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Open Door Policy The Time Is Right For Trusted Choice® . . . . . . . . . . . . . . . . . . . 4 Commentary From Counsel Phantom Damages In Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . 10
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Government Affairs Total Recall . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
for what you need to know. Take a look
News From ACT A Millenial Looks At Social Media, Marketing & Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . 24
proud to support this brand.
> OUR ADVERTISERS AAA ................................................................ 30 ACUITY Insurance ............................................ 31 AmTrust North America .................................. 22
President-elect .............................................. Michael Froh P.O. Box 1320, Sheboygan, WI 53082-1320
Automation/Technology ............... Cathleen Christensen P.O. Box 949, Fond du Lac, WI 54936-0949
Arthur J. Gallagher......................................... 27
Secretary-Treasurer ......................................David Dunker P.O. Box 443, Brookfield, WI 53008-0443
Employee Benefits............................................. Tim Bever 555 Main St. #320, Racine, WI 53403
Chairwoman of the Board ........................... Linda Steiner 555 Main St. #320, Racine, WI 53403
Finance & Compensation ............................ Dave Dunker P.O. Box 443, Brookfield, WI 53008-0443
State National Director ..................................Skip Hansen 100 North Corporate Drive #100, Brookfield, WI 53045
Government Affairs .....................................Tom Helbach P.O. Box 40, Mosinee, WI 54455-0040
2011-2012 Board of Directors
Industry Relations ..............................................Ted Haase P.O Box 6, Seymour, WI 54165
Erickson-Larsen ............................................. 25
Membership Development ................................. Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610
IMT Insurance ................................................. 26
Smaller Agencies .................................... Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236
JM Wilson ....................................................... 28
Jeff Rasmussen 525 Junction Road, Madison, WI 53717
Technical ......................................................Andy Burkart P.O. Box 1320, Sheboygan, WI 53081-1320 Young Agents .......................................... Derek Wickhem P.O. Box 1500, Janesville, WI 53547-1500
Axley Brynelson ............................................. 29 Badger Mutual ................................................ 28 Big “I” Professional Liability.............Back Cover Burns & Wilcox .................................................11
Pekin Insurance.............................................. 26 SECURA Insurance ........................................... 14 SFM ................................................................ 20 Society Insurance............................................18
Frederick Thomas 330 East Kilbourn Avenue, Milwaukee, WI 53202
p . co m
and welcome to Trusted Choice. We are
2011-2012 Committee Chairs
Bruce Kommers P.O. Box 66, Antigo, WI 54409-0066
r ke r s c o m
ad on page 8) provide a good foundation
Agency Operations................................. Sandra Hardrath P.O. Box 1030, Manitowoc, WI 54221-1030
Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583
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membership. There’s no extra cost for
2011-2012 Executive Committee
Thomas Holter P.O. Box 938, Beloit, WI 53512-0938
nce.
is now available to you as part of your
President............................................................Mike Hierl P.O. Box 949, Fond du Lac, WI 54936-0949
Chris Costakis 251 Progress Way #300, Waunakee, WI 53597-2520
the differe
The IIA of Wisconsin is now a Trusted
IIAW Capitol Report Legislature Adjourns Politically Explosive Session . . . . . . . . 16
Executive Vice President - Matt Banaszynski
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On The Cover…
Choice® Association. This great brand
Independent Insurance Agents of Wisconsin
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Eric Schwartz, Editor
Member Profile The Starr Group: Knowledge Drives This Independent Agency. . . . . . . . . . . . . . 12
725 John Nolen Drive, Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 ■ Fax: (608) 256-0170 ■ Web: www.iiaw.com
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– A knowle
MAY 2012
The Hanover .................................................... 19
Cap Wallrich P.O. Box 90, Shawano, WI 54166-0090
Trusted Choice®................................................ 8
Matthew Weimer 100 North Corporate Drive #100, Brookfield, WI 53045
West Bend ........................................................ 2
Donald Williams P.O. Box 595, Beaver Dam, WI 53916
Wilson Mutual .................................................. 21
MAY 2012
WISCONSIN INDEPENDENT AGENT
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OPEN DOOR POLICY
OPEN DOOR POLICY
THE TIME IS RIGHT FOR TRUSTED CHOICE ® For many years, the IIA of Wisconsin did not support the Trusted Choice® brand. The Association’s leadership raised many legitimate concerns regarding its success and ability to compete. This initiative was met with opposition by our membership and the IIAW chose not to move forward with promoting Trusted Choice®. Today, a vast majority of IIABA’s 22,000 member agencies — representing more than 300,000 agents across the country — participate in Trusted Choice®. Our Association has decided that it’s best to move forward with educating our members about Trusted Choice®; there is no apparent disadvantage. Agencies will not see their dues increase to participate in Trusted Choice®. The IIA of Wisconsin will absorb the cost and include it as yet another valuable member benefit.
HOW AGENTS ARE LEVERAGING TRUSTED CHOICE® What’s the key aspect to building a brand over the long term? Advertising, you might say? Well, that is an important brand “touch-point.” But in any serious brand-building campaign, which takes place over multiple years — even decades — how the customer actually interacts with the product or service is most important. In insurance, these brand touch-points involve your staff working with customers and prospects. Advertising messages can set the stage for those interactions, but how your staff serves customers and prospects is the true test of your brand. That’s why Trusted Choice® has put in place a dynamic branding program allowing for flexibility at the local level. How is this achieved? Remember that Trusted Choice® > Matt Banaszynski is the does not replace Executive Vice President your agency’s of the Independent Insurance Agents of brand — it adds Wisconsin. Contact him value to your at matt@iiaw.com. agency’s brand.
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Thus, if you already have a solid agency brand, you can position Trusted Choice® as adding further value to the services you already offer. (By way of example, think of “Intel Inside” or the “Good Housekeeping Seal of Approval.”) Here are some impactful ways agents and brokers are leveraging Trusted Choice®:
Pledge of Performance Trusted Choice® provides a road map for agents to offer a consistently positive customer experience — it’s called the Pledge of Performance. The 10-point Pledge responds to consumer demands for professionalism, choice, customization, 24/7 service and advocacy. In thinking of how to best serve your customers, you don’t have to reinvent the wheel! With language from the Pledge, participating agents are writing open letters to clients, highlighting the benefits for customers of using their Trusted Choice® agency. Agent and broker Websites proudly highlight an overview of the Pledge, with the full Pledge just a click away.
! Using the Pledge as the basis for customer survey questionnaires. ! Mailing the Pledge to customers with a letter from the agency owner. ! Incorporating language from the Pledge in their telephone on-hold message. Are you and your staff embracing the Pledge and living up to its promises? Are you maximizing the Pledge’s power as a marketing tool?
Logo, Marketing Materials and Stationery Thousands of participating agents and brokers are proudly displaying the Trusted Choice® brand name and logo. (Remember that the logo has been tested, and consumers respond positively to it.) Agents have reprinted their marketing materials and stationery around the Trusted Choice® logo guidelines. Examples include: ! Complete proposal kit (sales presentations, proposals and materials) ! Letterhead, envelopes and business cards ! New-client welcome packages
Here are some other ways agents are using the Pledge of Performance: ! Running ads in their local paper stating the Pledge.
! Client bills and newsletters ! Building signage ! Logo apparel
! Having the Pledge made into a framed wall hanging in the reception area — and in every office or cubicle — as a visual reminder for employees and customers of the firm’s commitment. ! Discussing a different bullet from the Pledge during weekly or monthly staff meetings so employees will be fully invested in these performance criteria.
