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A New Approach to Marketing

A BizBio--an image alongside a name--can be used to convey the credentials of an insurance executive or firm.

May 6, 2019

When the biography of a businessperson becomes a BizBio, when brains and Braun combine to create a pointillist portrait whose style evokes the ink drawings popularized by the Wall Street Journal, that is when nameplates cease to be vanity plates. That is when insurers become household names. Consider, then, the power of a BizBio: an image alongside a person’s name. Consider, for example, the power of the name and image of the American Express charge card. Consider the card’s expression of a charge to keep, of a gladiator who leads the charge on behalf of honor, integrity, strength and security. Consider the value of a BizBio for an insurance executive. See also: Integrity First: Digital Marketing Manifesto Think of the invaluable quality of values, of knowing that people have a keepsake that celebrates the best leaders in a variety of industries, including technology, transportation and trade; and insurance, too. To be among the likes of Steve Jobs and Howard Schultz, to be in the company of men and women whose influence is historic, to be a person whose legacy influences popular culture and popularizes insurance, to be that person is a goal all insurers should strive to achieve. A BizBio confirms what many executives crave but few manage to convey: credibility. The credibility of a leader whose word elicits trust. The credibility of a leader whose work speaks for itself. The credibility of a leader whose legacy speaks to his life’s work. A BizBio encapsulates these points. It proves the point that excellence matters, that an executive sets an example for workers to equal and critics to extol. The example insurers need to make is one of connection: to connect with policyholders on a personal level. The connection between the contents of a BizBio and the content of a leader’s character: That connection depends on transforming insurance from an abstract concept to an accessible idea; that transformation depends on an insurer’s talent for translation, the felicity by which he turns numbers into words. Put another way, an insurer who works to ensure people understand him is an insurer who develops an understanding with his clients. He connects with people by listening to them. He listens to their concerns. He tries to address their concerns, even if he cannot assuage all their concerns. He communicates clearly—and often. See also: Marketing: A Plethora of Plagiarized Copy An insurer who connects with policyholders is a leader. Whether he has a BizBio is less important than what he learns by reading a BizBio. If what he reads makes him a better leader—and a better listener—the benefits will accrue to his company, his clients and his industry. He will, in the end, have what it takes to have his own BizBio.

Lewis Fein

Leadership

Key Difference in Leaders vs. Managers

Today, there is ambiguity in the role of leadership. Many people who need to be leaders are actually serving in a management role.

Mike Manes

May 6, 2019

About 35 years ago in a political science class, Dr. Campbell stated, with tongue planted firmly in cheek, that “plagiarism is copying from one source, research is copying from more than one source.” By the good doctor’s terms, this is the best-researched article I’ve ever written. It has also been the easiest – because most of the work was done by people better-educated, wiser, more experienced and more respected than me. Robert Frost said, “Two roads diverged in a wood, and I – I took the one less traveled, and that has made all the difference.” My observation is that this world contains many managers but few leaders. I believe that leaders select “the road less traveled” and that managers walk the well-worn path. Both roles are necessary. The problem is that the individuals involved try to walk both paths and get lost in the woods! In times of abundance, you need managers to create and maintain processes – to inventory the excess. Count what you have. Control the status quo! Managers say, “If it ain’t broke, don’t fix it!” “Let’s not reinvent the wheel.” “We’ve always done it this way.” Managers are about efficiency – “doing things right,” as Peter Drucker said. Management is about HOW. Leadership is about WHY. In times of competition, war, discovery and conquest, we need leaders to grow people and create systems. Leaders identify a current reality and define a future ideal. They then mobilize, organize and energize their followers to build a bridge between these two points and then to cross that bridge. Leaders believe, “We have nothing to fear but fear itself.” “The buck stops here.” “I have a dream.” “If you start to take Vienna, take Vienna.” “Let’s roll.” Leaders are about effectiveness – “doing the right things,” as Peter Drucker said. See also: Play With Dolls, and Be a Better Leader Today, there is much ambiguity in the role of leadership. Many people positioned as leaders are actually serving in a management role. Most of these people have what it takes to lead – unfortunately, they have been kidnapped by the status quo, the comfort zone, the urgent or the organization to accept the safer role of management. In my opinion, the role of a leader is easy to define but a challenge to create. The leader is:

A Dream Catcher – the leader must have a vision of sufficient grandeur to attract and motivate followers and (s)he must have the commitment to that vision and a discipline to pursue it.
An Organizational Architecture – the leader must build a foundation that will define and support the organizational infrastructure and operations. Every member of the organization should be able to view this foundation and infrastructure and determine if they fit. This foundation includes the vision, the values, the mission and the standards of the organization.
An Environmental Engineer – the leader must remove toxins from inside the organization and protect the organization from poison in the environment in which it exists.
A Coach – the leader must find or develop the people to build the infrastructure, design its systems and operate the processes. Coaches condition, develop, reward and discipline the team, write the game plan and scout the competition. Coaches know their team in the context of the game – when to substitute, when to kick a butt and when to pat it. They control the pace of the game and influence its outcome.

