november 2012 iiaw magazine

wisconsinindependent agent

NOVEMBER 2012

NEW WEBSITE LAUNCHED!IIAW.COM

WISCONSIN INDEPENDENT AGENTNOVEMBER 2012 3

Your customers put all they have into their businesses. And it’s worth every long day and late

night. So don’t let them skimp on their insurance coverage.

With a policy from West Bend, they’ll have peace of mind knowing the business is well protected.

Our insurance professionals have the knowledge and experience to create the right insurance

program for hundreds of businesses, from antique stores to veterinarians.

!"#$#%&"'(')*+$,*#$,()#$(

+-$&#*.&'$/0().$1%#2)/%

3$(1$4%00$(1$*"#$5+(+/)(

0$1'#%+6'73$)1$8+*4+$

throughout the Midwest.

!"#$%&'#()*%+#$,'-*$,./#$%

&'

()*%+#$,'-*$,.#(0112

West Bend’s SMARTbusiness™ insurance program makes sense. Because if

it’s worth insuring, it’s worth insuring well.

Independent Insurance Agents of Wisconsin725 John Nolen Drive, Madison, Wisconsin 53713

Phone: (608) 256-4429 or (800) 362-7441 ! Fax: (608) 256-0170 ! Web: www.iiaw.com

Executive Vice President - Matt Banaszynski

NOVEMBER 2012Eric Schwartz, Editor

> OUR ADVERTISERS

AAA ................................................................ 34

AAE Consulting Group ..................................... 14

ACUITY Insurance ........................................... 35

Am Trust North America ................................. 29

Axley Brynelson ............................................. 30

Badger Mutual ................................................ 32

Big “I” Professional Liability .......................... 33

Burns & Wilcox ................................................. 6

Erickson-Larsen ............................................. 32

IMT Insurance ................................................. 23

JM Wilson ....................................................... 27

Pekin Insurance .............................................. 26

SFM .................................................................. 5

Society Insurance.............................................11

The Hanover .................................................... 15

West Bend ........................................................ 2

Western National Insurance ............................21

Wilson Mutual .................................................. 10

Open Door Policy New Website Improves Access To Member Services . . . . . . . . 4

Member Profile John Wickhem Agency: Interesting Experiences Lead To Life In Insurance . . . . . . . . . 8

News From ACT Grow Your Agency & Improve Your Marketing . . . . . . . . . . . . 12

Commentary From Counsel Prepare For The Hunt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Marketing Minute Business Ideas To Challenge Our Thinking . . . . . . . . . . . . . . . 22

Government Affairs Wisconsin Takes Wait And See Approach On Health Care Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

2012-2013 Executive Committee

President ....................................................... Michael Froh P.O. Box 1320 Sheboygan, WI 53082-1320

President-elect .............................................. Dave Dunker P.O. Box 443 Brookfield, WI 53008-0443

Secretary-Treasurer .................................... John Wickhem P.O. Box 1500, Janesville, WI 53547-1500

Chairman of the Board .....................................Mike Hierl P.O. Box 949 Fond du Lac, WI 54936-0949

State National Director ................................Linda Steiner 555 Main Street #320 Racine, WI 53403

2012-2013 Board of Directors

Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704

Jason Bott 330 East Kilbourn Avenue Milwaukee, WI 53202

Thomas Holter P.O. Box 938, Beloit, WI 53512-0938

Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583

Bruce Kommers P.O. Box 66, Antigo, WI 54409-0066

Jeff Rasmussen 525 Junction Road, Madison, WI 53717

Cap Wallrich P.O. Box 90, Shawano, WI 54166-0090

Matthew Weimer 100 North Corporate Drive #100, Brookfield, WI 53045

Donald Williams P.O. Box 595, Beaver Dam, WI 53916

2012-2013 Committee Chairs

Agency Operations ....................................... Kim Dandrea 1300 South Green Bay Rd. #100, Racine, WI 53406

Automation/Technology ............... Cathleen Christensen P.O. Box 949, Fond du Lac, WI 54936-0949

Employee Benefits ............................................. Tim Bever 555 Main St. #320, Racine, WI 53403

Finance & Compensation ..............................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045

Government Affairs .......................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045

Industry Relations ..............................................Ted Haase P.O Box 6, Seymour, WI 54165

Membership Development ................................. Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610

Smaller Agencies ....................................Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236

Technical ......................................................Andy Burkart P.O. Box 1320, Sheboygan, WI 53081-1320

Young Agents .......................................... Derek Wickhem P.O. Box 1500, Janesville, WI 53547-1500

wisconsinindependent agent

On The Cover…

We are excited to roll out our new Website. The new site allows members to update their profiles, post jobs, register for CE courses online, and streamlines our member resources into a user-friendly format. It’s a great resource that will make navigation more efficient. Read more about the Website in Open Door Policy on page 4. Check out iiaw.com now!

WISCONSIN INDEPENDENT AGENT NOVEMBER 2012 4

OPEN DOOR POLICY

NEW WEBSITE IMPROVES ACCESS TO MEMBER SERVICES

Previous systems were by and large invisible to the membership and cumbersome to use. (The current system, for example, requires a rather complicated, expensive, and time-consuming process for event registration and basic member services). The new system, however, will allow direct member interaction via the Website in many crucial and time-sensitive areas. Members who join, renew, or wish to update their address or other member information can now interact directly with the AMS. The new system will also bring to the member services Web pages practical features such as changeable passwords, real-time updates, and other member-related information. In addition, you can expect more value and engaging new features – complete membership Website with public and private content, an interactive member directory, member profiles, walls, blogs, wikis,

forums, groups, chapters, committees, photo albums and more – all nestled in one spot. Members are no longer just visitors to a static

Website. We expect that it will open the door to enhancing and customizing the Website for each individual member. You are now part of a group, where your membership grants you entry to our private online community. The best part is you control what personal and professional information you want to share with our members and the general public. For the staff here at IIAW, the system will help streamline many of our services; it will allow us to do more with less. For instance, our education and event registration process is easier than ever with instant confirmation e-mails and safe, secure, online credit card processing. The same goes for our membership dues process that many of you find inefficient and labor-intensive. Moving forward, our member resources will be clearly displayed to make it easier for you or

your staff to find helpful information provided by us here at the IIAW and/or the IIABA, our national association. We also maintained our

most popular links such as “Find an Agent” and “Find a Supporting Member.” The best part is you are now in control of information you want consumers and members to see. Upload your logo, profile picture, and latest contact information at any time. You can even create a blog, include your certifications, articles you have written, and maintain your Web page connected to your member profile. We hope for a seamless transition, but history suggests that there may be a few bumps in the digital road ahead. We request members to bear with us during

this time. We welcome feedback on the new system and that includes any difficulties you encounter and suggestions about possible enhancements to the Website or member services. While we can’t promise to implement every suggestion or immediately resolve every problem, we will give careful consideration to all feedback. We welcome your input and encourage you to contact us at [email protected].

On October 22, the IIA of Wisconsin flipped the switch on a new association management system (AMS). This AMS is the second such system the IIAW has implemented (since record keeping first went digital in the late 1970s) in our ongoing goal of making our member services as user friendly and efficient as possible.

> Matt Banaszynski is the Executive Vice President of the Independent Insurance Agents of Wisconsin. Contact him at [email protected].

New look Website online now! Accessing member services and information is more efficient and simplified.

Moving forward, our member resources will be clearly displayed to make it easier for you or your staff to find helpful information provided by us here at the IIAW and/or the IIABA, our national association.

SFM–The Work Comp Experts

Let SFM quote your workers’ compensation business. Call (800) 937-1181 or visit www.sfmic.com

Trust the experts.

Claims, legal and medical expertise. Optimal results in preventing injuries

and controlling costs. Highest levels of customer satisfaction and retention.

A leading regional insurer, specializing in workers’ compensation.


No one writes Excess/Umbrella with the capacity and speed of Burns & Wilcox.

Put the power and speed of the Burns & Wilcox pen to work for you: Solidify your clients’ coverage with our breadth of proprietary Excess/Umbrella solutions. Derived from our exclusive binding contract authority, our assets allow us to quote and bind policies at rocket speed. When it comes to securing your clients’ financial interests, think fast. Think the largest independent wholesale broker – Burns & Wilcox.

Milwaukee, Wisconsin | 262.347.0266toll free 800.544.5700 | fax 262.347.0440milwaukee.burnsandwilcox.com

This incredible event, from Sept. 4-8, focused on the future leaders of the insurance industry.

A contingent from Wisconsin made the trip south to learn about digital marketing, best practices, how agents succeed in their

agencies, increasing referrals, leadership techniques, and the latest information about education. It was also a chance for agents to share stories of successes and challenges with other young agent committee leaders.

Participants also heard about the carrier perspective on the industry, the market and tips for young professionals.

Atlanta’s Westin Peachtree Plaza was the site for the 2012 Big “I” Young Agents Leadership Institute and Education Convocation.

ATLANTA HOSTS IIABA YOUNG AGENTS LEADERSHIP INSTITUTE

Wisconsin and Minnesota agents take a break during the nearly week-long event in Atlanta. Front: Janelle Higgins, Neckerman Insurance; Diana Banaszynski; Matt Banaszysnki, IIAW Executive VP; and Samantha Jefferson, IIAW Education Coordinator. Back: Bill Butler, Butler & Associates (Bill is also the chair of the Young Agents of MN); Tom Lambert, Wendorff Insurance (MN); and Derek Wickhem, John Wickhem Agency (Derek is the chair of the WI Young Agents Committee).

Derek Wickhem, Janelle Higgins and Mike Peterson, VP of product development at Project CAP, at the conference.


