timely news and information from acuity

AGENCY FOCUS page 4
• EMPLOYEE FOCUS page 6 • ACUITY ’s Disaster recovery page 7
TIMELY NEWS AND INFORMATION FROM ACUIT Y
DECEMBER 2013
THE
BIG
MO
MENTUM
$3B Assets,
100K Commercial
Policy Milestones
page 2
w w w.acuity.com
WITH MOMENTUM building,
ACUITY ROLLS to
ALL-TIME HIGHS
IN ASSETS AND COMMERCIAL POLICIES
ACUITY is on a roll,
and we show no
signs of stopping. Our momentum has propelled us past two
remarkable milestones: 100,000 commercial lines policies
written and $3 billion in companywide assets.
“In 2003, we hit the milestones of $1 billion in assets and
50,000 commercial policies in force,” says Ben Salzmann,
President and CEO. “Never did we dream that just a
decade later we would triple the first number and double
the second.”
Grassroots Growth
For nearly half our 88-year history, ACUITY had been
almost exclusively a personal lines insurer, writing just a
small amount of auto and property insurance for businesses.
In 1969, ACUITY created our commercial insurance
department and began offering a full array of coverages.
“Reaching 100,000 policies is a tremendous milestone
for a company writing commercial lines for the length of
time ACUITY has,” says Ed Warren, Vice President Commercial Insurance.
Today, ACUITY is a sophisticated commercial market,
writing accounts of all sizes and across many industries.
However, our bread and butter is still mainstreet business.
“Compared to other commercial carriers that overlook
smaller accounts, we’re willing to insure businesses of
any size,” says Warren. “Our secret to success is
perseverance and a consistent approach and appetite.”
Expanding Assets
Reaching $3 billion in assets is not just a measure of
ACUITY’s size, but also an important indicator of our ability
to meet obligations to policyholders.
“Our $3 billion in assets assures policyholders and agents
that ACUITY is based on a solid capital foundation,” says
Wally Waldhart, Vice President - Sales and Communications.
“Additionally, our growth in assets demonstrates that we are
trusted by an ever-increasing number of individuals, families,
and businesses for their insurance protection.”
ACUITY has averaged a double-digit revenue growth rate
over the past 14 years despite insurance market fluctuations and
global economic downturns. During that period, we have also
expanded our geographic reach, doubling the number of states
in which ACUITY does business.
Sustained Success
Although our long-term growth is remarkable, equally
important is that we’ve sustained our industry-leading
profitability, recording a combined ratio nearly 10 points
better than our peers over the past dozen years.
“Our growth and profitability couldn’t have been
possible without the dedication of agents in our long-time
states and the faith of new agents as we’ve expanded
geographically,” says Waldhart. “We appreciate everything our
agents are doing, and we know that we have the staff, resources,
and strategic plan in place to sustain our momentum.”
•
nfocus
The Big Momentum
by the Numbers
ACUITY ’s Top 25
Commercial Classes
In Millions of Dollars
1 Trucking
14 Heating/Air Conditioning
2 Carpentry
15 Buildings – Lessors’ Risk
3 Masonry
16 Store NOC
4 General Contractor
17 Auto Repair
5 Grading/Landscaping
18 Metal Goods NOC
6 Excavation
19 Building Maintenance
7 Plumbing
20 Manufacturing NOC
8 Street and Road
21 Painting
9 Electrical
22 Sand and Gravel
10 Apartments
23 Restaurants
11 Concrete Products
24 Offices
12 Contractor NOC
25 Drywall
ACUITY SponSorS
BUCkeT LIST BASh
13 Garbage Collecting
for pALLIATIve CAre
On October 12, ACUITY sponsored the “Bucket
List Bash” at our corporate headquarters to support the creation of Aurora
Sheboygan Medical Center’s palliative care program. Over 600 attendees
enjoyed the opportunity to participate in many bucket-list-themed
activities both at the bash and in the weeks leading up to the event.
Ticket sales and auctions during the Bucket List Bash event combined
Find
the
with pre-bash events and sponsorships to raise over $160,000 in monetary
Our November was at our Bucketcontributions.
List Bash, hidden
a picture
All in
funds
will go toward startup costs associated with
of the event on page 12. Many sharp-eyed readers found the icon,
forming a new palliative care service to benefit patients and their families
and the winners of $100 chosen from correct entries are:
in Sheboygan County.