Leadership applied has been defined as follows:

Max DePree said, “The first role of the leader is to define reality.”
Henry Kissinger said “the task of the leader is to get people from where they are to where they have not been.”
Peter Drucker suggests that “the one absolute of a leader is followers.”

Let me be so presumptuous as to offer a reason for the ambiguity existing in the role of leaders today - FOLLOWERS HAVE CHANGED! Yesterday’s world and its organizations were built by the generation that won World War II. (“To the victors go the spoils.”) These leaders were trained in the military for war. Command and control was their mantra, and it worked. They were built to lead or to follow as needed. Leaders in tomorrow’s world are the children of the WWII generation. We were the hippies. We challenged the system. We rebelled against command and control. We are more diverse in demographics (women, people of color, cultures, etc.). We believe in collaboration and consensus building. We were built to manage. As leaders of today (and tomorrow), our successors and we must realize the role we are in and meet the expectations and requirements of that role. If we are to lead an organization, our role is to DEFINE AND DEFEND THE VISION. WE MUST ADDRESS THE ORGANIZATIONAL WHY. THIS IS NOT ABOUT CONSENSUS. IT’S ABOUT OUR FOUNDATION AND FOCUS. When the WHY is defined, it must be made operational by processes, teams and managers. This is the time to seek collaboration and consensus. This is the HOW. (“There is more than one way to skin a cat.”) Diversity in leadership creates chaos. Diversity in teams that operate processes creates order by consensus and involvement. If you as leader or your organization as a group is struggling, you must remove any ambiguity – you must clarify the rules and roles. As leaders, establish the vision, values, mission and standards – THE WHY! Let the managers and their teams design and develop processes – THE HOW. See also: Don’t Lie to Yourself About the Future Diversity in team building and creation of processes is important. It’s necessary to discuss, debate, dissent, define, etc. Once all voices have been heard and the group decides the best processes to achieve the mission, individuals as a group must COMMIT. In process design and development, diversity is great. In our purpose, we must be uniform in our focus and commitment and disciplined in our followthrough. Let these world leaders close this article for me! Winston Churchill, in describing meetings during World War II, said that groupthink leads to “…weak and faltering decisions, or rather indecisions. When you take the most gallant soldier, the most intrepid airman or the most audacious sailor, put them at a table together, what do you get? The sum total of their fears.” Margaret Thatcher said, “Consensus is the absence of leadership.” Lead on! Let’s roll.

Mike Manes

Mike Manes was branded by Jack Burke as a “Cajun Philosopher.” He self-defines as a storyteller – “a guy with some brain tissue and much more scar tissue.” His organizational and life mantra is Carpe Mañana.

Agent & Broker

4 Reasons to Join Agency Networks

While it’s easy to get stuck in the routine of working IN the business, it’s critical for independent agents to also work ON the business.

Rick Fox

May 3, 2019

Agency associations have been around for years, providing advocacy and resources for independent agencies around the country. Also known as agency networks, clusters or aggregators, these organizations play an integral role in the insurance ecosystem, building connections between agencies, carriers and partners to help both grow business and better serve the needs of customers. While many independent agencies have opted not to join these networks, sometimes deterred by the cost of membership, these organizations can provide valuable return on investment. At a recent event, I spoke with a network executive who said his agencies are seeing a nine-to-one ROI for independent agents. This ROI is impressive and further evidence of why agents should consider participating in these groups. The resources and access to carrier and vendor relationships deliver measurable value for independent agencies of every size. At the same time, carriers and vendors are also investing in network relationships. Investment in new programs like Vertafore’s, specifically aimed at championing the independent agent by working with industry associations, clearly underscore the value of these networks as part of the insurance industry. This kind of purposeful investment, putting the right people and the full support of the company behind it, is a strong endorsement of the association model. See also: 3 Ways to Boost Agency Productivity Another hurdle for independent agents is that they’re simply too busy running the agency to investigate new opportunities. But as buyers’ expectations for price, convenience, service and product availability have grown, many independent agents have found themselves struggling to keep pace. They’re so busy scrambling with their heads down to keep up with their current business, they hardly have opportunities to look up and see what’s happening in the market around them. But as competition gets tougher and customers gain more flexibility of options, independent agents can’t afford to keep their heads down. Network membership can help here, too, introducing agents to resources, technology and services that can help them work more efficiently and identify new business opportunities to develop. If you’re on the fence about agency networks or skeptical of their value, here are four reasons you need to make joining one a priority this year:

