2016 IIAI Summer Viewpoint

110th Annual Convention, Trade Show and EXPO

Independent

SOARING TO NEW HEIGHTS!

Insurance Agents of Iowa

SUMMER 2016 • VOLUME 34 • ISSUE 3 INDEPENDENT INSURANCE AGENTS OF IOWA

EMC Insurance Companies

2016 Agent/Company Meetings Hastings Mutual Insurance Company

The IMT Group

Westfield Insurance

IN THIS ISSUE: • We Have Had Many Successes!

• Acknowledging There Is “No Free Lunch” • 2015 Iowa Property & Casualty Insurance Market Place Report • A Guide To Environmental Insurance On Farms For Insurance Producers • IIAI 2016 Scholarship Winners • Big “I” Washington DC Trip • 2016 IIAI Agent/Company Meeting Report • Iowa Insurance Hall of Fame • Big “I” Visits Grinnell Mutual • Young Agents Conference

ARE YOU totally

WORRY FREE?

WWW.IMTINS.COM

West Des Moines, ioWA • 800.274.3531 • WWW.iMtins.coM

PRESIDENT’S REPORT We Have Had Many Successes!

It has truly been an honor to serve as President. We have a very active and dedicated Association led by Bob Skow and a great staff that does an exceptional job at making every meeting and function run smoothly.

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)

Advertising Editors Melissa Meiners & Nicole Peffers

BOARD OF DIRECTORS President Jerry Mease - Winterset

President-Elect Eldon Hunsicker - Ottumwa

Treasurer Terry Friedman, CPCU - Dubuque

National Director Dean Brooks, CPCU, CLU West Des Moines

Directors

Tim English, CIC - Dyersville John Dalton - Council Bluffs 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

Past President Scott Morningstar, CPCU - Lisbon

IIAI OFFICE STAFF Chief Executive Officer

Jerry Mease Page 5

NATIONAL DIRECTOR’S REPORT Acknowledging There Is “No Free Lunch” My dad had a lot of favorite expressions he was always willing to freely share, especially with me. One I heard frequently was “there’s no such thing as a free lunch”. Certainly not an original but one I often think of as it relates to our National Association.

Dean Brooks, CPCU, CLU Page 7

In This Issue 2015 Iowa Property & Casualty Insurance Market Place Report

By Bob Skow, CPCU, CAE Page 9

A Guide To Environmental Insurance On Farms For Insurance Producers Page 20

Big “I” Washington DC Trip

36 ARM Associated Risk Managers

30 BITCO Insurance Companies

• Hastings Mutual Insurance Page 31

• Westfield Insurance Page 38

Melissa Meiners melissa@iiaiowa.org • Ext. 15

IIAI’S 2016 Scholarship Winners

Technology & Communications Coordinator

Iowa Insurance Hall Of Fame

Membership Services Coordinator

33 Amerisafe

2016 IIAI Agent/Company Meeting Report • EMC Insurance Companies Page 28

Director of Membership Operations & Education

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

THANK YOU!

43 Big “I” Professional Liability

• The IMT Group Page 34

Membership Services Coordinator

We would like to thank our advertisers for their support.

This magazine would not be possible without them.

Page 24

Bob Skow, CPCU, CAE bob@iiaiowa.org

Nicole Peffers nicole@iiaiowa.org • Ext. 17

ADVERTISERS

Page 40 Page 41

26 Burns & Wilcox 23 EMC Insurance Co. 4 Grinnell Mutual 2 The IMT Group 37 Iowa Mutual Insurance Co. 8 Merchants Bonding Co. 30 M.J. Kelly Company 8 Partners Mutual Insurance 21 Pekin Insurance 6 SECURA Insurance Co. 19 West Bend

Big “I” Visits Grinnell Mutual Page 41

Young Agents Conference Page 42

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

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

Office & Education Assistant Cindy Grim cindy@iiaiowa.org • Ext. 12

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.

Tailored to YOUR style Your customers don’t want cookie-cutter insurance. They want a tailor-made package that fits their operation to a T. Whatever their business style, we can tailor coverages to their unique needs.

Visit grinnellmutual.com to discover how we can help you grow your business.

president’s REPORT

We Have Had Many

SUCCESSES!

by Jerry Mease

I

t is hard to believe this is my last article to write as your President of the Independent Insurance Agents of Iowa, my year of service ends at the Annual Convention in September. It has been a very busy year so I guess I’m not surprised how fast the time flies by.

This part of the job has not been easy for me. I am not a writer! Many thanks go out to Bob & Nicole at the Big “I” office for all their help.

It has truly been an honor to serve as President. We have a very active and dedicated Association led by Bob Skow and a great staff that does an exceptional job at making every meeting and function run smoothly.

I also have been blessed with a super Board of Directors to serve with.

They are to be commended for the amount of time and effort they voluntarily put in on your behalf. They attend a number of meetings, I am proud of the job they do, and their dedication to the independent agent delivery system.

Thankfully there was not as much negative activity with the State Legislature that affected us this year.

Frankly, after the last few years it was nice to have an easier session. I do feel we have had many successes to tell you about! The Rural Agents Conference went very well with another record crowd. The Young Agents Conference also saw the largest attendance ever. Our Company

Meetings help promote strong and important relationships were very successful. Special thanks to IMT, EMC, Hastings Mutual and Westfield Insurance for meeting with us, please take some time to read their comments in this issue. Another great IIAI Convention is planned for September and details are included in this issue.

I look forward to seeing many of you there, the convention is a great learning and networking event – you should attend.

For several years the Board of Directors has been discussing ideas and proposals regarding how we would go about replacing Bob, our Chief Executive Officer, when the day comes that he desides to want to retire. We have always had an emergency plan in place. But we all knew it

would be hard to replace Bob and need to be prepared. My goal as President was to finalize a plan that could be implemented as soon as he set a date.

Little did I know that as we were putting the plan together, Bob gave us a heads-up that he would be retiring in two years (January, 2018). His date is still a ways away, but according to the plan, it was time to implement the process.

This is a very daunting job. Replacing someone, who has put his heart and soul into his job as Bob has, will be very difficult. Bob’s leadership, his knowledge, and his work ethics are one of the reasons our Association is so successful.

The Boards goal is to find the very best person we can who will be just as dedicated to our industry. Our job, as agents, company representatives, and friends of the Association; are to be patient, understanding, and helpful to make this as smooth as possible.

Bob will work with the new person for at least 12 months to help with the transition. The Board is working hard to assure we will have a strong future leadership in our lead staff person.

Bob and I started in the insurance business together. He has been so much more than just a friend. In closing, to all of you, I want to say thank you for your friendship. You have been a great help to me during my career. I will carry that love in my heart forever.

It has been a privilege to serve as your President.

SUMMER 2016 |

|5

© SECURA Insurance

Let’s make sure they can spend time tending their roots.

Strong, steady growth since 1900 Commercial • Personal • Farm-Ag • Specialty

When you partner with SECURA, you’re family.

Watch: secura.net/partners

national director’s REPORT

Acknowledging There Is

“NO FREE LUNCH”

by Dean Brooks, CPCU, CLU

M

y dad had a lot of favorite expressions he was always willing to freely share, especially with me. One I heard frequently was “there’s no such thing as a free lunch”. Certainly not an original but one I often think of as it relates to our National Association.

This popular adage succinctly sends the simple message that it is impossible to get something for nothing.

By the way, while the origination of this saying is lost in time, it is often attributed to the nineteenth century practice of bars offering a free lunch of highly salted food in order to get customers to drink more. Interestingly for us folks in Iowa, the first reliably dated publication of the term was in an article in the Oelwein Daily Register in 1942 quoting Harley Lutz, a Professor of Public Finance at Princeton. Then the phrase jumped in popularity when free-market economist Milton Friedman published a book in 1975 with the adage as the title. I’m sure my dad never read the book but I know he understood the full meaning of the adage.

How does all this apply to us? One of your National Association’s primary responsibilities is acting as an advocate for your interests at the federal level in Washington. This involves national staff working year ‘round to

develop and maintain relationships with our elected representatives.

These relationships enable our staff to get audiences with key legislators to promote favorable legislation and to stop potentially unfavorable legislation before it sees the light of day.

Critical to this process is a well-funded PAC that makes contributions to elected officials who understand the importance of independent agents in their communities back home and are willing to listen to our concerns. It is of inestimable importance to have a respected PAC in Washington, and this takes a number over one million dollars. This PAC money must come from members – you! This is your livelihood, your business, your future

being protected here and it takes money. An annual InsurPAC contribution of at least $100.00, and preferably a little more, should be an expectation for every agency owner in Iowa.

Seriously, an annual PAC contribution of $200 is less than 55 cents a day. I’m talking about protecting your business and your future here. It’s a simple but true message: “There’s no such thing as a free lunch”. It is impossible to get something for nothing, especially in Washington, D.C. Look at just one program near and dear to virtually every Iowa agent – the Federal Crop Insurance Program (FCIP). Despite the success of this public-private partnership, the program continues to be in the bullseye for budget cuts which the Big “I” opposes. There are bills floating in Congress right now that would result in cuts to private sector delivery of crop insurance and would discourage farmers from purchasing adequate coverage for their farmland. Protecting crop insurance as the linchpin of the farm safety net will continue to be a priority for the Big “I”. Don’t forget there was a $3 billion cut made to the crop program in the 2016 Budget Agreement. The Big “I” opposed this cut, mobilized grassroots efforts and ultimately got the money reinstated.

The Big “I” will continue to advocate on behalf of this important risk man-

SUMMER 2016 |

|7

agement tool for farmers and ranchers across the country.

Does your agency sell health insurance? The Big “I” continues to support excluding agent compensation from the Medical Loss Ratio (MLR) formula in the Affordable Care Act and supports full repeal of the 40% “Cadillac tax” on health plans that exceed a fixed annual cost. At the end of 2015, with Big “I” support, a two-year delay of the “Cadillac tax” was enacted to move the effective date of the tax from 2018 to 2020. While not perfect, a delay is a good first step toward full repeal. Numerous pieces of bipartisan legislation have been introduced to repeal this onerous tax and the Big “I” continues to push for a full repeal.

