I thought this was a clever commercial. Travelers is a good company that does a great job with their advertising. I liked this commercial because every person has prized posessions in their life that they spend almost every waking hour thinking and worrying about. Insurance is a good way to protect the things you value. Hope you enjoy the video!
Wednesday, September 29, 2010
Thursday, September 23, 2010
When Reputation Is At Stake
As a business owner, how often do you think "what would I say if I was the one on the news or the one being interviewed because my company did something wrong?"
This is definitely something to think about. An insurance company can respond by paying claims and helping to rebuild but they won't stand in for you when there is a crisis and the media wants information. What if one of your workers ignored certain warnings and started a fire that burnt down another business or someone's home? What if your product didn't do what it was supposed to do and someone gets hurt? What if one of your workers wasn't trained properly and was injured on the job? Who will be the spokesperson for your company?
There are what if's that apply to every business and it might be worth some time to occasionally consider what they are in your business and how you would respond to them. A reputation can be killed because someone is unprepared to speak up in the event of a crisis and they do it anyway. I found the article below in the Wall Street Journal and thought it was worth sharing.
Warren Buffett famously said that a reputation takes twenty years to build and five minutes to ruin, and that notion is truer today than ever before. Many executives consider their enterprise’s reputation to be their most valuable intangible asset, even more than intellectual property.
And why not? Manufacturers, food processors, retailers, energy companies, service firms: All have a reputation to uphold to their clients, their internal stakeholders and a public that passes judgment on their daily behavior. Every year, we see a major firm suffer a serious test to its reputation. Some fare better than others, riding through an operational setback or public embarrassment with relatively little lasting reputational damage, while others lose customer confidence, strategic partners and market share. The difference is having a good reputational risk management program in place, but this is easier said than done.
A few points to consider:
Embrace enterprise risk management (ERM). Managing a firm’s reputation does not rest with any single department or team, but with the entire enterprise. Any function of the company can impact the overall reputation positively or negatively, whether it is maintaining operational standards, behaving appropriately to meet regulatory expectations or working across departmental lines to ensure that no risk goes unnoticed. In times of reputational crisis, even if certain departments take the lead on handling the situation, everyone in the enterprise has a vested interest in making sure the company’s standing with the public and its stakeholders survives intact.
Have a crisis team in place. A reputation in crisis needs immediate triage by a team that knows exactly what to do and can spring into action the moment it is needed. Typically, this falls to corporate communications, legal counsel and the executive leadership, but in reality, representatives from every element of the enterprise should be represented. Once the plan is designed, it does no good for it to collect dust until the moment of truth. The plan should be rehearsed at least once a year. The more authentic the exercise is, the better.
Engage the media. In many cases, the media will make or break a reputation under fire. This includes traditional media outlets, but also the blogosphere, Twitter feeds and social networking. The key is providing access quickly and in such a way that provides actual content and insight to the situation at hand, rather than pat answers and spin. A contrived response is nearly as bad as no response at all. Bear in mind that the need for fresh content will be intense, especially during the first 48 hours of the crisis. There should also be a continuing plan for media outreach strategies to carry through the first week and first month. Even after the initial media blitz, there will still be opportunities to contribute to the story and to help deliver a happy ending for it. It goes without saying that for many firms, having a friendly and open relationship with the media beforehand can be key in helping engage those same sources when it is needed most.
Make the required sacrifices. Depending on the nature of the reputational crisis, doing what is needed to fix it — including purchasing media time and space — can be extremely costly, especially in the case of a product recall or product tampering situation or in a case where any kind of refund is involved. Do not fixate on these costs; consider them a down payment on the reputation’s rescue effort.
Be a leader first, and a manager second. Executive leadership everywhere is expected by the public to take personal responsibility for their firms’ shortcomings, and this is especially true when a reputation is in crisis. Having executive leaders get out in front of the story and engage the public in a meaningful way is critical. Make sure they are comfortable in front of a camera and under fire from an interviewer. History is replete with gun-shy chief executives who look uncomfortable on camera, which only makes the situation worse. Overall, there needs to be a genuine sense of contrition and a willingness to address the crisis: False sincerity or an attempt to shift blame by the top leadership of a firm in trouble will always compound its reputational problems. Be the leader the public expects and deserves.
Know when to get help. Some firms have reputation problems that are more chronic in nature, or their reputational crisis is more significant than first imagined. In such cases, it always pays to know the firm’s limitations and bring in outside branding experts who can help salve a reputational wound and get the enterprise back in good standing with its most important stakeholders.