Access to new carriers and products through aggregation. For small agencies, it can be tough to get appointments with carriers if you can’t support the volume of business they require. Trying to meet the quotas or milestones to keep multiple appointments can be difficult, and some carriers won’t work with agencies if they’re under a certain size. This can lock small agencies out of writing new business or securing new products their customers are demanding. Joining a network lets the independent agencies band together to hold those appointments and feed the appetite of the carrier at a much higher level.
Buying power with vendors. The industry is being driven by technology integration, not only as a means of serving customers’ expectations for a modern, tech-savvy experience, but also for efficiency and workflow productivity for the day-to-day operations at an agency. But those software and solutions can be expensive, especially for the small-volume licenses that small independent agencies would need. Vendors are eager to work with agency networks to offer more value and partnership. The vendors benefit from the access to new customers and agencies can take advantage of the latest solutions that may have been out of their reach if not for the collective power of the group.
Networking opportunities. Keeping yourself glued to the agency 365 days a year can be a mistake. Even when you’re busy serving clients, it’s also isolating you from market trends and developments that your counterparts are eyeing as opportunities. Agency networks offer networking opportunities to meet with and learn from your colleagues, to build relationships that can help solve mutual challenges or share creative solutions or strategies. Whether it’s an annual conference, a workshop group or even just a meet-and-greet, being involved in your industry community can open doors of opportunity through shared wisdom and resources.
Thought leadership and access to expertise. The network itself can be a source of knowledge, resources and expertise on relevant issues like how to run and grow your agency, how to make inroads into a new, niche market or how to manage mergers and acquisitions. Just like it aggregates carrier access and vendor relationships, the agency network can be a tremendous source for aggregated knowledge, providing thought leadership and counsel that can help member agencies grow business and access new markets and opportunities.

When looking for an agency network to join, choose one based on what it can offer to meet your needs. Don’t just consider what it will cost but, more importantly, what you will gain. Ask to talk to other members or vendors as a reference to get a broader perspective. The right network or association will be in a leadership position in the industry to provide information, resources and expertise to help you grow your business. It should work diligently on behalf of its members to build partnerships with carriers, vendors and tech services. See also: Expanding Into Small Commercial While it’s easy to get stuck in the day-to-day routine of working IN your business, it’s critical for independent agents to also make it a priority to work ON your business. The biggest risk to agency success is inertia—simply staying in the same spot. With the rapid pace of technology development, market evolution and shifting consumer expectations, you can’t afford to get left behind. Getting involved in agency associations and networks is a smart investment that can help your business stay ahead of the trends to grow and thriv

Rick Fox

Rick Fox is the vice president of agency associations and networks at Vertafore, where he serves as a liaison for agency associations, clusters and aggregators to ensure they and their members have the right technologies, systems and policies in place to drive success.

Life & Health

Benefit Advisers Must Actually Advise

Benefit advisers need to dial down the reseller role in healthcare and concentrate on imparting guidance to tackle core issues.