Multi-state licensing has been a hassle for many of our members for years.

At long last, President Obama signed NARAB II into law in January of 2015.

The law authorizes the creation of a non-governmental, membership-based,

nonprofit corporation known as NARAB. NARAB creates a central clearinghouse that enables individuals and business entities wishing to join to satisfy the licensing requirements that exist in nonresident states. NARAB is overseen by a Board of Directors comprised of five private sector and eight state regulator members who are nominated by the President and confirmed by the Senate. The Big “I” has been an active player in this process and we have succeeded in getting a member agent, Angela Ripley from Maryland, nominated to the Board. Another win for independent agents everywhere!

I would like to thank those agents who accepted my InsurPAC challenge in January at the Rural Agents’ Conference. The response was truly gratifying. If you weren’t there, I pledged to match ten $100.00 new (first time) InsurPAC contributions from members. Within an hour, we had our ten new contributors, and then John Dalton stepped forward and agreed

At Partners Mutual Insurance, we have one focus: building relationships. From listening and responding to our agents’ feedback, to building selfservice online tools to make it easier to interact with us effortlessly, we believe that it is our relationships that make our company stand out from the rest.

For information about becoming a Partners Mutual Insurance Agent please contact Chuck Becker at 800.388.4764 ext. 3484.

8|

| SUMMER 2016

to do the same match for first time contributors. We had ten more step up by the next morning. So in 24 hours, we raised my $1,000, John’s $1,000 and $2,000 from first time contributors!

Great job, everyone.

Now I would like to issue a new challenge – the “no free lunch” challenge. If you haven’t contributed to InsurPac and/or the IIAI/PAC (IIAI/PAC is our state of Iowa PAC) now is the time. Both forms are on the IIAI website at www.iiaiowa.com/advocacy. No more excuses. Join me, and many of your fellow agents who have already contributed, in acknowledging there is “no free lunch”. Send in your contribution today! Thank you!

As always, I welcome your questions and comments regarding IIABA. Feel free to contact me at Miller, Fidler & Hinke Insurance Agency. My direct number is 515-868-0484 and my email is dbrooks@mfhins.com

2015 Iowa Property & Casualty Insurance Market Place Report

by Bob Skow, CPCU, CAE

O

verall 2015 *A.M. Best Report data shows independent agent market share grew by .4% compared to 2014. In the 2014 report the direct writers controlled 30.5% of the market place with independent agent companies writing 59.5%. The 2015 data shows 59.9% market share by independent agents; a trend revising last year’s growth by direct writers. However, at the expense of independent agents, direct writers witnessed an increase in their homeowners market share.

Independent agents continue their dominance in commercial lines, smashing their direct market competitors. The biggest market share gain in commercial lines was workers’ compensation with independent agents writing over 90% of the business.

12 of the top 20 carriers in the property/casualty market in Iowa showed growth, with 5 decreasing and 3 remaining statistically even. Overall loss ratio data was very interesting with the top 20 companies collectively at 94.13% in 2015 compared to 76.62% for 2014. Loss ratios in Iowa were a mixed bag, some carriers having fantastic numbers, while others looking at numbers over 100%. Coming in with great loss ratio numbers were, for example, Grinnell posting a 48%

adjuster loss ratio, followed by West Bend at 49% among the top 20 writers. But, 5 carriers posted negative numbers with a 203.7% loss ratio by QBE American Group, ACE INA Group at 197.8%, Great American P&C Group 181.2%, Farmers Mutual Hail Insurance Group at 171.6% and Wells Fargo Insurance Group 136.9% in Iowa.

Loss ratios overall for workers’ compensation improved over 2014.

The top 10 writers posted an average loss ratio of 61.39% compared to 68.56% the year before.

The Iowa specific 2015 A.M. Best data is well worth taking time to review. For example, it is apparent State Farm remains an aggressive player in personal lines with one of the largest market share increases posted.

GEICO who is a strong market player in many states is not a top 5 player in auto insurance in Iowa.

Market share data while only a 12 month snapshot, it does often reveal who is being aggressive writing new business, as well as, which lines carriers are strong in. Comparing the 2014 numbers to the 2015 can help you also identify trends. Hopefully you will find the information interesting too. *A.M. Best provides all the data for this report.

SUMMER 2016 |

|9

2015 DATA

IOWA OVERALL STATE RANKING (ALL P/C LINES)

(Direct Writers Highlighted)

2015 2014 2015 2014 2015 2014 Rank Rank Market Market Direct Written Direct Written Adjusted Adjusted 2015 Name 2014 Share Share Difference Premiums (000) Premiums (000) Difference Loss Ratio Loss Ratio Difference 1 State Farm Group

1

10.00%

9.50% 0.50%

$599,204

$574,111

$25,093.00

71

58.1

12.9

2 Allied Group 2 8.10% 8.00% 0.10% $488,679 $480,451 $8,228.00 73.1 52.2 20.9 a Nationwide Co

3 Farm Bureau 3 6.00% 6.00% 0.00% $358,796 $358,282 $514.00 91.9 70.8 21.1 P&C Group

4 Progressive Group 5 4.30% 4.10% 0.20% $258,644 $243,912 $14,732.00 65.3 65 0.3 5 ACE INA Group

4

3.50%

4.40% -0.90%

$213,249

$265,315

$(52,066.00) 197.8

6 EMC Ins Cos

6

3.40%

3.30% 0.10%

$202,282

$197,596

$4,686.00

65.9

152.1

45.7

58

7.9

7 Travelers Group 8 3.10% 3.00% 0.10% $184,236 $180,239 $3,997.00 64 45.1 18.9

8 Farmers Mutual 7 3.10% 3.20% -0.10% $183,600 $191,927 $(8,327.00) 171.6 131.3 40.3 Hail Insurance Grp

9 American Family 9 3.00% 2.90% 0.10% $180,366 $176,786 $3,580.00 63.3 53.9 9.4 Insurance Group 10 QBE Americas Grp 10

2.50%

2.90% -0.40%

$147,533

$173,476

$(25,943.00) 203.7

11 Grinnell Mutual Grp 14

2.20%

2.10% 0.10%

$130,850

$127,604

$3,246.00

48

129.1

74.6

52.9

-4.9

12 Liberty Mutual 12 2.20% 2.20% 0.00% $130,144 $134,862 $(4,718.00) 74.6 69.6 5 Insurance Cos

13 Auto-Owners 16 2.10% 2.00% 0.10% $128,019 $120,584 $7,435.00 62.4 58.6 3.8 Insurance Group

14 Great American 11 2.10% 2.50% -0.40% $127,877 $148,597 $(20,720.00) 181.2 140 41.2 P&C Group

15 American Intl 15 2.10% 2.10% 0.00% $125,988 $125,800 $188.00 72.1 56.8 15.3 Group Inc 16 West Bend Mut Ins

17

2.00%

1.80% 0.20%

$118,502

$107,425

$11,077.00

49

43.7

5.3

17 Wells Fargo Ins Grp 13

1.90%

2.20% -0.30%

$114,441

$134,670

$(20,229.00) 136.9

163.6

-26.7

18 IMT Insurance Cos

18

1.90%

1.70% 0.20%

$112,274

$104,177

$8,097.00

60.8

41.2

19.6

19 United Fire & Cas

19

1.60%

1.50% 0.10%

$97,790

$92,976

$4,814.00

67.6

38.2

29.4

20 Old Republic 22 1.60% 1.40% 0.20% $93,206 $83,561 $9,645.00 62.3 52.2 10.1

Top 20 Totals 66.70% 66.80% -0.10% $3,995,680 $4,022,351 $(26,671.00) 94.13 76.62 17.51

All Carriers 100% 100% State Totals

10 |

| SUMMER 2016

$6,012,399 $6,019,607 $(7,208.00) 86.7 73.3 13.4

2015 DATA

IOWA REGIONAL INDEPENDENT AGENCY COMPANIES

Name

2015 2015 2014 2015 2014 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Allied Group a Nationwide Co

$488,679

8.10%

8.00%

0.10%

73.1

52.2

2 Progressive Group

$258,644

4.30%

4.10%

0.20%

65.3

65

3 EMC Insurance Companies

$202,282

3.40%

3.30%

0.10%

65.9

58

7.9

4 Farmers Mutual Hail Ins Group

$183,600

3.10%

3.20%

-0.10%

171.6

131.3

40.3

5 Grinnell Mutual

$130,850

2.20%

2.10%

0.10%

48

52.9

-4.9

6 Auto-Owners Insurance Group

$128,019

2.10%

2.00%

0.10%

62.4

58.6

3.8

7 West Bend Mut Ins

$118,502

2.00%

1.80%

0.20%

49

43.7

5.3

8 IMT Insurance Cos

$112,274

1.90%

1.70%

0.20%

60.8

41.2

19.6

9 United Fire & Casualty Group

$97,790

1.60%

1.50%

0.10%

67.6

38.2

29.4

10 Endurance Spec Group

$64,461

1.10%

1.20%

-0.10%

175.3

225.2

-49.9

Top 10 Totals

$1,785,101

29.80% 28.90%

0.90%

83.90

76.63

7.27

All Carriers State Total

$2,448,994

40.70% 42.10%

-1.40%

80.2

72.39

7.81

Direct Writers 30.1%

Regional Agency Companies 40.7%

20.9 0.3

2015 STATE MARKET SHARE REGIONAL AGENCY COMPANIES NATIONAL AGENCY COMPANIES DIRECT WRITERS

National Agency Companies 29.2%

IOWA NATIONAL INDEPENDENT AGENCY COMPANIES

Name

2015 2015 2014 2015 2014 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 ACE INA Group