Lora Cobb
St. Croix Valley InsProceeds
Services from
Hudson,
WI also add to those previously tallied in the
the bash
Cathy Schaefer
Ingram Insurance
AgencyHealth
Inc Hamilton,
OH held in July, which generated over $20,000
ACUITY
Challenge,
Denise Blankespoor Security Savings
Agency
Inwood,
IA
for the Vince Lombardi Cancer Clinic Palliative Care Fund in Sheboygan
County. To date, the fundraising initiative has put Aurora over two-thirds
To enter this month’s contest, find the hidden elsewhere
of thewith
wayitstoward
in this issue, then send an email
locationitstototal fundraising goal.
contest@acuity.com by December 31. This
contest is open to agency staff only.
•
december
2 0 1 3
PAG E 3
THE GENERAL AGENCY MAINTAINS
NEARLY 100-YEAR COMMITMENT
TO CUSTOMER LOYALTY
The General Agency Company
knows that providing great customer service isn’t an end in
itself—it’s a means to building customer loyalty.
“Customer loyalty is superior compared to customer
service,” says Bonnie Hayward, Operations Manager.
“Loyalty is something you can’t provide—you have to earn it.”
The General Agency Company builds customer loyalty
by exceeding expected levels of customer service and
communication, having a highly educated insurance staff
including a dedicated claims service department, and providing
expansive risk management products and services. Additionally,
the agency has developed a customer-specific service platform,
where the customer and agent collaborate to determine the
most appropriate services and care the agency will provide,
with the results continually monitored to ensure the program’s
effectiveness.
“We have a 92 percent retention rate in personal lines
across more than 2,500 customers and an 88 percent retention
rate in commercial lines,” says Hayward. “Our customers
stick with us.”
Success of Specialization
Founded in 1915 and headquartered in Mount Pleasant,
Michigan, the General Agency Company is one of the state’s
largest insurance agencies. The agency’s growth has always
included specialization.
“Rather than trying to be all things to everyone, our agency
has developed a marketing program that allows us to be
selective and hit our target markets,” says Hayward.
In the 1920s, the General Agency Company established
a niche in the oil industry, capitalizing on the business boom
that happened after oil fields were developed in central
Michigan. Today, the agency targets dozens of niches, including
convenience stores, schools, restaurants, and septic contractors.
The General Agency Company has secured
the endorsement of many state and national
associations as well. “Our
involvement in associations allows
us to be known on a statewide
or even nationwide basis,” says
Hayward. “We’re known as
The General Agency Company’s
commercial lines staff and executives
nfocus
a company that association
members can trust, and those
members provide excellent
referrals to others in their fraternity.”
Future Focus
AGENCY
OF THE
MONTH
Today, the General Agency Company
is owned by Robert Weisenburger, President;
David Weisenburger, Vice President; and John Olson,
Vice President. The agency has established itself as a premier
“one stop” insurance center that focuses on all lines of
insurance and related services, including commercial property,
casualty, specialty lines, personal lines, group benefits,
individual life, health, premium financing, payroll outsourcing
consultants, long term care, estate planning, and insurance
consulting.
The agency is also known for more than insurance.
“We’re recognized for our volunteer culture, and we work to
foster a philosophy of voluntarism with all our staff—from
the management team throughout our employee ranks,” says
Hayward. The General Agency Company and its staff support
dozens of local charitable organizations, and the firm has
been publicly recognized for its efforts, including earning
the Ambassador Award from the Michigan Association of
Insurance Agents.
The agency’s reputation has helped it achieve an overall
closing ratio of more than 60 percent, with some producers
as high as 80 percent. Focusing on the fundamentals that
build customer loyalty will help propel the General Agency
Company’s future growth and success.
“We take pride in that we have adapted and flourished
over this long period of time,” says Hayward. “It is a testament
to the character and quality of our employees and the
organization as a whole.”
•
nfocus
ACUITY CONTINUES TO LEAD THE
INDUSTRY IN ACORD AWARDS
ACUITY received three awards at the 2013
In 2013, ACUITY earned:
• The Most Compelling Case Study Award for demonstrating the cost and time savings of ACUITY’s integration, using ACORD Standards, with agency management systems and comparative raters.
• The Property & Casualty Straight Through Processing of Data Award, which is given to those companies that
have automated the life cycle of the data utilizing ACORD
standards and forms.
• The Property & Casualty Commercial Lines
Download Award for
our support of quality Commercial Lines Download.
“We will continue to
use and support ACORD
standards to enable the ways
that agents want to do business
with ACUITY,” Ruffalo says.
ACORD Implementation Forum for delivering agents
technology solutions that support real-time business
capabilities in both personal and commercial lines.
