2017 IIAI Fall Viewpoint

EMMETT J VAUGHAN INSTITUTE RECEIVES INTERNATIONAL AWARD

FALL 2017 • VOLUME 35 • ISSUE 4 INDEPENDENT INSURANCE AGENTS OF IOWA

INTERVIEW WITH TERRY FRIEDMAN, CPCU 2017 CONVENTION HIGHLIGHTS 2017 IIAI CONVENTION AWARDS FULL CIRCLE BIG “I” TRUSTED CHOICE® GOLF TOURNAMENT WHAT WOULD YOU DO IF YOUR AGENCY HAD A DATA BREACH? POLITICS OF INSURANCE

IIAI 112TH PRESIDENT TERRY FRIEDMAN, CPCU 2017 Convention Highlights

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PRESIDENT’S REPORT Another Successful Convention September marked the 111th IIAI convention, and once again, it didn’t disappoint.

Independent Insurance Agents of Iowa 4000 Westown Parkway West Des Moines, Iowa 50266 (515) 223-6060 • FAX (515) 222-0610 800-272-9312 (In-State only)

Terry Friedman, CPCU Page 5

NATIONAL DIRECTOR’S REPORT

Advertising Editors

Emmett J Vaughan Institute Receives International Award

Melissa Meiners & Nicole Peffers

This past summer, Dana Ramundt, President of The Dana Company, Past President and Past National Director of the IIAI and current Business Director of the Emmett J Vaughan Institute of Risk Management and Insurance traveled to London, England to attend the 53rd annual Global Insurance Forum.

BOARD OF DIRECTORS President Terry Friedman, CPCU - Dubuque

President-Elect Tim English, CIC - Dyersville

Treasurer John Dalton - Council Bluffs

Terry McDonald, CIC Page 9

SPECIAL FEATURE

Terry McDonald, CIC - Iowa City

Meet Independent Insurance of Iowa’s 112th President – Terry Friedman, CPCU

Directors

Page 11

National Director

Steve Madsen - Marshalltown David Rowley, CPCU, CIC, AU - Spirit Lake Scott Wirtz - Emmetsburg Luke Horak - Washington Lottie Miller, CPCU, CIC, AAI, CISR, CPIW, AAM, CRIS - Cedar Rapids Chris Gentry - Ollie Dave Walters - Audubon Steve Goodhue - Ames

Past President Eldon Hunsicker - Ottumwa

IIAI OFFICE STAFF Chief Executive Officer Bob Skow, CPCU, CAE bob@iiaiowa.org • Ext. 13

Chief Operating Officer Tom O’Meara tom.omeara@iiaiowa.org • Ext. 18

Director of Membership Operations & Education Melissa Meiners melissa@iiaiowa.org • Ext. 15

Technology & Communications Coordinator Nicole Peffers nicole@iiaiowa.org • Ext. 17

In This Issue 2017 111th Annual Convention Highlights Page 18

2017 IIAI Convention Awards Page 21

Full Circle

by Tom O’Meara, Chief Operating Officer Page 23

Big “I” Trusted Choice® Golf Tournament Page 27

Internet Cameras and Masking Tape Page 29

What Would You Do If Your Agency Had A Data Breach?

Office & Education Assistant

by Tim Burke Page 31

Cindy Grim cindy@iiaiowa.org • Ext. 12

Politics of Insurance

Membership Services Coordinator Marilyn Paul, CPCU, AIT, AAM, CPIW marilyn@iiaiowa.org • Ext. 11

Membership Services Coordinator Brenda Kluger, CIC, CISR, CIIP, CRM brenda@iiaiowa.org • Ext. 14

Membership Services Coordinator Megan Kincy, AINS, AIS megan@iiaiowa.org • Ext. 16

by Bob Skow, CPCU, CAE Page 34

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MISSION STATEMENT: The Independent Insurance Agents of Iowa will be an ­unrelenting advocate of the business, professional and p ­ olitical interests of its members; doing so by working in the p ­ ublic’s best interest and with the highest e ­ thical standards.

Viewpoint is a publication of the Independent Insurance Agents of Iowa. Viewpoint is published quarterly: Winter, Spring, Summer and Fall. Viewpoint is mailed to Iowa insurance agents, Iowa Home Office Executives, Affiliate members, and other state associations and organizations.

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president’s REPORT

Another Successful Convention Independent

Insurance Agents of Iowa

by Terry Friedman, CPCU

IIAI’S 112TH PRESIDENT’S REPORT I have to admit, it is somewhat surreal to begin my term as the 112th President of your Association, after being on the Board of Directors since 2006. On the one hand, it’s amazing how fast time flies. On the other hand, it seems like I have been on the Board forever, which has amounted to 11 of my 37 years in the insurance business. I am humbled and honored with this privilege. Many of the Past Presidents helped guide and shape my career, especially my uncle Cy Friedman, and cousin Dick Friedman.

September marked the 111th IIAI Convention, and once again, it didn’t disappoint. I attended the Ethics and Workers’ Compensation continuing education classes on Wednesday, and the Agency Management Track seminars Thursday morning. My only regret is that the Thursday morning Education and Automation Track seminars were held simultaneously, so I had to choose. Chad Greenway was as an engaging keynote speaker as we have had, even for those who are not Hawkeye or Viking fans. Special congratulations to Marilyn Paul, Larry Blixt, Jerry Mease and of course Bob Skow, all who received well deserved Presidential Citations from Eldon Hunsicker for exceptional service to IIAI.