WISCONSIN INDEPENDENT AGENTNOVEMBER 2012 9WISCONSIN INDEPENDENT AGENT NOVEMBER 2012 8

MEMBER PROFILE

JOHN WICKHEM AGENCY:

INTERESTING EXPERIENCES LEAD TO LIFE IN INSURANCE

He has owned the aptly named John Wickhem Agency in Janesville since 1985, and built it, along with his wife Donna, into a respected and successful agency with hundreds of individual and commercial clients in southern Wisconsin and northern Illinois. While John’s path to agency ownership had little to do with insurance, his backstory proved to be a great training ground for this industry and the basis for some good stories. This unconventional road into insurance is a common one; most insurance people had no intention of getting into insurance but were pleasantly surprised to find that it’s a rewarding profession. Back in 1968, when he was 20 years old, John was a member of the media, working as a camera operator for WKOW-TV and radio in Madison. He started out shooting the 6 and 10 evening news, but by 1969, he was directing and producing. John’s big credit was producing the Dairyland Jubilee starring “Big John” Schermerhorn. Dairyland Jubilee was a popular dance polka show for WKOW that ran until 1973. Schermerhorn would open each show with, “Hi everybody, what time

is it?” The audience would scream, “It’s time for Dairyland Jubilee!”(Footnote to history: In 1973, John’s parents, John C. and Mary Wickhem, helped found the International Crane Foundation in Baraboo. Mary is the organization’s chair emeritus.) John’s directing and production credits included nationally recognized ad spots for Toyota. He was also lucky to meet a young sportscaster named Gary Bender. Bender, after he left WKOW, went on to become a respected play-by-play announcer for CBS. He called national games for the NFL, NBA, Major League Baseball, college basketball, and college football. For the last 18 years of his career, he was the play-by-play man for the Phoenix Suns. When Gary worked for WKOW, he also called Green Bay Packers games on the radio. John would take a small plane up to Title Town and act as Gary’s assistant during the games. In his early 20s, this was not a bad gig.

“I would point at the numbers of players so Gary could talk about their statistics during the broadcast,” said John of these days before computers. “I would keep track of how many times he used a particular

stat. He didn’t want to use one piece of

information more than three times.” In 1977, John left WKOW and completely switched gears on his career. By 1978, he had accepted a position as an assistant manager with Woolworth’s, a department store in Madison. The store included a diner and malt shop so John acquired a quick education about the restaurant business and its emphasis on customer service. It was also during this time that John was introduced to the insurance industry, specifically the Elliot Resnick Agency, a life insurance firm. Two years later, John went to work for the Lathrop Agency in Janesville. Bill Lathrop’s father, William George Lathrop, pitched for the 1913 and 1914 Chicago White Sox. He dodged a bullet; he was not part of the infamous 1919 team that threw the World Series. After his baseball career ended, he built up a huge book of business with his big personality.

By Eric Schwartz

In business since 1985, the John Wickhem Agency is located at 1504 North Randall Ave. in Janesville.

Entrepreneurs take risks every day to build businesses. These people are independent thinkers with interesting experiences that put them on a twisting track to lead their own enterprise. John Wickhem falls into this category.

John’s path to agency ownership had little to do with insurance but his backstory

proved to be a great training ground for this industry. This unconventional road into insurance is a common one; most insurance

people had no intention of getting into insurance but were pleasantly surprised to

find that it’s a rewarding profession.

His son carried on the business when he retired. Lathrop and Bob Parker proved to be big influences for John. In December 1982, John and Bob Parker started the Parker Wickhem Agency. On October 7, 1985, the John Wickhem Agency was born after John bought out Bob Parker’s share of the agency. The agency’s original building has some history of its own. It was discovered, after 15 years in the building (1982-1997), that the structure had survived a fire. Burned trusses were hidden behind the walls. The current building on North Randall in Janesville has been the agency’s home since then and the building is doing just fine. So is the agency. While the interview for this article was in progress, there was a steady stream of clients coming in the door. The agency is not struggling and that keeps everyone busy. It’s the epitome of a family-owned small independent agency. John and his wife Donna own the agency. Derek Wickhem, their son, joined the agency in 2007 as a personal lines agent. John and Derek are the only agents, while Donna handles the accounting duties. Jodi Rinaldi is the agency’s receptionist. Richard Heinert, a life and health agent since 1999, retired in May. John is not yet ready to golf everyday but he does have a perpetuation plan in place. (Footnote to history: John, who is an avid golfer, said he beat Andy North when he was a senior at Janesville Craig and Andy was a sophomore

at Monona Grove High School. This was 1966. Andy won the 1969 Wisconsin State Amateur Championship and went on to win the U.S. Open in 1978 and 1985.) “Derek is going to take over in about four years,” said John, who also has a son and

daughter. Sean lives in Minneapolis; Holly lives in Maple Bluff, a village on Madison’s north side. Even though he is now in line to assume ownership, Derek’s start in the family business was not handed to him wrapped in colorful paper with a big bow. After Derek graduated from UW-Whitewater, he, like a lot of graduates, did

not know what he was going to do with his life. However, at the time, he did know one thing. “I was not interested in insurance at all,” said Derek. But after discussing the agency with his

Dad and learning more about what the job entailed, Derek warmed to the idea of a life in insurance. Of course, like a good salesman, John laid on the charm when he offered Derek a job. “I said, ‘I’m going to give you every dirty job and I’m not going to pay you,’” said John about his offer to his son. “I planned on doing this for three months just to see if he would do it.” He not only did it, he crushed it. In the first six months that Derek was with the agency, he increased his sales

by 6.5 percent. Since 2007, Derek’s seen a 5.5 to six percent sales increase every year. “It’s been fun,” said Derek, the current chairman of the IIAW’s Young Agents Committee. He has been active in the Association since he joined the agency. John’s Association involvement goes back to 1982 and he is currently secretary/treasurer on the Executive Committee and

a member of the Smaller Agencies Committee. After his unglamorous job proposal, John couldn’t be more pleased with Derek’s work. “He’s doing a wonderful job,” he said. “I’m confident that he will continue to do so.”

John Wickhem Agency is a full service independent insurance agency at 1504 North Randall Ave. in Janesville, Wisconsin. Contact them at 608.752.6030, or find them on the Web at wickheminsurance.com.

The staff of the John Wickhem Agency, from left: Derek Wickhem, Jodi Rinaldi, Donna Wickhem and John Wickhem.

MEMBER PROFILE


> According to Steve Anderson, a technology consultant, agency’s should be adding new content the their Website at least two times per week.

“Most agents ask, ‘Where in the world can we find this much information to add to our Website?’” Finding content is actually easy, when you know where to look.

There is an abundance of information in the insurance industry. Businesses just have to start looking at the information that’s available to you in a different light. Here are some of Steve’s suggestions:

!"Every continuing education class you attend is full of good, helpful, and interesting content. Instead of daydreaming or trying to clandestinely read a paper, use the time in class to create your own outline of the topics

covered that you think would be interesting to your prospects and clients. Use this outline as the basis for writing short articles (between 300 and 500 words — just a couple of paragraphs) that you can then add to your agency Website.

You can also use these articles to post short updates to various social platforms and then provide a link back to your Website. For example, you might attend a class titled, “10 Coverage Gaps Every Contractor Needs to Know.” At a minimum, you could create 10 short articles highlighting each of the coverage gaps, and how your agency can help make sure the contractor is fully protected.

!"Insurance companies you represent may also have content they have created for their particular products and services that highlight coverage extensions and

other advantages. Most carriers have marketing departments that constantly generate information. Also make sure you have permission to use their material on your Website and in social platform updates.

!"Answers to common questions asked by your clients make great content updates. If your client asks your staff a question, it’s likely others will have the same question. To gather these questions, have your staff write down every question they receive for a few weeks. It’s likely you will have more than you can handle.

There is no better tool to maximizing your Internet presence than fresh quality content. And, it helps make you the expert in insurance. Why not take a few minutes and write your first 300-word article today?

In the battle to be visible to the new digital consumer by

maximizing your agency’s Internet presence, consistently

creating new and interesting content is a key factor.

Note to self–

UpdateAgency W

ebsite

FRESH WEBSITE CONTENT: WHERE DO I FIND IT?

®

TM

TM

What does it take to join The Society Team?

While other insurance teams recruit by size, at Society® Insurance we focus on the intangibles. Our playbook revolves primarily around niche and workers comp insurance. And our philosophy is to find agents that are the best fit for our team. So rather than recruit by the size of the agent or agency, we prefer to find teammates that can execute our game plan to perfection.

150 Camelot Drive

P.O. Box 1029

Fond du Lac, WI 54936

888-5-SOCIETY

(888-576-2438)

societyinsurance.com

AG

EN

T

dc.9299 SocietyNewAgent_Ad_FP_Cmn.indd 1 12/3/10 12:14 PM


NEWS FROM ACT

Think of cars, ice cream, or appliances. The company selling multiple brands consistently beats companies selling just one option. And yet, in the world of personal lines insurance where independent agencies have multiple insurance carriers to sell and choose from, independent agents have around 33 percent of the personal lines market share (A.M. Best 2011 data). It’s been this way for five years with almost no movement. Many agencies claim they’re growing a little, but it takes 1.7 percent growth per year just to keep up with the population increase and stay flat with market share (US Census Bureau, 2000 to 2010 population annual growth average).

High Growth Agencies Track Metrics While most agencies change little in size of their personal lines books, there are a select few high growth agencies consistently increasing their total personal lines books by 10 to 24 percent. Comparing the commonalities of these agencies, it’s clear that they stand out in their sales methods, training, and support. One thing really was truly unique – these agencies tracked their marketing efforts and knew what was effective and what was not.

