The all-inspiring Simon Sinek asks, “How do you explain when things don’t go as we expect, or how do you explain when others are able to achieve things that seem to defy all of the assumptions?”

For example, how are some insurance agencies so innovative? How do they seem to thrive, grow and expand at a pace that is greater than the vast majority of others? Why do they appear to have something different?

If you ask someone why their product, service or company failed, people will always give the same three answers:

1.     Under capitalized

2.     The wrong people/employees

3.     Bad market conditions

Simon, in one of his famous Ted Talks asks, “Why is it that the Wright brothers were able to figure out controlled, man-powered flight?”  When there were other teams who were better qualified to achieve man-powered flight, better funded and all around better equipped, the Wright brothers beat them to it. Simon goes on to discuss that there is something bigger at play.

He codified it in his very simple, yet revolutionary idea titled the Golden Circle and the theory, “Start with Why”. This theory explains why some organizations are able to inspire where others aren’t.

Photo: Smart Insights

You see, people do not buy what you do, they buy why you do it. What is your purpose? What is your cause, your belief? Why does it exist and why should anyone care?

As an independent agent, you should strive to do business with people who believe what you believe. Insurance is vital to one’s economic security and that you are not just selling them an insurance policy, but peace of mind. Price is not a determining factor in what policy they purchase. What drives the decision is the superior coverage, the value of working with an independent agent and the ancillary benefits the insurance company offers. How all of these factors come together to support their American dream is what drives the passion within the industry.

When it comes to hiring individuals or companies to work for you, your goal should be to not just hire people who need a job, but to hire those who believe in what you believe as it relates to the products and services you sell and offer.

Simon Sinek says, if you hire people just because they can do a job, they will work for your money, but if you hire people who believe what you believe, they’ll work for your dream.

Nowhere else is there a better example of this than with the Wright brothers. In Simon’s famous talk, he goes on to tell a story of Samuel Pierpont Langley. Samuel was given $50,000 (which was a lot of money back in the late 1800’s and early 1900’s) by the United States government to figure out and create a flying war machine or airplane.

He had, what everyone would assume to be, the recipe for success. He was well capitalized, had access to some of the best and brightest minds money could afford and the perfect market conditions to achieve their intended objective.

How come very few people today have ever heard of Samuel Pierpont Langley?

That’s because two brothers, Orville and Wilbur Wright, beat him to it. You see, the Wright brothers didn’t have any money, not a single person on the Wright Brothers’ team had a college education. The difference was that Orville and Wilbur were driven by a cause, by a purpose, by a belief. That if they could develop this flying machine it would change the course of history. Those around them believed in the same cause driven by the same belief. Samuel Pierpont Langley was driven by the pursuit of fame and fortune and so were the people around him. The people who believed in the Wright Brothers did so with blood, sweat and tears and not for the paycheck.

As a result, on December 17, 1903, the Wright Brothers took flight and very few people were there to experience it. The irony is that on December 17, 1903, Samuel Pierpont Langley quit. He wasn’t getting rich or famous as he had hoped so he quit.

Simon finishes this story be saying if you talk about what you believe in, you will attract those that believe in what you believe, whether that be your customers or employees.

Here at the Independent Insurance Agents of Wisconsin, we founded Catalyit with the belief that we were founded for you, to support you, and to work for you with blood, sweat and tears! We understand that working hard for something we don’t care about is called stress but working hard for something we love is called passion. We are enthusiastic towards seeing you succeed and to help you pursue a sustainable competitive advantage for your agency and its employees. We understand why you do what you do, why your customers respond the way that they do to what you do, and why your employees and co-workers are loyal to you.

At Catalyit we don’t just understand your why, we want you to spend more time finding your why, growing your why, and to come together with others that want to see you, your agency, and your employees/co-workers be successful.  Catalyit was founded by a group of people who believe in you and the work that you do with the understanding that your time is valuable, and resources are limited. Catalyit wants you to be able to focus more on what you do best and take the stress and pain that technology can cause you, away.

