There’s no hocus pocus needed to find the right small business coverage. Think BOP-Pro from UFG Insurance. BOP-Pro helps take the complexity out of small business insurance with more than 35 property and liability coverages. It can even be tailored with coverage boosting endorsements, especially when it comes to the unique needs of restaurants and contractors.
But don’t take our word for it. Check out BOP-Pro products from UFG today. No crystal ball required.
ufginsurance.com/bop-pro
INDEPENDENT INSURANCE AGENTS OF WISCONSIN
Compensation data was collected on over 750 positions at more than 60 agencies ranging from $100,000 to more than $50 million in commission revenue in Wisconsin.
725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com
2022-2023 EXECUTIVE COMMITTEE
President:
Nick Arnoldy | Marshfield Insurance Agency, Inc., Marshfield
President-Elect: Michael Ansay | Ansay & Associates, Port Washington
Secretary-Treasurer: Joanne Lukas Szymaszek | Johnson Insurance Services, LLC, Racine
Chairman of the Board: Marc Petersen | American Advantage - Petersen Group, New Berlin
State National Director: Steve Leitch | Leitch Insurance, River Falls
2022-2023
Janel Bazan | Avid Risk Solutions/Assured Partners, Middleton
Mike Harrison | R&R Insurance Services, Inc., Waukesha
Aaron Marsh | Marsh Insurance Services, Inc., Rice Lake
Kash Motlani | Ansay & Associates, Inc., Port Washington
Dan Lau | Robertson Ryan & Associates, Milwaukee
Andrea Nelson | Unisource Insurance Associates, LLC, Wauwatosa
Brad Reitzner | M3 Insurance Solutions, Madison
Matt Banaszynski | Chief Executive Officer 608.256.4429 • matt@iiaw.com
Mallory Cornell | Vice President and Director of Risk Management 608.210.2975 • mallory@iiaw.com
Kim Kramp | Accounting Supervisor 608.210.2976 • kim@iiaw.com
Trisha Ours | Director of Insurance Services 608.210.2973
Wisconsin Independent Agent is the official magazine of the Independent Insurance Agents of Wisconsin (IIAW) and is published monthly by IIAW 725 John Nolen Drive, Madison WI 53713. Phone: 608.256-4429. IIAW does not necessarily endorse any of the companies advertising in publication or the views of the writers. IIAW reserves the right, in its sole discretion, to reject advertising that does not meet IIAW qualifications or which may detract from its business, professional or ethical standards. © 2022 For information on advertising, contact Kaylyn Staudt, 608.210.2977 or kaylyn@iiaw.com.
For 138 years, IMT Insurance has been helping make people whole again after a loss. That is the very essence of our being, and one we believe we do well. IMT continues to offer the strong line of personal and commercial insurance products for which it has always been known, along with exceptional service.
IMT takes pride in the culture within our walls. As a Midwest regional mutual company, the relationships we build with our independent insurance agents, insureds and our employees are key to business success and employee satisfaction.
Driven by our shared vision, IMT strives to be the company of choice, providing extraordinary, equitable, and worry-free experiences for a diverse group of agents, customers, and employees.
IMT is built on deep roots and relationships in our communities. Our company believes we can have, and should have, a positive impact, in and around our writing states, through charitable giving and volunteer support.
We’re fortunate to be in a position where we can continue to grow. Together, with 950+ Independent Insurance Agency locations, we offer insurance products in six states; Iowa, Illinois, Minnesota, Nebraska, South Dakota and Wisconsin. We currently employ over 350 employees throughout our writing territory. We’ve got an eye on the past and a keen sense for the future, continuing to live up to our slogan, “Be Worry Free!”
“What better way to start the new year than with employee reviews and compensation discussions,” said no one ever. However, in the event you are starting the new year conducting employee reviews and discussing compensation, we have compiled the right data to assist you in ensuring your employees are compensated at the fair market value or that you can articulate to them that they are compensated at or above Wisconsin’s “industry average”.
In summer and fall of 2022, the Independent Insurance Agents of Wisconsin conducted a compensation survey of its membership consisting of 310 Wisconsin agencies (with over 600 locations) which yielded a 21% response rate or 65 agencies (does not include branch offices). The IIAW decided to undertake this survey after hearing feedback from its membership that other agent/broker compensation surveys from other publications and organizations lacked Wisconsin-specific data. In addition, the IIAW felt it was important to gather such data considering how the COVID-19 outbreak, economic conditions and tight labor market has impacted employee compensation across all business sectors, including the independent agency system.
Competitive compensation is vital to attracting and retaining employees in an aggressive labor market that is experiencing significant retirements coupled with the difficulty to attract new and experienced employees to the insurance industry. We hope you find this report useful and responsive to your needs as your agency assesses its compensation structure in 2023.
Compensation data was collected on well over 750 positions at more than 60 Wisconsin agencies (not including branches) with commission revenue ranging from $100,000 to more than $50 million. Larger agencies tended to provide compensation averages for most of their positions while smaller and midsized agencies tended to provide all their data on
each position. The data collected in each commission revenue category includes annual average payroll, average number of full-time employees, average number of part-time employees, premium volume by line of business, agency projections, average number of remote workdays allowed, breakdown on the size of the community they reside in, entity type, 1099 producer data, out-sourced positions, benefit package details, retirement benefits, commission, salary and salary + commission structure by line of business, average experience by position and more.
Here are some key data points from the survey:
• 50% of agencies that responded had under $1 million in commission revenue, 36% of agencies that responded had commission revenue of $1 million to $5 million and 14% of agencies that responded had commission revenue exceeding $5 million.
• 25% of agencies were in a Metropolitan area, 39% were in rural Wisconsin, and 36% were in Suburban Wisconsin. A metropolitan area must have a total population of at least 50,000. A suburban area has a population of between 50,000 and 2,500. A rural area has a population of less than 2,500.
• 56% of agencies surveyed are S-Corps. 28% were LLCs. 14% were C-Corps. 2% were sole proprietorships/partnerships.
• Of the more than 750 positions, 40% of data pertains to customer service representatives/ customer service associates/account managers, 28% pertaining to sales/producers, 12% to owners/managers, 10% to receptionist/office management and 10% to accounting/ operations.
• 77% of agencies surveyed are family-owned.
