Risk Services Of Arkansas - October 2021

Risk Services Of Arkansas - October 2021

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A COWBOY ’S CODE

E ver since I was young, I’ve been fascinated by the mystique Kid.” The best miniseries of all time is “Lonesome Dove.” Combine that with the fact that I actually owned a small cattle ranch in Texas until I moved to Arkansas, and I think that should be enough to convince you that I think cowboys, and the cowboy lifestyle, are pretty cool. I need to clarify that owning a ranch didn’t make me a cowboy — it made me a “gentleman” rancher. According to the experts, the people who worked on the ranch would be considered the true cowboys. However, according to real-life Coloradan cowboy Jerry Sinor, being a cowboy is about more than just working on a ranch. It’s a way of carrying yourself and interacting with others. It’s a way of life that might be worth emulating. In an article that I read in my morning paper, titled “Advice for the next generation,” Jerry laid out 13 principles he called “The Cowboy’s Code.” I found that I agreed with every point that Jerry made, so I thought I would share his Cowboy Code with you, summarized but using his words: surrounding cowboys. Two of my favorite shows growing up were “Gunsmoke” and “Bonanza” (I know, I know, that dates me a little). One of my favorite movies is “Butch Cassidy and the Sundance 1. Treat every woman that you meet with the respect they deserve. Always remove your hat and say, “Pleased to meet you, ma’am,” when you meet or are introduced to a lady. It doesn’t matter what your hair looks like, nor does it matter if this lady is 3 or 150. The rule still applies. 2. Live each day with courage. Be ready to protect and die for your Creator, your family, your friends, or even people you don’t know. 3. Take pride in your work and do every job to the best of your ability. Always show your boss respect, and if your boss isn’t respectable, then ride away. As Penned by an Actual Cowboy

4. Always go above and beyond people’s expectations for you in any given task. Do what needs to be done. 5. Don’t start anything you don’t intend to finish. Thinking carefully before you start anything will save you a lot of time and pain. 6. Be tough but fair. Don’t back down when you know what you believe is right, but also be willing to admit when you’re wrong. 7. Mean what you say. Make sure your yes means yes and your no means no (just like Jesus says in Matthew 5:37). In other words, make sure your word is your bond. 8. Talk less, but say more. Don’t ever use a $100 word where a 50 cent word will do. 9. Love, truth, kindness, and your word are never for sale. Don’t let anyone take these things from you. 10. Know where to set your limits. This can be hard, so it would do you well to listen to the wisdom of those who have come before you. 11. Obey the commandments of the Creator. A good place to start is with the original 10. 12. Never neglect to take care of your horse. If you can’t take care of your horse, then don’t own or ride one. This rule applies to dogs, cats, and even rattlesnakes. 13. Know where evil lives. It’s not some outside force — it lives in each and every one of us. Be aware of that fact and work every day to get rid of it. If you live your life by the Cowboy Code, then it doesn’t matter if you work on a ranch or not — you’re a true cowboy. I hope Jerry’s code resonates with you as much as it did with me.

–Brad Johnson President, Risk Services of AR Specialized Insurance Programs for Specialized Industries. • www.INSURICA.com • 1

THE SALES POWER OF THE INTROVERT When we think of careers suited for extroverts, sales often springs to mind. After all, nothing could be more exhausting to an introvert than having to talk to dozens of people every day and maintaining a positive demeanor to seal every deal.

As the world continues to reemerge from the COVID-19 pandemic, businesses will likely face several different challenges that, without the proper directors and officers (D&O) insurance in place, could mean their businesses will take a serious hit. On top of that, D&O insurance rates have risen dramatically in the past few years, and the market remains hard. There are several reasons D&O insurance rates have gone up in recent years. Primary among them is that society has become much more litigious during that time. Indeed, social inflation has been brought on by a variety of forms of litigation. An increased number of cases alleging sexual harassment and discrimination, spurred on by the #MeToo and Black Lives Matter movements, have put pressure on directors and officers of companies of all sizes for overlooking such reprehensible behavior — especially if that behavior occurred in direct violation of their company mission statements. Similarly, society is also becoming increasingly aware of the impact that many companies’ practices have on the natural environment, leading to an increased number of lawsuits having to do with alleged environmental degradation and decreased quality of life. This puts pressure on directors and officers to conform to various sustainability practices and policies. Finally, as cyberattacks continue to become more common, the responsibility falls to directors and officers to put practices in place to prevent those attacks from happening. All of these factors combined mean that D&O insurance claims have gone up and their rates along with it. In the fourth quarter of last year, AIG, Axis and Everest reported 35% rate increases, despite a steadily climbing direct loss ratio, which was up at 60% (higher than the 10-year average of 55.4%). Fortunately, there may be a light at the end of the tunnel. Market conditions are tightening and beginning to favor the supply side. Plus, some insurers are taking advantage of the hardening market, and some new entrants are able to create greater capacity. D&O insurance is a vital part of ensuring businesses provide appropriate oversight and protect their shareholders, so hopefully, that light at the end of the tunnel will keep getting brighter.

However, a surprising study by the Harvard Business Review (HBR) disputes this belief.

