2015 Summer Viewpoint Magazine

SUMMER 2015 • VOLUME 33 • ISSUE 3 INDEPENDENT INSURANCE AGENTS OF IOWA

Tue s

day

LOOKING TO THE FUTURE TECHNICAL ADVOCACY 2014 IOWA INSURANCE MARKET SHARE REPORT RACING INTO THE FUTURE IIAI ANNUAL PLANNING BIG “I” GOES TO WASHINGTON BIG “I” JUNIOR GOLF TOURNAMENT IOWA INSURANCE HALL OF FAME THE DRONES ARE COMING…BUT, THEY MAY NOT BE INSURED IIAI SCHOLARSHIP WINNERS CREATING ACHIEVABLE GOALS AND OBJECTIVES 3 BIG BENEFITS OF A VIRTUAL AGENCY YOUNG AGENTS CONFERENCE

ARE YOU totally

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PRESIDENT’S REPORT Looking To The Future

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 Editor Melissa Meiners

BOARD OF DIRECTORS President Scott Morningstar, CPCU - Lisbon

President-Elect Jerry Mease - Winterset

Treasurer Eldon Hunsicker - Ottumwa

National Director Dean Brooks, CPCU, CLU, ALCM West Des Moines

Some of the obstacles are new. Some of the obstacles have been around as long as I have been in the business. As Trusted Choice® agents we will find a way to persevere. Our industry is constantly changing. We will change with it.

by Scott Morningstar, CPCU Page 5

NATIONAL DIRECTOR’S REPORT Technical Advocacy Is Truly A Member Driven “Bottom Up” Function!

“This advocacy benefits not only members but also the insuring public as well by broadening or clarifying wording in the policies they buy and rely on every day”

2014 Iowa Insurance Market Share Report

By Bob Skow, CPCU, CAE

by Dean Brooks, CPCU, CLU, ALCM Page 7

Page 21

Past President Terry McDonald, CIC - Iowa City

IIAI OFFICE STAFF

ADVERTISERS We would like to thank our advertisers for their support. This magazine would not be possible without them.

THANK YOU! 6 Amerisafe 36 Big “I” Flood Program 47 Big “I” Professional Liability 10 EMC Insurance Co.

Bob Skow, CPCU, CAE bob@iiaiowa.org

38 Errors and Omissions Team

Director of Membership Operations & Education

2 The IMT Group

32 Grinnell Mutual

Melissa Meiners melissa@iiaiowa.org • Ext. 15

29 Integrity Insurance

Technology & Communications Coordinator

11 Merchants Bonding Co.

Nicole Peffers nicole@iiaiowa.org • Ext. 17

8 Pekin Insurance

Membership Services Coordinator

46 West Bend

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

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

Racing Into The Future IIAI Annual Planning Big “I” Goes To Washington

Chief Executive Officer

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

Page 11

Page 30

Directors Terry Friedman, CPCU - Dubuque 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

In This Issue

9 Iowa Mutual Insurance Co. 11 M.J. Kelly Company 35 SECURA Insurance Co. 4 Western National Insurance

Page 33

Big “I” Junior Golf Tournament Page 34

Iowa Insurance Hall Of Fame Page 34

The DRONES Are Coming…

But, They May Not Be Insured

By Stuart Powell, CPCU, CIC, CLU, ARM, CHFC, AMIM, AAI, ARE, CRIS Page 37

IIAI Scholarship Winners Page 39

Creating Achievable Goals And Objectives

By Al Diamond Page 40

3 Big Benefits Of A Virtual Agency

By Steve Anderson Page 42

Young Agents Conference Page 44

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

Looking To The

FUTURE T

his is my last article as the 109th president of the Independent Insurance Agents of Iowa. How time flies when you stay busy. I have really enjoyed my year as president. The IIAI staff is second to none. They truly do an exceptional job making our association run smoothly.

When you see them at the convention, show them your appreciation.

The IIAI spring planning session in May was very successful. Several members answered our call by becoming committee members for the first time. Our association is strengthened by the participation and ideas of its members.

Looking to the future, our industry has many changes to navigate through.

Here are some of the obstacles I see that concern me.

1) Health Insurance. Health Insurance as we knew it prior to the Affordable Care Act is forever changed, never to return.

Government will have a say in what coverage you buy and will penalize those who do not follow the rules. Insurance agents offer sound advice and are still involved in the process of selling health insurance. We need to maintain and improve our position in the health insurance buying process. I believe we, as agents, satisfy a need to a very complicated product.

by Scott Morningstar, CPCU

2) Commoditization of Personal Lines Insurance. As an agent, I feel we bring value to the insurance product. There are insurance companies that think we serve no purpose. These are also the companies that are trying to make insurance a commodity.

Not all policies are equal. Not all insurance companies are equal.

It is our job to explain the differences. Agents have been taken out of the underwriting process by technology. However, we still have the ability to create personal relationships and educate our customers. Insurance is not a commodity.

“Our Association is strengthened by the participation and ideas of its members”

3) Strengthening Agent/Company Relations. Our company partners are constantly placing additional demands on their agents. Lowering commissions, limiting profit share, shifting work load and increasing volume requirements are just a few.

Furthermore, some companies are utilizing alternative distribution channels. These should all be concerns of the independent agent. If we are truly partners in this relationship, agents should be included in the decision making process. Solving these issues can happen as long as the lines of communication remain open.

Some of the obstacles are new.

Some of the obstacles have been around as long as I have been in the business. As Trusted Choice® agents we will find a way to persevere. Our industry is constantly changing. We will change with it.

I hope to see everyone at this year’s convention. We have a new venue and some great programs. Here’s to “Racing into the Future”.

SUMMER 2015 |

|5

national director’s REPORT

TECHNICAL ADVOCACY Is Truly A Member Driven “Bottom Up” Function!

O

ver the past forty plus years, I‘ve had the opportunity to see first-hand all of the great things IIABA does for agency members.

While member benefits are many and varied, I firmly believe one of our most important and significant activities is technical advocacy for insurance coverage improvements with ISO, AAIS, NCCI, ACORD, and various insurance trade organizations. This advocacy benefits not only members but also the insuring public as well by broadening or clarifying wording in the policies they buy and rely on every day.

IIABA has a long history of technical coverage advocacy dating back well over fifty years. Many years ago, our association had committees that addressed specific lines of coverage, including a personal lines committee, commercial lines committee, farm/ agri-business committee, flood task force, Federal crop insurance task force, and a Technical Conference Committee, sort of a master committee of the committees over all of these areas. Dating back to the 1950’s and going forward, members of these committees were significant participants in drafting the first Homeowners policy, the prototype umbrella policy, the first agency contract with the Federal Crop Insurance Corporation (FCIC), and the massive transition in 1985 to

by Dean Brooks, CPCU, CLU, ALCM from members around the country then meets with ISO in early June at their New Jersey office to discuss these coverage deficiencies and to recommend improvements. TAC also maintains regular contact with NCCI, AAIS and ACORD to represent member agencies on a broad spectrum of technical coverage issues.

