Primary Agent - June 2010 - PA Edition

PENNSYLVANIA

INTHISISSUE________________

Client newsletters make a splash

5 reasons to take the e-newsletter plunge

Sink or swim: CompanySatisfaction Index

G14854_Covers.qxp:June10Primary 5/17/10 10:47 AM Page 3

A.M. Best A+

Get Ready Pennsylvania.Here Comes ACUITY !

For All That Matters

Interested in an agency appointment?Please contact Territory Director

Steve Harris at 717.756.9983

www.acuity.com

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A 1-2 PUNCH!

BUSINESS | HUMAN SERV ICES | INLAND MARINE | AUTO | HOME | L I FE/EMPLOYEE BENEF I TS | F LOOD

When you’ve got Harleysville CustomPakSM in yourcorner, it’s easy to go toe-to-toe with the competitionfor quality commercial lines business. With a robustcombination of core enhancements all built intothe base cost of the product, CustomPak deliversthe punch that many carriers offer as extras undertheir BOPs for small business customers. For smallmiddle-market accounts, our CustomPak productconnects just as cleanly with an alternative coveragetier that offers higher base limits with the flexibilityto boost protection even further.

If you’re looking for a knockout sale in the firstround, put on the gloves and start writingCustomPak business with Harleysville today.

For more information, call 800.523.6344, ext. 5016,visit www.harleysvillegroup.com, or contact yourlocal Harleysville office.

Harleysville CustomPakSM

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E-mail newsletters make a splash

Duh nuh. Duh nuh. Duhnuh duhnuh duhnuh duhnuh. Nope, that’s not Jaws onthe independent agent’s heels. It’s the direct market, aiming to sink its teethinto the independent agency system’s core business. Defend yourself byshowing your value … through a client newsletter.

Page 12

Client newsletters: top five reasons to go digital

Why should you swap your snail-mail newsletter with an e-mail version? Let us count the ways….

Page 16

Will you sing praises or the blues?

Whether you’re feelin’ groovy about your carriers or you can’t get nosatisfaction, now is the time to sing it from the rooftops. IA&B’s biennialCompany Satisfaction Index is open through July 30.

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ContentsP R I M A R Y A G E N T M A G A Z I N E

Copyright 2010. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial,insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult withcompetent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before makingany decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in PrimaryAgent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B.Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&Bendorsement of the products and/or services.

Subscriptions: Non-member price: $2.25 per copy or $15 per year.

All communications for publications, including news, features, advertising copy, cuts, etc., must reach the editor by 1st of month two monthsprior to publication. Advertising rates furnished upon request.

Address inquiries to:Primary Agent EditorPO Box 2023Mechanicsburg, PA 17055-0763Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347

Periodical postage paid at Mechanicsburg, Pa. and additional entry post office.

Postmaster: Send address changes to above address.Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2010-6) is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

4 Chair of the Board’s Message5 Member FAQ6 State News8 Preventing Errors & Omissions9 Glance at Events10 Coverage Corner

23 IA&B Partners24 Technology Update28 Advertisers Index28 Classified Ads28 Last & Least

In every issue

Mission StatementPrimary Agent delivers ideas to helpInsurance Agents & Brokers’ membersnegotiate their unique position asguardians of trust between insuranceconsumers and companies whilefacing the challenges of maintaining a small business. Primary Agent also supports IA&B’s mission topreserve and advocate the AmericanAgency System.

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www.emcinsurance.com

© Copyright Employers Mutual Casualty Company 2009 All rights reserved

MAKE EMC YOUR CHOICE FOR MAIN STREET BUSINESSWhen you think main street business, start thinking about the EMC Choice® Businessowners Program. Small and midsize businesses will enjoy the flexible coverage options designed to meet their specific insurance needs, the added value of free loss control services, plus the responsive service from an EMC branch office nearby. So if you still think EMC is just for niche programs, think again. Count on EMC ® for your main street commercial lines marketing, too. For more details, contact your local EMC branch office.

I used to think EMC was ju st for niche commercial programs. Then again, I used to think that chocolate milk came from brown cows.

Valley Forge Service Office: 800.362.3620 | Home Office: Des Moines, IA

G14854_01-11.qxp:June2010 5/17/10 10:05 AM Page 3

OfficersKathleen M. Glattly, ChFC, CLU, CPCU

Chair of the BoardFactoryville, Pa.

David Rosenkilde, CICVice Chair of the BoardReisterstown, Md.

Robert J. “Buc” Cawley, AAIImmediate Past Chair of the BoardWexford, Pa.

MembersNorman F. Basso, CPCU

York, Pa.

Vincent D. “Chip” Boylan Jr., CPCURockville, Md.

Henry “Butch” Bradley, Jr.Crofton, Md.

Timothy P. BurrisThompsontown, Pa.

M. Scott Clemens, CIC, CPCU, CLU, ChFC Souderton, Pa.

John T. “Chip” Colwell Jr., CICCorry, Pa.

G. Greg Gunn, CICLemoyne, Pa.

Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-PWest Chester, Pa.

Diana M. Hornung-Momot, ACSRWilmington, Del.

Linda A. McCann, AAI, CPCU, CPIWSalisbury, Md.

Michael F. McGroarty Sr.Pittsburgh, Pa.

Scott C. Rogers, CPIAYork, Pa.

Susan A. Sallada, CIC**Ft. Washington, Pa.

William D. Schneider, CPCU, ARM*Pittsburgh, Pa.

Robert A. Walbeck, CICHomer City, Pa.

David B. Wasson Sr., CICState College, Pa.

James M. Watkins*Dover, Del.

King W. “Kip” White, LUTCFFallston, Md.

John S. Yasik, CICNewark, Del.

* IIABA National Director** PIA National Director

Board of Directors

Summertime reflections

Summer is just around the corner: Days are longer. Spiritsare higher. And everyone’s scheduling a little time to relax.

Understandably, the agency pace slows a bit during ourlong, lazy summer. This makes it an ideal time to sit backand reflect on ways to improve your agency operations andbecome more efficient.

Maybe it is focusing on that intimidating technology project(social media, anyone?) or complying with those privacyrules that just will not go away. Or perhaps, it is creating anemployee manual or instituting producer agreements.

For all of these projects, and more, IA&B has resources tohelp. Start with a visit to www.iabgroup.com or a call to theassociation’s Member Service Center at (800) 998-9644 forassistance.

Otherwise, flip through this issue of Primary Agentmagazine for tools to enrich your client and carrierrelations. The lead article showcases IA&B members’ accessto a simple (not to mention discounted) client newsletterservice. Then on page 18, you’ll learn how to participate in— and benefit from — the association’s 2010 CompanySatisfaction Index. Yes, it is time again to unite our voicesand let our carriers know how they are doing or what theyneed to be doing for you, their agency force!

So take this magazine (along with a good book), find ashady spot outside, kick up your feet, and enjoy.

Until next time,

Kathleen

[ 4 ]

Kathleen GlattlyCPCU, CLU, ChFC, AIM

Chair of the Board’sM E S S A G E

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?QUESTION: Can a retired

insurance producer continue to

receive renewal commissions after

the license has expired, if he or she

was licensed at the time the

insurance was sold?

