Volume 29/Issue 3/Summer 2011

SPECIAL IIAI’S 105TH ANNUAL CONVENTION AND TRADE SHOW

SUMMER 2011 • VOLUME 29 • ISSUE 3 INDEPENDENT INSURANCE AGENTS OF IOWA

COMPANY MEETINGS 2011

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|ACUITY |ALLIED INSURANCE |Auto-owners INSURANCE company |EMC INSURANCE companIES

In This Issue: “BUSY” PAST THREE MONTHS INDEPENDENT AGENTS FROM ACROSS AMERICA 2010 IOWA INSURANCE MARKET SHARE REPORT 2011 IIAI SCHOLARSHIP WINNERS CERTIFICATES OF INSURANCE, BINDERS AND EVIDENCE OF INSURANCE IOWA INSURANCE HALL OF FAME 2011 YOUNG AGENTS CONFERENCE

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President’s Report “Busy” Past Three Months 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 Mark Currie, CIC, CPIA - West Des Moines

President-Elect Brian Petersburg - Decorah

Treasurer Paul Pohlson - Grinnell

National Director Tom Richardson, CIC - Keokuk

Directors Terry McDonald, CIC - Iowa City Scott Morningstar, CPCU - Lisbon Jerry Mease - Winterset Eldon Hunsicker - Ottumwa Terry Friedman, CPCU - Dubuque Tim English, CIC - Dyersville John Dalton - Council Bluffs Steve Madsen - Marshalltown David Rowley, CPCU, CIC, AU - Spirit Lake

Past President Jeff Bohnenkamp, CIC - Spencer

Many conference calls and meetings have taken place in our effort to protect agents/agencies in this area and our great industry.

by Mark Currie, CIC, CPIA Page 5

National Director’s Report Independent Agents From Across America Independent agents from across America descended on Washington DC for the IIABA’s 2011 Big “I” Legislative Conference April 13 & 14.

by Tom Richardson, CIC Page 7

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

THANK YOU! 9 Allied General Agency 18 Amerisafe

In This Issue Company Meetings

2011 Independent Insurance Agents of Iowa Page 11

IIAI’S 105th Annual Convention and Trade Show Page 23

4 Burns & Wilcox

2010 Iowa Insurance Market Share Report

30 EMC Insurance Co.

Page 35

33 First Western Insurance

2011 IIAI Scholarship Winners

44 Buckeye State Mutual Insurance Co.

51 Big “I” Professional Liability 2 The IMT Group

Page 45

Bob Skow, CPCU, CAE bob@iiaiowa.org

43 Integrity Insurance 10 Iowa Mutual Insurance Co.

Certificates of Insurance, Binders and Evidence of Insurance: What’s the Difference

Membership Operations Coordinator

18 JM Wilson

by Chris Burand

Melissa Meiners melissa@iiaiowa.org • Ext. 15

48 Merchants Bonding Co.

Page 47

Technology & Communications Administrator

44 Northern States Agency

IIAI OFFICE STAFF Chief Executive Officer

10 IMWCA Iowa Municipalities Workers’ Compensation Association

48 M.J. Kelly Company

Jeanne Reynolds jeanne@iiaiowa.org • Ext. 17

46 Pekin Insurance

Membership Services Coordinator

21 Ringwalt & Liesche Co.

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

6 SECURA Insurance Co.

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

49 Rain and Hail

Iowa Insurance Hall Of Fame Page 49

2011 Young Agents Conference Page 50

17 Society Insurance 46 United Fire Group 34 West Bend

Customer Service Representative Megan Kincy megan@iiaiowa.org • Ext. 16

Membership Services Coordinator Marie Huggins marie@iiaiowa.org • Ext. 22

Receptionist 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 ­political interests of its members; doing so by working in the ­public’s best interest and with the highest ­ethical 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.

When it comes to professional liability coverage, we see things others miss.

At Burns & Wilcox, our access to the most thorough and unique range of professional liability coverages ensures no detail is overlooked. We cover everything from medical professionals to consultants, data privacy to EPLI. Whatever it is, your clients will be properly insured in every possible way. Do not misdiagnose their professional coverage needs. Contact Burns & Wilcox, the largest independent wholesale broker and underwriting manager.

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“busy” Past three months p

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By Mark Currie, CIC, CPIA

“Busy” is the best way to describe the past three months for your Association. After attending our Federal Legislative Conference in April, we continued to fight the battles for Crop Insurance and Health Insurance. Many conference calls and meetings have taken place in our effort to protect agents/agencies in this area and our great industry.

Besides the political front, we were honored to have four of our insurance companies meet with us at the Big “I” office in May. The company meetings this year were with Allied, EMC Insurance Companies, Auto-Owners and Acuity. It has been interesting to meet with these companies for feedback on the industry and how we work together. You will enjoy their comments later in this issue.

