september 2012 magazine

wisconsinindependent agent

SEPTEMBER 2012MIKE FROH, 2012-13 IIAW PRESIDENT

WISCONSIN INDEPENDENT AGENTSEPTEMBER 2012 3

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

SEPTEMBER 2012Eric Schwartz, Editor

> OUR ADVERTISERS

AAA ................................................................ 48

ACUITY Insurance ............................................ 51

AmTrust North America .................................. 44

Arthur J. Gallagher......................................... 45

Badger Mutual ................................................ 34

Big “I” Professional Liability .......................... 35

Burns & Wilcox ............................................... 26

IMT Insurance ................................................. 25

Integrity Insurance ..........................................11

JM Wilson ....................................................... 37

Pekin Insurance .............................................. 43

RLI ................................................................. 52

SECURA Insurance ........................................... 17

SFM ................................................................ 32

Society Insurance........................................... 30

The Hanover ..................................................... 8

Trusted Choice ................................................ 14

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

Wilson Mutual ................................................. 36

2012-13 Exclusive Company Sponsor Profiles! . . . . . . . . . . . . . 4

Open Door Policy Paul Ryan: Ready For The VP Challenge . . . . . . . . . . . . . . . . .24

Young Agents Conference In The Dells . . . . . . . . . . . . . . . . . .28

Errors & Omissions Document, Document, Document! . . . . . . . . . . . . . . . . . . . . . . . 34

Mike Froh: 2012-13 IIAW President . . . . . . . . . . . . . . . . . . . . . . 38

Commentary From Counsel Family And Medical Leave In Wisconsin . . . . . . . . . . . . . . . . . .42

Marketing Minute Seductive Sin Of Sales & Marketing Certainty . . . . . . . . . . . .46

Government Affairs Political Power Shifts In State Senate . . . . . . . . . . . . . . . . . . .49

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… Mike Froh is part owner and sales manager

of Burkart-Heisdorf Insurance in Sheboygan.

On Sept. 1, he assumes another role as the

president of the IIA of Wisconsin for 2012-13.

Mike’s been active in the Association for most

of his 41 years in the industry. His experience

will benefit the Association and we can’t wait to

get the year going with Mike at the helm! Now

a past president, Mike Hierl did an incredible

job of steering the Association during a time

of transition and presiding over a fantastic

convention that featured Gov. Walker. Mike

deserves a lot of gratitude and applause for his

fine work over the past year. We are sure he will

continue his dedication to the IIAW as chairman

of the board. Here’s to another great year!

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WISCONSIN INDEPENDENT AGENTSEPTEMBER 2012 5WISCONSIN INDEPENDENT AGENT SEPTEMBER 2012 4

Products Company Specializes In:The Auto Club Group Insurance Co. and Auto Club Insurance Association underwrite the insurance offered by AAA Wisconsin, which is part of the Auto Club Group, the largest affiliation of AAA clubs in the Midwest and South with more than 8 million members in 11 states. We offer personal lines auto, home, umbrella and recreational vehicle products. Through our affiliate, AAA Life Insurance Company, we also offer Term, UL, Whole Life and annuities. Our Independent Agents also sell the safety and security of our AAA membership. The membership offers 24-hour emergency road service, exclusive member discounts of up to 20 percent or more on hotels, dining, shopping, free maps, and discounts off of auto and home insurance.

Outlook for the Company’s FutureIn Wisconsin where we have 620,000 members, AAA ranks in the top 10 largest writers of personal automobile and homeowners. Our goal is to become a premiere personal lines insurer and we plan to do that by providing a wide range of competitively priced products and excellent service to our 165 independent agencies in Wisconsin. We value our brand and work toward building strong partnerships with our independent agents and at the same time continue our commitment to public service and traffic safety. AAA is committed to the independent agency distribution channel.

Other CommentsAAA is the insurance industry leader when it comes to advocating for the motoring public. Since AAA was formed on March 4, 1902, the organization has been campaigning for better roads, safer automobiles and uniform traffic laws and signage. Today as one of the largest membership organizations in the nation, we continue to advocate for all motorists, from our youngest citizens and the need to keep them secure in car seats, to our teen drivers in our driver training classes, and to our seasoned drivers and their desire to remain mobile for as long as safely possible. We are also proud of the fact that AAA is the largest leisure travel agency in the country.

Company Web site: AAA.com

AAA Wisconsin, a member of the Auto Club Group

Location of Company Headquarters: Madison, WIFounded: 1902Officers: Chuck Podowski, Chief Executive Officer Terry McElroy, ACG Executive Vice President John Tomlin, ACG Chief Operating Officer Steve Wagner, President – ACG North Field Operations Fausto Martin, Vice President and Chief Claim Officer Steve Brown, Vice President – Insurance Operations Tom Frymark, Regional President, Wisconsin Heidi Nienow, Regional Sales Director, Wisconsin

Tom Frymark

Products Company Specializes In:

Commercial Lines: ACUITY writes accounts of virtually any size, from small Bis-Pak (BOP) policies to accounts generating millions of dollars in premium. We emphasize underwriting discipline and utilize loss control to help pre-qualify accounts. This enables us to be open to many classes, including the best of tougher classes other companies won’t write. Our Bis-Pak is one of the broadest of its kind in the industry and includes ten different plans. Our Internet rating tools make it easy for agents to quote and apply online, and ACUITY ASIST delivers actual policies within seconds. Because of these capabilities, a full 80 percent of new policies are rated and submitted electronically.

Although we write a very broad range of classes, we emphasize contractors, manufacturers, mercantile, service, truckers, and offices, and we offer specialized coverages needed by those accounts. Although we are a standard market, our ACUITY Edge commercial auto product provides agents a terrific market to write business that does not fit regular guidelines.

Personal Lines: ACUITY is one of the broadest personal lines markets in the industry. We emphasize package policies, including our Per-Pak and Road and Residence, but we also write many monoline accounts. ACUITY is known for offering coverages many carriers will not, such as Home-Biz, UM-PD, Car Damage Replacement Cost, and OEM Parts. We provide enhancement endorsements to expand our competitive basic programs. We have two motorcycle programs and a broad nonstandard auto market.

Because of the robust online capabilities we offer agents, 99.9 percent of applications come to us electronically. In addition to

real-time online rating, we deliver actual policies to agents within seconds with ACUITY ASIST.

Outlook for the Company’s FutureThrough the first six months of 2012, written premium for ACUITY is up an astonishing 16 percent putting the company on track to add $125 million to its top line this year. Policy count has also increased to an all-time high, surpassing the quarter-million mark. ACUITY continues to see strong sales performance in both personal and commercial lines business, and we expect to maintain this momentum into the future for several reasons.

A key reason for our optimistic outlook is our faith in and support of the Independent Agent distribution channel. We lead the industry in interfacing our online capabilities to management systems agents already have on their desktops. ACUITY’s technology leadership is proven not just by the high level of use of our systems by agents, but by the recognition we have received. We have earned more technology awards from industry standards association ACORD than any carrier in the nation. We have been named by InformationWeek Magazine as one of the Top 100 technology firms in the country among all industries.

ACUITY also offers financial strength and stability. We are rated A+ by both A.M. Best and Standard & Poor’s and are one the top 100 P&C insurers in the country based on size. We have also been named by Ward Financial Group, an independent industry benchmarking organization, as one of the 50 best-run insurers in the nation for the past 13 years, putting us in the top two percent of companies nationwide.

ACUITY

Location of Company Headquarters: Sheboygan, WIFounded: 1925Officers: Ben Salzmann, President & CEO Ed Felchner, Vice President - Marketing & Personal Lines Jamie Loiacono, Vice President - Claims Sheri Murphy, Vice President - Services & Administration Pat Tures, Vice President - Actuarial & Strategic Information Neal Ruffalo, Vice President - Enterprise Technology Lynn Coady, Vice President - Human Resources

Ben Salzmann

CONTINUED ON PAGE 23

Wally Waldhart, Vice President - Sales & CommunicationsEd Warren, Vice President - Commercial LinesWendy Schuler, Vice President - FinanceLaura Conklin, Vice President - Business Consulting


Anthem Blue Cross and Blue Shield of Wisconsin

Location Of Company Headquarters: N17 W24340 Riverwood Drive, Pewaukee, WI 53188Founded: Proud resident of Wisconsin since 1940Officers: Angela Braly, CEO Lawrence G. Schreiber, President & GM - Wisconsin Paul Nobile, Regional Vice President Sales & Account Management - Wisconsin Keith Bell, Regional Vice President State Underwriting - Wisconsin

At Anthem Blue Cross and Blue Shield we’re committed to improving the lives of the people we serve and the health of our communities.

We believe the best health insurance helps people stay healthy. That’s why our health plans go beyond simply providing health care coverage; Anthem encourages health and wellness by doing the following: !""Offering large networks with outstanding physicians, specialists

and hospitals.!""Issuing helpful reminders when it is time for preventive

screenings.!""Providing programs and information to help individuals take

control of their health and manage chronic conditions.!""Offering comprehensive, “total body” insurance solutions

including dental coverage, life insurance and pharmacy benefits management.

Our value. We’ve been serving our members in Wisconsin since 1940. Located in Pewaukee, we have 1,377 associates on staff with over 1 million members in Wisconsin. Our parent company has over 60 years of experience and, for four years in a row, has been recognized among all health insurers as a Top 3 “America’s Most Admired Company” by Fortune magazine.

Service that exceeds expectations!""97% of claims are processed in 30 days.!""99% claims dollar accuracy.!""Live service hours: 8 a.m. to 6 p.m.!""Claims status available 24/7 online or by phone.

Extensive provider networks!""PPO: 4,458 primary care physicians, 5,606 specialists and 127

hospitals.!""HMO: 3,384 primary care physicians, 4,686 specialists and 122

hospitals.!""The BlueCard® Program provides Blue Cross and Blue Shield

members access to health care services when they’re traveling throughout the country — in addition to providers in more than 200 countries and territories worldwide.

!""Access to a network of about 62,000 participating retail pharmacies across the country, including most major chains and many independent neighborhood pharmacies.

Cutting-edge technology!""Online enrollment and self-service tools that save time for

employers and members.!""Simplified claims processing.

360° HealthOur innovative 360° Health® Program provides a customized health coverage solution for each employee. By identifying and providing the right programs and engaging employees to use them — we can help improve health and reduce medical claims.

Online toolsAnthem.com offers health and wellness tools to help your employees make the most of their health care. It includes MyHealth Assessment, an online questionnaire that helps members look for health risks and ways to be healthier. Your employees can also find up-to-date health information, watch videos about health and wellness topics, and take advantage of health-related discounts.

Integrated products and services!""Pharmacy Benefit Management.!""Behavioral and EAP.!""Dental.!""Vision.!""Life and Disability.!""Productivity Solutions.

Benefits to employer!""One account management contact.!""Single renewal process.!""Administrative efficiencies.

Lawrence Schreiber


CAPITOL INSURANCE COS.

Location Of Company Headquarters: Middleton, WIFounded: 1959Officers: David Pauly, Chairman & CEOAlan Ogilvie, Executive Vice President & COO - Property & CasualtyRichard Allen, President - Surety & Fidelity OperationsFrederick Taransky, Vice President - Finance, CFO & TreasurerMike Bondura, Vice President - ClaimsDiane West, Vice President - Human Resources & AdministrationTroy Lethem, Vice President - Information Systems, CIO David Finkelstein, Vice President - Sales & Marketing

Products Company Specializes In:Capitol Insurance Companies (“Capitol”) has been insuring business owners since 1959 earning a solid reputation for having quality products and services that meet our agent’s needs. The company underwrites specialty insurance products in niche areas of the commercial property and casualty and the fidelity and surety market segments. We offer property & casualty insurance products on either an admitted or surplus lines basis. Our products are tailored to the needs of customers in over 300 classes of business including sports leagues and camps, special events, detective agencies, security firms, banquet halls and clubs, restaurants, taverns, hotels/motels, daycare centers, beauty salons, resorts, campgrounds, mobile home parks, apartments/condominiums, vacant buildings and contractors. In addition to providing contract surety bonds for the construction sector, our commercial fidelity and surety product offerings include employee dishonesty coverage, business service bonds, judicial bonds, public official bonds and probate bonds. Capitol is a U.S. Treasury-authorized company for surety bonds with an underwriting limit of up to $21,000,000 per bond. The company also writes program business and miscellaneous professional liability insurance (e.g., Errors & Omissions).

Capitol’s operating entities are Capitol Indemnity Corporation, Capitol Specialty Insurance Corporation and Platte River Insurance Company. Our insurance products are available through a national network of insurance agents and brokers. We are licensed to underwrite insurance and surety products in all 50 states plus the District of Columbia.

Future Outlook Capitol has consistently produced an underwriting profit and has an A (“Excellent”) rating from the A.M. Best Corporation. Capitol Indemnity Corporation, Capitol Specialty Insurance Corporation and Platte River Insurance Company are subsidiaries of Alleghany Insurance Holdings LLC, whose parent company, Alleghany

Corporation, is publicly traded on the New York Stock Exchange (ticker symbol “Y”).