ANSWER: This actually depends onthe state where the policies were sold. InDelaware and Pennsylvania, the lawspecifically allows renewal commissionsto be paid to a person for selling,soliciting or negotiating insurance if theperson was licensed at the time of thesale. The statutory references andrelevant excerpts are as follows:

DE: Title 18, Part I, Chapter 17

§ 1714. Commissions

“(c) Renewal or deferredcommissions may be paid to aperson for selling, soliciting ornegotiating insurance in this State ifthe person was required to belicensed under this chapter at thetime of the sale, solicitation ornegotiation and was so licensed atthat time.”

PA: Title 40

§ 310.72 Payment of commissions.

“Exception. - An insurance entity orlicensee may pay:

(1) a renewal or other deferredcommission to a person that is not alicensee for selling, soliciting ornegotiating a contract of insuranceif the person was a licensee at thetime of the sale, solicitation ornegotiation;”

In Maryland however, this will only beallowed for Life and Health policies, butnot in Property and Casualty. Thisprovision forces retired P&C producersto maintain a license in order to be ableto continue to collect renewal ordeferred commissions. The relevantexcerpt from the law follows:

MD: Insurance Article, Title 10, Subtitle 1

§ 10-130. Commission only tolicensed insurance producer

“(a) Except as otherwise provided in§§10-102 and 10-119 of this subtitle,a commission, fee, reward, rebate,or other consideration for selling,soliciting, or negotiating insurancemay not be paid, directly orindirectly, to a person other than alicensed insurance producer.

(b) Except as otherwise provided inthis article, for life insurance orhealth insurance this section doesnot prohibit payment to or receiptby a person who formerly held a

license and, if the person acted onbehalf of an insurer, anappointment of:

(1) commissions on renewalpremiums on existing policies; or

(2) other deferred commissions.”

DO YOU HAVE AQUESTION? E-mail it to us at [email protected] use “Primary Agent FAQ” in the subject line of your message. You can also fax your question to (717) 795-8347. We look forward toanswering your questions!

Member FAQ

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State NewsPrimary Agent | June 2010

[ 6 ]

Ignoring the Red Flags Rule means riskingcostly penalties. FTC enforcement beganJune 1, so agencies must act quickly todetermine if they are affected.

Insurance agencies typically should notfall within the scope of the Red Flags Rule.However, some may qualify based ontheir circumstances and/or businessdecisions. Members are encouraged tovisit the IA&B Web site (see link below)and determine if they will be impacted.

Reminder: Even if the Red Flags Ruledoesn’t apply to your agency, otherprivacy regulations do apply and covermany of the same elements. Forexample, development of a writteninformation security program.

Read more:www.iabgroup.com/pa/red_flags.html

FTC’s broad language opens uplegal challengesThe American Bar Association (ABA) wona legal challenge that argued lawyerswere not “creditors” and therefore did nothave to comply with the Red Flags Rule.This litigation prompted the AmericanInstitute of Certified Public Accountants(AICPA) to file a challenge.

As this issue of Primary Agent went toprint, the FTC appealed the ABA decision,and the AICPA suit was put on hold untilthe appeal is heard. IA&B will continue tomonitor the outcome of these cases –and the implications for insurance agents.

Red Flags Rule now in effect

New MembersW E L C O M E

Unique Insurance Concepts Associates Inc.

Kutztown, Pa.

Bailey-Enterprises InsurancePottstown, Pa.

Reisinger Insurance Inc.New Bloomfield, Pa.

CSI & Associates Inc.Dalton, Pa.

Davevic Benefit Consultants Inc.Grove City, Pa.

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Get outta town:Ohio’s WC statutefor non-residentemployersReminder: Pennsylvania employers whoconduct incidental business in Ohiomay need to rethink their workers’compensation (WC) coverage.

A September 2008 change in Ohio’sWC law removed out-of-stateemployers’ exemption for temporaryworkers (working fewer than 90 days).That means that Pennsylvaniaemployers could be found in violationof the statute if they don’t carry OhioWC insurance.

To further complicate the issue, Ohio isa monopolistic state, and coverage isn’tavailable through item 3.A or 3.C of theinsurance policy. IA&B’s Web resourcedetails employers’ options.

Read more:www.iabgroup.com/pa/wc/oh.html

Learn more about WC fromJerry MiltonIA&B teamed up with the renownedJerry M. Milton, CIC, to produce state-specific seminars that cover what you and your staff really need to know about Workers’ Comp. Think: experience rating, classificationand rating, and state and federal laws. Registration is open for eightlocations throughout Delaware,Maryland and Pennsylvania. Seminars begin in late August.

Read more:www.iabgroup.com/education/sp_work_comp.html

Gambling withraffles and othercomplianceviolationsAgents walk a fine line when offeringincentives to quote an insurance policy.Raffles, contests and drawings mayseem innocuous, but some of thesecreative pitches are misdemeanoroffenses prohibited by law.

Rebating is one of the most commoncompliance violations seen by thePennsylvania Insurance Department —and one of the 10 highlighted in IA&B’sCompliance Pitfalls: How to AvoidCostly Fines & Penalties seminar. Theworkshop covers top violations and —more importantly — how to preventfines and loss of license.

Seminars run late July through midAugust at locations throughoutPennsylvania. Attendance garners 4 CE credits.

Read more on rebating:www.iabgroup.com/pa/rebating.html

Register for the seminar:www.iabgroup.com/complianceseminars

MAP recap:Members plotIA&B’s directionIt’s a wrap for the spring MAPs. Dozensof IA&B members participated in recentPennsylvania Member Agent Panel(MAP) meetings — venues for membersto share industry issues and shape theassociation’s priorities.

This meeting series focused on day-to-day operational issues thatdistract agents from selling and servingcustomers … and how IA&B can assist. The IA&B Board of Directors now will review MAP feedback anddiscuss its impact on the association’sstrategic direction.

The semi-annual MAP meetings areheld at nine locations throughoutPennsylvania. Participating membersserve two-year terms.

Learn more:www.iabgroup.com/maps.asp

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PreventingE R R O R S A N D O M I S S I O N S

[ 8 ]

PAUL E. WALTERS

Paul E. Walters is claims

manager for Utica Mutual

Insurance Company in

Utica, N.Y.

Insurance Agents & Brokers

Service Group Inc. is the

exclusive agent for the Utica

E&O program in Delaware,

Maryland and Pennsylvania.

For questions regarding this

article or your Errors &

Omissions coverage, contact

IA&B at (800) 998-9644 or by

e-mail at [email protected].

CLAIMS-MADE POLICIES: DO YOU AND YOURCLIENTS UNDERSTAND RETRO DATES?

Primary Agent | June 2010

There are a number of riskswhich, because of the natureof their business, are placedinto a claims-made policyinstead of a traditionaloccurrence policy. ManyProfessional Liability policies –including Errors & Omissionspolicies – are written on aclaims-made basis. Sometypes of manufacturing risksare also written on a claims-made policy, so anunderwriter has a better feelfor a risk from year to year.Retro dates are an importantconsideration when a claims-made policy is written.