Michael McKenna

May 2, 2019

Sales is the name of the game, no matter the industry, but some professions should focus more on providing sound advice and less on promoting new and trendy products. Many benefit brokers fall into that latter category, and I say this as someone who has been in the insurance industry for 25 years. It used to be that group insurance brokers were more transactional. Get a good product at a fair price, provide some service, and your client is generally happy. Today, that same broker must create compliance initiatives, administer COBRA, FMLA, enrollment services, ERISA advice and some human resource functions. This new responsibility requires expertise beyond what's needed to get an insurance brokers license, yet, like most entrepreneurs, we adapt. We must, however, get back to basics. As group benefits brokers, we must turn our attention to the core mission of our profession today. That mission is strategic consultation and education for our clients, addressing the cost of providing healthcare in this country. It is, by far, the biggest driver of the increase in the cost of, and inability to afford, group health insurance. Certainly, maintaining an awareness of professional trends has its benefits, and often a new offering can make a big difference for clients, but advisers need to dial down the reseller role and concentrate on imparting guidance to address core issues. Next to payroll, the largest expense for most businesses is the cost of group health insurance. Yet many benefits advisers continue to go down the same old path by providing information on the same, tired, cost-shifting plans – this despite the fact that these plans's premiums are rising faster than the cost of living. See also: Benefits Advisers: It’s About to Get Real Benefit brokers need to begin educating clients on what is really driving premiums. One significant lesson that should be learned upfront is that joining a large insurance purchasing group is rarely the solution for small to medium-sized businesses, because savings are short-term for most. The dominant problem facing health insurance prices is the cost of providing care. It won’t cost less for a small firm with a staff of 10 for an MRI or maternity stay simply because it is in a pool of 5,000 employees. Although these multi-employer plans may show short-term savings, unless there is a marked improvement in the risk pool, as with every other group collective purchasing arrangement for healthcare, it fails. And, oftentimes these plans are dangerous self-insured arrangements where the employer, and sometimes even the broker, has little knowledge of the potential risk. The need, from my standpoint, is for businesses to embrace measures that can result in less prohibitive healthcare costs, beginning with the use of telemedicine programs not owned by insurance companies. An eye-opening statistic from the American Medical Association indicates that over 70% of all emergency room, urgent care and primary care visits could be handled via telemedicine. This is a cost-effective alternative that will reduce the employers claims cost by a weighted average of $240 to $300 per visit. Offering telemedicine as a benefit not only decreases claims and keeps overall costs down, but the employees are less likely to miss work due to a medical appointment. An independent second opinion program is another avenue to trim costs, yet a mere 19% of health care consumers get second opinions. This is head-shaking as a study conducted in 2014 by the Houston Veteran Medical Center and the Baylor College of Medicine estimated that 12 million people in this country are misdiagnosed annually. The study went on to show a change in diagnosis by nearly 15%, as a result of a second opinion and as high as 26%. The course of treatment is changed an astonishing 70% of the time. An independent medical second opinion program can provide simplified access to high-profile medical centers/teaching hospitals, specialists, etc. in collaboration with a patient’s attending physician team, often for little to no cost. Result: Employees are less likely to miss work due to a misdiagnosis or follow-up appointments. Consider, also, that the third leading cause of death in the U.S. is medical errors. Offering employees a choice as to how they purchase prescription medications is another cost-efficient employer healthcare program. It fosters consumerism by deploying a comparative prescription drug environment and can lower cost for the consumer and the employer, sometimes substantially. Numerous online prescription drug programs can help members identify discounts, coupons and subsidies available for their high-tier prescriptions. Current and emerging technologies aggregate these programs so immediate access to potentially less expensive prescriptions drugs are identified and easily obtained by the patient. Also, some of these programs will have deductible and copayment assistance programs designed to keep people compliant with their medication regiments. Another easy way to reduce costs. Employers need to weigh the worth of group health insurance against self-funding; if choosing the latter, always offer a reference-based pricing option. This plan recognizes that insurance company payments to hospitals can be as much as 300% to 600% more than what Medicare would pay. Reference-based pricing plans might pay the hospital just 50% over Medicare. If an employer or local market isn’t ready for this aggressive approach, there is a solid opportunity to educate about reference-based pricing. See also: Reinventing Sales: Shifting Channels Those of us in the insurance and benefits industry have the responsibility to shed light on strategies that address the real drivers of cost rather than simply regurgitating what we are told are current industry trends.

Michael McKenna

Michael McKenna is founder and CEO of Comprehensive Benefit Administrators (CBA), recognized as one of the largest and most progressive organizations of its kind in the country.

Data Analytics

Product Managers Needed for Analysis?

Some data science teams have matured beyond offering advice and are making products. Do they need a data science product manager?