While conventions in some states seem to be struggling, we have been holding our own, in spite of the fact we have a very successful and well attended Rural Agents Conference and Young Agents Conference. For those of you who have not attended our state convention, or have not attended for a number of years, I strongly recommend you mark your calendar for September 25 and 26, 2018. While it is never easy giving up two-days out of the office, the continuing education classes, seminars, speakers, and net-

working with fellow agents and carrier representatives, is well worth it.

One of the more encouraging observations I made was the number of young agents in attendance, not to mention their hosting a food drive for the Food Bank of Iowa. Getting young agents involved and active in state associations is a challenge throughout the country. Our Young Agents Committee has worked hard to recruit members, and it appears to be paying off.

A sincere thank you to all who attended and helped to make it a success. In particular, special thanks to the Big “I” staff, all who put in many hours before, during and after the Convention. Also, we are extremely appreciative of our sponsors and trade show vendors. Without their support, it would not be possible to put on a quality event at an affordable price.

For those of you who attended the Convention, you heard a number of times how IIAI is held in high esteem by our peers. After attending my first National meeting in early September and listening to some Presidents from other state associations, I have to agree we don’t have a lot of the issues other associations are

FALL 2017 |

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experiencing. Having said that, we can’t rest on our laurels, and there are certainly areas where we can improve.

I can assure that your Board of Directors continuously looks for ways to provide value and be relevant for our members. One of our challenges is trying to determine the best way to get information to our members, so they can take advantage of the benefits that are available. In addition, there are so many other things the Association does for members behind the scenes, and we need to determine the best way to communicate that to you.

The year ahead will not be without challenges, but with challenges bring opportunities. There are national issues that still remain in question, none the least is health care, but also the continuing concerns over flood insurance and crop insurance. In Iowa, there are always legislative issues that come up, many that are not in the best interest of agents or insurance consumers.

“I can assure that your Board of Directors continuously looks for ways to provide value and be relevant for our members” The transition of Tom O’Meara replacing Bob Skow as your Chief Executive Officer will continue through the end of January, when Tom will assume the position. We have been fortunate to have Bob mentoring Tom for the past year, and I am completely confident the Association will continue to thrive under Tom’s leadership. He has been mentored by the best in the business.

Last but certainly not least, I personally want to thank Eldon Hunsicker and Jerry Mease. Eldon moves on after serving last year as your President, but will continue as a member of the Board for one more year as Past-President.

Jerry leaves the Board after 13 years

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of service, and no doubt will embrace retirement even more than he did last year. Eldon and Jerry have been great role models and friends, and I appreciate all they have done for me and your Association.

Thank you for entrusting me the responsibility to serve as your IIAI President. There is no doubt in my mind that we have a great staff and Board of Directors. However, I truly believe what makes an Association successful is an active and engaged membership. That is where all of you come in. We have had many members step forward and support IIAI in a number of ways, yet there is still an abundance of talent that has yet to be involved. I know everyone is busy, but please consider giving back to your Association. I promise you won’t regret it.

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national director’s REPORT

Emmett J Vaughan Institute Receives International Award Independent

by Terry McDonald, CIC

Insurance Agents of Iowa

CONGRATULATIONS DANA RAMUNDT This past summer, Dana Ramundt, President of The Dana Company, Past President and Past National Director of the IIAI and current Business Director of the Emmett J Vaughan Institute of Risk Management and Insurance traveled to London, England to attend the 53rd annual Global Insurance Forum. Dana was there to accept the prestigious Global Center of Insurance Excellence designation on behalf of the Tippie Business College at the University of Iowa.

The Global Center of Insurance Excellence designation was designed to recognize universities around the world with outstanding risk management and insurance programs. It also aims to encourage universities to play an even greater role in advancing insurance knowledge through research and intellectual capital development in order to build a top-tier academic network with the global insurance industry.

“Tippie has a rigorous and comprehensive risk management and insurance curriculum built on Iowa’s tradition of excellence established by the late Emmett Vaughan,” states Thomas Berry-Stoelzle, Director of the Vaughan Institute. “Our students work hard, have access to the best faculty, and enjoy an almost perfect placement rate.

This international recognition demonstrates the value of our program today.”

The GCIE was awarded to universities that met stringent criteria related to course offerings, graduate and industry employment rates, and professional involvement. There were 20 designations handed out to universities around the world and The Vaughan Institute from the University of Iowa was one of 12 located in the United States.

The Vaughan Institute was founded in 2005 and has over 350 graduates, employed by 154 different employers in 14 different industries, located in 26 states and four countries. Many of you fellow agents have sent your children to the University of Iowa to obtain the Vaughan Institute Certificate and go on work in the insurance industry. In fact, a couple of other familiar names teach courses at the business college to help promote our industry. Bob Fulwider, Past President, Past National Director and Past Chairman of the IIABA devotes many hours of time to the program. The other professor well known to agents across Iowa is Phil Brooks, past counsel to the IIAI. Speaking from experience, my agency is a benefactor of such a graduate of the Institute. It gives me great pleasure to see young people involved and excited about the insurance industry.

Without them, our industry would not last the test of time. The Independent Agent is not only surviving, but gaining ground on the disrupters and direct writers.

With programs like the Vaughan Institute, the State of Iowa will remain a strong industry leader, not only domestically, but internationally as well.

Congratulations Dana, I know the award is well deserved.

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Q&A Meet Independent Insurance Agents of Iowa’S 112th President

TERRY FRIEDMAN, CPCU

Q&A VIEWPOINT: We are in Dubuque, Iowa meeting with

the Big “I’s” 112th President, Terry Friedman. Terry, we understand you grew up here in Dubuque, tell us about your earlier years.