We are committed to the agency distribution system and are well positioned for future growth. Capitol’s success stems from our strong agency relationships – we strive to be the easiest company for our agents to do business within our market segments. Capitol looks forward to the future, confident we can continue to meet the needs of our agents and policyholders by providing them with the products and services they need to be successful in a constantly changing insurance marketplace.

Other CommentsCapitol’s focus is on the agent. We offer an Internet based rating system, electronic transmission of applications, claims reporting, quick quotes, online billing information, loss information, agency reporting and a host of other ePortal services designed to make it easier to do business with Capitol. We strive to be a leader in our agencies and focus on delivering services that meet the needs of our agents, such as flexible billing options, unique coverage enhancements, access to a broad array of specialty classes of business and quality customer service. We realize that a large part of our success is due to the relationships with our independent agency partners here in Wisconsin. We will continue to do everything we can to provide you with the tools you need to be successful both now and in the future.

Capitol’s employees are very active in our communities participating in various charitable events and sponsoring organizations such as the American Cancer Society, Big Brothers/Big Sisters, Domestic Abuse Intervention Services, the American Heart Association, and the United Way.

Company Web site: www.capitol.net

The Capitol Team

Larry Seymour, Vice President - Actuarial & Chief ActuaryKevin Klestinski, Vice President - UnderwritingKathy McCarney, Vice President - Property & Casualty OperationsCarmen Raha, Controller

WISCONSIN INDEPENDENT AGENTSEPTEMBER 2012 9Total 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

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HANOVER INSURANCE GROUP INC.

Location Of Company Headquarters: Worcester, MAFounded: 1852Officers: Frederick H. Eppinger, Chief Executive Officer Marita Zuraitis, President - The Hanover’s P&C Cos. Paul Mueller, President - The Hanover’s Midwest Region Todd Bavery, Vice President - Regional Distribution Leader Andrew Knipfer, Regional Vice President - Commercial Lines, Wis. John Vose, Assistant Regional Vice President - Personal Lines, Wis.

The Best Partner for Independent AgentsIn 2003, The Hanover set out on a journey to create a company that would deliver distinctive value to its independent agent partners and their customers every day – one that would help them to compete and win, regardless of the prevailing market conditions. Since then, The Hanover has made unprecedented investments, building a unique and special organization, staffed by committed and talented professionals, exclusively focused on the needs of its agent and broker partners.

In personal lines, The Hanover is a leading account writer, enabling its agent and broker partners to address their clients’ needs by insuring their homes, cars and other personal assets all through the same company.

The Hanover’s commercial lines business offers a wide range of innovative products and specialty capabilities. The company’s “total solution” operating model is based on experienced and insightful local underwriting talent, a broad risk appetite and specialty capabilities, as well as its commitment to responsive, effective customer service.

National Company/International ReachOver the course of its journey, The Hanover has strengthened its organization on every dimension, assembling an outstanding team of professionals nationally and internationally, building a world-class products portfolio, creating a culture of execution and developing deep, mutually beneficial partnerships with some of the very best agents and brokers in the business. As evidence of its progress, the company has expanded its reach throughout the U.S. and globally in key markets.

Making its products available to the best partner agents and brokers is a critical component of The Hanover’s strategy. By creating

franchise value, The Hanover enables its partners to further differentiate themselves in the marketplace, helping to bolster customer satisfaction, productivity and profitability above industry averages.

At a GlanceThe Hanover Insurance Group, Inc. based in Worcester, Mass is the holding company for a group of insurers that includes The Hanover Insurance Company, also in Worcester, Mass., Citizens Insurance Company of America, based in Howell, Mich., and Chaucer Holdings plc, based in London, and their affiliates. The Hanover Group offers a wide range of property and casualty products and services to businesses, individuals, and families through a select group of agents and brokers. The company is ranked among the top 25 property and casualty insurers in the United States and has been meeting its obligations to its agent partners and their customers since 1852. Through Chaucer, the company also underwrites business at Lloyd’s in several major insurance and reinsurance classes, balancing global marine, energy, non-marine and aviation with U.K. motor and nuclear. See our website at www.hanover.com. A.M. Best Company RatingThe Hanover Insurance Group’s member insurance companies are rated “A” (Excellent) by A.M. Best Company.

Local agents interested in learning more about The Hanover can contact John Vose at (262) 796-6743 or Andrew Knipfer at (262) 796-6735.

Company Web site: www.hanover.com

Fred Eppinger

WISCONSIN INDEPENDENT AGENT SEPTEMBER 2012 10

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Integrity Insurance — Investing in SuccessIntegrity Insurance, along with our network of Independent Agents, consistently provides high-quality service to our customers. Our brand promise is focused on service, trust, relationships and a commitment that our decisions and interactions will provide the ultimate customer experience – the way it should be®. Focused on “redefining partnership,” Integrity’s vision is to set the industry standard for independent agency/carrier partnerships through the depth, strength of commitment, innovation and return on investment of our relationship.

Our Voice of the Customer program gathers feedback from customers, both agents and policyholders, who have experienced our service and allows us to continually improve on that service, establishing that we are a company that listens. Results from our Spring of 2012 Policyholder survey revealed our satisfaction level increased from our 2011 survey by two points – a significant rise demonstrating strong growth in loyalty.

We believe delivering outstanding service – whether it be formalizing a consultative business model with our agents or processing claims for our insureds – is the key to our success. We’re rated “A” (Excellent) by A.M. Best and in partnership with Ohio-based Grange Insurance, a $1 billion insurance provider. The affiliation with Grange is in the tenth year and continues to drive high value for agents and policyholders served by the entire enterprise. When you deal with Integrity, we’ll take care of your needs today and we’ll be here for you tomorrow.

Commercial Lines — Best in ClassWe continue to write the best in class in almost any segment with underwriters ready to take your call. Due to the success of our field underwriter program, we’ve increased our personnel to reach out to more agents, making it even easier to do business with Integrity. We continue to offer unique products, such as our XPanded Premier®

Policy (XPP) for Manufacturers, Wholesalers, Building Owners’ and Mercantile & Services. XPP offers customized, flexible coverages to ensure you’ll have the right coverage, at the right price.

Integrity’s Loss Control representatives each boast over 25 years of experience in the industry and are well equipped to work with agents and insureds to help prevent losses that have an adverse impact on their business operations. Loss Control representatives are able to conduct onsite inspections and job-site surveys to identify loss drivers, assist in the development of workplace and fleet safety programs and offer OSHA compliance information.

Personal Lines — Ease of Doing Business with a Personal TouchAgents look to us to provide products and coverages they can offer their clients to attract and retain customers. And they can do just that with IntegrityOneSM, our “package” policy. This policy provides enhanced coverage, additional discounts and customer convenience. Further enhancements have been implemented since introduction, making this a premier product for customer satisfaction and agency retention,

Meeting the needs of a diverse client base is important. That’s why we offer PinPoint® products targeting a broad auto and home market, including renter and condo owners to help you increase sales. Try Integrity’s non-standard auto product called Passport® — it’s easy to quote, features low-cost coverage with low down payment options and offers the services of an experienced underwriter, dedicated solely to Passport Auto clients.

We’re committed to empowering our associates to provide relationship-based personalized service to build strong connections with our agency partners and develop new relationships in targeted regions.

INTEGRITY INSURANCE

Location of Company Headquarters: Appleton, WIFounded: 1933Officers: Joseph DiMartino, President & CEO Cindy Heindel, Vice President — Human Resources/Administration Brad Kelly, Vice President — Sales & Marketing Christian Martin, Vice President — Claims Jill Stache, Vice President — Commercial Lines Julie Walker, Vice President — Strategic Planning Joe DiMartino



PROGRESSIVE INSURANCE

Location of Company Headquarters: Mayfield Village, OHFounded: 1937Officers: Glenn Renwick, President & CEO John Barbagallo, Commercial Lines Group President John Sauerland, Personal Lines Group President

Products Company Specializes In:Progressive is a leading insurer of auto, motorcycle, all-terrain vehicle, boat, personal watercraft, snowmobile, recreational vehicle, travel trailer, mobile home, truck and other commercial auto insurance. In addition, umbrella provides preferred customers with even more coverage at competitive rates.

Outlook For The Company’s FutureMore than 35,000 agencies of every size use Progressive’s powerful brand, leading technology and full line of auto, special lines and commercial products to grow. Our marketing support, distinctive offerings and 24/7 service for you and your customers can help move your agency forward.

We’ll continue to support agents with industry leading technology, exceptional claims service, online and toll-free customer referrals, and a co-op marketing program to leverage our national advertising campaign efforts.

Company Web site: www.ProgressiveAgent.com

John Barbagallo

John Sauerland

THE IMT GROUP

IMT INSURANCE COMPANY & WADENA INSURANCE COMPANY

Location Of Company Headquarters: 4445 Corporate Drive, West Des Moines, IA 50266Founded: 1884Officers: Richard Keith, President & CEO Sean Kennedy, Executive Vice President Dennis Patterson, Senior Vice President – Information Systems Greg Blythe, Vice President – Finance Brad Buchanan, Vice President – Personal Lines Dalene Holland, Corporate Secretary Rich Nauman, Vice President – Marketing

Products Company Specializes In: The IMT Group uses a strong partnership with its Wisconsin Independent Agents to meet and exceed the needs of our personal lines and commercial lines clients. The IMT Group consists of IMT & Wadena Insurance Companies and insures autos, homes, businesses and more. Wadena Insurance Company has a cutting-edge Auto program along with Businessowners, Workers’ Compensation, Power Sports and Boatowners. The Wadena Businessowners program includes many specialty ‘PAKS’ such as: Auto Kleen PAK, Convenience PAK, Dine PAK, Funeral PAK, Grocery PAK, Motel PAK, Office PAK, Par PAK, Storage PAK, and Vet PAK. IMT Insurance Company offers a wide array of personal and commercial lines products including Farm Liability, Homeowners, Commercial Auto, Commercial Property and Commercial Liability. Bonds are also an important line of business at IMT. Together, IMT and Wadena offer the products needed for a well-rounded property and casualty agency.

Outlook For The Company’s Future: Both IMT and Wadena Insurance Companies are strong Midwest regional carriers that understand the needs of the people and agencies that reside in your area. Financial stability is one of our strengths — we are rated A (Excellent) by A.M. Best. We are a stable company with over 50% of our workforce being with us for over 10 years. We have also added a number of good young Generation Y employees who have generated a higher energy level within the company. One of The IMT Group’s main strengths is our agency force. We use only independent agents and have over 800 agencies in the six states in which we do business. Our goal this year is to sign up 20 new quality agencies in Wisconsin. In the past 4 years, we have signed 67 Wisconsin independent insurance agencies to new contracts with The IMT Group.

Other Comments: Another of our strengths is automation. Ask any of our 800 independent agencies which of their companies have the

best systems and most will say, “The IMT Group!” We designed the systems ourselves along with the help from our independent agents. This shows our dedication to our independent agents and the future.

The IMT Group received some awards recently. We received the 2011 Interface Partner Award from Applied Systems at the Technology, Education & Networking Conference hosted by the Applied Systems Client Network (ASCnet). Furthermore, The IMT Group was recently awarded the highest honor as a “Five Star Company of the Year” by the Independent Insurance Agents of Nebraska (IIAN).

It’s the simple things that differentiate us from our competitors. We are a strong Midwest regional mutual company that values our relationships with independent insurance agents and enjoy what we do. We like to have fun! We also strongly believe that in order to be successful, you must enjoy what you are doing. Our friendly, family-oriented employees carry the same Midwest values that our agents and insureds carry. Our agents know they can contact any of us at The IMT Group at any time.

People buy their insurance from independent agents because they know them, like them, and trust them. That is exactly the reason independent agents do business with The IMT Group. We have been doing business in the Midwest since 1884. This experience will continue to help us in the future. When you think of The IMT Group, you can be sure it is a stable company with an eye on the past and a keen sense for the future. We will continue to live up to our slogan, “Be Worry Free with IMT!”

Local independent agents interested in learning more about The IMT Group can contact Matt Casey at 1 (800) 274-3531, ext. 897.

Company Web site: www.imtins.com

Richard Keith

Brian Neitzel, Vice President – Research & Development Chris Owenson, Vice President – Claims Mark Vasey, Vice President – Commercial Lines


QBE REGIONAL INSURANCE

Location of Company Headquarters: One General Drive, Sun Prairie, WI 53596Founded: 1925Officers: Rich Kalina, Senior Vice President, Midwest Region Scott Cummins, Branch Vice President, Sun Prairie Roger Kaland, Branch Vice President, Milwaukee

Products Company Specializes In:QBE Regional has partnered with Wisconsin’s independent agents to meet the needs of main street and personal lines clients for over 80 years. With local management and claims handling, the company is represented by over 275 agents across Wisconsin and has developed commercial and personal lines products to protect consumers’ most important assets.