$213,249

3.50%

4.40% -0.90%

2 Travelers Group

$184,236

3.10%

3.00%

3 QBE Americas Group

$147,533

2.50%

2.90% -0.40%

4 Liberty Mutual Ins Cos

$130,144

2.20%

2.20%

0.00%

5 Great American P&C Group

$127,877

2.10%

2.50% -0.40%

181.2

6 American Intl Group Inc

$125,988

2.10%

2.10%

0.00%

72.1

56.8

15.3

7 Old Republic General Group

$93,206

1.60%

1.40%

0.20%

62.3

52.2

10.1

8 Cincinnati Insurance

$90,381

1.50%

1.50%

0.00%

65.2

49.4

15.8

9 Zurich Fin. Serv. NA

$82,423

1.40%

1.50% -0.10%

87.9

49.8

38.1

10 Chubb Group of Ins Cos

$62,879

1.00%

1.10% -0.10%

51.1

33.7

17.4

Top 10 Totals

$1,257,916

2.10%

2.26% -0.16%

105.99

77.78

28.21

All Carriers State Total

$1,758,473

74.69

56.93

17.76

29.20% 27.40%

0.10%

1.80%

197.8

152.1

45.7

64

45.1

18.9

203.7

129.1

74.6

74.6

69.6

5

140

SUMMER 2016 |

41.2

| 11

2015 DATA

IOWA DIRECT WRITERS

Name

2015 2015 2014 2015 2014 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 State Farm Group

$599,204

10.00%

9.50%

0.50%

71

58.1

12.9

2 Farm Bureau Mutual Group

$358,796

6.00%

6.00%

0.00%

91.9

70.8

21.1

3 American Family Insurance Group

$180,366

3.00%

2.90%

0.10%

63.3

53.9

9.4

4 Wells Fargo Insurance Group

$114,441

1.90%

2.20%

-0.30%

136.9

163.6

-26.7

5 Berkshire Hathaway

$77,925

1.30%

1.10%

0.20%

69.5

61.7

7.8

6 Allstate Insurance Group

$67,473

1.10%

1.00%

0.10%

65.9

47.3

18.6

7 Farmers Insurance Group

$64,713

1.10%

1.00%

0.10%

67.7

47.2

20.5

8 USAA Group

$40,364

0.70%

0.60%

0.10%

83.8

67.2

16.6

9 Federated Mutual Group

$35,184

0.60%

0.60%

0.00%

69.6

69.2

0.4

10 FM Global

$31,233

0.50%

0.50%

0.00%

29.8

9.4

20.4

Top 10 Totals

$1,569,699

26.20%

25.40%

0.80%

74.94

64.84

10.10

All Carriers State Total

$1,804,931

30.10%

30.50%

-0.40%

90.19

64.67

25.52

IOWA PRIVATE PASSENGER AUTO PHYSICAL DAMAGE

(DIRECT WRITERS HIGHLIGHTED)

Name

2015 2015 2014 2015 2014 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 State Farm Group

$165,298

22.20% 21.70% 0.50%

75

67.7

7.3

2 Progressive Group

$102,829

13.80% 13.50% 0.30%

74

72.8

1.2

3 Allied Group a Nationwide Co

$82,477

11.10% 11.40% -0.30%

70.8

61.7

9.1

4 Farm Bureau P&C Group

$58,687

7.90%

7.90%

0.00%

63.5

56.9

6.6

5 American Family Insurance Group $48,178

6.50%

6.70%

-0.20%

57.9

53.8

4.1

6 Grinnell Mutual Group

$33,931

4.50%

4.60%

-0.10%

66.3

64.3

2

7 IMT Insurance Company Mutual

$26,841

3.60%

3.50%

0.10%

64.9

53.6

11.3

8 Allstate Insurance Group

$24,478

3.30%

2.80%

0.50%

64.8

53.3

11.5

9 Berkshire Hathaway

$22,473

3.00% 2.90% 0.10%

94.3

80

14.3

10 Auto-Owners Insurance Group

$16,675

2.20%

66.3

64.1

2.2

Total from top 10 writers

$581,867

78.10% 77.30% 0.80%

69.78

62.82

6.96

2.30%

-0.10%

State Total For All Carriers Combined $745,785

Independent Agents 50.3%

12 |

Direct Writers 49.7%

2015 IOWA PRIVATE PASSENGER AUTO MARKET DIRECT WRITERS

| SUMMER 2016

INDEPENDENT AGENTS

(Avg.) (Avg.)

69.8 63.5 6.3

2015 DATA

IOWA OTHER PRIVATE PASSENGER AUTO (LIABILITY)

(DIRECT WRITERS HIGHLIGHTED)

Name

2015 2015 2014 2015 2014 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 State Farm Group

$156,974

21.20% 20.50%

0.70%

59.8

61.8

-2

2 Progressive Group

$130,274

17.60% 17.40%

0.20%

59.7

60.6

-0.9

3 Allied Group a Nationwide Co

$84,898

11.50% 11.70% -0.20%

59.6

57.1

2.5

4 Farm Bureau Mutual Group

$48,799

6.60%

6.70% -0.10%

60.7

61.5

-0.8

5 American Family Insurance Group $48,272

6.50%

6.50%

61.5

66.4

-4.9

6 Grinnell Mutual Group

$28,538

3.90%

4.00% -0.10%

42

48.8

-6.8

7 Berkshire Hathaway

$25,910

3.50%

3.40%

0.10%

56.4

62.9

-6.5

8 IMT Insurance Company Mutual

$22,271

3.00%

3.00%

0.00%

54.2

45

9 Allstate Insurance Group

$20,497

2.80%

2.40%

0.40%

71.9

58.4

13.5

10 Farmers Insurance Group

$15,949

2.20%

2.30% -0.10%

60.9

51.6

9.3

Total from top 10 writers

$582,382

(Avg.)

(Avg.)

57.41

1.26

State Total For All Carriers Combined

$740,461

59.8

59.6

0.2

78.80% 77.90%

0.00%

0.90%

2015 IOWA OTHER PRIVATE PASSENGER AUTO MARKET DIRECT WRITERS

INDEPENDENT AGENTS

58.67

Direct Writers 47.6%

Independent Agents 52.4%

IOWA HOMEOWNERS MULTI-PERIL

9.2

(DIRECT WRITERS HIGHLIGHTED)

Name

2015 Direct Written Premiums (000)

2015 2014 2015 2014 Market Market Adjusted Adjusted Share Share Difference Loss Ratio Loss Ratio Difference

1 State Farm Group

$184,773

26.70% 26.90% -0.20%

73

44.1

28.9

2 Allied Group a Nationwide Co

$100,510

14.50% 15.80% -1.30%

93.5

56.7

36.8

3 Farm Bureau Mutual Group

$61,297

90.1

45.7

44.4

8.80%

8.30%

0.50%

4 American Family Insurance Group $56,434

8.10% 8.00% 0.10% 71.4 40.2 31.2

5 Auto-Owners Insurance Group

$24,556

3.50%

3.50%

0.00%

89.3

68.3

21

6 IMT Insurance Company Mutual

$23,645

3.40%

3.20%

0.20%

78.4

41.1

37.3

7 Farmers Insurance Group

$19,510

2.80%

2.90% -0.10%

87.8

31.4

56.4

8 Allstate Insurance Group

$18,907

2.70%

2.70%

0.00%

62.8

34.2

28.6

9 West Bend Mutual Ins Co

$18,773

2.70%

2.50%

0.20%

63.8

57.5

10 Liberty Mutual

$15,758

2.30%

2.00%

0.30%

75.4

50

25.4

Total from top 10 writers

$524,163

46.92

31.63

75.50% 75.80% -0.30%

78.55

(Avg.)

State Total For All Carriers Combined $693,101

79.7 47.8 31.9

Independent Agents 44.4%

Direct Writers 55.6%

(Avg.)

6.3

2015 IOWA HOMEOWNERS MARKET DIRECT WRITERS

INDEPENDENT AGENTS

SUMMER 2016 |

| 13

2015 DATA

IOWA INLAND MARINE

(DIRECT WRITERS HIGHLIGHTED)

Name

2015 2015 2014 2015 2014 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Liberty Mutual Insurance Cos

$20,104

10.20%

2 Assurant P&C Group

$17,440

8.90%

3 SU Insurance Company

$10,471

5.30%

4.30%

1.00%

49.5

53.1

-3.6

4 FM Global Group

$9,292

4.70%

4.90% -0.20%

-3.1

10.8

-13.9

5 Allied Group a Nationwide Co

$9,154

4.70%

4.60%

0.10%

37.6

35.2

2.4

6 Hartford Insurance Group

$9,098

4.60%

4.20%

0.40%

61.5

55.6

5.9

7 State Farm Group

$8,674

4.40%

4.60% -0.20%

39.5

32.6

6.9

8 CNA Insurance Co

$7,880

4.00%

3.40%

0.60%

59.3

27.4

31.9

9 Travelers Group

$6,718

3.40%

3.30%

0.10%

39.3

25.3

14

10 Allianz Amer Cos

$6,324

3.20%

2.60%

0.60%

35.5

33.2

2.3

Total from top 10 writers

$105,155

36.18

3.28

0.70%

65.2

61.8

3.4

14.00% -5.10%

9.50%

10.3

26.8

-16.5

53.40% 55.40% -2.00%

39.46

(Avg.)

(Avg.)

55

40.6

State Total For All Carriers Combined $196,343

2015 IOWA INLAND MARINE MARKET DIRECT WRITERS

INDEPENDENT AGENTS

Direct Writers 17.4%

Independent Agents 82.6%

IOWA COMMERCIAL CGL/BOP LIABILITY

14.4

(DIRECT WRITERS HIGHLIGHTED)

Name

2015 2015 2014 2015 2014 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Allied Group a Nationwide Co

$12,273

10.90%

11.70%

-0.80%

49.6

34.3

15.3

2 Travelers Group

$9,889

8.80%

9.00%

-0.20%

26.2

28

-1.8

3 Auto-Owners Insurance Group

$6,811

6.10%

5.50%

0.60%

-1.6

60.9

-62.5

4 Cincinnati Insurance Companies

$6,136

5.50%

6.20%

-0.70%

78.2

9.3

68.9

5 State Farm Group

$5,383

4.80%

5.50%

-0.70%

-22.1

28.4

-50.5

6 W R Berkley Group

$4,978

4.40%

4.70%

-0.30%

42.5

34

7 Farm Bureau P&C Group

$4,694

4.20%

4.10%

0.10%

41.8

18.7

23.1

8 Philadelphia/Tokio Gp

$4,210

3.80%

3.50%

0.30%

23.3

21.9

1.4

9 Grinnell Mutual Group

$4,010

3.60%

3.70%

-0.10%

14.3

22.8

-8.5

10 QBE Americas Group

$3,645

3.20%

3.20%

0.00%

55.6

45.9

9.7

Total from top 10 writers

$62,029

30.42

0.36

33.3

1.9

55.30% 57.10% -1.80%

State Total For All Carriers Combined $112,223

2015 IOWA COMMERCIAL CGL/BOP LIABILITY DIRECT WRITERS

14 |

| SUMMER 2016

INDEPENDENT AGENTS

30.78

(Avg.)

