John Strong, M.D., brings a passionate vision to stalwart veteran Bankers Financial Corporation.

St. Petersburg, FL, October 30, 2011 – Dr. John Strong is a man on a mission. Having served on the board of directors of Bankers Financial Corporation for 8 years, he stepped in as Chairman and CEO of the St. Petersburg-based holding company a year and a half ago with a clear goal: He is committed to leading ground-floor-up, meaningful change across the organization.

Given that the insurance industry itself has changed little in word or deed in almost two centuries, the task he envisions is not a small one. Additionally, in a business climate where “inspiring change” may be dismissed as buzzwords, some might question why the leader of a successful NC radiology practice is attracting top insurance industry talent to St. Petersburg as he sets out to reenergize and restructure this home-grown, family-owned Florida business.

Bankers gained visibility in the 1980s as a niche insurer working closely with independent agents. The company was one of the first admitted into the federal government’s National Flood Insurance Program. By 2002, Bankers ranked as the nation’s second largest flood insurance carrier. Today, Bankers not only has insurance but also surety and business solutions divisions. Strong’s reorganization of the company into these three business segments was a structural move laying the foundation for the cultural shift he envisions.

“The heart of this 35-year-old company is strong and good,” Strong says, sounding like the physician he is. “My job is to now take all that’s good about it and empower its people, our associates of all levels, to begin the shift from a knowing organization to a learning organization. We will move from assumptions to analytics, blending intuition and data to become an employer of choice, a place where decision making power resides with those closest to the front lines of the work.”

Former colleagues of Strong’s speak of a man who is always on the move and never satisfied with mediocrity. Holly Messick, Strong’s administrative assistant at the radiology practice, says “John is constantly reading, always thinking, and looks to those around him to do the same. His commitment to help others grow and develop into positions of leadership took this practice to a level few medical practices achieve.” Dr. James Maxwell, clinical leader of the practice while Strong led its business concerns, puts it this way, “John is a transformational rather than transactional leader. He sets the example, and has an extraordinary trustworthiness…with him there are no hidden agendas, just honorable, straightforward action.”

Dr. Eric Mansell, President of Greensboro Radiology, fondly recalls his days working with Strong. With clear affection for the man who “taught me many, many things,” Mansell likens Strong to a benevolent tornado, saying “we’d jokingly describe him blowing through the halls, from office to office, papers flying in his wake, as he shared one of his ideas. John has a relentless enthusiasm and a remarkable lack of cynicism. He’s what I think of as a ‘connector’ – bringing the right people and right ideas together.”

When asked if he finds it odd his former colleague is now head of an insurance, surety and services business, Mansell quickly replies, “No, not at all. John is someone who will succeed. Period. He is always looking out for the business, but also fearlessly helping others develop. He is a powerful personality, yet very real and very earnest.”

Strong has altered Bankers’ structure as he works to “connect” Bankers to outstanding talent. Bankers Chief HR Officer, Michael Lovett, explains what drew him to follow Strong to St. Petersburg. “John engaged my consulting firm in NC, so I got to see him in action as we worked closely together. What strikes you is the man’s passion. He works with a solid moral and ethical code – walks the talk, in other words – and inspires people in a way only true leaders can. When John asked me if I knew of anyone who might be interested in heading Bankers HR work, I said ‘Sure…me.’ I wouldn’t leave my own business for just anyone. That’s how much I believe in John. He will take the best of what Bankers is and build on that to help it become the best that it can be.”

Strong recently lured Bill Martin away from his role as SVP of national insurance powerhouse Farmers to serve as president of all of Bankers’ insurance operations. “I am excited to join Bankers at this dynamic time in the company’s history,” Martin said. “John’s passion and leadership have positioned Bankers to take an important step forward, and I am glad to be a part of it.” Echoing a common sentiment in Bankers corporate headquarters, he added, “John invites people to join him in creating a vision based on his determination and sense of what is right. He doesn’t simply lay out a plan then look for functionaries to execute it.”

Billy Nutt, the newly named head of Bankers’ Business Solutions group, is also a fan, having joined the Bankers team after three decades with AIG. “The sense of innovation and entrepreneurship embodied by the company is tangible. Add to that John’s personal integrity, insights into potential areas of expansion and commitment to success, and I was hooked. John is a great listener, and eagerly seeks feedback – even criticism – and incorporates it into his plans. The world is full of executives whose egos prevent them from being open to good input, regardless of the source, but not John Strong.”

Brian Kesneck, a 26-year veteran of the company and now president of Bankers Surety division, thinks that Strong’s attractiveness to established industry players and innovators is obvious. “You can’t spend time with John and not be affected by his energy. I have seen him light up a brainstorming session, basically infecting everyone in the room with his emotion and sense of purpose.”