Catalyit is more than a company. It’s an enlightening experience that simplifies technology for insurance agencies because with the right tech, agencies will thrive and that is exactly what we are going to help you do. We believe that with the right experts, solutions, training and community, we can come together to help your agency increase profit, improve its customer experience, cultivate its ethos among its employees all while digitally transforming itself.  

In world dominated by a lot of Samuel Pierpont Langleys - be the Wright Brothers and let Catalyit help you take flight.

By: Elizabeth Kordek; CPCU, Wahve Placement Specialist

For many of our wahves, a new job in the insurance industry is a lot like getting a new car.  If you’ve been in insurance for 15+ years doing the same kind of work, such as retail account servicing, claims, etc… there’s usually not a lot of difference in how the work should get done from one company to the next.  But, just like an experienced driver getting a new car, you still need to understand where the button is for the trunk release, how to turn the back windshield wiper on, and oh, that new beeping sound…that’s the lane departure warning.

Just because you’ve driven a car for decades, doesn’t mean the newness of the new car is any less, well, new. 

And so, getting the same job in a new company is also still new.  This is where a solid onboarding program come in to play in a successful wahve engagement.  The wahve is going to need some time to get to know new processes, procedures, software, etc.  Our wahves are proud that they have years of experience in the insurance industry and they want to be successful.   They will need resources (a helpful co-worker or manager) and tools (written procedures, for example) to get them on the right track.

While we’re on the subject, let’s talk about training. Just like the new car scenario, for an experienced wahve, training doesn’t necessarily need to be a three-weeks long, all encompassing, bumper-to-bumper overview of everything. 

But having no formalized introduction to the infotainment system (I mean, agency management system) is setting the wahve up for potential failure. 

Here are some helpful tools to consider having ready for your next wahve hire:

1. Decide on a dedicated person in your office who will get the wahve up to speed quickly.

2. Determine if your written procedures need an overhaul. Are they current and relevant for your current processes?  Do they include how to navigate in your software programs? 

3. Does the team understand what work the wahve will be doing and how to work with the wahve as part of the team? Does a new workflow need to be developed to avoid any confusion?

While you don’t need to give driving lessons to the wahves (thankfully, they are past that nail biting stage!) you do need to invest in their learning some new car systems to ensure they continue to be successful. 

Happy April - we hope that everyone enjoyed their holiday weekend! In today's Big I Buzz, we are discussing how insurers are facing the cryptocurrency craze, additional support heading to small business in Wisconsin and why you should put this year's Big I Legislative Conference on your calendar. 

Insurers Have Not Yet Embraced Cryptocurrency Craze Despite Demand

According to Reuters, Insurers have yet to catch up with the growing acceptance of cryptocurrencies as an investment and in commerce. "Insurers and brokers estimate that of the few that provide such insurance, none can offer coverage beyond $750 million for any client." Recently, Elon Musk announced that Tesla's customers can now use bitcoin as payment. However, if Tesla wanted to insure all of its recent $1.5 billion bitcoin investment against hacks, theft and fraud, it would be out of luck. 

Brokers say that they see a growing demand for coverage, but they cannot match with sufficient supply. Read more here.

Gov. Evers Announces More Than $46 Million in Support to Small Businesses

On April 6, 2021, Gov. Evers, the WEDC and the DOR announced more than $46 million will go to support an estimated 9,300 small businesses across Wisconsin which will receive a $5,000 grant through the "We're All In" grant program. "The new grants are funded through the federal Coronavirus Aid, Relief and Economic Security (CARES) Act. CARES funds were slotted to expire at the end of 2020, a federal omnibus bill signed before the end of the year extended the deadline until the end of 2021," according to the State of Wisconsin bulletin. Read the entire bulletin here. 

