1. 2016 WAMIC Directors Seminar
Strategic Planning
Dreams to Delivery
2016 WAMIC Directors Seminar
Madison WI –November 9, 2016
Wausau WI – November 16, 2016

2. Kimberly Ersland Reinsurance Regional Marketing Manager Grinnell Mutual Reinsurance Company “Flaming enthusiasm, backed by horse sense and persistence, is the quality that most frequently makes for success.” --Dale Carnagie
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4. Disclaimer
NOT LEGAL ADVICE
Variance by company

5. Objectives Developing a business plan
Establishing & Monitoring Benchmarks
Evaluating Organizational Risks
Importance of Disaster Recovery & Business Resumption

6. WHY?

8. Strategic Planning How well do you know your company?
Why are you in business?
In what areas are you most profitable?
Who are your customers?
Who do we want our customer to be?
What are consumer expectations
How do we meet those expectations
What products/services set us apart from our competition?
What were your goals for 2016?
How viable are we for the future?
What is the future of our industry?
Can we survive doing “What we’ve always done”?
How do you make competent decisions that keep your mutual financially strong and viable?

9. What Strategic Planning is NOT
It is not another task for management
It is not a one time, short meeting endeavor
It is not a check mark in the “to be completed” column
It is not eliminating all risk

10. Participants Facilitator Board of Directors Management Team Members
Optional: Agent &/or Consumer representatives
Keep to manageable number of participants

11. HOW?

12. SWOT Analysis
Strengths
Weakness
Opportunities
Threats

13. Critical Issue Method THREE QUESTIONS
1) What are the critical issues facing our organization today?
2) What are the desired outcomes of those issues?
3) What do we need to do to accomplish the desired outcome?

14. 1) Critical Issue Company Situation Market Consumer Agency Force
Opportunities
Weaknesses
Strengths
Threats
Company Situation Market Consumer Agency Force

15. 2) Desired Outcome Financial Strength Product/Service
Technological Advancement
Will be unique to company

16. 3) Plan to Accomplish
Path
Resources
Financial
Talent
Responsibility

17. WRITTEN PLANS, PLEASE!!

18. 7 Sections of Business Plan
1) Executive Summary
Highlights
Mission & Objectives
Keys to Success
2)Company Description
Board of Directors
Company History
Past Performance
Location & Facilities

19. Business Plan… 3) Products & Services
Description of Products & Services
Competitive Comparison
Sales/Promotional Literature
Technology
Future Products & Services Planned

20. Business Plan… 4) Market Analysis Market Segments Market Analysis
Business Associations
Agency Force
Reinsurance

21. Business Plan… 5) Strategy & Implementation Marketing Strategy
Positioning
Pricing
Promotion
Growth Strategy
Strategic Alliances
Services & Support

22. Business Plan… 6) Management Summary Organizational Structure Manager
Team Members

23. Business Plan… 7) Financial Plan and Projections Historical Data
Projected Data
Analysis of Financial Data
Trend Analysis
Ratio Analysis
Premium forecast
Total
By policy/product type
Personnel Plan

24. Benchmark Definition Establishing Monitoring
Point of reference from which measurements can be made
Establishing
Monitoring

25. Key Performance Indicators for Mutual Industry
Gross Written Premium/ Surplus
Net Written Premium / Surplus
Loss Ratio
Expense Ratio
Combined Ratio
May be unique to your mutual and goals

26. Plan Act Adjust Review Measure & Evaluate progress TIMELINE Benchmark
Analysis
Resource Alignment
Implementation
Strategy & Goal Setting
Plan
Act
Adjust
Review

27. Disaster & Recovery
Are all disasters storm related?

28. Business Resumption Loss of building Temporary Location
Contact Information for
Board of Directors
Team Members
Reinsurance
Vendors
Contractors
Utilities/Services
Method of mass communication to policyholders
Data Access/Availability
Have a written plan that has been reviewed with board, management and staff

29. Business Resumption… Employee Vacancy
Death/Illness/Injury
Termination
Other
Written Succession Plan is Imperative
Associated Agreement
Temporary Hire
Key decision makers

30. Business Resumption… Catastrophic event
CAT provider agreement prior to event
Reinsurance Notification
Staff
Notification influx
Claims processing for dissemination to adjusting team
Claims payments
Updated forms manual to provide to all adjusters
Notice to policyholders in effected areas
Have a WRITTEN PLAN that team members can refer to during the event.

31. Business Resumption… Technology/Cyber Attack Be proactive!
Cyber security training
Cyber insurance policy
Coordinate with vendors and have a written plan in the event breach or attack occurs.

32. Identification of Organizational Risks
Strategic Planning
Business Planning
Business Resumption Planning

33. REMEMBER

34. Kimberly Long Ersland 608.584.5383 kersland@gmrc.com