Many of the Technical Affairs Committee agenda items come from the Mid-America Insurance Conference (formerly the Mid-America Technical Conference), a regional organization comprised of independent insurance agents from 20 states who volunteer their time and technical expertise to the ISO Commercial Package Portfolio, plow through the fine print of insurwith special emphasis on the converance policies, looking for coverage sion from the 1973 deficiencies or fuzzy Comprehensive coverage areas “This advocacy benefits not General Liability adversely affectonly members but also policy to the ing the insurance the insuring public as well by Commercial General consumer. These broadening or clarifying Liability policy. issues and recomwording in the policies Several years ago, mended solutions they buy and rely on in order to streamare discussed with every day” line the national ISO, NCCI, ACORD committee strucand company repreture and reduce expenses, the “line sentatives in attendance at the MAIC specific” committees were eliminated annual regional meeting each fall. and the Technical Affairs Committee Many of these agenda items find their assumed primary responsibility for all way to the national TAC agenda. lines of coverage. This committee each The agenda items for the MAIC bubyear prepares an extensive agenda ble up from the state level, typically of detailed coverage issues collected from the respective Technical commit-

SUMMER 2015 |

|7

tees of the state associations, such as we have here in Iowa. In addition to analyzing coverage issues on an ongoing basis, the committee tracks ISO and NCCI filings and monitors court decisions that may adversely impact coverage for the consumer. Also, some of the best agenda items come from real life claim denials our member agents (you!) have experienced where coverage was either lacking or in dispute. Input from any member agent is vitally important, and in fact is actively encouraged. If you have a coverage Many of the current and past technical suggestion, feel free to send it to me committee members who are coverage or to Bob Skow at our state office. We experts volunteer their time to answer will see it gets forwarded to the proper your questions. Simply go the IIABA place for review. Technical advocacy website, look for “Virtual University” is truly a member driven “bottom up” and under that you will find the “Ask function!

An Expert” tab with instructions for Speaking of member driven, rememsubmitting a question. ber that you have a great source for I have long maintained that techanswers to coverage questions and nical advocacy by member agents policy interpretations available from through the IIABA makes us far and the free “Ask An Expert” service away the best consumer advocates in Coverages_Iowa 7.5 x 4.9167 11/26/14 8:10 AM the Page 1 provided by our- national association. country on insurance matters. Our

long history of relentless advocacy for improvements in forms and processes has made the insurance products we sell of greater benefit for the insurance consumer.

If you have any questions or comments about your association, please contact me anytime at your convenience. My email is dbrooks@mfhins. com and my direct line at Miller Fidler Hinke Insurance is 515-868-0484.

I look forward to talking with you.

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| SUMMER 2015

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2014 Iowa Insurance

roughly half of the private passenger business and 45% of the homeowners market.

Commercial lines remained solidly in the control of Independent Agents with control over 85% of the business.

Loss ratios over all improved by 3%, with the top 20 carriers improving by almost 6%. The direct market carriers collectively did not do as well with a slight increase in loss ratio from 64.14% to 64.67% or a .53% increase.

Private passenger auto loss ratios were up, as were homeowners.

GEICO which has not had the kind of growth in Iowa that they have in many other states did the largest market share growth in Iowa’s private passenger auto share for 2014.

The 2014 market share report is worth your time to study over. It shows you who is being aggressive, who is experiencing favorable loss ratios and who are the key markets in specific lines of business. We hope you find the data useful.

MARKET SHARE Report

by Bob Skow, CPCU, CAE

I

n each summer issue of IIAI’s Viewpoint Magazine we publish A.M. Best data on Iowa’s insurance market place for the previous year.

2014 data, for the first time in over a decade, saw direct writers market share in Iowa grow. In 2013, direct writers had 29.5% of the Iowa market, and that jumped up 1% to 30.5% of the market. The other interesting item to note from the data is Regional Independent Agency companies grew

by a half of a percent, which translates into the National Independent Agent companies lost 1.5% of their business.

The largest growth by carriers in the top 20 was Wells Fargo Insurance Group, which vaulted up 4 spots from 17th to 30th largest market share carrier. The biggest drop in market share was AIG who went from 12th in last year’s ranking down 3 spots to 15.

Independent Agents basically held their own in personal lines with

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SUMMER 2015 |

| 11

2014 DATA

IOWA OVERALL STATE RANKING (ALL P/C LINES)

(Direct Writers Highlighted)

2014 2013 2014 2013 2014 2013 Rank Rank Market Market Direct Written Direct Written Adjusted Adjusted 2014 Name 2013 Share Share Difference Premiums (000) Premiums (000) Difference Loss Ratio Loss Ratio Difference 1 State Farm Group

1

9.50%

9.50%

0.00%

$574,111

$546,109

$28,002.00

58.1

52.2

5.9

2 Allied Group 2 8.00% 8.20% -0.20% $480,451 $470,223 $10,228.00 52.2 53.8 -1.6 a Nationwide Co

3 Farm Bureau 3 6.00% 5.90% 0.10% $358,282 $336,995 $21,287.00 70.8 83.1 -12.3 P&C Group 4 ACE INA Group

4

4.40%

4.60%

-0.20%

$265,315

$263,992

$1,323.00

152.1

180.8

-28.7

5 Progressive Group 5 4.10% 4.00% 0.10% $243,912 $231,588 $12,324.00 65 59.5 5.5 6 EMC Ins Cos

7

3.30%

3.30%

0.00%

$197,596

$187,785

$9,811.00

58

49.3

8.7

7 Farmers Mutual 6 3.20% 3.30% -0.10% $191,927 $188,396 $3,531.00 131.3 196 -64.7 Hail Insurance Grp

8 Travelers Group 9 3.00% 3.00% 0.00% $180,239 $169,694 $10,545.00 45.1 48 -2.9

9 American Family 10 2.90% 2.80% 0.10% $176,786 $161,205 $15,581.00 53.9 50.4 3.5 Insurance Group 10 QBE Americas Grp 8

2.90%

3.00%

-0.10%

$173,476

$174,370

$(894.00)

129.1

189.4

-60.3

11 Great American 11 2.50% 2.60% -0.10% $148,597 $150,385 $(1,788.00) 140 101.8 38.2 P&C Group

12 Liberty Mutual 13 2.20% 2.30% -0.10% $134,862 $130,839 $4,023.00 69.6 55.9 13.7 Insurance Cos 13 Wells Fargo Ins Grp 17