8 Issues Big "I" Members Will Champion During the Legislative Conference

This year's Big I Virtual Legislative Conference will be held April 13-16. Every day at 1 p.m. CST, sessions will run between 45 and 60 minutes. Here are 8 issues that Big I Members will champion during the conference: 

1. Maintain small business tax fairness

2. Oppose federal intrusion into insurance regulation

3. Secure a long-term flood insurance reauthorization

4. Concerns with the PRO Act

5. Preserve employer-sponsored health insurance

6. Defend the Federal Crop Insurance Program (FCIP)

7. Responding to future pandemics

8. Advocating for legal protections for independent insurance agents

You won't want to miss this conference AND registration is free to all Big I Members. Register and learn more about all of the topics being covered at the 2021 Big I Virtual Legislative Conference here. 

OCI Bulletin: Voluntary Extension of Special Enrollment Period for Products Offered Outside the Federal Marketplace

According tot he OCI Bulletin, "On January 28, 2021, President Biden signed an Executive Order reopening the HealthCare.gov marketplace to permit individuals to enroll in comprehensive health insurance coverage. The Centers for Medicare and Medicaid Services (CMS) announced the federal marketplace would reopen for a three-month Special Enrollment Period (SEP) beginning February 15, 2021 through May 15, 2021. In March, President Biden announced an extension to this SEP through August 15, 2021. 

OCI is encouraging insurers offering qualified health plans that have implemented a parallel SEP to provide an extension through April 15, 2021. If an issuer has already offered a SEP for their off-exchange plans, they are asked to submit a simple letter confirming extension of the off-exchange SEP be sent to ociratesforms@wisconsin.gov. 

For more news, check out the Action news section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click here to add your email to our emailing list. Don’t forget you can stay up-to-date on other industry news as its happening on our Online Community. You can join the Online Community (exclusive to IIAW members)  here. We hope that everyone has a great rest of their week.

Happy Wednesday! In this week's Big I Buzz, we are discussing today's ruling from the Wisconsin Supreme Court, we are announcing tech solution, Catalyit, and the behavioral changes to driving during the pandemic. 

Wisconsin Supreme Court Strikes Down Statewide Mask Mandate

Today (Wednesday, March 31st), the Wisconsin Supreme Court blocked Gov. Tony Evers from issuing any new public health emergency orders to mandate face masks without the approval of the Wisconsin Legislature. The statewide mask mandate was set to expire on Monday, but now ends immediately following the ruling. According to the Milwaukee Journal Sentinel, "The nonpartisan Legislative Fiscal Bureau told Wisconsin lawmakers in January that the state's FoodShare program could lose its extra funding of about $50 million a month if the state's emergency were extended." Read more here.

Introducing Catalyit!

The IIAW is proud to announce tech solution, Catalyit! Catalyit is simplifying technology for insurance agencies. The number of ways that you can leverage tech to increase profits and serve customers is nearly unlimited. Catalyit offers tools, guides & reviews, community, training and consulting to give you all the agency tech guidance you need in one place. Learn more about Catalyit by heading to their website www.catalyit.com. If you sign up for their email list, you'll receive their Top 10 Tech Tips today, and you'll be the first to hear when their free assessment is available. 

Catalyit is launching in June 2021! Click here for more details.

Distracted Driving Behaviors Increased During Pandemic

According to Insurance Journal, one in four drivers think that roads are safer today than they were before the pandemic, yet a growing number of drivers are texting or emailing while driving - in part as more of them feel pressured to be available for their jobs wherever they are."

A national survey of more than 1,000 consumers and business managers was conducted for the 2021 Travelers Risk Index on distracted driving. Respondents reported on their dangerous driving behaviors including: 

• Texting or emailing (26%, up from 19% pre-pandemic)

• Checking social media (20%, up from 13% pre-pandemic)

• Taking videos and photos (19%, up from 10% pre-pandemic)

• Shopping online (17%, up from 8% pre-pandemic)

Travelers reported that such driving behaviors may have contributed in part to more hazardous road. According to the National Safety Council, "Motor vehicle deaths were up 8% in 2020 from 2019 - the highest percentage increase in 13 years." Read more about the findings from the 2021 Travelers Risk Index here. 