This is definitely something to think about. An insurance company can respond by paying claims and helping to rebuild but they won't stand in for you when there is a crisis and the media wants information. What if one of your workers ignored certain warnings and started a fire that burnt down another business or someone's home? What if your product didn't do what it was supposed to do and someone gets hurt? What if one of your workers wasn't trained properly and was injured on the job? Who will be the spokesperson for your company?
There are what if's that apply to every business and it might be worth some time to occasionally consider what they are in your business and how you would respond to them. A reputation can be killed because someone is unprepared to speak up in the event of a crisis and they do it anyway. I found the article below in the Wall Street Journal and thought it was worth sharing.
When Reputation is at Stake
Managing Reputational Risk in an Age of Accountability
By Bill CoffinWarren Buffett famously said that a reputation takes twenty years to build and five minutes to ruin, and that notion is truer today than ever before. Many executives consider their enterprise’s reputation to be their most valuable intangible asset, even more than intellectual property.
And why not? Manufacturers, food processors, retailers, energy companies, service firms: All have a reputation to uphold to their clients, their internal stakeholders and a public that passes judgment on their daily behavior. Every year, we see a major firm suffer a serious test to its reputation. Some fare better than others, riding through an operational setback or public embarrassment with relatively little lasting reputational damage, while others lose customer confidence, strategic partners and market share. The difference is having a good reputational risk management program in place, but this is easier said than done.
A few points to consider:
Embrace enterprise risk management (ERM). Managing a firm’s reputation does not rest with any single department or team, but with the entire enterprise. Any function of the company can impact the overall reputation positively or negatively, whether it is maintaining operational standards, behaving appropriately to meet regulatory expectations or working across departmental lines to ensure that no risk goes unnoticed. In times of reputational crisis, even if certain departments take the lead on handling the situation, everyone in the enterprise has a vested interest in making sure the company’s standing with the public and its stakeholders survives intact.
Have a crisis team in place. A reputation in crisis needs immediate triage by a team that knows exactly what to do and can spring into action the moment it is needed. Typically, this falls to corporate communications, legal counsel and the executive leadership, but in reality, representatives from every element of the enterprise should be represented. Once the plan is designed, it does no good for it to collect dust until the moment of truth. The plan should be rehearsed at least once a year. The more authentic the exercise is, the better.
Engage the media. In many cases, the media will make or break a reputation under fire. This includes traditional media outlets, but also the blogosphere, Twitter feeds and social networking. The key is providing access quickly and in such a way that provides actual content and insight to the situation at hand, rather than pat answers and spin. A contrived response is nearly as bad as no response at all. Bear in mind that the need for fresh content will be intense, especially during the first 48 hours of the crisis. There should also be a continuing plan for media outreach strategies to carry through the first week and first month. Even after the initial media blitz, there will still be opportunities to contribute to the story and to help deliver a happy ending for it. It goes without saying that for many firms, having a friendly and open relationship with the media beforehand can be key in helping engage those same sources when it is needed most.
Make the required sacrifices. Depending on the nature of the reputational crisis, doing what is needed to fix it — including purchasing media time and space — can be extremely costly, especially in the case of a product recall or product tampering situation or in a case where any kind of refund is involved. Do not fixate on these costs; consider them a down payment on the reputation’s rescue effort.
Be a leader first, and a manager second. Executive leadership everywhere is expected by the public to take personal responsibility for their firms’ shortcomings, and this is especially true when a reputation is in crisis. Having executive leaders get out in front of the story and engage the public in a meaningful way is critical. Make sure they are comfortable in front of a camera and under fire from an interviewer. History is replete with gun-shy chief executives who look uncomfortable on camera, which only makes the situation worse. Overall, there needs to be a genuine sense of contrition and a willingness to address the crisis: False sincerity or an attempt to shift blame by the top leadership of a firm in trouble will always compound its reputational problems. Be the leader the public expects and deserves.
Know when to get help. Some firms have reputation problems that are more chronic in nature, or their reputational crisis is more significant than first imagined. In such cases, it always pays to know the firm’s limitations and bring in outside branding experts who can help salve a reputational wound and get the enterprise back in good standing with its most important stakeholders.
Monday, September 13, 2010
Common Insurance Myths
“It’s better to pay small liability claims out-of-pocket rather than report them to the insurance carrier.”