! Bumper stickers and license plate frames ! Client gifts (calendars and other logo items) ! E-mail signatures ! Website templates ! Coffee cups used in your office
WISCONSIN INDEPENDENT AGENT
MAY 2012
Important note: Every Trusted Choice® agency must adhere to the logo usage rules. Random variations in colors, fonts, logo designs and messaging are not permitted for legal reasons and for consistency in presentation to consumers, just as is the case with any national brand. Visit the Logos/Pledge tab at www.TrustedChoice.com/agents to download the logo and logo rules.
Trusted Choice Website ®
Besides refreshing their own Websites with the Trusted Choice® logo and other materials, agents and brokers also are tying into the Trusted Choice® Website (www.TrustedChoice.com), which links consumers with local participating members and provides helpful information on a number of personal and business insurance topics. The Trusted Choice® Website plays a vital role in the program’s outreach to both agents and consumers. The site hosts an Agency Locator through which consumers can find the agency that is right for them based on location, line of business and even languages spoken by agency staff. Member agencies are benefiting from this lead-generation tool by completing an agency profile at www.TrustedChoice. com/agents. Agents also are keeping their agency profiles updated — for example, if they add new office locations, they are updating their profiles at the Trusted Choice® Website.
Consumer Agent Portal (CAP) At the annual convention, IIABA Chairman Mike Donohoe and Scott Deetz, CEO at Project CAP, provided an update on CAP and how it was working cooperatively with Trusted Choice® to launch later this year. Project CAP is an industry initiative focused on helping the independent agency channel increase personal lines market shares by leveraging digital marketing. Project CAP will help increase the online visibility of the independent agent by differentiating the independent agency value proposition. The Consumer Agent Portal is being developed to help independent agents compete more effectively against the marketing strengths of direct writers and captive agents. It will help grow one’s agency business by expanding online presence as well as by delivering new, qualified and inbound prospects from CAP’s national Web presence through the Trusted Choice® Website. The CAP team has been working on “CAP in a Box” kits for all IIABA members to assist agents in creating an effective digital marketing strategy. Project CAP has released this product online and you are encouraged to check it and other product options
MAY 2012
out on their Website at projectcapmarketing.com. In the coming months, you will learn more about CAP. With this information, you will be able to make an educated decision as to whether or not CAP is something you want to pursue for your agency.
Advertising All Trusted Choice® agencies benefit from the program’s national advertising. But they also can capitalize on professionally developed tagable TV, radio and print ads that educate consumers on the value of doing business with their Trusted Choice® agency. These TV, radio and print ads direct consumers to look for their Trusted Choice® agency for choice of companies, customized policies and advocacy support.
Trusted Choice ®
Savvy agents have learned that running their own tagged advertising (tagged with their name and contact information) in conjunction with the national ad buys gives their agencies the appearance of running a much bigger campaign than they actually pay for. Example: One agency is tagging the Trusted Choice® TV spots — then bought local time on the same programs Trusted Choice® chose for its media buy. This agency also tagged a Trusted Choice® radio spot and ran that through the following month on two local radio stations that match its target demographic. The result: everyone thinks the agency made the entire ad buy, even though it spent only about $2,500. To preview and download these customizable ads, visit the Advertising tab at www.TrustedChoice.com/ agents.
Public Relations Trusted Choice® members are benefiting from a national public relations program that drives consumers to www.TrustedChoice.com, where they can find a local agent or broker. The PR campaign is focused largely on major consumer and business media. Trusted Choice® agents can use those same PR messages on the local level. And it doesn’t cost them anything. For example, agents are building a complete calendar of media releases that are timed to seasonal events (e.g. holiday safety or flood season). The releases can be downloaded from www. TrustedChoice.com/agents and used locally with your agency’s letterhead. A list of PR ideas is available in Zoom in on Branding and under the Public Relations tab at www.TrustedChoice.com/agents.
WISCONSIN INDEPENDENT AGENT
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S EV E N R E AS O N S
W H Y AG E N TS S H O U L D CO - B RA N D
As an agency owner,
you’ve already made an excellent business decision by joining the Independent Insurance Agents & Brokers of America (the Big “I”). With the combined strength of thousands of independent-minded businesses such as yours, the Big “I” and its state affiliates enhance the value of members and work to protect customers at the state and national level. Now it’s time to make another great decision: co-brand with Trusted Choice®, the consumer-marketing brand developed specifically for Big “I” members. Here are seven reasons why you’ll benefit:
1. National Brand While you and your staff must develop or refine much of your firm’s brand strategy, you don’t have to embark on this journey alone. Trusted Choice® can augment your efforts if used properly. In fact, you already may have a strong local brand. Now you can add to that by leveraging a great national brand that can evoke immediate and strong feelings in consumers, enabling you to: ! Offer new products and services. ! Charge more, or at least have the customer think first of “value” vs. “price”. ! Survive a crisis (e.g. hard market). ! Attract and retain good employees and carriers. ! Sustain and grow market share.
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2. ‘Ingredient’ Branding Is Proven Strategy Trusted Choice is a comprehensive ingredient-brand program that you can integrate into your agency on several levels — and drive customers to your door. ®
What is an “ingredient-brand”? Consider a new Dell computer. On the box, and on the computer itself, are stickers that say “Intel Inside.” In consumers’ minds, that translates to a faster, more powerful device. As a brand, Intel doesn’t supersede the computer, just as Trusted Choice® won’t supersede an agency and its local brand identity — but it adds value, which is why it’s called a branding “ingredient.” To be effective, ingredient brands should be understood by consumers — which is why Intel advertises and why Trusted Choice® conducts national advertising and public relations campaigns. Our TV ads alone are reaching 120 million consumers a year. Agents and carriers are tying in to the program, extending its value.
3. Website Locator Agents and brokers can leverage the Trusted Choice® Website, which links consumers with local Trusted Choice® agencies. Once agents populate the Website with information such as location and underwriting appetite, they put themselves in position to win new business. For example, an average of 17% of Americans moves every year. If you’re a State Farm policyholder, and you move, you don’t have to worry about leaving the company. But if an independent agent insures you, and you move, you may not find another independent agent at your new home. With www.TrustedChoice.com, you easily can find another Trusted Choice® firm at your new location.
WISCONSIN INDEPENDENT AGENT
® E C I O H C D E T S WITH TRU
4. Research Based
6. Pledge Power
7. Great Value
The strategy of Trusted Choice® is rooted in exhaustive research of personal and small-commercial lines customers. The things they value most are 24/7 customer service (e.g., emergency claim numbers), professional service standards, customization, choice of companies and advocacy — the very things offered by independent agents and brokers. The problem is that customers don’t know independent agents and brokers offer those things.
Trusted Choice® is about much more than a logo, however. The heart of any brand — good or bad — is the customer’s experience with the product or service. If buyers have a poor customer experience, that memory will eclipse even the slickest ad campaign. On the flip side, a repeatedly positive experience will make those customers your fans for life, irrespective of your advertising (or lack thereof).
Trusted Choice® is an excellent value. Trusted Choice® members receive:
Thus, the Trusted Choice® branding program provides a road map for agents to offer a consistently positive customer experience. We call it the Pledge of Performance. The Pledge — which is being used by Trusted Choice® members in their local marketing — responds to consumer demands for professionalism, choice, customization, 24/7 service, and advocacy.
! Consumer-tested brand name, logo and tagline.
So the beauty of Trusted Choice is that we’re packaging up and giving back to consumers exactly what they say they want. And we’re giving it back to the right prospects and customers: Our target audience is exactly the customer who would prefer to buy from an independent agent — including those now insured by captive agency carriers. ®
Trusted Choice ®
! National advertising program, with the ability to co-brand. ! National public relations program that member agents can leverage. ! Local marketing support in the form of tag-able TV, radio, print and billboard ads.