35.2

Independent Agents 81.8%

(Avg.)

8.5

Direct Writers 18.2%

2015 DATA

IOWA WORKERS’ COMPENSATION

(DIRECT WRITERS HIGHLIGHTED)

Name

2015 2015 2014 2015 2014 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 EMC Insurance Companies

$64,666

8.60%

8.70% -0.10%

63.7

65.1

-1.4

2 Travelers Group

$57,459

7.70%

7.80% -0.10%

74.3

75.3

-1

3 Accident Fund Group

$51,089

6.80%

6.40%

65.2

65.8

-0.6

4 Liberty Mutual Insurance Cos

$40,944

5.50%

7.20% -1.70%

74

87.6

-13.6

5 Allied Group a Nationwide Co

$40,126

5.40%

5.40%

0.00%

51.1

55.3

-4.2

6 West Bend Mut Ins

$34,292

4.60%

4.20%

0.40%

51.3

51.1

0.2

7 Old Republic Ins Grp

$34,021

4.50%

3.90%

0.60%

68.9

58.4

10.5

8 United Fire & Casualty

$30,788

4.10%

4.00%

0.10%

57.4

69.6

-12.2

9 Zurich Fin Serv NA

$26,495

3.50%

4.10% -0.60%

51.4

59

10 Cincinnati Insurance Companies

$21,226

2.80%

3.00% -0.20%

56.6

98.4

Total from top 10 writers

$401,106

(Avg.)

(Avg.)

68.56

-7.17

State Total For All Carriers Combined

$748,622

63

67.5

-4.5

Independent Agents 91.3%

Direct Writers 8.7%

0.40%

53.50% 54.70% -1.20%

61.39

-7.6 -41.8

2015 IOWA WORKERS’ COMPENSATION MARKET DIRECT WRITERS

INDEPENDENT AGENTS

IOWA COMMERCIAL PROPERTY

(DIRECT WRITERS HIGHLIGHTED)

Name

2015 2015 2014 2015 2014 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Allied Group a Nationwide Co

$39,029

42.3

62.7

2 Cincinnati Insurance Companies

$16,204

6.50%

6.90% -0.40%

48.2

48.7

-0.5

3 Auto-Owners Insurance Group

$16,097

6.40%

6.00%

59.6

56.2

3.4

4 State Farm Group

$15,725

6.30%

6.60% -0.30%

67

49.6

17.4

5 Travelers Group

$15,255

6.10%

6.10%

0.00%

82.1

14.6

67.5

6 Chubb Group of Insurance Cos

$10,380

4.10%

4.30% -0.20%

46.7

20.4

26.3

7 W R Berkley Group

$10,178

4.10%

4.50% -0.40%

54

8 Grinnell Mutual Group

$9,320

3.70%

3.70%

0.00%

57.1

124.1

-67

9 Farm Bureau P&C Group

$8,383

3.30%

3.10%

0.20%

68.3

44.3

24

10 American Family

$6,942

2.80%

2.40%

0.40%

99.4

77

22.4

Total from top 10 writers

$147,513

49.8

18.94

State Total For All Carriers Combined

$251,005

46.7

35.2

15.50% 15.80% -0.30% 0.40%

58.80% 59.40% -0.60%

2015 IOWA COMMERCIAL PROPERTY MARKET DIRECT WRITERS

INDEPENDENT AGENTS

105

20.8

68.74

(Avg.)

81.9

(Avg.)

Independent Agents 81.7%

SUMMER 2016 |

33.2

Direct Writers 18.3%

| 15

2015 DATA

IOWA OTHER COMMERCIAL LIABILITY

(DIRECT WRITERS HIGHLIGHTED)

Name

2015 2015 2014 2015 2014 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Allied Group a Nationwide Co

$26,810

7.40%

7.40%

0.00%

37

24.7

2 EMC Insurance Companies

$26,267

7.30%

7.30%

0.00%

52.3

50

3 American Intl Group Inc

$23,681

6.50%

5.40%

1.10%

4 Grinnell Mutual Group

$20,381

5.60%

5.70% -0.10%

5 Travelers Group

$16,320

4.50%

4.60% -0.10%

6 United Fire & Cas Grp

$13,480

3.70%

3.80% -0.10%

7 Cincinnati Insurance Companies

$12,162

3.40%

3.70% -0.30%

8 West Bend Mut Ins

$12,044

3.30%

3.40% -0.10%

9 Zurich Fin Serv NA

$11,780

3.30%

10 Farm Bureau P&C Grp

$11,674

3.20%

Total from top 10 writers

$174,599

86

60.4

25.6

31.7

-13.4

-7.9

37.8

-45.7

74.2

-10.7

84.9

59

11.1

47.9

24.5

15.8

8.7

4.10% -0.80%

49.9

65.4

-15.5

3.30% -0.10%

20.4

31.9

-11.5

48.20% 48.70% -0.50%

41.37

(Avg.)

State Total For All Carriers Combined $361,901

44

Independent Agents 85.6%

2.3

18.3

Direct Writers 14.4%

12.3

31.81

9.56

34.5

9.5

(Avg.)

2015 IOWA OTHER COMMERCIAL LIABILITY MARKET DIRECT WRITERS

INDEPENDENT AGENTS

IOWA FEDERAL FLOOD

(DIRECT WRITERS HIGHLIGHTED)

Name

2015 2015 2014 2015 2014 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Selective Ins Group

$3,311

29.50% 27.20%

2.30%

73.9

15.9

58

2 Auto-Owners Insurance Group

$1,697

15.10% 14.60%

0.50%

81.5

38

43.5

3 Hartford Ins Group

$1,216

10.80% 13.20% -2.40%

76.2

31.2

45

4 Assurant P&C Group

$1,157

10.30%

6.80%

3.50%

30.7

11.6

19.1

5 Wright Nat Flood Ins

$1,030

9.20%

9.10%

0.10%

39.3

18.9

20.4

6 Allied Group a Nationwide Co

$1,002

8.90%

8.80%

0.10%

51.4

41.7

9.7

7 American Family Ins Group

$724

6.40%

6.20%

0.20%

24

10.3

13.7

8 Farmers Insurance Group

$244

2.20%

2.10%

0.10%

98.4

37.8

60.6

9 Allstate Insurance Group

$219

1.90%

2.00% -0.10%

68.4

33.6

34.8

10 USAA Group

$163

1.50%

1.40%

0.10%

8.3

9.3

Total from top 10 writers

$10,763

95.80% 91.40%

4.40%

(Avg.)

(Avg.)

24.83

30.38

State Total For All Carriers Combined $11,231

62.3

27.8

34.5

Independent Agents 87.2%

16 |

Direct Writers 12.8%

2015 FEDERAL FLOOD DIRECT WRITERS

| SUMMER 2016

INDEPENDENT AGENTS

55.21

-1

2015 DATA

IOWA PRODUCTS LIABILITY

(DIRECT WRITERS HIGHLIGHTED)

Name

2015 2015 2014 2015 2014 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Allied Group a Nationwide Co

$6,664

15.80% 13.00%

2.80%

8.7

28.6

-19.9

2 United Fire & Cas Grp

$5,356

12.70% 12.90% -0.20%

20.5

-21.4

41.9

3 EMC Insurance Companies

$2,869

6.80%

6.70%

0.10%

1.3

-15.4

16.7

4 Cincinnati Insurance Companies

$2,648

6.30%

6.80% -0.50%

50.9

5.7

45.2

5 Liberty Mutual Insurance Cos

$2,563

6.10%

5.60%

0.50%

-18.5

28.7

-47.2

6 Chubb Grp of Ins Cos

$1,812

4.30%

4.40% -0.10%

-6.8

42.9

-49.7

7 Grinnell Mutual

$1,394

3.30%

3.30%

0.00%

26.4

-4.4

30.8

8 Sentry Ins Group

$1,367

3.20%

2.90%

0.30%

-19.2

15.2

-34.4

9 West Bend Mut Ins

$1,302

3.10%

3.10%

0.00%

13.1

31.3

-18.2

10 Selective

$1,090

2.60%

4.00% -1.40%

-14.2

23.7

-37.9

Total from top 10 writers

$27,065

64.20% 62.70%

1.50%

State Total For All Carriers Combined $42,142

2015 PRODUCTS LIABILITY DIRECT WRITERS

INDEPENDENT AGENTS

6.22

(Avg.)

0.2

13.49

(Avg.)

30.1

-7.27 -29.9 Direct Writers 3.6%

Independent Agents 96.4%

IOWA MEDICAL PROF LIAB

(DIRECT WRITERS HIGHLIGHTED)

Name

2015 2015 2014 2015 2014 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 MMIC Ins Inc

$27,519

40.30%

41.80% -1.50%

23.6

7.4

16.2

2 American Intl Grp

$13,035

19.10%

18.20%

0.90%

18.1

33.5

-15.4

3 ProAssurance Grp

$5,189

7.60%

9.20% -1.60%

-34.7

-3.6

-31.1

4 CNA Insurance Companies

$4,593

6.70%

6.60%

-17.2

3

-20.2

5 NCMIC Group

$2,730

4.00%

4.10% -0.10%

11

42.6

-31.6

6 Berkshire Hathaway

$2,549

3.70%

3.40%

0.30%

82.9

21

61.9

7 Coverys Companies

$2,423

3.50%

2.90%

0.60%

122.3

15

107.3

8 Caring Comm RRRG

$1,550

2.30%

9 Health Care Ind RRG

$1,212

1.80%

1.70%

0.10%

53.5

55

10 ISMIE Mutual Group

$594

0.90%

0.70%

0.20%

344.5

-82.4

Total from top 10 writers

$61,394

89.90% 88.60%

1.30%

0.10%

State Total For All Carriers Combined $68,254 Independent Agents 85.3%

Direct Writers 14.7%

43.6

64.76

(Avg.)