For the purposes of this article we’ll keep the discussion to personal lines, but many of the

tracking metrics that follow will work for commercial as well.

Marketing an independent agency is different from marketing an insurance company. Large insurance companies need to drive greater name recognition. But like all small businesses, insurance agencies need to be more efficient, more cost effective. Simply put, your marketing efforts should be the result of knowing where your new business comes from, and how much revenue you make from the new business, so you can focus on how to drive in more and keep more.

Key Metrics for Growth To gain back some of that market share, independent agents will need to get more effective with their marketing. Let’s take a look at what the high growth agencies specifically track to help achieve their high growth numbers. These tracking methods can help you grow too.

These 25 growth agencies tracked 12 common items. They fall into three categories: new business, average revenue per client, and retention. Here’s a look into each of the 12, along with a few key target examples so you can see how you compare. As you read through this, put a mental check mark by all that you’re currently tracking in your agency.

New Business ITEM 1: TOTAL NEW BUSINESS ITEMS This is fairly easily tracked through agency management systems. Most can say how many new policies were written. But it gets tougher from here.

ITEM 2: WHERE EACH NEW POLICY COMES FROM Here’s the big one. The most important question each person must ask on every call is, “How did you hear about us?” Everyone knows it. Without this, everything else falls apart. You can tell where the business comes

from, which advertising dollars are most effective, where to focus your efforts and more, just from this question. Once asked, then the tracking begins. The more detailed you get, the more you’ll learn. Here are 10 basic tracking categories:

1. # from cross sell efforts

2. # from client referrals

3. # from mortgage referrals

4. # from real estate referrals

5. # from walk ins

6. # from phone books

7. # from print ads

GROW YOUR AGENCY & IMPROVE YOUR MARKETING BY TRACKING KEY METRICSIndependent agents should be winning in the personal lines marketplace, even dominating. Is there any other industry where companies selling just one option have a majority of the market share over other companies in that industry selling multiple options of the same product?

While most agencies change

little in size of their personal

lines books, there are a select

few high growth agencies

consistently increasing their

total personal lines books by 10

to 24%. These agencies tracked

their marketing efforts and

knew what was effective and

what was not.

NEWS FROM ACT

8. # from Website

9. # from Facebook

10. # from other

You can also track on a much deeper level. You can break out referral leads by each producer’s clients. You can track referrals by individual mortgage companies, real estate agencies, title companies and credit unions. This helps you understand which centers of influence are high quantity referral sources and thus where to spend time enhancing relationships. Or you can view the low production sources, so you can either change focus or drop the lead source completely.

ITEM 3: CLOSE RATIO BY CATEGORY Learning your close ratio by category can also be a big boost. It’s clear where you should spend your time if you know, for example, that your close ratios for mortgage companies and certain captive agent referrals are near 80 percent and other methods are at 25 percent.

Some of these agents who track close ratios know that their client referrals are closing around 70 percent, while other agencies know they close client referrals at 35 percent. Digging further, those with the higher close ratios are only considering true client referrals to be those where the person referred is calling for a quote. Agencies with the lower close ratio are accepting any name and phone number given by a client as a referral, but this means that the

prospect may or may not be ready to look into insurance at the time you call, and the agency is spending resources to continue to call and follow up on each lead. Both methods can work, and several agents say that they want to encourage the behavior of giving any referral. But if you are tracking everything, at least you’ll know which ones are most effective.

ITEM 4: MONTHLY CLOSE RATIO BY PRODUCER This is an excellent training tool. If you know your agency closes referrals at 55 percent, but that your three producers are closing referrals at close ratios of 70, 50 and 35 percent, then

you’ll know where you should focus your sales training internally. Sounds easy, but you can’t do this if you don’t track close ratios!

Average Revenue Per Client ITEM 5: TOTAL PREMIUM Another easy one to track. This needs to be done for all personal lines in the agency, not just by carrier, so compile the totals and read on.

ITEM 6: TOTAL POLICIES Also easy to track by totaling all of your policies by carrier into one agency number.

ITEM 7: TOTAL NUMBER OF CLIENTS This equates to total households. Pull the total number of addresses from your agency

management system to get this tally.

ITEM 8: AVERAGE NUMBER OF POLICIES PER CLIENT Divide total policies into the total number of clients to get this number. This is one of the most helpful statistics you have to tell you how your team is cross selling your book. A rough average of number of policies per client to use is 1.6. If you’re averaging 1.4, you know that one of the first things you should do is a big cross sell effort throughout your book. Cross selling boosts both new business and retention, so if your average policies per client are 1.6 or less, you should focus your marketing efforts here first.

What is the high end ceiling for average policies per client? Very few agencies average 3 or more policies per personal lines client. It’s challenging to move your book one tenth of a point in this category. But if you track it monthly and can see growth over 3 months of 1.72, 1.73, 1.74, you know you’re making solid progress on cross selling. If not, you may want to do some cross selling mailings with phone call follow ups. Or it may show a need for you to do more internal sales training on cross selling to protect your clients properly.

ITEM 9: AVERAGE PREMIUM PER POLICY To find this amount, divide total premium by total number of policies.

ITEM 10: AVERAGE REVENUE PER CLIENT This is more challenging, but it’s the jewel of tracking numbers for every agency. To determine the average revenue per client, multiply the average premium per policy by average policies per client. For example, if your average premium per policy is $1000, and your average policies per client is 1.6, then your average premium per client is $1600.

Now multiply your average premium per client by your average commission. For example, $1600 average premium per client times your average commission of 13% would equate to average revenue per client like this: $1600 x .13 = $208 average agency revenue per client.

What is a good target range for average revenue per client in personal lines?

> Chuck Blondino is the northwest region marketing director for Safeco Insurance, member of Liberty Mutual Group. Chuck wrote this article for ACT and he can be reached at [email protected]. This article reflects the views of the author and is not an official statement by Safeco Insurance or by ACT.

Simply put, your marketing

efforts should be the result of

knowing where your new business

comes from, and how much

revenue you make from the new

business, so you can focus on how

to drive in more and keep more. CONTINUED ON NEXT PAGE


Heavy non-standard agencies selling mostly monoline auto will be in the $140 to $180 range. In low catastrophe areas, average preferred agencies will see $190 to $240. In more affluent areas or places with increased catastrophe exposure, the average revenue per client is higher, averaging $280 to $325 per client.

Once you know this number, and you know where your business comes from, you can easily track your return on your investment. Agents who know these numbers are shooting for a 1 to 1 first year return on all of their marketing. For example, if you’re spending $1000 per month on phone book ads, and your average revenue per client is $200, then you know you need to write 5 new clients each month to get a 1 to 1 return. If you’re not, then you may want to consider shrinking your marketing in that area. If your newsletters are driving a 1 to 1 first year return or better based on the increased referral traffic, then you know your marketing there is paying off.

Retention ITEM 11: RETENTION FOR YOUR ENTIRE BOOK EACH MONTH To determine your monthly average retention, you’ll need to know:

For example, let’s say 12 months ago you had 1000 policies. At the end of the 12 months ending last month, you had 1150 policies. Subtract the 250 policies you wrote new over the 12 months from the ending total of 1150, and you kept 900 or 90 percent of the original 1000. (Be sure you’re not counting rewrites as new!)

Is focusing on retention worth it? Here’s how to find out. Multiply your current annual revenue by your current retention rate. Do that over 10

years. Don’t add in new business; just see what happens to your current book over 10 years. Then multiply the same starting annual revenue by a retention number 3 points higher over 10 years, and calculate the difference. Here’s what it looks like for a $1 million revenue agency that moves it’s retention from 88 to 91 percent:

ITEM 12: AVERAGE LENGTH OF TIME CLIENTS STAY WITH YOU Determine the number of years each client has been with you. Tracking in whole years as opposed to months is easier when you start. Add up all the years clients have been with you (this will be big). Then divide that total and divide by the number of clients you have. This will give you the average length of time clients stay with you. Excellent marketing tactics should deliver a $1.00 return for every $1.00 spent or better in the first year, but you get a much stronger picture for how profitable your marketing is when you know how long you retain your clients on average.

Keep tracking each of these metrics and you’ll enjoy seeing how your monthly report card can drive growth and stronger profitability.

$1,000,000 REV. 88.0% 91.0% DIFFERENCE

1ST YEAR INCOME 880,000 910,000 30,000

2ND YEAR INCOME 774,400 828,100 53,700

3RD YEAR INCOME 681,472 753,571 72,099

4TH YEAR INCOME 599,695 685,750 86,054

5TH YEAR INCOME 527,732 624,032 96,300

6TH YEAR INCOME 464,404 567,869 103,465

7TH YEAR INCOME 408,676 516,761 108,085

8TH YEAR INCOME 359,635 470,253 110,618

9TH YEAR INCOME 316,478 427,930 111,451

10TH YEAR INCOME 278,501 389,416 110,915

882,689

AAE Consulting Group

www.aaeconsultinggroup.com

Austin Engelhardt, ASA 414/350.1630 [email protected] !"#$%&'()*+%,()-%.%/'-*0)+(1%23%%$456#%

Replacement Cost Appraisals

!" Accurate and supportable independent property insurance

appraisals

!" /788%+)97'():-%9;-:<'7=%9-'>+:-? buildings, contents, and

property in the open

!" Accredited through the American Society of Appraisers

!" @A;-'+-):-*%9<(BB%C-88D>-'9-*%+)%commercial property appraisals

!" Short report turnaround (usually within 48 hours)

2E-<E-'%F07%('-%(<<-=;<+)G%<0%9-:7'-%)-C%:8+-)<9%0'%'-)-C+ng an already existing client, accurate replacement cost placement is important to the insured’9%;-(:-%0B%=+)*H%%I'0>+*+)G%(::7'(<-%replacement costs can keep both sides out of the grey area of not knowing if%<E-%;'0;-'<F%+9%+)97'-*%<0%>(87-H%

Visit our website today to sign up for a free desktop analysis of your insurance portfolio.