! Qualified leads with the new Trusted Choice® Agency Locator. Right now, all IIABA member agencies will be on board — and Trusted Choice® will become the preferred brand for insurance buyers. Also, 60 leading insurance companies are supporting in the brand program. For more branding information, visit www. TrustedChoice.com/agents.
5. Consumer-Tested Logo The Big “I” logo, while revered by members of the association, does not resonate with consumers. This is a difficult pill to swallow, but to reach out to consumers we simply must. Customers don’t recognize the Big “I” logo, associate it with the wrong things (e.g., USAA), or perceive it narrowly. And they aren’t influenced by the Big “I” logo to work with an independent agent. The Trusted Choice® logo, on the other hand, resonates well with consumers. It’s the result of extensive research and testing. Note: The Big “I” logo will continue to be used within the insurance industry and on Capitol Hill and in state capitals, where it is recognized and valued. The Trusted Choice® logo will be used exclusively as a consumermarketing brand mark for participating Big “I” member agencies.
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WISCONSIN INDEPENDENT AGENT
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Benefits of Living the Trusted Choice® Brand. Trusted Choice® is the national marketing brand created exclusively for Big “I” members to help consumers understand the value that an independent insurance agent offers. This is not a market access program, but a consumer brand that is designed to highlight the strength of independent insurance agents: Choice, Customization and Advocacy.
Resonate
with consumers by using the consumer-tested logo.
Pledge
commitment to consumers by sharing the Trusted Choice® Pledge of Performance.
Boost
exposure in your community by running customizable print, web, radio, television and billboard ads
Deliver
informative customized mailers touting the value of using a Trusted Choice® independent insurance agent.
Garner
local media coverage by using national consumer research provided in customizable drop-in press releases that position your agency as a reliable, trustworthy source for insurance news.
Access
newsworthy, professionally written stories on timely consumer topics.
Use
Trusted Choice® evergreen how-to guides and archives as content for newsletters, websites and mailings.
Feed
websites with valuable consumer content via an optional RSS feed.
Save
on modern, consumer-friendly website design through Trusted Choice®’s relationships with web developers.
Get
up to $500 in marketing reimbursement dollars for stationery, websites and logowear.
T R U ST E D C H O I C E ® : A B RA N D I N G ST RAT EGY The IIA of Wisconsin is now a proud supporter of Trusted Choice ®, the innovative consumer branding program created by the Independent Insurance Agents & Brokers of America, and we strongly encourage all our member agencies to participate in embracing the brand. Marketing wiz Michael Dell’s last name is placed on everything connected with the company: office signs, ads, Website, bills, computer boxes — and, of course, the computers themselves. But you’ll also see something else connected with the Dell brand: “Intel Inside.” As an “ingredient brand,” Intel Inside provides value to the “host brand” — in this case, Dell. To be successful as a recognizable consumer brand, Intel relies on national advertising (maybe you’ve seen the Blue Man Group spots), computer makers, distributors and retailers to use Intel Inside wherever they can. A similar strategy is being employed to build the Trusted Choice® consumer brand. Trusted Choice® is an ingredient adding value to your agency. It doesn’t replace your agency’s brand — it enhances your agency’s brand because it delivers to consumers and businesses exactly what they say they want from an insurance provider. Still, we continue to see confusion among agents and brokers over what Trusted Choice® offers. This isn’t a market-access program or an online MGA. It’s not simply a logo. It’s not just a national advertising or public relations program. Nor is it an association name. Instead, Trusted Choice is a long-term branding strategy to position participating agents and brokers as the preferred consumer choice for insurance and financial services. Whereas Intel Inside reminds us of smarter, better and faster computers, Trusted Choice® represents advocacy, customization and choice. Like Intel Inside, the key to the Trusted Choice® strategy is participation: we depend on an integrated team of participating agents, brokers, local boards, state affiliates and carriers to consistently remind consumers of its value.
to Maximize Your Marketing Power
We urge member agents and brokers to get involved: ! Fully integrate Trusted Choice® into your firm’s culture, operations, workflow and marketing.
To learn more about the benefits of being a Trusted Choice® agency, visit www.TrustedChoice.com/agents.
MAY 2012
Trusted Choice ®
! Use the Pledge of Performance to educate consumers and prospects about what you deliver to them — it will help you close sales. ! Be visible in the community with the Trusted Choice® logo—on your advertising, signage, business cards and letterhead. ! Leverage the logo and Pledge of Performance on your Website. ! Use the tagable ads for your local print, radio and TV campaigns (information available at www. TrustedChoice.com/agents). ! Run local print, TV or radio ads that are timed with nationwide Trusted Choice® advertising flights. Check www.TrustedChoice.com/agents for dates of upcoming ad flights. ! Make sure your information is updated at the Agency Locator on www.TrustedChoice.com because all leads from national advertising and public relations campaigns are driving consumers there. Be smart like Michael Dell. Burnish your agency’s brand by actively participating in Trusted Choice®, your ingredient brand. For more information on branding and Trusted Choice®, visit www.trustedchoice.com/ agents.
It doesn’t replace your agency’s brand — it enhances your agency’s brand because it delivers to consumers and businesses exactly what they say they want from an insurance provider.
WISCONSIN INDEPENDENT AGENT
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COMMENTARY FROM COUNSEL
If you cannot place all of your clients’ personal insurance needs, they will find someone who can.
PHANTOM DAMAGES IN WISCONSIN: GETTING WHAT YOU PAID FOR, OR MORE? At a recent IIAW seminar, I spoke about the Wisconsin’s 2011 tort reform. The American Tort Reform Association (ATRA) gave Wisconsin’s Supreme Court a “dishonorable mention” in its 2005 Judicial Hellholes publication, based on a series of decisions perceived as being extremely pro-plaintiff. In March 2011, Wisconsin’s highest court once again got ATRA’s attention with its decision in Orlowski v. State Farm, related to the collateral source rule and so-called “phantom damages” in personal injury cases; that is, damages awarded for medical expenses that were not actually paid. The Orlowski opinion is mildly remarkable in that it overrules a 2002 court of appeals decision which categorically exempted UIM claims from the collateral source rule, but the media attention it received was a reminder that the damages that an injured party is entitled to pursue and recover in a tort case in Wisconsin — in particular, “phantom damages” — would be worth some column space. So what is the collateral source rule? Simply put, it means that a plaintiff’s recovery of damages will not be reduced based on his own insurance, or other benefits or payments from sources unrelated to the at-fault party (collateral sources of payments). This means that a plaintiff who sustains injuries and whose medical care is covered by an insurance policy, self-funded health plan or government benefits may still pursue the costs of the medical care as part of his damages (subject, of course, to the subrogation rights of the collateral source). The measure of these damages in Wisconsin is the “reasonable value” of the medical treatment, so long as it was reasonably required to treat the injury. What, then, are “phantom damages?” They are the difference between the reasonable value of the services and the amount actually paid for the services. The difference, of course, is the result of negotiated discounts for medical care as part of establishing networks for providing services. The full price, or “sticker price,” is presented as the reasonable value of the treatment, even though almost nobody pays that price. Why are plaintiffs allowed to recover “phantom damages?” There are public policy reasons supporting such a recovery, the most compelling three of which are discussed in the Orlowski decision. First, to deter tortfeasors by placing the full cost of their misconduct upon them; second, to fully compensate the injured plaintiff; and, third, to ensure the insured plaintiff receives the benefit of the premiums