16.3

-1.5 426.9

10.16666667 54.59 (Avg.)

5

11.3

2015 MEDICAL PROF LIAB DIRECT WRITERS

INDEPENDENT AGENTS

SUMMER 2016 |

| 17

2015 DATA

IOWA FARMOWNERS MULTI PERIL*

(DIRECT WRITERS HIGHLIGHTED)

Name

2014 2014 2013 2014 2013 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Farm Bureau P&C Group

$87,958

48.20% 48.10%

0.10%

93.8

43.2

50.6

2 Allied Group a Nationwide Co

$35,519

19.50% 19.40%

0.10%

99.7

46.8

52.9

3 State Farm Group

$18,863

10.30%

9.80%

0.50%

140.7

66.6

74.1

4 Auto-Owners Insurance Group

$6,722

3.70%

3.80%

-0.10%

125

59.4

65.6

5 American Family Ins Group

$5,114

2.80%

2.90%

-0.10%

68.8

41.2

27.6

6 Hastings Mut Ins Co

$5,081

2.80%

2.50%

0.30%

162.5

111.3

51.2

7 North Star Companies

$3,076

1.70%

1.50%

0.20%

83.7

100.5

8 Great Amer P&C Grp

$2,933

1.60%

2.10%

-0.50%

-40.5

163.5

9 SECURA Ins Companies

$2,810

1.50%

1.30%

0.20%

37.7

79.1

-41.4

10 Celina Ins Grp

$2,467

1.40%

1.50%

-0.10%

80.4

31.7

48.7

Total from top 10 writers

$170,543

93.50% 92.90%

0.60%

74.33

10.85

State Total For All Carriers Combined

$182,514

53.3

44.2

85.18

(Avg.)

97.5

(Avg.)

2015 FARMOWNERS MULTI PERIL DIRECT WRITERS INDEPENDENT AGENTS

Independent Agents *Farmowners does not reflect county 32.2%

-16.8 -204

Direct Writers 61.8%

mutual market share which combined would be the largest writer.

Call your Big “I” Errors and Omissions Team!

Three Reasons your Errors and Omission Coverage should be with your Association

W

hen it comes to your agency professional liability insurance who can you trust more than the Big “I”?

First we have membership discounts with the three main markets for agents errors and omissions insurance, second we have a team of errors and omissions professionals to assist you and help answer your questions, and third we are the only market that actively puts your association clout to work passing liability laws which help make Iowa a great place to operate your agency! So if your coverage is not with us…call and get a quote! Marilyn Paul, CPCU, AIT, AAM, CPIW; Brenda Kluger, CRM, CIC, CISR, CIIP and Megan Kincy, AIS, AINS along with CEO Bob Skow, CPCU, CAE are here to help you! 800-272-9312

Looking for E&O answers, agency resources or tips?

Check out the E&O Happens website – www.independentagent.com/eohappens Sign in with your Big “I” username and password to access the information

West Bend knows Preferred Risk Types: – Wood product manufacturers that primarily specialize in manufacturing finished wood products or components – Secondary woodworking operations that machine, cut, shape, turn, glue, finish, or otherwise work with dimensional lumber to manufacture a finished or component product

Woodworking.

At West Bend, we’re proud of our broad base of knowledge when it comes to commercial risks. Over the years, however, we’ve developed extensive expertise of certain risks and the skills needed to underwrite them.

That’s why we’re more competitive in writing these classes.

Like woodworking.

If you have a woodworking risk, contact your West Bend underwriter. We look forward to sharing our expertise with you, and providing the best coverages necessary to protect your valued customers.

A Guide To Environmental Insurance On Farms For Insurance Producers

Environmental Risk and Insurance on Farms

by Harrison Scheider

For the first time farmers need environmental impairment liability insurance to fill the insurance coverage gaps created by pollution exclusions and the new application of decades old federal environmental protection laws now applying to farming practices. The environmental risk and insurance needs of the farming community are changing fast. There were more changes in the environmental risk management picture of farms in the past year than in the past 10. Three of the most significant recent developments were: 1. The City of Des Moines Iowa is suing the agricultural drainage districts (which are owned by farmers) in three counties. The City is seeking to recover the costs of a new water treatment facility to remove nitrates from the water in the two rivers that the city depends on for its water supply. It will cost the city $100,000,000 to build a water treatment plant to deal with the agricultural based contamination of the water supply. If Iowa follows

20 |

| SUMMER 2016

the Wisconsin Supreme Court determination that the General Liability insurance policies sold to farmers do not cover contamination losses due to the operation of the Pollution Exclusion, in the absence of insurance all of the stake holders in the water districts will likely be uninsured for any part of the $100,000,000.

2. Yakima Valley Washington. In 2013 environmental groups for the first time filed lawsuits under the

federal Resource Conservation and Recovery Act (RCRA) a federal law which governs the disposal of solid and hazardous waste, against dairy farms in Yakima Valley Washington.

They filed suit against three local industrial dairy farms for ground water contamination of drinking water wells which supplied drinking water to 24,000 residents in the Yakima Valley area. This was the first time in U.S. history where RCRA was applied to farm animals along with another first in which a federal court has ruled that improperly managed manure is a solid waste, rather than a beneficial farm product. The suit was decided by settlement in January of 2015, in which the dairy farms implicated would pay for replacement, cleanup and monitoring costs of their manure storage structures and compost areas. The implicated farms also were required by settlement to fund a residential bottled water system for safe drinking water for at least two years or until nitrate contamination was deemed no longer to be of significant volume. In this case, the nitrate and manure contamination that arose out of everyday dairy farming activates were found to be harmful to human health, the farm owner’s business liability insurance policies sold to those farms included pollution exclusions and the policies’ pollution exclusions barred coverage for damage resulting from those substances.

3. The Wisconsin Supreme Court determined that damage claims resulting from spreading manure and septic tank waste on fields were excluded by the Pollution Exclusion in the General Liability insurance policies that most farmers purchase.

Longer term trends in the environmental risk management picture of farms include: 1. Advances in science increase the potential environmental liability on farms. Scientific equipment for genetic sequencing enable scientists and plaintiffs lawyers to identify the parties responsible for water contamination from fecal bacteria down to particular herd of cattle, thus creating potential liability for a single farm which was in the past considered non-point source pollution that no individual party was responsible for.

2. Farmers can expect more legal actions being pursued by the stakeholder’s that their farming operations effect. As the family farm starts looking more and more like an industrial sized “polluter”, it is becoming less and less socially acceptable to contaminate a natural resource like an aquifer, lake or

stream without adverse consequences. The “but this is just a consequence of normal farming operations” excuse for impairing the environment is going to be less and less acceptable with the passage of time. Right to Farm laws which have protected farmers in the past from nuisance lawsuits for creating strong offensive odors near residences, for example, are not “right to pollute” statutes.

These factors combined with changes in the liability insurance coverage sold to farmers, all work together to create a need for environmental risk management on the family farms and the purchase of specially modified environmental insurance.

Environmental Risks Are Impossible To Totally Avoid in Farming

ciated with farming. For example, due to historical farming operations, nitrates are found in virtually all of the drinking water wells located in farming communities in Washington. At low levels, nitrate contaminants in ground water are not thought to cause harm to mammals. However a spike in the level of nitrates can cause bodily injury, especially to infants and as one of the WI Supreme Court cases illustrated, the alleged death of a neighbors cattle.

Specially modified environmental impairment liability insurance policies for farms are needed to address the fact that nitrate contamination of groundwater is a known preexisting pollution condition in most agricultural settings. On the next page are some common unavoidable and unaddressed environmental loss exposures now of concern for your farming clients.

Continued

It is not possible for farms to avoid all environmental loss exposures asso-

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Common Uninsured Environmental Loss Exposures in Farming • Ground Water Contamination

• Surface Water Contamination

• Crop Over Spray

• Odors

• Reducing Neighboring Property Values

• Public Nuisance

• Operating or Participating in Manure Digesters

• Natural Resources Damages

• Bodily Injury from Exposure to Bacteria

• Ground Water • Fuel Storage Tanks Remediation’s

• Fertilizer Spills or Releases

• Custom Farming • Transportation Risks Operations

• Storage of Pesticides and Herbicides

Two Basic Types of Environmental Insurance for Farming Environmental insurance policies are designed to fill the coverage gaps in property and liability insurance policies created by pollution exclusions.

Continuously available for purchase since 1986, there are over one hundred different environmental insurance policies available today. There are no insurance industry standards for environmental insurance policy designs or in the actual insurance coverage the insurance policies provide. Therefore, it is necessary to properly match the environmental policy to the needs and exposures of a particular insurance buyer.

The most common environmental insurance policies used in farming risks are: • Environmental Impairment Liability – primarily insures designated locations, (a farm or leased land) the policies are sold under a broad range of brand names like Pollution Legal Liability, Site Pollution Liability, Pollution and Remediation Legal Liability and other names.

• Contractor Environmental Liability – primarily insures the described operations of the named insured, (a custom farming operation) a common brand name for this insurance is Contractors Pollution Legal liability (CPL).

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Obtaining Environmental Insurance Coverage There are not many markets at this time for environmental insurance.

ARMR, who I am with, has created a simplified application process for farmers and their vendors. The specialized insurance application for farming risks is only 2 pages long. The two critical rating factors for EIL policies on farms are Animals Unit equivalents and acreage. EIL applications should contain a complete description of the land and operations to be insured under the policy. Those locations including participation in manure digester projects can be insured under the covered locations in an EIL policy. For EIL policies we are requiring that the farmer have a State Nutrient Management Plan in place. It is preferred if that plan is prepared by an independent Certified Crop Advisor.