Commercial Lines: From small storefronts to high-value, multi-location corporations, QBE Regional provides insurance protection across a wide spectrum of Wisconsin properties. Our FlexBizSM program includes coverages, limits and extensions to meet the needs of 400 classes of business. Coverages have been tailored for new classes, including restaurants, motels and car care. QBE Regional also offers special programs for Wisconsin golf courses, well drillers, on-site waste disposal operators, wholesale beer distributors and community hospitals. Many of the state’s cheese makers are insured through our food processors package. These exposures, as well as larger accounts, benefit from our highly specialized policy, loss control and claim services.

Personal Lines: QBE Regional offers products to meet the needs of almost every household in Wisconsin. The introduction of a new processing system has improved agency efficiency and is the foundation for our FlexAuto® and FlexHomeSM products. In addition, our Crowne CondominiumSM product has been designed and priced to offer superior features and protection compared to a standard HO-6.

Outlook for the Company’s FutureAs a member of QBE North America, with gross written premium of over $7 billion in 2011, the company offers Wisconsin agents financial strength, stability and access to additional products and markets through other QBE member companies. QBE Regional continues to maintain the local presence, approachability and individual service agents have come to expect from us. We are committed to maintaining healthy products that are open for business, enabling Wisconsin agencies to quote and close more customers, with confidence.

Other CommentsQBE Regional has insured Wisconsin autos, homes and businesses since 1925. Our heritage continues with QBE Insurance Group Limited, one of the top 20 insurers and reinsurers worldwide, with operations in all key global insurance markets. QBE is an Australian listed company based in Sydney, with operations in 47 countries and over 13,000 staff worldwide. QBE’s gross written premium was $18.3 billion in 2011.

Company Web site: qbeamericas.com

FlexAuto, FlexHome, FlexBiz and Crowne Condominium are registered service marks of QBE Regional Companies (N.A.) Inc.

Rich Kalina

Trusted Choice® is teaming up with Orange County Choppers to help grant more wishes for kids with life-threatening medical conditions. Visit facebook.com/TrustedChoice and get a sneak peek of the Trusted Choice® chopper and for every post you “share” from our page during August, 2012 we’ll donate $10 to Make-A-Wish®.

Help us grant more wishes for kids with Help us grant more wishes for kids with life-threatening medical conditions, like Charlie*.

*Charlie, 4 Leukemia I wish to have an adventure play set in my backyard I can help build.


SECURA INSURANCE

Location Of Company Headquarters: Appleton, WIFounded: 1900SECURA Leaders: John Bykowski, President, CEO & Chairman of the Board Kathryn Sieman, SVP & CFO David Gross, SVP – Underwriting Operations Scott Huiras, SVP – Claims Martin Arnold, VP & Chief Actuary Jeffrey Bemis, CIO & VP – Information Technology Diana Buechel, VP – Personal Lines Underwriting Daniel Ferris, VP – General Counsel and Corporate Secretary Timothy Riedl, VP – Commercial Lines Underwriting Robert Van Beek, VP – Agency Automation Jean Van Den Brandt, VP – Marketing

Products Company Specializes In:The long-term success of SECURA Insurance is built on sound business strategy, long-term financial stability, and strong agency partnerships. Over its 112-year history, SECURA has expanded to provide a broad range of Commercial, Personal, Specialty, and Farm-Ag products to customers. The company’s reach includes nearly 450 agency partners in 13 states.

Commercial Lines represents 53 percent of SECURA’s business. Agents rely on the company’s industry-specific expertise to offer coverages for retailers, wholesalers, manufacturers, contractors, restaurants, and numerous other markets. Workers’ Compensation adds to its commercial offerings, providing business owners complete coverage through one carrier. But SECURA provides much more than insurance. Risk management professionals from the company take a consultative approach in helping policyholders minimize workplace injuries through safety solutions.

The company’s Specialty Lines launched in 2010 and is an important part of SECURA’s portfolio. These niche markets – like sports and recreation, human services, and detective and security guards – give agents more opportunities to grow their book of business.

SECURA’s MILE-STONE® home and auto package is the cornerstone of its Personal Lines and offers the finest combination of value, coverage, service, and convenience. Lifestyle enhancements such as Pet ProtectorSM, Roadside Rescuer, Travel RescuerSM and Identity Theft protection give agents an edge in attracting new customers.

Farm-Ag rounds out SECURA’s products, and represents the foundation of its heritage. The company continues to expand this segment by writing Agribusiness policies for those businesses that support farming operations. Farm supply stores, feedlots, feed milling operations, and seed processing/dealers are just a few.

Outlook for the company’s futureSECURA remains steadfast in its dedication to exceptional service and strong agency relationships. To that end, helping agents sell and retain quality accounts is job one. The company has been ranked as a Top 10 carrier by agents in the Ease of Doing Business survey for the last six years. Success and stability also are evident in its “A” Excellent financial rating by A.M. Best.

Looking ahead, the company’s focus on providing agency partners a solid, established market, new growth opportunities, and exceptional service have positioned SECURA well for continued success.

Company Web site: www.secura.net

John Bykowski

Garth Wicinsky, VP – Human ResourcesShane Roh, RVP – Sales

Intensity can set one apart from all others. Agents know this. That’s why so many choose

SECURA to help their business grow. Call 1-800-558-3405. Write your own success story.SM

Success is fi nding an advantage.©

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Commercial Personal Farm SpecialtyPersonal


SOCIETY INSURANCE

Location Of Company Headquarters: Fond du Lac, WI Founded: 1915Senior Managers: Rick Parks, President & CEO William Reeves, Senior Vice President & COO John Barouski, Vice President – Workers’ Compensation Claims Steven Binkley, Vice President – Property, Auto and Liability Claims Amy Collett, Director – Human Resources Thomas Konop, Vice President – Information Systems D. Holly Lifke, Vice President – Commercial Lines Underwriting Perry Schaack, Vice President – Marketing Edwin Storer, Vice President – Finance & Treasurer

Products Company Specializes In:Society Insurance writes only commercial lines. As a specialist, the company has developed expertise and market leadership in its core classes of business. Supported by long-term trade association endorsements from the Wisconsin Restaurant Association and the Tavern League of Wisconsin, Society writes policies for more than 25 percent of the food and beverage establishments in Wisconsin. Society’s strong tradition of association partnerships and niche expertise also extends into hotels and motels, grocery and convenience stores, artesian contractors and food processors, auto repair garages and health care clinics. The packages Society offers for its core classes of business are consistently the most comprehensive on the market.

Workers compensation insurance was the first coverage Society wrote when it was founded in 1915, and the company has developed true expertise in this complicated and specialized line of business. Society’s claim management process keeps costs low for policyholders by stressing early intervention, advocating a quick return to work and obtaining the best medical provider discounts. Loss control services are customer-focused and tailored to the needs of both small and large businesses. Society offers a number of internet-based safety tools for customers of all sizes. This combination of strong claim management and tailored loss control is a true competitive advantage that eliminates many problems business owners and agents may experience with workers compensation insurance.

Outlook for the Company’s FutureSociety Insurance continues to build on its strength as a regional carrier committed to service and value for its customers. This focus on value has evolved into the Society Insurance Value Proposition, a formalized statement of the value Society provides

beyond competitive pricing. Elements of the Value Proposition include:

!""Exceptional expertise in target niche business classes!""Outstanding coverage packages!""Relationships with trade associations of target businesses!""Customer-focused risk control!""Uncommon claims handling!""An accessible and responsive corporate culture

Society does not try to be all things to all insureds. Instead, the company concentrates on what it does best. Because Society focuses on niche markets, the company understands its clients’ businesses and has exceptional knowledge and experience with issues that are likely to arise.

Other CommentsIn an industry not often known for its creativity, Society isn’t afraid to be different. That’s why the company bills itself as offering “uncommon value.” Society knows that agents and policyholders have unique needs that don’t always fit neatly within a strictly defined category, so the company sets itself apart with a commercial lines-only concentration, a commitment to exceptional claim handling, and a strong appetite for workers compensation. Sharing core values and a commitment to service with agency and association partners defines Society Insurance.

Company Web site: societyinsurance.com

Rick Parks

SFM Mutual Insurance Company

Headquarters: Minneapolis, Minn. Branch: Milwaukee, Wis.Founded: 1984Officers: Bob Lund, President and CEO Terry Miller, Chief Financial Officer Scott Brener, General Counsel Steve Sandilla, Vice President – Strategic Business Operations Nick Marino, Director – Wisconsin Operations

Products Company Specializes In:SFM is a customer-owned mutual insurance group providing workers’ compensation coverage to more than 15,000 employers based in Wisconsin, Minnesota, Iowa, Nebraska and South Dakota. SFM also insures their operations in many other states.

The company specializes in claims, medical, legal and loss-control service, and is supported by in-house attorneys, doctors and other professional specialists.

Convenient policyholder services: CompOnline® Risk Management System, online injury reporting, premium e-payments, online payroll reporting and audit, pay-as-you-go wage reporting, extensive education and loss control resources.

Offers employment practices liability coverage, easily endorsed onto the SFM policy.

SFM enjoys the highest levels of customer satisfaction: 93 percent of SFM policyholders renew each year.

OutlookSFM is expanding in Wisconsin and welcoming new agencies.

The company insures organizations of all types and all sizes — small, mid-sized and large.

SFM provides agents with a reliable market, competitive commissions and satisfied customers.

It’s easy to do business with SFM: quote and bind online through SFM Agency Manager (SAM); manage your entire book of business online; access client data. No minimum premium.

SFM is financially strong with a growing surplus, positive net income, low expense ratio, low combined ratio, conservative investments, and debt-free.

Helping OthersSFM Foundation, now four years old, has committed nearly $300,000 to help children of parents killed or injured on the job go to college. Agents are a main source of fundraising. Scholarships awarded so far involve workers’ comp claims handled by 27 different insurers.

Company Information: Visit www.sfmic.com or call (800) 937-1181.

Chairman of the Board Gene Merriam and President and CEO Bob Lund


WEST BEND MUTUAL INSURANCE COMPANY

Location of Company Headquarters: 1900 South 18th Avenue, West Bend, WI 53095Founded: April 1894Officers: Kevin Steiner, President and Chief Executive OfficerDale Kent, Executive Vice President and Chief Financial OfficerTracey Berg, Senior Vice President and Chief Information Officer Bill Hutchison, Senior Vice President - NSIGary Alexander, Vice President - NSI Bonds Jim Blair, Vice President - NSI ClaimsDavid Ertmer, Vice President - Claims Rick Fox, Vice President and Chief ActuaryPeter Hans, Vice President - NSI Legal Paul Hingtgen, Vice President - Argent®

Rob Jacques, Vice President - Commercial Lines Gary Klein, Vice President NSI P&C Underwriting Jim Pauly, General Counsel and SecretaryDan Roskopf, Vice President - FinanceJim Schwalen, Vice President - Personal Lines & MarketingKelly Tighe, Vice President - Sales

Products Company Specializes In:

Personal Lines: West Bend offers a broad personal lines coverage package (Home and Highway®) with multiple rating tiers for home and auto. Many innovative coverages and features are also available.

Commercial Lines: West Bend offers a full range of commercial products and services. In addition to products such as Workers’ Compensation and Commercial Auto, SMARTbusiness™ substantially expands our businessowners’ policy and provides agents with automated solutions and a more efficient process.

Specialty Lines: NSI offers insurance programs for such specialty lines as social services, sports and leisure, special events, childcare and bonds.

Argent®: Argent specializes in monoline workers’ compensation. Argent works closely with agents and policyholders to determine their most critical workers’ compensation needs and improve results through loss control, medical cost containment, and education.

Outlook for the Company’s FutureWest Bend is well positioned to capitalize on the current market conditions. In 2011, the company was rated A (Excellent) by A.M. Best. A.M. Best also recognizes West Bend as one of the 100 largest property/casualty insurers in the country. Listed as one of the top companies in a nationwide ease-of-doing-business survey, West Bend will continue to strive to maintain this rating by advancing our technology, products, and services while retaining our small-company, relationship-driven culture.

Company Web site: thesilverlining.com

Kevin Steiner

Christopher Zwygart, Vice President - Legal & Corporate ComplianceDebra Cahoon, Assistant Vice President - Human ResourcesSandy Czerniak, Assistant Vice President - Argent® ClaimsMike DeLaney, Assistant Vice President - Argent® Loss ControlHeather Dunn, Assistant Vice President - Corporate AccountingScott Grinna, Assistant Vice President - PAS Program ManagementJim Keal, Assistant Vice President - Argent® OperationsJason Moore, Assistant Vice President - IT

Products Company Specializes In:Travelers provides a full breadth of insurance and surety products, as well as risk management services, to numerous types of businesses, organizations and individuals. Our products are distributed by independent insurance agents and brokers throughout the United States.

Business Insurance: The business insurance segment offers a broad array of property and casualty insurance and insurance- related services to its clients, which range from “main street” businesses to Fortune 100 corporations. Business insurance is organized into marketing and underwriting groups with a specialized focus on particular markets or products. Travelers is the second-largest writer of commercial U.S. property and casualty insurance.Financial, Professional & International Insurance: The financial, professional and international insurance segment includes surety and financial liability coverages, which require a primarily credit-based underwriting process, as well as property and casualty products that are primarily marketed on an international basis. Travelers is the largest writer of surety business in the world.