It’s important to note that the IIAW did not keep any agency-specific data to preserve the confidentiality and anonymity of the survey respondents. The data has been grouped based on commission revenue of the agency. The information collected in this report will only be shared with agency owners/principals. Anyone else within the agency requesting a copy of the report must obtain the permission of the agency owner/principal or manager listed as the main point of contact. Copies of this report will be provided to participating agencies free of charge. Those wishing to obtain a copy without participating/ filling out the survey, may purchase a copy though the IIAW website for the price of $795.
The IIAW intends to conduct this survey every even year so agencies not participating in the 2022 survey will have the opportunity to participate in 2024’s survey and receive the report free to charge as a member benefit. Should you have any questions, please don’t hesitate to reach out to the IIAW.
• .25 ounces pear-flavored vodka
• .5 ounces green melon liqueur
• juice from half a lemon
• lime twist
• lemon wedge
1. Combine .25 ounce pear-flavored vodka, .5 ounce green melon liqueuer (preferably Midori) and the juice of 1/2 lemon in a cocktail shaker with ice.
2. Shake, then strain into a chilled short glass.
3. Garnish with a lime twist and a lemon wedge.
In 1919, A group of Pennsylvania farmers founded Penn National Insurance to provide affordable workers’ compensation insurance.
Today, Penn National Insurance sells property-casualty insurance in 11 states by partnering with more than 1,200 independent agency operations. In 2012, we affiliated with Wisconsin-based, Partners Mutual Insurance Company. As one company, we bring the personal attention and local focus of a regional carrier, along with the quality of products and ser vices of national carriers.
Interested in partnering with a thriving insurance carrier with superior customer experience? We are looking for select commercial-lines agencies in Wisconsin.
Contact: Vicki Lentz 262-432-3420 vlentz@pnat.com
Contact: Clayton Zogata 715-383-5454 czogata@pnat.com
• Strong financial performance and A.M. Best Financial Strength Rating of A-
• Expanded Commercial Lines products and services with competitive pricing and comprehensive coverages to help our agents grow profitably
• Comprehensive Personal Lines product offerings, including Homeowners Equipment Breakdown and additional protection plans
• State-of-the-art quoting, processing and self-service tools, making it easier and faster to meet your customers’ needs
• Local, experienced underwriting, claims and management staff
WAHVE
• This option is tailored to the needs of an agency who doesn’t have the time to find quality candidates to interview. Let your IIAW HR Business Partner handle the process for you.
• Save time and resources by getting the right person hired faster
• We will manage the application review process and screening of candidates giving you an improved experience providing only qualified candidates for you to interview
• Attract top agency talent through a customized CareerPlug page set up
• Compelling job posting tailor-made for your agency
• Custom applicant scorecards allowing you to measure candidates quickly
• Unlimited job posts on all major job boards (Indeed, LinkedIn, Zip Recruiter, etc.)
• Customized job links for effective hiring (Facebook, other social media sites)
• Reduce interview prep time with Best Practices resources and templates
• Personality assessments designed for your open position
• Customized employment offer letter
• Individual reference checks on qualified candidates
• Unlimited assistance
This option offers free or paid CareerPlug options to choose from. The agency is in control of the process and has additional resources.
• Support from the HR Business Partner
• Customized dashboard set up Job description templates with customization available
• CareerPlug dashboard to manage applicants
Utilize the resources available to find your next new hire on your own.
• CareerPlug dashboard to manage applicants
• Job description templates available within Careerplug
• Option to upgrade to CareerPlug Pro for one year
Let’s face it – Independent agents need good markets to be competitive. Greater access means more opportunities for success. WE’RE HERE TO HELP. Independent Market Solutions creates company relationships for agents who may be unable to secure appointments on their own. Through association membership, agents can access multiple insurance carriers and grow their business into long-term, direct appointments.
imsaccess.com
Did you know that how you handle client claims can increase your E&O exposure? Like many internal workflows of the agency, not having clear guidelines and procedures for employees can lead to poor client claim experiences as well as an E&O situation. A few key reminders should be shared among ALL staff, regardless of role and experience.
It is common for independent agencies to want to be involved in the claim experience for customers, especially within personal lines business. The claim experience can be emotional for clients, so it does make sense that an agency would want that relationship touchpoint and offer their assistance. The danger is when there is insufficient training to help agency personnel remain helpful and empathetic without confirming or denying coverage in the policy.
1. Fortunately, strong claim-handling practices start with a few quick and easy reminders.
2. Never confirm or deny coverage when speaking with the customer about a claim. This is the carrier's decision and responsibility, and the customer may be withholding additional information important to the claim outcome.
3. Always report the claim promptly to the carrier. A claim reported to the agency is considered a claim reported to the carrier, so it is absolutely the responsibility of an agency to make the report as soon as possible.
4. Your client’s information is confidential and should only be shared with the carrier and no other third party without written permission.
5. Document! Document! Document! Keep strong written documentation of client conversations and carrier conversations. Always confirm phone calls in writing and utilize activities and reminders to follow up on open discussions.
6. Have a standard process. This could include utilizing dedicated staff to handle claim calls, setting reminders to follow up on a claim call, or simply assisting with the claim reporting process and then informing the customer they can reach
out with any questions or concerns. Just. Be. Consistent.
7. Be proactive. Before a client ever has a claim, have a standard document or process to help the client understand the claim process from the inception of their policy. Set expectations and a clear understanding of the client-agency-carrier relationship.
All agency personnel should feel comfortable handling claim calls and can maintain a strong relationship with the client during the process. Remember, not everyone is fortunate enough to work in the insurance industry and clients may have unrealistic expectations of how the claim will be handled. Be honest and responsive and always have a plan in place. If a claim may be denied or if the agency made an error in issuing the policy, do not try to make it right. Generally speaking, an E&O claim arises when a customer has an uncovered loss, so it is imperative that the claim handling process is clear and consistent.
If the process of handling claims is not clear and consistent within the agency, feel free to reach out to Mallory Cornell (mallory@iiaw.com) for assistance.