2.20%

1.60%

0.60%

$134,670

$93,354

$41,316.00

163.6

222.8

-59.2

14 Grinnell Mutual Grp 14

2.10%

2.10%

0.00%

$127,604

$121,366

$6,238.00

52.9

48.3

4.6

15 American Intl 12 2.10% 2.60% -0.50% $125,800 $147,997 $(22,197.00) 56.8 57.3 -0.5 Group Inc

16 Auto-Owners 15 2.00% 2.00% 0.00% $120,584 $113,443 $7,141.00 58.6 44.1 14.5 Insurance Group 17 West Bend Mut Ins

18

1.80%

1.60%

0.20%

$107,425

$91,934

$15,491.00

43.7

42.9

0.8

18 IMT Insurance Cos

16

1.70%

1.60%

0.10%

$104,177

$94,073

$10,104.00

41.2

37.8

3.4

19 United Fire & Cas

20

1.50%

1.50%

0.00%

$92,976

$83,906

$9,070.00

38.2

37.2

1

20 Cincinnati 1.50% 1.50% 0.00% $92,229 $84,094 $8,135.00 49.4 37.7 11.7 Top 20 Totals

66.90% 67.00% -0.10%

$4,031,019

$3,841,748

$189,271.00 76.48

82.42

All Carriers

State Totals 100% 100% $6,019,607 $5,746,379 $273,228.00 73.3 76.3

12 |

| SUMMER 2015

-5.93 -3

IOWA REGIONAL INDEPENDENT AGENCY COMPANIES

Name

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

1 Allied Group a Nationwide Co

$480,451

8.00%

8.20% -0.20%

52.2

53.8

-1.6

2 Progressive Group

$243,912

4.10%

4.00%

0.10%

65

59.5

5.5

3 EMC Insurance Companies

$197,596

3.30%

3.30%

0.00%

4 Farmers Mutual Hail Ins Group

$191,927

3.20%

3.30% -0.10%

5 Grinnell Mutual

$127,604

2.10%

2.10%

0.00%

52.9

48.3

4.6

6 Auto-Owners Insurance Group

$120,584

2.00%

2.00%

0.00%

58.6

44.1

14.5

7 West Bend Mut Ins

$107,425

1.80%

1.60%

0.20%

43.7

42.9

0.8

8 IMT Insurance Cos

$104,177

1.70%

1.60%

0.10%

41.2

37.8

3.4

9 United Fire & Casualty Group

$92,976

1.50%

1.50%

0.00%

38.2

37.2

1

10 Endurance Spec Group

$74,705

1.20%

1.10%

0.10%

225.2

179.2

46

Top 10 Totals

$1,741,357

28.90%

28.70%

0.20%

76.63

74.81

1.82

All Carriers State Total

$2,533,119

42.10%

41.60%

0.50%

72.39

74.18

-1.79

Direct Writers 30.5%

Regional Agency Companies 42.1%

58

49.3

131.3

196

8.7 -64.7

2014 STATE MARKET SHARE REGIONAL AGENCY COMPANIES NATIONAL AGENCY COMPANIES DIRECT WRITERS

National Agency Companies 27.4%

IOWA NATIONAL INDEPENDENT AGENCY COMPANIES

Name

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

1 ACE INA Group

$265,315

4.40%

4.60% -0.20%

152.1

180.8

-28.7

2 Travelers Group

$180,239

3.00%

3.00%

0.00%

45.1

48

-2.9

3 QBE Americas Group

$173,476

2.90%

3.00% -0.10%

129.1

189.4

-60.3

4 Great American P&C Group

$148,597

2.50%

2.60% -0.10%

140

101.8

38.2

5 Liberty Mutual Ins Cos

$134,862

2.20%

2.30% -0.10%

69.6

55.9

13.7

6 American Intl Group Inc

$125,800

2.10%

2.60% -0.50%

56.8

57.3

-0.5

7 Cincinnati Insurance

$92,229

1.50%

1.50%

0.00%

49.4

37.7

11.7

8 Zurich Fin. Serv. NA

$89,307

1.50%

1.50%

0.00%

49.8

42.4

7.4

9 Old Republic General Group

$83,561

1.40%

1.30%

0.10%

52.2

46.2

6

10 Chubb Group of Ins Cos

$63,449

1.10%

1.10%

0.00%

33.7

59.3

-25.6

Top 10 Totals

$1,356,835

2.26%

2.35% -0.09%

77.78

81.88

-4.10

All Carriers State Total

$1,652,814

27.40%

28.90% -1.50%

56.93

54.27

2.66

SUMMER 2015 |

| 13

2014 DATA

IOWA DIRECT WRITERS

Name

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

1 State Farm Group

$574,111

9.50%

9.50%

0.00%

58.1

52.2

5.9

2 Farm Bureau Mutual Group

$358,282

6.00%

5.90%

0.10%

70.8

83.1

-12.3

3 American Family Insurance Group $176,786

2.90%

2.80%

0.10%

53.9

50.4

3.5

4 Wells Fargo Insurance Group

$134,670

2.20%

1.60%

0.60%

163.6

222.8

-59.2

5 Berkshire Hathaway

$68,129

1.10%

1.00%

0.10%

61.7

42.7

19

6 Farmers Insurance Group

$62,862

1.00%

1.10% -0.10%

47.2

44.8

7 Allstate Insurance Group

$58,757

1.00%

0.90%

0.10%

47.3

8 CUMIS Ins Society Group

$39,052

0.60%

0.60%

0.00%

141.1

9 USAA Group

$36,908

0.60%

0.60%

0.00%

67.2

62.1

5.1

10 Federated Mutual Group

$36,758

0.60%

0.60%

0.00%

69.2

76.6

-7.4

Top 10 Totals

$1,546,315

25.50% 24.60%

0.90%

78.01

80.30

-2.29

All Carriers State Total

$1,833,675

30.50% 29.50%

1.00%

64.67

64.14

0.53

IOWA PRIVATE PASSENGER AUTO PHYSICAL DAMAGE

2.4

40.3 128

7 13.1

(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 State Farm Group

$153,561

21.70%

21.40%

0.30%

67.7

55.7

2 Progressive Group

$95,904

13.50%

13.20%

0.30%

72.8

66.5

6.3

3 Allied Group a Nationwide Co

$81,027

11.40%

12.10% -0.70%

61.7

54

7.7

4 Farm Bureau P&C Group

$56,257

7.90%

8.10% -0.20%

56.9

53.1

3.8

5 American Family Insurance Group $47,620

6.70%

6.80% -0.10%

53.8

49.4

4.4

6 Grinnell Mutual Group

$32,393

4.60%

4.60%

0.00%

64.3

58.8

5.5

7 IMT Insurance Company Mutual

$25,053

3.50%

3.40%

0.10%

53.6

52.4

1.2

8 Berkshire Hathaway

$20,482

2.90%

2.60%

0.30%

80

66.8

13.2

9 Allstate Insurance Group

$20,111

2.80%

2.60%

0.20%

53.3

40.9

12.4

10 Auto-Owners Insurance Group

$16,448

2.30%

2.40% -0.10%

64.1

55.3

8.8

Total from top 10 writers

$548,856

62.82

55.29

7.53

State Total For All Carriers Combined

$708,415

63.5

55.9

7.6

77.30% 77.20% 0.10%

Independent Agents 50.3%

14 |

Direct Writers 49.7%

2014 IOWA PRIVATE PASSENGER AUTO MARKET DIRECT WRITERS

| SUMMER 2015

INDEPENDENT AGENTS

(Avg.)

(Avg.)