Insurance agents are encouraged to consult with a farm specialist at ARMR before completing any applications for environmental insurance. Please contact American Risk Management Resources Network LLC at 608-836-9590 to discuss your customer’s environmental insurance needs. For farming risks we will need to know: 1. Total acres owned or leased 2. Animal Units 3. For custom applicators or other contractors, the total annual revenue of the firm.

About the Author: Harrison Scheider is a whole sale environmental insurance broker at American Risk Management Resources in Middleton WI. Harrison specializes in helping clients and independent insurance agents navigate the increasingly complex landscape of environmental insurance by providing an understanding of environmental risks, determining appropriate risk management practices, and identifying environmental insurance solutions for his clients. With his experience in the environmental insurance industry, and his hand in the development of the first environmental insurance product developed specifically for farming risks, Harrison was awarded nationally by Insurance Business America Magazine in 2015 as a 2015 Insurance Industry Young Gun, a 2015 Top 10 Producer, and a 2016 Insurance Industry Hot 100. As Assistant Vice President Harrison looks to help promote ARMR as the leading environmental insurance brokerage firm in the country.

He can be contacted at: Harrison W. Scheider American Risk Management Resources Network, LLC hscheider@armr.net Direct: 608-836-9521

Provide more than protection for your clients. Offer them the added value of EMC’s no-fee loss control services, which could help reduce the cost of their insurance. It’s just one of the many reasons policyholders Count on EMC ®.

MIKE DUFFIELD Risk Improvement Manager EMC Des Moines Branch

REDUCING LOSSES ADDS

VALUE FOR CLIENTS. DES MOINES BRANCH OFFICE Phone: 800-362-2227 | Home Office: Des Moines, IA

www.emcins.com ©Copyright Employers Mutual Casualty Company 2016. All rights reserved.

Big “I” Washington DC Trip Sixteen Iowa agents recently made the trip to Washington, D.C. to meet with Iowa’s Congressional delegate’s to discuss issues of importance to agents, crop, health and flood insurance, along with concerns about Federal regulations were high on the list. IIAI members saw all six Iowa members: Senators Grassley and Ernst and Representatives King, Loebsack, Young and Blum.

BURNS & YES, WE CAN DO THAT

WILCOX

ACCESS IS OUR MIDDLE NAME. Our access to the widest range of domestic and international carriers means you can say yes to almost any hard-to-place risk. Give your clients what they want to hear with Burns & Wilcox.

Minneapolis, Minnesota | 612.564.1880 toll free 800.328.1693 | fax 612.564.1881 minneapolis.burnsandwilcox.com Milwaukee, Wisconsin | 262.347.0266 toll free 800.544.5700 | fax 262.347.0440 milwaukee.burnsandwilcox.com Commercial | Professional | Personal | Brokerage Binding | Risk Management Services

Independent

Insurance Agents of Iowa

2016 IIAI Agent / Company Meeting Report Each year IIAI Company and Public Relations / Trusted ChoiceÂŽ Committee meets with a group of companies to discuss topics of interest to agents. The following four companies met with IIAI members in May, 2016.

Their reports follow.

In Support of Independent Agents EMC distributes its products solely through the independent agency system, which helps bring a superior level of personalized service to the insurance process. To show its support of independent agents, EMC is a part of the Trusted Choice® brand initiative and remains committed to the Big “I”.

EMC was presented with the Best Practices Award of Excellence at the Big “I” Leadership Conference earlier this year. EMC is one of only six companies in the country to receive this award, which recognizes imaginative, outstanding and unique contributions in advocating Best Practices philosophies that enhance the independent agency system.

Left to Right: Jason Bogart, Senior Vice President Branch Operations, John Schumacher, Resident Vice President Branch Manager.

EMC Insurance Companies REACHING HIGHER FOR OUR POLICYHOLDERS AND AGENTS EMC Insurance Companies is in the top 50 property/casualty organizations in the United States and is one of the largest property/casualty companies in Iowa, based on net written premium. Organized in 1911 to write workers’ compensation protection in Iowa, EMC now offers property and casualty insurance products and services throughout the United States and writes reinsurance contracts worldwide. EMC has been in business for 105 years and is rated A (Excellent) by A.M. Best, the premier insurance credit rating organization.

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EMC’s success is directly tied to the success of its agents, so the Des Moines Branch team members make sure they are working with the best. When considering new agency appointments or when reviewing annual agency reviews, each situation is evaluated individually. Some of the top criteria include having outside sales people, being a member of the Big “I”, having an investment in technology and the ability to meet premium requirements. “The bottom line is, can we be mutually successful if we enter into or remain in a partnership with this agency?” said John Schumacher, EMC Resident Vice President and Des Moines Branch Manager.

Commercial Lines In 2015, EMC had premium growth in nearly every major line of commercial business, which makes up about 90 percent of the company’s book of business. Commercial auto grew 7.5 percent, general liability grew 6.2 percent and commercial

property grew 6 percent. Overall, commercial lines premium growth was 5.6 percent.

According to Schumacher, growth will become increasingly more difficult due to the flattening rate environment. Growth expectations are different for each agency, but the Des Moines Branch is anticipating 3 percent growth overall with a five-year plan to grow premium from $195 million to $225 million.

“We plan to accomplish this by remaining stable and consistent in our appetite, taking advantage of our niches and placing an increased emphasis on main street business” said Schumacher.

The niches Schumacher is referring to are some of the most successful commercial programs offered by the Des Moines Branch, which include safety groups for Iowa schools, municipalities and petroleum marketers. “Each program has a knowledgeable managing agent who brings value to the programs, and each pays a dividend for favorable loss experience, which encourages safety and offers the potential of return premiums,” adds Schumacher.

Another growing commercial EMC product is CyberSolutions, a robust product that combines cyber liability and data compromise coverages. EMC first introduced CyberSolutions in 2015, making the company one of the first in the country to offer this comprehensive coverage. Since then, EMC has written nearly 1,330 new policies countrywide. CyberSolutions gives policyholders protection for the costs associated with data restoration, data re-creation, system restoration, loss of business, public relations services and network security liability.

Employment Practices Liability coverage, available by endorsement from EMC, is another popular product because it pays for the liability damages and defense costs due to employment discrimination, wrongful termination or harassment claims brought by full-time, part-time, temporary and seasonal employees.

Personal Lines and Life EMC doesn’t just focus on coverage for commercial policyholders.

The company has a newly structured and energized Personal Lines Operations team that is creating more tailored home and auto coverages, as well as other personal insurance products for our agents to offer their clients.

EMC National Life Company (EMCNL), an affiliate of EMC, offers a variety of life insurance and annuity products for individuals and insurance products for businesses to make available to their employees. Planning for final expenses, covering debts or leaving a legacy can be difficult.

With simpler processes, EMCNL has made it easier for agents to ask their customers about life insurance. EMCNL’s Just Ask program helps agents identify when to ask, what to ask and provides appropriate insurance solutions.

Loss Control and Claims Another way that EMC helps provide solutions is through loss control services. The company’s experienced loss control professionals provide policyholders with

suggestions and solutions that can lessen their risks, usually at no additional cost. In 2015, EMC loss control staff visited more than 550 agencies to share how our loss control services can benefit both the policyholder and the agent.

Over 14,000 on-site surveys were completed by our loss control professionals last year, including slip, trip and fall prevention reviews, industrial hygiene surveys and indoor air quality assessments.

Although loss control services can help reduce the risk of claims, losses still happen. That’s why EMC’s primary goal is to handle claims as fairly and quickly as possible, regardless of the type or size of the claim. In an independent survey, our policyholders gave EMC’s claim service a score of 4.72 on a 5-point scale, which is a 94 percent satisfaction rate. We monitor and measure how long it takes us to make the first contact with a policyholder after a claim is filed. For the last five years, we’ve shortened the average time, proving that we work to give our policyholders responsive service.

Focus on Agent EMC is helping its agents succeed in 2016 by improving quote turnaround times and supporting paperless efforts with policy downloads. EMC also helps train agents on new systems, holds regional sales meetings, makes regular agency visits and hosts an orientation for new Iowa producers. “Any insurance company can issue policies, but EMC wants to give our policyholders and agents more,” said EMC President and Chief Executive Officer Bruce Kelley. “We’re continuously reaching higher to make working with EMC the best experience it can be for our agents.”

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What YOU do is what WE protect.

Want the opportunity to grow your business in niche industries?

BITCO is your perfect partner. We’ll help you get new clients and protect them with the best insurance for their industry.

We offer you the industry experience and in-depth knowledge that attracts new customers. You can count on us for 100% support including local underwriting delivery, proactive risk control services, premium audit functions and efficient claims handling – all on a personal level.

Des Moines Branch Office 1200 Valley West Drive, Suite 600 West Des Moines, Iowa 50266 515-223-1122 or 800-383-1122 Fax 515-223-4315

www.BITCO.com

Insurance contracts are underwritten and issued by one or more of the following: BITCO General Insurance Corporation and BITCO National Insurance Company, rated A+(Superior) by A.M. Best, A2 Stable by Moody’s, and A+ Strong by Standard and Poor’s.”

Programs for:

General Contractors Transportation Construction Contractors Utility Construction Contractors Land Improvement Contractors

Construction Materials Suppliers On Shore Oil & Gas Extraction Forest Products Manufacturers and Wholesalers & Distributors All programs may not be available in all states.

Stable Profitable Growth Hastings Mutual prides itself on maintaining financial soundness regardless of the surrounding economic climate. Overall, the state of Iowa grew by 15% in 2015 while the company as a whole grew 3.5%. The expectation is that Iowa will continue to grow, particularly in commercial and personal lines, throughout the next several years.

Left to Right: Tom Becker, Regional Marketing Manager, Carl Lickley, Vice PresidentMarketing, Joe Babiak, President & CEO, Bill Gregor, Vice President-Insurance Operations.

Contributing to successful, sustained growth is a focus on underwriting profitability in addition to strong partnerships with agents who are proven experts in their field. Appointed agencies have strong backgrounds in commercial and farm lines, have a proven history in the insurance industry, and have a well-developed mix of business. Currently, 38 of the 638 Hastings Mutual appointed agencies are in the state of Iowa.