We have seen claims where itwas apparent that neither theagent nor the claimantunderstood retro dates, andclaims against the agentfollowed. Two key triggerpoints in any claims-madepolicy are the “wrongful act”date and the date the claim ismade. A claims-made policyonly covers claims madeduring the policy period,which includes an extendedreporting period if the policyis terminated. That concept iseasy to follow – although

there are some provisions foran insured to lock in a date aclaim is made by reportingfacts or circumstances thatcould result in a claim to thecarrier during the policyperiod.

Have a workingknowledgeA “wrongful act” is a definedterm in a claims-made policy.It is the act, error or omissionan insured commits thatultimately gives rise to aclaim. For a professional,using a doctor as an example,that would be the date thedoctor misdiagnoses apatient’s malady or the datethe doctor errs whileperforming surgery. For amanufacturer, the wrongfulact date would be when adefective product wasmanufactured.

Retro dates on a claims-madepolicy are directly tied intowrongful act dates. If a riskhas a retroactive date listedon the policy, there is nocoverage for any wrongful actthat occurred prior to theretro date. If the policy states

“none” for a retro date, allprior wrongful acts arecovered – no matter whenthey occurred. Ideally (and ifpossible), a client with aclaims-made policy shouldhave no retro date listed. Yetthat is not always possible,and the decision to accept arisk with no retro date restswith the underwriter.

If a client has policy with aretro date listed, the agentmust make the client aware ofthe meaning and significanceof it. If an agent moves aclient from one claims-madepolicy to another and thenewer policy has a retro datethat is the same as theinception date of the newerpolicy, the agent shouldadvise the client of the changein retro dates and tell themthat a “tail” can be purchasedfrom the old carrier (whichhad an earlier retro date) tocover themselves if claimsarise from earlier wrongfulacts. “Tail” coverage can bepurchased anywhere fromone year up to 10 years froma prior carrier.

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If an agent does not have a workingknowledge of the basic rules ofwrongful act dates, retro dates and“tail” coverage, mistakes will occur andclaims will be made.

The claim against the agentwas settled for …For example, an agent switched claims-made carriers for a saw manufacturer.The old claims-made policy had athree-year retro date (to three yearsback from the inception date), whilethe new policy only had a one-yearretro date. The agent thought a one-year retro was better than a three-yearretro and never discussed with theclient the option of purchasing a “tail”from the prior carrier.

The client was sued by a man (duringthe new policy term) who was severelyinjured while using a saw, rendering hisdominant arm useless. The saw wasmanufactured two years prior to thenew policy’s inception date. The new

carrier disclaimed coverage becausethe wrongful act date was prior to theone-year retro date. The old carrierdenied coverage because the claim wasnot made within the policy term. Theclient sued the agent. The claim againstthe agent was settled for $335,000.

Another example is a case where theagent’s client was an engineering firm.The agent switched carriers from apolicy that had no retro date to a policythat had a seven-year retro date. Thefirm had worked on a silo thatcollapsed, and the agent was aware ofthe collapse, which occurred eightyears after the silo had been workedon by the client. During the term of theold claims-made policy, the clientconferred with the agent and theydecided, because no claim had beenmade at that time, not to report thepotential loss to the old carrier.

When a claim was made during theterm with the new carrier, the loss was

reported to that carrier, which deniedcoverage because the wrongful actoccurred before the seven-year retrodate. The client paid $300,000 to settlethe claim against them and sued theagent, alleging the agent knew whenthe silo had been worked on by theclient – and that the agent should havereported the loss as a potential claim tothe old carrier during that policy termor obtained an earlier retro date withthe new carrier. The case against theagent was settled for $135,000.

Discuss and understandAn agent selling claims-made policiesunaware of the ramifications of retrodates and not discussing those issueswith the client when coverage is being procured is inviting a lawsuit.Protect the agency’s interests by fully discussing and fully understandingthe importance of retro dates with your clients.

Date Topic Location

1-3 P&C Licensing Study Course Monroeville, Pa.

1 CISR-Commercial Property Reading, Pa.

2 CISR-Commercial Property Wilkes-Barre, Pa.

3 CISR-Commercial Property Kennett Square, Pa.

8-10 P&C Licensing Study Course Mechanicsburg, Pa.

L&H Licensing Study Course Philadelphia, Pa.

9 CISR-Commercial Property Hagerstown, Md.

10 CISR-Commercial Property State College, Pa.

15 CISR-Commercial Property Macungie, Pa.

16-18 James K. Ruble Graduate Seminar Annapolis, Md.

16 CISR-Commercial Property Timonium, Md.

William T. Hold Seminar Kennett Square, Pa.

22 CISR-Agency Operations Allentown, Pa.

23 CISR-Agency Operations Mechanicsburg, Pa.

24 CISR-Commercial Property Monroeville, Pa.

28-7/1 CIC-Agency Management Lancaster, Pa.

Glance at EventsJ U N E C A L E N D A R

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CoverageC O R N E R

[ 10 ]

JERRY MILTON, CIC

Jerry M. Milton teaches

and consults on industry

issues. The legal profession

recognizes him as an

expert on insurance

coverages. He is also the

education consultant for

IA&B, working with CISR,

CIC and continuing

education programs.

“LOSS” VS. “CAUSE OF LOSS”


Following the destructivehurricane seasons of 2004and 2005, building materialswere in short supply. This wascaused not only by therepairing and rebuilding ofthe storm damage along theGulf Coast, but also by thehousing boom. To fill this gapin building materials,distributors looked overseas.

Enter “Chinese drywall” – aproduct we’re now all toofamiliar with. About 500million pounds of this drywallwere imported into the UnitedStates between 2004 and2007. Most of this drywall hasbeen traced to Chinesesubsidiaries of GermanManufacturer KnaufPlasterboard Tianjin Co., Ltd.

This tainted drywall was usedthroughout the United States,but mainly along the GulfCoast. We now know thisproduct emits elevated levelsof sulfur and strontium, whichcause corrosion in copperpipes, heating and airconditioning units andelectrical wiring. And, in many

cases it has caused theoccupants to become ill.

Families and building ownersare now facing devastatingand costly consequences. Inorder to remediate theirhomes and buildingscontaining this drywall, allinterior walls must be strippedand all piping, wiring andheating and cooling systemsreplaced.

Thousands of liability claimshave been filed against thedistributors, importers and theChinese manufacturers of thisdefective building product.Most of these claims havebeen filed in Louisiana,Mississippi, Alabama, Floridaand Virginia. In a recentinterview Sen. Bill Nelson (D-Fla.) stated that the Chinesegovernment was going to beheld responsible for thesedamages and that heexpected them to pay. Goodluck, Senator!

In June 2009 a Louisianacouple, Simon and RebeccaFinger, filed a claim undertheir Homeowners’ policy

with Audubon InsuranceCompany, a subsidiary ofAmerican International Group,Inc. for the damage to theirhome caused by Chinesedrywall. Audubon denied theclaim, citing three exclusions –pollution and contamination,gradual or sudden loss, andfaulty, inadequate or defectiveplanning.