Paul Laughlin

May 2, 2019

I mentioned, in a debrief from the Data Leaders Summit, the rise of the product manager role within data science teams. This surprised me. I’ve become used to hearing about the need for more data engineers or analysts to complement data scientists. But the focus on product managers and product development life-cycles was a new one. This was not an isolated incident from only a speaker or two. Many leaders confirmed that they had product manager roles. What is going on? In this post, I will share a combination of my initial thoughts and resources I have discovered. I hope to help you decide whether product managers are needed in your team. What Is a Data Science Product Manager? Let’s define what is meant by this new job title. Some data science teams have matured beyond offering advice. Their output was no longer decision support analysis, providing models or insight to influence leaders. Increasingly, these teams were making products. These could be deployable models (for decisions, optimization, categorization) or even entire automated processes. Developing and deploying these into live business operation requires some additional skills. It is to meet that need that product manager roles have evolved. Taken from the historical role of product managers in operational or marketing teams, these roles own a life cycle, from initial innovation (e.g. insight generation sessions) through design and development into deployment. See also: 5 Key Effects From AI and Data Science This article, from the IoT for All blog, helps bring the role to life. It is not prescriptive (as frankly the role is still evolving) but highlights some of the key skills needed. The references to facilitation and communication skills reminded me of the need for softer skills. Those matter across so many data science or analytics roles. But the product manager skillset also reminded me of how I used to define analytics business partners. One key difference is the judgment and knowledge needed to manage a production line and pilots. How Do You Develop Data Science Products? How do product managers and others develop data science products? A number of skills are needed, and the most appropriate development methodology will vary by business. But product managers sound some common themes. I've heard speakers draw on influences from analytics, systems thinking, agile working and design thinking and stress the role of product development workflow. In this article from Harvard Business Review, Emily Glassberg Sands shares a high-level view of how to build great data products. Is This an Opportunity for Other Product Managers? Given the emphasis on product management skills, does this role represent an opportunity for product managers working outside any data or analytics field. My experience with crossovers is mixed, but the data science product manager may be a different case. The mastery of product development and management skills appears to be key. See also: The Entrepreneur as Leader and Manager This interesting blog post from Cohort Plus reads as if aimed at product managers in the technology space but is still a useful introduction for others in such a role. If you are a product manager and interested in making the move into a data science team, this introduction should help (apologies, but posts from Medium will not display snippets). Do You Need a Data Science Product Manager? It would be great to have comments or feedback from both those who see the value of a product manager in these teams and those who think it’s a fad. I’m sure more roles will evolve as these teams mature. Customer Insight Leader blog will keep a weather eye on ones that matter.

Paul Laughlin

Paul Laughlin is the founder of Laughlin Consultancy, which helps companies generate sustainable value from their customer insight. This includes growing their bottom line, improving customer retention and demonstrating to regulators that they treat customers fairly.

Leadership

How to 'Detangle' Your IT Issues

Trying to detangle the spider-web information systems that exist in organizations today is a lot like bargaining with a four-year-old.

Bobbie Shrivastav

May 1, 2019

If you have ever experienced detangling a four-year-old’s hair, you know it is a mess! The amount of fighting and screaming along with negotiations (I will give you ice cream), sometimes threats (no iPad for you) that go into that process can be unbelievable. The situation is not so different a scenario when we try to detangle the spider-web systems that exist in organizations today. Business folks fight with IT, have back-door negotiations with leadership about priorities and engage in countless back-and-forth exchanges of business requirements. Sound familiar? How can organizations cope in a “detangle” situation? Here are three recommendations:

1. Comb through your systems one small section at a time. If you have tried to comb through a large section of tangled hair, what happens? You get stuck, or your comb breaks. If you comb a small section at a time, you could effectively detangle. Take one part of your process, application, module, etc. and determine ways to streamline the operation. “Eat the elephant one bite at a time” to ensure you won’t get stuck in your innovation and transformation efforts or end up in a mental asylum.

2. Use a detangle spray. I love detangle spray! Taking a small section of the hair and applying the detangle spray makes the combing faster. Here is where I would recommend organizations look at outside help. Is there a service like virtual transformation office that can expedite your transformation or innovation efforts? Transformational consultants are of a different breed. They cut through the BS; if they don’t, you don’t have the right one working for your organization. These folks bring outside technology, industry-level perspectives and agile processes to act as a “detangler” in your initiatives. For most organizations, operational needs tend to outweigh innovation efforts. An external perspective can ensure organizations are looking beyond the operations and focusing on innovation.

3. Chop it off. Chopping off the hair was my final resort with my toddler’s hair. I went to the barber and had her hair cut. Why? It was just too painful to continue to maintain. With your spider-web systems, you will come at a point where you have to say good-bye--good-bye to your green screen friends, VB screens from the early 2000s and old funky .asp apps. Are there startups that you can bring to your organization to provide new tech that can eliminate multiple legacy applications? At Benekiva, we pride ourselves on eliminating four to nine systems leveraged by claims staff to process one claim. How many systems are your teams using to complete a task or work unit? You may not be ready to chop everything off, but you can do it gradually. Change takes time.