12

IOWA OTHER PRIVATE PASSENGER AUTO (LIABILITY)

(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 State Farm Group

$147,351

20.50% 20.50%

0.00%

61.8

54

7.8

2 Progressive Group

$125,146

17.40% 17.10%

0.30%

60.6

55.3

5.3

3 Allied Group a Nationwide Co

$84,053

11.70% 12.10% -0.40%

57.1

62.2

-5.1

4 Farm Bureau Mutual Group

$48,317

6.70%

7.00% -0.30%

61.5

53.3

8.2

5 American Family Insurance Group

$46,910

6.50%

6.30%

0.20%

66.4

72.3

-5.9

6 Grinnell Mutual Group

$28,893

4.00%

4.10% -0.10%

48.8

40.9

7.9

7 Berkshire Hathaway

$24,219

3.40%

3.00%

0.40%

62.9

57.5

5.4

8 IMT Insurance Company Mutual

$21,616

3.00%

3.00%

0.00%

45

50.3

-5.3

9 Allstate Insurance Group

$17,585

2.40%

2.10%

0.30%

58.4

57.5

0.9

10 Farmers Insurance Group

$16,487

2.30%

2.40% -0.10%

51.6

40.9

10.7

Total from top 10 writers

$560,577

57.41

54.42

2.99

State Total For All Carriers Combined

$718,888

59.6

56.3

3.3

77.90% 77.60%

0.30%

2014 IOWA OTHER PRIVATE PASSENGER AUTO MARKET DIRECT WRITERS

INDEPENDENT AGENTS

(Avg.)

(Avg.)

Direct Writers 48.3%

Independent Agents 51.7%

IOWA HOMEOWNERS 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 State Farm Group

$180,070

26.90% 26.80%

0.10%

44.1

42.5

1.6

2 Allied Group a Nationwide Co

$105,358

15.80% 16.40% -0.60%

56.7

48.8

7.9

3 Farm Bureau Mutual Group

$55,681

8.30%

8.10%

0.20%

45.7

45.2

0.5

4 American Family Insurance Group $53,640

8.00%

7.10%

0.90%

40.2

28.1

12.1

5 Auto-Owners Insurance Group

$23,652

3.50%

3.70% -0.20%

68.3

26.5

41.8

6 IMT Insurance Company Mutual

$21,109

3.20%

2.90%

0.30%

41.1

34.2

6.9

7 Farmers Insurance Group

$19,089

2.90%

2.90%

0.00%

31.4

45.4

8 Allstate Insurance Group

$17,784

2.70%

2.70%

0.00%

34.2

28.3

5.9

9 West Bend Mutual Ins Co

$16,550

2.50%

2.30%

0.20%

57.5

38.1

19.4

10 Pekin Insurance Group

$15,431

2.30%

2.40% -0.10%

57.7

60.9

-3.2

Total from top 10 writers

$508,364

(Avg.)

47.69

39.8

7.89

State Total For All Carriers Combined $668,447

47.8

41.9

5.9

Independent Agents 45%

Direct Writers 55%

76.10% 75.30%

0.80%

-14

(Avg.)

2014 IOWA HOMEOWNERS MARKET DIRECT WRITERS

INDEPENDENT AGENTS

SUMMER 2015 |

| 15

2014 DATA

IOWA INLAND MARINE

(DIRECT WRITERS HIGHLIGHTED)

Name

2014 20143 2013 2014 2013 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Assurant P&C Group

$27,053

26.8

18.3

8.5

2 Liberty Mutual Insurance Cos

$18,335

9.50%

9.40%

0.10%

61.8

44.2

17.6

3 FM Global Group

$9,478

4.90%

5.40% -0.50%

10.8

0.2

10.6

4 State Farm Group

$8,922

4.60%

5.00% -0.40%

32.6

31

5 Allied Group a Nationwide Co

$8,793

4.60%

5.00% -0.40%

35.2

39.2

-4

6 Swiss Reinsurance

$8,639

4.50%

3.70%

0.80%

116.7

27.1

89.6

7 SU Insurance Company

$8,290

4.30%

3.50%

0.80%

53.1

55.3

-2.2

8 Hartford Insurance Group

$8,172

4.20%

5.10% -0.90%

55.6

45.7

9.9

9 CNA Insurance Co

$6,509

3.40%

3.20%

0.20%

27.4

50.7

-23.3

10 Travelers Group

$6,413

3.30%

3.70% -0.40%

25.3

27.1

-1.8

Total from top 10 writers

$110,604

33.88

10.65

State Total For All Carriers Combined

$192,956

14.00% 15.30% -1.30%

57.30% 59.30% -2.00%

2014 IOWA INLAND MARINE MARKET DIRECT WRITERS

INDEPENDENT AGENTS

44.53

(Avg.)

1.6

(Avg.)

40.6 40.3

Direct Writers 19.1%

Independent Agents 80.9%

IOWA COMMERCIAL CGL/BOP LIABILITY

0.3

(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 Allied Group a Nationwide Co

$12,593

11.70%

12.70%

-1.00%

2 Travelers Group

$9,658

9.00%

8.20%

0.80%

3 Cincinnati Insurance Companies

$6,636

6.20%

5.40%

0.80%

4 Auto-Owners Insurance Group

$5,916

5.50%

6.40%

-0.90%

5 State Farm Group

$5,894

5.50%

5.10%

0.40%

28.4

45

-16.6

6 W R Berkley Group

$5,101

4.70%

4.90%

-0.20%

34

68.1

-34.1

7 Farm Bureau P&C Group

$4,407

4.10%

3.80%

0.30%

18.7

32.3

-13.6

8 Grinnell Mutual Group

$3,941

3.70%

4.10%

-0.40%

22.8

35.1

-12.3

9 Philadelphia/Tokio Gp

$3,807

3.50%

3.70%

-0.20%

21.9

3.1

18.8

10 QBE Americas Group

$3,479

3.20%

4.70%

-1.50%

45.9

51.9

-6

Total from top 10 writers

$61,432

(Avg.)

31.12

-0.70

State Total For All Carriers Combined

$107,491

33.3 30.6 2.7

57.10% 59.00% -1.90%

2014 IOWA COMMERCIAL CGL/BOP LIABILITY DIRECT WRITERS

16 |

| SUMMER 2015

INDEPENDENT AGENTS

34.3

26

8.3

28

23.6

4.4

9.3

34.7

-25.4

60.9

-8.6

69.5

30.42

Independent Agents 82.2%

(Avg.)

Direct Writers 17.8%

IOWA WORKERS’ COMPENSATION

(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 EMC Insurance Companies

$63,116

8.70%

8.60%

0.10%

65.1

59.8

5.3

2 Travelers Group

$56,294

7.80%

7.10%

0.70%

75.3

80.6

-5.3

3 Liberty Mutual Insurance Cos

$51,925

7.20%

8.10% -0.90%

87.6

72.4

15.2

4 Accident Fund Group

$46,713

6.40%

7.40% -1.00%

65.8

61.6

4.2

5 Allied Group a Nationwide Co

$39,140

5.40%

5.80% -0.40%

55.3

85.3

6 West Bend Mut Ins

$30,666

4.20%

3.40%

0.80%

51.1

58.4

-7.3

7 Zurich Fin Serv NA

$29,445

4.10%

4.10%

0.00%

59

80.5

-21.5

8 United Fire & Casualty

$29,335

4.00%

3.90%

0.10%

69.6

70.7

-1.1

9 Old Republic Ins Grp

$28,228

3.90%

3.30%

0.60%

58.4

54.7

3.7

10 Cincinnati Insurance Companies

$21,885

3.00%

3.00%

0.00%

98.4

77.9

20.5

Total from top 10 writers

$396,747

54.70% 54.70%

0.00%

68.56

70.19

-1.63

67.5

69.1

-1.6

State Total For All Carriers Combined $724,799

Independent Agents 89.5%

Direct Writers 10.5%

(Avg.)