Late last year, the Fingers filedfor and were denied summaryjudgment by Judge LloydMedley of the Orleans ParishCivil District Court. At thattime Audubon withdrew theuse of the pollution exclusionas a reason to deny coverage.However, Judge Medleyaddressed it anyway, sayingthe exclusion was nevermeant to apply tohomeowners’ claims fordamages caused by faultybuilding materials unlesssome type of environmentaldamage occurred.

In March 2010 Judge Medleystruck down Audubon’sdefense that certain policyexclusions apply to the

G14854_01-11.qxp:June2010 5/17/10 10:05 AM Page 10

Fingers’ claim. Judge Medley stated thegradual or sudden loss exclusion (latentdefect exclusion) does not applybecause, in this case, the rust and othercorrosion “is the loss, not the cause ofthe loss.” The judge further stated thatthe exclusion “is not designed topreclude coverage when the rust orcorrosion is the damage itself.”

Audubon and AIG have declined tocomment on this ruling, but they areexpected to appeal.

In July 2006 the Insurance ServicesOffice (ISO) introduced a newCommercial Property endorsement –Exclusion Of Loss Due To Virus OrBacteria (CP 01 40). In the 2010 revisionof the Businessowners’ Policy (BOP),ISO added a new exclusion – Virus orBacteria. The CP endorsement and theBOP exclusion both say the same thing.

We will not pay for loss ordamage caused by or resultingfrom any virus, bacterium orother microorganism thatinduces or is capable of inducingphysical distress, illness ordisease.

I don’t know about you, but this sounds like fancy talk for “Chinesedrywall” to me.

What about the Homeowners’ policy? I don’t have a crystal ball, but I certainlyexpect our insurers to address this issuethrough the introduction of newexclusion endorsements for theHomeowners’ policy.

Y’all take care!

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MARKETING

Duh nuh. Duh nuh.Duhnuh duhnuh duhnuhduhnuh. Nope, that’s notJaws on the independentagent’s heels. It’s the direct market, aiming tosink its teeth into theindependent agencysystem’s core business.

E-mail newsletters make a splashHow IA&B members can safeguard accounts from lurking direct writers

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[ 13 ]


How can you defend yourself from direct writers? You can show your value by asserting yourexpertise, educating clients and touting yourcustomer service … all of which can beaccomplished with a client newsletter.

A newsletter is an additional touchpoint with clients. A wayto stay top-of-mind with your customers who are bombardedby advertisements touting the direct market. And it solidifiesthe relationship between you and your clients by showcasingthe personal connection that direct writers lack.

Wish list comes trueYou talked. IA&B listened.

At the association’s spring 2009 Member Agent Panels,members indicated interest in client newsletters — as well asa lack of time to research a vendor and create a newsletter.So IA&B did the dirty work, seeking out and comparingvendors, investigating ease of product use and evennegotiating discounted rates for IA&B members.

The end result? IA&B partnered with Foresight Publishing, a 10-year-old marketing and communication companyfounded by an insurance agent. The partnership gives IA&B members discounted access to an e-mail newsletterservice (as well as print newsletters, Web feeds and content subscriptions).

Features of the e-mail newsletter service include:

w Fast and easy set up,

w Customizable templates,

w Availability of professionally written content,

w Simple mailing list management and

w Real-time reporting.

The following pages detail the service’s bells and whistles.Read on, and then log on to www.iabgroup.com/enews tocheck it out for yourself. To put it simply, it’s never beeneasier for IA&B members to communicate with their clients.

Customization’s a cinchIndependent agencies aren’t cookie cutter. Your specialtiesand services are unique. So your e-mail newsletter should be, too.

A winning feature of Foresight Publishing’s product is theability to personalize your e-mail newsletter … without

From the masthead to the

welcome message to the

articles, each component

of the e-mail newsletter

can be customized.

The reporting feature allows

agencies to track everything

from open rates and forwards

to bounces and unsubscribes.

H

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requiring tons of time in front ofyour computer. Customizationtakes on two forms – contentand design.

ContentEach e-mail newsletter beginswith a choice among sixoverarching themes – employeebenefits, personal lines P/C,individual life & health,commercial lines P/C,individual life & health (senior)

and mortgage/real estate. Onceyou select one, a newslettertemplate is generatedautomatically with threerelevant articles.

From there, the possibilities areendless. You can edit theprovided articles — perhaps toinclude a quote, mention aparticular product or highlight alocal connection. Or you canswap them out for others in the2,300+ article library. (Not toworry: The library can besearched by category orkeyword.) Or, if you’re soinclined, you also can replacethem with your own, personallywritten articles.

DesignNo need to bust the budget for agraphic designer. If you canclick a mouse, you can designyour e-mail newsletter.

The e-mail newsletter servicehas nine mastheads from whichto choose, plus the ability toupload an agency’s brandedmasthead. You can also uploadyour logo and photo and thenchoose among six templatedesigns that dictatearrangement of the logo, photoand articles.

Reports provide inside edgeEver wish you could be a fly onthe wall? Now you can be —virtually, that is — when clientsreceive your e-mail newsletter.Beyond serving as an additionaltouchpoint with customers, the service boasts a slickreporting mechanism that

helps you make the most out ofthe transmission.

You can track bounced e-mails, unsubscribed e-mailaddresses, opened e-mails andforwarded e-mails.

For bounces, the report showswhich e-mail addresses failedand why. The reporting featurealso tracks recipients whounsubscribe and removes theiraddresses from future mailings.You can also view how manyand which recipients opened

the e-mail, as well as those who clicked through to readarticles in their entirety. Finally, you can access therecipient e-mail addresses andmessages from the “forward toa friend” feature.

This insider knowledge shedslight on customers’ interestsand needs, as well as prospects.

Benefits aboundThere’s not much for agenciesto lose: Costs and the timerequirement are negligible. On the flipside, there is much to gain.

MARKETING

[ 14 ]

It’s never been easier for IA&B

members to communicate

with their clients.

Get started by visiting

www.iabgroup.com/enews.

Tip: Learn the ropesShort online tutorials explainhow to set up and edit yourfirst e-mail newsletter and how to upload e-mails to

your mailing list.

Tip: Get virtual digitsDon’t have every client’s e-mailaddress? Request them with

renewals. Or host an interofficecompetition or offer incentives

for staff to collect them.

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You can educate clients, reduce your E&O exposure and promote your products and services. And, perhapsmost important of all, an e-mail newsletter positions youin the forefront of customers’minds – right where you need to be as the direct marketcircles for fresh meat.


E-mail marketing regulationsIf your e-mail newsletter is simply an information piece (i.e. alerting

clients to risks and coverages), have no fear. Your business relationship

permits the communication.

However, adding sales and marketing content subjects you to CAN

SPAM Act requirements. Learn how to comply by visiting

www.iabgroup.com/enews.

Tip: Make it personalSend e-mail newsletters from theagency — or from individual

producers. Your online accountcan manage multiple mailing

lists and newsletters.