TERRY: I was born and raised in Dubuque and I went to Wahlert Catholic High School. I played a lot of sports and did the usual things kids do growing up. Because of my height, everyone asks if I played basketball. I played a little my freshman year in high school. However, I wore a back brace my sophomore, junior and most of my senior year, so I didn’t play after that.

In 1978, I met and started dating my wife, Paula, and even though she wasn’t from Dubuque, she loved Dubuque and wanted to stay here. Needless to say my goal of leaving Dubuque and finding employment elsewhere was put aside.

I decided to think that it might be in my best interest and the future of my family to be in the insurance business. There were four Friedmans at the agency in 1980, and they decided to give me a shot. So I left John Deere and took a 50% cut in pay, banking on a better opportunity and a more rewarding future.

VIEWPOINT: You went to college at Briar Cliff in Sioux City. How did you start playing basketball again?

TERRY: One of my goals in high school was to play college basketball, and I wanted to do that in the worst way! I got my wish – I played basketball in the worst way at Briar Cliff.

When I went out to visit, the basketball coach also happened to be the recruiter. There was a pickup game going on in the gym, and he asked me if I wanted to play. Apparently he thought I had some potential, and invited me to be on the team. So, I had a spot on the team and had chance to play a little bit, and I’m happy to have had the opportunity.

VIEWPOINT: Obviously, part of the reason he noticed you was how tall you are.

TERRY: I am 6’7”.

VIEWPOINT: After you graduated from Briar Cliff, what did you do?

TERRY: Much to my parent’s dismay, I traveled around Europe for two months with some college friends, and had a great experience. When I came back home I didn’t know what I wanted to do, but I knew two things. First, I didn’t want to work in the family insurance business, and the other was I didn’t want to work or stay in Dubuque. Unfortunately, I was broke and it just so happened that John Deere was hiring college graduates left and right, and I took a job in the office. I was there for 4 years, from 1976 to 1980.

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Terry & Paula enjoying time in Ireland.

VIEWPOINT: How big was Friedman Insurance when you started and how big is the agency now?

TERRY: As I recall we had about 15 employees, and we were almost strictly Property & Casualty, primarily Personal Lines. Today, we have 40 employees, 23 in P&C, and 17 in benefits and financial services. On the P&C side, we’re probably 70% commercial.

Photos of family members who precede Terry.

VIEWPOINT: Tell us about the family history here at Friedman Insurance.

TERRY: My grandfather, Henry Friedman, started the agency in 1928, ironically as a State Farm agency. His only employee was my aunt, Bernice Friedman. In 1940, my uncle Cy Friedman joined the agency, and he contracted with a couple of additional carriers, which State Farm allowed at that time. In 1946 Elmer Friedman came in, and my father Larry joined the agency in 1950. In 1952, State Farm mandated that agents had to commit as a direct writer, or they would lose their contract. They decided the future held better for independent agents, so they severed ties with State Farm.

VIEWPOINT: Behind Cy there was Elmer, Larry, Dick and you?

TERRY: Cy and my father Larry were brothers, and Elmer was their cousin. Dick was my first cousin and Cy’s son, and joined the agency in 1966. Bob Miller was the first “non-Friedman” hired as a producer. He was also a shareholder and was part of the agency from 1979 until he retired in 2011.

VIEWPOINT: Over the years you transitioned more into Commercial Lines; how did that happen?

TERRY: I started primarily writing Personal Lines and small amount of Commercial Lines. I wrote my first large account as a result of a friend of mine who was the CFO of a non-profit organization. He was unhappy with their current agent, and asked me if I would handle their insurance, which I was happy to do. After that, I began to focus on Commercial Lines.

VIEWPOINT: What were the keys to your success during that transition and that continue today?

TERRY: I felt at the time and still believe, the best opportunity for me to be successful was to work hard, get involved in the community, be passionate about what I do and become a knowledgeable insurance technician.

VIEWPOINT: How did you develop your skills?

TERRY: I was very fortunate that Cy, Elmer, Dick and my dad were all very coverage oriented, and I learned a lot from them. I went to a lot of schools, read whatever I could get my hands on, and made it a point to associate myself with people who were much smarter than I am, which wasn’t hard to do. I received my CPCU designation by studying on my own, since there were no CPCU study classes in Dubuque.

VIEWPOINT: Tell us about the financial services and employee benefits portion of your business?

TERRY: Prior to 1994, the joke in our office was that about the only way we would write a life policy was if a customer came into the office, and refused to leave unless we wrote a policy for them. We realized the only way we would be able to get into selling benefits and financial services was to bring in someone who knew something about it. So we brought in two very well respected, successful and knowledgeable life insurance professionals, Merle Santjer and Louie Bassler, and set up a separate corporation. They did a great job developing and growing the financial services and benefits portion of our business, and today it represents 40% of our employees and revenue.

VIEWPOINT: So the agency is structured into departments?

TERRY: Yes. Friedman Insurance is strictly Property & Casualty, and Friedman Financial Services writes financial services and benefits.

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Administrative: Brenda Green, Sally Daack, Rae Ann Freund, Kendra Shaw, Lin VanderMeulen.

VIEWPOINT: Is your agency paperless?

TERRY: If you look in my office, you would definitely say “no.” From the overall office standpoint, I would say less paper, but not paperless. We scan and image everything now, and all documents are online and readily available. We are moving that way on the benefits side, but for some financial services hard copies must be maintained.

VIEWPOINT: I understand there is a transition going on and you are affiliated with other insurance agencies. Tell us about that.

TERRY: A little over five years ago, we merged with LMC Insurance & Risk Management of West Des Moines.