GROW YOUR AGENCYCONTINUED FROM PREVIOUS PAGE

Total Account Products

Customer Center Agency Support Team

Retention Tools Revenue Tools Business Analysis EFT Billing

Filed in 48 States Small Programs Customer Center 1500+ Classes Small Niches 100+ Endorsements Flexible Payments

The Hanover has more juice than ever. Are you plugged in?

Personal Lines

Small Commercial

Middle Market & Specialty

30+ Target Industries

Unique Niches Professional Liability

Management Liability

Specialty IndustrialSurety Specialty Programs

A broad range of innovative product solutions, including access to specialty and industry niche products. All of that capability for a selective group of agents . . . delivered through local experts in your market. No wonder The Hanover has grown to be a national powerhouse. Partnering with us gives you a unique competitive advantage to create winning opportunities. Talk with your local Regional Vice President to find out how you can get more juice by plugging into the power of The Hanover.

www.hanover.com

John Vose, Assistant RVPPersonal [email protected](262) 796-6743

Andy Knipfer, RVPCommercial [email protected](262) 796-6735

Z6738WI (11/11)

LC 11-345

The Hanover Insurance G

roup with Eagle icon is a registered tradem

ark of The Hanover Insurance G

roup, Inc.

NEWS FROM ACT


FA L L P L A N N I N G I N E L K H A R T L A K E C H A R T S C O U R S E F O R 2 0 1 2- 1 3

!"On September 18 and 19, the IIA of Wisconsin Young Agents Committee came out in force to the Osthoff Resort in Elkhart Lake for fall planning 2012. A record number of people are serving on the committee this year (19 in all!) and their involvement is unprecedented in the Association. From left: Janelle Higgins, Neckerman Insurance; Pam McKay, AAA Wisconsin; Andrea Kiemen-Rognsvoog, Johnson Insurance Services; Janel Bazan, Johnson Insurance Services; Jason Bott, Robertson-Ryan & Associates; Trisha Ours, The Horton Group; Derek Wickhem, John Wickhem Agency; Brian Curley, Westfield Insurance; Robert Gudates, Philadelphia Insurance Cos.; Mike Tietz, Pekin Insurance; David Craig, Robertson-Ryan & Associates; Jonathan Ottman, Ansay & Associate; Marc Petersen, American Advantage/Petersen & Associates; Casey Haen, SECURA Insurance; and Jack Demski, Ansay & Associate.


From left: David Craig, Young Agents (YA) Committee; Trisha Ours, YA Committee; and Jason Bott, IIAW Board of Directors and YA Committee board liaison.

!

!"With the future of the industry full of promise, it’s crucial that that future is protected. At fall planning there was a renewed focus on government affairs and the importance of giving to one of the Association’s political action committees, Insuring Wisconsin and InsurPac. From left: Matt Banaszynski, IIAW Executive VP; Heidi Nienow, Industry Relations and Membership Development committee member; and Pam McKay, Young Agents Committee member.


Fall planning is what makes the IIAW a unique organization. All of our member committees meet to plot the course for the upcoming year. For 2012-13, this is more important than ever. Our 10 committees with over 100 volunteer members set the agendas that guide the IIAW. The success of fall planning leads to the success of the Association as a whole. Thank you to everyone who is involved! From left: Samantha Jefferson, IIAW Education Coordinator; Dave Dunker, IIAW President-elect and member of the Agency Operations, Finance & Compensation, and Government Affairs committees; and Dana Pritchett, IIAW Events Coordinator.

!


M E M B E R S I N T H E N E W S

Capitol Named Best Place To Work In InsuranceOn Sept. 4, Middleton, WI-based Capitol Insurance Companies announced

that they had been selected as one of the 2012 Best Places to Work in Insurance.

Best Places to Work in Insurance is a joint effort of Business Insurance and the Harrisburg, PA-based Best Companies Group, and is open to all publicly or privately held insurers, agents and brokers with at least 25 employees working in the United States and serving the commercial insurance market. This program recognizes an elite group of 65 employers that have created high-quality workplaces that encourage employees to thrive in their work environment.

“Being recognized as a best place to work in the insurance industry is significant to Capitol; it is a true reflection of our committed and hard-working employees,” said Diane West, VP of human resources and administration. “This recognition belongs to them.”

“At Capitol, we believe our company’s success is tied to the unwavering commitment of our employees,” says Alan Ogilvie, COO. “That’s why we strive to be a preferred employer. This recognition means we’re achieving our vision and creating a workplace that allows our employees to excel and find satisfaction in what they do.”

Find Capitol on the Web at capitol.net.

M3’s Tirschman Wins 2012 National Outstanding CSR Of The Year

Maggie Tirschman, account manager at M3 Insurance in Madison, has been named the 2012 National Outstanding CSR of the Year by The National Alliance for Insurance Education & Research.

To qualify for this national honor, Tirschman submitted an essay on the following topic: Given the emphasis that many

of your commercial lines and personal lines clients place on price, identify and explain four important actions your companies have taken, or could take, to help you and your agency become more competitive.

In a letter notifying Tirschman of her selection as the 2012 National Outstanding CSR of the Year, National Alliance President William T. Hold said, “Having profiled your accomplishments for our blue-ribbon committee, I genuinely appreciate your achievements and your understanding of the most precious of our assets — our customers.”

Employed at M3 since 2008, Tirschman supports the agency’s efforts to build and maintain effective client relationships. She works with the sales staff to place new business, process renewals and policy changes, and serve as the liaison with insurance carriers.

Find M3 on the Web at m3ins.com.

Schwartz Insurance Agency And Dave Mosher & Associates Merge

On Sept. 17, agency owners Randy Schwartz and David Mosher announced the merger of Schwartz Insurance Agency and Dave Mosher & Associates Insurance Services (DMA).

The combined agencies will have offices in Green, Lafayette and Rock Counties and

insure clients throughout Wisconsin, Illinois and other States. Randy Schwartz and Marlene Elmer will continue to serve client needs at the DMA office in Monroe.

“This is a merger of not only similar insurance carriers but also a merger of families,” said Dave Mosher, agency president. “My father-in-law, Jim Gordee, purchased a Monroe agency in 1965 and Randy’s father, Glen, purchased a Monroe agency in 1963. Both agencies have appreciated and respected the work and service provided.”

Randy Schwartz is pleased that this legacy will continue.

“It’s important to me that my clients continue to get the attention we have offered for nearly 50 years,” said Randy. “The staff at Dave Mosher & Associates will continue that tradition and with the addition of Dave’s son, Scott, the family tradition will continue.”

Recently, DMA celebrated 100 years of service starting with the Ainsworth agency in 1910. Schwartz Insurance’s roots are even deeper. The agency started as the Wenger and Burgy agency in 1903. It is also noteworthy that both agencies represent General Casualty (now QBE), as that insurance company began as the Monroe Insurance Company in 1925.

Find them on the Web at mosherinsurance.com, or on Facebook.

ACUITY’s Growth Recognized By Deloitte ACUITY has been named to the Wisconsin 75, the annual program from Deloitte that honors the state’s largest closely held

firms for their contributions to their home communities and Wisconsin’s economy. ACUITY was ranked at number 19.

The Wisconsin 75 recognizes more than just revenue, honoring business contributions to the communities in which they are located, the people who build the business and the overall Wisconsin economy of which they are a part. Since the launch of the Wisconsin 75 in 2003, Wisconsin’s most recognizable private companies have participated.

Find ACUITY on the Web at acuity.com.

M E M B E R S I N T H E N E W S

ACUITY Named Top Technology Innovator ACUITY moved up 87 spots to be ranked 56 on the InformationWeek 500, a list of the top technology innovators in the U.S. This marks ACUITY’s ninth consecutive year on the list.

InformationWeek honors the nation’s most innovative users of information technology with its annual listing, evaluating thousands of companies before narrowing the field. Rob Preston, InformationWeek Editor In Chief, said that two qualities are essential in order for a company to be chosen.

InformationWeek recognized ACUITY for its achievements in mobile technology. ACUITY has focused on “mobilizing” key consumer- and agent-facing applications and on equipping its own field staff with the latest mobile platforms. This commitment keeps the insurer on the leading edge of technology, controls costs, and enhances the service ACUITY provides agents and customers.

“Agents need to partner with innovative companies that leverage technology to add value to the insurance transaction,” said Ben Salzmann, ACUITY President and CEO. “Being named to top 100 in the InformationWeek list proves that we deliver those capabilities.”

“It is rewarding to be named a top technology innovator by InformationWeek for the past nine years, but we’re not done yet,” said Neal Ruffalo, VP-Enterprise Technology. “We never stop looking for ways to make it easier for agents to do business with ACUITY, for our employees to do their jobs most effectively, and for our customers to have the best experience possible.”

Insurance Journal: Hausmann-Johnson Best to Work For In Midwest

In September, Insurance Journal published the “2012 Best Independent Insurance Agency to Work For” and Madison-based Hausmann-Insurance was named the best in the Midwest.

The owners of the “Best Agencies” highlight different programs or benefits depending upon their employees’ needs, their community, agency history, resources, even their own personalities and styles. However, it’s not all about benefits and programs. Happiness at

work has a lot to do with people and relationships. Employees of the winning agencies cite high personal job satisfaction, rate their relationships with their immediate boss or supervisor as positive, and express a high opinion of their agency’s owner or principals.

Steve Squires, president and CEO, says he’s pleased but not surprised that the agency’s associates think his agency is a great place to work. “They prove to us every day that they’re glad to be here,” Squires says. “They’re a good group, and we always strive to be better and work harder.”