Personal Insurance: Travelers is the second largest writer of U.S. personal insurance through independent agents. We offer a broad array of property and casualty insurance products to individual customers under the Travelers brand.

Outlook For The Company’s FutureTravelers is uniquely positioned to help Wisconsin agents grow and be successful! We know that you value timely and professional service—our people are experts at what they do. We’re able to deliver the many attributes of a large national carrier through one of the best-staffed field offices in the state.

We are local, allowing our staff to understand the Wisconsin marketplace and to develop deeper relationships with you and our insured’s. With almost 200 people in Wisconsin, Travelers is proud of our commitment to you and the positive impact we have on protecting the industry and individuals here.

Our national scale means that we can deliver many advantages to you, including:

!Financial strength and long-term market stability

!Broad underwriting appetite

!Innovative product development

!Cutting-edge technology efficiencies that save you money

!Risk capacity to accommodate your largest accounts

!Specialist expertise to understand your most complex exposures

!"Professional delivery of claim, risk control and audit services that improve your account retention

Travelers understands that life and business are inherently dynamic and that the best way to serve customers is to deliver insurance that behaves the same way — evolving to keep in step with life and business as they change. Protect your clients under the red umbrella!

Company Web site: www.Travelers.com

THE TRAVELERS COMPANIES INC.

Location Of Company Headquarters: Hartford, CT Founded: More than 155 years agoOfficers: Jack Costello, Regional President George Hogan, Regional DirectorLinda Petrillo, Regional Vice President - Personal Insurance Karen Eckert, Regional Vice President - SelectPaul Kyrilis, Regional Vice President - Commercial, Technology, Construction, Public SectorMark O’Brien, Regional Vice President - National Accounts Casualty & Discover ReKevin Cahill, Regional Vice President - National Property Allen Warner, Regional Vice President - Inland Marine Dave Wolfe, Regional Vice President - Boiler & MachineryGail Schroeder, Regional Vice President - Bond & Financial ProductsGregg Jeffers, Regional Vice President - Global Accounts John Tsourmas, Zonal Vice President - Excess Casualty

Jack Costello

Brendan Dunican, Regional Vice President - Ocean MarineBeth Printz, Regional Vice President - ClaimsSteve Ringler, Regional Risk Control Director


CONTINUED FROM PAGE 5

ACUITY also offers agents a stable workforce, with our voluntary staff turnover averaging just 1%. This low rate is directly attributable to the quality workplace we offer employees. ACUITY is ranked as the Best Mid-Size Employer in the Nation by the Great Place To Work Institute. Both Collegegrad.com and AARP have recognized ACUITY multiple times as one of the top employers in the nation for entry-level college graduates as well as workers over age 50, respectively.

Our service-focused claims operation offers the ability to file a claim online or via a smartphone, and even page an ACUITY adjuster with the click of a button. We consistently receive a 96 percent claims approval rating from policyholders and 98 percent from agents.

Because we offer an extremely broad range of products backed by leading-edge technology, we provide our agents a viable and efficient market. ACUITY is strongly committed to the independent agency system because we believe it is essential to the continued growth of the property and casualty industry. We are excited about our collective future.

Other CommentsThe word “ACUITY” means “sharp focus.” Our mission is to provide a broad range of products for diverse risks that will protect and enhance our customers’ well-being. We will distinguish ourselves by consistently leveraging our underwriting discipline, claims expertise, and efficient technology and service, which follows the direction set by our sales and marketing orientation. Our tag line, “For All That Matters,” not only describes our philosophy of rebuilding shattered lives after a catastrophic loss, but also describes our keen focus on providing our customers and agents with world-class service.

Company Web site: www.acuity.com


Consumer-driven health plansOur Lumenos plans give your employees more control over their health care costs and choices. They can lower costs without giving up the quality of their care.!""Allowed trend: down 5.6% vs. traditional plans.!""Preventive care usage: up 3% overall, up 8% for men.!""Office visits: down 9.3% overall.!""rescription drug usage: down overall with no negative impact on

medications taken by members with chronic conditions.

Designated Blue Distinction CentersThis is a strong network of recognized specialty centers across the country that are committed to providing better clinical and cost outcomes.

Blue PrecisionA network of providers with cost and quality in mind for these specialties: cardiologists, OB/GYN, endocrinologists, rheumatologists and pulmonologists.

Dental BlueDental Blue offers great value with less hassle. Dental Blue members get extra savings with our negotiated pricing when they visit an in-network provider for:!""Services that aren’t typically covered, like porcelain veneers and

treatment for TMJ.!""Services you get after reaching your annual maximum.

Blue View VisionBlue View Vision can give your employees coverage to help maintain healthy eyes, while giving you coverage to help maintain a healthy bottom line.

Anthem Care ComparisonEmployees can make better choices and save money by comparing actual costs for common procedures at hospitals and facilities nearby. They can also see procedure and quality comparisons that focus on quality and safety at each facility. That means they have access to cost data on nearly 40 inpatient and outpatient procedures and quality measures for more than 150 inpatient procedures.

Outlook For The Company’s FutureAnthem is currently advancing strategies to improve quality, which can help to manage costs and improve insurance coverage. By working together with government, employers and providers, we are working to build a health care system that is accessible to all and provides quality care for those who need it most.

Contact Phone Number: (800) 258-0012

Company Web site: www.anthem.com

Products Company Specializes In:Wilson Mutual has a deep-rooted history of exceeding our agents’ expectations. The company remains committed to supporting our agents’ efforts by developing new and innovative products and services with a focus on “ease of doing business.” Wilson has a strong and growing presence in Wisconsin and an ever-growing presence in Minnesota.

Personal lines products include: homeowners, personal auto, mobile homeowners, dwelling fire, inland marine, personal umbrella, and farmowners (WI). Flexibility and common sense underwriting are key philosophical approaches practiced by our personal lines underwriting staff.

Commercial lines products include: commercial package policy, businessowners, commercial auto, workers compensation (WI), and commercial umbrella. Wilson provides several value added services to assist our agency force in meeting the needs of today’s business owners.

Other CommentsIn early 2010, Wilson Mutual launched an expansive new ISO-based CPP product. The new CPP continues to offer our agency partners greater flexibility in underwriting, pricing and risk selection. While the focus of the new CPP is on contractors, auto service, wholesalers, distributors, machine shops and light manufacturing, Wilson will continue to write other eligible types of business via Businessowners program.

In 2012 Wilson will continue to bring new system enhancements, including a claims processing system, a commercial lines billing system, and a new ISO Businessowners program, each designed to continue to increase the ease of doing business with Wilson.

Providing risk management services to our policyholders continues to be a focus for Wilson Mutual. “Creating a culture of safety” within our policyholders’ businesses has made a significant impact in assisting our agents with retaining quality business. Wilson helps customers establish successful risk management programs with an emphasis on employee safety, training, and documentation.

Outlook For The Company’s FutureWilson Mutual continues to receive a Rating of “A” (Excellent) from A.M. Best. This rating reflects our strong financial position as well as our solid record of profitable growth. Development of new products and improved services will continue to be the focus of our future, providing even greater market opportunities for our agents.

Company Web site: www.wilsonmutual.com

WILSON MUTUAL INSURANCE COMPANY

Location of Company Headquarters: Sheboygan, WIFounded: 1872Officers: Robert Western, President Mike Lappin, Senior Vice President & Chief Operating Officer Tami Jones-Fahser, Senior Vice President – Administration and Claims Karen Schultz, Vice President - Personal Lines and Product Development Roxanne Freeman, Vice President of Information Technology Jim Hayon, Vice President - Claims Jeff Jacobs, Vice President - Commercial Lines

Bob Western


Life — Strengthen RelationshipsRetaining customers is especially important in today’s economy. That’s why cross-selling is so important. Grange Life makes it easy with people ready to help you cross-sell life insurance to your personal and commercial lines customers. Ask about Grange Life’s new express products and applications.

Contact Name for Further Information: Tim McAdow Contact Phone Number: 920.968.8327Company Web site: www.IntegrityInsurance.com


OPEN DOOR POLICY

CONGRESSMAN RYAN: PRINCIPLED AND READY FOR THE VP CHALLENGE

Our Midwestern values are also in the spotlight. Values such as integrity, fiscal conservatism, devotion, decisiveness and leadership are just a few that describe Congressman Ryan. Oh boy. Did I just use those words to describe a politician? I did and here’s why. In 2007 and 2008, I had the pleasure to work for Paul Ryan. We worked together closely on a variety of issues, meeting with constituents and dignitaries, and traveling to key meetings. You learn a lot about a person when you work with them, about how they carry themselves around influential people and the general public. While working for Congressman Ryan, I was fortunate to meet Secretary of Defense Donald Rumsfeld, Speaker of the House John Boehner and Vice President Dick Cheney. Paul’s intellect, poise and personality validated his place among these distinguished leaders. He is an articulate debater and respectful to his adversaries. In fact, he is respectful to everyone — dissenting constituents, business leaders, dignitaries and staff. For Paul, criticism is constructive. It helps him refine and retool his message and approach to an issue. He is the rare politician who takes action on his words. What you see is what you get. He is prepared for the challenges that await him today and tomorrow. Regardless of how busy he is he finds time for his family and friends. He routinely invites his staff over to his house to watch Packer games with his wife Janna, and his kids, Liza, Sam and Charlie. I have no doubt that he would give up his political career for his family. He is a genuinely good man. I know I’m biased but I’m just being honest. Paul embodies the very characteristics this country needs to return to. He possesses the very characteristics this Association was founded upon and has stood for for over 100 years. His principles and voting record make him the right man at the right time for our country and industry.

Ryan As VP Boon To IndustryThe Insurance industry will undoubtedly

benefit with Paul Ryan as vice president. Having a strong national ticket helps voter turnout and indirectly helps candidates of the same party on the ballot. As presidential candidates electrify their respective base, voter turnout increases and that helps everyone from the local level all the way up to the state and national level. As independent voters are harder and harder to come by, this election will be won by the party that does the best job of getting their base to turn out and by convincing those few independents. Over the last few years, Republican state and federal representatives have predominately played a large part in either fending off threatening legislation or aiding in passing legislation good for our industry. With Ryan

as the VP nominee on the GOP ballot, it will assist other Republican candidates running for office such as Representatives John Nygren and Robin Vos, both past recipients of our Legislator of the Year Award and champions of our industry. It behooves us as an Association to see both of these men re-elected. Paul Ryan’s addition certain helps them and other industry-friendly candidates on the GOP side. Next, let’s examine Congressman Ryan’s opinions, actions and voting record. He has been a staunch supporter of enacting measures that will aid in reviving our lagging economy. He recently stated, “The economic growth that our country needs cannot come from Washington. It originates from the creativity and entrepreneurial spirit of the American people. This spirit can only thrive if the government creates an economic friendly environment that allows businesses to grow

and create jobs.” In addition to Ryan’s positions on key issues, his voting record on Tax Rate Extension legislation, PPACA Repeal legislation, Dodd-Frank and NFIP, aligns him as an advocate of our industry. Additionally, he is a constant supporter of state rights and sovereignty. I think Congressman Ryan’s ideology can be summarized by the following statement:

“We Americans look at one another’s success with pride, not resentment, because we know, as more Americans work hard, take risks, and succeed, more people will prosper, our !"##$%&'&()*+&,,*-(%(.'/*0%1*&%1&2&1$0,*,&2()*+&,,*-(*&#34"2(1*0%1*$3,&5'(16*78(*!"##&'#(%'*Mitt Romney and I make to you is this: We won’t 1$!9*'8(*'"$:8*&))$()666+(*+&,,*,(01;*<(*+"%='*-,0#(*"'8(4)666+(*+&,,*'09(*4()3"%)&-&,&'>;*<(*+"%='*4(3,0!(*"$4*5"$%1&%:*34&%!&3,()666+(*+&,,*4(033,>*'8(#;*<(*+&,,*8"%"4*>"$/*"$4*5(,,"+*!&'&?(%)/*->*:&2&%:*>"$*'8(*4&:8'*0%1*opportunity to make the choice: What kind "5*!"$%'4>*1"*+(*+0%'*'"*802(@*<80'*9&%1*"5*3("3,(*1"*+(*+0%'*'"*-(@*<(*!0%*'$4%*'8&)*'8&%:*04"$%16*A(0,*)",$'&"%)*!0%*-(*1(,&2(4(16*B$'/*&'*+&,,*'09(*,(01(4)8&36*C%1*'8(*!"$40:(*'"*'(,,*>"$*'8(*'4$'86D

This short excerpt exemplifies the man that Paul Ryan is. He influenced my life and I would not be where I am today without his guidance and friendship. While my time working with him was short, the impact he had on my life is far reaching. I’m not writing this hoping to persuade you to vote for him, but rather provide some insight into one of the greatest individuals I know in hopes you will listen to him and his message. His ideas and positions will be hotly contested for months to come

Wisconsin continues to be in the national political spotlight. The historic recall elections dominated the news and now Wisconsin’s own Paul Ryan is on the front page as Mitt Romney’s running mate. Whether we like it or not, politics in Wisconsin has become business as usual.