Besides us and LMC, our organization includes AgriBusiness Insurance Services of West Des Moines, Molyneaux Insurance of Davenport and Independent Insurance Services of Marshalltown. It is a true merger and there are six shareholders in our office including myself. It is a unique arrangement in that we share many economies of scale, yet run independently in many ways.

VIEWPOINT: Tell us about some of the community activities you have been involved in.

TERRY: Currently, I am on the Board of the Community Foundation of Greater Dubuque, Boys & Girls Club of Greater Dubuque, Carnegie-Stout Library Foundation and Steeple Square. Until recently I was on the Board of Divine Word College, Stonehill Franciscan Services, a non-profit that provides independent living through skilled care, and DuRide, a non-profit that provides rides for senior citizens.

VIEWPOINT: There may be a couple of these that some of our readers may not be familiar with, what does the Community Foundation of Greater Dubuque do?

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Personal Lines: Shirley Shannon, Katie Gregorich, Colleen Williams, Beth Weber.

TERRY: The Community Foundation of Greater Dubuque (CFGD) uses philanthropy and collaboration to build strong communities in Dubuque County, and also through affiliate foundations in Allamakee, Clayton, Clinton, Delaware, Jackson and Jones Counties. Individuals and businesses can give through the Foundation to support nonprofit endowment funds and can also support Foundation initiatives that address community challenges. CFGD has been the catalyst for many successful programs such as Grade-Level Reading (assisting low-income children to read at grade level), Re-engage Dubuque (getting kids back to complete high school or equivalency diploma), Vision-to-Learn (providing free eye exams and eyewear for low-income kids), and Inclusive Dubuque (dedicated to creating an informed and inclusive community, regardless of race, age, gender, sexual orientation, religion or disability). The CFGD has $80 million in assets and last year made $5.7 million in grants to benefit Northeast Iowa.

VIEWPOINT: What is the Steeple Square organization?

TERRY: It is a relatively new non-profit. With the consolidation of a number of Catholic churches, a few years ago St. Mary’s Church in Dubuque was closed and put up for sale, along with its rectory and old school. The church is a beautiful structure built in 1867, and an icon in Dubuque.

A diverse group of community leaders came together to brainstorm how to save the church and other structures, and explore the potential it might have. The former old school has been completely renovated, and now serves as affordable housing, primarily for women in transition. The church is currently being used as an event center, and plans are underway to completely renovate it. There is also a plan in place to renovate the former rectory, which will be used for offices and day care services, which is lacking in this area of Dubuque. It is a multi-million dollar project.

Financial Services & Benefits: Louis Bassler, Michelle Schmelzer, April Williams, Lisa Schockemoehl, Donna Kuhlman, Lori McNaney, Katie Koppen, Cheryl Kohl, Jay Lukens. Those not present and out working: Merle Santjer, Jim Rang, Pam Vaske, Wendy McKernan, Chad Hruska, Michelle, Richey.

Commercial Lines: Mark Phalen, Jena Wilwert, Paula Fitzgerald, Lauren Moser, Tara Hillery, Pam Buchholtz, Sandi Swift, Jeff Bushman. Those not present or out working: Dan Wellik, Steve Schlueter, Marly Schilling, Nolan Montague.

VIEWPOINT: I understand your faith is important to you,

VIEWPOINT: You became involved with Mid-America

tell us about your participation in church activities.

Conference, tell us about it.

TERRY: Some people may find that hard to believe, espe-

TERRY: I became acquainted with the Mid-America

cially underwriters and adjusters. I try to make it to 6:30 Mass every day, not because I’m all that religious, but mostly because I need it and it’s a great way to start the day. I am very involved in my Parish, and currently on the Vocations and Stewardship Committees. I have been blessed in many ways, and believe in giving back.

Insurance Conference when I chaired our Technical Affairs Committee. It is Insurance technicians (geeks) from 19 states representing their local Big “I” state associations.

The meeting is currently held in Kansas City, and we meet with representatives from insurance companies, NCCI and ISO to discuss and recommend changes in policy forms.

Right now, it is really the sounding board for our industry.

Many significant and positive coverage changes have been implemented as a result of the conference. There are usually 10-15 new agenda items each year, along with a number of items that remain on the agenda waiting for updates.

Some of our accomplishments can be found under “Success Stories” on the Mid-America website, www.matcinsurance. com. I have gone to the conference for 15 years, chaired the conference in 2009, and have been the Treasurer since 2010.

VIEWPOINT: How did you become involved with the Big “I”?

TERRY: In our office, it was actually a given that we would all get involved to some degree. I really think it’s part of our culture. We always went to the State Convention, and I haven’t missed one in 36 years. My Uncle Cy was the first to get involved, and eventually became Iowa President and a State Director. My cousin Dick followed in Cy’s footsteps, and also served as Iowa President. Elmer and my dad Larry Friedman, along with Bob Miller from our office, were all Presidents of our local association, and regional directors back in the day. They were also involved in state committees. Today, we have four people in our office that serve on State Committees.

VIEWPOINT: One of your first activities was getting

VIEWPOINT: When did you become involved with the Big “I” Board of Directors?

TERRY: I believe 2006 was the first year and it has been a great experience.

VIEWPOINT: Have you ever thought about your partic-

involved in the Technical Affairs Committee correct?

ipation in the Big “I” and Mid-America, and why you stay involved? What has been the benefit for you?