Continuous Improvement

Hastings Mutual Insurance Company 125 YEARS OF EXCELLENCE Hastings Mutual Insurance Company, an award winning, regional property casualty insurance company offers top quality commercial, farm, and personal insurance products to customers through a network of independent agents.  Located in Hastings, Michigan since being founded in 1885, Hastings Mutual writes business in six Midwest states including Michigan, Ohio, Indiana, Illinois, Wisconsin and Iowa.

A balanced corporate strategy at Hastings Mutual focuses on superior financial strength, implementing emerging technologies, and product innovation. Exceptional employees dedicated to providing exceptional customer service contribute to the company’s success and industry recognition.

In order to maintain growth, continuous improvements and enhancements must be made to remain competitive. One of the top priorities at Hastings Mutual is continuous improvement in service. As a company, agency feedback is solicited through staff/agency relationships, Agent Advisory Councils, and Spring Meetings. This feedback is used to drive corporate strategy in alignment with continuous improvement/enhancement. This improvement/enhancement is accomplished in a number of ways including: faster response times, increased automation, education and increased number of product offerings.

In 2015, the Commercial Lines Eligibility Guide was expanded by an additional 40 classes of

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that assists agents in providing the best products and services for their insureds.

business by capitalizing on the knowledge and expertise of Hastings Mutual employees to satisfy the needs of agency partners.

Agent education is critical to maintaining a competitive advantage in the marketplace and developing successful, long-term partnerships. Agents can receive training through a variety of methods to best suit their needs such as; monthly training/product webinars, Lunch and Learns, Spring Agency meetings, and access to knowledgeable staff. Recently developed and implemented was an Advanced Farm School training that combined classroom style learning about farm product and underwriting guidelines, along with “real world� experience at several working farms. Students were able to see the visual appli-

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cations of the classroom materials demonstrated in an actual farm setting. Additionally, recognizing that early success strengthens long-term partnerships, all new agents appointed to Hastings Mutual receive personalized training within the first month of appointment and beyond.

Relationships It is all about the relationships at Hastings Mutual. The relationships between the insured and the agent, the agent and Hastings Mutual employees, the agent and their community; these are at the heart of what sets Hastings Mutual apart from others in the industry. Each agency has a dedicated Hastings Mutual team comprised of underwriters, loss control consultants, claim representatives and marketing managers. This team approach builds a solid relationship

Giving back to the communities in which agency partners serve is another example of the importance of relationships. Building strong communities and a sense of belonging to a strong community is essential for thriving business and quality of life. Hastings Mutual partners with their independent agents to give back to their local communities through a variety of events such as county fairs, awareness activities, sporting events and various holiday celebrations. In addition, the Charitable Foundation, funded by Hastings Mutual, provides opportunities for partner agencies to sponsor a charitable cause or beneficiary with matching funds from the Foundation.

Exceptional people providing exceptional service through a network of strong, collaborative agency partnerships is a cornerstone of Hastings Mutual’s 130+ years of success. A strong past provides the foundation for an exciting, innovative future!

Steadfast Commitment

Left to Right: Rich Naumn, Vice President-Marketing, Sean Kennedy, President & CEO, Brad Bachanan, Vice President-Personal Lines.

BE WORRY FREE WITH IMT For 132 years, the “Be Worry Free with IMT” company has been making people whole again after a loss. That is the very essence of our being, and one we believe we do well. Today, our core values remain at the center of our business. The success of The IMT Group is attributed to our culture; the heart and soul of our company deeply defined by our values. Our values are the principles that guide consistent behavior, conduct, decision making and actions.

We understand the importance of partnerships, focusing on people by building trust and strong, stable relationships with our agents and policyholders. With the Independent Insurance Agent serving as the backbone of our business and high-touch customer service acting as a foundation of our business, we take pride in the accessibility we offer our Independent Agents as we are willing to listen and assist whenever necessary. We practice providing the best possible customer experience every day. We are there for our partners and employees when they need us; people helping people.

Our focus on a positive customer service experience is created through a collaborative environment, constantly being innovative, preparing our agents and team members by continually developing our skills and knowledge, and staying positively engaged in our communities. Much of our continued growth and success can be attributed to the loyalty of our exceptional IMT Agents and policyholders.

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In January of 1884, J.B. Herriman formed The Iowa Mutual, Tornado, Cyclone and Windstorm Insurance Association in Wadena, Iowa, to provide wind and tornado insurance to farmers. In 1970, the company changed its name to IMT Insurance Company (Mutual). The IMT Group was formed in 2007 and is comprised of IMT Insurance Company and Wadena Insurance Company. We continue to provide a strong line of personal and commercial products for which we have always been known for to families and businesses of the Midwest. We are very proud of our Midwest heritage. Our roots are firmly planted in the country’s Heartland, operating our home office from West Des Moines, Iowa.

The companies that comprise The IMT Group continue to be financially strong companies in 2016, both receiving an A (Excellent) Rating by A.M. Best. Our excellent independent agency force of over 960 agencies has allowed us to experience growth for the ninth consecutive year, increasing our direct written premium 10% in 2015. We are seeking another strong growth rate in 2016, aiming for growth of 9% overall in our six state writing territory of Iowa, Illinois, Minnesota, Nebraska, South Dakota and Wisconsin. We have experienced our biggest growth in Minnesota, Nebraska and Illinois recently, although Iowa also continues to provide steady growth of over 7%. Approximately 55% of our current book of business comes from Iowa. Our goal is to be one of the best, not necessarily the biggest.

Mutually Benefitting Culture It’s the simple things that differentiate us from our competitors.

We are a Midwest regional mutual company that values our relationships with Independent Insurance Agents and enjoy what we do. We also strongly believe that in order to be successful, you must enjoy what you are doing. We like to have fun! Our friendly, family-oriented employees carry the same Midwest values that our agents and insureds carry. Our agents know they can contact any of us at The IMT Group at any time.

We have received Top Workplace awards for Midsized Companies in Iowa the previous three consecutive years. We received the #5 Top Workplace award in 2015, #2 award in 2014, and #4 award in 2013. This recognition illustrates the fun, flexible, and fair work environment we believe in.

We believe knowledge breeds success; therefore, we put a huge emphasis on continuing education at The IMT Group. IMT currently has 67 employees that have obtained their CPCU, with several others who are working towards obtaining this prestigious designation.

Proactively Planning for the Future We continue to search and appoint small to mid-sized, established agencies in areas in which we are not already saturated and that show strong growth potential. Over the last five years, we have appointed 273 agencies. Our agents can count on assistance and dedication from us in all areas of their agency, including hands-on training and continuing education to better serve their policyhold-

ers. In addition, all new agencies receive personalized training from their IMT Territory Manager. We recognize the commitment and effort of our agents by paying top-of-the line commissions. We have an established, top-notch profit sharing program that is also available for our agencies. The Independent Agent is our partner and primary customer. If they do well, we do well.

We have established a great relationship with the farm mutuals across our territories as approximately 53% of our business is written by agencies that are affiliated with farm mutuals.

The agencies place the property with the mutual; IMT then writes the liability and other lines of insurance – providing a win-win situation for both parties.

Exceptional Products are our Priority “Ease of doing business” has been the driving force for The IMT Group’s continued success. In 2007, Wadena Insurance Company was formed, offering a top-of-the-line auto system. We continue to make doing business with us easy as we developed and released an online Wadena ISO Businessowners program and an online General Liability program in 2012 and 2015, respectively.

Commercial Auto, along with other commercial lines, will follow.

This is due to a broadening of our commercial lines appetite as we continue to focus on enhancing our commercial products and systems.

Our current book of business is approximately 72% personal lines and 28% commercial lines. Even with the focus on expanding our commercial lines appetite, we have not forgotten about personal lines as we are currently developing a new Homeowners system, which

will utilize a new by-peril homeowners rating philosophy.

Technology is a vital part of our business at IMT. We develop and maintain our own policy systems – all from our home office. Our systems are company-tested and agent-approved, as we invite agents to view the program and give feedback before completing and releasing the system entirely.

Along with new commercial products, we are working to keep on top of the competitive insurance market through real-time, automated systems. We continue to advance with changes in technology by offering the option for a consumer to get an instant personal auto quote from our website through their local Independent Agent.

We recognize the important role digital plays in our industry. We have established ourselves on Facebook, LinkedIn, and YouTube.

We also have a mobile footprint by developing mobile apps for our policyholders and agents. Our Worry Free® app allows policyholders to submit an auto claim immediately, pay their bill, access policy limits, retrieve agency information, view an auto ID Card, call for Roadside Assistance, and locate a nearby auto repair shop, gas station, tow truck, etc.

Technology has created many opportunities for our agency force, including the ability to access policyholder information while on-the-go. Our agent mobile app, IMT Link, allows an IMT Group Agent to perform a customer search, submit photos to underwriting, access and email insured policy information, view claim details, contact IMT Group representatives, and much more!

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Partners in the Community It’s no secret many lifelong Independent Agents in Iowa are nearing retirement, causing an item of concern for all parties involved in the industry. We’re working to involve and engage the young agency force that has decided to start a career in this great industry. In addition, we will work with any of our agencies to develop and/or maintain a perpetuation plan.

Our commitment does not stop with our agents. The IMT Group lends a hand, as well as, contributes financial donations to a countless number of organizations in and around our writing states.

We recognize the importance of commitment to the community; offering all employees paid time off for volunteering. In return, The

IMT Group employees are actively involved in supporting our community, participating in various volunteer events in and around our writing states.

We’re fortunate to be in a position where we can continue to grow.

We currently employ just over 280 employees throughout our writing territory. People buy their insur-

ance from Independent Agents because they know them, like them and trust them. That is exactly the same reason Independent Agents do business with The IMT Group.

We’ve got an eye on the past and a keen sense for the future, continuing to live up to our slogan, “Be Worry Free with IMT!”

