On the Mic with Mike: Selena Kutschera Talks About PFL, DBL and the Benefits of the Broker Dashboard
Working with the top insurance wholesaler in NY gives Selena a chance to make a difference for brokers
Selena Kutschera, DBL Center’s Director of DBL and TDB never actually applied to work at DBL Center. She joined the family when DBL Center acquired competitor Combined DBL, a competitive insurance wholesaler in NY, in 2014.
How she got the job at Combined DBL, straight out of college with no insurance industry experience, is quite a story.
“I found the job listing in the newspaper,” she tells DBL Center owner and president Michael Cohen. “I begged for an interview, but they had already closed out their interviews because they knew who they were going to hire.”
Kutschera didn’t stop pushing for the interview, however, and, ultimately, got the job. Through her hard work and perseverance, she’s become a leader in wholesale TDB and DBL sales.
It was this tenacity that impressed DBL Center founder David Cohen at the time of the acquisition. “That was the kind of personality my father was looking for,” Michael Cohen recalls. “I remember him saying, ‘I don’t know if we’ll get the deal, but Selena will join us.’ We did make the deal and here we are, five years later.”
Read on to learn how Selena Kutschera is helping DBL Center brokers manage the challenges of PFL and prepare for new opportunities in New Jersey.
Then watch the video to find out Selena’s (second) favorite word, what musician she’s not-so-secretly obsessed with, and what she’d be doing if she wasn’t serving the DBL and TDB insurance needs at one of the top insurance wholesalers in NY.
Michael Cohen: What’s the most exciting thing that we’ve done as a team, in your opinion, since the acquisition?
Selena: The program – the Broker Dashboard. Just coming together and building something, changing the game.
Michael: How has that been an upside for you?
Selena: We can track now. We can track the business. We can track what we’ve lost, what we’ve gained, the brokers, who’s writing, who’s not writing. It just makes it easier.
Michael: Can you describe the process we use when we get together and track retention and new business?
Selena: When we look at our book through the Broker Dashboard, we look at what we can keep out of what’s lost. Our cancellations. We know DBL’s a moving target. Your DBL’s come on, they come off, there are non-pays all the time. That’s the first thing we address, the non-pays. Can we get them reinstated? If we can, that puts business back into the books.
Any time coverage is replaced, we want to find out why it was replaced. Was it something we lost? Did the broker lose it? Did they replace it on us, and why did they replace it? We have to analyze what happened—and why—to get that business back.
Michael: What has the feedback been from the brokers since we implemented the dashboard?
Selena: They’re surprised about their non-pays and what’s cancelled and what’s not.
Michael: Everyone thought Paid Family Leave was going to be a home run, but in the beginning, it wasn’t. Why? And what have you been doing to help overcome those challenges?
Selena: It just added another layer of tracking. Who doesn’t want to pay their PFL [rider]? Who didn’t think they needed Paid Family Leave? They pay the DBL; they don’t pay the PFL. That’s really been the issue. Now, we’re getting the complaints that the insured made the payment, but they only paid a portion of it, or they shortchanged it. So now it’s a matter of them understanding how to pay the bills.
Mike: What do you feel is the biggest dilemma in the overall statutory environment? You’re in the trenches and you’re also involved in commissions. What’s an issue for us that’s outside of our control as a wholesale insurance broker in NY?
Selena: I guess what’s outside of our control is just the insureds making payments. That’s out of our control as an insurance wholesaler in NY. Is the $170 [weekly] benefit in New York State for disability low? Absolutely.
What I do find is some employers want to buy up and some employers don’t want to hear it. I agree with the buying up because the reality is the Paid Family Leave is for somebody else—to take care of a baby, child, or family member—and the disability is for yourself. And if you need to go out on disability, why do you need to go out at a $170, when the PFL benefit is $750 and change? It’s $752 [for 2019].
Mike: Are you excited about what’s happening in Jersey? Explain that.
Selena: Absolutely! Jersey just lifted its signature requirement—there’s no more signature requirement to move to a private carrier. So, it makes it easier for us to write this product, as 98% of it sits with the state right now. And the benefit is going up tremendously.
If you’re shopping for a new insurance wholesaler in NY or NJ or need help writing TDB or DBL, let Selena Kutschera and DBL Center help you. Reach out today.
Eligible Employees to Receive 60% of Their Average Weekly Wage under New York’s Paid Family Leave Program
These Benefits Will Start In the Third Year of the Program Starting January 1, 2020 Where the new average annual wage will be $72,860 and a weekly benefit of $840.70 per week
The Department of Financial Service (DFS), New York has announced that the benefits under New York’s Paid Family program will be increased to 60% of the average weekly wage for up to 10 weeks of leave. The decision of increasing the benefits will stay unless the Superintendent of the DFS announces a delay citing non-compliance with Workers Compensation Law 204(2).