Join our March 2nd Personal Lines Task Force webinar to hear James Redeker, SwissRe Vice President of Claims, discuss current trends, best practices, and agency claim handling procedures. Registration is free (1 WI CE credit pending approval).
iiaw.com/ClaimsWebinar
We're looking for volunteers to serve on the IIAW's councils and task forces. Each council and task force will act as a sounding board for the IIAW and will only have three virtual meetings per year. Participation in the IIAW task forces and councils gives you access to industry experts, exclusive networking events and even FREE CE opportunities during virtual meetings when content allows.
For individuals who are interested in or who have a role in Personal Lines insurance
Virtual Meeting from 9 a.m. to 11 a.m. on 3/2/23 and 7/13/23
For individuals who are interested in or who have a role in Commercial Lines insurance
Virtual Meeting from 9 a.m. to 11 a.m. on 3/1/23 and 7/12/23
For individuals who are interested in or who have a role in Employee Benefits
Virtual Meeting from 9 a.m. to 11 a.m. on 3/9/23 and 7/20/23
For insurance professionals who have an operational or leadership role within an agency or company
Virtual Meeting from 9 a.m. to 11 a.m. on 3/7/23 and 7/18/23
For individuals interested in staying informed and providing feedback to the IIAW's Board on Wisconsin & national legislative and political happenings.
Virtual Meeting from 9 a.m. to 11 a.m. on 2/28/23 and 7/11/23
For insurance professionals looking to cultivate their skills for a successful career by engaging in association activities, professional development, education and events.
Virtual Meeting from 9 a.m. to 11 a.m. on 3/8/23 and 7/19/23
Insurance losses related to jewelry are huge — much more than most insurers realize. According to Department of Justice statistics, 70% of all personal property (contents) theft losses are jewelry. Insurance companies process billions of dollars in jewelry losses each year. Some of these jewelry losses are hidden because they're reported as “contents" losses under a homeowners policy, rather than as jewelry.
Jewelry claims usually fall below the radar for both insurers and agents because the cost of the settlement is comparatively small. But if that jewelry is on a homeowners policy, the impact of the claim can be huge.
Unlike most household contents covered in a homeowners policy, jewelry is small, valuable and very vulnerable. Jewelry is not only stored in the home, but jewelry also travels. It's put on and usually forgotten as we go about our business, taken off and left on dresser or sink, regularly exposed to damage and loss.
At home or out on the town, jewelry is a magnet for theft and it's particularly prone to “mysterious disappearance." Also, unlike other household contents, jewelry is uniquely prone to damage claims.
It's rare to find a homeowner insurer who does not report to CLUE or PILR, because access to those services requires reporting claims. Many bureau-reporting carriers report PAF losses as “property losses." So, if lost or stolen or damaged jewelry is on a homeowner policy, it counts as a homeowner loss.
Once HO-scheduled jewelry losses hit CLUE and PILR underwriting reports, the losses live on, seemingly forever. Even if the insured finds the jewelry or withdraws the claim, the CLUE and PILR listings remain. Because a ring lost a stone, the client could lose their homeowner “claim free" rating. Jewelry claims may even lead to the insured's loss of HO coverage with that insurer.
Homeowner policies with losses are much harder to place with another carrier. Weatherrelated events – forest fires, high winds, tornados, earthquakes, hurricanes, floods – have exacerbated the problem. Many agents already face shrinking sources and rising rates for HO policies as insurers seek to protect themselves from disasters. Prior losses make placing a homeowner policy even more difficult.
“Mysterious disappearance" is the most common peril associated with a jewelry loss. Even if the homeowners policy does not cover mysterious disappearance, once the insured makes a claim, the carrier reports it to the databases. These claims can kill the option to remarket the HO policy.
In addition, homeowner policies usually have restrictions and capacity limitations for jewelry. Many carriers are not willing to write higher-value ($10,000-$20,000) jewelry. It can be difficult to find a policy that adequately covers jewelry and also offers the client a competitive price.
Downsides of the PAF with the HO Insurer
A stand-alone jewelry policy (personal articles floater—PAF) addresses the jewelry need by offering broader coverage, including covering “mysterious disappearance." And most floaters have higher limits than the typical HO policy has.
However, if the standalone policy is with an insurer that reports to CLUE and PILR, as most HO insurers do, losses covered by the PAF will be included as part of the company's aggregate loss report. Jewelry claims can still impact the HO policy.
Just as auto experience can impact account rating, jewelry claims can be an unpleasant surprise. Check with your carriers to see if jewelry losses count against the client's HO experience. If they say “No," get that in writing!
The best choice is a standalone policy with an insurer that specializes in personal jewelry coverage and does not report to CLUE or PILR. Far from being more costly, this solution means savings to the client, because such jewelry policies are quite competitive in price. Some insurers even offer premium discounts not available on homeowner coverage. In the event of jewelry loss, the loss won't affect the homeowner policy and the client's claim-free status.
A word of caution: Not all standalone jewelry policies offer a cash settlement option; they offer only a repair-and-replace option. This could have devastating consequences for the agent, even if the agent had only recommended the insurer. Not informing the client that a carrier offers only repair-or-replace settlements (no cash) could
leave the agent open to an errors and omissions (E&O) problem. Even short of such an extreme consequence, a dissatisfied client at claim time can retaliate by taking all their business elsewhere.
Jewelry is usually a low-premium item, $50-$100. Some agents don't want to bother with it and simply refer their insured elsewhere for jewelry coverage. A good reason to avoid a referral for jewelry is that some insurers specializing in jewelry insurance cross-sell all kinds of insurance through affiliated companies. This means that any insured you refer to such a company for a jewelry policy could be cross-sold for all their other coverage as well – auto, homeowners, business insurance, you name it. Don't risk losing a client's current and future business by referring a jewelry policy to an insurer that cross-sells.
Regardless of its valuation, jewelry usually has great emotional value to the client. Jewelry can be the cornerstone of all your business with that client, both personal and commercial. Rather than simply referring a client to a standalone jewelry insurer, it is better to seek a direct appointment and place coverage yourself. That way you retain control of the account and enhance the client's trust and reliance on you.
Dave Hendry is the founder and CEO of JCRS Inland Marine Solutions. He wrote two books: The Jewelry Inventory and Sales Classification Manual and Jewelry Insurance: The Underwriting and Claims Reference Manual.
You can reach him at jcrs.com/About_JCRS/jcrs_ founder.htm.
This article was originally published on independentagent.com in December.