We had our Annual Planning Meeting on June 2 and it was a great success. One of my goals as President was to increase our attendance to this important day. We increased our number of agents by 15-20% from last year. It is so important that this trend continues as we need input from ALL our membership. It is also a great networking day for the committee members, meeting new agents and renewing old friendships. The information that is developed from these committee meetings is critical for our board. It helps us focus on where we should be for the next years we face. Thank you for the following Chairs for their leadership: Elisa Gibson, Agency Management/Technology Committee Willene White, CPCU, Company/Public Relations Committee Todd Stadtlander, Education Committee Jim Lane, Jr, CPCU, Governmental Affairs & IIAI/PAC Committee

Kathy Mens, Rural Agents/Small Town Agency Committee Jamie Krist, CIC, Technical & Industry Affairs Committee Justin Davis, AFIS, AIP, Young Agents Committee Again, thank you, to all of the agents who participated, your efforts are greatly appreciated!

The Big “I” has renewed their commitment to our Iowa youth by bringing back the Trusted Choice Big “I” State Golf Tournament. A major thank you goes to Allied Insurance for their sponsorship for this great event. Also, thank you to Board Members, Terry McDonald, CIC and Tim English, CIC and the many volunteers for their efforts in making this happen.

We are completing final efforts for our fall Convention. It will be a great event with a wide variety of vendor booths, golf, CEC classes, fantastic entertainment, awesome speakers and our special guest, keynote speaker, Presidential Candidate Newt Gingrich. Please plan on attending as it will be a special event.

I will be winding down my year as your Association President over the next few months. It has been a great experience for me and I appreciate you allowing me this honor. Our agents have an awesome Association at work on their behalf. I feel good that I had the opportunity to help in a small way.

We still face many political battles, economic ups and downs, as well as the uncontrollable weather. Hang in there! Stay Positive! “We all are in it together”.

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© 2011 SECURA Insurance

Success is finding an advantage.

Outlasting the competition requires outsmarting them. Agents know this. That’s why so many choose SECURA to help their business grow. 1-800-558-3405. Write your own success story.

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By Tom Richardson, CIC

Independent agents from across America descended on Washington DC for the IIABA’s 2011 Big “I” Legislative Conference April 13 & 14. Our goal was to set down face to face with each State’s elected officials to get the Independent Agent’s message presented loud and clear.

As I have learned over the years, Independent Agents are passionate about what we do, and we are tireless in our pursuit of getting our message out to Washington DC. This year was no different, and although the faces of the agents presenting the message may change, year in and year out, the core issues that impact Independent Agents and how they conduct business don’t seem to change. Crop Insurance and Health Care Reform were again two of our main talking point issues as we delivered our message to our elected officials and their staff. Crop insurance agents have been facing ever shrinking revenues as the Ag Department and Congress continue to squeeze the agents’ income out of the very successful Federal Crop Insurance Program. Likewise, agents that sell health insurance are scrambling for their very existence and to retain the right to make any kind of income in the health insurance market place. As health insurance advisors, we are experiencing very dramatically diminished compensation. With the recent implementation of Medical Loss Ratios (MLR) regulations, agents’ compensation has

taken a downward hit, and we implored all members of congress to act in each of their respective branches of government to take agents’ commissions out of the MLR. We strongly support H.R. 1206, the “Access to Professional Health Insurance Advisors Act” which would exempt agent commissions from the MLR. There were many other topics that were brought up and discussed by agents, but the Crop Insurance Bill, and agent’s compensation outside of the MLR were two items we hit home the hardest. This is always a long and exhausting day of moving around capitol hill and getting our message out, but in the end, we always seem for the most part to be well received and listened to by our elected officials, and their staff.

I’d say for the most part because Iowa agents have been strongly supported by some of our representatives, and both of our Senators.

This is not the proper article to start making political statements and picking out supporters and adversaries, but I would stress to all Iowa agents that read this article to make sure you are aware of who are and are not your friends in Washington DC, and make sure you vote accordingly.

Prior to agents meeting with their respective Senators and Representatives, we had a breakfast meeting where we were able to listen to speeches from both the Speaker of the House John Boehner (R-OH), and Senator Mary Landrieu (D-LA). Both were

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excellent speakers and both are well respected leaders in their respective branches of government. I think for the most part both, (I’m using for the most part again) are supportive of main street businesses, and both as much as their positions and parties allow, are supportive of the Independent Agency System. Time will tell if they can make a positive impact on legislation that affects Independent Agents, and how we can and cannot conduct our business. Independent Agents seem to now have targets on our backs and we are taking economic hits from both the State and Federal Governments. Any friends in the House and Senate that we can cultivate and who will listen to our message are worth having on our side, as friends in Washington DC seem hard to come by right now.