“Statute does not require me to have workers’ compensation, thus you (a higher tier contractor) can’t require it either.”
“I pay him with a 1099. He’s an independent contractor, not an employee.”
“If a workers’ compensation injury is less than a certain amount, I do not have to report it to the insurance company.”
“Flood insurance is only for those in ‘flood zones.’
“If I don’t have anything, they can’t get blood out of a turnip.”
“There is no need to purchase liability limits higher than my net worth.”
“That’s why I buy insurance (no need to implement risk management or loss controls).”
“Corporate status will protect me from liability, I’ll just declare bankruptcy and shut down.”
“Insurance is all the same.”
For more info on these myths read the article here....http://www.mynewmarkets.com/articles/103193/insurance-lies-clients-believe-and-pass-on-to-others
“Statute does not require me to have workers’ compensation, thus you (a higher tier contractor) can’t require it either.”
“I pay him with a 1099. He’s an independent contractor, not an employee.”
“If a workers’ compensation injury is less than a certain amount, I do not have to report it to the insurance company.”
“Flood insurance is only for those in ‘flood zones.’
“If I don’t have anything, they can’t get blood out of a turnip.”
“There is no need to purchase liability limits higher than my net worth.”
“That’s why I buy insurance (no need to implement risk management or loss controls).”
“Corporate status will protect me from liability, I’ll just declare bankruptcy and shut down.”
“Insurance is all the same.”
For more info on these myths read the article here....http://www.mynewmarkets.com/articles/103193/insurance-lies-clients-believe-and-pass-on-to-others
Tuesday, September 7, 2010
Insurance Agents
"There are worse things in life than death. Have you ever spent an evening with an Insurance Agent?"
-Woody Allen
The above quote is a common misperception of how people view Insurance Agents. I thought I would take a minute to address my recent poll results. Hopefully the next one will produce more response. The question was asked.. What are insurance agents likely to be doing when not at work? Unless you know some insurance agents personally it would be hard to say. Let me give my quick insight into the personal life of an insurance agent:
I was introduced to the insurance business by my father who works in my same office right across the hall. If you were to ask most insurance agents why or how they got into this type of work they would very likely tell you that it was a family member. My grandfather started an insurance agency in Ogden, Utah which is run today by my uncle. My father started with them and eventually was offered another opportunity and decided to join another agency. We now have several generations of insurance agents working in the area. I was never pressured into following my father's footsteps into this industry. I think the things that appealed to me were the opportunities to make a good living, the flexibility of an open work schedule, the good people in the business, and the ability to work with and get to know people across all industries and organizations. Now that you have some background info on me, what is the answer to the poll question? Obviously, there is no correct answer. I was looking to gather info on a perception more than anything.
I have been able to meet alot of insurance agents by being involved in the industry. My father has spent the past 25 years or so serving on various boards and committes of the Independent Insurance Agents and Brokers of America and has just completed his year as the National President of this organization. Being involved with this locally and traveling with my father has allowed me to meet alot of people in the industry. In general, these are very good people who although they spend time on the golf course can usually be found reading through policies and contracts, serving in a community or industry organization, and taking classes to further their knowledge. Every Trusted Choice Agent makes a pledge of commitments to their clients which you can read here http://bit.ly/bEQN5V.
It's true, insurance isnt the most interesting or attractive industry in the world. But actually, most insurance agents don't get into the industry because they love insurance. They get into the industry because they are usually very diverse people that like to be involved with many different things. For me, the long and competitive hours of prospecting and presenting are generally rewarded with an afternoon of golf or a couple hours in the mountains or on the lake. The late nights of reviewing a contract or returning emails allow us to take a vacation with the family and be there with our children when they have a baseball game. I also enjoy the Exchange Club and other organizations I participate in that allow me to be involved with my community and give back to those who I can help. Yes, we spend long hours studying insurance concepts and forms but in the end it turns out to be a very good job with many benefits. I love insurance because it allows me to meet and work with many outstanding people and gives me the freedom to do the things that I want to do, whatever those things may be.