ACORD presented just over a dozen awards in total to
P&C carriers this year, making ACUITY’s recognition by
ACORD in 2013 particularly significant. Since 2000,
ACUITY has received 60 ACORD awards—more than
any other property-casualty insurer in the world.
“ACUITY has led the way in insurance
automation by providing processes that
make independent agents more efficient
and profitable,” says Neal Ruffalo,
Vice President - Enterprise Technology.
“We have been active in developing
systems that utilize the ACORD standards
since 2000 and have proven the value of
utilizing these standards in terms of cost
savings—both in time and money—for
ACUITY and our partner agencies.”
•
NEWEST CE COURSE TO FEATURE
FIRST-HAND LOOK AT AGENCY FRAUD
In June 2010, the FBI raided the Wausau,
look at insurance fraud and the forces that cause it, including an
Wisconsin, offices of Manson Insurance after an inside tip
interview with one of the agency staff convicted in the case.
alerted them to a massive fraud scheme.
“It was a classic case of greed,” says
The FBI’s investigation uncovered
Shane Paltzer, General Manager - Sales,
that millions of dollars in policyholder
who has been involved in creating the content
premiums and funds were channeled
of the video production. “Fraud occurs when
into private accounts over the course of
greed meets opportunity, and that’s exactly
many years. Ultimately, three agency
what happened at Manson Insurance.”
staff were convicted and sentenced on
The course serves not only as a
various felony counts.
cautionary tale, but also as instruction
The agency’s story is the basis
for agents on how to put practices in
for ACUITY’s upcoming online CE
place to prevent employee fraud, including
course, Ethics: Three Agents in Prison.
ways that ACUITY can help. Agents also
IT’S A THIN
GRAY LINE.
Featuring information from people who
earn CE credit for completing the free
STAND?
had first-hand knowledge of the crime,
online course. Launch of Ethics is scheduled
COMING WINTER 2014
Ethics will provide agents an in-depth
for early next year.
WHERE DO YOU
NEXT IN A NEW SERIES OF CE CREDIT COURSES
For All That Matters
w w w . a c u i t y u . c o m
ACUITY
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december
2 0 1 3
PAG E 5
BRIAN PEACOCK
BRIAN PEACOCK
HELPS GIVE KIDS
of INJURED WORKERS A CHANCE
Having spent the majority of his career in
workers’ compensation claims, Brian Peacock has seen the
devastation that can happen to the families of workers who
are seriously injured or killed in a workplace accident.
“The loss of a father, mother, husband, or wife is a
tragedy in and of itself,” says Brian, General Manager Workers’ Compensation at our corporate headquarters.
“Additionally, the loss of a wage earner in the household can
seriously impact college plans that children have and makes
it difficult for them to pursue their educational dreams.”
Giving Kids a Chance
Brian learned about Kids’ Chance while attending
an industry conference. Kids’ Chance is an organization
created to provide scholarships for college and vocational
education to children of workers who have been fatally or
catastrophically injured in a work-related accident.
“What really hit home at that conference was hearing
scholarship recipients talk about their lives, the impact
of their parents’ injuries, and how the assistance of Kids’
Chance made a real difference for them,” Brian says.
Shortly after returning from the conference, Brian learned
that a grassroots effort was underway to start a chapter in the
state, and he immediately became involved. “The effort just
mushroomed, and very quickly we had nearly a dozen people
interested in getting a group off the ground,” he recalls.
Brian is Treasurer and one of the founding board
members of Kids’ Chance Wisconsin, formed in August
2012. “On our board, we have insurance carrier staff,
managed care professionals, attorneys—all different
people who have seen the far-reaching impact of
serious accidents on families,” Brian says.
To provide scholarships, Kids’ Chance Wisconsin needs
to raise funds, and that’s where the bulk of the group’s efforts
have been focused to date. The first fundraiser in the spring
of this year was an evening with well-known NFL referee
Ed Hochuli, who frequently speaks to organizations that
benefit children and veterans. That was followed by a golf
outing in fall, and the group is currently planning events for
winter and spring, including an educational conference.
Getting the Word Out
Kids’ Chance Wisconsin has created a scholarship
committee to develop the criteria for awards and evaluate
applicants. The group is currently seeking applicants
and working on getting the word out to eligible students.
This will involve working with the state’s Department of
Workforce Development, attorney firms, insurance carriers,
medical providers, and other companies in the industry that
have daily involvement with injured workers. Brian also
plans to get the word out through ACUITY.
“Our claims representatives know how traumatic losses
are, and they want to help,” Brian says. “Putting families
of injured workers in touch with Kids’ Chance is an
additional step we can take to help families recover.”