1PM-5PM
Founders Wing
BRENT KELLY President of Sitkins Group8PM-11PM NETWORKING SOCIAL
Mineshaft
Hosted by the IIAW Emerging Leaders
8AM-9AM
EAA Main Entrance
FLIGHT PATHS 9AM-1:15PM
EAA Breakout Rooms
Brent Kelly, Sitkins Group, brings his extensive hands-on insurance industry experience to InsurCon2023. Our kickoff presentation for this year’s event, Brent will help you gain influence, maximize your potential and grow your book of business.
Join us at Mineshaft where will be enjoying food, drinks and games. Our evening social is included in your InsurCon registration.
Stop by the registration desk at the EAA Main Entrance to pick up your breakfast before heading to your flight paths.
Choose the breakout session that aligns with your interests. Grab-n-go lunch will be provided in each breakout session. See our InsurCon Packet for more information about each flight path.
New Level Partners
Every insurance professional must be skilled to influence or negotiate on a regular basis, so this flight path is open to anyone looking to improve in these areas.
Carey Wallace, Agency Focus Security Financial Bank
Josh Johanningmeier, IIAW General Counsel
We encourage current and future leaders within the agency and industry to come learn more about the future of the independent agency.
1:30PM-4PM EXHIBITOR SHOWCASE
Education Center
4PM-5PM BREAK
5PM-6PM AWARDS CEREMONY
Eagle Hangar
6PM-7PM KEYNOTE PRESENTATION
Eagle Hangar
Lt. Col. Waldo Waldman
7PM-10PM DINNER, DRINKS & NETWORKING
EAA Museum
Viral Solutions
Enhance your digital presence, both personally and as a brand, during this hands-on digital marketing experience.
Grab a drink from the bar and experience the EAA’s brand new Education Center while you network with other professionals. Agency attendees can win great prizes during Blackout Bingo and exhibitor Super Door Prize Giveaways.
Take time to clear your emails, check into your hotel and catch up with old friends prior to the exciting evening lineup.
Celebrate our 2023 awards winners in the Eagle Hangar. Join us as we present Rick Parks, CEO of Society Insurance with the EJ Tapping Lifetime Achievement Award.
This year’s evening entertainment features Waldo Waldman! Waldo is a real-world Top Gun, Hall of Fame Keynote Speaker, executive coach and expert on resilience, overcoming adversity & managing change.
Our final event for InsurCon will surely end this year’s convention on a high note. Take in over 200 historic aircraft while enjoying dinner, drinks and networking. The IIAW has reserved the EAA Museum exclusively for this evening event!
Choose the flight path that best fits your interests, and get ready to take off at InsurCon2023!
New Level Partners
New Level Partners will lead the engaging & interactive Top Gun Communication & Negotiation Skills flight path. This workshop will include essential preparation steps to improve your negotiation readiness. Gain techniques for creating an impactful opener, dropping an anchor early, responding to “no,” and handle objections with confidence.
The superstar pilots at Viral Solutions will lead this Flight Path to Digital Marketing, guiding you through developing a balanced and effective marketing strategy, creating compelling content for your website and enhancing your company’s internal and external communication with tips for generating clear and simple messaging.
Carey Wallace (Agency Focus), Security Financial Bank Josh Johanningmeier (IIAW General Counsel - Godfrey & Kahn)
Sometimes financial & legal planning at an agency take a backburner to day-today activities. However, understanding your financials is a critical component of your operational and strategic success. Come soar with this workshop’s industry experts as we explore perpetuation and financial planning, carrier contracts, legal issues, banking strategies and so much more more to help you take your agency to new heights.
The bottom line: In a competitive labor market with more employees demanding flexible working conditions, the data suggests that giving them that flexibility is actually good for business.
Don’t look now, but business as usual is about to be turned on its ear. Again.
A recent trial study conducted by 4 Day Week Global reveals that a four-day workweek is a huge boost to productivity. The pilot, which ran for six month, followed 3,300 workers and 70 companies as they adopted a temporary four-day workweek. The workers would get 100% pay for 80% of their usual time.
The results: a shorter workweek is good for business and for employee productivity. Businesses report an 8.14% revenue increase during the trail period and a 37.55% increase in revenue over the same six-month period of the previous year. Employees were reporting being less burned out (by 67%), exercising more (23.7%) and feeling just as or more productive and doing a better job at work (51/7%).
Companies agree: the trial companies rated their overall productivity experience 7.7 on a scale of 0-10 with 10 being very positive. They were equally positive on their organizations’ performance during the trial period (7.6). (Included in these results are the experiences of 12 companies whose operations are fully remote.)
Even better news: Both the companies and employees in the trial think the switch is a change for the better. None of the companies in the trial were planning to return to the five-day workweek. A surprising 97% of employees who responded to the survey said they want to continue the four-day week.
Don’t think so? Take recent data released by Microsoft Japan. After implementing the four-day workweek, the company reported at 40% increase in productivity.
The same goes for offering more flexibility in where your employee works. In-house studies conducted by Best Buy, British Telecom, and Dow Chemical show that remote work can be a benefit: Each company reports that their remote workers are 35%-40% more productive than in-house colleagues. American Express remote employees were 43% more productive than office-based staff. And AT&T reported a savings of $150 million in extra hours of productivity from telecommuting employees[1] not to mention a $30 million-per-year savings in real estate needs.
Your organization can realize similar results by adopting a more flexible work culture. Some of the benefits include:
• Better productivity and accuracy
• Increased revenue
• Happier employees
• Better employee attraction/retention results
Offering more flexibility does require a shift in management style. We recommend:
Setting clear expectations.
Employees are much more productive when they know what the goals are. Communicate one-on-one with your employees to talk over how their roles fit into the larger company goals. Set performance benchmarks and communicate with employees to make sure they’re meeting expectations.
This allows you to add any retraining, mentoring or coaching that your employee may need, which helps keep productivity higher over time.
Keep communication flowing.
Employees work better and feel much more connected from nearly any location if there is a real effort to engage them regularly. Talk with employees daily. Meet oneon-one with them weekly. Give them multiple avenues for giving and receiving feedback. Keep those video cameras on so that every employee sees and is seen by the rest of the team and managers.
Rethink management style.