Child Care & Nursery School

Tri-State General Insurance Agency1-800-556-7894

We write More than “Trucking” - Visit us at www.tsgia.com

Maryland * Pennsylvania * Delaware * DC * Virginia * New Jersey

Sheri Nelson x237 [email protected]

Beverly Pusey x 230 [email protected]

Property/Casualty Underwriter

Business Auto Underwriter

Professional Liability at no additional charge Child Molestation & Abuse with no deductible Employees, including Directors, as insureds under molestation and abuse coverage Defense cost reimbursement for molestation and abuse coverage for facility owner Non Owned and Hired Auto Coverages Coverage for children with special needs or ‘drop-in’ centers Coverage for facilities with pets and field trips Value Plus Endorsement for special property form including signs, money, employee dishonesty etc. Coverage for extended hour and overnight child care facilities

G14854_12-17.qxp:June2010 5/17/10 10:12 AM Page 15

Why should you swap your snail-mailnewsletter with an e-mail version? Let uscount the ways….

1. Cost: Money talks — especially in a smallindependent agency, where cash flow must bemonitored to a tee.

A print newsletter comes with a lot of excessbaggage: printer and paper costs, design feesand postage top the list. On the other hand, ane-mail newsletter nixes all of those expenses.

2. Time: A relative of No. 1, time is money.Every hour a staffer spends working withvendors and coordinating a mailing is an hourlost from customer service, sales and othernecessary tasks.

An e-mail newsletter eliminates the printer,designer and post office. Instead, with a fewclicks of the mouse, the communication isprepped and ready to go.

What’s more, if an urgent need arises, themessage can be delivered much quickerthrough an e-mail.

3. Results: Sending off a snail-mail newsletterrequires a leap of faith that it arrives, isopened, is read….

E-mail newsletters are trackable. A post-delivery report details open rates, forwards,bounces and unsubscribes. That’s a wealth ofinformation to help agents hone in oncustomers’ interests and needs – and evenprospects.

4. Competition: Ignorance may be bliss, but itwon’t slow down the competition.

Direct writers, not to mention other agencies,spend a boatload on marketing — much of it online. An e-mail newsletter gives anindependent agency an online presence and an opportunity to stay in front ofcustomers, who are being bombarded withcompetitors’ messages.

5. Effectiveness: E-mail delivers more bangfor less buck.

In 2009, the Direct Marketing Associationstudied the effectiveness of e-mail versus snail mail. The former outperformed the latter.

An e-mail delivers the interactivity andconvenience a print newsletter cannot.

IA&B members have access to a discounted e-newsletter service. Learn more on page 12 and at www.iabgroup.com/enews.

MARKETING

Client newsletters: top fivereasons to go digital

[ 16 ]

G14854_12-17.qxp:June2010 5/17/10 10:12 AM Page 16

ABSOLUTER I S K P L A C E M E N T

Call for info 877-390-7475

Does your agency need market access?

Are you having difficulty placing coverage?

Help is on the Way….Absolute Risk Placement is a multi-line insurance brokerage providing skillful market access and related services to a select group of independent insurance agents and brokers.

We are known for our ability to provide products that are comprehensive and cost effective. Our capable, experienced staff stands ready to assist you with many kinds of insurance placements.

In addition, we have access to many aggressive “small business” markets that can provide fast, competitive products for you.

We’re looking for strong partners. Find out how to do business with us, it’s easy.

Visit us online www.absolute-risk.com

Health CareSkilled and Assisted Care FacilitiesHospitalsHome Health AgenciesHospiceMiscellaneous (Laboratories/Clinics/Urgent Care)

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Our core practice areas include:

Visit us online at www.absolute-risk.com and click on the “Become an ARP Producer” tab.

Or contact Tim O’Brien at [email protected],or by phone at 877-390-7475 x128.

Help is on the Way….

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G14854_12-17.qxp:June2010 5/17/10 10:12 AM Page 17

ASSOCIATION AT WORK

Whether you’re feelin’groovy about your carriersor you can’t get nosatisfaction, now is the timeto sing it from the rooftops.IA&B’s biennial CompanySatisfaction Index is openthrough July 30.

Will you sing praises or the blues?2010 Company Satisfaction Index

G14854_18-23.qxp:June2010 5/17/10 10:20 AM Page 18

[ 19 ]


When Jim Curran’s staff meets with prospects, carriertalk typically ensues.

How does this company’s pricing compare? How’s the claimsdepartment to deal with? What’s the company’s reputation?

That’s where IA&B’s Company Satisfaction Index (CSI) comesinto play. The Curran Financial Group staff explains itsrationale and then touts the survey results as proof.

The CSI is rapidly gaining acceptance as a gauge of carrierperformance. And agency staff, consumers and, of course,companies are benefiting.

“It’s all about leveraging IA&B members’ combinedexperiences for the good of the industry,” says KathleenGlattly, IA&B Service Group chairwoman.

Results strike a chordThe CSI is a biennial survey of IA&B members. The resultsshowcase agency staff’s collective experiences in everythingfrom products and underwriting to claims and technology.

“It’s a vehicle to share experiences that will be seen by alarger audience and to get corrective action,” says Curran,“and it provides positive feedback to carriers on theirprograms’ effectiveness.”

There are tangible benefits for agencies —comparing carrier relationships with those

of their peers and benchmarking companies before accepting appointments.

The overriding goal of the CSI is to improve carrierperformance. Beyond that, there are tangible benefits foragencies – comparing carrier relationships with those of theirpeers and benchmarking companies before acceptingappointments. And from a global perspective, the results arevital to IA&B’s dialogues with carriers.

Carriers face the music — and praiseIA&B launched its first CSI in 2004, and participation hasgrown substantially: Over 500 members took part in 2008.That’s a 56 percent increase from 2006. And for a non-scientific survey, the greater participation, the more credible the results.

W

Curious how yourcompanies fared?

Complete results from

past CSIs are available

on IA&B’s Web site.

Visit iabgroup.com and

choose “Carrier

Relationships” from

the menu bar.

Save the datesWho:

IA&B member-agency personnel

What:2010 Company

Satisfaction Index

Where:www.iabgroup.com

When: Tuesday, June 1 – Friday July 30

G14854_18-23.qxp:June2010 5/17/10 10:20 AM Page 19

“Momentum is growing — in member participation and company reception,” says Glattly.

Curran sees it in his meetingswith company representatives.

“CSI results are shared incompany’s print materials andagency visits,” he offers.“Carriers are using theoutcomes as a marketing tool.”

Survey clear as a bellParticipation is simple. Anonline survey prompts agencypersonnel to rate their top three(or more, if they are willing)carriers on a series ofstatements. A rank of 1indicates satisfaction, while 4denotes dissatisfaction.Categories include:

w products, pricing and underwriting,

w policy service and claims,

w agency/companyrelationship and

w technology.

“Completing the survey isgenerally simple and requiresminimal time,” explains Curran.

Since the survey is housedonline, participants can savetheir progress and return when it’s convenient.

How to chime inThe 2010 survey will beavailable on iabgroup.combetween Tuesday, June 1 andFriday, July 30. Each staffperson’s carrier experiences are

unique and valuable to thesurvey, so all agency personnelare invited to participate.