Squires says the company recognizes that “an employee or associate spends a lot of time in a work world, and we want to make sure it’s a pleasurable experience.” To that end, management not only seeks to encourage solid workplace practices, but also to make it an enjoyable place to work.

“We have a fun committee, that’s actually what we call it,” Squires says. “It’s a committee that’s formed every year ... they basically plan the fun for the year, whether it’s the annual company picnic or a winter event.”

Find Hausmann-Johnson on the Web at hausmann-johnson.com.

Fowler Joins Integrity As Commercial Lines Underwriting ManagerIntegrity Insurance has added Mark Fowler as commercial lines

underwriting manager. In his new position, Fowler will lead the commercial underwriting team to ensure sustained growth, profit and execution of Integrity’s business objectives through quality underwriting, proactive portfolio management and strong customer service.

“We are excited to have Mark join us,” said Jill Stache, Integrity’s commercial lines vice president. “His expertise in the commercial lines area will enhance the high level of service we provide to our agency partners.”

Fowler comes to Integrity from Hastings Mutual Insurance Co. in Hasting, Mich., where he was a commercial lines underwriter before being named a large account specialist.

A native of Marquette, Mich., Fowler received bachelor’s degrees in finance and business from Grand Valley State University in Grand Rapids, Mich. He also has his CIC, AU and AIS designations.

Find Integrity on the Web at integrityinsurance.com.


PREPARE FOR THE HUNTAs many of you already know, I am a lifelong hunter, avid competitive shooter, and fully-credentialed gun nut. I am sure many of you are one or more of the above as well, and that you also have numerous clients who take to the fields, woods and water each fall to hunt.

COMMENTARY FROM COUNSEL

So, I thought a short and sweet column on some of the insurance issues associated with hunting would be worthwhile.

Deer hunting — particularly gun deer season, the most visible of blaze orange traditions — presents an interesting confluence of circumstances. First, we see more people on the road at odd hours. Couple that with substantially increased deer movement due to the push of the hunt, add a dash of alcohol consumption in the evenings and bleary eyes in the mornings, and you have a recipe for increased risk on the roads. This is no time for inadequate insurance coverage, and you should take the opportunity to remind your clients as the season approaches. Another consideration is the possibility of a vehicle kept exclusively (or even almost exclusively) for hunting use. This raises concerns about meeting the compulsory

insurance requirements in Wis. Stat. § 344.62, which mandates that liability coverage be in place for motor vehicles operated on highways. (For a refresher on Wisconsin’s mandatory motor vehicle liability coverage requirements, check my column in the June 2012 Wisconsin Independent Agent). If the hunting truck is going to be on the roads to get to camp or between hunting spots, it needs to have liability coverage. Hunting season (or policy renewals around that time of year) is also a good time to review homeowners’ coverage for firearms. Many hunters and gun owners are unaware of the typical, relatively low, coverage afforded to firearms. Yet scheduled coverage, either through the same carrier or a specialty policy offered by any number of companies and associations (like the National Rifle Association) is available at reasonable rates. Many landowners lease hunting land to others; those landowners should review their leases and their insurance coverage to ensure they are protected in the event of an accident on their property. Lessees can also purchase liability coverage for land they lease, and should consider doing so — it is quite

inexpensive and typically based on the number of acres leased. It is also common for Wisconsin hunters to take extended hunting trips, in the United States and internationally, to hunt for game not available here at home. These trips can be very expensive, must generally be booked well in advance and are subject to the same vagaries of circumstance and health as any vacation. So, it should not be surprising that many of the same companies that provide trip and travel insurance for traditional vacations also provide insurance for hunting trips. I could probably go on for a few more pages, but you get the picture — the hunting culture and experience has some unique insurance circumstances, but most of them can be addressed by common sense, diligence and products that are available in the marketplace.

Hunting season is a

good time to review

homeowners’ coverage for

firearms. Many hunters

and gun owners are

unaware of the typical,

relatively low, coverage

afforded to firearms.

Many landowners lease

hunting land to others;

those landowners should

review their leases and

their insurance coverage to

ensure they are protected

in the event of an accident

on their property.

> Josh Johanningmeier is the IIAW’s General Counsel. Call the Legal Services Hotline at (877) 236-1669.

C

M

Y

CM

MY

CY

CMY

K

Surety Ad final (w bleeds).pdf 1 8/23/2012 2:44:43 PM


The company president was excited about a popular cartoon depicting warriors fighting a battle with bows-and-arrows, along with a suited salesman carrying a machine gun and a briefcase. “Can’t you see I have no time to see a salesman,” says a beleaguered officer, “I’ve got a battle to fight.”

WISCONSIN INDEPENDENT AGENT 22

Ironically, this is the same executive who nixed new opportunities for his company to grow its sales.

Ideas challenging the status quo can face roadblocks in just about any company, whether in sales, marketing or, most importantly, the future. Yet, it may be that those are ideas that can let in more light so that effective change can take place. Here are six of them:

BUSINESS OWNERS CAN BE WRONG. Scratch entrepreneurs and it doesn’t take much to discover their immense pride in the business and, ironically, a dogmatic belief in their own ideas that may do it damage.

A president of a highly successful industrial business became so enamored with breaking new ground in his industry by selling equipment on the Internet that he made a substantial investment in an eCommerce Website without taking the time to determine whether or not customers would purchase his company’s type of products online. The venture failed and, worse yet, the recession began taking its toll on the economy.

What we think about our business can distort reality and interfere with meeting today’s challenges and tomorrow’s opportunities.

EVERYTHING IS NEVER ON THE TABLE. It’s pure posturing and anyone who puts it to the test gets hurt. Just ask GM’s recently fired marketing chief, Joel Ewanick. He’s the one who came up the campaigns for Chevrolet, “Love it or return it” and “Chevy runs deep.” He also opted out of Super Bowl XII advertising and cancelled GM’s Facebook ads just prior to the social media giant going public.

Most revealing, he also discovered that other things run even deeper at GM, namely, “That ain’t the way we do it around here.” When someone says, “Everything is on the table,” don’t believe it. They may think they mean it, but putting them to the test can be dangerous. There are always ideas, practices

and activities that are untouchable.

IT’S ALL ABOUT STRATEGY. When the Boston Business Journal (BBJ) asked Mark B. Kerwin, Deputy Director and Chief Financial Officer of Boston’s Museum of Fine Arts, about the biggest challenge he faces in his field today, he gave his answer in six words: “Staying strategic as opposed to tactical.”

Steve Jobs couldn’t have said it better. First and foremost, he was a brilliant strategist.

His commitment was to building a company that built beautiful things that consumers admire and love to use in their daily lives. It’s no accident that M.G. Siegler of TechCrunch describes Mountain Lion, Apple’s latest

operating system, as “definitely the most polished and robust version of OS X yet.”

Tactics are easier to understand and far more fun, but most of the time, they’re temporary and don’t advance us to the goal.

“CUSTOMERS FOR LIFE” IS DECEPTION. Why? Because it’s counter-intuitive, naïve –– and dangerous. Yet, these three words seem so ingrained in our thinking that Googling them produces 1,390,000 results. Even against such a mountain of evidence, it’s still an illusion.

On the face of it, it should be obvious that customers are never for life: they die, find a better deal, move, change their lifestyles, retire or want something new. In B2B, some merge or sell, go out of business, or become obsolete.

In spite of doing everything possible to keep customers happy and satisfied, they still leave. Yet, bloggers, speakers, and business writers implore us to embrace the belief that we can keep them forever.

Businesses are best served by abandoning mythical thinking, such as “customers for life,” and embrace reality with a “nothing is forever” mentality.

MARKETING MINUTE

Businesses are best served by abandoning mythical thinking,

such as “customers for life,” and embrace reality with a

“nothing is forever” mentality.

BUSINESS IDEAS TO CHALLENGE OUR THINKING

MARKETING MINUTE

> John Graham of GrahamComm is a marketing and sales consultant and business writer. He publishes a monthly eNewsletter, “No Nonsense Marketing & Sales.” Contact him at [email protected], 617.774.9759 or johnrgraham.com.

DOWNED BY THE DEMON OF SELF-DECEPTION. More than just about anything else, self-deception is the biggest human stumbling block, and just about every business is plagued with this unrelenting problem.In a study of a group of college students, researchers discovered that cheating gives students false confidence in their abilities, according to a report in the Chronicle of Higher Education. The upshot seemed to be that once we lie, it doesn’t take much for us to convince ourselves that we’re not lying.

Ask the president of a highly successful consumer services company to describe his primary business objective and he would undoubtedly say, “Putting our customers first.” In all sincerity, he would mean it. Yet, this same president sent a letter to his customers filled with dozens of references as to why customers should do business with his company, but no rationale was given as to why it would benefit the customers to do so. It was if he was writing the letter to himself.

To test out just how widespread self-deception is in business, watch the employees’ faces when the president or sales manager is holding

forth on the company’s newest product launch, announcing next year’s goals or the need to increase productivity. Then, you can see the clash of two quite different realities.

FORGET ABOUT “THE GREAT PERSON.” At Talbot’s, the women’s clothing retailer, there has been a parade of CEOs, each one with the answer to the company’s troubles and each one taking it deeper into lower sales and increased debt. The story is the same at Yahoo, where hope now hangs on yet another CEO.

It might be helpful if boards of directors stopped wanting to believe that the next executive holds the key. The “Great (Man) Person Theory” has had its day, even though its vestiges can be found everywhere, including business.