Nationally, millions of dollars have funded
thousands of Kids’ Chance scholarships over the past
20 years. Brian is looking forward to helping grow that
number even more.
“Making my living in the insurance industry, I
look for ways to give back, and I know others do too,”
he says. “When something traumatic happens, this is
another way that people can reach out and help.”
•
Brian and NFL referee Ed Hochuli at the
Kids’ Chance Wisconsin spring fundraiser.
nfocus
ACUITY UNDERTAKES MAJOR UPGRADE TO
DISASTER RECOVERY
CAPABILITIES
In early November, ACUITY broke
ground on a building renovation to our disaster recovery
hot site in Saukville, Wisconsin. We will add a dedicated
data center that will significantly enhance our ability to
restore operations in the event of a disruption at our
corporate headquarters.
“ACUITY has always had computing capabilities at
the hot site, but we are now scaling those capabilities in
a state-of-the art facility that will include nearly identical
equipment and capacity compared to our headquarters,”
says Neal Ruffalo, Vice President - Enterprise Technology.
Plans call for project completion by July of next year.
“We will continue to build out the new data recovery center
with mainframe and storage capability for the next two
years,” says Sheri Murphy, Vice President - Services and
Administration. “The facility will include dedicated power
and networking capability, new generator capacity that can
be operated independently at the time of a disaster, and
other infrastructure to ensure the facility can help restore
ACUITY’s operations quickly.”
Tried and Tested
Additional capacity will allow ACUITY to restore
operations more quickly. “Today, we can get essential
systems up and running within minutes, but some ancillary
systems can take days,” says Ruffalo. “Our goal is to be able
to bring everything up within minutes and hours.”
On a regular basis, ACUITY tests our partial and total
disaster recovery capabilities in a live, full-scale exercise.
To fully simulate an emergency, participants in the test do
not know of the exact date or scenario being tested.
“The unknown aspect of the test is essential to its
effectiveness,” says Laura Conklin, Vice President Business Consulting. “Also, over a third of the participants
in each year’s test will not have gone through an
exercise before.”
“Planning and testing create a significant expense, but
the peace of mind having a disaster recovery facility and
plan are essential to fulfilling our mission as an insurance
company,” Murphy says. “We owe it to our staff, agents,
and customers to restore operations as quickly as possible
if disaster strikes.”
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december
2 0 1 3
PAG E 7
JOAN RAVANELLI MILLER
NAMED ACUITY VICE PRESIDENT
ACUITY has promoted Joan Ravanelli Miller to
General Counsel and Vice President - Human Resources.
Joan served as House Counsel at ACUITY from September
1989 to January 1994, when she was promoted to General Counsel/
Governmental Affairs. She served in that capacity until June 1995,
when she left ACUITY to pursue her master’s degree and Ph.D. She
has spent the past eight years at the Marquette University Counseling
Center, where she was a psychologist and training coordinator.
In November, Joan rejoined ACUITY to serve as General
Counsel. Prior to her initial tenure at ACUITY, she was a
partner in the law firm Nash, Spindler, Dean & Grimstad in
Manitowoc, Wisconsin. Joan earned several degrees from Marquette
University, including a bachelor’s degree in history, J.D. (Doctor
of Jurisprudence) in law, a master’s degree in clinical
psychology, and a Ph.D. in clinical psychology.
Word of
Mouth
The post that had truckers talking pictured
the 2013 U.S. Capitol Christmas Tree being
loaded onto a truck in Washington state.
Some wondered how the tree was secured
to the rig, while a few joked that new
trucking regulations might delay the
tree’s arrival. (The tree was installed
at the Capitol on schedule!) This post
was viewed by over 23,000 people.
See more at
•
facebook.com/acuityingear.
•
nfocus
Kristina Barroco
and her family took their collection
of ACUITY gear on a recent trip to
WHERE
IN THE WORLD IS
ACUITY?
Kanab, Utah. The family visited
the Coral Pink Sand Dunes to ride
the mountains on their quads.
Kristina is Account
Executive at The Arizona
Group in Gilbert, Arizona.
Would you like to win $100? Send a picture of
you or your family with ACUITY logo gear visiting
an interesting location to infocus@acuity.com and
include a brief description of Where in the World
ACUITY has been. If we use your picture, we’ll send
you $100! This offer is open to all employees of
ACUITY and our independent agencies.