-Woody Allen
The above quote is a common misperception of how people view Insurance Agents. I thought I would take a minute to address my recent poll results. Hopefully the next one will produce more response. The question was asked.. What are insurance agents likely to be doing when not at work? Unless you know some insurance agents personally it would be hard to say. Let me give my quick insight into the personal life of an insurance agent:
I was introduced to the insurance business by my father who works in my same office right across the hall. If you were to ask most insurance agents why or how they got into this type of work they would very likely tell you that it was a family member. My grandfather started an insurance agency in Ogden, Utah which is run today by my uncle. My father started with them and eventually was offered another opportunity and decided to join another agency. We now have several generations of insurance agents working in the area. I was never pressured into following my father's footsteps into this industry. I think the things that appealed to me were the opportunities to make a good living, the flexibility of an open work schedule, the good people in the business, and the ability to work with and get to know people across all industries and organizations. Now that you have some background info on me, what is the answer to the poll question? Obviously, there is no correct answer. I was looking to gather info on a perception more than anything.
I have been able to meet alot of insurance agents by being involved in the industry. My father has spent the past 25 years or so serving on various boards and committes of the Independent Insurance Agents and Brokers of America and has just completed his year as the National President of this organization. Being involved with this locally and traveling with my father has allowed me to meet alot of people in the industry. In general, these are very good people who although they spend time on the golf course can usually be found reading through policies and contracts, serving in a community or industry organization, and taking classes to further their knowledge. Every Trusted Choice Agent makes a pledge of commitments to their clients which you can read here http://bit.ly/bEQN5V.
It's true, insurance isnt the most interesting or attractive industry in the world. But actually, most insurance agents don't get into the industry because they love insurance. They get into the industry because they are usually very diverse people that like to be involved with many different things. For me, the long and competitive hours of prospecting and presenting are generally rewarded with an afternoon of golf or a couple hours in the mountains or on the lake. The late nights of reviewing a contract or returning emails allow us to take a vacation with the family and be there with our children when they have a baseball game. I also enjoy the Exchange Club and other organizations I participate in that allow me to be involved with my community and give back to those who I can help. Yes, we spend long hours studying insurance concepts and forms but in the end it turns out to be a very good job with many benefits. I love insurance because it allows me to meet and work with many outstanding people and gives me the freedom to do the things that I want to do, whatever those things may be.
Wednesday, September 1, 2010
What Can A Soft Insurance Market Do For YOU?
For several years now the Insurance Industry has been pushing through a Soft Market. Cycles of growth and decline exist within every industry. In the Insurance world, the soft market is a period marked by low premiums, shrinking profits, high capital base, and fierce competition. For now, we are not seeing any indication of entering into a Hard Market which normally follows. From the Insurance Journal, "Abundant capacity coupled with diminished demand keeps downward pressure on rates. As things now stand, insurance buyers can anticipate another year of favorable insurance prices, although catastrophe claims are always a wild card in the pricing cycle." A widescale catastrophe can cause underwriting standards to become more rigid which causes premiums and profits to increase while competition loosens.
So what can a soft insurance market do for you? The soft market is a very beneficial time for consumers because it is ideal for finding the lowest rates and best coverage on most lines of insurance. This means that now is a great time to be buying insurance! I faithfully market every client's insurance program about 90 days ahead of renewal time because I realize there is alot of competition out there between agents and also insurance companies and now is a good time to find lower rates and better coverage for you! The recession has drawn out the soft market and will likely continue to do so as far as I can see.
I hope this is a beneficial brief look for you of the Insurance industry. Some agents complain about diminishing volume, heavy competition, and losing business. I however see this as a great opportunity to save my clients some money and improve their insurance program; and when the market turns I will continue to do my best at saving money for my clients while finding the best coverage available in the marketplace. Because of these fluctuations, I would rarely if ever allow my clients insurance policy to renew without approaching several markets to be sure we are getting competitive rates and coverage.
So what can a soft insurance market do for you? The soft market is a very beneficial time for consumers because it is ideal for finding the lowest rates and best coverage on most lines of insurance. This means that now is a great time to be buying insurance! I faithfully market every client's insurance program about 90 days ahead of renewal time because I realize there is alot of competition out there between agents and also insurance companies and now is a good time to find lower rates and better coverage for you! The recession has drawn out the soft market and will likely continue to do so as far as I can see.
I hope this is a beneficial brief look for you of the Insurance industry. Some agents complain about diminishing volume, heavy competition, and losing business. I however see this as a great opportunity to save my clients some money and improve their insurance program; and when the market turns I will continue to do my best at saving money for my clients while finding the best coverage available in the marketplace. Because of these fluctuations, I would rarely if ever allow my clients insurance policy to renew without approaching several markets to be sure we are getting competitive rates and coverage.
Subscribe to:
Posts (Atom)