Another new Bankers recruit is board of directors member Ted T. Devine, founder and CEO of 1World Sports. Devine is no stranger to the national insurance scene, having served Aon Corporation, the world’s largest insurance brokerage firm, as President of Aon Risk Services and as CEO of Aon Re. Prior to that time, Devine spent 12 years as Director at McKinsey & Company, working to improve the performance of Fortune 500 companies. “John can, and will, lead this company into exciting new territory,” he says, “leveraging existing strengths and discovering and developing new ones.”

“Thousands of books have been written about what makes a great leader, “concludes CHRO Lovett. “What John brings to the table is the real deal…no one else is speaking this intensely about the future of this industry and the promise it holds. John will not stop until Bankers reflects his passion, made concrete as a tech-focused company that educates consumers and designs and builds customized products for them.”

As those who know John Strong assert, a visionary is more than a boss. And in this case, an MD is more than a CEO – he’s a magnet for talent.

In a previous post, I spoke about the insurance policy as a contract, no different than any other contract: it transfers duties and conditions from one party to another. As adults, we commonly enter into contracts of one kind or another, insurance being just one of many.
Now, let’s explore the duties and conditions and the intricacies of the policy in greater detail, staring with the “intent” of an insurance policy. In simple English, the intent of the insurance contact is that we will provide insurance – pay for covered losses – in return for the premium and compliance with applicable provisions of the policy.

Enough of the legal talk, let’s dissect the policy.

The typical homeowner’s policy has two sections. Section I provides the property coverage and Section II provides liability coverage. Each section is unique in its coverage and holds separate “duties and conditions.”

A big misconception about property coverage is that the policy covers any and all damage to the structure. Too often, we claims personnel hear the expression “then why do I have insurance?”

Simply put, Section I of the policy is designed to cover fortuitous events that are “sudden and accidental” in nature. The homeowner’s policy was never designed to be a “maintenance” policy – it typically contains exclusions of coverage for damages caused by normal wear and tear and lack of maintenance. I know, I know, it sounds like more jargon and terms to struggle with, “fortuitous this” and “sudden and accidental that.” Let’s break it down:

A water heater bursting without warning is “sudden and accidental.” Roof shingles that are 15 years old and deteriorated by the extreme Florida weather and need replacing are not “sudden and accidental.” A vehicle slamming into the dwelling is “sudden and accidental” (At least I hope it is!). A decaying subfloor caused by moisture and condensation is not “sudden and accidental.”

A possibly misleading part of the policy in Section I under Perils Insured Against: “We insure against risk of direct physical loss to property described.” It’s easy to interpret that to mean that we insured against any type of physical loss to the described property. BUT reading the next paragraph, you’ll see that “We do not insure, however, for loss, excluded under Section I.” Yep, there are exclusions. I know we all hate exclusions, but they do serve a purpose. Exclusions are not loopholes. Ultimately, exclusions serve to keep the premiums low and affordable. Now don’t laugh – think what the premiums would be if the policy also provided upkeep to your property! That’s never been the intent. Think back to “fortuitous” and “sudden and accidental”. Those are the phrases that pay!

I’ll share more as we continue to dissect Section I next time around, and we’ll delve into other policy language that can be convoluted —there sure is enough of it! (Speaking of, “fortuitous” in insurance means “by chance or accidental;” in everyday usage its means “fortunate.” Tricky, huh?)

When we began working to update our website, introduce this blog and help bridge the gap between people who buy insurance and people who sell insurance, I knew it would be a great challenge. Introducing change into an industry that hasn’t changed much in the last fifty years is no small task.

Today, I am happy to report a lot of exciting things are happening as we learn to communicate better about our business and its practices and products.

Michael Maslansky, noted author and strategist, is coming to our annual Hurricane Season Forum in November. As our keynote speaker, Michael will share with insurance agents, carriers and support staff the thoughts the outlines in his powerful book The Language of Trust.

Maria Umbach, innovation leader, consultant and See Through Insurance guest blogger, is leading the charge to help our industry understand the communication styles of Gen Y, showing us how we must adapt to and change for the next generation of consumers if we are going to remain relevant. Her work focusing on Flirting with the Uninterested highlights the need to examine the language we use to match the experience of those we talk to.

I sense a lot of change in the air, and the hope that comes with it. Please join us in the conversation about insurance. We are here to listen to you.

Home security is always on our mind here at Bankers Insurance Group. Staying protected means more than getting a homeowner’s insurance policy – it’s about keeping theft from happening in the first place.

Here’s our top 5 ways to secure your home for under $100.

Door Security Bar

These bars offer a simple and low cost solution to secure the doors to your home. Supplying protection from hundreds of pounds of force and even vibration activated intrusion alarms these sub-$50 products offer one more way to protect the major traffic areas of your home.