(Avg.)

-30

2014 IOWA WORKERS’ COMPENSATION MARKET DIRECT WRITERS

INDEPENDENT AGENTS

IOWA COMMERCIAL PROPERTY

(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 Allied Group a Nationwide Co

$38,189

0.80%

42.3

54.4

-12.1

2 Cincinnati Insurance Companies

$16,717

6.90%

6.50%

0.40%

48.7

24.1

24.6

3 State Farm Group

$16,100

6.60%

6.40%

0.20%

49.6

30.5

19.1

4 Travelers Group

$14,731

6.10%

6.20% -0.10%

14.6

24

-9.4

5 Auto-Owners Insurance Group

$14,627

6.00%

5.10%

0.90%

56.2

85.2

-29

6 W R Berkley Group

$10,915

4.50%

4.80% -0.30%

20.8

61.1

-40.3

7 Chubb Group of Insurance Cos

$10,488

4.30%

4.60% -0.30%

20.4

226.1

-205.7

8 Grinnell Mutual Group

$8,984

3.70%

3.50%

0.20%

124.1

35.6

88.5

9 Farm Bureau P&C Group

$7,443

3.10%

3.00%

0.10%

44.3

33.8

10.5

10 QBE Americas Group

$7,106

2.90%

3.70% -0.80%

43.4

37.3

6.1

Total from top 10 writers

$145,300

61.21

-14.77

State Total For All Carriers Combined

$242,444

15.80% 15.00%

59.90% 58.80%

1.10%

2014 IOWA COMMERCIAL PROPERTY MARKET DIRECT WRITERS

INDEPENDENT AGENTS

46.44

(Avg.)

(Avg.)

46.7 54.4 -7.7

Independent Agents 82.3%

SUMMER 2015 |

Direct Writers 17.7%

| 17

2014 DATA

IOWA OTHER COMMERCIAL LIABILITY

(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 Allied Group a Nationwide Co

$25,144

7.40%

7.20%

0.20%

24.7

10.9

13.8

2 EMC Insurance Companies

$24,643

7.30%

6.80%

0.50%

50

52.7

-2.7

3 Grinnell Mutual Group

$19,292

5.70%

5.30%

0.40%

31.7

39.3

-7.6

4 American Intl Group Inc

$18,397

5.40% 12.10% -6.70%

60.4

51.6

8.8

5 Travelers Group

$15,407

4.60%

4.40%

0.20%

37.8

26.3

11.5

6 Zurich Fin Serv NA

$13,783

4.10%

3.60%

0.50%

65.4

37

28.4

7 United Fire & Cas Grp

$12,852

3.80%

3.50%

0.30%

-10.7

8.8

-19.5

8 Cincinnati Insurance Companies

$12,567

3.70%

3.50%

0.20%

11.1

-7.8

18.9

9 West Bend Mut Ins

$11,459

3.40%

3.20%

0.20%

15.8

16.8

-1

10 State Farm Group

$11,101

3.30%

3.20%

0.10%

64.1

57.4

6.7

Total from top 10 writers

$164,645

35.03

29.3

5.73

34.5

31.3

3.2

48.70% 52.80% -4.10%

State Total For All Carriers Combined $338,436 Direct Writers 15%

Independent Agents 85%

(Avg.)

(Avg.)

2014 IOWA OTHER COMMERCIAL LIABILITY MARKET DIRECT WRITERS

INDEPENDENT AGENTS

IOWA FEDERAL FLOOD

(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 Selective Ins Group

$3,064

27.20% 28.40% -1.20%

15.9

2 Auto-Owners Insurance Group

$1,650

14.60% 14.50%

38

3 Hartford Ins Group

$1,483

13.20% 12.30%

0.90%

4 WRM America Group

$1,021

9.10%

3.00%

6.10%

5 Allied Group a Nationwide Co

$988

8.80%

8.10%

0.70%

41.7

1.1

6 Assurant P&C Group

$766

6.80%

6.80%

0.00%

11.6

21.6

-10

7 American Family Ins Group

$703

6.20%

5.90%

0.30%

10.3

79.6

-69.3

8 Travelers Group

$578

5.10%

5.70% -0.60%

34.1

11.1

23

9 Farmers Insurance Group

$235

2.10%

2.00%

0.10%

37.8

10 Allstate Insurance Group

$226

2.00%

2.20% -0.20%

33.6

Total from top 10 writers

$10,714

95.10% 88.90%

0.10%

6.20%

9.8

6.1

19.2

18.8

31.2

25.1

6.1

18.9

11

7.9

27.31

(Avg.)

State Total For All Carriers Combined $11,267

27.8

Independent Agents 87.5%

18 |

Direct Writers 12.5%

2014 FEDERAL FLOOD DIRECT WRITERS

| SUMMER 2015

INDEPENDENT AGENTS

-17

40.6

54.8

-7.9

41.5

15.36

11.95

25

2.8

(Avg.)

IOWA PRODUCTS LIABILITY

(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 Allied Group a Nationwide Co

$5,069

13.00% 12.20%

0.80%

28.6

24.8

3.8

2 United Fire & Cas Grp

$5,037

12.90% 12.80%

0.10%

-21.4

1.4

-22.8

3 Cincinnati Insurance Companies

$2,656

6.80%

6.80%

0.00%

5.7

5.1

0.6

4 EMC Insurance Companies

$2,631

6.70%

7.00% -0.30%

-15.4

-4.5

-10.9

5 Liberty Mutual Insurance Cos

$2,194

5.60%

4.80%

0.80%

28.7

97.4

-68.7

6 Chubb Grp of Ins Cos

$1,733

4.40%

4.30%

0.10%

42.9

-2.6

45.5

7 Hartford Ins Grp

$1,562

4.00%

3.40%

0.60%

23.7

1.4

22.3

8 Grinnell Mutual

$1,281

3.30%

3.00%

0.30%

-4.4

-16.9

12.5

9 West Bend Mut Ins

$1,198

3.10%

2.60%

0.50%

31.3

19.1

12.2

10 Sentry Ins Group

$1,143

2.90%

2.70%

0.20%

15.2

128.1

-112.9

Total from top 10 writers

$24,504

62.70% 59.60%

3.10%

State Total For All Carriers Combined $39,058

2014 PRODUCTS LIABILITY DIRECT WRITERS

INDEPENDENT AGENTS

13.49

(Avg.)

30.1

25.33

(Avg.)