The fallacy rests in believing that success will follow with the right person. But, as science writer Matt Ridley says (WSJ, 5/22/10), innovation depends on exchange. For example, he points to Uruk, in Southern Mesopotamia. It “was probably the first city the world has ever seen, housing more than 50,000 people within its six miles of

walls. Uruk, its agriculture made prosperous by sophisticated irrigation canals, was home to the first class of middlemen, trade intermediaries.”

Arguably, it’s the same in America: Silicon Valley in technology, Boston in medical care, New York in finance and Las Vegas in casinos.

As Ridley points out, “In the modern world, innovation is a collective enterprise that relies on exchange.”

In business, as elsewhere, ideas, as much as action, make a difference. Companies that put action above ideas may find that they are doing a lot of things backwards.


West Des Moines, IA 800.274.3531 www.imtins.com

We are seeking quality agency appointments to become part of our “Worry Free” family. Simply bundle your customer’s auto, home and business insurance into IMT’s “Worry Free” bucket, and you will be worry free too.


Liability from cyber attacks is on the rise and the media is constantly reporting on companies being hacked, exposing protected personal information. What’s an agency to do to protect their client’s information? This article will shed some light on this topic.

Why should my agency care about protecting personal data? As an insurance agent you collect, use, and store what is likely considered personally identifiable information on a daily basis and in doing so you have an obligation to secure this information whether it is in electronic or paper form. Both state and federal privacy laws require businesses to implement and maintain reasonable procedures to protect personal data. Not doing so creates an exposure to financial loss in the way of fines and penalties, the

cost of handling a data breach including the notification, third party liability for damages caused by the data breach, and the potential cost of replacing computer equipment. In addition, a data breach can have a devastating e ect on the trust and loyalty of customers and can quickly ruin the reputation of the agency. Also keep in mind that the cost of implementing a security plan can be much less than the total cost of handling a data breach.

Is my agency legally required to protect personal information?There are a number of federal laws that apply to protecting personal information and as of today 46 states have laws on the books as well. Understanding how both state and federal laws apply to your information security procedures is important because the fines for not compiling can cripple your business. A few of the federal laws that may apply are below and you can also learn more by visiting the Legal Advocacy section of IIABA’s national Website at www.iiaba.net:

!"Fair Credit Reporting Act requires that

information generated in consumer’s credit reports is kept secure.

!"Gramm-Leach Bliley ACT applies to “financial institutions” and requires business to have reasonable procedures in place to ensure the security and confidentiality of customer information.

!"Health Insurance Portability and Accountability Act (HIPAA) requires the security of health data.

In the past several years many states have passed laws or regulations to protect the consumer’s personal information so you need be familiar with the requirements these impose on your operation. Understanding state and federal requirements is a daunting task. Here are some of the basic questions that you should consider when reviewing both federal and state laws.

!"Do I collect the types of personal information that is required to be protected? Specifically, what information needs to be protected?

!"Are there differing definitions and requirements for protecting general personal information versus personal

!"What procedures need to be in place to protect personal information based on the nature and size of my

!"Are there different security requirements for personal data stored internally and data transferred outside of the

!"What is considered up-to-date encryption methods?

!"How is a data breach defined?

!"What are my notification responsibilities should a breach occur?

The National Conference of State Legislatures Website (ncsl.org) offers links to

state legislation involving security breaches of personal information.

What is the potential cost of a data breach to the average agency?Civil penalties can be substantial for breaches of data with penalties up to $150,000 per breach as an example in one state. Keep in mind that these are just penalties and don’t include actual costs handling a data breach, including notifying those parties affected or the indirect costs the breach will have on the business in terms of loss of the trust of customers. A 2011 study by Symantec showed an average cost per compromised record of $214. The factors in their estimation included: legal fees, disclosure expense to contact affected parties, consulting help, and

Will Your Agency Information Security Procedures Allow You Coverage Benefits?

For an average size agency

the potential cost of a data

breach per agency is about

$255,000.

ERRORS & OMISSIONSDATA BREACH LIABILITY: IT’S SERIOUS BUSINESS

While computer hacking is

on the rise, the majority of

breaches occur from stolen

or lost equipment.

The Future One 2010 Agency Universe Study

done by the Big “I” reveals that on the average

agencies have 1,188 personal lines customers

including standard and non-standard auto,

homeowners and specialty lines. Let’s say

a producer lost a laptop that had customer

information on it or a server was hacked. For

the average agency that could translate into

an expense of about $255,000 (1,188 customers

X $214 cost per record).

implementing new technology and training.

So what’s at stake for your agency? The exposure is staggering. For an average size agency the potential cost of a data breach per agency is about $255,000. See the sidebar above for how that figure is determined. Unfortunately, the common reaction when

numbers of that size are tossed out there is that IT COULDN’T HAPPEN TO ME!

What is considered private personal information that needs to be protected? This may vary by state but in general it is a combination of first and last name in combination on other data elements. These may include:

!"Social security number.

!"Driver’s license number.

!"Financial account numbers or credit/debit card numbers along with security access codes or passwords.

!"Health records.

!"Policy numbers.

What personal information do you have in your files?The first step to protecting personal information is assessing what personal information you have in your files and who has access. Remember it’s not only data but all personal information whether electronic, paper, or voice. Take the time to do an assessment looking at the flow of information both into and out of the agency. This includes archived data, data in transit over your system, mobile devices that may leave the office, and of course that paper files. Meet with all agency staff (sales, accounting, and HR) to get a better feel for their access, including finding out if any outside contractors store customer information. When inventorying customer information keep in mind that information can be stored in or accessible through a number of different places both internally

and externally including in file cabinets, on PC hard drives and servers, laptops, cell phones, CD’s, flash-drives, carriers Website, call centers, and agency management system providers. Let the following help guide your discussion:

!"Who sends personal information to your business? Customers, carriers, or credit agencies?

!"How do you receive personal information? This can include e-mail, Website, fax, social media, or by mail.

!"What kind of personal information do you collect? Credit/debit cards, social security information, drivers IDs? Who is using that information and has access? Employees, carriers, customers, vendors?

!"Where is that information stored? Branch offices, file cabinets, files at home, servers, database, disk tapes, lap tops, desktops, cell phones?

!"Is information accessible from outside the agency or on devices used in the field?

A key risk management measure to limit your exposure from data breaches is to only keep the data you need and for only the length of time that you need it. Exercise care and implement a procedure for deposing of sensitive information. Currently, 29 states (including Wisconsin) have laws governing the disposal of personal data. Wisc. Stat. §134.97 specifies how an agency should dispose of personal information. Remember if it’s not in your system, it can’t be stolen.

What are some of the exposures agencies are facing in the protection of personal information?Exposure to a breach of data is posed by both internal and external threats. They can also be considered both physical and virtual exposures. Internal protections start with the physical security of the data contained in the office. This includes the access to the premises and work areas including security of computers, servers, and the network. While computer hacking is on the rise, the majority of breaches occur from stolen or lost equipment. Here are some risk management considerations to combat physical threats:

!"Secure the building with a security system for authorized access only.

!"File cabinets should be locked and work stations clear of hard copy personal information.

!"Secure the area containing networks servers and limit access.

!"Appropriately screen cleaning crews providing service.

!"When employees leave the agency make sure that all agency owned security equipment (all keys) and computers are returned, and system access terminated.

!"All agency computers and mobile devices should require passwords that are required to change every 90 days and employees should log off or lock their computers when left unattended. Staff should not share passwords.

!"Implement encryption software on all laptops and mobile devices along with ability to wipe clean if lost.

!"Don’t keep personal information on hard drives of desktops, laptops, and mobile devices.

!"Do not leave portable devices unattended while out of the office, especially in cars.

Protecting data transmitted over the agency network and computers, portable devices, Websites, and home computers is critical. There is exposure to data loss from viruses, hackers, spam, and malware. Specific attention needs to be paid to securing e-mails

CONTINUED ON NEXT PAGE


AUTO • HOME • BUSINESS • LIFE • HEALTH

Join our network of

independent insurance

professionals and discover

how easy it is to do

business with us!

2505 Court StreetPekin, Illinois 61558800-322-0160, Extension 2394www.pekininsurance.com Dave Ganschow

Extension 2178

Tom SommersExtension 3611

Mike TietzExtension 3081

In all we do, we are dedicated to going

Beyond the expected.®

Tom BussCPCU, AIC

Extension 3037Rebecca GorschExtension 3641

and personal information that is collected from the agency Website. Agencies handle insureds applications on a daily basis where information is transmitted to the agency and then to carriers. Here are some things you can do to protect from external threats:

!"Use a network professional to insure that are exposures are identified and addressed.

!"Install strong firewall protection that is kept up-to-date to protect the agency network.

!"Password-protect all agency WiFi connections.

!"Implement virus and malware protection on servers, desktops, and portable devices and periodically update.

!"All data back-ups should be password-protected and encrypted.

!"Employees should always connect through

office through a SSL/VPN connection.

!"If collecting personal information through your Website or providing insureds access to policy information, be sure you are using SSL connection (https).

!"Check with carriers to verify data transmitted to them, including e-mails, is secure.

!"Implement a solution to secure e-mails with both carriers and customers. Transport Layer Security (TLS) is a possible solution.

You may not be able to control what and how unsolicited information is transmitted to the agency but once you have it in your possession it is your responsibility to protect it. We encourage you to make the investment to proactively work with an IT solutions provider to secure data as opposed to incurring the costs after a data breach has occurred.

What resources are available to Big “I” members to help them address agency information security?

The IIABA’s Agents Council for Technology (ACT) has developed information on protecting client information which is available on the Big “I” Risk Management Website – E&O Happens under the Publications and Media tab and menu item titled Agents Council for Technology. A sample agency security plan is available as a starting point for the agency. The Podcast section also includes an excellent Webinar recording entitled Implementing an Effective Information Security Program in your Agency and the most recent Webinar called Managing Agency E&O Exposure to Data Breaches and Cyber Liability. To learn more about securing e-mail using TLS encryption the Website also has several articles and a recorded Webinar. These materials can also be found at www.iiaba.net/ACT.