Wedge Alarm

Don’t want a security bar in your entranceways? These small wedge shaped alarms screech when disturbed. Though these alarms won’t prevent unwanted guests from gaining access they are loud enough to scare off intruders and easy to set up.

Motion Activated Flood Lights

Simple motion activated outdoor floodlights shed light on loiterers while going easy on your wallet. Make sure you install these easy to deploy lights near doors and access points on the outside of your home. They’ll also help you find your keys in the dark (or avoid tripping on those pesky steps).

Dummy Security Camera

Security cameras are an excellent deterrent to crime, but costs are prohibitive and equipment maintenance requires a small fortune. These “dummy” cameras are made with the same outer casing as the real thing minus the costly electronics. Many even feature motion activated LED lights. Placed at key entrances these solutions provide another convincing deterrent.

Man’s Best Friend

We went there… A well-trained furry companion can be one of the best security measures you can take. Adopting an animal in need of a home is as simple as going to your local shelter, and although it will cost you more than $100 over time, it’s a worthwhile investment. Make sure the breed you choose is not excluded under your insurance policy or banned by your neighborhood association.

I hail from the world of Management Consulting, which quite possibly will go down in corporate history as the single most confounding marketing ploy ever conceived for young, hungry college graduates. “What’s that, you say? You’re gonna let me fly four times a week, live out of a suitcase and off room service, develop closer relationships with car rental agents and hotel receptionists than I have with my family, work 160 hours a week, obtain a Masters in Microsoft Powerpoint and get to tell the world I’m ‘advising clients’? Where do I sign?  Oh, my soul too?  Sounds good.”

So yeah, I needed a change. I was fortunate enough to be made aware of an opportunity to join Bankers, which at the time I’d generally understood to be in the Insurance business. Granted, I then knew a sum total of zero about Insurance.  Not really exaggerating, either – I’d seen the car insurance commercials with the President from “24” (who also played the voodoo designated hitter in Major League, right?), the cavemen who I guess were selling insurance, and the little talking lizard. But I literally didn’t know much else.

But – as I’d mentioned before, it was time for a change. Plus – I thought, “I mean, how hard can it really be? It’s freaking insurance.  You pay some money, if something goes bad, you get a check – boom.

I was wrong. To the newcomer, it’s pretty darn complicated. The lingo alone is enough to drive one to madness – carriers, reinsurers, PML, at-risk, non-at-risk, TIV, MGAs, TPAs, mayonnaise, Willie Mays. Not to mention all the regulatory complications, various distribution models, product variability, etc, etc. This is supposed to be my full time job, and it seems confusing – so I can appreciate how confusing it probably seems to folks outside the insurance business. So how have I been getting by so far?

Well, for one thing – relying on the experts to translate for me. The good news is, there are people out there who actually understand this stuff – and are willing to translate for normal people like you and me.  Also, I try to read the basics like our See Through Insurance blog.

So, if you find yourself needing to make sense of Insurance – take heart.  Believe me – it’s not you; it’s the industry.

With the recent incendiary activity in Texas, See Through Insurance is taking a look at the largest wildfires of the decade. These fires scorched thousands of acres and homes, causing billions in property damage and in some cases loss of life. Lesson learned: wildfires are no laughing matter.

Wallow Fire
The intrastate wildfire created chaos and panic in 2011 when it burned over 500,000 acres in Arizona and New Mexico. Over 6,000 people were evacuated. The fire is now known as the worst in Arizona state history.

Evans Road Wildfire
In 2008 a peat fire started in Eastern North Carolina during an unusually dry season. Over 41,000 acres and three months later the fire was extinguished, making it one of the worst wildfires in recent memory.

Bastrop County Complex Fire
The worst fire in Texas state history burned through over 1,500 homes causing untold property damage across 34,000 acres. This 2011 fire qualified as national emergency status and federal aid was approved to assist in the relocation and rebuilding efforts.

If we (insurance carriers) are going to make sense of the property and casualty insurance industry, the educational process must start with you (the consumer) – understanding what you purchased from your local independent agent.

The first obvious answer is that you purchased financial security for you and your family should a catastrophic event occur.

The next obvious answer is that you purchased peace of mind, knowing that you are protected from common everyday occurrences such as water and fire loss. (Or, maybe the peace of mind comes from knowing you are protected if an injury occurs on your property, or your dog bites the mailman and you get sued.)

Now, here’s the most important part: the part about what you purchased and didn’t even realize you were purchasing.

Few consumers actually know that the insurance policy is a legal contract. (Contracts are legally binding and enforceable agreements that contain the duties and obligations of all parties to that contract.)
You purchased the conditions, the duties, and the obligations that come with the insurance policy. We sold you conditions, and duties, and obligations that come with the insurance policy.

That’s right! We sold you a commitment and you purchased responsibility.