“Everyone’s busy, but the fewminutes needed to completethe CSI will go a long waytoward bettering agency-carrierrelationships,” says Glattly.

Look for results to be mailedwith the December 2010Primary Agent magazine andposted on iabgroup.com.

ASSOCIATION AT WORK

[ 20 ]

Will you changeyour tune? IA&B members rated 70 personal linesand 71 commercial lines carriers in2008. At least 10 responses wererequired to include a carrier in the final results:

Products, pricing &underwritingCommercial lines respondents weremost pleased with their underwriter’ssufficient knowledge and training. In personal and commercial lines,respondents were least satisfied with pricing.

Policy service & claimsRespondents were most satisfiedwith their carriers in this category.Personal lines respondents wereparticularly pleased with carriers’accurate and prompt policy issuance.Commercial lines respondents were most satisfied with carriers’payment plans.

Agency/companyrelationshipPersonal and commercialrespondents were most satisfied with companies’ stability and leastwith assistance in hiring,perpetuation and growth.

TechnologyAs in previous years, this categorygarnered the greatest degree ofdissatisfaction from respondents,who registered the most discontentwith their ability to offer input oncarriers’ technology planning.

GoodvilleMutualNew Holland, Pa.

Contact Fred Macy, [email protected]

Partnering with the finest independent agentsfor over 80 years

G14854_18-23.qxp:June2010 5/17/10 10:20 AM Page 20

IMPROVING YOURCARRIER RELATIONSHIPS

PARTICIPATE IN THE 2010 COMPANYSATISFACTION INDEX (CSI) TO MAKE ITTHE BEST COMPANY BENCHMARK AVAILABLE.

The 2010 CSI survey (coming this summer) provides thefoundation for a powerful tool that allows IA&B members tocompare carriers and carrier experiences with other agentsand to select new carriers. The tool, developed by IA&Bexclusively for members, gives you key information about yourcurrent and future companies.

Your participation makes this benchmarking tool possible.

Look for participation instructions in IA&B’s AgentHeadlines, and watch for the survey results in October 2010.

Insurance Agents & Brokers. Driving members to distinction.

FOR MORE INFORMATION ON THE IA&B COMPANY SATISFACTION INDEX SURVEY, VISIT IABGROUP.COM OR CALL THE IA&B MEMBER SERVICE CENTER AT (800) 998-9644.

That’s how we deliver distinction.

Driving members to distinction

G14854_18-23.qxp:June2010 5/17/10 10:20 AM Page 21

Platinum ProfileInsurance Agents & Brokers proudly recognizes Berkley Mid-Atlantic Group, LLC as one of its Platinum Partners.IA&B Platinum Partners dedicate the highest level ofsponsorship to our organization.

FEATURED PARTNERBerkley Mid-Atlantic Group, LLC

PRESIDENT & CHIEF EXECUTIVE OFFICER

Kevin W. Nattrass

COMPANY LOCATIONSHome Office, Glen Allen, VA

PA/OH Region, Harrisburg & Erie, PACapital Region, Glen Allen, VACarolinas Region, Charlotte, NC

1-800-283-1153

A.M. BEST RATING “A+” (Superior)

WEB SITEwww.wrbmag.com

Berkley Mid-Atlantic Group,LLC (BMAG) is a regionalcommercial property and

casualty carrier organized intothree full-service territories withlocal claim, underwriting and riskmanagement teams located closeto its customers and policyholders.BMAG’s policies are issuedexclusively through independentagents serving clients throughoutthe Mid-Atlantic Region, includingDelaware, Maryland, NorthCarolina, Ohio, Pennsylvania,South Carolina, Virginia andWashington, D.C. BMAG is amember company of W. R. BerkleyCorporation, an insurance holdingcompany founded in 1967 that isamong the largest commerciallines writers in the United States.

BMAG takes a generalist approachto underwriting, with a focus onmiddle market commercialaccounts within the Service,Manufacturing, Retail, Construction,Wholesale and Finance industries.Additionally, with its Marine andSelect Market divisions, BMAGoffers niche-oriented coverages fortransportation, schools, socialservices and public entityorganizations.

Our business approach ispredicated on sound, disciplinedunderwriting practices, always“doing the right thing” for ouragents and policyholders and isfurther exemplified in our corevalues of Trust, Integrity, Agility,and Excellence. We are committedto “Insuring the Future of Business”through our Independent Agencyrelationships.

Pictured from left to right is Eric Lange, PA & OH Region RVP; Marianne Morosko,Vice President Regional Underwriting PA & OH Region; Bill Yount, Capital Region RVP and Kevin Nattrass, President and Chief Executive Officer.

G14854_18-23.qxp:June2010 5/17/10 10:20 AM Page 22

WHAT IS IA&BPARTNERS?The IA&B Partners

program gives company

and allied businesses

the opportunity to

demonstrate their

commitment of support

to independent agents

and receive maximum

market exposure. As an

IA&B Partner, you will

also realize the benefits

of IA&B membership to

help you succeed in

the insurance industry.

DO YOU SEEYOUR NAME?To become an IA&B Partner,

choose the sponsorship

package that matches your

commitment of support.

Contact the Member Sales

Center at (800) 998-9644,

(717) 795-9100 or visit us

online at www.iabgroup.com

to get started.

Listed below are those companies that strongly support the independent agencysystem and Insurance Agents & Brokers.

Thank you for your continued sponsorship.

Primary Agent June 2010

PLATINUM LEVELACUITYBerkley Mid-Atlantic GroupErie Insurance GroupHarleysville InsuranceInsurance Agents & BrokersService Group IncMillers Mutual GroupMillville Mutual Insurance CoMutual Benefit GroupPenn National InsuranceSelective Swiss ReThe Main Street America GroupTravelersUtica National Insurance Group

GOLD LEVELOhio CasualtyProgressive

SILVER LEVELAegis Security Insurance CoAmerican Mining Insurance CoCumberland Insurance GroupDonegal Insurance GroupFrederick Mutual Insurance CoHarford Mutual Insurance CoJuniata Mutual Insurance CoMMG Insurance CompanyPrivate Client GroupPSBA Insurance TrustThe Motorists Insurance GroupWestfield InsuranceZenith Insurance

BRONZE LEVELAAA InsuranceAgency Insurance CompanyAllied InsuranceAuto-Owners Insurance CompanyBriar Creek Mutual Insurance CompanyBuilders Insurance GroupCapitol Insurance CompanyChubb Group of Insurance CompaniesCompanion Property & Casualty GroupCountryway Insurance CompanyEncompass InsuranceFirst General ServicesForemost Insurance GroupFriends Cove Mutual Ins CompanyGoodville Mutual Casualty CompanyGrange Insurance CompaniesHanover Fire & Casualty Insurance CompanyInsurance Alliance of Central PA IncInsurance Placement Facility of PAKeystone Insurers Group IncLebanon Mutual Insurance CompanyMercer Insurance GroupMerchants Insurance GroupMercury CasualtyPenn Millers Insurance CompanyPenn Prime Municipal InsurancePMSLIC Insurance CompanyReamstown Mutual Insurance CompanyRhoads & Sinon LLPRockwood Casualty InsuranceState Auto Mutual Insurance CompanyTAPCO Underwriters IncThe Brethren Mutual Insurance CompanyThe Mutual Service Office IncThe Philadelphia Insurance CompaniesTuscarora Wayne Insurance CompanyUPAC Insurance Finance

G14854_18-23.qxp:June2010 5/17/10 10:20 AM Page 23

SOCIAL NETWORKING’S VALUE TO INSURANCEAGENTS AND BROKERS – MAKING THE CASE

Primary Agent | June 2010 TechnologyU P D A T E

[ 24 ]

The growing popularity of socialnetworking has attracted theattention of agencies, brokersand carriers that believe theseplatforms open up new businessopportunities. They arediscovering its value as anessential tool for communication,customer engagement, leadgeneration, immediate customer

contact, customer service,customer interaction andrelationship building.