Disrupting is the name of the game for all organizations. Even if you are a giant company, you have to keep up or you risk going bald, at which point no amount of combing, spraying or chopping will help.

Bobbie Shrivastav

Bobbie Shrivastav is founder and managing principal of Solvrays.

Previously, she was co-founder and CEO of Docsmore, where she introduced an interactive, workflow-driven document management solution to optimize operations. She then co-founded Benekiva, where, as COO, she spearheaded initiatives to improve efficiency and customer engagement in life insurance.

She co-hosts the Insurance Sync podcast with Laurel Jordan, where they explore industry trends and innovations. She is co-author of the book series "Momentum: Makers and Builders" with Renu Ann Joseph.

Personal Lines

Drugged Driving Kills; Why Can't We Stop?

While Americans know that driving after smoking or ingesting marijuana is dangerous, one-fourth of them admit to doing so.

Andrea Leptinsky

May 1, 2019

DriversEd.com has released a new study on the awareness and prevalence of marijuana-impaired driving, finding that while an overwhelming number of Americans have an understanding that driving after smoking or ingesting marijuana is dangerous, one-fourth of them have admitted to doing so themselves. According to DriversEd.com’s 2019 Cannabis and Cars Report, 58% of Americans believe that legalized recreational marijuana use leads to increased danger on roads, and 91% of Americans believe marijuana can impair a driver’s ability. Even so, 20% of drivers admit to driving after smoking marijuana, and 6% admit to driving after ingesting it. This may come as no surprise, as 34 states, District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands have approved a comprehensive, publicly available medical marijuana/cannabis program as of March 2019. Marijuana is more out in the open than it ever has been before, but its accessibility is preceding development of proper oversight. Without correct traffic safety measures in place, the prevalence of drugged driving is growing, as drivers likely believe they won’t get caught, aren’t noticeably driving dangerously or don’t consider marijuana’s side effects to be risky enough to stay out of the driver’s seat. See also: Pledge to Put Your #phonedown According to the Brain Injury Society, significant cognitive impairment begins the moment marijuana is consumed. THC, or tetrahydrocannabinol, is the chemical responsible for most of marijuana's psychological effects. It interferes with the natural communication of cannabinoids between neurons in the brain, especially in the cerebral cortex—which plays a huge role in how memory, thinking and consciousness are affected.

A 2018 Governors Highway Safety Association study, Drug-Impaired Driving: Marijuana and Opioids Raise Critical Issues for States, found that, in 2016, 44% of fatally injured drivers with known results tested positive for drugs, up from 28% just 10 years prior. More than half of these drivers had marijuana, opioids or a combination of the two in their system. The best way to reduce drugged driving, according to Mothers Against Drunk Driving (MADD), is the use of standardized field sobriety testing (SFST), the foundation of impaired driving detection and enforcement for 800,000 law enforcement officials across the country. Some states, however, do not require SFST training for officers assigned to patrol functions. As MADD says: Myths and misinformation are part of the problem. Get the facts—and share them with your loved ones, especially young adults. Why? More than one-third of teens mistakenly believe they drive better under the influence of marijuana. The 2019 Cars and Cannabis survey was conducted online using Survey Monkey. One thousand and sixty-three participants were polled, spanning the U.S., with the U.S. driving population represented by the 997 respondents who, before completing the survey, answered that they have a driver’s license. The demographics of those polled represented a broad range of household income, geographic location, age and gender. This article was originally published on DriversEd.com.

Andrea Leptinsky

Andrea Leptinsky is a 15-year news veteran with experience in community journalism, automotive reporting and traffic safety marketing. She started as managing editor at DriversEd.com in 2017.

Resilience & Sustainability

Some Hope in the Face of the Wildfire Threat

There are lots of reasons why fires get out of control, and it turns out the biggest issue is a lack of real-time information.

Insurance Thought Leadership

April 30, 2019

In 2018, there were over 6,000 wildfires in California alone, destroying well over 10,000 structures, producing over $9 billion in property damage and claiming the lives of at least 88 people. Horrific. But there’s hope. More than 95% of the wildfires in California are controlled within the first 24 hours and are contained to 10 acres or less. In other words, fewer than 5% of wildfires grow out of control and move into day 2, producing most of the devastation. And improvements in technology can help us tackle that 5%.