New York’s Paid Family Leave program is the most comprehensive program in its category in the entire country. The program, which began in 2018, allows eligible employees to take time off to address important personal matters without worrying about not being paid anything for their absence from work. The three key events for which employees can use these family leave benefits include: to attend to the needs of a family member with a serious health condition, to handle personal matters when a family member is called to active duty in the US Armed Forces, or to bond with a new child. The family leave benefits were 50% and 55% of the average weekly wage of the eligible employees in the first two years of the program.
The premium rate for the family leave benefits is decided by the Superintendent of DFS as stated under Insurance Law 4235(n)(1), which also mentions that these benefits need to be community rated. So the family leave program will offer similar benefits to every eligible employee irrespective of their geographical location, age, gender, or other demographic factors. In addition, the Superintendent establishes the maximum amount that an employer is authorized to collect from employees for Family Leave program.
In 2018, the year the Family Leave program was introduced, 27 insurers offered this program. The number of insurers offering this program has gone up to 29. DFS believes there will be more insurers joining in next year.
The premium rate is the percentage of an employee’s wage. The Superintendent has established that the premium rate for the coverage starting January 1, 2020, will be 0.270% of an employee’s wages each pay period and shall not exceed a maximum annual employee contribution of $196.72.
DFS has reminded all statutory disability insurers are law-bound to offer Family Leave benefits. It has also asked all relevant insurers to submit Family Leave Benefits policy forms and rates by October 1, 2019. Insurers can visit the DFS website for more information on PFL checklist, submission instructions, and model rider.
About DBL Center: The DBL Center, Ltd has been in the insurance industry for more than 40 years. It is an insurance wholesaler that works with insurance agents to underwrite, maintain, and service accounts for them. For more, visit https://insurancewholesaler.net.
DBL Center’s Michael Cohen: New Broker Dashboard App Helps Agencies Keep Business
View the full Broker Dashboard video here.
DBL Center’s proprietary Broker Dashboard app enables DBL Center’s New York-based brokers to track renewals, cancellations, revenue, and commissions on NYS DBL policies with a click.
With 250 brokers now using the Broker Dashboard, and interest from insurance carriers to partner and expand the capabilities of the cloud-based software, DBL Center President and CEO Michael Cohen took a few minutes in his Melville, NY office to explore the history, present, and future of Broker Dashboard. He also hinted at even more advanced technology for brokers and insurance carriers on the horizon.
Where did the Broker Dashboard concept come from?
The broker dashboard evolved mainly from my father, David, Cohen, who was the founder of DBL Center. He always shared two mantras with me: “Nickels, dimes and quarters make dollars,” and “It’s not what you earn, it’s what you keep.”
After he passed away nearly two years ago, I decided to look at his tracking mechanisms with his old-school number two pencil and general ledger, take that ideology, and convert it into our own proprietary digital management system. That ultimately evolved into our broker dashboard, which we’re making available to all our sub agents across New York State.
How has the Broker Dashboard helped DBL Center?
It’s helped us in two ways. The first way has been the growth aspect of it. If I go into a broker’s office who is using the Broker Dashboard, their immediate question to me is, “Why don’t I see exhibit A or this specific policy?”
The answer is: “Well, that’s because it’s not an account we service. But if you’d like us to service that account, you can roll it over. We’ll become the servicing general agent. And you’ll then see it under your broker dashboard.”
The second way has been in helping our brokers to keep accounts and monitor their retention, which results in preserving profits for everyone, including the carriers where we are acting as not only a servicing general agent but a bill collector. Every two weeks we send out a reminder email to track their retention, so they can realize what they’re keeping. This goes back to one of my father’s mantras: “It’s not what you earn, it’s what you keep.”
In what other ways has the Broker Dashboard helped your brokers?
Tracking all their commissions. We are in a nickels and dimes business, and Paid Family Leave has emphasized that point. The Broker Dashboard helps brokers understand the status of all their policies and determines whether a policy is active or cancelled. I’m staying one step ahead of the insurance carriers by letting our brokers know their clients’ status so they can stay on top of non-pays.
Sometimes, if you lose a DBL policy, you might ultimately lose a workers’ comp policy or a major medical policy. I’m all about helping our brokers retain their book of business through us. We have thousands of brokers and we currently insure 1.7 million lives.
How many sub-producers are currently using the Broker Dashboard?
Two hundred and fifty brokers are currently using the app. It can be three users per agency, and if they want more than that we unlock it and for a nominal fee, they can have up to 50 users. But the average right now has been between three and five users per agency.