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paid for their own insurance. These are all laudable policies, although one can find weaknesses in each. The Orlowski decision applies the collateral source rule in the underinsured motorist (UIM) context. The underlying facts of the case are routine: the plaintiff was injured in an accident with an at-fault, underinsured driver and the plaintiff had UIM coverage. The at-fault driver’s insurance covered only a portion of the plaintiff’s medical expenses, and she submitted her UIM claim and went to arbitration over the amount to be paid. The arbitration resulted in a damages award only of costs of medical expenses actually paid to providers, which were deeply discounted based on provider contracts with the plaintiff’s health insurer. The arbitration
Phantom damages are the difference between the reasonable value of the services and the amount actually paid for the services. award was based primarily on the 2002 court of appeals decision which declared the collateral source rule inapplicable to UIM claims based on a distinction (with which the Orlowski court disagreed) between the public policy considerations in a negligence claim and those in a UIM claim. The plaintiff sought modification of the arbitration award in circuit court, where she was successful in obtaining a ruling that she was entitled to the full value of medical services provided. On appeal, the court of appeals certified the case to the Supreme Court, which unanimously (really) ruled in her favor as well, citing the three public policy factors identified above and concluding they are no less compelling in the UIM context than in the direct claim against a negligent tortfeasor. With the collateral source rule exception for UIM claims scrapped, Orlowski reiterates that recoverable “phantom damages” remain the
WISCONSIN INDEPENDENT AGENT
rule in Wisconsin. To be fair, Wisconsin is not alone — at least ten other states permit similar recoveries. Who benefits from such a rule? Plaintiffs, of course, when they can recover damages for medical expenses that exceed the subrogation recovery of the insurer or other collateral source. Who else? Plaintiff’s lawyers — they typically receive their contingent fee on the full amount of the recovery, so “phantom damages” result in real fees. This can have a dramatic effect on a verdict where, as is common, medical expenses (at sticker price) are presented to the jury and the plaintiff’s lawyer suggests to the jurors that awarding some multiple of medical expenses is a way to choose a dollar value for pain and suffering. Using the plaintiff’s damages in Orlowski as an example (it was an arbitration, so this did not occur), the actual medical expenses paid were about $11,500, but the sticker price was about $73,000. If it had been a jury trial, the jury would have been shown the $73,000 in medical expenses and, perhaps, been asked to double or triple that amount for her pain and suffering, leading to a verdict in the range of $225,000 to $300,000 — twenty to thirty times the amount of medical expenses actually paid. If you don’t like “phantom damages”, you are not alone. Legislative efforts are underway in a number of states, including fledgling efforts in Wisconsin, to curb or eliminate the practice. One compromise position, which is in use in a few states already, is to allow the actual amount paid and the sticker price to be shown to the jury, and then allowing the jury to decide what the reasonable value of the services was. With the 2011-2012 legislative session ended and recalls underway, it will be some time before Wisconsin sees any new activity on this front, but the IIAW will keep you posted with > Josh Johanningmeier is the IIAW’s General new developments Counsel. Call the Legal and decisions on Services Hotline at (877) “phantom damages.” 236-1669.
MAY 2012
When it comes to personal insurance, every part matters. Because when one piece goes missing, the entire account could come undone. At Burns & Wilcox, we can insure individual portions of their coverage or the whole account. So you do not have to turn away any business. We have the expertise, resources and experience that can only come from being the largest independent wholesale broker and underwriting manager. Need help with personal insurance? No one has you covered like Burns & Wilcox. Milwaukee, Wisconsin | 262.347.0266 toll free 800.544.5700 | fax 262.347.0440 milwaukee.burnsandwilcox.com s #OMMERCIAL s 0ERSONAL s 0ROFESSIONAL s "ROKERAGE s "INDING s 2ISK -ANAGEMENT 3ERVICES
MEMBER PROFILE
The Starr Group:
Knowledge Drives This Independent Agency By Eric Schwartz
Robert Starr founded The Starr Group in 1956 with his own moxie. He didn’t have extensive insurance industry experience but he did possess plenty of street smarts and ambition. “My Dad was logical,” said Tim Starr, Robert’s son and the 2nd generation to lead the agency. His son, Nick, started in June 2011 and represents the third generation. “He learned on his own, by trial and error. He determined that he didn’t have to be a doctor or lawyer, or go through eight years of college, to make the kind of money he wanted.” Tim learned that independent thinking, education, hard work, and preparation were the keys to success. While Tim earned a degree in risk management from UWMadison, his practical insurance education was not found in a textbook or in a classroom. “When I started working here in November 1981, my Dad said ‘I can’t train you’,” said Tim, who worked for a direct writer for six months before joining the agency. “It was just my Dad and Mom (Fran) at the agency. He took a leap of faith with me and I just started working the phones. I listened and observed what he did.” From the start, his Dad taught him the importance of price.
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It doesn’t cost much but it’s so valuable. The pursuit of knowledge is really driven here.” Every sales and service associate must have an insurance license, and commercial property and casualty agents are required to obtain their Certified Insurance Counselor (CIC) and Certified Risk Manager (CRM) designations within five years of joining the agency. This formula has made The Starr Group one of Milwaukee’s larger independent agencies — with a customer retention rate of 92 percent — and a recipient of many honors for its business practices.
Mary and Tim Starr, principals of the Greenfield-based insurance and management agency, The Starr Group. Robert Starr, Tim’s Dad, founded the agency in 1956 and he completed the agency’s headquarters (pictured here) in 1981. The building’s design is based on the Philadelphia home of Benedict Arnold.
“Most customers don’t make insurance decisions based solely on money,” said Tim. “My Dad was a master of personal lines. For 90 percent of his clients, coverage was the number one reason for buying, not price. That necessitates educating the customer. The majority of salespeople don’t get that people don’t buy on price alone. My Dad got that early on. Most people don’t get that today.” Of course, in order to educate a customer, an agent has to be educated, too. “I reviewed contracts from direct writers so I knew them better than their agents,” said Tim, whose experience as a direct writer helped him appreciate the advantages of having options as an independent. “Understanding these contracts was embedded in my belief system early on.
WISCONSIN INDEPENDENT AGENT
In 2012 alone, the independent agency earned the Torch Award from the Better Business Bureau for business ethics and integrity and the Business of the Year award from the South Suburban Chamber of Commerce. In addition, the agency received the Fittest Company of the Year designation from the Biz Times of Milwaukee for its commitment to employee wellness in the workplace. (Ed. Note: See Starr Honors sidebar for more.) The Starr Group also partners with the National Association of the Remodeling Industry (NARI) to help build the NARI Foundation. The association’s largest
MAY 2012
Darlene Mattmiller, a customer of The Starr Group, started decorating the two stone lions (Lionel and Lionardo, respectively) that sit in front of the agency a few years ago. She dresses them for holidays and special events like when the Brewers make the playoffs. “The costumes are incredible,” said Tim Starr. “Parents bring their kids to look at them, TV stations have aired stories about them, and people write us letters about how cool they are. It’s a lot of fun and great PR.” concentration of members in the country is in Milwaukee, with 900 businesses in the organization. The Starr Group insures about 120 of these businesses. One percent of the agency’s premium goes to the NARI Foundation; the funds provide scholarships and tools for area schools. “We just crossed the $50,000 threshold,” said Tim. “It will be our third year of participation this June.” After 56 years in business, the Starr Group is hitting on all cylinders. This is not an easy thing to accomplish and Tim Starr knows that it will take focus to stay sharp. “We offer three products — commercial and personal insurance and group benefits,” said Tim. “All of these are very difficult to sell and we could spend all day on any one of these. What we’re going to try to do is be really good at these three things everyday.” The Starr Group is located at 5005 W. Loomis Rd. in Greenfield, Wisconsin. The independent insurance agency, with its staff of 30 professionals, offers commercial insurance, personal insurance and employee benefits products to customers in southeastern Wisconsin. The Starr Group also has a personal lines office in La Crosse. Find them on the Web at www.starrgroup.com, or call 414.421.3800.