DATA BREACH LIABILITY: IT’S SERIOUS BUSINESSCONTINUED FROM PREVIOUS PAGE

“ I’m a mom, and for me excellent communication is important. The same holds true for my role as a Bond Underwriter. Developing personal relationships with our customers is essential—it’s who we are.”

Robyn Shepherd Bond Underwriter—professional listener and “customer care” expert

Connect with Robyn on LinkedIn!

RELATIONSHIPSIT’S WHY WE STAND OUT FROM THE CROWD

800.538.4796 jmwilson.com

PIA National 2011 MGA of the YearProperty/Casualty Professional Liability Surety Commercial Transportation Personal Lines Premium Finance

When one does not understand the real differences between two or more products, 99 times out of 100, price will be the deciding factor. Why is that? It’s the one clear difference. It’s simple: If Box A is assumed to be the same as Box B, but Box A is one dollar and Box B is 2 dollars, you’ll buy Box A because it’s half the price of Box B. Now, intuitively, we all know that there has to be a reason why Box B is twice the price. However, if we talk to the salesperson for Box B and he or she does not differentiate the two, we’ll assume the person selling Box B simply priced Box A at a higher price. No one wants to get taken. The

customer will buy Box A. Most prospects and customers don’t know our products and services as well as we do. They also do not want to put a ton of work into the process of getting educated or finding out all the differences for themselves. They rely on the salesperson for that. Many will test us by saying, “Hey, this one is half the price of yours, I’m buying this one.” If we don’t do a good job of educating why the product is twice the price, a price war will ensue, and the customer will assume that price IS then the only difference. Then they will buy the cheaper product. The bottom line: Assuming you price your product with integrity, the only way your product costs more money than a competitive product is if it is more valuable than the competitive product. When a prospect pits you against the competition based upon price, they are really saying, “Okay, the only difference I see is price and you’re higher priced, so I’m not going with you. If price IS the only difference you will

cut your price to or below your competitor. If price is not the only issue, you will now educate me as to why your product is more valuable.” Again, people assume the higher priced product is more valuable and they are waiting for you to educate them as to why. Many salespeople go straight to price assuming that is the quickest way to the sale. Through their actions they tell the prospect, “My product is NOT more valuable, price is the only difference, and now I’ll do what I can to cut my price.” Educate as to why your product costs more and build as much value as possible; cut price as an absolute last resort.

WHY PROSPECTS FOCUS ON PRICEHow many times have you found yourself in a price war when competing for business? How many times has a salesperson found him or herself in a price war when you were the purchaser?

> John Chapin has more than 21 years of sales experience and is the co-founder of Complete Selling Inc. For free access to John’s whitepaper on what it takes to be successful in sales, visit completeselling.com.

Educate your customer on value, not price.


Are you prepared for the unthinkable?

I HAVE WORKED WITH THE FAMILIES, estates and partners of several agency owners who have passed away. It is tragic. Most of the deaths occurred unexpectedly. In all cases, the person who passed left their families, estates and partners with far more problems than necessary.

My question to you is this: If you passed away tomorrow, would you leave the people around you with unnecessary problems?

AGENCY VALUEOne situation I absolutely dread is when I have to tell a family that the agency is not worth anything near what the recently passed relative (usually the father) told them it was worth. Agency values are not what they once were.

Get your agency valued using real world numbers so everyone’s expectations are realistic. Put yourself in their shoes. The income from the agency will be eliminated when it’s sold. Will the agency’s sale price be enough to support their standard of living?

Being proactive also brings to light tasks that can be done to increase the value. One of the saddest examples is bad debt. I have seen a number of agency owners die with sizeable accounts receivable that were uncollectible and quite old. I have seen these debts total 20 to 30 percent of the agency’s commissions. Even if an agency is worth

some high multiple, those bad debts have to be deducted.

Another horrible situation is a widow learning that her husband did not really own all the business on the books. He always meant to get around to fixing his producers’ contracts, but died before he did. Also, there have been situations where the deceased wrote all the key accounts with no plan in place as to who should take over those accounts. Most likely, those accounts will not stay with the agency. Consequently, the value is not going to be what the estate may have thought.

Here’s another example: Keeping lousy books. It’s smart and it’s good business to keep an organized and accurate ledger, but it’s often not given the attention that it should. If a person dies and the books are flawed, the agency is not going to sell for full price. Who will pay full price for an agency when no one knows the actual income and the true state of its balance sheet?

I know many readers are thinking that these things never happen, but they do. How do you know that you do not have similar issues if you have not gone through the process of having your agency valued by a competent agency appraiser? As one client said not long ago, “I did not realize I had so many holes in my data until you valued it. I understand now why you need that information.”

AGENCY OWNERSHIPDo you really own your agency? I have seen a number of situations where the agency’s contracts were so poorly written the agency did not clearly own the business on its books. Maybe the owner knew this at one time but had forgotten about it because nothing bad had happened. In the course of the agency’s daily business, it didn’t really matter. But when an agency is being valued, especially when it’s being valued because the owner has died, it does matter. That is not the time to discover the problem. As more and more clusters develop and even age, this is going to become a bigger problem.

BUY-SELL AGREEMENTSWhat happens when a person dies with a bad buy-sell agreement with their partner? Unless luck and goodwill are in great supply,

nothing good happens. The partner may have been the greatest, most unselfish person on earth, but is his or her family just as unselfish? This is important because at least for a time, the dead partner’s family will be partners, too.

For example: What happens when the surviving partner realizes the buy-sell agreement poorly defines value? This may leave the door open for the dead partner’s estate to claim whatever value they desire. I have seen, more than once, claims of two times premiums! It is not always that the other side is greedy; often they are just uneducated about the insurance world. Combine that with grief and a feeling of immense vulnerability, and it may mean they won’t want to settle for a reasonable value.

Another great example is where the agency’s balance sheet is poor and the estate’s trusted advisor discovers some rule of thumb that agencies are worth some multiple of commissions, but fails to understand that balance sheet deficits (especially trust ratio deficits) must be deducted. If you have ever tried to buy out a partner at full price while the agency has a trust ratio deficit, you will know how difficult it is to make payroll and other payments.

LAST BUT NOT LEASTThe time is now to get your business matters in order. Do it before the unthinkable happens. Survivors are already in pain and grieving from the loss of loved one or partner. Don’t compound the pain by leaving them a messy business situation.

NOTE: None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this article. Regulated individuals/entities should also ensure that they comply with all applicable laws, rules, and regulations.

DEALING WITH DEATH IN AN AGENCY

WISCONSIN INDEPENDENT AGENT 28

If you passed away

tomorrow, would you

leave the people around

you with unnecessary

problems?

The time is now to get

your business matters

in order. Do it before the

unthinkable happens.

> Chris Burand is president of Burand & Associates, LLC, an insurance agency consulting firm. Readers may contact Chris at 719.485.3868, or by e-mail at [email protected].

AmTrust has a bouquet of coverage for small businesses

Complementary workers’ comp and BOP coverage

By offering a competitive businessowners policy (BOP) as an individual product or as an accompaniment to our workers’ compensation insurance or commercial auto products, AmTrust has a selection that serves small businesses well.

Better yet, we offer a 10% discount on BOP for our existing workers’ compensation policyholders. An umbrella policy is also available, with limits ranging from $1 million to $10 million to fit over our BOP and commercial auto products.

Your Success is Our Policy.®

AmTrust North AmericaAn AmTrust Financial Company

A.M. Best rating of “A” (Excellent) FSC IX

For more information about how you can write business with AmTrust, please call 877.528.7878 or visit www.amtrustnorthamerica.com.


F R O M T H E A R C H I V E S

The 1993-94 IIA of Wisconsin Board of Directors. Front row: Roger Abbott, Earl Hill, Paul Leitch, IIAW President Robert Cadwell Sr., Carroll Dana and Teresa Van Gelder.

Back row: Ron Anders, Bob Nadolske, Ernie Wenzel, Mark Truyman, Jim Oldenburg, Bob Ourada, Charlie Meldrum and Wayne Sather.

The Wisconsin Department of Health Services (DHS) recently requested $650 million in new Medicaid funding for the next two-year state budget to meet expected growth in the program, which provides health care for the poor and elderly.

However, the agency’s request doesn’t reflect changes required under the federal Patient Protection and Affordable Care Act (PPACA). Gov. Scott Walker opposes PPACA and has delayed implementation of the law’s key provisions in Wisconsin. He has said he will not address the issue until after the November elections.

The federal law requires states to establish health insurance exchanges where uninsured consumers can shop for coverage at competitive rates. States must submit their exchange plans to Washington by Jan.1 or risk having the federal government create one for them.

In addition to suspending work on a state-based exchange, Wisconsin is among a handful of states that have not yet agreed to comply with the law’s Medicaid expansion requirement. While the U.S. Supreme Court upheld most of the health care law, it ruled the federal government can’t withhold

existing Medicaid funding from states that do not expand their programs as outlined by PPACA.

Walker has yet to decide whether to pursue PPACA’s Medicaid expansion, but state Health Secretary Dennis Smith, a Walker appointee, views it as optional and believes it could be too costly to sustain. In fact, following the High Court’s ruling, Smith said the state may renew their request with Washington to trim Medicaid enrollment.

Smith also said his agency will continue to monitor PPACA developments at the national level and will be prepared to take appropriate actions to comply with the law if necessary. He also cautioned the uncertainty surrounding PPACA could affect the state’s Medicaid budget moving forward and DHS will continue to look for efficiencies and cost-savings opportunities.