TERRY: Yes, I have always been kind of an insurance

TERRY: It is basically like a lot of things you volunteer for,

coverage geek, and that’s another part of our culture that was a given. Cy and Dick both served on state and national Technical Affairs Committees, so I was glad to have the opportunity to get involved with our association TAC. Our office has always been serious about being good insurance technicians. I have definitely benefited from many other great Iowa insurance technicians, such as Dean Brooks.

thinking initially you’re doing something for the benefit of the organization and others. However what typically happens, I have received much more back than I have given to the Big “I” or Mid-America. There is no doubt I am a better agent, more knowledgeable and a better business owner because of my involvement.

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Scott DeSousa on left discusses coverages.

L to R: Rob, Terry, Carolyn, Ann and wife Paula.

VIEWPOINT: Tell us about your family.

TERRY: My wife Paula and I have been married 37 years, and she is definitely my better half and best friend. We have three children, Ann is our oldest, Jeff is second, and Carolyn is our youngest. Ann lives in Los Angeles. She is a freelance journalist, blogger and has a podcast. Our son Jeff currently lives in Grand Junction, CO and manages a small business that sells and rents equipment to contractors. He is also a serious marathoner and ultra-marathoner. Our youngest, Carolyn teaches at a Catholic school in Lisle, IL., and she is also a serious runner and marathoner.

VIEWPOINT: When you are not working or spending time with the family, what do you like to do?

TERRY: I like to travel, read, spend time volunteering, play a little golf and visit with friends. We have been to Europe quite a few times, and also travel to see our kids when possible.

VIEWPOINT: What is your favorite food?

TERRY: I don’t know if I have a favorite food, since I like about everything. I have cut back on sweets as I have gotten older. I am the least picky eater I know.

technology, new forms of communication and develop ways to provide more efficient ways to service their clients. While there will always be shoppers strictly looking for the lowest price, most consumers will still want the personal attention and expertise only an independent agent can provide.

VIEWPOINT: In this business today, what keeps you

VIEWPOINT: What is your favorite color?

awake at night?

TERRY: I really don’t have a favorite color, but if I had to

TERRY: On the macro level, I worry about being a good

would your prediction be?

and effective CEO of the Friedman Group – being somewhat responsible for 40 employees and indirectly, their families.

On a micro level, I worry about doing the best job I can for my clients.

TERRY: As far as independent agents are concerned, in

VIEWPOINT: Congratulations on being the 112th

choose, probably blue or green; darker colors, not bright colors.

VIEWPOINT: If you were to look into the future, what

the foreseeable future I think large agencies will continue to get bigger, either organically, through acquisitions or both. I believe this will create opportunity for smaller agencies, as large agencies may not be interested in smaller commercial accounts and personal lines. I think it is becoming more challenging for the middle-sized agencies to perpetuate.

Having said that, I believe the future is bright for independent agents as a whole. Agents will have to adapt to ever changing

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President. Do you have a message for the membership?

TERRY: We have a great organization here. I encourage members to get involved with our Association. Everybody is busy, but try and find a way to make the time.

VIEWPOINT: Thank you and best of luck to you in the upcoming year.

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INDEPENDENT INSURANCE AGENTS OF IOWA It is all about

“Leadership and Trust” 2017 111th Annual Convention Highlights

Keynote Speaker and NFL star Chad Greenway energized and motivated the crowd.

Workers’ Compensation update featured Dean Brooks, CPCU, CLU and Bob Skow CPCU, CAE

Company Panel featuring Sean Kennedy, President, IMT Group; Scott Martin, President, Pekin Insurance; Matthew Schleier, Midwest Manager, United Fire Group and Kraig Klopfenstein, Regional VP, Auto Owners.

Jess Patton update the crowd on the latest on health insurance issues.

Dr. Summer Zwanziger-Elsinger conducted a 3-hour ethics class.

Survey Says! Greg Hoeg, VP J.D. Power Insurance Practices discussed what todays insurance consumers want.

Internal Agency Perpetuation had the audience taking lots of notes – Al Diamond of Pipeline Newsletter was our featured speaker.

Randy Downs – ISO Midwest Region Manager walked attendees through class codes, rating and much more!

Social Media expert Adam Engel of Running Robots discussed digital strategies.

Best Selling author Charlie Anderson focused on improving sales performance.

One of the hottest insurance issues – Cyber Liability was discussed by John Immordino, CIC, RPLU, CRM

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2017 IIAI

“CONVENTION AWARDS”

H.H. Red Nelson, IIAI Agent of the Year Award

C. Daniel Fulwider IIAI Young Agent of the Year Award

Brian Petersburg of Decorah receives the 2017 Agent of the Year award.

Second from the right – Billy Blake of Oskaloosa is awarded the 2017 IIAI Young Agent of the Year award.

Presidential Citation

Presidential Citation

Presidential Citation

Terry Friedman, CPCU awarded for his technical expertise and service to MidAmerica Insurance Conference.

IIAI staff member Marilyn Paul, CPCU, AIT, AAM, CPIW was presented a citation for her years of service.

Jerry Mease received award for his years of service to the Big “I”.

Presidential Citation

New Board Member Steve Goodhue on right.

L to R: IIAI President Eldon Hunsicker of Ottumwa and his wife Janelle and IIAI’s 112th President Terry Friedman, CPCU of Dubuque.

Larry Blixt IIAI contract lobbyist being recognized for his dedication to Iowa agents.

Independent Insurance Agents Every day, you as independent agents put on a rocking show for your clients. We are proud to give you a standing ovation!