He is the rare politician who takes action on his words. What you see is

what you get.

and deserve to be vetted. You may or may not agree with his politics or his positions but I hope you will agree with me that he is a man of integrity who deserves our respect. Regardless of your politics I think you’ll agree that it’s better to stand for something then fall for anything.

Disclaimer: The views expressed in this article are strictly my own and do not represent those of the Association. Regardless of my own political affiliations, decisions affecting the political direction of this Association are made based on what’s best for the membership, and not on political affiliation. Simply put, we support those who support our industry and independent insurance agents.

THANK YOU!Thank you to our exclusive company spon-sors, especially our new sponsors AAA and SFM. Unfortunately, we had two companies that decided to not renew their company sponsorship with the IIAW this year, but we had two fantastic companies step up to take their place. Our Association’s strengths and successes are directly attributed to the sup-port and involvement of our members and

exclusive company sponsors. Please join me in thanking AAA, SFM, and the rest of our ex-clusive company sponsors for their continued commitment to the IIAW. I would also like to extend a thank you to Ron Von Haden, his staff and the Board of Directors of the PIA for the invitation to attend their annual convention. In addition, I would like to congratulate the PIA on a suc-cessful convention. While I could only attend

one day of the festivities, I was thoroughly impressed with the program and the wonder-ful treatment/greeting I received. While Ron could not attend the IIAW convention this year due to prior commitments, I hope to reciprocate the wonderful experience I had. I learned a lot and sincerely hope this is a step toward improved relations and working together more closely for the betterment of our members and our industry.

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

WISCONSIN INDEPENDENT AGENT 25

OPEN DOOR POLICY

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.

Paul Ryan (left) and Mitt Romney in Norfolk, Virginia on August 12, 2012. Romney introduced Congressman Ryan as his running mate for the 2012 presidential election. Photo: James Currie

WISCONSIN INDEPENDENT AGENT AUGUST 2012 26

TrustedChoice®


You’re probably thinking, “Well what kind of a question is that? How would I know and what difference does it make anyway?”

This question is a branding question, and every agency has a brand. That brand may not be articulated or formalized, but the people of your city or town know what it is even if you don’t. Your community has an image of your agency that either drives them to you or drives them away from you. Your best customers, the ones that you know and relate to you the best, have grown to know you and trust you, but they may not know that you provide them with a choice of insurance carriers and coverage. The general public may not even know that you are there if you don’t have ways of reaching out to them through networking events, advertising, Web sites and social media.

How would you find out what your image is? Probably the best way is to gather a cross section of your customers and non-customers and ask them. We always think we know, but honestly we are usually not spot on with our intuitions about how we look to others. Do your home customers know that you sell auto insurance? Do you assume that your customers know what an independent

agent is? Do they know you sell a wide variety of types of insurance? Your customers may be surprised that you offer more than one insurance company option. You may have advertised consistently over a period of years but without articulating your brand message and what you provide to your clients, it could turn out to be waste of money.

What difference does it make to be the Trusted Choice for insurance solutions and information? It makes all the difference. If your customers trust your judgment about insurance issues, they are far less likely to be price shoppers. You are making their lives simpler and more secure. Why would they move to the competition they don’t know? If the general public in your town recognizes your agency as providing reliable insurance and everyday advice about how to manage their family finances and avoid or limit claims, won’t they be likely to think of you if their current agent disappoints them in some way at claim or renewal time?

Just imagine the power of your agency brand when united with that same care, compassion and concern of other independent agents not just in Wisconsin but all across the country under the Trusted Choice brand. We all can capitalize on the Trusted Choice brand by being the honest, caring and compassionate insurance agents that we already are if we unite around this one brand name. It will be the insurance equivalent of “The good housekeeping seal of approval” or the “Five Star Resort” ranking given to the best places in the resort industry.

You know it is not about the newest and shiniest. It is about the people in the agency force and the experience your customers have when they have a question, claim or service issue. Being the best we can be while uniting as Trusted Choice agencies will provide use with a new awareness among the citizens of our towns.

IS YOUR AGENCY THE TRUSTED CHOICE IN YOUR COMMUNITY FOR INSURANCE INFORMATION AND SOLUTIONS?

IF YOUR CUSTOMERS TRUST YOUR JUDGMENT ABOUT INSURANCE ISSUES, THEY ARE FAR LESS LIKELY TO BE PRICE SHOPPERS. YOU ARE MAKING THEIR LIVES SIMPLER AND MORE SECURE.

PROFESSIONAL LIABILITYCOVERAGE IS IN THE DETAILS

&

&


OUTSTANDING M IDWEST YOUNG AGENTS CONFERENCE IN THE DELLS

The boat cruise is an opportunity to network and have a great time.

Derek Wickhem (John Wickhem

Agency), chair of the Young Agents

Committee, welcomes

attendees to the Upper Dells boat

cruise. The cruise has become a

tradition at the conference.

More smiles on the Dells boat cruise.

Brica Weimer, Matt Banaszynski (IIAW Executive VP), Tracy Larson (Thompson-Nelson Insurance), and guest on the boat.

Mary Morrison (IIAW E&O Administrator) and Allison should loosen up a little. You can tell that they are weighed down by stress.

Minnesota agents Tonia Davidson (Erickson-Larsen Inc.), Chad Bartley and Dawn Bijou Janes (MN Insurance Group) joined the Wisconsin contingent.

Matt Weimer (Diversified Insurance Services) and Jason Bott (Robertson-Ryan & Associates) talk on the boat.

Troy Neil (The IMT Group), Tyler Sopata (Legenza & Associates), Amber Sopata, and Bruce Prince (The IMT Group) in Kahunaville at the Kalahari.

The great people at SECURA Insurance have made it a tradition to sponsor a poolside cabana at the YA conference. It’s a fantastic place to gather with family and friends.

William Butler (Butler & Associates Insurance Agency), chair of the Minnesota Young Agents Committee, and Jack Demski (Ansay & Associate) on Lake Delton.

Brad Meyer, director of business development at ABRA Auto Body & Glass, presented a session on umbrella policies. Scott Deetz, Josh Johanningmeier and Gabrielle O’Brien also spoke at the young agents conference.

Wilson Mutual

From July 12-14, 2012, Wisconsin and Minnesota agents, family and friends came to the Kalahari Resort in Wisconsin Dells for the Midwest Young Agents Conference. Education, networking and the boat cruise are hallmarks of the conference and the 2012 edition provided more of the same.


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As a consultant, I often find myself facing this type of situation. The four points below are the most common positions held by agency owners that create serious roadblocks to their agencies’ success. If any of these are familiar to you, take a step outside of the situation and look back in. You might see your position in a different light.

1. We must write small accounts because you never know which one will turn into a large account. This commonly expressed position presumes an inability to identify clients with great potential versus those with no potential. This means agencies believing in this philosophy should write absolutely as many small accounts as possible.

An average agency abiding by this philosophy has at least 1,000 small accounts and maybe one, over 10 years has grown big. But let’s say there are two accounts that grow big. So out of 10,000 renewals, two get big. Can the agency write enough large accounts to cover the 1,000+ small accounts that soak up huge amounts of time, effort and expense? If so, this may be a great strategy. If not, it is time to rethink the agency’s plan.

2. We do not use coverage checklists because we might leave something off. The belief here is that if you don’t have a list, you can’t leave coverages off. This presumes nothing is left off when a checklist is not used. So if an insured does not get the correct coverage because the producer does not use a list and the absence of a list means the coverage wasn’t necessary to offer, then by default, the customer could not have needed the coverage. Therefore, the uncovered claim is just a figment of their imagination, right? If you believe this, then keep on going without using coverage checklists.

Another perspective is that if the agent does not use a coverage checklist, there is no need to recommend coverages a customer needs. In other words, if I don’t know the customer needs a coverage, I don’t have a responsibility to offer the coverage. For a peddler of insurance, this makes perfect sense because peddlers only take orders. Why pay commissions to peddlers? Web sites are quite capable of taking orders and issuing policies.

3. We do not need to hold our producers accountable. The reasons given for not holding producers accountable are numerous and include that accountability might make them angry. What is the price of an angry producer? Well, if it’s a $500,000 commission producer, not making them angry might be a good strategy. However, an incompetent producer may leave the agency or become a good producer through accountability. Either way, the agency may find itself way ahead by enforcing accountability.

Other common reasons given are that they are nice guys and that they have never been held accountable so it is unfair to do so now. That is fair enough. But to be really fair, if the producers are not held accountable, why hold anyone accountable? Why hold the customer service representatives (CSRs) accountable? Why hold new producers accountable?

Another reason given is that by holding them accountable, the ultimate outcome is that they would be fired and the emotional trauma of firing a producer is too much. That makes sense. Of course, if you are not going to fire a producer, how can you fire a CSR? Is their trauma any less?

Then there are the producers that should hold themselves accountable negating the need for management to do so. How well is that working in your agency?

4. All agencies have the same value as a multiple of sales or EBITDA. I am often asked, “How much are agencies worth today?” This presumes that all agencies are alike, all agencies are commodities and nothing is special about any agency. Is this correct? Is there nothing special about your agency?

Let’s assume some common multiple applied to all agencies. If one agency is losing 10 percent of its commissions annually and another agency is growing by 10 percent, then they should have the same multiple. The same goes for the agency that has a 25 percent profit margin versus the agency that has a -5 percent profit margin. Even the agency that has $1,000,000 of extra cash on its balance sheet versus the agency that has spent $500,000 of trust monies will have the same value.

The question presupposes such material differences do not exist. It’s like someone is asking, “What’s the value of a 2005 Ford F-150?” They expect I can look up the blue book, ask how many miles the agency has on it, the condition of the body, and whether it has any extra features.

Quite often, the agency owners who ask this question have problematic agencies and the reason they ask the question this way is because they do not want their problems taken into consideration in the valuation.

I do not believe any reader likes the logical result of these incredibly common beliefs and practices. I’m not going to argue these ideas are wrong. If you share these beliefs, take a step outside and look back in. Think through the complete concept and if you still believe in it, then go for it 100 percent!

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.

I found myself arguing an extremely silly point with an agency owner at a conference. Everyone but the agent saw the silliness of his argument. I explained the point every way imaginable to no avail.

OUTSIDE LOOKING IN

> Chirs 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].


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Trust the experts.

In this article we will talk about how to most

effectively deal with price and money objections. Here are four keys to overcoming and eliminating price and other money objections:

1) Question the

objection. Less than 25 percent of people who

give you a price or money objection are giving you a true

objection. Usually when someone gives you a price objection it is either because they are testing you or it’s simply the best objection they can come up with to get rid of you. When you question the objection you determine quickly whether or not this is a real objection and, if it is, what areas you need to focus on in order to eliminate it. If someone says it costs too much, you might ask, “How much too much?” or “Compared to what?” If they say they can’t afford it, you might ask, “What can you afford?” or “How much are you paying now?” or “When do you see that changing?”

2) Stay confident and positive. Many salespeople get defensive, nervous, or otherwise uncomfortable whenever they get a price or money objection. When this happens, it is an immediate red flag to the prospect that something is off with your product or pricing. First and foremost, realize that you will hear price and money objections a lot, so don’t be surprised when you do. Second, the better prepared you are to answer the various objections, the more confident you’ll be, so make sure you have some strong responses. Finally, be proud of your prices and what you have to offer. If you have higher prices than the competition, it is undoubtedly because you have a higher quality and overall “better” product. Believing in your product and your ability to

handle price and money objections will lead to a confident, positive response when you get one of these objections. When you are confident and positive, the prospect gets a comfort factor that you are being honest and straightforward.

3) Build value. The kneejerk reaction of most salespeople facing a price objection is to immediately look for a way to cut price. When they do, it lowers the perceived value of the product or service. Instead of dropping the price, the goal should be to build value. What are your primary benefits? How are you, your company, and your product better than the competition? Is your service is better? Is it your claims department, your back office people, or do you respond faster? Are clients always assured of getting a live person on the phone? Accentuate your primary benefits, know your unique selling proposition, know why people deal with

you as opposed to competitors, and find the most effective way to clearly convey that message to prospects. Provide proof with testimonials, user lists, references and the like. Also remember, you are the one thing your competition does not have. If you are determined to bend over backwards and out-service and out-deliver the competition, others won’t be able to compete. Tell people

that you are more committed than anyone else and then back it up with action.

Note: From time to time you will run into the true price shopper. When you do, unless you are unequivocally the lowest price provider and that is your primary selling point, your best bet is to run the other way. People who buy solely on price will waste more of your time, complain more, and show no loyalty. If you do everything you can to build value, differentiate yourself from the competition, and show why your product is worth more and yet you continue to hear, “Nope, I’m buying solely on price,” move on and let your competition deal with the headaches.