STARR HONORS The Starr Group has earned an impressive list of awards and honors: !"2012 A+ Rated Accredited Business by
Wisconsin Better Business Bureau !"2011 Bravo! Entrepreneur Award winner from the Milwaukee Biz
Times. The award recognizes business leaders that take risks, have drive, and nurture a culture of innovation.
STARR STANDARDS I-PREACH illustrates the core values of The Starr Group and is the backbone of the business. “This is the value system we abide by,” said Mary Starr, chief financial officer and creator of I-PREACH. INTEGRITY - That which we profess in public is the same as what we do in private. Integrity is a constant reference point to keep us intact and uncorrupted. PASSION - We foster an environment that brings limitless energy and meaning to work along with an opportunity to achieve confidence and full potential. RESPECT - Respect is showing consideration and appreciation. It means being reliable and honoring our promises and commitments. EXCELLENCE - We foster an environment that is driven to excel. We will never accept the status quo — we will constantly challenge the norm to find new and better ways to do things. ACKNOWLEDGEMENT - We will show appreciation and gratitude for our colleagues, our customers and our own accomplishments, celebrating excellence as it is achieved. COMMUNICATION - To actively listen and respond to information we receive and use it to improve our relationships, services and solutions. HONESTY - To be transparent in our thoughts, words and actions. To speak the truth, refusing to deceive, showing sincerity in all we do.
!"2011 Well Workplace Award winner from WELCOA, the Wellness
Council of America. The Starr Group is a national leader regarding corporate health and has demonstrated a proven commitment to improving the health of its employees. The agency’s wellness program is six years old. !"2010 Platinum level Fit-Friendly Company and Innovation Award
& 2011 from the American Heart Association. The innovation award is given to companies that go above and beyond for their employees’ wellness. The agency contributes about $300 per employee per year toward the company’s wellness program.
MAY 2012
!"Since An Independent Insurance Agents & Brokers of America (IIABA) Best
2004 Practices agency. There are only four national Best Practice agencies in the state. The agency has been a state Best Practices agency since 2001. !"Since MarshBerry APPEX (Agency Peak Performance Exchange) member. The
2000 Starr Group was one of the first agencies in the country to attain a Ph.D. in agency management. There are only 108 APPEX members in the United States. The Starr Group uses the group’s findings to measure itself against the best agencies in the country.
WISCONSIN INDEPENDENT AGENT
13
SEVEN KEYS TO A POWERFUL © 2011 SECURA Insurance
SALES PRESENTATION
Assuming you have a qualified and interested prospect, a powerful and expertly executed sales presentation can help you close the sale. This article will discuss the seven key components of a powerful sales presentation.
1) Make your presentation interesting and to the point. Your presentation needs to catch and keep the prospect’s attention and interest. Make it interactive. Ask the prospect questions and involve her in ways that make her an active member in the proposed solution. Use interesting examples and stories that mirror her situation and spell out how others have benefited from using you and your company in similar situations.
2) Deliver your presentation with energy, enthusiasm and emotional logic. You need to show energy, enthusiasm and excitement for your product. At the same time, you don’t want to overwhelm the prospect with too much energy and excitement. If your prospect is a high-energy individual, match their energy level. If your prospect is more subdued, show energy and excitement that is one level above theirs. In addition to showing energy and enthusiasm, you need to back your presentation up with logic. Remember: people buy on emotion and justify their decision on logic. The bottom line is to put life, energy and enthusiasm in your voice, and make sure your sales presentation makes logical sense.
3) Address the specific needs, desires and concerns of the prospect.
Success is finding an advantage. 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
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Each presentation will be different because each prospect has different needs, desires and concerns. If you’ve done your work properly during previous calls, you understand what the prospect is looking for. You can now educate the prospect on how your product or service will help them. Show caring, understanding and empathy for the prospect, and a genuine interest in helping them out. Make sure you focus on the benefits and what’s of value for the prospect. Features are fine, but you must articulate what those features mean to the prospect with regard to what is important them.
MAY 2012
4) Deliver your presentation in a clear, concise and articulate manner. Your sales presentation should be easy to understand. Use simple, effective sentences to get your message across. Like Winston Churchill said, “The short words are the best.” There’s no need to dazzle the client with your prodigious vocabulary. In other words, don’t use words like “prodigious.” Use “big” or “great” instead. Also, don’t use acronyms or other words that the prospect may not be familiar with. Finally, keep your initial presentation to a maximum of three solid points. If you overwhelm the prospect with too many points, you will probably hear, “I want to think about it” or “send me some information.” If you have other legal items and disclosures that you have to cover, save those for the paperwork phase after the prospect has decided to buy.
5) Your presentation should lead naturally to the close. Your sales presentation should be designed in
Make sure you focus on the benefits and what’s of value for the prospect.
such a way that it walks the prospect smoothly through the presentation, addressing all needs and concerns, and flows right into the close. If your presentation is straightforward, conversational and covers all the bases, the close will simply be the natural conclusion of the presentation.
6) Have a presentation script. While each presentation will be different based upon the individual prospect’s needs and desires, most of the pieces remain the same. You’ll simply use different ones and arrange them differently. Each feature and benefit, story and piece of information you need to convey must be well thought out, well prepared, written down, committed to memory, and most important, proven to work. Some people believe that having a written presentation is too unnatural — you may sound as though you are reading (if on the phone) or canned (if in person). The way to avoid this is by practicing, drilling and rehearsing your presentation pieces to the point where you know them cold. The goal of a script is to make sure you cover everything you need to cover in as few words as possible while at the same time using the most effective words possible. Writing out each piece of your presentation and committing them to memory will ensure consistency throughout your presentation, and will help identify any problems with your presentation. Note: Don’t reinvent the wheel. Get a winning presentation script from a top salesperson. You want their results, so use what they use.
7) Continuously update and improve your presentation. The pieces of your presentation can always be better and you can always be more effective, so keep working on your presentation and improving it. You can always use more effective words, examples, and get better at delivery.
WISCONSIN INDEPENDENT AGENT
> 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.
15
IIAW CAPITOL REPORT
L EG I S L AT U R E A DJ O U R N S P O L I T I C A L LY After nearly fifteen months of political upheaval and unprecedented partisanship, the state Legislature has completed its regular two-year session. Unless lawmakers meet in special or extraordinary session, the Legislature will not reconvene until January 2013. Despite the political volatility surrounding the recently concluded session, the IIA of Wisconsin won a number of legislative victories important to independent insurance agents across Wisconsin.
While the IIAW’s crowning achievement was passage of the Consumer Choice in Auto Insurance Act, the Big "I" Government Affairs team played a crucial role in the passage of several other legislative initiatives to enhance the state's business climate. The following is an overview of the IIAW's legislative highlights from the 2011-12 session:
E X P LOS I V E S E SS I O N Insurance Policy Restriction Mandate This legislation would have prohibited insurers from considering credit history when issuing or renewing car or property insurance. It also would have forbid insurers from using this information when setting insurance premiums. In addition, the proposal would have prohibited insurers from considering an individual's zip code when issuing or renewing – or setting premiums for – car insurance.
Consumer Choice in Auto Insurance
Enhanced Graduated Drivers Licensing
IIAW POSITION:
The IIAW’s top legislative priority, the Consumer Choice in Auto Insurance Act,
This legislation strengthens Wisconsin’s graduated drivers licensing law by
was signed into law early last year to repeal onerous auto insurance coverage
prohibiting young drivers operating under an instruction permit or a probationary
STATUS:
requirements and restore fairness in Wisconsin’s auto insurance market. The law
license from using a cell phone (unless they are reporting an emergency). The
reduces the minimum limits for mandatory liability coverage, uninsured and
IIAW worked closely with a broad coalition of law enforcement agencies, health
underinsured coverage and medical payments coverage. It also made several other
care organizations and other insurance groups to advance the legislation.