For more news, check out the Action news section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click here to add your email to our emailing list. Don’t forget you can stay up-to-date on other industry news as its happening on our Online Community. You can join the Online Community (exclusive to IIAW members)  here. We hope that everyone has a great rest of their week.

By: David Thompson | CPCU, AAI, API, CRIS FAIA

Over the past few weeks I’ve received a flurry or emails about a customer who owns a fee simple home inside a Homeowners Association (HOA). There are various coverage options, but none of them being the “silver bullet.” Every solution has shortfalls.

While presenting classes at an insurance company about a month ago, several underwriters asked my view of the way to structure coverage. Their position, shared by many underwriters whom I know, is that they will not write a HO-6 policy unless it’s truly a condominium. They would not write a HO-4 policy, either, because their guidelines are that an owner-occupied dwelling does not qualify for the HO-4. That left them with the HO-3 as the only option. One underwriter stated, “Our agents don’t like that for a variety of reasons, two being price and the duplication of coverage between the master policy that often covers part of the dwelling and the HO-3 policy.” He asked, “What information do you have that I can use with agents.” Below are some of the points I made with the staff. Some of the points are my personal view, but I think they hold merit.

• Technically under ISO rules the HO-6 can only be used for

   a condominium unit or cooperative unit; it’s not available

   for a dwelling. Of course, some companies ignore ISO

   rules and make their own decisions.

• My main concern is trusting a HOA board to insure my

   investment that is typically in the hundreds of thousands

   of dollars. Why trust the board to buy a policy on my

   house? To me, it’s akin to asking someone, “Will you

   please buy my automobile insurance and take care of the

   payments?”

• The master policy could lapse and, without a HO-3, the

   owner is left in a bad situation. That exact occurrence

   took place about two months ago (and it’s not the first

   time I’ve seen it) when the HOA lost coverage and was

   unable to replace coverage timely. The agent in question

   received a phone call from a panicked customer who had

   no personal coverage of her own. The agent submitted

   an application for a HO-6 to an insurer who, once they

   underwrote it and saw it was not a condominium, issued a

  20-day cancellation notice.

• The master policy could be underinsured, resulting in a

   coinsurance or ACV penalty for the homeowner.

• The master policy may be lacking coverages. For

   example, there may be no ordinance or law coverage,

   losses might be settled on an ACV basis, the policy might

   not include water/sewer backup, and many more

   important coverages could be missing.

• Property loss checks would be paid to the HOA, not the

   property owner. Thus, the owner has no control over

   those funds and they are at the mercy of the HOA. In

   one recent instance involving roof damage, the

   association would not sign the claim check because only

   part of the roof was damaged and if that part was

   replaced then the entire roof would not match.

• Lenders may not accept a HO-6 policy with a Coverage A

   limit less than the replacement cost of the structure.

• Even with a HO-6 policy, there is the “duplicate

   coverage” issue between the HO-6 and the master policy.

   Whether the policy is HO-3 or HO-6, duplicate coverage

   exists.

• How is a Coverage A limit going to be determined under

   the HO-6? Regardless of HO-3 or HO-6, the best option is

   Coverage A equal to the replacement cost of the

   structure. How many customers will buy that much

   coverage under a HO-6 policy? How will they determine

   the Coverage A limit needed? It’s certainly not the agent’s

   job to do that.

As mentioned earlier, every solution has problems. I joke that if you Google “Control Freak” my photo appears! I’d never trust someone to insure my property. I’d buy the HO-3 policy and ignore any coverage provided by the HOA. I’d certainly rather have double coverage as opposed to no coverage.