The HBR reports that being an extrovert had no impact on a salesperson’s ability to sell; in fact, some of the negative qualities of being an extrovert, such as bravado and overt friendliness, are more likely to alienate customers. On the flip side, humility and modesty were two traits possessed by those who were 90% better than other sales people in their company. Interestingly, these traits often accompany an introverted personality. The reason, as Entrepreneur.com reports, is actually fairly simple. Being effective at sales does not require a profound skill for speaking or storytelling. Instead, salespeople need to be great listeners. This attention to detail and attentiveness to their subject is often found in introverts. Now, that doesn’t make extroverts bad at sales. Instead, you can harness the power of the introvert and spread the wealth among your sales team by doing the following: 1. Establish Trust: Introverts have a powerful ability to connect one-on-one with whomever they are speaking to. They thrive on personal conversations, wherein they can build a rapport with one or two other people rather than a group. This trait is necessary for salespeople to acquire, as it makes prospects feel safe and heard. 2. Ask Questions : A long spiel about a product or service is overwhelming, especially when the person providing it feels like a total stranger. Before launching into a pitch, an introverted salesperson knows to ask questions, begging the prospect to lead the conversation and push the salesperson into the appropriate action for a sale. 3. Keep It Relational : People remember stories. They want to hear stories of success and failures, often applying the lessons from those stories to their own lives. Introverts can captivate an audience — maybe that’s why so many introverts are also authors — and salespeople have to strike that balance between sharing stories and listening.

For more guidance on how introverts can maximize a sales team, pick up Matthew Pollard’s book, “The Introvert’s Edge.”

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

10-Year- Old Boy Inspires the World TO DONATE THOUSANDS OF BOOKS TO UNDERPRIVILEGED KIDS

Lots of kids love to read. Lots of kids also don’t have a lot of books. That’s why Orion Jean is trying to pool half a million donated books to redistribute to the kids who need them at free book fairs. The craziest part of it all? He’s just a kid himself — only 10 years old. Orion was first inspired to undertake this incredible project after winning a student kindness contest last year. In the video, Orion exclaims, “Kindness is a virtue we can all possess, if we are willing to … so why not start today? Because right now, it’s what we need more than ever.” True to his word, after receiving the award, Orion got to work on a project overflowing with kindness that is very near and dear to his heart: getting books to underprivileged students across Texas. In an interview with CBS, Orion explains why getting books to children is so important.

“Even just for a moment, to go into a new story or a new world and go to places and meet people they never would have [is magical],” Orion said when asked why he had a passion for his project. He hopes other

kids will see it the same way and be inspired to continue giving away books to other kids. That way, they can also experience the power of reading a good story. His project is more than a book giveaway — it’s a catalyst for kindness for kids everywhere.

While half a million — 500,000 — books may seem like an impossibly

big number, it wasn’t long before Orion had received 120,000, and that was at the beginning of August. Since then, that number has no doubt grown. At the same time, Orion’s age

might make it seem impossible for him to accomplish such incredible goals. But, if anyone were to follow his advice and start being kind today, who knows what could happen?

Solution on Pg. 4 Have a Laugh!

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INSIDE This Issue A Cowboy’s Code, Written by an Actual Cowboy page 1 Why You Need Introverts on Your Sales Team What’s Causing the Increases in D&O Insurance Rates? page 2

10-Year-Old Creates Book Drive for Underprivileged Kids page 3

‘The Outsiders’: A Model for Success page 4

TAP INTO A SUCCESSFUL CEO’S MIND How ‘The Outsiders’ Provides an Unconventional Road Map

on a different way to amass success. Thorndike also illuminates how many of these top business minds were quietly outpacing their loud, celebrity-like counterparts. For example, frugality is a major component of their success, while most others view a singular metric as the biggest determining factor in their company’s long-term success. Together, many of these top CEOs often value the human elements of their business, attributing the people they have working for them as one of the most important parts of their company growth. As you read through the various lessons and experiences of these CEOs, you find models emerging. Some of the tactics may work for you, while others prove that unconventional methods were never out of the box to begin with. All told, Thorndike’s “The Outsiders” is a reminder that sometimes the quiet ones make the most progress.

What if you could harness the knowledge and skill possessed by some of the world’s top CEOs — specifically eight of them?

With investment expert and author William N. Thorndike Jr.’s “The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success,” you can. After years of analyzing investments and the companies behind meteoric climbs on Wall Street, Thorndike has compiled stories, lessons, and tactics used by eight CEOs whose methods and beliefs don’t mirror those of other leaders — unconventional leaders like Virgin Group Founder Richard Branson or SpaceX and Tesla CEO Elon Musk, whose companies’ growth speaks volumes for their methodology. Thorndike examines the successes of various business leaders, like pet food company Ralston Purina’s CEO or Berkshire Hathaway’s top leader, to discover what makes these companies so successful, even as they quietly grow. Through his storytelling and deep-dive into the mindsets of these CEOs, Thorndike offers readers various perspectives

You can learn more about Thorndike’s book at Goodreads.com, or you can find it on Amazon.com or your favorite bookstore.

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