Medical Loss Ratio Mandate
$ SUPPORT IIAW POSITION: #
This legislation would have required Wisconsin health insurers to spend at least
positive changes to state law, including allowing policies to include anti-stacking clauses.
IIAW POSITION: STATUS:
$ # $ #
STATUS:
SUPPORT
$ #
federal health care reform law, which requires health insurers to spend at least 80
PASSED INTO LAW
percent of customer premiums on medical care. Although the federal government
Metallic Mining Regulation
denied the OCI waiver, the future of the health care reform law itself is uncertain and is currently tied up in the U.S. Supreme Court.
Surplus Lines Insurance
negatively impact National Flood Insurance Program eligibility. The IIAW’s legal
IIAW POSITION:
This legislation, known as the OCI technical bill, or Surplus Lines legislation,
counsel and Government Affairs team reviewed the bill and did not believe the
STATUS:
includes portions of the federal 2010 Non-admitted and Reinsurance Reform
provisions put flood insurance at risk. However, due to ongoing concerns, the Big
Act (NRRA) in Wisconsin state law. The bill requires the state to adopt uniform
“I” helped craft a technical amendment to alleviate these concerns.
procedures for the reporting, payment and collection of surplus lines premium
% # % #
granting attorney fees to the prevailing party, including the amount involved in the dispute; the time and effort put into the case by the attorney; the outcome of
OPPOSED
the lawsuit; fees awarded in similar cases; and the complexity of the case. In short,
DEFEATED - DID NOT PASS
Wisconsin only if Wisconsin is the home state of the insured.
STATUS:
& % #
'
IIAW POSITION
litigation climate.
NEUTRAL
Insurance Readability Mandate
DID NOT PASS
This legislation would have required health insurance policies to be easier to significantly increased costs for the health insurance industry and interfered with consumer-friendly policies already provided by most companies in Wisconsin.
Property Insurance Coverage Mandate This legislation would have prohibited an insurer from canceling, refusing
IIAW POSITION:
to renew or reducing coverage under a property insurance policy due to the
STATUS:
Health Care Tax Exemption
policyholder’s claim history for unpreventable damages caused by forces of nature.
This legislation aligns Wisconsin’s tax code with federal law to create a tax
IIAW POSITION:
exemption for income related to health care coverage for adult dependent
STATUS:
children. Under state and federal law, dependent children up to age 26 can be
% # % #
STATUS:
% # % #
previous law, court awards not paid immediately accrued interest at 12 percent a
DEFEATED - DID NOT PASS
year, which was one of the highest interest rates in the country. The bill reduces interest on unpaid judgments to 1 percent above the Federal Reserve Board's prime rate, or roughly 4.25 percent in today’s market. The bill brings Wisconsin
OPPOSED
in line with neighboring states and helps reduce uncertainty for employers doing
Limiting Attorney Fees
DEFEATED - DID NOT PASS
business in Wisconsin.
This legislation caps attorney fees awarded in civil suits at three times the amount
IIAW POSITION:
state in the nation to consider adult dependent health benefits as taxable income.
when warranted. The bill also implements guidelines for courts to follow when
STATUS:
The bill eliminates a "hidden" tax on Wisconsin families and spares Wisconsin
Car Insurance Coverage Mandate
businesses from the administrative nightmare of determining the tax value of
This legislation would have imposed new regulations on the insurance industry,
health care benefits.
including restrictions on insurers who issue car insurance coverage. Under the
STATUS:
SUPPORT PASSED INTO LAW
bill, insurers would have been required to inform insured individuals they have
LEGISLATIVE ADVOCACY: IIAW DAY ON THE HILL
the option to select any mechanic or body shop for vehicle repairs. The legislation
Given the intense and constant regulatory pressures on the industry, it’s critical for independent agents to have a strong presence in the State Capitol, at the Office of the Commissioner of Insurance and throughout Wisconsin government. In March, the Big “I” held its 2012 IIAW Day on the Hill. This was our Association’s first legislative day at the State Capitol in several years and it was a great success. Over 80 agents from across the state attended and had an opportunity to meet with their legislators and discuss issues important to independent insurance agents.
also would have required insurers to pay for covered vehicle repairs at the same rate the general public would pay, unless the insurer and repair shop have an agreement. Lastly, the bill would have prohibited insurance adjusters from preparing vehicle damage estimates without physically inspecting the vehicle.
IIAW POSITION: STATUS:
16
% # % #
OPPOSED DEFEATED - DID NOT PASS
WISCONSIN INDEPENDENT AGENT
PASSED INTO LAW
This legislation reduces the interest rate charged on unpaid civil judgments. Under
OPPOSED
of damages, although it provides judges the flexibility to award higher amounts
$ # $ #
SUPPORT
Civil Judgment Reform
covered by their parent's health insurance. Wisconsin was previously the only
IIAW POSITION:
$ # $ #
read for policyholders. The unnecessary and heavy-handed proposal would have
SUPPORT PASSED INTO LAW
the legislation provides more certainty for businesses and helps improve the state's
IIAW POSITION:
taxes. For example, under the legislation, surplus lines taxes are payable to
STATUS:
DEFEATED - DID NOT PASS
requested a federal waiver from the medical loss ratio (MRL) requirement in the
IIAW worked closely with key legislative leaders to ease concerns the bill could
$ # $ #
OPPOSED
80 percent to 85 percent of a consumers’ premium on medical care. Last fall, OCI
PASSED INTO LAW
Although metallic mining reform legislation did not pass this session, the
IIAW POSITION:
% # % #
MAY 2012
MAY 2012
$ # $ #
SUPPORT PASSED INTO LAW
The IIAW has a highly effective and comprehensive Government Affairs program, but our true strength comes from your personal relationships with individual legislators. Your voice has a very powerful impact on the decisions made in Madison. If you were unable to attend this year, please attend next year! For additional information on the IIAW’s Government Affairs Program or the Association’s lobbying activity during the recently concluded legislative session, please do not hesitate to contact the Big “I” office at (608) 256-4429.
WISCONSIN INDEPENDENT AGENT
17
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MAY 2012
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experts.
Trust the
On April 19, over 30 insurance carriers attended the CAP Carrier Day presentation at the Marriott West in Madison. Consumer Agent Portal, LLC (CAP) delivers digital marketing tools and services for independent agencies, brokers and carriers in personal lines insurance. Started in
December 2011, CAP is intended to help independent agencies, brokers and carriers build their online brands and visibility in order to attract and interact with today’s digital consumer. Scott Deetz (pictured here), CEO of CAP, leads the discussion.
Let SFM quote your workers’ compensation business. Call (800) 937-1181 or visit www.sfmic.com
SFM–The Work Comp Experts Claims, legal and medical expertise. Optimal results in preventing injuries and controlling costs. Highest levels of customer satisfaction and retention. A leading regional insurer, specializing in workers’ compensation. MAY 2012
WISCONSIN INDEPENDENT AGENT
21
GOVERNMENT AFFAIRS
TOTAL RECALL: WISCONSIN FACES HISTORIC ELECTIONS Hollywood loves sequels, and it appears the same can be said for Wisconsin – at least when it comes to recall elections. Last summer, Wisconsin witnessed an unprecedented recall effort against nine state senators. As a result, two incumbent Republican senators were tossed out of office, altering the balance of power in the Senate. A second round of recalls is now on the horizon and political control of the state hangs in the balance. Not only are four additional Republican senators facing recalls, but so are Gov. Scott Walker and Lt. Gov. Rebecca Kleefisch.