33.3

-11.84 -3.2 Direct Writers 8%

Independent Agents 92%

IOWA MEDICAL PROF LIAB

(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 MMIC Ins Inc

$28,281

41.80% 40.40%

1.40%

7.4

74.6

-67.2

2 American Intl Grp

$12,344

18.20% 17.60%

0.60%

33.5

27.6

5.9

3 ProAssurance Grp

$6,205

9.20%

9.70% -0.50%

-3.6

54.2

-57.8

4 CNA Insurance Companies

$4,502

6.60%

6.90% -0.30%

3

49.3

-46.3

5 NCMIC Group

$2,791

4.10% 4.00% 0.10% 42.6 13.8 28.8

6 Berkshire Hathaway

$2,276

3.40%

3.10%

0.30%

21

-21.3

42.3

7 Coverys Companies

$1,950

2.90%

2.10%

0.80%

15

128.6

-113.6

8 Health Care Ind RRG

$1,130

1.70%

1.70%

0.00%

55

66.1

-11.1

9 Nat Group

$543

0.80% 0.80% 0.00% 9.7 0.3 9.4

10 ISMIE Mutual Group

$495

0.70%

Total from top 10 writers

$60,517

0.80% -0.10%

89.40% 87.10%

2.30%

State Total For All Carriers Combined $67,735 Independent Agents 87.6%

Direct Writers 12.4%

-82.4 10.12

(Avg.)

5

391.9

-474.3

78.51

-68.39

48.6

-43.6

(Avg.)

2014 MEDICAL PROF LIAB DIRECT WRITERS

INDEPENDENT AGENTS

SUMMER 2015 |

| 19

2014 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

$80,046

48.10% 48.00%

0.10%

43.2

55.7

-12.5

2 Allied Group a Nationwide Co

$32,246

19.40% 19.60% -0.20%

46.8

63

-16.2

3 State Farm Group

$16,375

9.80% 10.10% -0.30%

66.6

86.4

-19.8

4 Auto-Owners Insurance Group

$6,243

3.80%

3.90% -0.10%

59.4

57

5 American Family Ins Group

$4,846

2.90%

3.00% -0.10%

41.2

79.3

-38.1

6 Hastings Mut Ins Co

$4,230

2.50%

1.90%

0.60%

111.3

115.2

-3.9

7 Great Amer P&C Grp

$3,516

2.10%

2.00%

0.10%

163.5

33.7

129.8

8 Westfield Grp

$3,183

1.90%

1.90%

0.00%

18.9

38

-19.1

9 Celina Ins Grp

$2,521

1.50%

1.60% -0.10%

31.7

36.9

-5.2

10 North Star Companies

$2,441

1.50%

1.20%

0.30%

50

50.5

Total from top 10 writers

$155,647

93.50% 93.20%

0.30%

State Total For All Carriers Combined

$166,336

100.5 68.31

(Avg.)

61.52

(Avg.)

2.4

6.79

53.3 60.9 -7.6

2014

BUYUP CAT TOTAL INSURANCE PROVIDER PREMIUM PREMIUM PREMIUM

2014 FARMOWNERS MULTI PERIL DIRECT WRITERS INDEPENDENT AGENTS *Farmowners does not reflect county mutual market share which combined would be the largest writer.

Independent Agents 38.5%

Direct Writers 61.5%

Rain and hail L.L.C.

1,927,671,357

68,709,958

1,996,381,315

Rural Community Insurance Services

1,874,099,305

47,279,569

1,921,378,874

NAU Country Insurance Company

1,307,729,876

23,015,232

1,330,745,108

Great American Insurance Company

833,748,742

15,687,322

849,436,064

ARMtech Insurance Services, Inc.

784,366,635

18,432,942

802,799,577

CGB Diversified Services

518,647,573

8,706,391

527,353,964

Pro Ag Management, Inc.

487,701,317

22,549,229

510,250,546

Farmers Mutual Hail Insurance Company of Iowa

389,365,672

3,413,132

392,778,804

John Deere Risk Protection, Inc.

379,035,573

5,752,306

384,787,879

ADM Crop Risk Services

376,086,929

4,088,311

380,175,240

Hudson Insurance Company

228,374,558

5,728,497

234,103,055

Heartland Crop Insurance, Inc.

175,580,630

1,337,636

176,918,266

AgriLogic Insurance Services, LLC

124,727,229

6,032,961

130,760,190

American Farm Bureau Insurance Services, Inc.

112,900,610

2,253,383

115,153,993

Country Mutual Insurance Company

84,628,296

515,859

85,144,155

Global Ag Insurance Services, LLC

68,126,222

7,227,234

75,353,456

International Ag Insurance Solutions, LLC

64,907,890

98,543

65,006,433

Climate Crop Insurance Agency, LLC

47,413,090

618,711

48,031,801

Crop Pro Insurance, LLC Grand Total

20|

| SUMMER 2015

6,915,743

9,792,027,247

1,949

241,449,165

6,917,692

10,033,476,412

Be Independent, not alone.

With unwavering support and outstanding service, Integrity is fiercely dedicated to independent agents like you. Our comprehensive products and services make it easy for you to be an effective entrepreneur, an accomplished leader, a successful salesperson. All so you can be at your best whenever your customers need you. We’re behind you, beside you, with you all the way, each and every day. The way it should be.Ž For more information, connect with Dan Reichardt at 920.968.8330 or dreichardt@imico.com integrityinsurance.com

IIAI Annual

MAY 28, 2015} { PLANNING

E

ach year IIAI’s seven standing committees get together for a day to brainstorm, discuss, and recommend everything from political positions, technical coverage issues to programs and speakers. The committees are: Agency Management/Technology; Company & Public Relations (Trusted Choice®); Education; Governmental Affairs & IIAI PAC; Rural Agents/Small Town Agency; Technical & Industry Affairs; and Young Agents. The

committees are key to our planning for the new fiscal year which begins each September 1st. The committee reports are reviewed by your board of directors and incorporated into our perennial goals and long range strategic plan. A special thanks to the over 100 agents who participate to help the Independent Insurance Agents of Iowa better serve its members. Pictures on this page are some of the committees who help lead your association.

{AGENCY MANAGEMENT}

{COMPANY & PUBLIC RELATIONS} Trusted Choice®

30|

| SUMMER 2015

{GOVERNMENTAL AFFAIRS}

{RURAL AGENTS/SMALL TOWN AGENCY}

{TECH AFFAIRS} SUMMER 2015 |

| 31

Discover what Grinnell Mutual can do for your commercial customers

We specialize in small business protection at prices your customers can afford.

Visit grinnellmutual.com to discover the many tailored business insurance packages we can offer your clients.

IOWA BIG “I” GOES TO

WASHINGTON {

}

IOWA AGENTS VISIT WITH NEW SENATOR JONI ERNST

{

}

SENATOR CHARLES GRASSLEY MAKES A POINT WITH GROUP

{

}

CONGRESSMAN DAVE LOEBSACK DISCUSSES THE ISSUES OF IMPORTANCE TO INDEPENDENT AGENTS

{

}

CONGRESSMAN DAVID YOUNG VISITS WITH GROUP SUMMER 2015 |

| 33

Iowa Trusted Choice® Big “I” Junior Golf Tournament – Sponsored by Iowa Mutual Almost 100 junior golfers played in the 2015 Iowa Trusted Choice® Big “I” Junior Golf Tournament.

