Risk Services Of Arkansas - September 2022

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OUT OF THE ASHES How the Great Fire of London Created the Insurance Industry

In the early morning of Sept. 2, 1666, a fire broke out in a bakery on Pudding Lane in London. Before long, the fire spread, and it seemed like the entire city was engulfed in the flames of what became known as the Great Fire of London. This historic event has been remembered as one of the worst disasters in London’s history, but from an insurance perspective, the Great Fire of London is nothing short of enlightening. To fully understand the destructive nature of this fire, there are a few things we need to look at. The first is the materials used in the construction of the majority of houses at the time. While stone and brick buildings did exist, they were used solely by the rich and wealthy. The rest of the population built their houses using wood, the walls were lined with a flammable tar-like substance called pitch, and the roofs were nothing more than straw. These buildings caught fire quickly, and flames were able to rapidly spread from house to house. The other thing worth observing was the layout of the city. London had been a Roman settlement for centuries and had become quite crowded. The city was surrounded by a defensive wall, which made expansion more difficult. This meant that they had to build up rather than out. The higher up they went, the larger each floor became until there was virtually no space between houses.

As the fire spread, the citizens tried a handful of methods to try and quell the fire. They would dump buckets of water on the fire, but the fire spread so quickly that this tactic was ineffective. They tried to pull down houses that were in the fire’s path by using hooks, but the flames still ravaged the area. Eventually, they used some of the excess gunpowder left over from the English Civil War to blow up houses before the fire could reach the Tower of London. This proved to be the key to stopping the fire, but it took the entire city’s efforts. Even the King of England was seen trying to calm the fire by using buckets of water at one point. Ultimately, the Great Fire of London ended up destroying over 13,000 houses and some historic locations, including the Royal Exchange and St. Paul’s Cathedral. But there were some positives that came from the tragedy. The year before the fire, the city of London actually struggled through an outbreak of the Bubonic Plague. Many historians actually credit the Great Fire of London with eradicating the plague in the city, since it destroyed so much, including many of the rats residing there. The Great Fire of London also helped create the insurance industry as we know it today. Before 1666, the only insurance that was available was marine insurance, which insured ships and their goods as they sailed across the seas for trade or exploration. A group of individuals gathered together and started the very first insurance offices shortly after the Great Fire of London. Interestingly enough, one of the benefits of having fire insurance back then was the access to fire brigades. Fire brigades were essentially private fire departments owned by insurance offices that would go and put out fires in homes they insured. Over time, they started to gather information, keep statistics and analyze the data, which helped to create the actuary profession as well. When the insurance industry started after the fire, there were no government mandates, and there was no government intrusion. It was just individuals and groups figuring out how to satisfy the needs of the community with the goal of bettering society. There was no central planning necessary. Capitalism turned a local tragedy into a global industry.

–Brad Johnson President, Risk Services of AR

Specialized Insurance Programs for Specialized Industries. • www.INSURICA.com • 1

VALUE-BASED SELLING IS AN UNDERUSED TACTIC HOW CAN YOU USE IT IN YOUR BUSINESS? You may use sales tactics to persuade potential customers to purchase something from your business. But this strategy won’t work for some people. They may question the price of the product and how it benefits them. Instead, try value-based selling to provide greater value to your customers than your competitors. This is an underused sales tactic because many businesses focus on the price instead of the value their product or service offers their customers. What is value-based selling? Value-based selling presents the value your product or service creates for your customers instead of focusing on the price. Placing your customers’ needs before your revenue will generate a long- term and reliable relationship with them. How do you implement this strategy in your business plan? 1. Know your clientele. Understanding your customers’ needs drives better sales results. If you’re familiar with them, you can find what they’re looking for to add value to their lives. While researching, understand their background, industry, demographics, and pain points. If you’re attempting to sell to other businesses, look at their website and social media pages to see their company news and updates. 2. Ask questions. Your prospects and customers want their voices heard, and asking questions is the best way to show them you’re listening. Encouraging them to tell you what they want and need has two benefits. First, it increases your customers’ confidence in your service and reassures them you’re interested in their situation. Second, you’ll discover how your product or service benefits your clients and why they should purchase from you. 3. Be genuine. Every interaction must be meaningful. Show your prospects that you care about them and don’t want to waste their time. Speak to them as if you’re friends. You don’t want them to feel like they’re talking to a salesperson but a trusted advisor. People buy items based on how it makes them feel. So focus on the benefits you can provide and place yourself in more of an expert role rather than a salesperson. Although value-based selling requires more work, it’s ultimately worth it. Not only will you show how valuable your service is, but you will build lasting relationships with your customers, which will bring more retentions and referrals. So, give this strategy a try and watch your business grow!