Walker Recall
/ i ÀÊLÕÃ iÃÃiÃÊ>ÀiÊ>ÃÊÊ ` vviÀi ÌÊ>ÃÊÌ iÊÌ ÃÊÌ iÞÊÕÃi° Insure them accordingly with AmTrust. Think AmTrust for all your small business insurance needs. We offer workers’ compensation and commercial package products in a variety of classifications, including specialty niche segments such as: Fine Dining | Lumber Specialty | Auto Service Plus | Businessowners Policies
For more information about how you can write business with AmTrust, please call 877.528.7878 or visit www.amtrustnorthamerica.com. * Not all products available in all states
22
WISCONSIN INDEPENDENT AGENT
Your Success is Our Policy.SM MAY 2012
Recall efforts against Walker were sparked by his move last year to limit collective bargaining for public workers. In November, recall organizers began circulating petitions and quickly collected enough signatures (nearly one million) to force recalls against Walker and Kleefisch. On March 30, state election officials certified the signatures and ordered the recall elections. State law requires recall elections to be held six weeks after signatures are certified. However, since a Democratic primary was required in both the governor and lt. governor’s race, the primary elections were held at the six week mark. The general election will take place four weeks later on June 5. This article was written prior to the Democratic primary, but readers will know the results of that contest before this edition of the Wisconsin Independent Agent hits their mailboxes. However, at the time of publication, the two Democratic frontrunners were Milwaukee Mayor Tom
MAY 2012
Barrett and former Dane County Executive Kathleen Falk. According to pre-primary polling data of likely Democratic voters, Barrett was the favorite to challenge Walker. If Barrett is the Democratic candidate, the recall will be a rematch of the 2010 gubernatorial election. In that contest, Walker defeated Barrett by nearly 125,000 votes (52% to 47%). Mahlon Mitchell, a Madison firefighter and current president of the Professional Fire Fighters of Wisconsin, will challenge Lt. Governor Kleefisch for her position. Mitchell has been a key figure in the union movement opposing Walker’s collective bargaining changes.
State Senate Recalls In 2010, Republicans captured control of the Senate with a commanding 19-14 majority. Following last summer’s recalls and the recent surprise retirement of Sen. Pam Galloway, the Senate is now equally split 16-16 between Democrats and Republicans.
Among the GOP senators facing recall is Senate Republican Leader Scott Fitzgerald of Juneau. The other two incumbents staring at a potential recall are Sens. Terry Moulton (R-Chippewa Falls) and Van Wanggaard (R-Racine). Fitzgerald will be challenged by newcomer Lori Compass, who organized the recall efforts against him. Wanggaard will face former Sen. John Lehman in a rematch of the 2010 general election and Moulton will be opposed by former state Rep. Kristen Dexter. Pam Galloway of Wausau was also facing a recall election, but has since quit the Senate. However, the election in her district will still go forward with GOP state Rep. Jerry Petrowski squaring off against his Assembly colleague, Democratic Rep. Donna Seidel. Regardless of the ultimate outcome, Recall Part 2 will have a lasting impact on Wisconsin’s political landscape, from the governor’s office to the statehouse. But the IIAW Government Affairs Team will be ready to respond to any political changes that lie ahead.
The second wave of Senate recall elections will decide which party controls the Senate. The Senate contests are scheduled for June 5 to align with the Walker/Kleefisch recall.
Regardless of the outcome, the recall elections will have a lasting impact on Wisconsin’s political landscape.
WISCONSIN INDEPENDENT AGENT
> 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.
23
NEWS FROM ACT
NEWS FROM ACT
A MILLENNIAL LOOKS AT SOCIAL MEDIA, MARKETING & CUSTOMER SERVICE
Personal Relationships Are Still Important I look at personal relationships in the same way I look at Websites. If I have a positive relationship with a store or service, it is likely that I will go back. If the experience is negative, I won’t return. There are a few things that I will never buy online and one of them is a cell phone. I got my first cell phone from a sales representative named Stan and I have returned to Stan every time I needed a new phone or accessory.
“Marketing to Millennials� by Michael Fleischner is an interesting article that discusses the way my generation looks at media and commercials. In this article, I will examine some of the points in Fleischner’s article and briefly talk about them. (Editor’s note: Millenials, also known as Generation Y, are a demographic group that were born between 1980 and 1999.)
Have a Social Media Presence and Make it Genuine I think one of the better points the author makes is to "make sure your company has a space among social media outlets. Keep in mind though not to be overly commercial. Millennials can see right through it. Rather, be genuine and let your prospective market understand what you're really about and what you stand for." I think that the author makes a good point to be sure your target really understands what you are marketing. Don’t make a company look friendly and personal when chances are a customer will have to wade through many automated messages or new employees each time they try to contact the company. This just makes people angry. This is common sense, but I do think it has become more relevant in the age of the Internet. Finding a company on the Internet is a lot more of a guessing game than getting personal recommendations or knowing the right people. If you are trying to attract people through this medium, it is much easier to do so when the message and the reality are matching.
market. The way they do this is by posting relevant content and doing it on a consistent, reasonable basis. One company usually posts a fact, story or comment relevant to their product and ends the post in a question. This gets a lot of feedback and is likely to show up on more people’s home screens. My generation feeds on being "heard" so we give more attention to the social media sites that try to engage us. Posing a question at the end of a post is effective because readers feel like they have a say about the topics covered. A good way to use this technique is by making a point with your question or crafting one that will get a lot of response from both sides, both positive and negative feedback.
Be Consistent and Creative Two additional points made in the article are also good ones: be consistent and creative. These qualities help capture the attention of an otherwise preoccupied generation. We are always multitasking so consistency and repetition are good tools to use. Creativity will always help a Website when dealing with my generation. Also, I am always drawn to a Website that looks more professional and attractive. For a generation that has grown up dealing with the Internet, a functional and appealing Website shows that the business is viable.
Engage on a Personal Level Another point the author made was to "communicate on a personal level." This is an easy thing to do with blogs, Facebook, etc. I have become a "fan" or "liked" a few companies that I never see again. I have done the same to others, which now seem to haunt my Facebook. Moderation is the key. If you are on someone’s Facebook home screen too much with uninteresting comments, you are more likely to get hidden. However, I can think of two companies that I see often on my Facebook page and I am more likely to consider them when I am in the
24
I use the Internet for almost all of my shopping.
WISCONSIN INDEPENDENT AGENT
Info and Contacts Must Be Easy to Find One point missing from the article, which is very important to understand when dealing with my generation, is that we expect (for the most part) instant gratification. Everyone grew up with the Internet getting faster and faster, providing answers to everything at our fingertips. With the invention of online radio, DVR and its pausing features, the iPod, and the prevalence of smartphones, my generation grew up having everything we wanted whenever we wanted it. I think this is a very important and sometimes negative aspect of my generation. Since we are so technologically literate, we have access to hundreds of Websites selling the same thing. We have the knowledge to navigate our way through a Website, but I doubt most of us have the time/patience. We gravitate toward information, forms and products that we can find now. I think this is an important aspect to marketing, because you can draw all the attention you want to your Website, but if it is difficult to navigate or to find a way to contact > Lauren Foy is a sophomore someone, I at University of Rhode think many Island and can be reached prospective at lauren_foy@yahoo.com. customers will Lauren wrote this article drift to their for ACT and based it on an e-mail she wrote to second choice.
How I Use the Internet to Shop I use the Internet for almost all of my shopping. If I am at a shopping center and I need something, I will buy it there, but
her Dad, an independent agent, to assist him with the millennials’ perspective with regard to social media and marketing. The Agents Council for Technology (ACT) is part of the Independent Insurance Agents & Brokers of America, Inc. ACT’s Web site is www.independentagent. com/act. This article reflects the views of the author and should not be construed as an official statement by ACT.