This year’s event was sponsored by Iowa Mutual. The winners advance to the National Tournament…

(Left to Right): Ed Wetzel Vice President of Claims Iowa Mutual Insurance; JD Goodfellow, Winner of Boys Division; Garret Jensen, 2nd Place; Georgia Puls, President and CEO of Iowa Mutual Insurance; John Burgett, AW Welt and Terry McDonald, AW Welt

(Left to Right): Ed Wetzel; Maddie Hawkins, 2nd Place; Rachel Miller, 1st Place; Georgia Puls and John Burgett

IOWA INSURANCE HALL OF FAME 2 0 1 5

i

n

d

u

c

t

e

e

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/

Left to Right: Richard Friedman, Sue Sharp-Johnson, *James T. Sharp, Bruce Kelley, W. Harold Petersen, and Jennie LeGates. *Awarded Posthumously

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© SECURA Insurance

We’re here to make sure they’re safe at home.

Covering all the bases since 1900 Business • Home • Auto • Farm-Ag • Nonprofit

When you partner with SECURA, you’re family.

Watch: secura.net/partners

You’re an independent agent.

Got your life jacket on?

The Big “I” Professional Liability Program Prevent.

Our risk management

resources keep your agency from making common preventable mistakes.

Protect.

Our superior coverage and

expert claims teams are in your corner in the event of a claim.

Prosper.

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. ©2008 Swiss Re

THE DRONES ARE COMING…BUT, THEY MAY NOT BE INSURED Hear Stuart Powell at IIAI 109th Convention Tradeshow & Expo September 16, 2015

STUART POWELL

ISO

has now published the new CGL endorsements for drones.

The following is a brief summary of the new endorsements. In developing these endorsements, ISO establishes a definition for unmanned aircraft. ‘“Unmanned aircraft” means an aircraft that is not: 1. Designed; 2. Manufactured; or 3. Modified after manufacture; to be controlled directly by a person from within or on the aircraft.

This new definition is used consistently throughout each of these new endorsements.

Exclusion – Unmanned Aircraft (CG 21 09) This endorsement excludes coverage from the ownership, maintenance, use or entrustment to others of any “unmanned aircraft” under Coverages A – Bodily Injury and Property Damage Liability and Coverage B Personal and Advertising Injury Liability. The endorsement represents a reduction in existing coverage to the extent that the standard aircraft exclusion provided exceptions to the exclusion (therefore coverage) in two respects.

CPCU, CIC, CLU, ARM, CHFC, AMIM, AAI, ARE, CRIS VICE PRESIDENT, IIANC @espowelljrspowell@iianc.com

1. Bodily injury and property damages from aircraft not owned, operated, rented to or loaned to any insured are exceptions to the exclusion.

2. Liability assumed in an “insured contract” for the ownership, maintenance, or use of an “unmanned aircraft” is an exception to the exclusion.

These exceptions to the aircraft exclusion do not apply as exceptions to the new endorsement excluding “unmanned aircraft.”

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Exclusion – Unmanned Aircraft (Coverage A Only) (CG 21 10) and Exclusion – Unmanned Aircraft (Coverage B Only) CG 21 11) basically do what the title says. CG 21 10 applies the exclusion only to Coverage A – Bodily Injury and Property Damage Liability. Whereas CG 21 11 applies the exclusion only to Coverage B – Personal Injury and Advertising Injury Liability. However, under CG 21 11, the endorsement would not result in a reduction of coverage from the use of another’s advertising idea in your advertisement or to infringing upon another’s copyright, trade dress or slogan in your advertisement.

Limited Coverage for Designated Unmanned Aircraft (CG 24 50) This endorsement incorporates the exclusionary language from CG 21 09 for both Coverage A and Coverage B, but adds an exception to the exclusion (therefore coverage) for “unmanned aircraft” if the “unmanned aircraft”

is scheduled on the endorsement but only for the operation(s) that is described on the endorsement. The endorsement represents a reduction in coverage to the extent that the standard aircraft exclusion provided exceptions to the exclusion (therefore coverage) in two respects.

1. Bodily injury and property damages from aircraft not owned, operated, rented to or loaned to any insured are exceptions to the exclusion.

2. Liability assumed in an “insured contract” for the ownership, maintenance, or use of an “unmanned aircraft” that are: • Not scheduled on the endorsement; or • Scheduled “unmanned aircraft” used in unscheduled operations.

These reductions in coverage apply to both Coverage A and Coverage B.

This endorsement may include an aggregate limit on the Unmanned Aircraft Liability which is subject to the General Aggregate Limits or the Products-Completed Operations Aggregate Limit. The Unmanned Aircraft Liability Limit applies only if an amount is shown in the schedule -on the endorsement.

Limited Coverage for Designated Unmanned Aircraft (Coverage A Only) (CG 24 51) and Limited Coverage for Designated Unmanned Aircraft (Coverage) (CG 24 52) each function to apply the limited coverage buy back to Coverage A or Coverage B, exclusively.

Exclusion – Unmanned Aircraft (CG 29 60) This endorsement is a complete and absolute exclusion for the ownership, operation, use or entrustment to others of any “unmanned aircraft.” There are no exceptions to the exclusion under this endorsement.

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

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IOWA INDEPENDENT AGENT

2015 w i n n e r s

DELANEY BOUNDS

BAILEY JOHNSON

MAREN PHALEN

Frederick Bounds LMC Insurance Dubuque, IA

Brian Johnson Legacy Insurance Solutions, Inc. Pocahontas, IA

Mark & Melissa Phalen Friedman Insurance, Inc. Dubuque, IA

ANDREW PUETZ

KATIE TWEDT

LAUREN WILDE

Joe & Michelle Puetz Mills, Shellhammer, Puetz & Assoc.

Sioux City, IA

James & Penny Twedt Joe Morten and Son dba Motorways Urbandale, IA

Scott & Susan Wilde Town and Country Insurance Agency Grafton, IA

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CREA ACHIEVAB AND OBJ Author: Al Diamond Al Diamond will be presenting at IIAI 109th Convention Tradeshow & Expo, September 16, 2015

E

very year Agency Consulting Group, Inc. helps agents create and implement their Tactical (Annual) and Strategic (Long Term) Plans for progressing their agencies’ growth and profitability. And, until an agency has planned for several years, the problems always involve ‘disconnects’ between long range goals, next year’s goals (the agency’s Objectives) and the activities that agency staff does every day to achieve those goals (Action Plans). Like magic, once the participants see the light and understand what they do on a daily basis impacts the agency’s annual performance as well as their own compensation, Long Term Goals seem to mesh with Annual Objectives and the staff clearly sees the difference between Objectives and Action Plans.

Until that moment is reached, agency staff tends to lean toward activities instead of objectives and this mud-

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dies, rather than clears, the path to success.

Strategic Goals for a business define where it wants to be after several years of development.

Annual Objectives define what the business must do in a single, significant area of performance by the end of the year in question in order to progress toward its long term strategic goals.

Action Plans are activities, the conduct of which will likely permit the achievement of the objective.

Benchmarks are the monthly measuring stick that estimates a measurable point at which the results should be each month if the action plan has been implemented and is working properly for the stated Objective.

The two greatest problems with most beginner planners is 1) creating action plans without knowing the objective, and 2) assuming that they have to create their own action plans

without help when they have spent years not achieving goals through those same activities.