There are a couple of key factorsdriving this trend. First, there hasbeen a rapid rise in thepopularity of social networking.Insurance customers continue tomigrate online and adopt socialnetworking, and growing

numbers of customers turn tothe Web to research and buyinsurance. Secondly, there isnow a “Main Street” acceptanceof social networking as apowerful, persuasive tool.

Regardless of political affiliation,one only needs to study the rolethat social networking played inthe Obama campaign to

RICK MORGAN

Rick Morgan is a consultant with

four decades of experience in

innovative technology,

marketing and publishing in the

independent agency system.

He chairs ACT’s Social Web

Work Group.

[email protected];

G14854_24-28.qxp:June2010 5/17/10 10:29 AM Page 24

understand the power of socialnetworking and influence it is having onour society.

Social networking is not new –only the tools areFor many, social networking seemscomplicated, mysterious, intimidating andeven a bit scary. While the social Web isa “hot” topic, it is not new. Many of thesocial activities on the social networks areno different than the real-life activities wehave engaged in most of our lives. If youhave ever asked or given advice, given orreceived a recommendation, shared anexperience, collaborated on a project, orinteracted with a group, you haveparticipated in social networking.

So, what is social networking? Think of itas a virtual community where peoplewith common interests can gather andconnect, to share stories, ideas, thoughtsand opinions. Social networking is similarto a cocktail reception without constraintsof time or space.

Marketing transformed“Soon, being the loudest and broadestmessenger in a medium consumers don’t trust simply won’t count as muchas being the most authentic, availableand accessible brand in the mediaconsumers do.” – Experience: The Blog by Augie Ray

The business of being an insurance agentor broker relies on building trustedrelationships. The era of mass marketingwas a threatening time for insuranceagents. The impersonal era of “big”everything – mass mailings, cold callingand blast email – all had the effect ofdisenfranchising the independent agentand broker. They had a hard timestanding out, differentiating themselvesand competing in a marketing worldfilled with clutter.

There has been a transformation andsocietal shift. Consumers have had it withthe impersonal “push” marketing ofyesterday. Spam filters, do-not-call lists,DVRs and the like give the public thepower to say, “I have had enough.”

Social networking is fosteringfundamental changes in the way peoplecommunicate, gather information, formopinions and build relationships. It is allabout listening, building community,engaging in a conversation, sharing anexperience, being transparent, beingengaging and interesting and addingvalue. In short, social networking is allabout building and strengtheningrelationships.

This is encouraging news forindependent agents and brokers. Themeteoric rise of tools like Facebook,LinkedIn and Twitter are all telling us thatcustomers want to do business withpeople whom they feel like they knowand trust. This should be reason enoughfor agents and brokers to get in the gameand implement a social networkingstrategy.

Further, support for the role socialnetworking plays in facilitating trustedrelationships and the importance of thoserelationships in consumer behavior canbe found in the Nielsen Global OnlineConsumer Survey.

Social networks offer more substanceand value than the familiar “what areyou doing” status updates. Building andmaintaining relationships is core to sales.Promoting organic messages andmonitoring customer trends are part ofan agency’s overall marketing effort, andsocial networks serve a variety of publicrelations functions.

Here are some practical agent-inspiredexamples.

1. Provide the forum for discussion ofsocial and family issues.

Agents should use their blogs, Facebook,Twitter and LinkedIn to start and facilitatediscussion to enable customers to engagein dialogues around important andrelevant social and family issues.Founders Group Insurance uses theirBlog and Twitter to engage theirfollowers in both cultural and insurance-related topics.http://foundersgrp.wordpress.com/

2. Help customers through withdisaster preparedness and disasterrecovery.

Agents can use social networks torespond and help customers involved incatastrophes like floods, tornadoes andhurricanes with a wealth of helpfulinformation. Nibby Priest, an agent inHenderson, Ky., used Facebook andTwitter to communicate with customersduring an ice storm. Claims were actuallysubmitted over Facebook.http://blog.govaughn.com/

3. Educate customers on insuranceand allow them to share feedback.

Agent Dennis Volz uses his San DiegoInsurance Blog to help customers andprospects understand the world ofinsurance. http://dennis-insurance.blogspot.com/

4. Develop communities for targetingcustomer segments.

Irwin Siegel Agency is a provider ofinsurance and risk management solutionsto the social services field and uses socialnetworking to help generate interest withtarget customer segments.http://www.siegelagency.com/default.htm

5. Enhance your brand and marketingmessage. Social networkingprovides a wonderful opportunityto reach new audiences.

Rick Dinger of Creseda Valley Insurancehas used YouTube and Facebook toattract a new audience.http://www.youtube.com/watch?v=BU6JrRrsyk0; http://cvins.com/

6. Create a virtual presence.

Atlanta Insurance Live has used the socialWeb to create a virtual agency and hasmade very effective use of video to helpeducate his audience on insurance topics.http://www.atlantainsurancelive.com/

Your agency has phones on your deskand e-mail on your computer to allowpeople to communicate with you. Socialnetworking is simply a new tool for the

[ 25 ]

G14854_24-28.qxp:June2010 5/17/10 10:29 AM Page 25

communication you and your staff havealways done. These agencies are alsofinding that when they link their Websites and their social networking sites, itgreatly improves their positioning onsearch engines.

Getting started – creating a planThere are an infinite number of onlinenetworks available. Listed below are afew that can assist you in getting startedin your social networking journey.

It’s not enough for a Web site to be astatic brochure anymore. Your customerswant to do things, find things, sharethings and participate in things. Invest inmaking your Web site a resource anddestination for people and a conduit toinformation and interaction with you.

BlogsA blog is a Web site with regular entriesof commentary, news, opinion or othermaterial such as links, photographs orvideo. Unlike traditional and typically“static” Web sites, a blog enriched or“blog forward” site can easily be keptcurrent and relevant. A blog can add alevel of credibility and a sense ofaccessibility to an agency brand.

Blogs should be a mix of information.They can be used to explain productsand services, promote an agency-sponsored team or event, as well as offeropinion or topics of general interest.Blogs posted with valuable and relevantcontent are an essential aspect of asuccessful social networking strategy.