MAY 2012
most other times, I use the Internet. I have always found it more convenient to go to a Website for what I might need rather than finding a store. Websites usually are easier to navigate, have more options and are faster than traveling to a store. Generally, I will start with a Website that I’ve used before and trust. If I have a longstanding relationship with a company, I usually just trust that they have the best price and not look any further. However, if it is a new Website or one I haven’t used much, I will look around the Internet for a better deal. If I can’t find one, I will go back to the first one. I think my generation would rather use the Internet to price shop rather than spending
a day traveling around doing the same thing. The Internet is faster. Many in my generation would rather do something on the Internet than pick up the phone and call. As a generation, we seem to be more comfortable with the Internet than with a phone call. For the most part, I have found the Internet to be a reliable buying outlet. A few bad encounters can teach an Internet buyer to look into the company before buying from them. It is easier for a company to lie about their product when it is being presented on a Webpage. This is where the relationship with a company comes into play. If I buy a product from an online retailer that is different than advertised, the bad relationship is cemented.
Customer service is where people establish relationships. If the goal is to attract Internet users to come into an office or pick up the phone to speak with a person, relationships play a huge role. Going back to the example of Stan, I have many opportunities and online resources to buy a cell phone or accessories on a Website. But due to the strong relationship with Stan, I am always drawn to return there rather than go to the Internet. These personal relationships give the customer a respect for the opinions and suggestions of the service representative that one cannot get from a Website or a call center. In a perfect situation, there would be a strong relationship with the personnel of the business, coupled with the support of a functional Website and/or mobile app. Providing that personal relationship with quality online tools is the best way to get my generation off the Internet and into the office.
Transportation insurance isn’t a puzzle to us – we’re experts on the road. We’ve been insuring truckers for years. We fit your need. Call us today.
A PIECE FOR THE ROAD. Log on to SPOT, our online rating tool at:
www.ericksonlarseninc.com MAY 2012
&SJDLTPO -BSTFO *OD t #KPSOTPO 4FOUJOFM o & - t Excellence & Leadership &SJDLTPO -BSTFO *OD o 8* t
WISCONSIN INDEPENDENT AGENT
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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.
West Des Moines, IA
800.274.3531
www.imtins.com
beyondtheexpected.com
ONE DREAM ENDS ANOTHER BEGINS
“I actually had a bell on my fence. The neighbors said while the storm was going on, that’s all they heard. And, all of a sudden, that bell stopped ...” - Policyholder who survived the Southern Illinois ‘hurricanado’
Going Beyond the expected ® in rebuilding lives. And dreams. It’s what we do.
See Wyatt’s entire story at beyondtheexpected.com
AUTO 26
HOME
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In calm times. In times of distress. Count on Pekin Insurance ® to go the extra mile. Our policyholders appreciate that. As do our agents. From providing outstanding products at competitive rates to high-tech solutions that streamline business, we do whatever it takes to help our agents build their business … and customers like Wyatt build–or rebuild–their dreams. Going Beyond the expected.® That’s what you can expect. From Pekin Insurance. Become a part of it. Call Pekin Insurance today at 800-322-0160, Extension 2394. Or visit pekininsurance.com.
WISCONSIN INDEPENDENT AGENT
MAY 2012
Expand Your Reach by Merging With Gallagher To support your professional advancement, Gallagher offers career paths for merger partners and their employees. As a result, many merger partners move up steadily into our executive ranks and their employees gain access to a full range of education and training programs—all aimed at career advancement and maximum earning potential. “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.
For more information, contact: Dave Koberstein Managing Director Arthur J. Gallagher Risk Management Services, Inc. 18000 W. Sarah Lane, Suite 100 Brookfield, WI 53045-5840 262.792.2202 dave_koberstein@ajg.com
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.” — Mike Henthorn, South Central Regional Manager MAY 2012
WISCONSIN INDEPENDENT AGENT
When you’re part of Gallagher, your business grows.
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!
IIAW Annual Convention Kalahari Resort, Wisconsin Dells May 9-10, 2012 Register at iiaw.com
FROM THE ARCHIVES
Circa 1966 or 1967, Wisconsin Gov. Warren P. Knowles (left) accepts the IIA Safety Leadership Award from Robert Clayton, president of the Association, at the Pfister Hotel in Milwaukee. Robert went on to become the president of the IIAA in 1976 and was installed in Toronto at the national convention.
KNOWLEDGE COMES FROM EXPERIENCE “I go the distance on my bike—just like my 30-year journey with J.M. Wilson. I lead a great team of managers and underwriters that work hard to help our agents be successful.”
Sandi Fritz, CIC Vice President, Underwriting and Branches—and fixture on the bike trail
Connect with Sandi on LinkedIn!
PIA National 2011 MGA of the Year Property/Casualty t Professional Liability t Surety Commercial Transportation t Personal Lines t Premium Finance
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800.666.5692
WISCONSIN INDEPENDENT AGENT
jmwilson.com
MAY 2012
MAY 2012
WISCONSIN INDEPENDENT AGENT
29
Food for Thought NO SERIOUSLY, IT’S A ROLEX Total faked goods seized equaled $1.4 billion in 2010. Counterfeiting and piracy cost the U.S. economy between $200 and $250 billion per year, and they are responsible for the loss of 750,000 American jobs, according to industry reports. Here are the top 10 most counterfeited products: 10. Pharmaceutical drugs
!"#$"%&'( )'*+%,-./0
9. Jewelry 8. Watches
LET ME TELL YOU HOW IT WILL BE…
PHOTO CREDIT
Photographer Henry Hamilton Bennett is known as the man who The U.S. tax code is huge – over 3 million words long made Wisconsin Dells famous. His pictures revealed the natural – and filled with loopholes. If you took all of William beauty of the area and made him one of the greatest landscape Shakespeare’s works and collected them together, the photographers of the 19th century. (Editor’s Note: Google “Leaping entire collection would only be about 900,000 words the Chasm” for a sample of his work.) H.H. opened his first photo long. Seventy-five years ago, the instructions for the 1040 studio in 1865 and it’s the oldest operating business in Wisconsin form were two pages long. Today, they are 189 pages long. Dells. It is also believed to be the oldest operating photography These are just the instructions. The United States has the studio in the United States. In 1999, the State Historical Society highest corporate tax rate in the world (35 percent). In of Wisconsin acquired the studio with its priceless collection of Ireland, the corporate tax rate is only 12.5 percent. Are photo prints, negatives and antique equipment. The studio has corporations moving outside of the U.S.? Yes. been restored. Source: dells.com, wisdells.com and wisconsinhistory.org
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7. Cigarettes 6. Computers and computer hardware 5. Optical media, like CDs, computer software and DVDs 4. Handbags, wallets and backpacks 3. Clothing 2. Consumer electronics, like smartphones 1. Shoes. Twenty-four percent of all seizures are fake shoes. Source: wisn.com
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Power Your Insurance Business With A Great Brand. Join AAA’s Team of Independent Insurance Agents. AAA brings a powerful difference to your insurance carrier line-up. That’s because we’re a club, not just another company – offering your customers more than a sense of security, but a sense of belonging. Here’s your opportunity to share in AAA’s brand strength, while enjoying a competitive commission structure, outstanding contingency program and innovative co-op advertising resources.
For current opportunities, contact Heidi Nienow at 608-828-2614 or hqnienow@aaawisconsin.com Insurance underwritten by Auto Club Insurance Association or Auto Club Group Insurance Company.
www.acuity.com 30
WISCONSIN INDEPENDENT AGENT
MAY 2012
Introducing Eva & Ella, the ACUITY Cuties
facebook.com/acuitywow
WHY Walk
when you can soar?
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