I say that after having had the privilege of being invited to a workshop hosted by the Gordon and Betty Moore Foundation, in collaboration with the University of Maryland, last week. (Yes, that Gordon Moore, co-founder of Intel and author of what has come to be known as Moore’s law.) The workshop pulled together 28 of the smartest people I have ever met, all committed to curbing the impact of wildfire, not only in California, but also across the globe.

There are lots of reasons why fires get out of control, and it turns out the biggest issue is a lack of real-time information. The best technology available to the commanders making strategic decisions and firefighters in the field gives them information that is usually six to 12 hours old. Fire can do a lot in six to 12 hours.

The workshop identified a number of technologies that could greatly improve the information flow, three of which stood out to me: offerings from Planet Labs, Jupiter Intelligence and Descartes Labs.

Planet Labs has deployed a pearl-like string of shoe-box-sized satellites that provide an image of the entire globe every 24 hours. The image is accurate to about three meters—you won’t be able to pick out a person, but if you’re looking for anything as big as a pick-up truck or bigger, you’re good—and will let firefighters watch for danger.

Jupiter Intelligence provides a supercomputer platform that models potential dangers from one hour to 50 years out and could be used to monitor fires in near-real-time.

Descartes Labs combines data from lots of different sources, including sensors and imagery, and refines that data so it can be used for modeling that can spot and monitor potential problems as well as actual fires.

The folks at the workshop are committed to pulling together these and other technologies to better understand the traits (weather, terrain, vegetation, humidity, wind, etc.) that might signal the right conditions for an uncontrollable wildfire. The group will also integrate technologies and other capabilities to provide firefighters with real-time data about a fire and its movement.

We have written many times in this commentary about how technology is moving insurance and risk management into a predictive and (we hope) preventive role, rather than simply helping us get better at responding after losses occur, and that change will need to extend beyond technological improvements. I learned last week, for instance, that we are probably a decade behind in controlled burns. We should be control-burning about 2 million acres per year to limit wildfires, but we have been control-burning only approximately 100,000 acres a year for a long while. No wonder there is so much fuel to feed those wildfires. (Some environmentalists may push back on the need for controlled burning, but the wildfires seem to have created a new level of realism all around. Unless we’re going to unleash tens of thousands of goats on our forests, controlled burns are the only alternative.)

As always, we in the insurance industry can help. While the data we use for making decisions about risk and pricing may not be the same as what authorities need to prevent or fight fires, there is significant overlap, and we must all work together in this time of acute need.

I’d love to hear any thoughts about what the Moore/Maryland group or we as an industry should be doing in the face of the wildfire threat.

Wayne Allen
CEO

Insurance Thought Leadership

Insurance Thought Leadership (ITL) delivers engaging, informative articles from our global network of thought leaders and decision makers. Their insights are transforming the insurance and risk management marketplace through knowledge sharing, big ideas on a wide variety of topics, and lessons learned through real-life applications of innovative technology.

We also connect our network of authors and readers in ways that help them uncover opportunities and that lead to innovation and strategic advantage.

Agent & Broker

Service as a Differentiator? Hmm

If you find yourself claiming that your agency wins by providing better service, you really need to rethink your message.

Kevin Trokey

April 30, 2019

If only I had a dollar for every time I heard an insurance agency claim, “What really sets us apart from our competition is the level of service we provide.” If I did, I’d likely be writing this blog from the cabin with my 40-foot yacht moored behind my oh-so-big beach house. If you find yourself making this service claim, you really need to rethink your message. If it isn’t downright killing your growth, it is, at the very least, holding you way back. I understand the spirit and intent of the service as a differentiator (SaaD) message, but it’s a total cop-out, and it's doing harm in ways that you never recognize as unintended consequences of the claim. Avoid the bad mojo When promoting their great service, most agencies are talking about how fast they respond to the needs of their clients, helping them fix something that is broken. They only get to demonstrate their supposed greatest value when something has gone wrong. Do you really want every interaction with you and your team to be attached to a negative event? Especially when you are likely the one who advised them to engage with the guilty party in the first place? See also: How to Use AI in Customer Service No wonder they think all brokers are the same This SAAD message is often the go-to play when trying to close a new deal. After you and your competition have all rolled out the same spreadsheet and the same capabilities presentation, you pull out your SAAD card. But guess what? Every one of your competitors is making the same SAAD claim. Think of how ridiculous this play is. There is NO WAY your prospects can experience your service until they hire you and something goes wrong with the plans you put in place. (Sounds crazy just typing it out.) Minimum expectations Perhaps the saddest part of the SAAD message: If brokers don’t provide good (even great) service, what do you think would happen? THEY’D GET FIRED!! And rightfully so. The broker wouldn’t even be meeting the minimum expectations of the client. When you are suggesting someone hire you because you provide great service, you are suggesting they hire you simply because you can meet their minimum expectations. Is this really brag-worthy? Of course not! You know it’s true Yet, somehow this is ingrained in the very fiber of most agencies. We know this is the case because we ask. And, it is this obsessive focus on promoting great service that is holding back your growth. When we take insurance agencies through an analysis to get a clear picture of what is working and isn't working in their business, we always ask, "Would you describe yourself as a sales or service organization?" The answer is almost always an emphatic "service!" Many times, the agencies dislike being thought of a sales organization. Even when the leadership team aspires to be more of a sales organization, there are many on the team who are completely turned off by the idea of selling. See also: Insurance Service Rates Zero Stars "Sale" may be a four letter word, but so is "help." When a sale takes place, it shows that you helped another business see a way to improve its situation. You’ve earned that business' confidence in your ability to help deliver better results. I don’t know about you, but I think most prospects/clients are going to be much more impressed when you promote and demonstrate your ability to help them proactively achieve better results than they are with your promises of great reactive service. If everyone saw themselves as being on the "helping team" instead of getting hung up on the idea of "I don't sell," agencies would have much healthier top and bottom line growth. You can find the article originally published here.