4) Avoid price and money objections altogether. Of course the best way to handle price and money objections is to never get them to begin with. The most effective way to do this is to first, ensure you have a qualified prospect who is ready, willing, and able to buy. Second, have a powerful presentation that specifically addresses all the prospect’s needs and desires, clearly shows you as the obvious solution, and creates urgency to move forward now. Finally, your presentation should end with a smooth transition into a relaxed, no-pressure closing process that starts the relationship off on the right foot. All of the above being said, even under the best of circumstances, some people will still test you just to make sure they are getting the most for the least amount of money. Your best bet is to be prepared with superior product knowledge, selling skills, and the calm confidence that the prospect both needs and is far better off with your product or service.

> 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.

The price or “money” objection is the objection that salespeople run into most often. This objection comes in three forms: not having enough money, not seeing the value in exchanging it for your product or service, or being able to

purchase a competitive product for less than what you are charging.

HOW TO HANDLE THE PRICE OBJECTION AND OTHER MONEY ISSUES

When you are confident and positive, the

prospect gets a comfort factor

that you are being honest and straightforward.


Dan did not have other clients involved in this type of business and was unable obtain a CGL that did not exclude pollution claims. Dan went though the coverages with his client and told him that he had not been able to obtain pollution coverage. He recommended to his client that the client try to get pollution coverage elsewhere. Dan suggested pollution coverage might be available through the client’s professional association. Dan later followed up with the client in person and the client told him he’d looked elsewhere but had decided not to buy pollution coverage because it was too expensive. At renewals, Dan reminded his client that he did not have pollution coverage.

Three years later, a lawsuit was filed against the client alleging that an underground storage tank it had installed for a gas station had leaked. The CGL insurer undertook to defend the lawsuit under a reservation of rights but took the position that any damages arising out of petroleum that leaked from the tank were not covered and would not be paid by the insurer. The client filed suit against Dan. The client denied that Dan had told him that he had not been able to obtain pollution coverage and denied that he had chosen not to obtain coverage elsewhere due to cost.

What are the major issues in this case?You can bet Dan regrets that he told his client verbally that he did not have pollution coverage, but did not follow that up in writing and maintain that writing in his file. That lack of written documentation leaves Dan in a position where his client denies the conversations and Dan has no written documentation to corroborate his testimony. This claim also demonstrates that even when a client is a family member or friend, you should document important conversations in writing and not assume that the client — even though a family member or friend — will admit the inconvenient truth.

What could have been done differently by the producer?An agent dealing with a risk he or she doesn’t frequently handle often results in problems because the agent is unfamiliar with what coverages the client needs or what is and is not covered by the insurance policy. Here, that was not a problem because Dan recognized that his client had a pollution risk to address, and was aware the CGL did not address the risk. However, his lack of involvement in risks of this type likely was a factor in his not having a market available to place pollution coverage.

What do you think was the outcome?The claim was ultimately settled at the courthouse steps with a substantial contribution from the agent in excess of $100,000. In addition, the agent’s deductible applied to defense costs and they paid an additional $5,000.

DON'T LET THIS HAPPEN TO YOU A client transferred his personal auto and umbrella policies from one agency to another. With no market for the umbrella policy, the agent tried to broker the coverage but failed to notify the client. Coverage under the prior umbrella terminated the day before a car accident with injuries. Due to the failure to advise the client, the claim was settled against the agent’s E&O polocy and the agent was forced to pay the deductible.*

COACH SAYS:You may be held liable for precluding the proposed insured from taking appropriate steps to obtain coverage elsewhere. If you can’t place your client’s business, make sure you tell the client in writing.

For more information about the Big “I” Professional Liability program, your trusted source for insurance agents and brokers E&O coverage, contact your state association or visit www.independentagent.com/EO.

*This claims scenario is fictional. Westport employees created it based on experience and knowledge of case law using relatively common facts, allegations, defenses and amounts. Do not rely upon such scenarios to predict an outcome, or to make claim and litigation decisions.

E&O Loss Prevention Tip:ALWAYS advise your insured in writing when faced with no market for a particular risk.

Route this to your team roster!

Insurance underwritten by Westport Insurance Corporation.

Dan was contacted by his wife’s uncle who was purchasing a business and wanted Dan to handle getting insurance coverages for him. The main activity of the business involved installation, repair, and testing of petroleum storage equipment, including underground tanks. Dan obtained several policies for the business, including commercial auto, workers compensation, property insurance, and a CGL.

DOCUMENT, DOCUMENT, DOCUMENT!

Even when a client is a family member

or friend, you should document

important conversations in writing

and not assume that the client — even

though a family member or friend —

will admit the inconvenient truth.

ERRORS & OMISSIONS


B A S E B A L L C L I N I C H O N O R S L OY D A

On June 23, the Major League Baseball Players Alumni Association (MLBPAA) presented its Legends for Youth baseball clinic in Whitefish Bay. The third annual clinic was held in honor of Greg Loyda, a father of three and a Hanover executive, who died in March 2010. Greg was highly respected throughout the community and he spent years coaching for the Whitefish Bay Little League.

“We are thrilled to be able to bring the Legends for Youth Clinic to our community in honor of Greg,” said Todd Bavery, regional vice president for The Hanover. “We hope that through these positive role models, children who attended will walk away inspired to give it their all when it comes to playing sports and maximizing the educational opportunities available to them.”

The free clinic hosted approximately 250 local boys and girls ages 6-15 and featured retired Major League players as instructors, including Lee Smith and Bill Campbell. The clinic was sponsored by The Hanover Insurance Group, Tricor Insurance and Ansay & Associates.

The Wisconsin Hanover team, from left: Bruce Urben, Conrad Theriault, John Vose, Andy Knipfer, Dan Swarthout, Todd Bavery and Jim Uhlenbrauck.

B A S E B A L L C L I N I C H O N O R S L OY D A

Bill Campbell (Cubs uniform) and Lee Smith (Giants uniform) talk to the young

baseball players at the Legends for Youth baseball clinic in Whitefish Bay. Besides

helping promote the game of baseball and developing basic baseball skills, the

clinic also will focus on building kids’ confidence and self-esteem, and their

sense of responsibility for themselves and their team - important skills and abilities

that will benefit them at home and at school. Children also received free T-shirts,

baseball and lunch, and then enjoyed an autograph session with the players.

“I learned a lot about team work while playing football and studying insurance at Olivet College. My job allows me to connect with my agents and company underwriters for a common goal.”

Calvin McNamara Personal Lines Underwriter —and “retired” quarterback

Connect with Calvin on LinkedIn!

800.666.5692 jmwilson.com

RELATIONSHIPSIT’S WHY WE STAND OUT FROM THE CROWD

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

The agent in question was his lifelong family friend Andy Burkart Sr., owner of the Burkart Insurance Agency. “Andy got me interested in a career in insurance and gave me an opportunity,” said Mike, the president of the IIA of Wisconsin for 2012-13. “He gave me some self-study manuals and I took the licensing exam at the commissioner’s office in Madison. This was before the formal prelicensing classes we have today.” In August 1971, after becoming a licensed agent, Mike joined Andy at his agency. Back then it was just Andy, Mike, and Ceil Rasmussen, the agency’s office manager, in a small office on Ninth and Michigan in Sheboygan. Two years later, Burkart merged with Heisdorf Insurance to create Burkart-Heisdorf Associates. Today, Burkart-Heisdorf Insurance has three locations and is thriving. Mike is part owner of the agency that has been his only professional home. Andy G. Burkart is now the agency’s principal. The agency’s owners also include Mark McCabe, Phil Burkart, and Debbi Mahler. Early on in Mike’s career, Andy Sr. stressed the importance of education. Mike did everything at the agency — CSA work, claims handling, and selling personal, commercial, and life and health lines. “Andy believed in education and the agency still does,” said Mike, a 1968 graduate of Sheboygan South High School. “When I started, Andy immediately enrolled me in an INS 21 class at a local tech college. I was so new I didn’t have business cards and I didn’t know the address of the agency, but the class gave me a really good base.” Mike has many professional designations but he’s most proud of his CPCU which he earned in 1991. Again, Andy was there to help him through the process. Andy (along with former IIAW Executive VP Bob Jartz) was also responsible for Mike’s long involvement in the Association. Andy Sr. served as IIAW President in 1980-81. “Andy thought it would be a good idea for me to meet other young agents,” said Mike, who is currently the agency’s sales manager. “Our first meeting was at the Karakahl Inn in Mt. Horeb in 1974. There wasn’t a Young Agents

Committee at this time and it was Paul Mast’s (Bob Jartz’s predecessor) idea to start it. We were on the forefront of forming this committee.” Those early meetings gave root to a formal Young Agents Committee a few years later and the rest is history. “It has been an active group ever since,” said Mike. Since then, Mike has amassed an impressive Association résumé:

1982 President of the IIA of Sheboygan County

1983 Young Agent of the Year

1989- National Communications1993 Committee (“Raymond ‘Ironside’ Burr

was the spokesman,” said Mike.)

1990 Committee Chair of the Year

1994 Agent of the Year

2012 IIAW President and a member of the Government Affairs and Nominating committees.

As a board member in the 80s, Mike oversaw the construction of the current IIAW headquarters in Madison. He has chaired and served on the InVEST Committee and also served on the defunct State Communications Committee, which solicited advertising funds from companies. Over the past 41 years, he has sat on most of the Association’s committees. All this experience has prepared Mike to lead the IIAW this year, and his goals are ambitious. “I want to support Matt Banaszynski as he continues to expand his role as IIAW Executive Vice President and Bob Jartz transitions to retirement,” said Mike. Matt has been executive VP since January 1; Bob is currently an Association advisor. With health care reform looming, Mike would like agents to have a strong voice in the process. “We need to champion the role of agents in the sale of health insurance,” he said. “To that end, the Association needs to strengthen agent participation in our PACs, the national InsurPac and Insuring Wisconsin. It’s vital that members get involved.” Other goals include continuing to explore ways to reduce Association expenses without

NINETEEN SEVENTY-ONE WAS A WATERSHED YEAR FOR MIKE. The same year that he began his insurance career, Mike started racing sports cars. It’s a passion that he continues to this day.

“I’ve always loved racing,” said Mike, whose first race car was an Elva Courier, a fiberglass British roadster. He later switched to MGBs. “My Dad took me out to Road America (at Elkhart Lake) when I was kid. The 60s were a heyday for sports cars.”

As a teenager and into his early 20s, Mike would drive his Triumph TR3 from Sheboygan to Watkins Glen, New York to camp and watch the U.S. Grand Prix.

Mike’s first Sports Car Club of America (SCCA) race this year was in June and he took to the track in a Mazda Miata that he built with his crew.

“I used to race as many as 12 weekends during the year but now it’s more like four weekends,” he said. “I drive the pace car for Road America which is the one I brought to this year’s convention. Cars are just something that I like to play with.”

Off the race track, Mike and his wife, Susie, have a great time in their Catalina convertible, MGA, Ferrari 308, and Amphicar, an amphibious vehicle which can drive on land and water.

The couple also spends a lot of time on their 45 feet Sea Ray boat. When Mike and Susie were married in 1997, the ceremony took place in the harbor in Sheboygan. They share a home in Elkhart Lake.

“It’s a great place to live and play,” said Susie, who retired from teaching last year after 32 years.

When not cruising around in cool cars and watercraft, Mike and Susie love to travel. In August, they visited Munich for a weeklong holiday and this September, they are embarking on a river cruise that will take them from Budapest to Amsterdam on the Danube and Rhine Rivers. Other favorite destinations include the south of France, Italy, Croatia, and anywhere on or near water.

They are both grateful for the opportunities that have come their way.

“We’re very lucky,” said Mike.

MIKE FROH: 2012-2013 PRESIDENT OF THE INDEPENDENT INSURANCE AGENTS OF WISCONSINA funny thing happened when Mike Froh went to his independent agent to talk about his insurance rates — the agent offered him a job.

> By Eric Schwartz


This vehicle can go anywhere! Mike and Susie cruise the highways and waterways in an Amphicar.

Mike has been racing cars competitively for 41 years. Here, he speeds around the track in an MGB at Road America.

After an SCCA race this year, Mike stands with the Mazda Miata he and his crew built.

Mike and Susie with their Sea Ray in Sheboygan. The couple enjoy boating and spend a lot of leisure time on the water.


sacrificing member services,and finding new education and communication opportunities. Mike also wants to improve communication with the PIA of Wisconsin. “We should explore ways to work together,” said Mike. “It would be for the mutual benefit of both associations and its members.”


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

Compass Insurance Honored For Outstanding Performance

In June 2012, West Bend Mutual Insurance Company honored Compass Insurance Services, located in Kronenwetter, WI, for outstanding performance in West

Bend’s agency incentive program, Partners In Excellence. Compass was also named to the Partners In Excellence Round Table, an honor that places them in the top 15 of West Bend agencies.