Action Planning without first creating ROAM (Realistic, Objective (rather than subjective), Achievable and Measurable) Objectives are like shooting arrows with a bow one after another without having a target at which to shoot. Yes, you may be fast on the draw. Yes, you may lose all your arrows. But you have no idea where they are going to land. A really stupid game we used to play at camp when the counselors weren’t looking was shooting an arrow as close to straight up as we could and then scurrying about trying to avoid being hit by the descending projectile.

The best I can say about that practice in my youth is that the surviving members of our little band of idiots are now quite successful at each of their trades. But the reality exists that launching an arrow without knowing where it is going to land is

ATING BLE GOALS JECTIVES both foolhardy and a wasted task.

And so is creating and implementing action plans without having solid Objectives at which to “shoot” the action plans.

The second thing that takes many individuals and groups years to comprehend is that they form a much greater mind-pool combined than any one of them do individually. Every Objective gets an “owner.” That owner is not expected to complete the Plan or Action Plans on their own – they are just expected to manage the process to the end that every Objective is clearly stated and carries achievable Action Plans and reasonable Monthly Benchmarks.

Yet for the first several years, each participant or each group feels that it is a personal failure if they can’t create workable Action Plans or Benchmarks without outside help.

In fact, without asking others within their organizations whether it be the owners, managers, other staff

members or asking outside the organization the consultants and other advisors for their input and feedback, they are doomed to repeat the same results achieved previously with only slight variations in ideas that they believed were viable in prior years. So if the results were not exactly what they desired, the new results were just as likely to fall short of desired levels.

The answer is to form the Objectives and validate them with as many people outside of the work circle as possible. Once you are comfortable that all involved buy into the Objective as reasonable (qualifying for all the ROAM criteria), then create whatever Action Plans you or your team can establish as likely to achieve the objective. Whether you can innovate to new action plans or not, test them with managers, owners and other staff members and counselors long before proposing them in the Strategic Planning meeting. Change

and polish them until everyone you ask feels that the Action Plans a) can be done, b) will likely achieve the results in the Objective, and c) are properly cost-justified (how much with it cost vs. the benefit).

This creative effort using ALL available resources give the Objective owner confidence in the reasonability of the Objective, Action Plan and Benchmarks and creates a feeling of synergy in an organization that has previously thrived on individual performance and blame. We are ALL involved in the success of the agency and we all drown if there is a hole in the ship – even if the hole is not in our compartment. Most agencies don’t foster synergy and sharing. Mature strategic and tactical planning fosters that and eliminates the defensiveness encountered in most small, closely held businesses.

Copyright 2014 by Agency Consulting Group, Inc. All rights reserved.

Reprinted with permission.

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3 BIG BENEFITS OF

T

echnology has significantly improved the ability of people to connect and work from anywhere. This easy access to information and services allows insurance organizations to redefine the concept of “work” and where it happens.

Online access to agency management systems, voice over IP (VoIP) telephone communications systems, instant messaging, and video calls are just a few of the tools that allow employees to be able to work from literally anywhere.

The ability for an employee to work without the necessity of driving to an office has some substantial benefits for almost any insurance organization.

There are at least three benefits from adding virtual options.

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1. Finding and Retaining Key Talent

Today’s college graduates have grown up in a world where they work wherever they happen to be. They might use the corner coffee shop or one of the new “networking spaces” as their office for the day. They are just not as constrained by a place as some of us that have been around longer.

Adding a virtual option for agency staff may just give you that edge you need to recruit the best and brightest.

I recently received the following email from an insurance agent: “We have a staff of 5 and 2 gave notice that they were quitting last week. One, who is very replaceable, is now gone. The other, who is a crucial member of our staff, will stay until the end of the month before they have to move away.

We have a lot going on right now and do not have the time to train two new employees while absorbing the work of the departing ones.

We asked the crucial employee if she’d be willing to work from home after they move, and she is on board.

She’s an incredible CSR, but we are not really sure how to do it. Not wanting to re-invent the wheel, I thought I’d check with you to see if you had any advice — maybe a sample job description, etc.”

This agency wanted to retain that one key employee. Offering the ability for the employee to work remotely helps the agency by substantially reducing the expense of finding and training a new person.

This is simply one example of how being open to virtual options helps improve the agency’s bottom line.

A VIRTUAL AGENCY By: Steve Anderson

Join Steve Anderson at IIAI 109th Convention Tradeshow & Expo September 15 & 16, 2015

2. Higher Productivity

Studies continue to show that — for the right person — remote employees are more productive. Some of the productivity benefits we hear from insurance organizations include: • Huge increase in employee attendance rates.

• Zero commute time – higher employee morale.

Almost no one takes a “sick day” unless they are REALLY sick.

We are not constantly interrupted in our workday by insurance company marketing reps wandering in.

No office politics to deal with really.

We meet once a month – so wasted time in meetings is reduced.

These benefits help everyone get done what needs to be done quicker leading to a much better client experience.

3. Better Customer Service

Because insurance organizations are able to retain their top talent and the most experienced customer service staff, client satisfaction increases.

Some comments include: We have been able to attract excellent experienced staff because we allow everyone to work from home – giving our clients the insurance-savvy agents he or she desire.

While there are employment issues that need to be considered and managed, a virtual staff allows the organization to offer extended opportunities for clients to contact you when they want, not just when your “office” is open.

Younger people coming into the industry have a different concept of “work.” When they work, where they work, how they work, what they

call “work,” and why they work can be very different than what an older agency owner experienced. Attracting and retaining these talented people requires a new idea of “the office.”

And, as baby boomers begin to retire, they often want to (or need to) continue working — but at a reduced pace. Organizations like Work at Home Vintage Employees offer insurance organizations the ability to hire experienced and well-trained virtual staff on a full or part-time basis.

Insurance organizations that are embracing the virtual concept are experiencing improvements in employee morale, agency productivity, and customer service satisfaction.

Isn’t it time your agency embraced these options?

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YOUNG AGENTS CONFERENCE 2014 Was Another HUGE Success!!

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{YOUNG AGENTS}

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West Bend knows Preferred Risk Types:

Dealer’s Business.

New and used dealers of – All types of motorized vehicles (autos, trucks, boats, motorcycles, recreational vehicles, etc.)

– Lawn and garden equipment (home and commercial) – Trailers (travel, utility, cargo, etc.)

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 dealer’s businesses.

If you have a dealer’s 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.

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

2015

INDEPENDENT INSURANCE AGENTS OF IOWA PROGRAMS SPONSORS A Special Thank You To The Following Sponsors For Supporting IIAI’S Conferences and Programs in 2015.

PLATINUM

GOLD

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

Grinnell Mutual

S I LV E R AAA Insurance Continental Western Group Farmers Mutual Hail Insurance Company Great American Crop Insurance GuideOne Insurance LeMars Insurance Company Merchants Bonding Company QBE - NAU

BRONZE Accident Fund/United Heartland ASI Underwriters Corp Auto-Owners Insurance Columbia Insurance Group Diversified Crop Insurance Services Hastings Mutual Insurance Integrity Insurance International Ag Insurance Solutions Liberty Mutual Insurance

M.J. Kelly Company of Iowa North Star Mutual Insurance Company Partners Mutual Insurance Company SECURA Insurance Selective Insurance Company of America State Auto Insurance Company Travelers Insurance West Bend Mutual Insurance Western National Insurance Westfield Insurance