Kevin Trokey

Kevin Trokey is founding partner and coach at Q4intelligence. He is driven to ignite curiosity and to push the industry through the barriers that hold it back. As a student of the insurance industry, he channels his own curiosity by observing and studying the players, the changing regulations, and the business climate that influence us all.

Customer Experience

Who Is Your Customer; How Is the Experience?

The amount of low-hanging fruit with few costs and high impact for both the customer experience and optimized operations is incredible.

Deb Smallwood

April 30, 2019

In today’s digital world, companies have to focus on customers and their experience. No longer is it just about optimizing the business and processing the transaction; the overall experience matters for retention and renewal. It is essential to create a seamless digital experience that is tailored and personalized, based on understanding customers and their needs. The first thing an insurer must do is define who the customer is. Depending on a company’s channel – direct, captive or independent agents – the definition becomes not only complex but political and even cultural and structural. Historically, for many insurers whose channels have been independent agencies, the agent or broker has always been the customer. But more insurers have embraced the reality that the policyholder is also the customer. There is often a debate as to where the CX focus should be: on the policyholder or the agent? I believe insurers need to consider both as customers – different customers, but both customers. In most cases, agents own and manage the relationship with the policyholder, and the insurer provides services to the policyholder. Insurers need to embrace both agent and policyholder and the connectivity of the triad relationship, and how these relationships and connections fuel one another. See also: Bold Prediction on Customer Experience Ease of doing business is the requirement for any insurance customer in today’s digital, connected world. Agents choose where to place the business based on ease of doing business (along with the relationship, product coverages and pricing). There are a few key areas to focus on to improve the agent experience, like providing agents with the right technology solutions and tools to quickly and painlessly quote, bind, issue, endorse and renew. Agents expect it to be fast and easy to understand each insurer’s product and risk appetite and to have clear visibility into the status of all interactions between the agency and insurer – as well as the policyholder and insurer. While the agent may have a personal relationship with the insured, insurers do interact with policyholders: making payments, changing pay plans, asking questions around a final audit invoice, having loss control visits and, of course, experience the whole claims process. The key to providing a really great customer experience for the policyholder includes providing a personalized touchpoint in any channel – whether it is paper, digital or face-to-face – and ensuring communications are easy, accurate, consistent and straightforward. Last, but not least, minimizing or even eliminating the need to call, maximizing the experience when customers do need to call to a one-call-resolution and providing the option to go to the self-service portal are all goals of the transformed customer experience. As we look at the customer experience today, there is tremendous opportunity to transform not only the customer experience but your company, as well. As we work with insurers on their CX transformation journeys, the amount of low-hanging fruit with minimal costs and high impact for improvement to both the customer experience and the optimization of operations is incredible. But first, you must be clear as to who your customer is. Then, declare that your company is on a CX transformation journey. Now, you are ready to move forward.

Deb Smallwood

Deb Smallwood, the founder of Strategy Meets Action, is highly respected throughout the insurance industry for strategic thinking, thought-provoking research and advisory skills. Insurers and solution providers turn to Smallwood for insight and guidance on business and IT linkage, IT strategy, IT architecture and e-business.