FacebookFacebook can be a great way to connectwith your customers. Facebook’spopularity means that many of yourprospects and customers already useFacebook to keep in touch not only withfamily and friends but also companies.With over 400 million active users, havinga presence on Facebook is a corecomponent to any social Web strategy.Perhaps knowing that the largestdemographic on Facebook is 35- to 50-year-olds and that one of the fastestgrowing groups is women over 55 willhelp provide a level of comfort.

Creating a business “fan” page is free,easy and a positive way to communicatewith “fans.” http://www.facebook.com

LinkedInLinkedIn is a social network for businessprofessionals. Members create detailedpersonal profiles much like a resume.LinkedIn also offers online groups forindividuals who share common interestsand goals. Participation in these groupsthrough discussion forums can serve as ameans to deliver news about yourproducts and services.http://www.linkedin.com

TwitterTwitter asks the question, “What are youdoing?” Your followers will be able toview your messages or tweets on theirscreen instantly in real time. Agenciescan tweet company announcements, askfor feedback, answer customer questionsor share relevant Web page links. http://business.twitter.com/twitter101,http://twitter.com

YouTubeYes, even video should be consideredwhen determining your social Webstrategy. Video is becoming a veryeffective way to deliver your message.http://www.youtube.com/

Managing your social Web presenceLike any business initiative, goodmanagement is key to long-term success.Social networking is no different. Whenyou purchased your first agencyautomation system, success depended onre-thinking how your business would berun and putting a team in place thatpossessed the skills necessary to leveragethe new technology.

As underscored above, social networking is more than just a marketingtool. Sales, customer service, support,claims and risk management can allbenefit from a comprehensive socialnetworking strategy. To that end, it isprudent to engage people from allagency disciplines (includingmanagement, customer service, legal, IT)in the process of planning, creating

strategy, implementing and participatingin your company’s social networkinginitiative.

The value you gain from socialnetworking will not only affect the wayyou communicate with your customers,but it can also change the way youadvertise, provide service, managerelationships and perhaps even how yousell products.

SummarySocial networking is quickly evolving, andthe issues which seem most pressingtoday will most likely be replaced by newones in the future. It is important toremember that it is the sociology not thetechnology that is key. Therefore, whilethe technology will change, it is thesocietal transformations that representthe lasting trends and the challenges forour profession.

There are a myriad of conversationstaking place on the Web, and ourindustry (and perhaps even your agency)is more than likely being discussed.Social networking provides agencies andbrokers with an opportunity to be anactive and trusted participant in thatdialogue. Being a company that peopletrust and want to interact with isundeniably good for business.

There are no hard and fast rules fororganizations wishing to use socialnetworking. And yet, openness andtransparency are key elements – with theend goal of building and strengtheningtrusted relationships. Social networkingisn’t about you: It’s about your online“community” of friends, fans andfollowers and connecting with them sothat when they have a need forinsurance, they remember they have anagent friend on the social Web whospecializes in that.

[ 26 ]

G14854_24-28.qxp:June2010 5/17/10 10:29 AM Page 26

Stability Security Sensibility

Leading Insurance Group Insurance Co., Ltd. is a licensed commercial insurance carrier providing competitive rates on property and casualty insurance to business owners in NY, NJ, CA, IL and PA. We spare no effort in providing our utmost products and prompt service for any and all of your insurance needs.

Leading Insurance Services, Inc.US Manager for Leading Insurance Group Insurance Co., Ltd.

Building and Building Owners Business Personal PropertyDry Cleaners Retail StoresPharmacies Pizzerias / Takeout

Apartments Office BuildingConvenience Store Risks DistributorsLiquor Stores Condo / Co-opLRO Buildings

(source by www.ambest.com)

Business OwnersProgram

Commercial Package

LIG offers up to $ 5,000,000 above LIG BOP and Package

NJ [email protected]

www.ligicus.com400 Kelby St., 15th FloorFort Lee, NJ 07024T. (201)720-2100 F. (201)720-2119

505 N. Brand Blvd. Ste 1025Glendale, CA 91203T. (818)254-1040 F. (818)254-1039

LIG Umbrella Policy

Formerly LG Insurance

[ 27 ]

Make Our Experience,Your Advantage.

200 North Main Street • Bel Air, Maryland • 21014-3544

Join our team today. Contact us to learn more:

www.harfordmutual.com800-638-3669

C’mon in, the flood-sales water’s fine

The 2010 Atlantic Hurricane season beganJune 1. As did the trickle-down effect on theMid-Atlantic: potential flooding.

Adding flood sales to an agency’s repertoiremeans rounding out accounts, lowering E&Orisk and increasing commissions. And now’s agreat time for agents to dip their toes into theflood-sales water.

IA&B members have access to an onlineresource center, complete with National FloodInsurance Program (NFIP) information,market access program links, trainingrequirements, consumer brochures and more.And, coming soon, IA&B will launch its on-demand flood webinar.

Learn more: Visit iabgroup.com or callIA&B’s Member Service Center at (800) 998-9644, option 0.

G14854_24-28.qxp:June2010 5/17/10 10:29 AM Page 27

Absolute Risk Placement . . . . . . . . . . . . . . . . . .17

Acuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .IFC

EMC Insurance Companies . . . . . . . . . . . . . . . .3

Goodville Mutual Cas Co . . . . . . . . . . . . . . . . .20

Harford Mutual . . . . . . . . . . . . . . . . . . . . . . . . .27

Harleysville . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

IA&B Partners Program . . . . . . . . . . . . . . . . . . .23

IA&B Series Ads . . . . . . . . . . . . . . . . . . . . .21, IBC

Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC

LIG Insurance Co Ltd . . . . . . . . . . . . . . . . . . . .27

Mutual Benefit Group . . . . . . . . . . . . . . . . . . . . .9

Preferred Property Program . . . . . . . . . . . . . . .11

Tri-State General Ins Ag . . . . . . . . . . . . . . . . . .15

Ad Index

ClassifiedA D V E R T I S E M E N T S

SOUTHEAST PA PRODUCERS & AGENCIES

Professional agency since 1926 locatedin Feasterville, Bucks County, Pa. Call for confidential information and a review of our services. Contact Ray Reinard at (215) 375-8600, Ext. 119.

If you would like to place a Classified Advertisement, simply fax your ad on company letterheadto (717) 795-8347, and we will take care of the rest.

[ 28 ]

Potty humor

The iconic Jackson Pollock did not discriminatecanvases. At a friend’s party and intoxicated, the artistlocked himself in a bathroom and painted a toilet seat.

Years passed, Pollock died, and his paintingsskyrocketed in value. One day, a fire ravaged the artist’saforementioned friend’s home and damaged thepainted toilet seat.

Insurance claims adjusters were left to determine thevalue — at a time when Pollock’s paintings were soldfor $1 million apiece and toilet seats went for anaverage of $20.

The result? An $820 payout.

Source: Insure.com

----------------------------------------------------------------———————-------The Last & Least column is dedicated to the industry’s oddities —from creative claims and kooky coverages, to (tasteful) jokes andstrange stories. Submit yours to [email protected], subject line: Last & Least. The editor will happily protect sources’ anonymityupon request.

G14854_24-28.qxp:June2010 5/17/10 10:29 AM Page 28



Documents

Primary Agent - June 2010 - PA Edition