What response have you gotten from the insurance carriers about the Broker Dashboard?
Two carriers, specifically, showed interest in wanting to partner with us through doing some technological advancements to the Broker Dashboard. Those talks evolved into a software company my business partner and I started called Net Revenue Tracker (NRT).
If anybody wants to learn more about NRT, we will do a future video and blog post about how NRT works to track retention and revenue through cloud-based software.
Are You Selling DBL Coverage and Ancillary Benefits to Your Customers Who Need It?
Coastal Insurance offers tips to expand your book of business with strategic cross-selling of home insurance, DBL coverage, and ancillary products
By David Clausen, Coastal Insurance
If you’re like most P&C brokers, NYS DBL and NJ TDB insurance aren’t your only niches. Most brokers sell a variety of lines, whether it’s healthcare, business insurance, or personal lines of coverage like home insurance.
But you may not be thinking of ways to cross-sell your lines to expand your book of business and increase your commissions without cold calls or prospecting for new clients.
When you get in the habit of consultative selling, which includes getting to know your customers, their businesses, and additional insurance needs they may have, you’ll discover avenues to increased profits.
Mandatory coverage like workers’ compensation and NYS DBL coverage, along with enriched DBL, provide excellent upsell opportunities. Many business owners don’t realize they need this coverage even if they only have a few employees. Even if they know about statutory DBL coverage, they may not recognize the opportunities available with enriched DBL and ancillary benefits.
As their trusted insurance broker, you can help make sure they are protected from nearly any contingency. Chances are, you are already taking some of these steps. But are you closing the deal?
These tips, garnered from years of experience selling home insurance and other personal and business lines to Long Island-based customers, can help you expand your book of business.
1. Look for opportunities to upsell complementary insurance lines by getting to know your customers.
In Coastal’s niche market of home insurance for high-net-worth homeowners, many of our best clients also own their own businesses. This means they need workers’ compensation insurance and statutory disability coverage in New York State.
Ask your customers, “Who is currently writing your statutory DBL coverage?” to uncover opportunities.
With the introduction of Paid Family Leave as a rider to DBL, they might be looking to shop their policy around, since some carriers have stopped providing DBL.
2. Don’t forget about your customers who hire domestic employees.
Most Coastal customers who aren’t business owners are c-level executives, celebrities, and other high-net-worth individuals who may hire domestic employees to help run their households. A lot of people don’t know that workers’ compensation and NYS DBL coverage is mandatory in New York for full-time domestic employees or for domestic employees who live in your home, even if they don’t work a full 40-hour week.
This includes nannies, au pairs, housekeepers, gardeners, chefs, drivers, personal assistants, and anyone else who works for an individual. Even if people may treat their nannies or housekeepers like family, the State of New York classifies them as domestic workers or residence employees – and they need to be insured as such.
There can be hefty fines for failing to provide the proper insurance coverage for domestic workers, not to mention the liability if an employee gets hurts on the job. Brokers are doing a service to their customers by letting them know what employee coverage is required.
As with any job, providing ancillary benefits to domestic workers can also help improve retention rates and reduce sick time.
3. Discuss the potential for ancillary benefits.
Whether your customers are business owners seeking to hire the best employees, or individuals with a team of domestic help, they may not have considered ancillary benefits as a low-cost way to recruit and retain employees.
Benefits like Group Life, vision, and dental coverage are still highly sought after by workers. In a Harvard Business Review study, 88 percent of employees said they would consider accepting a job with a lower salary if the position had better health, dental, and vision benefits than the job with the higher pay.
Explore these possibilities with your customers, and they will look to you as a trusted business resource rather than just someone selling insurance products.
4. Educate your customers about enriched DBL.
NYS DBL coverage provides a bare minimum to help an employee who is ill or injured (while not on the job). DBL pays out just 50 percent of an employee’s salary up to $170 per week for 26 weeks.
Enriched DBL is a powerful retention tool for middle managers who exceed the maximum payout but may not have private disability insurance or a savings account to help get them through a medical emergency.
With the introduction of Paid Family Leave as a rider to DBL coverage in New York, many employers are looking to enrich DBL benefits in order to provide coverage comparable to PFL for employees who don’t have, or plan to have, families or may want a robust benefits package for themselves.
PFL was the big news in the insurance industry in 2018, but many people still aren’t aware of the policy changes. Stay on the forefront, educate your customers, and they will trust you to write their policies for personal and business insurance.
5. Offer the best rates by bundling coverage.
When you take advantage of The DBL Center’s carrier relationships, you can bundle lines to provide your customers with the best rates for DBL, ancillary benefits, and more.
Why would they go to any other broker if you’ve positioned yourself as a one-stop-shop for their business and personal lines of insurance coverage?