Uncertainly surrounding PPACA also concerns Wisconsin Insurance Commissioner Ted Nickel, who told federal health officials that the state needs more information before it can select an Essential Health Benefits (EHB) plan required by the federal reform law.

Under the law, individual and small group insurance plans offered through state health insurance exchanges must cover 10 categories of essential health benefits: ambulance, emergency, hospitalization, maternity, mental health and substance abuse, prescription drugs, rehabilitative care, laboratory, preventative care and pediatric services.

The U.S. Department of Health and Human Services (HHS) set a Sept. 30 deadline for states to identify a private health plan whose coverage could be used as a benchmark for all health insurance sold starting in 2014.

In a letter to U.S. Health Secretary Kathleen Sebelius toward the end of September, Nickel cited a lack of guidance from the federal government and said Wisconsin did not have the necessary information to select an Essential Health Benefits benchmark plan. Nickel also requested pushing the deadline back to 60 days after federal officials issue the final EHB regulations.

There is no penalty for states that don’t select an EHB plan, but for states that don’t make a decision, the benchmark becomes the state’s largest small group plan. However, an HHS official has said the Sept. 30 deadline was merely a suggestion and the Department will work with states that have yet to select an EHB plan.

The IIAW Government Affairs team will continue to closely watch PPACA developments in Wisconsin and how its implementation could impact independent insurance agents.

WISCONSIN TAKES WAIT AND SEE APPROACH ON FEDERAL HEALTH CARE REFORM

> Tim Hoven is the founder of Hoven Consulting in Madison, Wisconsin. Tim also served in the Legislature from 1994 to 2002. Hoven Consulting is the Government Affairs team for the IIA of Wisconsin.

Walker has yet to decide

whether to pursue PPACA’s

Medicaid expansion, but state

Health Secretary Dennis Smith,

a Walker appointee, views it as

optional and believes it could

be too costly to sustain.

GOVERNMENT AFFAIRS


.

Visit www.iiaba.net/EOContact !"#$"%%&$!#'(!)#*"+,#-!.!&#.--"$(./"%#!"0.*1

the Big “I” Professional Liability Program

Prevent. Our exclusive risk management

resources help your agency avoid

making common preventable

mistakes.

Protect.Our superior coverage through

!"#$$%&'%()*+)*,-'%!)./0)1$%,12%our experienced claims teams are in

your corner in the event of a claim.

Prosper. When you know you have the

3'$-%,4'156%789%:*)-'50)1;%6)/%can focus on growing your most

important asset–your business.

2'(--#3&#4",5",.!&#2"6+/"%-#5"6($*)"60&,-7#Don’t miss out on the invaluable risk management resources available exclusively to you. Log in to www.iiaba.net/EOHappens !"#.$$&--#$6.(8-#-!./-/$-9#5,&:&%/"%#!""6-9#(%-(;)<+6#.,/$6&-#.%0#8",&1

<='%>#4%?@A%,12%!"#$$%&'%()*+)*,-'%!)./0)1$%,*'%5)BB#C'2%-)%+*)D#2#14%@@E>E%B'B3'*$%"#-=%.',2#14%'24'%,4'156%789%+*)2/5-$%,12%$'*D#5'$F%@@E>E%,12%#-$%G'2'*,0)1%)G%HI%$-,-'%,$$)5#,0)1$%'12)*$'%-='%5)B+*'='1$#D'%+*)G'$$#)1,.%.#,3#.#-6%+*)4*,B%)J'*'2%36%!"#$$%&'%()*+)*,-'%!)./0)1$F%

@1$/*,15'%+*)2/5-$%/12'*"*#C'1%36%K'$-+)*-%@1$/*,15'%()*+)*,0)1;%9D'*.,12%:,*L;%M,1$,$F%K'$-+)*-%#$%,%B'B3'*%)G%!"#$$%&'%()*+)*,-'%!)./0)1$%,12%#$%.#5'1$'2%#1%,..%HN%$-,-'$%,12%-='%O#$-*#5-%)G%()./B3#,F

WHY Walk

when you can soar?

A PIECE FOR THE ROAD.

Transportation insurance isn’t a puzzle to us – we’re experts on the road.

We’ve been insuring truckers for years. We !t your need. Call us today.

Log on to SPOT, our online rating tool at:www.ericksonlarseninc.com Excellence & Leadership

“We worked with Locke Lord to create this document at the request of a number of AUGIE participants and others to serve as a guide for agents, distributors and carriers who want to use or enable electronic signatures but are not sure how to get started,” said Marcia Berner, director of implementation services. “The biggest issue is the lack of comfort with the legal requirements and the inability to establish a process or choose a technology. While ACORD is not providing legal advice in any way, by commissioning Locke Lord, a firm which has much experience in this space, we feel we can help support the industry and our membership.” The analysis suggests that implementers start with one process and product. To further support such efforts, it lists a number of general best practices, as well as specific ones for insurers and producers. For example, at a higher level, the analysis recommends that “emails should be sent with links to a secure site” and that it is essential to determine a bounce-back policy. More specifically, it tells insurers to “develop an efficient method to review and verify Producers” requests for approval of their electronic signature or electronic delivery processes. By fostering a greater understanding of the legal requirements for both electronic signatures and electronic delivery of documents, the analysis serves as a foundational document for insurers and producers. It also provides definitions of commonly used terms and includes overviews of both ESIGN and UETA, special considerations for using voice signatures, and subjects such as record retention and admissibility of evidence in court. It builds upon and broadens previous works by the Insured Retirement Institute and the Depository Trust & Clearing Corp. that focused more specifically on the annuities sector. “Over the past few years, interest and work around e-Signatures and e-Delivery increased dramatically,” said Berner. “Agents and carriers came to us with a strong desire to implement them, but with major concerns about the right way to do both and to work with each other in the process. By talking with both groups, it became clear that both have common questions and concerns mostly based in making sure they are clear on the legal requirements and how to make sure they are met.”

Find the entire Locke Lord report at acord.org in the Knowledge Center. ACORD will be hosting a series of related Webinars over the coming months. Information on the schedule and registration will be available online.

ACORD has released a new strategic analysis on e-Signatures and e-Delivery in the insurance industry. Developed by international law firm Locke Lord LLP at the request of ACORD, the document provides an overview of the legal requirements and best practices for implementation.

ACORD PROVIDES GUIDANCE ON E-SIGNATURES & E-DELIVERY


Food for Thought

In 1923, Harry Steenbock, a biochemist

working at UW-Madison, invented the

irradiation process by which foods are

fortified with Vitamin D. After irradiating

rodent food, Steenbock discovered the

rodents were cured of rickets. Using $300

of his own money, Steenbock patented

his invention. By the expiration of his

patent in 1945, rickets had been all but

eliminated in the US. Steenbock also was

among the founders of the Wisconsin

Alumni Research Foundation in 1925.

VITAMIN D FOR DELICIOUS

ELECTION RECOLLECTIONS

Insurance underwritten by Auto Club Insurance Association or Auto Club Group Insurance Company.

!""!#$%&'$()*&!+*,-!"#$%&&&'(%)*+,"-.%"/%%0$1*2*$1*$+%0$(3-4$5*%&6*$+(%%4$1%7$8"9%:-*;*$1"3(%<*$*/#+(=

!"###"$%&'(")*%+',*-

!"./01+*2*23+"4/002))2/'"1%/,%&0

!"56*)*&'(2',"4/'*2',+'47"1%/,%&0

!"8''/3&*23+"4/9/1"&(3+%*2)2',"%+)/6%4+)

./0)1213)4/01)50167)0168/38)7/)699)/:0);/<10=:>))

?0639)7/)@/:0)A38:063B1)B600A10)>A31C:;D)B/376B7E

>*#1#%)#*$",%4+%?@ABACABC?DE%"-%FG$#*$",H&&&I#(5"$(#$=5";%+"149J

Election Day is November 7 and that signals the

time when Americans are free from fear mongering

political ads for at least five minutes. In other

election news:

> The Antimasonic Party was the first to hold an

official party convention to nominate candidates

for the president and vice president in 1832. Such

conventions are now part of the standard process for

the Republican and Democratic parties.

> Four times in the history of presidential elections,

the candidate who won the most popular votes has

not been elected president. This occurred in the 1824

(John Quincy Adams), 1876 (Rutherford B. Hayes),

1888 (Benjamin Harrison), and 2000 (George W. Bush)

elections.

> November was chosen as the election month

because it was a convenient time for farmers when

the weather was still nice enough to travel to the

county seat and the bulk of their harvest chores were

finished. Source: Random History.com

!"#$"%&'(

)'*+%,-./0

www.acuity.com

facebook.com/acuitywowIntroducing Eva & Ella, the ACUITY Cuties

papers. online classroomicles. Ask an Expert.!com

mentary. critical businessssues. Best Practices. Re-earch Library. white pap

online classroom. articlesAsk an Expert.!commentacritical business issues Be

www.independentagent.com/vu

The Big “I”Virtual University is building the best agencies throughquality education, superior resources and expert advice.

Need an answer? Ask an Expert and get a personalized response from!one of over 50 industry professionals.

Hundreds of insurance, business and technology articles are available in the Research Library.!

The Best Practices program provides real-life agency benchmarks and a wide variety of agency management tools.

Over 100 courses are at your fingertips in the online class-room. Earn designations, complete C.E. requirements or become an efficient manager.

The BIG “I”®: Results for Independent Agents in Research and Education”

Critical business issues are addressed through white papers, articles and commentary about topics that impact your future.!

Build a Better Agency

� ""

november 2012 iiaw magazine

Documents