Partners In Excellence is a program that measures three areas of agency performance: profitability, agency growth, and agency objectives and sales strategy. While more than 1,000 independent agencies participated in the program, only 146 agencies qualified for Partners In Excellence status. The agencies are located throughout Wisconsin, Illinois, Iowa, Minnesota, and Indiana.

“It’s an honor to receive such a prestigious award from West Bend Mutual and it’s a great feeling to offer insurance products backed by a company who truly understands and respects Midwest values,” said John Guerndt, owner of Compass Insurance.

Find Compass Insurance on the Web at compassinsurance.net.

Integrity Insurance Notes

Integrity Insurance Adds Borgerding As Commercial Lines Field UnderwriterOn June 25, Integrity Insurance added David Borgerding as a commercial lines field underwriter for the state of Minnesota.

As a commercial lines field underwriter, Borgerding is responsible for new business production and profitability for a select group of Minnesota agents that are part of Integrity’s

commercial field underwriter program.

Borgerding joins Integrity from Federated Insurance in Owatonna, Minn., where he spent seven years in various roles, including business coordinator center supervisor, commercial underwriter, risk analyst and field marketing projects analyst. Borgerding has a bachelor’s degree in statistics from the University of Minnesota-Morris. He currently holds the CPCU, ARM, AU and AIS designations.

Integrity Celebrates 10 Years With Grange InsuranceOn August 6, Integrity Insurance and Columbus, Ohio-based Grange Insurance celebrated 10 years of partnership. In 2002, the two Midwest-based insurance companies dedicated to the independent agent distribution system affiliated to leverage resources, manage risk more effectively and increase geographical market opportunities. With shared

cultural and core values, they forged a partnership that is stronger than ever in 2012.

As the affiliation moved into place in 2002, the initial results were even better than expected. Integrity immediately shared Grange’s A.M. Best rating of “A.” Integrity agents were able to offer new products to their customers, particularly in personal lines and the immediate addition of Grange Life. The infusion of new technology and integration of Grange’s claims systems resulted in improved agent and consumer experiences at every level.

Other noteworthy accomplishments include:

!"Within five years, Integrity doubled in size to more than $100 million in direct written premium.

!"As part of the pooling of resources, Integrity’s growth helped Grange become a billion dollar organization in 2003.

!"Policyholder access to IntegrityInsurance.com and GrangeInsurance.com that allows clients to view their policy information 24/7, perform tasks such as printing proof of insurance cards, report a claim and pay premiums.

!"Shared claims services that allow claims representatives from Grange and Integrity to process claims, providing faster service to customers – especially in a catastrophe situation when a specific region may see a higher than usual number of losses at any one time.

!"Grange and Integrity have independent yet complementary brands that stress the importance of Ease Of Doing Business (EODB®) and brand voice that sends a strong message of partnership to the market and position our products effectively.

!"The agency force has been substantially strengthened and expanded; for example, Integrity has grown from 193 agency locations before the affiliation to 662 agency locations today.

“We look forward to the continued success of our partnership and strengthened contributions to the enterprise,” said Integrity President and CEO Joe DiMartino. “We have an excellent management team in place, our partnership with Grange has never been stronger and our independent agent partners have confidence in our direction.”

Find Integrity on the Web at integrityinsurance.com.

Hastings Mutual Insurance Company Welcomes New President & CEOOn July 27, Hastings Mutual Insurance Company, an award winning, regional P&C insurance carrier in the Midwest welcomed new president, CEO, and chairman Joseph J. Babiak Jr. Babiak joined Hastings Mutual in 2001 as CFO. During the past three years, Babiak has served as the senior VP of insurance operations in preparation for this planned succession. He has more than 30 years of industry experience.

“This seamless transition is possible due to the talent and dedication of Hastings Mutual’s employees and their commitment to financial stability

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

for our policyholders and agent partners,” said Babiak. “I look forward to leading Hastings Mutual as we continue to build upon our innovative products, customer service, technology, and agency relationships to provide our customers the best possible solutions to their insurance

needs in the years ahead.”

Babiak is originally from Mosinee, Wisconsin and worked as a senior manager at Arthur Andersen LLC prior to joining Hastings Mutual. Babiak received his Accounting Degree from UW-Stevens Point and has earned the CPA designation.

Find Hastings Mutual Insurance Company on the Web at hastingsmutual.com.

ACUITY Continues Its Successful Ways

ACUITY & DuFour Advertising Win International Creative Awards On June 20, ACUITY announced that several of its marketing campaigns, created in partnership with DuFour Advertising, have received industry awards.

The Association of Marketing and Communication Professionals (AMCP) presented ACUITY with two Platinum Hermes Creative Awards, the highest awards given by the international association. The awards

were presented in recognition of the company’s 2011 Annual Report, “A Sweet Year” and its 2010 Annual Report, “A Storybook Year.”

Packaged as a classic candy box, ACUITY’s 2011 Annual Report included one pound of homemade hand-dipped chocolates. The 2010 report was designed as a popup book and was created with the help of world-renowned paper engineer Andy Baron and children’s book illustrator Aaron Boyd.

“Our Annual Report is not just a method for detailing our operating results; it also serves to communicate our culture and share our success with independent agents, employees, and policyholders,” said Ben Salzmann, ACUITY President and CEO.

ACUITY Named Top Financial Performer By SNL & Ward’sOn July 12, SNL ranked the financial performance of property and casualty insurers with at least $500 million in policyholders’ surplus based on their annualized rates of return, profitability, asset and surplus growth, investment performance, reserve development, and premium

growth. ACUITY ranked sixth among insurers nationwide and is the only regional property and casualty carrier in the top 10.

“Our ranking as a top financial performer by SNL reflects our profitability, strength, and stability,” said Ben Salzmann, ACUITY President and CEO.

In 2011, policyholders’ surplus at ACUITY grew to a record-high $980 million, a 9.2 percent increase (GAAP) over the prior year. ACUITY recorded a 99.6 percent combined ratio, nearly 10 points better than the insurer’s competitors in the property/casualty industry, and grew assets under management to an all-time high of $2.43 billion (GAAP).

ACUITY’s average surplus growth during the past decade is nearly three times industry averages. Additionally, ACUITY recorded a leverage ratio of written premium to surplus of 0.92 : 1, the third consecutive year this ratio has been below 1:1. In 2011, ACUITY also increased its written premium by 8.1 percent, the strongest in five years, and grew its policy count to an all-time record 243,000 policies written.

Also, on July 18, ACUITY was named to the Ward’s 50 Benchmark Group of top-performing insurance companies, putting ACUITY in the top two percent of insurers nationwide. ACUITY is one of just five P&C companies to have been named to the Ward’s 50 for 13 consecutive years.

“It’s difficult for a company to be named to the Ward’s 50 once, and tougher still to repeat, particularly in this difficult economy and challenging marketplace,” said Salzmann. “To be named to the list for 13 consecutive years is a testament to our operational consistency, the efforts of our employees, and the quality of business our agents send to us.”

“Ward Group recognizes ACUITY as one of the top-performing property-casualty companies in the insurance industry. Excellent returns and strong operating results helped make ACUITY a top-performing insurance organization. Ward Group looks at company performance over a five-year period, and ACUITY has demonstrated the ability to maintain outstanding results over the long term,” said Jeff Rieder, Partner, Ward Group.

Gen Mervyn Promoted At ACUITY On August 7, ACUITY announced that Gen Mervyn has been promoted to Services Manager – Imaging. Gen began with ACUITY as a Billing CSR in March 2006, having been employed prior to that time as a substitute teacher in the Sheboygan school district. Gen holds a bachelor’s degree from the UW-Whitewater with a major in Elementary/Middle School Education and a minor in Science.

Gen currently lives in Sheboygan with her husband, Anthony, and son Hunter.

Find ACUITY on the Web at acuity.com.


FAMILY AND MEDICAL LEAVE IN WISCONSINSince its inception, the federal Family and Medical Leave Act (FMLA), which provides eligible employees unpaid, job-protected leave, has plagued employers with its complexities and ambiguities. Unfortunately, administering FMLA leave is not a matter of simply understanding the federal law.

COMMENTARY FROM COUNSEL

For employers in Wisconsin, the intricacies of the federal law are multiplied due to the Wisconsin Family and Medical Leave Act (WFMLA). The Wisconsin law is

often a trap for the unwary employer because it commonly provides rights to employees that are greater than those provided by the FMLA. Among other things, the WFMLA often extends leave rights to employees who would otherwise be ineligible for leave under the FMLA, covers certain familial relationships that are not covered by the FMLA and, under certain circumstances, allows employees seeking Wisconsin leave greater scheduling flexibility. Even if your agency is not subject to the FMLA or WFMLA, you may have clients who are and their compliance (or lack thereof) with these laws may give rise to covered claims under employment practices liability (EPL) policies. As always, read on and share liberally for an ounce of prevention.

Eligibility: Different under Wisconsin and Federal LawEligibility for leave is calculated differently under Wisconsin and federal law. To be eligible for leave under the FMLA, employees must meet a threshold of 1,250 hours, whereas under Wisconsin law, the threshold is only 1,000 hours. To complicate matters further, the calculation of hours to determine employee eligibility under the FMLA and WFMLA differ. Under the federal law, eligibility is determined by calculating the number of hours worked by employees during the previous 12 months. In contrast, under Wisconsin law, eligibility is determined by the number of hours for which the employee received pay during the previous 52 weeks. For these reasons, low hour employees will frequently be eligible for Wisconsin leave but not leave under federal law. Eligibility for federal leave is also dependent upon whether an employee is employed at a worksite with 50 or more employees within a 75-mile radius. Employees in Wisconsin, however, are entitled to leave if they work for an employer with 50 or more employees regardless of the geographic distance between worksites. Accordingly, Wisconsin employers with multiple small worksites may be required to provide WFMLA leave to employees working from remote offices even when such employees are not eligible for FMLA leave.

Leave Entitlements: Different under Wisconsin and Federal LawUnder the federal law, an employee is generally entitled to up to 12 workweeks of unpaid leave during a 12-month period for one or more covered reasons. Note, also — in the case of leave to care for an ill or injured servicemember, federal law also provides for up to 26 weeks of leave during a single 12-month period. The WFMLA, on the other hand, apportions the amount of leave that an employee may take for a particular reason. Under Wisconsin law, an employee is entitled to 10 workweeks of unpaid leave during the calendar year as follows:

> Six weeks for the birth or placement for

adoption of a child, frequently called “bonding leave”;

> Two weeks to care for a seriously ill child, spouse, domestic partner or parent (includes parents-in-law); and

> Two weeks for the employee’s own serious health condition.

Due to the different apportionment of leave, employers must track WFMLA and FMLA leave entitlement separately, and there may be occasions when leave cannot be concurrently designated as leave under both laws.

Permissible Types of Leave: Variations between Wisconsin and Federal LawGenerally, the types of leave provided for under the FMLA and WFMLA are similar. For example, leave for a serious health condition, for the birth of a child, or to care for a family member, are covered under both laws; however, the following forms of leave are only covered under one law:

!Placement of foster children. An employee may take leave for the placement of a foster child under the FMLA but not under the WFMLA.

!Care for an in-law. An employee may take WFMLA leave to care for a parent-in-law, but he or she may not take FMLA leave for such a purpose.

!Servicemember leave. Under the FMLA only, an employee is entitled to 12 weeks of leave for a “qualifying exigency” related to a call to military duty and up to 26 weeks of leave during a single 12-month period to care for an ill or injured servicemember.

Employers oftentimes automatically designate all family and medical leave as leave under the FMLA and WFMLA; however, if the leave, in fact, is not covered by both laws, the employer could inadvertently be depriving an employee of his or her full leave entitlement. For instance, if a Wisconsin employee takes two weeks of leave to care for his or her parent-in-

For employers in

Wisconsin, the intricacies

of the federal law are

multiplied due to the

Wisconsin Family and

Medical Leave Act. The

Wisconsin law is often

a trap for the unwary

employer because it

commonly provides

rights to employees that

are greater than those

provided by the FMLA.

Employers oftentimes

automatically designate

all family and medical

leave as leave under the

FMLA and WFMLA; however,

if the leave, in fact, is

not covered by both

laws, the employer could

inadvertently be depriving

an employee of his or her

full leave entitlement.

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

law and the employer incorrectly designates the leave as both Wisconsin and federal leave, the employee may be improperly deprived of two weeks of federal leave in the event he or she seeks leave for an another qualifying reason later in the year. Such deprivation of leave can result in unlawful interference claims under state and federal law.