With the emergence of employees in nearly any location, managing them as you would an in-house team simply doesn’t make sense. The hours-worked model of employee management may not be the most productive for your team.
As you reimagine the number of days per week your employees work, try reimagining those hours they work, as well. Some employees thrive in early morning or late evening.
If your employees meet their benchmarks and performance goals, does it really matter if they did it in 6 hours instead of 8?
Communicate, communicate, communicate.
It bears repeating; Communication is key to a successful flexible work culture. Schedule regular virtual meetings with individual employees and teams. Keep them short and to the point and always allow feedback. Create shared folders so that you and your employee have access to discussion notes and the goals you’ve set together. Use team meetings to establish ownership/ accountability on projects. The same goes for issues. Appoint someone to explore solutions, then discuss at the next meeting.
The more your organization focuses on collaborative communication and action, the more involved and engaged your employees will be no matter where they work or how many days per week you operate. Proactive engagement helps with morale and with attracting new employees.
As work transforms, the more flexible your organization is, the better able you’ll be to respond. The agile company is one that can transition faster as new work models emerge, and one that can attract and retain top talent. Is your organization ready?
After more than 10 years of unprofitability, the commercial auto insurance market is continuing down a bumpy road as the market outlook remains challenging. While the industry may have gotten a reprieve during 2021, posting a combined ratio below 100 for the first time in more than a decade, the first half of 2022 points to a return of difficulties, according to an AM Best report.
However, there are reasons for agents to be optimistic. “The demand for transportation services remains strong because a lot of freight is still moving across the country, but at the same time there are several headwinds that persist," says Mark Gallagher, vice president, national transportation practice leader, Risk Placement Services (RPS).
While the National Bureau of Economic Research has not officially declared the country to be in recession, Jamie Dimon, CEO of JP Morgan Chase, warned in October that a recession could hit the U.S. within the next six to nine months. A recession, coupled with the numerous other challenges facing the commercial auto insurance market, will certainly create additional headaches.
“A drop in consumer demand will negatively impact the trucking industry because it will likely result in a drop in freight tonnage, and that will put downward pressure on freight rates," says Peter Matthews, senior vice president, commercial truck, IAT Insurance. Another challenge facing the industry includes “inflation, which has already put pressure on operating costs for trucking companies with fuel being one
of the largest costs," Matthews says.
Meanwhile, the war in Ukraine continues to exacerbate rising fuel prices and “persistent inflationary pressures mean that clients and insurance carriers are also dealing with the high cost of equipment, as well as the high cost of repairs," Gallagher says.
Additionally, lingering supply chain issues brought about by the coronavirus pandemic means “shortages have led to a significant increase in the cost of replacement parts and, to an even larger degree, the costs of used trucks as new trucks became scarce," says Nick Saeger, assistant vice president of transportation products & pricing, Sentry Insurance.
Meanwhile, an ongoing challenge that predates the pandemic is the driver shortage. “The current driver shortage is estimated to be approximately 80,000 drivers, and that has led to several issues when it comes to underwriting the driver pool, including an aging driver population, young inexperienced drivers and high driver turnover," Matthews says.
In recent years, social inflation and nuclear verdicts have also become a growing concern within the commercial auto market. In one example last year, a Florida court ordered two trucking companies—AJD Business Services Inc. and Kahkashan Carrier Inc.—to pay a victim $1 billion after a 2017 crash on a stretch of Interstate 95 in northeast Florida.
“The drivers of social inflation—attorney
involvement and their evolving tactics, litigation financing, and societal feelings toward large awards—are all still present and driving an increase in the number and magnitude of nuclear verdicts," Saeger says. “Any slowdown that might have been felt during pandemicrelated shutdowns was likely both artificial and temporary."
Despite these headwinds, Gallagher is upbeat about the opportunities for many transportation operators and insurance providers moving forward, particularly in segments that can adapt to changing economic conditions.
“Trucking and transportation have always been the lifeblood of America's economy, and we still foresee opportunity continuing into 2023," Gallagher notes in the “2022 U.S. Transportation Market Outlook" from RPS. “Those insurance providers that are positioned best through market access and speed of product delivery will find growth opportunities in any market cycle in meeting the needs of a wide array of transportation clients."
Commercial auto continues to be one of the most challenging lines of business for insurers with “nuclear verdicts and unfavorable tort environments, combined with rising inflation, continuing to put pressure on insurance carriers to continue to increase rates to improve profitability," Matthews says. “However, the best risks will always have more options and will be able to secure the best rates."
Echoing this sentiment, Gallagher says, “Clients that have poor safety scores or a poor loss history are going to certainly face higher rates than those that have good safety history and good loss results."
article was originally published on iamagazine.com in
Research shows that the average customer retention rate for the insurance industry is 84%. As an independent agent, you know that keeping on your existing customers is crucial to your agency’s success. However, you also know how challenging it can be. There is a lot of competition in the marketplace, and your customers are bombarded with ads everywhere they go. If you want to increase insurance customer retention within your agency, you need to give current policyholders a reason to stay. More specifically, you must focus on delivering an exceptional experience that other agencies can’t match.
Here are five ways to do just that…
A large part of ensuring customers have a satisfying experience is to avoid any frustration on their part. You should strive to make everything as simple and convenient as possible. This includes tasks such as the following:
• Navigating your website
• Using your app (if applicable)
• Getting in touch with you
• Managing their policy
The less friction your customers encounter, the less frustration they’ll feel. By making things easy for them, you can look forward to greater satisfaction and—as a result— loyalty.
Insurance can be a confusing topic for the average consumer. That’s why your customers will appreciate you more if you go above and beyond to simplify it all for them. In addition to making yourself available to answer their questions, provide them with helpful materials so that they can educate themselves. In doing so, your customers will see you as a trusted source of information and a valuable advisor.
Regular communication is critical to increasing insurance customer retention. It demonstrates to your customers that you care about the goings-on in their lives. However, not every customer enjoys receiving a phone call.
Therefore, you should also use the method they prefer— be it phone, email, text, etc. Adapting to each customer’s communication preferences requires little effort, but it can go a long way.
There’s no question that customer feedback is invaluable, especially with regards to insurance customer retention, which is why you should use it to your advantage. Send surveys (via email or print mail) once a year to gauge each customer’s satisfaction level. Then, apply the insights from their responses to address concerns and make improvements. By encouraging customers to share their thoughts, you can make them feel valued and heard. Further, you can use the opportunity to find a better option for those who are unhappy with their policies and thinking about switching agencies.
