������������� ������������������������������� ������������������������������

������������������������������������������������������������������� ��������������������������������������������������������������� ��������������������������������������������������������������

���� ��������� ���������� ����� ��� ��� ����

���� ��������� ���������� ����� ��� ��� ����

�� � � ��������������������������������������������������������������������������� ����������������������������������������������������������������������������� ������������������������������������������������������������������������������ ������������������������������������������������

�� � � ��������������������������������������������������������������������������� ����������������������������������������������������������������������������� ������������������������������������������������������������������������������ ������������������������������������������������

�� � � ��������������������������������������������������������������������������� ����� ��� ������� ��������� ������ ����� ���� ����������� ���� ��������� �������������� �������������������������������������������������

�� � � ��������������������������������������������������������������������������� ����� ��� ������� ��������� ������ ����� ���� ����������� ���� ��������� �������������� �������������������������������������������������

���������������������������������������������������������������������������� ��������������������������������������������������������������������������������� ��������������������������

���������������������������������������������������������������������������� ��������������������������������������������������������������������������������� ��������������������������

��� ����� ������ ������������� ���������� �������� ��� ������ ����� ����� �������������� ������ �� �������������� ��� ����������� ����� ���� ������� ���� �������� ��� ����� ������� �������� ���� ���� ��������������� ��������������������������������������������������������������������������� ������ �� ������ ������������ ��� ������� ����� ��� ���� ���� ��� ����� ������ ������ ������������������������������������������������������������������������������� ������������� ��� ������ ��� ���������� ���� ����� ���������� ������ ������ ��� ��� ���� ���������������

Local advertising for Local Agents Serving Main Street America

SM

How does a Professional Insurance Agent separate himself or herself from the pack in a crowded insurance marketplace? Simple.

By taking advantage of PIA’s new print advertising program.

Best of all, this powerful branding tool is available free and exclusively to PIA members, as part of their PIA membership. Company sponsorship of the PIA Branding Program is also free.

PIA has created a series of ten print advertisements that PIA members can run in local publications or print as flyers. These ads focus on the combination of choice and personal support and service that make PIA members Local Agents Serving Main Street America.

Learn More

SM

These attractive ads can be customized with agency logos and contact information and (optionally) a company logo. There are four general agency ads, two homeowners ads, two auto ads and two commercial lines ads, with numerous variations, sizes, color as well as black and white ads, making a total of 227 ads in all.

National Association of Professional Insurance Agents 400 N. Washington St. • Alexandria, VA 22314-2353 (703) 836-9340 (phone) • (703) 836-1279 (fax) www.PIANET.com • piabrandingprogram@pianet.org

Whether you’re a PIA member now, you’re an agent who has yet to join, or you’re interested in company sponsorship, head on over to PIA National’s website to see the ads and get all the details about the PIA Branding Program: www.pianet.com/piabrandingprogram