Full Circle

by Tom O’Meara, Chief Operating Officer

M

y first full year at the Association is now in the books. When I began in October of 2016, I must admit that I did not realize what all the position would entail. I was briefed by Bob and the Board of Directors about what my duties and expectations would be, however, it was not until I began actually witnessing first hand exactly how the organization operates on a daily basis that I was able to grasp the full purpose and responsibilities of the Association. As we begin our final quarter of 2017, I will take a moment to look back on some of the events that have helped me to grow in knowledge and confidence as I prepare to take the leadership role February 1, 2018.

The first major event that comes to mind occurred in December of 2016.

It was a series of Town Hall meetings held in various locations around the state. It was a unique event in that it was not on the normal “calendar of events” that our members are generally used to seeing each year.

The meetings were put together in a relatively short amount of time in order to address an immediate concern that the Board felt was important to membership. The meetings focused on agency valuation and running an

efficient, profitable agency. It was my first exposure to Dirk Nohre and I cannot emphasize enough how much I was able to learn from Dirk in the short amount of time we spent together.

Also, the institutional knowledge I gained from driving around the state with Bob Skow, Dean Brooks, and Eldon Hunsicker will not be forgotten.

This Association is built around a system of routines. We have three major events annually that take months of planning and organizing for each one. They include the Rural Agents Conference, Young Agents Conference and Annual Convention and Trade Show. I just completed a full cycle of all three with the conclusion of the convention in September. My biggest takeaway from each of these events is that although the planning may be similar for the events, each individual event is unique it its own way. Although mother nature did not cooperate in our rural agent’s event in January, I still witnessed hundreds of agents from all over the state come together to learn and discuss issues that affect them throughout the year.

The focus is clearly on agriculture which obviously is a huge part of what many of our agents do. In May, we welcomed our Young Agents from around the state. It was a great event

in which I was able to take part in by teaching a CE class on compliance.

I was helped out tremendously by Jared Kirby from the Iowa Insurance Division’s fraud department. The highlight of this event for me was seeing the enthusiasm and participation from our young agent community.

Billy Blake of Oskaloosa did a fantastic job as chair of the committee and Nicole Peffers from our office helped put together a great event. Finally, the Annual Convention and Trade Show concluded in September. Another great event attended by hundreds of agents, vendors, and companies from around the state. We had many great events and speakers including a golf tournament, trade show, and keynote speaker, Chad Greenway of the Iowa Hawkeyes and Minnesota Vikings.

Between all these events, I was able to participate in many other facets of the Association. I participated in several board meetings throughout the year. These meetings not only taught me the intricacies of the Association but also enabled me to work with a great group of individuals who represent all of you on the board. They are all a dedicated group of individuals who have the interests of all of you in the forefront. I wish to give special thanks to outgoing board President,

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Eldon Hunsicker. It was a pleasure to work with Eldon in my first year at the Association. He provided me with a lot of guidance and advice and I will forever be indebted to him. Also, Jerry Mease leaves his tenure on the board as Past-President. Jerry was instrumental in the hiring process when I came on board and has been a great mentor as well. I also attended 3 national board meetings this year where associations from across the country come together to discuss issues that affect all of us a whole.

Our National Director, Terry McDonald, is very well respected nationally and does a great job of representing the agents of Iowa at these meetings.

Throughout the year also came events such as Insurance Day on the Hill at the State Capitol, and our legislative briefing trip to Washington DC where we met with all members of Iowa’s Congressional Delegation. I also spent countless hours with Bob and our lobbyist Larry Blixt attending fundraisers

and lobbying up at the Capitol. Our annual planning event this year was attended by agents from across the state who come to Des Moines and volunteer for committees in order to help our association prosper.

Communication is a large part of what we do. The newsletters go out bi-monthly and we are always looking for articles and information to keep you all informed of what is happening in our industry. Viewpoint is our quarterly magazine which goes to all of you with events of the association along with national topics. It has been a pleasure writing articles for this publication and watching the magazine come together from start to finish. Communication is also a part of our daily schedule. Bob and I receive phone calls and emails daily from members with questions and concerns. We are here to help and if we do not have an answer readily available we reach out to other resources to assist the member.

Finally, I have been asked what has

been my favorite and least favorite aspects of my job after one year. Both answers come easy. My least favorite thus far is the in-ability to help out when our members come to us for guidance and assistance. Clearly, the first issue that comes to mind has been regarding agent compensation. After more than a year, it is still the one thing that is talked about when I visit with you in your agencies or at other functions. As far as the best aspect it is definitely being able to meet with so many of you on a personal basis. I have been all over the state this past year stopping in agencies and visiting about our industry and where it is going.

Clearly, I have not reached all of you and I will continue to strive to visit with as many of you as possible. But please, do not hesitate to contact me at anytime to discuss what may be on your mind, or simply say hello. I am here for all of you and look forward to serving your needs for many years to come.

Tom

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Internet Cameras and Masking Tape E

arlier this year, Mark Zuckerberg, CEO of Facebook, unintentionally revealed (in a photo he posted to his Facebook account) that he covers up the webcam and audio port on his laptop. He literally has a small piece of masking tape over the pea-sized camera lens and another one on the audio port where headphones plug in.

The social media universe was quick to pick up on this, leading to all sorts of speculation and theory crafting about the possible implications.

What Does Zuckerberg Know That We Don’t?

For starters, Facebook is able, technically, to listen in on your conversations.

Recall that you may have granted Facebook permission to access your microphone. Coincidentally or not, many FB users have reported online ads popping up for obscure things that they may have discussed within earshot of their phone or laptop, but had not actually typed into any search engine or device. For now, Facebook denies using a phone’s microphone to serve ads or customize news feed stories.