Intermittent Leave: Different under Wisconsin and Federal LawOne of the most frustrating aspects of family and medical leave is administering intermittent leave. Employers often forget that intermittent leave is treated differently under the federal and Wisconsin laws, and this can create liability for the unwary employer. With the exception of family “bonding” leave, which is taken in association with the birth of a child, federal leave may be taken intermittently when the leave is deemed medically necessary by a healthcare provider. Bonding leave may only be taken intermittently at the discretion of the employer. This means that employers retain the discretion to deny federal intermittent leave if the leave is not medically necessary. In contrast, Wisconsin law allows for intermittent leave at all times, subject to the reasonable scheduling requirements of the employer. This means that parents in Wisconsin may take their six weeks of WFMLA paternity leave on an intermittent basis even though their employer would otherwise have the right to restrict their federal leave. Additional flexibility is available under federal law as it relates to employees on a reduced-hours intermittent leave schedule due to a medical condition. The FMLA allows

employers to transfer an employee on a reduced-hours schedule to an alternative position during the leave period. Wisconsin law, however, does not provide employers the option of transferring an employee during a period of intermittent leave. Therefore, during any period of intermittent leave that is covered by both the FMLA and the WFMLA, an employer may not unilaterally transfer an employee to an alternate position. Note, however, that once an employee’s Wisconsin leave entitlement is exhausted, any remaining federal leave need not conform to the requirements of the WFMLA. Despite the complexities of federal and Wisconsin family and medical leave laws, the administration of leave does not need to be an overwhelming undertaking. By taking the time to understand the differences between the two laws, an employer can ensure that it is providing its workforce with all required leave while at the same time addressing fraud and abuse.

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COMMENTARY FROM COUNSEL

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“After owning an agency for 16 years, our firm merged with Gallagher. Since joining, Gallagher has continued to provide me with opportunities to grow personally and professionally by allowing me to lead the Energy Practice, and most recently, to assume the regional leadership role for the South Central territory.

Selling our company was a very emotional event for my family, partners and employees. My personal and professional expectations have been exceeded by the Gallagher team.”

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If there’s one sin in marketing and sales that’s more harmful and that dwarfs

all others, it’s “certainty.” Yet, no marketer or salesperson gets a job without

paying tribute to it for fear of coming across as weak and ineffective.

WISCONSIN INDEPENDENT AGENT 46

At one point, the average marketing manager enjoyed an 18-month tenure, the point at which their “certainty” ran out of gas, suggesting, perhaps, that they may not have known what to do next.

It may be the same story with those in sales. When a colleague met the new sales manager, he knew the guy would be gone in six months. This turned out to be a case of arrogant certainty that was betrayed by incredible disorganization and a trail of broken promises.

It’s the perfect set up for failure.

This is not a rant on inadequate marketers and sales executives. Rather, the focus is on the far more vexing problem of coming to terms with the reality that there is little place for certainty in marketing and sales today. Unfortunately, too many business owners and corporate executives look for and expect certainty, an impossible outcome that foreshadows inevitable failure.

Here are several suggestions for coping with what can be described as a marketing and sales crisis.

!"CERTAINTY IS AN ILLUSION. With all the

smartphone excitement, some marketers seem to hold that having an app, for example, leads directly to the pot of gold at the end of the rainbow or, if not that, the thinking seems to be that not having an app is a sign of negligence, of uncertainty.

Yet, having an app and customers actually using it can be quite different. Even though the average smartphone has 120 apps, we’re

told that only five are used regularly. How many times have you said, “What does that one do? Why did I download it?”

Just because a marketing activity is popular or “cutting edge” doesn’t mean it will produce the desired results in every situation. Expecting marketers to hit the bull’s eye every time is unrealistic. If there’s anything that can be called “marketing magic,” it’s continual experimentation and testing.

!"THE CURSE OF SHORT-TERM EXPECTATIONS. When someone says, “F-150,” just about everyone knows it’s a Ford pickup truck. And why not? Ford has showcased the iconic F-150 series name for six decades –– and the truck has been a best seller for more than thirty years.

Expecting marketers and salespeople to deliver instant results is becoming

increasingly ludicrous. The NPR (National Public Radio) audience, which tends to be older, is the demographic that’s most attuned to radio. To begin to attract a younger audience, NPR now streams music, without charge, from every NPR station in the nation, a rich offering for its prospective customers and a long-term investment in the future of its brand.

Those companies that are struggling with a “meeting the numbers” crisis may be suffering from a short-term strategy. Along with meeting immediate challenges, making a commitment to creating tomorrow’s customers should be a top priority. To miss capturing them now may mean they are gone forever.

!"DON’T TALK TO CUSTOMERS, ENGAGE THEM. Many salespeople are absolutely

MARKETING MINUTE

‘‘Everything we market and sell must give the customer the ability to innovate without limit.

THE SEDUCTIVE SIN OF MARKETING AND SALES CERTAINTY

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.

certain that if they can just get in front of a customer, they can make the sale. Today, that’s a dead end goal if there ever was one. The huge shift is to engagement.

Sales manager Jeff Short of K&W Tire Company, Inc., a wholesale tire business in Lancaster, PA, read an article that advocated getting rid of “elevator speeches” as a way to improve listening instead of talking about yourself and your company in a sales situation. After the 10-member sales team had reviewed the article, Short asked them to come up with six questions they thought would help get customers talking.

“They may not be the questions I might ask,” he says. But he decided to put the questions to a test. “I decided to try them out.” He started making calls, using his team’s questions. “They worked,” he says. “They got the customers talking.”

It’s engaging customers that creates customers.

!"IT’S NOT ABOUT WHAT YOU LIKE. Often without even recognizing it, we fall prey to personal preference in marketing and sales,

even when research points in a different direction.

A recently published five-year study, for example, by Arizona State University’s W.P. Carey School of Business, offers this conclusion: “If you really want to get people to act, disgust is much more powerful than fear,” says Andrea Morales, an associate marketing professor at Arizona State, in a USAToday article.

A cold and flu season TV commercial for an over-the-counter product depicts gross-looking monsters at work inside a person’s breathing system. And, as might be expected, the medication chases the unsavory and unwelcome intruders away. Disgusting, of course. But the ad has been

aired over and over again for several years.

No matter how hard we work to be objective, it’s difficult to avoid having our personal preference slip in, which may be why, for example, ads promoting financial freedom in retirement almost always use photos of happy, carefree people. Yet, what many people fear is running out of money and living a diminished existence. Maybe depicting disgust would be more appropriate.

!"NO MORE TELLING CUSTOMERS WHAT TO DO. Certainty is marketing and sales sin because it keeps us focused on the past, on what we know best. Research in Motion appears to have believed its Blackberry was invulnerable to all comers. Their steady course has taken them to near oblivion. It was the same when the first iPad came out two years ago, the naysayers were “locked and loaded,” making it clear that the new product would fail because there were no unique uses for it. Ironically, their assessment was at least partially correct.

We’re so accustomed to products and services that solve problems that it took time before we recognized that the iPad

was different from anything we had ever seen: instead of providing solutions, it created opportunities.

Once we figured that out, sales went wild –– to an estimated 55 million in 2012, according to Analyst

Shaw Wu of Sterne Agee. For example, the U.S. Air Force’s Air Mobility Command has ordered 18,000 iPads to replace flight manuals on transport flights it manages, just one of thousands of uses that continue to unfold daily. Not the least of which is the iPad’s textbook revolution. Ironically, each iteration of the iPad is influenced by how people use it. The customers are driving the product in new directions.

The iPad has stood everything about marketing and sales on its head. We’ve long said that being “customer-oriented” is primary, but the iPad takes a huge leap: everything we market and sell must give the customer the ability to innovate without limit. That’s the same message today’s customers expect to hear from us.

!"WAITING IS OUT. If there’s one idea embedded in the brains of marketing and sales people, it’s the belief that their processes govern. Even though both often work under severe pressure, they often react with a “But we can’t do that right now” comment. Such certainty is absurd.

“Sure, we can get you the tires you want,” the garage owner said. “They’ll be here in a couple of days.” Or, “I’ll get back to you on that as soon as I can get the information,” when meeting with a customer. Even just a few years ago such comments were considered good service –– but not today –– even though we continue to hear them.

“About 40% of smartphone users are abandoning real-world carts at the checkout counters of stores because of long lines,” according to a recent survey of 1,000 smartphone users by AisleBuyer. “Another 21% will abandon a cart if no registers are open.”

With smartphone users in the U.S. expected to reach 106.7 million in 2012, according to eMarketer or one-third of the population, there’s no wiggle-room here. We’re into a “do-it-now-or-never” mindset, which will only become more pronounced moving forward. On top of that, it’s viral.

It adds up to an expectation tsunami. Do it now or the customer is gone, perhaps never to return. No more second chances.

By now, the point should be clear: there’s no place for certainty in a business world that is in a constant state of flux. Doing everything right today in marketing and sales offers no comfort. Tomorrow is another day and the needs and opportunities will be even more demanding.

‘‘We’re into a “do-it-now-or-never” mindset, which will only become more pronounced moving forward. On top of that, it’s viral.


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

On October 8-9, 1959, the Wisconsin Association of Insurance Agents held its 60th anniversary convention at the Hotel Schroeder in Milwaukee. The 1959

convention boasted the theme “Challenge of Change.” Pictured here is some of the event’s entertainment.

Last month, Democrats recaptured control of the Wisconsin State Senate. The shift in power was a result of the June 5 recall elections, which saw Democratic challenger John Lehman defeat the Republican incumbent in the 21st Senate District. Lehman was sworn into office on July 16, and Democrats now control the Senate with a slim 17-16 majority. Despite the Democrats new majority, they have little power to go along with it. The Legislature has adjourned for the year and cannot return to the floor to consider legislation unless called into a special session by Gov. Scott Walker or the GOP-controlled Assembly agrees to convene an extraordinary session. Neither scenario is likely to occur. The Democrats limited new power includes consideration of gubernatorial appointments and the ability to hold committee hearings on issue areas – but not on legislation. The Democrats authority also gives them oversight of the Senate’s committee structure, and they quickly made use of their new power. Each Senate committee is now dominated by Democrats. Notwithstanding the recent transfer of power, the new Democratic majority

could be short lived. Due to once-a-decade legislative redistricting, Republicans are well positioned, although certainly not

guaranteed, to retake control of the Senate in the November elections. Prior to redistricting, of the 33 legislative districts that make-up the Senate, seven seats were considered safe Republican districts and

eight seats were considered GOP-leaning. The rest were considered Democratic-leaning or competitive swing seats. Under the new Senate district maps, which will be in place for the November elections, 12 seats are now considered safe Republican districts and five are considered GOP-leaning. So, Republicans are expected to capture at least 17 seats this fall. Based strictly on the numbers, the November elections could result in an 18-15 GOP majority, with an outside chance for a 19-14 margin. State senators are elected to four-year terms, with half of the Senate up for election every two years. This year, 16 of the 33 Senate seats are up for election. However, only three races are considered competitive. All three seats are currently held by Democrats, but based on the new district maps, they are now considered Republican leans:

12th Senate District (Northeast Wisconsin) This seat is being vacated by retiring Democratic Sen. Jim Holperin. Although a Democrat has represented the district for 30 years, due to redistricting, the seat is now considered a 54% GOP seat. Republican Tom Tiffany, a current member of the state Assembly, is the favorite to win the seat.

18th Senate District (Fond du Lac) This seat is currently held by Democratic

Sen. Jessica King. King defeated a Republican incumbent in

the 2011 recall elections. However, the district now trends 55% Republican, and GOP challenger Rick Gudex is considered a slight favorite heading into the fall.

30th Senate District (Green Bay) This seat has been held by

Democratic Sen. Dave Hansen since 2001. Although Hansen is

considered the favorite in this race, the district actually trends 50.5% GOP. As such,

Republicans are hopeful they can pull of a win in this contest. With Republicans all but guaranteed to retain their majority in the Assembly, and Scott Walker firmly entrenched in the governor’s office, the only real question mark heading into the fall is which party will control the Senate. On paper, the GOP is poised to recapture the Senate, but nothing is set in stone until the polls close on Nov. 6 and all the votes are counted.

Stay tuned…

POLITICAL POWER SHIFTS IN STATE SENATE NEW DEMOCRATIC MAJORITY COULD BE SHORT LIVED

> 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.

Under the new Senate district

maps, 12 seats are now considered

safe Republican districts and

five are considered GOP-leaning.

Republicans are expected to

capture at least 17 seats this fall.

GOVERNMENT AFFAIRS

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

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Food for Thought

On Sept. 7, 1963, the Pro Football Hall of Fame opened in Canton,

Ohio. Canton was selected because it was the home of the

American Professional Football Association (later the NFL) and

the first powerhouse team, the Canton Bulldogs led by Jim

Thorpe. Notable first inductees included: Sammy Baugh, Harold

(Red) Grange, George Halas, Don Hutson, Earl (Curly) Lambeau,

John (Blood) McNally, Bronko Nagurski, and Jim Thorpe.

Source: Pro Football Hall of Fame

AND WE’RE ALL MUCH HAPPIER BECAUSE OF ITHow much data is generated every minute of every day?

Every minute:

• YouTube users upload 48 hours of new video.

• E-mail users send more than 204 million messages.

• Google receives over 2,000,000 search queries.

• Consumers spend $272,070 on Web shopping.

• Apple receives 47,000 app downloads.

• Facebook users share 684, 478 pieces of content.

Sources: DOMO and Column Five Media

HALL OF FAME IDEA

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september 2012 magazine

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