Along with bringing in additional revenue, cross-selling can increase your insurance agency’s customer retention rate. Those who have multiple policies with an agency tend to be more loyal and less likely to leave. Staying is more convenient for them, and they enjoy working with an agent who can meet their unique needs. So, look for opportunities to cross-sell by using what you learn from feedback and regular communication. Knowing about significant events and problems they’re experiencing can help you suggest suitable options.
Increasing insurance customer retention can be difficult, but it’s not impossible. It’s simply a matter of taking steps to improve the experience you offer. By showing your existing customers that you truly care about them and their needs, they’ll be more likely to stay on for the long term—and even refer your agency to others.
If you need additional advice or support in enhancing your customer experience, visit viralsolutions.net and request a free consultation.
JANUARY
1/27 11AM-2PM E&O - Roadmap to Homeowners Insurance
1/30 8AM-11AM Commercial lines Claims That Cause Problems
1/30 10AM-12PM Business Auto Claims That Cause Problems
1/30 2PM-3PM Claims - Made Policies - The Most Dangerous Insurance Policies
1/31 8AM-11AM Builders Risk and Contractors Equipment
1/31 2PM-5PM Agency Management Based E&O and Ethics 2/1 1PM-4PM E&O - Roadmap to Homeowners Insurance
FEBRUARY 2/2 11AM-12PM E&O Exposures: Websites & Social Media 2/2 12PM-2PM Contracts Agents Should Read 2/6 8AM-9AM Claims - Made Policies - The Most Dangerous Insurance Policies 2/6 10AM-1PM Commercial Lines Claims That Cause Problems 2/6 12PM-2PM Business Auto Claims That Cause Problems 2/7 8AM-11AM Ethics in the Insurance Industry 2/7 12PM-2PM Insight on Modern Day Cyber Exposures & Risk Mitigation 2/7 3PM-6PM E&O - Commercial Property Coverage Gaps & How to Fill Them 2/8 8AM-10AM Embracing Directors & Officers Liability Insurance 2/9 11AM-2PM E&O Risk Management: Agency E&O Exposures and Defenses 2/9 12PM-2PM Those Kids and Their Cars
content feature presented by the Custom Publishing unit of Business Insurance and Best Companies Group that lists the agents, brokers, insurance companies and other providers with the highest levels of employee engagement and satisfaction. Harrisburg, Pennsylvaniabased Best Companies Group identifies the leading employers in the insurance industry by conducting a free two-part assessment of each company. The first part is a questionnaire completed by the employer about company policies, practices and demographics; the second part is a confidential employee survey on engagement and satisfaction.
The program divides employers into the categories of small, 25 to 249 employees; medium, 250 to 999 employees; and large, 1,000 or more employees. This year’s report features 100 companies of various sizes, from 25 employees to nearly 9,000.
The ranking and profiles of the winning companies were unveiled as a supplement in the November 2022 issue of Business Insurance and online at businessinsurance.com.
Fond du Lac, WI (12/6/22) - Society Insurance has been named in the Business Insurance Best Places to Work in Insurance 2022 program, which recognizes employers for establishing exceptional workplaces where employees can thrive, enjoy their work and help their companies grow. Society ranked 11th in the nationwide Medium Employer category, which consists of companies with 250 to 999 U.S. employees.
Based in Fond du Lac, Wisconsin, Society Insurance insures restaurants, bars and other small-to-medium businesses in nine states. The company ensures growth and development opportunities for its 332 employees via personalized career coaching, tuition reimbursement and student loan repayment. Employees receive a generous compensation and benefits package, including a 401(k) profit-sharing match and defined-contribution retirement deposits.
Society’s culture reflects its core belief that employees who lead a balanced, happy life are motivated to excel in serving their customers. Remote work and telecommuting options, flexible scheduling and ample paid time off allow each person to create their ideal work/life balance. Wellness and health club reimbursements, free annual health risk assessments and complimentary health nurse coaching sessions are key pieces of the wellness program. And because nothing feels better than giving back, Society promotes community stewardship with grants from the employee-led Charity Committee, paid volunteer time off and an annual charitable match program.
“We are honored to be recognized as one of the Best Places to Work in the insurance industry,” said Heather Boyer, Society Insurance president. “The survey results show the importance of our company values and how they build a strong culture of belonging that is present in the engagement of our employees. We care about our employees and their well-being. When employees feel valued, cared for and that they belong here, they in turn take care of others by delivering an exceptional customer experience for our independent agents, policyholders and claimants.”
Best Places to Work in Insurance is an annual sponsored-
Neenah, WI (12/6/22) - SECURA Insurance will donate $39,000 to 13 nonprofit organizations through the SECURA Gives Back contest, which is designed to help independent insurance agencies support organizations in their communities.
More than 340 agents nominated nonprofits through the SECURA Gives Back contest. This year, 13 agencies were randomly selected to win a $3,000 donation each for a nonprofit of their choice. Since 2017, a total of $171,500 has been donated to 65 nonprofits through SECURA Gives Back.
"We are honored to give back to the organizations that make our communities a great place to live, work, and play," said Mike Campbell, SECURA Insurance Director –Specialty Lines Underwriting. “This campaign is our way of saying thank you to our agents for all the work they do with us and within their communities. Not only do our agents and associates volunteer with nonprofits, but we also offer insurance coverages designed to protect nonprofit organizations from the unique risks they face.”
The winning agencies and the nonprofits benefiting from the 2022 SECURA Gives Back contest are:
• Arizona - ATP & Associates, LLC, dba A.T. Pancrazi Insurance Agency benefiting Yuma Community Food Bank
• Colorado - Schey Insurance/Ahbe Group benefiting Samaritan Cycling
• Iowa - AssuredPartners Great Plains Region benefiting Hawthorn Hill
• Illinois - Midwest Insurance Agency Incorporated benefiting Big Brothers Big Sisters of McHenry County
• Indiana - Gregory & Appel benefiting Pink Ribbon Connection
• Kansas- Farmers Union Midwest Agency benefiting Sole Reason Topeka
• Kentucky - Peel & Holland benefiting Family Service Society
• Michigan - Peterson McGregor & Associates benefiting Big Brothers Big Sisters of Northwestern Michigan
• Minnesota - Robin Swanson Insurance Agency benefiting The Village Family Service Center
• Missouri - First State Insurance Agency benefiting Laclede Industries
• North Dakota - Bell Insurance benefiting FirstLink
• Pennsylvania - Associated Insurance Management benefiting International Performing Arts Summit
• Wisconsin - The Insurance Center benefiting Pillars
For additional information about the company's charitable giving and community support, visit secura.net/community.