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december
2 0 1 3
PAG E 9
AREA inSIGHT
ACUITY ’s COMMISSIONS HELP
FULFILL OUR MISSION
TO AGENTS
ACUITY’s mission statement reads,
“To protect and enhance our customers’ financial wellbeing.” Our customers are not just our policyholders;
they are also our agents, and part of our mission is to
protect their well-being as well.
Fulfilling that mission requires being an easy
company to do business with, providing products and
services at competitive pricing, and using proactive
agency management practices to help our independent
agent partners optimize their performance with ACUITY.
It also requires paying fair and competitive commissions.
How well are we fulfilling that mission? Each year,
Ward Group compiles its Agency Management and
Compensation Practices study. Year after year, Ward
has found that ACUITY’s base commissions for new
and renewal business stack up very favorably to
peer companies.
In fact, the study reveals ACUITY pays 50 percent
more than our competitors in profit-sharing commission
as a percentage of our written premium.
We also continually review our commission
structure, including studying other companies’ plans
and having our actuarial
staff analyze many
models for our profitsharing commissions.
These models
contemplate growth
and profitability
forecasts, and
accuracy is
critical given the
large amount of
money involved.
We also use a
fairer method of
calculating contingent
commissions, considering all cost drivers and not
just loss ratio.
Commissions are the single largest expense
item ACUITY incurs as a company. However, the
investment in our distribution channel is well worth
it, as evidenced by our continued strong growth and
industry-leading profitability.
BY JOHN KAUTZER –
General Manager - Sales
•
ACUITY NAMES NEW WORK COMP MANAGER
Katie Schmitt is promoted to Manager - Workers’ Compensation at
our corporate headquarters. Katie joined ACUITY in 2012 as a Senior Workers’
Compensation Claims Representative.
A native of Port Washington, Katie graduated from Cardinal Stritch
University with a bachelor’s degree in business administration. She began
her professional career in financial services at M&I Bank before entering the
insurance industry as a Workers’ Compensation Claims Representative for
West Bend Mutual. In 2011, she joined Safway Services as a Claims Analyst,
overseeing workers’ compensation claims throughout the U.S. and Canada.
•
nfocus
Q. There are a lot of ready mix concrete businesses in
my area. Is this something that ACUITY will insure?
A. Yes. Ready mix concrete is one of our top classes.
Q&Acuity
Q. Why is ACUITY successful in insuring ready mix operations?
A. The exposures vary from account to account, but ACUITY can bring
our loss control, claims, and underwriting skills as well as our product
portfolio from trucking, manufacturing, and contracting business
segments to the discussion on ready mix operations.
Q. How does ACUITY develop additional expertise for
ready mix concrete?
A. In addition to our in-house expertise, ACUITY is also a
member of the National Ready Mixed Concrete Association
and participates in local associations in order to better
understand the needs of this business segment.
•
MPOSSIBLE
inSURABLES
A TANGLED
WEB
We’re not exactly sure what all these
wires are for—and we’re not sure that the property owners
know either. It’s a web of wiring that spells trouble for
anyone unfortunate enough to try to untangle it.
ACUITY won’t insure this hazard, but we will name
it our Risk of the Month.
•
december
2 0 1 3
PAG E 1 1
CARMELLA MOON
CONNECTS WITH CUSTOMERS
Customers of
Marshfield Insurance often visit
the agency simply to talk to Commercial Customer Service
Representative Carmella Moon.
“Carmella has a positive personality that makes her
enjoyable to work with on an agency, company, and customer
level, so it’s not uncommon for clients to stop in just to catch
up with her,” says Nick Arnoldy, Principal at the
Marshfield, Wisconsin-based agency. “She’s
not only a diligent agent, but more
importantly, a great relationship builder,
and the best part about her character
is that it’s genuine.”
Carmella has been with the
agency for nearly 7 years and has
13 years of prior experience in financial
services. She has found that listening is
the most important characteristic of good
customer service.
“You need to listen to make sure you understand what
customers’ needs are and to protect what they have worked
for,” she says. “I also
believe that it’s always
important to remember
the Golden Rule and treat
people the way you would
want to be treated. I truly
believe that not only is this a
good way to conduct business,
but also an excellent way to live our
lives. When we do that, not only will good customer
service become natural, but good relationships will be built.”
Carmella enjoys helping customers and working with the
staff at Marshfield Insurance. “We have wonderful people here,
from the producers down to the support staff. We’re a great
team who strives to make sure our customers are taken care
of,” she says. “We all understand that having a good
relationship with the customer and with the underwriter
can make all the difference.”
Congratulations to Carmella Moon, an Outstanding
Service Professional!
OUTSTANDING
•