Whether you own, manage, or simply work for a business, workplace safety is incredibly important, especially if you work in the construction industry. The Occupational Safety and Health Administration (OSHA) reports that 1 in 10 construction site workers are injured every year. For every 600 near misses, there are 30 minor injuries, 10 serious injuries, and one fatality. That’s why it’s so important to learn from any near misses that your business experiences. OSHA and the National Safety Council define a near miss as an “unplanned event that does not result in injury, illness, or damage but had the potential to do so.” This also includes the moments leading up to an accident to highlight the importance of prevention and awareness. Encouraging your team to report incidents as well as near misses is the best way to be proactive in preventing workplace injuries. One of the best ways to encourage your team to report incidents is by making the forms easy to fill out and accessible to everyone. The entire team can learn from the mistakes that were almost made when someone reports a near miss. But some employees may not feel comfortable reporting near misses because they don’t want to be singled out, so it’s essential that these reports can be submitted anonymously. Another strong way to improve overall workplace safety is to keep a catalog of relevant topic- specific videos so your team can continue to refresh their knowledge. If they’re unsure how to handle certain situations, they can always reflect back on previous training they have watched. Additionally, if you’re in a position of authority, you should be hosting talks with your team to continually update them on reported near misses or accidents as well as important safety information that they may need. It is a team effort to create a safe work environment for all employees, not the sole responsibility of one person. Once your team has started to foster a safe workplace culture and near misses and accidents are reported accurately, you will begin to notice fewer incidents and an improved focus on safety.

2 • www.INSURICA.com • Specialized Insurance Programs for Specialized Industries.

Can’t Find Time to Work Out During the Week? Try the Weekend!

Study author Professor Yafeng Wang of Jiangnan University in China stated, “We found they had similar all-cause and cause-specific mortality, suggesting that when performing the same amount of physical activity, spreading it over more days or concentrating it into fewer days may not influence outcomes.” The Centers for Disease Control and Prevention recommends that American adults aged 18–64 get at least 150 minutes of moderate exercise or 75 minutes of vigorous activity a week, but only 23% of Americans get this much exercise. For those that struggle with finding the time to get that much exercise, this study proves that you only need to carve out an hour or two out of your weekend for exercise, and you will get similar health benefits as those who exercise every day.

Between work obligations, family time, and everything else that comprises our busy schedules, it can be difficult to find time to go to the gym for exercise even once a week, let alone every day. However, new research suggests that exclusively working out on weekends boosts your health almost as much as working out every day. Research published in JAMA Internal Medicine found that those who exercise in one or two sessions during the weekend lower their risk of premature death as much as those who spread their exercise throughout the week. Both groups are less likely to pass away due to cardiovascular disease, cancer, diabetes, and other killer diseases than those who do not exercise regularly. Researchers studied more than 350,000 American adults for over a decade and looked at an earlier analysis from more than 63,000 Brits by another team to come to this conclusion.

Solution on Pg. 4 Have a Laugh!

Specialized Insurance Programs for Specialized Industries. • www.INSURICA.com • 3

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INSIDE This Issue The Great Fire of London’s Impact on Insurance page 1

3 Strategies for Value-Based Selling How to Create a Safer Workplace page 2 The Health Benefits of Weekend Exercise page 3

Finding Your Audience Is Key page 4

So Many Social Media Outlets

Which One Should You Use?

A social media presence is essential to connecting with your company’s customers and prospects. But do you need every media platform to engage with others? Each outlet meets different needs and interests, so it’s crucial that you analyze which one will net the most engagement for your business. In fact, the demographic of your targeted audience will help you decide. Let’s look at the three main outlets customers use to discuss their needs and wants. Facebook is primarily used for family-friendly content. Recently, there is an added focus on business ads for networking purposes, which can help you attract more leads. The demographic on Facebook mainly focuses on individuals who are 45 years old and older. This platform is great for businesses targeting seniors, like those in the home improvement and estate planning industries Instagram was popularized by teenagers, but now over half of its users are between the ages of 25–34. Small businesses use this outlet to share upcoming events, sales, and products because of the new business feature on the app. Relationship-building is the sole focus for companies on Instagram because you can engage with customers through stories, live videos, and interactive polls.

Twitter is the best place to have personal conversations, brainstorm, and share news. Over 59% of Twitter users are between the ages of 25–49, and 56% have completed some college courses or have a degree. Some businesses use Twitter to see what others are saying about their services and resolve any issues that occur. This is a great way to build trust with your customers and ensure that they know you care about their experience with you and your company. If you want to learn more about the different demographics for each outlet, go to Blog.Hootsuite.com/Social-Media-Demographics for more in-depth analysis and statistics.

4 • www.INSURICA.com • Specialized Insurance Programs for Specialized Industries.

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