SECURA Insurance, headquartered in Neenah, Wis., is a regional group of property-casualty insurance companies operating in 13 states. Approximately 550 independent insurance agents represent the group, which provides a broad range of competitive commercial, personal, farm, nonprofit, and special events products. SECURA Insurance is known for providing exceptional service to its agents and policyholders since 1900, and is rated A (Excellent) by A.M. Best for its excellent ability to meet policyholder obligations. It is a Ward’s Top 50 company for outstanding results in financial performance and consistency over a fiveyear period, and it is a certified Great Place to Work. Visit www.secura.net to learn more.
“Acuity’s common purpose begins with the statement, ‘With kind hearts, we dare to care,’ and supporting our community is one way we show that care,” said Ben Salzmann, Acuity President and CEO. “We are incredibly grateful for the opportunity to contribute to charitable organizations in our community now and throughout every year.”
This is the tenth consecutive year that Acuity employees have directed a special year-end contribution, which adds to the company’s longstanding tradition of philanthropy. Over the past 10 years, Acuity has made over $21 million in charitable contributions.
Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 125,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 30 states. Rated A+ by AM Best and S&P, Acuity employs over 1,500 people.
Sheboygan, WI (Dec. 28, 2022) – At a December 2022 Town Hall meeting, Acuity employees determined the distribution of $500,000 among six different charitable organizations. Those organizations included Conquer Cancer, the ASCO Foundation; Fresh Meals on Wheels; Mental Health America; Safe Harbor; The Salvation Army; and Sharon S. Richardson Community Hospice.
Based on employee votes, Mental Health America Lakeshore received the largest allocation of nearly $133,000. The other five groups each received donations ranging from over $26,000 to $104,000.
“The state of mental health in our nation is at a breaking point, and our goal is to fill that gap with education, training, support groups, and advocacy in the community,” said Mental Health America Lakeshore’s Dana Bear, Director of Strategy and Partnerships.
“Acuity’s donation helps fund programs in our schools,” added Executive Director Julie Preder. “We must help the younger generation with how to prepare their minds and focus.”
Additionally, each Acuity employee was invited to choose any qualifying charity to receive a $100 donation from Acuity, for a total of more than $150,000.
West Bend, WI (Jan. 4, 2023) – West Bend Mutual Insurance Company announced the appointment and promotion of Dave Ertmer to Chief Operating Officer (COO). Having joined West Bend in 2009 as director of workers’ compensation claims, Dave's industry background includes almost three decades of insurance experience and strategic leadership. In 2011 he was promoted to vice president –Claims, responsible for all claims operations across the enterprise, and since 2019, he's served as senior vice president – Claims.
"As we continue toward achieving our strategic goals, we are taking the necessary steps to introduce the COO role to our leadership team. This new position will be instrumental to our operational performance and ensure we're positioned for the future," stated Kevin Steiner, CEO of West Bend.
"Dave has a proven leadership track record in operational excellence and effectiveness, coupled with a strong desire to drive strategy and execution. We look forward to Dave's continued contribution and dedication to our associates, operational excellence, growth, and profitability," stated Rob Jacques, president of West Bend.
As COO, Dave will continue to lead claims operations and have expanded responsibilities overseeing the business operations. Additionally, he'll lead the company's longterm initiatives and goals, including emerging technologies and innovation.
For over 125 years, West Bend has provided valuable insurance coverages and services to business owners and home and auto owners. West Bend has earned a reputation in the industry for building and nurturing strong relationships with agents through personal contact, responsible actions, and a genuine concern for its valued partners. Today, more than 1,500 independent insurance agencies across 15 states represent West Bend.
Budgeting is the practice of trying to reasonably estimate a company’s future expenses and revenue streams so you can monitor the company’s financial health and make informed decisions. “When you set a budget, you are taking control of your future.”
– Unknown
Budgeting does not need to be hard, and in this article we are going to do our best to simplify it for you. With a little time and consistency, a budget can be one of the most powerful tools you’ll ever have inside your agency. Let’s break it down!
Creating a budget should start with a list of goals. Ask yourself, what are the long-term goals for the Agency? What will success look like in the near term? Make sure that the goals that you set are (SMART) Specific, Measurable, Achievable, Relevant, and Time-based. These goals will have an impact on your revenues and will also determine where you will need to allocate your resources in the next year. Your goals will help identify the specific areas that you want to invest in to ensure that you are making progress. Many agencies operate without a budget and instead rely on their gut instincts, or worse, have to wait until the end of the year to determine if the resources needed to invest in new tools or resources are available. Having a budget can provide you with greater clarity and allow you to act with confidence.
We realize that building a budget is not easy for everyone, so we have created a budgeting tool that can be used to help you build one for your agency. You can find this budgeting tool here: bit.ly/3Z5ZW4v
This tool is separated into several tabs that work together and are designed to simplify the budgeting process. On the first tab, you can categorize your expected expenses. Once these are entered there they will automatically fill in the “Expense” portion of the next tab, Annual Budget.
After adjusting and completing your Annual Budget tab, it will automatically break these expenses down by month in the Monthly tab. In this tab, you can fill in your actual revenue and expenses every month, and it will automatically compare them with the amounts you budgeted. The monthly income statements pull to the Annual tab, which provides an overview of how well you have maintained your budget during the year.
Here is an overview of the sections in the tool:
Income statements are split into two major sections: Revenues and Expenses
Revenues can be further categorized into Commissions & Fees, Contingency/Bonus, and Other Income:
• Commissions & Fees: This category can include any revenue resulting directly from sales of insurance to Agency customers. This includes direct bill commissions, agency bill commissions, agency fee commissions, and any commissions received from insurance brokers. Only the agency’s portion of commissions and fees belong in this category. Any revenue collected in an Agency Bill situation that is to be remitted to a carrier should not appear on any part of the
income statement because it is not owned by the Agency. This portion is collected and held in a Trust Account on the Balance sheet until it is remitted to the carrier.