Webcams are also vulnerable; hackers can easily gain access to cameras embedded into mobile phones, tablets and laptops as well as stand-alone surveillance cameras. Webcam hacking was in the news after the October 21, 2016 “Mirai botnet attack,” in which thousands of webcams, DVRs and industrial cameras were hacked and then networked together to attack large corporate servers.

The risk of a webcam security breach extends to Android and iOS devices. iOS is the operating system on Apple’s iPhone, iPad and iPod Touch products.

In August, Apple issued a security alert after identifying the “Trident” flaw, which hackers could use to turn on the camera or microphone on a hacked device. Trident was delivered to victims via SMS text message links.

And by the way, don’t think you’ll see a recording light turn on when you’re being spied on through your webcam; that can be and is usually disabled remotely by the hacker.

Android apps can also serve as a conduit for hackers. Recently, a popular Android app called AirDroid was reported to have a major security flaw. AirDroid, with over 20 million downloads, helps users manage their Android device from a web browser.

But the data transmission process is not secure, allowing a hacker to easily create a man-in-the-middle attack.

AirDroid has access to a device’s contacts, camera and microphone, and other user data. Android is continually releasing new security updates to keep up with the continual emergence of new security vulnerabilities.

While some may suggest disabling your webcam and microphone to protect yourself, this may not be a practical solution for business professionals who need to use these devices for remote collaboration, web meetings, and Internet voice services.

What Could a Hacker Do with Remote Access to Your Webcam or Microphone?

Imagine the Invisible Man, sitting on the armchair in your bedroom at night, watching you and listening to your private conversations. What could he do with that information? Blackmail you?

Gain access to your online accounts?

Jeopardize your privacy and safety?

Certainly all this and more. Think of the webcam on your laptop as the Invisible Man; it can watch you and listen to you at any time, without your knowledge, transmitting a feed to hackers via your laptop’s Internet connection.

And, it could be recorded and easily posted on YouTube for the world to watch.

What to Do?

Instead, we circle back to a variation of Zuckerberg’s simple, low-tech solution to defeat high tech surveillance.

But instead of just a piece of tape, we recommend placing a bandaid over your webcam – the bandaid padding will protect your camera, and you can peel it off whenever you want to use the webcam. If you choose the right size bandaid or trim one to fit, you can even muffle the microphone port.

Also, to further protect yourself from becoming a target, consider protecting personally identifiable information and information about your financial assets. Use secure email communications to keep your personal information personal.

This article was originally published in RPost’s Tech Essentials for Insurance Professionals, a weekly e-brief series that covers insurance-related tech news and trends around cybersecurity, workplace productivity, and legal compliance. Subscribe to Tech Essentials for Insurance Professionals for free at: www. rmail.com/insurance-tech-essentials

FALL 2017 |

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What would you do if your agency had a data breach?

by Tim Burke Director of Cyber Risk, IMA

T

im Burke knows all too well the cost of having his identity stolen.

In 1999, Burke learned someone gained access to his personal information.

What followed was an experience that not only left him feeling violated, but vulnerable.

“It was remarkably frustrating,” he said. “I think it’s as close to someone breaking into your house as you can get. You never live comfortably again.” At the time, Burke spent his own money and resources, hoping to resolve the problem and minimize any potential repercussions.

But even years later, he admits the thought of someone using his confidential information still exists in the back of his mind.

“It can effectively ruin someone’s life,” Burke said. “Someone can still use that information years later to harvest an identity to open up a utility account, a mortgage, and you’re not even aware,” Burke said.

Today, Burke serves as Director of Cyber Risk for IMA, a Denver-based, diversified financial services company specializing in risk management, insurance, surety and employee benefits solutions. He has more than 20 years of experience in the insurance industry, with more than half of that time specializing in technology errors and omissions and cyber risk.

Technology plays an essential role in today’s society, allowing anyone with a

smartphone or laptop to easily conduct business online from nearly any location. And while users may think they have adequate security measures in place, the truth is, criminals are continuing to adapt their efforts to steal data in more sophisticated ways.

And for insurance agents, the results could be devastating.

But there are steps agents can take to protect themselves and mitigate the risks of data breaches.

Cyber risk is best defined, Burke said, as a failure to safeguard a computer network, leaving it exposed to data breaches, ransomware and fraudulent funds transfer.

Personal lines agents, he said, often have access to sensitive information, such as Social Security numbers. And if that data is intercepted, a criminal

FALL 2017 |

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could apply for a credit card, or even use it to make money with fraudulent claims against a client’s health insurance policy.

from data breaches, business interruptions and network damage unlike standard insurance policies, which were designed for actual risks.

“Most of these are more smash-andgrab crimes,” Burke said. “Businesses aren’t a target. These crimes are more of a matter of opportunity.”

“Agents have a legal obligation to maintain certain standards to protect confidential information, and there are substantial repercussions if they don’t,” Burke said.

Policies help cover the expenses most often needed when a breach occurs, he said, including legal counsel, forensic exams, public relations and assistance notifying customers affected by the breach.

While data breaches often result in unanticipated and costly expenses, there’s often a higher toll.

But often, it isn’t until businesses are notified by law enforcement or a credit card company, that a breach is identified.

One of the challenges Burke sees, he said, is that businesses have no idea where to turn once a data breach takes place.

“When this occurs, we want to make sure our clients have a road map of what steps to take next,” he said. “It’s Risk Management 101.” Burke said he first recommends clients call a qualified attorney who specializes in cyber security cases and handles them frequently.

Often, attorneys, also called breach coaches, will determine the scope of the breach and how to proceed. Some investigations involve enlisting the help of professionals, such as forensic technicians, to assist.

“With breaches, no two are the same, and you have to be really, really creative,” he said.