So…your question is What responsibilities did I purchase?

Well, simply put and with no intention of condescending, the first step in being responsible is reading your policy. The insurance policy does not provide absolute financial security or absolute peace of mind. But you may never know that… until you read your policy. How can you augment your policy with the necessary riders /endorsements unless you read and understand what you purchased?

As an experienced claim professional, I would be retired by now if I had a dollar for every time policyholders shared that they have never read their policies.

Unfortunately, these comments generally come after they experience loss and find out the loss is not covered under their policy, but could have been covered through other means – had they read the policy.

Please understand, I am not bashing or blaming you, the consumer; rather, I want to help further educate and inform you. We as insurance professionals have not always done the best job of speaking clearly and providing you with information that is in plain English. We all know education is free, but not always easy. Too often, we the carrier and you the consumer learn only after something has hit us in the pocketbook.

Which reminds me of the purpose of these blog entries: We want to help you keep your money in your pocket through better understanding of the insurance contract and what you can do to prevent loss.
Check in with us here as we explore the insurance contract deeper. I’ll speak to the duties and obligations of the policyholder in greater detail. Let me help educate you on what the insurer’s duties and obligations are.

We have commitments to you we have to keep and want to keep. I am confident that as we continue to share ideas and thoughts, you’ll know how to better protect your property and valuables, and we will insure a better risk.

It is no secret that we want to retain you as a customer. The true goal we want to maintain you as partner!

Claims Corner, brought to you by Bankers Insurance Group, covers one important and often overlooked point about insurance and risks we face every day. Our experts help you make the right choices and avoid common pitfalls when dealing with insurance. Read the weekly tip and join the discussion in the See Through Insurance blog comments, on the Bankers Insurance Group Facebook page or on Twitter.

It’s hard to believe people forget devastating storms and the destruction they cause. Yet every year thousands of people seem to be in a state of denial. Here’s a supporting poll and video featuring former Florida Governor Charlie Crist at the National Hurricane Conference (yes, we have hurricane conferences in Florida).

Footage from the flooded communities along the Mississippi River serves as a poignant reminder. It’s almost unthinkable that an entire community might be gone forever. Our thoughts are with those affected by the floods and our hope is that we can learn from our experiences to contain future natural disasters. Check out the video and share your thoughts by commenting below or on Twitter using hashtag #riskymonday.

#riskymonday, brought to you by Bankers Insurance Group, covers one important video highlighting the risks we face each week. Watch the video and join the discussion in the See Through Insurance blog comments, on theBankers Insurance Group Facebook page or on Twitter using the hashtag #riskymonday.

As a 27-year veteran of the property and casualty insurance industry, I never felt the need to pay attention to all the politics. My job is to oversee insurance claims. But lately all I’m hearing about are sinkholes, rate issues and public adjusters. To keep on top of it, I started tuning into the discussions about Senate Bill 408. (Senate Bill 408 brings comprehensive and overdue change to the Florida insurance industry, attracting new carriers to Florida and restoring integrity to the claim process.)

Never in my wildest imagination did I expect to learn how many problems we face as an industry, and how the people entrusted to solve the problems don’t really know what’s going on. In simple terms, the politicians don’t understand the issues, the lobbyists can’t explain the issues, and the consumer exaggerates the issues. I am not letting the insurance carriers off the hook either, as we certainly contribute to the mayhem with many of our actions.

Now comes the tough part. How do we fix the problems that many don’t understand, and others can’t explain? Of course education is the answer, but how do we reach politicians when we are not their constituent? How do we reach lobbyists when we are not their client? More importantly, how do we reach the consumer and gain their trust when we have disappointed them so many times?

Let’s start by being honest and open and sincere and let’s discuss the myths that plague the industry. Maybe it’s too late for this year, but the sooner we get it right, the sooner we all benefit. Let’s get insurance back to where it needs to be: a true service industry. Let’s re-connect with you, the consumer, and exchange ideas and thoughts. After we better understand the issues and exchange points of view, we can bring the politicians and lobbyists back into the fray. We may never agree on the issues, or the solutions, but let’s make sure we understand each other and the intent of the insurance policy.

This is my introduction to social media. Please join me as I take on the myths that plague our industry. Follow me as I address sinkholes, fraud, Public Adjusters, and other pertinent topics. Join me for open discussion and let’s educate each other.

Don’t forget, the people who work for insurance carriers are consumers just like you and we want what is best for our families, too – just like you!

As a Vice President at Bankers P&C Insurance Companies Steve Strus has worked in the insurance industry for more than 20 years and has earned his AIC Designation from the Insurance Institute of America. He began his career as a claims representative for Republic Insurance Company in Chicago. Steve received his Bachelor of Science in Criminal Justice from St. Xavier College in Chicago.