When budgeting for Commission and Fee Revenue consider:
Expected renewal income: This should be based on last year’s performance, your agency’s retention rate, expected rate increases, and any other expected changes from carriers. Be sure to eliminate any polices that you know have been lost or by their nature are not expected to renew (for example bonds).
New Business: Include the new business you expect in the coming year based on the goals that you have set for your team.
• Contingency/Bonus: This category includes all contingency income received from carriers, and any bonus income received from a cluster/ network/aggregator/alliance. It differs from Commission & Fees income from a budgeting standpoint, because, although it is an indirect result of sales, it is contingent upon your performance and the guidelines set by each carrier for new business production, retention, loss ratios and other factors. It can also be impacted by the performance of a network/aggregator/alliance that the agency is a member of. As you know, contingencies can vary and are not guaranteed. We strongly recommend that agencies do not include contingencies in their operating budget.
• Fee Income: Any fee income can be estimated based on the previous year performance as well as the goals for the upcoming year.
• Other Income: Oftentimes, Agencies will have revenue streams resulting from activities not related to the sale of insurance. For example, if the Agency owns their office building, they may have rental income.
Expenses are categorized into four categories: Payroll & Benefits, Selling Expenses, Operating Expenses, and Administration Expenses:
Payroll: This category should contain any wages, commissions, salaries, and bonuses paid to the
Agency’s owners/employees andany amounts paid to 1099 Employees (outside contractors). It should not contain any dividends paid to shareholders, which are considered administrative expenses.
Benefits: This category contains any expenses associated with employee benefits. It can include items such as retirement plans, employee insurance, and the employer portion of payroll tax expense (This does not include employee withholdings, which should not appear on the income statement.)
Selling Expenses: Selling expenses are expenses that result from efforts to make sales or retain customers. The most common categories in this section include marketing, promotions, advertising, travel, meals, and automobile expenses. It should not include expenses that are necessary for the day-to-day operations of the Agency. For example, although an office renovation may increase sales by improving customer experience, the main result of the renovation is not increased sales but providing a safe and effective work environment. A customer referral program, by contrast, increases sales directly. For this reason, the entertainment, meals, travel, and automobile expenses that should appear in this section are expenses directly associated with sales activities, not personal meals, travel, or vehicles.
Operating Expenses: Operating expenses are expenses incurred to ensure that the Agency can continue to operate effectively. Some common expenses included in this category include, rent, utilities, technology, licenses, business insurance, and professional services. For example, telephones are necessary in order to ensure that the Agency is able to contact clients, potential clients, and carriers. Therefore, telephone expenses can be considered operating expenses. However, personal cell phones should not be included in this expense if they are not used for business purposes (similar to automobile expenses, discussed above).
Administration Expenses: Administration expenses are expenses that cannot be directly attributed to the operation of the agency. For example, Officer Life Insurance (also known as Key-Person life insurance) is included in this category because this expense is not a result of the Agency’s efforts to sell insurance and is not necessary to maintain the day-to-day operations of the Agency.
It also includes expenses like Depreciation, Amortization, Interest Expense, and Shareholder Distributions. In calculating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), many (if not all) administrative income and expenses are removed or added back in that calculation.
When budgeting for any business, it is important to estimate any increases/decreases in expenses, capture new expenditures that are expected in order to accomplish your stated goals as well as the estimated increases or decreased in revenue.
Typically, agency revenue cannot increase without agency expenses increasing as well. For example, your business plan for next year might be to increase Agency Commissions by 10%, but how are you going to achieve this goal? You will need to consider what amount of your current book of business you expect to retain. Remove any accounts that will not renew, like bonds for example. In addition, apply a reasonable assumption for your retention rate based on past performance. Then plan out how you will achieve that goal, for instance, you might need to hire a new producer, start a local ad campaign, or invest in a tool or technology to help create capacity on your team. When planning for revenue goals, keep in mind that revenue can also change due to circumstances like economic conditions, but these changes are harder to predict.
Changing circumstances can affect multiple parts of the income statement. For example, if a producer is retiring, this will decrease next year’s compensation expenses, but it will also decrease next year’s revenue. When making an adjustment to revenues or expenses, remember to consider how this circumstance may affect other parts of the income statement.
Sometimes the effects of changing circumstances can be hard to predict, such as the effects of local economic conditions. For example, if a large company opens up a new manufacturing facility in your area, it will likely improve the local economy, but it is hard to calculate the effect it will have on your Agency. In creating a budget for your Agency, it is better to only include increases in revenue when you can easily estimate them and when they have a fairly high likelihood of occurring.
Remember: Your agency’s expected revenue will set the “tone” for your agency’s expected expenses. Overestimating future revenue may result in overspending if you are not cautious.
Ideally, estimates for specific expenses should draw on real data.
One method for estimating your future expenses is to obtain estimates directly from the business(es) you are expecting to purchase goods/services from. For example, the price of a new Agency Management Software can usually be obtained by either going to their website or by contacting the manufacturer directly. This is the ideal method for estimating expenses because it reflects the cost of the item right now.
Occasionally, a new expense may not have a “market price”, or the market price may be difficult or impossible to obtain. For example, you may be expecting to add a new producer, but are not sure how much you will have to pay them in their first year, and furthermore, you are not sure how it will affect your revenue. The best option in this case is to look at past data and use it as a benchmark. Historically, how much have you paid producers in their first year on average? How much revenue have new producers generated in their first year on average?
Once you have built your budget, be sure to share the goals and measurement metrics with your team. One of the benefits to establishing a budget is determining the key performance metrics that you can use to assess your overall and individual performance across the team. By mapping out the year, you can have well-defined metrics that you can use as a gauge all throughout the year. This oversight and management will allow you to adjust or pivot if something unexpected occurs or if a new opportunity arises.
Give the budgeting tool a try and let us know what you think!
> Lauren Washington Financial Analyst & Accountant, AgencyFocus
At Western National Insurance, nice is what’s guided us for over 100 years. And we’re just getting started.
Western National Insurance. The power of nice.