Why ARM? Is an ARM membership right for your agency? Here are some of the benefits our members enjoy: • Complete independence: Retain your name, your contracts and control of your business.

• Exclusive programs and products: Tap into hundreds of storefronts, thousands of salespeople and a network of expertise from pre-screened members with solid reputations.

• Strong partnerships: Take advantage of ARM Partners, the unique business relationship between ARM and Arthur J. Gallagher & Co. that provides ARM agencies with preferred, streamlined access to the resources and business divisions of one of the world’s largest insurance brokers.

• Robust communications platform: Access products, resources and expertise across the entire ARM network.

• Local and regional support: Join forces with agencies in your state to develop and foster programs that fit your needs through low-cost regional membership.

• Increased return of value: Improve your access to markets, industry knowledge and business strategies that can deliver a significant return. Access select programs, such as premium financing, flood and RPS specialty markets that offer enhanced revenue opportunities only to members.

• Your voice in the association: Help shape the organization by attending meetings, serving on committees and participating in network events.

ARM is targeting successful independent retail agencies in your area, with $1,000,000 or more in agency revenue, whose books are driven primarily by commercial P&C business. If this describes your agency, and you’d like to find out more, visit www.ARMIweb.com or contact Scott Spangler, ARM Executive Director, at scott.spangler@armiweb.com or 630.285.4324.

15ARM28271B

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A Diverse Set of Business Segments

Left to Right: Chris Cline, Distribution Specialist Leader, Craig Welsh, Group Distribution Leader, Mike Prandi, Insurance Operations Leader.

Westfield Insurance SHARING KNOWLEDGE, BUILDING TRUST Founded by eight farmers in 1848, Westfield Insurance has a long history and is well positioned for future success. A diversity of business segments, dedication to the agency system, commitment to the customer and continued investments in future capabilities are components that will position us to continue to be a successful carrier for the benefit of our customers and agencies. Westfield carefully selects their partners and has established a small group of highly successful agencies. We look for agency partners who are financially successful, have a similar operating philosophy and are well equipped for future success.

We feel that despite the challenges that we all face in a changing marketplace; there are customers who will continue to value working with a local, independent agent. Westfield believes that agencies that are prepared for the future by investing in perpetuation, hiring new talent, implementing digital marketing strategies, and developing other key capabilities are well positioned to succeed in a changing marketplace.

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Westfield offers solutions for personal lines, small commercial, middle market, agribusiness and surety. Personal Lines is primarily focused on package business and we have a long standing WesPak policy that meets the home and auto needs of our customers. We also offer a WesPak Estate program that is geared toward higher net worth customers. Westfield is committed to personal lines and has been successful in growing this class of business corporately over the past several years. Small Business is focused on a wide range of classes and we consider ourselves true generalists. We can write anything from a contractor to manufacturers to some habitational exposures. Overall, agents can come to us with a variety of risks and we consider that a differentiator in the market. Middle Market continues to be a target area of new business and we see success by deploying a collaborative approach where underwriting, claims and risk control work closely with the agent and customer to fully understand their business and risks. The Westfield Surety operation is celebrating their 60th year of doing business and we have a strong contract surety offering as well as a growing commercial surety portfolio. Agribusiness is a significant niche for Westfield and it is a natural fit for a company that started by insuring farm properties over 160 years ago. Today, the Agribusiness division is focused on a wide variety of exposures including food processing operations and other larger complex agribusiness operations. In addition, Westfield has a desire to write monoline workers’ compensation for larger accounts in over 100 class codes.

Local Presence and Expertise Westfield prides itself on having outstanding people who are located close to our agents and customers. Our Des Moines office is staffed with mid market, surety and agribusiness field managers, risk control staff and a talented group of claims professionals. We feel the expertise, knowledge and tenure of our local staff provides a great advantage for Westfield in the state of Iowa.

Our Valued Business Partners We have a long history of working with the independent agency system and we continue to believe that this will continue to be the dominant way to best sell and service our products. We value our independent agency relationships and we recognize that we all face challenges from a variety of sources including digital and technological advances, continued influence of data, and changes in consumer preferences. We also recognize that agencies who can navigate these challenges will build on the advantage that they already have as local businesses who can offer their customers choice and expertise. We also invest heavily in understanding every Westfield agency through our agency review process.

Through this process, we gather information on not only an agency’s historic performance with Westfield, but we also develop deeper levels of understanding about the total operations of our agency partners. We feel that if our agencies are healthy, we’re healthy. Westfield has a sincere belief in the agency system, and we have a long history of strong partnerships.

Investing in the Independent Agency System Westfield is committed to promoting the viability of the agency system through support of a variety of programs at both the state and national level. Westfield has been a long time supporter of programs such as InVEST, Agency Best Practices and Trusted Choice®. We feel that all of these programs are critical to the continued success of the agency system since they address some specific needs in the areas of recruiting, benchmarking agency performance and helping to provide for a common customer experience.

Additionally, Westfield is one of the original investors in TrusteChoice. com and we are excited to see this service develop for the benefit of thousands of independent agents. If you follow the amount of traffic and referrals that are being generated today by TrustedChoice. com, we feel that they have reached a turning point and have established a growing and viable model. We feel that it is a great tool for agencies who want to start on the journey of digital marketing,

but it also can enhance an agency that already has a more robust digital capabilities.

Offering Services and Expertise for the Agency System Westfield Bank was established over 10 years ago with a strong presence in Northeast Ohio offering commercial and personal banking products. Today, Westfield Bank is a leader in providing agency banking solutions to agencies across the country. The agency banking team has a great deal of expertise and understands the unique banking needs of the independent agent. Our focus is in three areas – agency loans, premium finance and cash management.

Additionally, Westfield Services offers various services for our agency partners including a personal and small commercial service center, a wholesale brokerage firm and our flood program. We feel that the agency solutions offered

by Westfield Bank and Westfield Services further our commitment and support of the agency system.

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Morgan De Groot Dan & Sheila De Groot Treimer’s Insurance Hartley, Iowa

Jack Glienke Mark & Keila Glienke GOES Insurance Services Alta, Iowa

IIAI’S 2016 Scholarship Winners

Garrett Nichols Brad & Marci Nichols Nichols Insurance Agency Marshalltown, Iowa

Logan Schaben Gary & Jackie Schaben Schaben Insurance & Financial, Inc. Panama, Iowa

Harrison Densmore Mark Densmore Densmore Insurance Strategies, Inc. Ankeny, Iowa

Ashley McKenna Gary McKenna Van Eschen-Strong Insurance Agency Vinton, Iowa

Independent

Insurance Agents of Iowa

SUCCESS

Together

IOWA INSURANCE HALL OF FAME 2 0 1 6

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s

Each year the Iowa Insurance Hall of Fame inducts 5 insurance professionals who have made outstanding contributions to the Iowa insurance industry. A selection committee evaluates nominations on standards including ethics and impact on the industry. To be eligible for consideration, nominees must have an Iowa connection, serve as a role model for young people as well as others in the insurance business, exhibit the highest standards of ethical conduct and have significantly impacted the insurance industry. To learn more about nominating someone for the Iowa Insurance Hall of Fame visit http://www.iihof.org/

The Honorees were *James R. Mumford, Jon P. Newsome, Dana Ramundt, Larry Reelitz, and JoAnn Rumelhart. *Posthumously

BIG “I� VISITS GRINNELL MUTUAL IIAI President Jerry Mease, President-elect Eldon Hunsicker, Board Member Dave Rowley along with CEO Bob Skow recently visited the home office of Grinnell Mutual Insurance Company. The group discussed a number of topics and insurance related issues with the Grinnell leadership. Pictured with Grinnell Mutual Leadership.

SUMMER 2016 |

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2016

Young Agents Highlights 2016 Iowa Young Agents Conference set a record for attendance! Attendees heard four outstanding speakers covering communications, selling, cyber liability and personal lines issues. One of the highlights was the agent/company mixer. Plans for 2017 are already in the works – so watch for dates in the future for this great event!

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| SUMMER 2016

You’re an independent agent.

Do you trust your pit crew?

The Big “I” Professional Liability Program Protect.

Prosper.

Prevent.

Our risk management resources keep your agency from making common preventable mistakes.

Our superior coverage and expert claims teams are in your corner in the event of a claim.

When you know you have the best E&O protection, you can focus on growing your most important asset–your business.

The Big “I” and Swiss Re are jointly committed to providing IIABA members with leading edge agency E&O products and services. The IIABA and its federation of 51 state associations endorse Swiss Re’s comprehensive professional liability program.

www.independentagent.com/EO

Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas.

Westport is a member of the Swiss Re group of companies and is licensed in all 50 states and the District of Columbia. ©2014 Swiss Re Corporate Solutions

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

PRSRT STD U.S. Postage Paid Des Moines, IA Permit No. 2538

2016

INDEPENDENT INSURANCE AGENTS OF IOWA PROGRAMS SPONSORS A special thank you to the following sponsors for supporting IIAI’S Conferences and Programs in 2016.

PLATINUM

GOLD

Allied Insurance EMC Insurance Companies The IMT Group Independent Agents Service Corporation Iowa Mutual Insurance Company Progressive United Fire Group

AAA Minnesota/Iowa Continential Western Insurance Co. Grinnell Mutual Reinsurance

BRONZE Accident Fund/United Heartland Acuity Auto-Owners Insurance Columbia Insurance Group Diversified Crop Insurance Services Farmers Mutual Hail Insurance Company Hastings Mutual Insurance Company

S I LV E R ADM Crop Risk Services ASI Underwriters Corp Concorde General Agency Great American Insurance Companies GuideOne Insurance Imperial PFS LeMars Insurance Company Merchants Bonding Company Partners Mutual Insurance Company Pekin Insurance QBE - NAU

International Ag Insurance Solutions Liberty Mutual Insurance M.J. Kelly Company of Iowa Markel FirstComp North Star Mutual Insurance Company ProAg Rain & Hail Insurance Services SECURA Insurance Selective Insurance Company

Society Insurance State Auto Insurance Travelers Insurance West Bend Mutual Insurance Company Western National Insurance Westfield Insurance

Independent

Insurance Agents of Iowa