“The cost is driven by the information exposed, and if you have to negotiate on the fly, that reduces your leverage; that’s where insurance coverage comes in.”

Companies like IMA offer protection through cyber security insurance, which is designed to prevent losses

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| FALL 2017

Coverage also helps with other expenses, including defense costs from lawsuits, losses resulting from business interruptions and regulatory fines and penalties.

As companies consider firewalls and added security measures to keep confidential data safe, employees are surprisingly the biggest sources of breaches, he said.

“Implementing proper controls such as encryption and data backup, and instilling awareness across the organization can help,” he said. “…Maybe an employee clicks on a link, allowing someone access to the network. It could be malware that steals data.

That’s the type we’re seeing.”

Employees can fall victim to a number of cyber threats, including malware, software intended to damage or disable a computer or computer system; social engineering, which uses deception to manipulate the computer user into disclosing confidential information that can then be used for fraudulent purposes; and phishing, the practice of sending emails claiming to be from a reputable company in order to coax someone into revealing passwords or bank information.

“It’s a reputational risk,” he said.

“When it spreads by word-of-mouth of having a breach, chances are, (your clients) don’t do business with you anymore. It’s difficult to quantify, but if it’s on the front page, it does not bode well for sustaining a business. And more than likely, they will use a different agent moving forward.”

To mitigate risks, Burke said IMA offers clients gap-analysis and cyberrisk loss modeling as well as tools such as a cyber loss control website that includes the latest information in best practices and industry news.

Still, he admits there’s a long way to go, noting only 20-25 percent of clients have coverage.

“If you buy coverage, we are militant,” he said. “The last thing we want is a breach; we never want to even have to broach the topic.”

IIAI has partnered with Arlington/Roe & Co. to offer members an exclusive program to help protect their agencies from information security breaches.

The coverage is designed specifically for insurance agencies and is only avaiable to IIAI members. Premiums start at $250 for $250,000 limit of liability and up to 25,000 records. Call IIAI today to find out more about cyber protection for your agency and your clients.

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4000 Westown Parkway, Suite 200 West Des Moines, IA 50266

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Politics of

INSURANCE

by Bob Skow, CPCU, CAE Chief Executive Officer

W

hether we like it or not, insurance has become very political.

Not just with politicians at the state and federal level, but with American voters too. While health insurance is a primary example, every line of insurance is political today. Crop insurance, workers’ compensation, auto insurance and flood are all a specific insurance products, but it so much more than any specific product. All consumers have an opinion about insurance, and let’s be candid, many don’t like the industry.

Take the significant changes companies have brought forward in the underwriting process. The usage of data, tracking devices, proprietor forms, for example, have made buying insurance significantly different than it was 20 or 30 years ago. Now some are proposing even more proprietor rating models that could impact how much a consumer pays, yet how the premium is actually calculated might not be disclosed – we wouldn’t tell you how we got to these charges. While I understand fully the use of data, it comes with a cost. The cost is consumers get frustrated when they are adversely impacted by the data. Those who benefit seldom express approval and those negatively impacted contact their legislators! Transparency

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| FALL 2017

is going to become more and more a political issue, along with protection of private data. The Big “I” has already been engaged on working with regulators on a fair and not over burdensome requirements on agencies to protect consumer data that without our watchful eyes could end up costing agents significant sums of money.

The politics of insurance sometimes pits agents against carriers and vice versa. While we agree on about 90% of the issues, I have witnessed in recent years an increase in carriers not supporting positions that are of importance to agents more and more.

Consumer groups, and in some cases, groups fronting for those who have, in my opinion, a vested interest in an insurance related topic are engaged making it much tougher to pass legislation. Obstacles thrown out in front of us by groups professing to represent consumers is a growing problem.

We also have seen a tendency for regulators to allow for a different set of rules to apply to the new marketing schemes offered online by the cyber marketers. Keeping the playing field level is going to be challenging and making sure those offering insurance products are licensed. Just because someone sells insurance through a website rather than with agents doesn’t mean they should not be subject to all current laws that govern us.

And it’s not just laws and regulations that impact your livelihood.

Economic development pursuits by government often give huge tax breaks to direct marketers of insurance, yet don’t do anything for the small business owner on main street selling insurance and giving back to their community. We have for years battled for the same tax breaks for agents that are given to companies.

Today, the need for the Big “I” has never been greater. The politics of insurance alone require a vigilant eye.

Your participation in our grassroots efforts and our PAC’s are necessary.

I recently discussed with an agent his dislike for politics and he said “I’ll never give a dime to one of those guys.” My response is then give the Big “I” your donation. We will see to it that those serving in office who are willing to sit down and talk to us about the issues are supported. We follow the issues closely and know who is important on legislation key to your livelihood. The Big “I” PAC’s are career insurance protecting your livelihood!

If you sell auto, property, health, crop, flood, workers’ compensation or liability insurance, you cannot afford not to support the Big “I” efforts – let us fight those political battles for you!

Like it or not insurance is very political these days.

GET WISE about your agency RISK MANAGEMENT.

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INDEPENDENT INSURANCE AGENTS OF IOWA 4000 Westown Parkway, Suite 200 West Des Moines, Iowa 50266

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2017

INDEPENDENT INSURANCE AGENTS OF IOWA PROGRAM SPONSORS A special thank you to the following sponsors for supporting IIAI’S Conferences and Programs in 2017.

PLATINUM

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EMC Insurance Companies Grinnell Mutual Reinsurance The IMT Group Independent Agents Service Corporation Motorists Insurance Group Nationwide Insurance Progressive United Fire Group

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