Following our legislative day on the hill, the National Board met for our 2nd of 3 IIABA yearly board meetings. This was a relatively quiet board meeting, as for now much of the controversial and hotly discussed topics were behind us, and the board was back to a more “routine” discussion of national Board topics. CEO Bob Rusbuldt opened the meeting with his customary state of the association speech, and echoed the message that all states around the nation as well as national is experiencing a slow retraction of the number of Independent Agents and Agencies. The shrinking trends have leveled off as of late, but we continue to see mergers and acquisitions reducing the number of Independent Agencies around the country. My only observation is the obvious one; with the State and Federal Government continually hammering agents’ ability to earn a living, it’s no wonder we’re not attracting new agents and agencies to the market place! However, nationally there is a stabilization of the agent ranks, so for now, national membership is stable. Transparency seems to be a word that has gotten a lot of traction and used lately as a buzz word that organizations and governments want to adhere to. IIABA is no different. Members are continually reminding our national organization that it is important to be transparent in your actions and how you conduct your business. In defense of the National Office, there are so many facets of managing and governing the IIABA office, including member programs, state execs, legislative affairs, budgeting, InsurPac, and on and on, that I think they have a tendency to let their staff manage, and trust their judgments. That is always a good thing when you have good people to delegate to, however, sometimes the end results and consequently how the decision is perceived by members lends to questions of transparent decision making and governance. There was a move by some states to ask that national be more transparent in how they manage the individual member

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services, and a good wake up call to the National office, or any office is most generally a good thing.

Tom Minkler and Scott Deetz gave an update on the Consumer Agent Portal (CAP) project which I have mentioned in previous articles. The program continues to move forward, with funding falling into place and companies apparently anxious to get on board with the 2012 unveiling of the online CAP product. At the September board meeting the full National Board will most likely be able to find out which companies are already signed up to participate and assist in the funding. I am looking forward to seeing the CAP project finally introduced and up and running as a lot of good people have put a lot of hours into making CAP a reality for Independent Agents. I hope to be able to expand even more on CAP in my fall article. Our next National Board Meeting will be September 16-17 in Minneapolis.

It is the National Director’s prerogative as to how this Viewpoint Article is written, and although I am asked to write a report on what is happening on a National level, I can also use my own judgment as to whether or not I want to use this article to do a little editorializing. After realizing that I’ve only got 6 months and 1 more viewpoint article to go, I thought I might as well let loose with a little personal frustration.

Now that we are through our 1st full year of Obamacare, and health care reform, has anyone out there noticed how much their health insurance, or their customers’ health insurance rates have reduced? Of course you haven’t. A recent study by the Milliman consulting firm reported that for the fourth straight year, health care and health insurance costs increased by at least 7%. Is anyone out there surprised? From the very beginning of the health care reform debate, Independent Agents were trying to get their point across to our astute government officials that everything they were doing would, in fact, have the opposite effect on the cost of health insurance than what they were touting in their wonderful Patient Protection and Affordable Care Act; that costs would go up, not down! One has to wonder if that has not been the plan all along, to raise the cost of health insurance to the point that our wonderful protector, the Federal Government, would have to step in and say now that you can’t seem to control your costs, we are going to take over the health insurance and health delivery system and run it like it should be run. Although I’m not the first person to make this observation, the calls for Government intervention are already coming in from none other than the newspaper from Des Moines, the one that all Iowa depends on. In an April 19th editorial the Des Moines

Register came out and stated that they wanted Washington DC (specifically the Department of Health and Human Services) to fashion Iowa’s health insurance exchange, rather than allow our state legislature to craft legislation for our state-based exchanges. Oh, and just as a side note, the Register specifically didn’t like the legislation presented by Senator Tom Rielly of Oskaloosa because it would guarantee insurance agents a commission. They felt this would drive up costs. Des Moines Register, do you really think that an exchange developed by the federal government would actually control costs? If so, that would be the first government program in the history of this great country to do so. For some reason the Register and many state politicians have this starry eyed dream that people will just go onto the internet, point and click, and shazaam, we’ll have a health care plan just right for us. In reality, if this exchange works like it is supposed to, there will be a multitude of plans and options from a multitude of companies and if so, consumers will need someone to explain the choices to them and help them to get a health insurance plan that fits their needs. So, do you really think that the counseling the consumer will need to find the insurance plan just right for them will come from a government employee for a substantially reduced price? Not in our lifetime!

I am really tiring of everyone thinking that the government can do anything better or cheaper than the private sector, whether it is health insurance, or crop insurance. Independent Agents sell on a commission for a reason; the harder we work, and the better we serve our customers, the more business we write. We have an incentive to make the consumer happy, and we have to be accountable

for what we sell. Do you really think that same motivation would be there for a salaried 9 to 5 government employee?

In addition to all of this, now at least one company and possibly more who have recently announced that for the sake of transparency they will inform the customer just how much those greedy agents are making in the sale of large group health plans. OK, now should we be calling for full transparency of all insurance companies, and lets have them come clean to the public and announce just how much money in salaries, bonuses, deferred compensation, and benefits they make each year? I would be willing to wager management at some of the companies make a lot more money than your average Main Street Independent Agent. Bring it onto the table. We might then find out what is truly causing the cost of Health Insurance to increase.

I could go on and on, from The American Cancer Society lining up against agents selling in the exchanges, to AARP wanting to get into the action, to labor unions proclaiming that agents drive up the cost of health care, and so on and so on. Independent Agents are the backbone of Main Street Iowa and the nation, and we provide a service to our communities and the public that no one else can duplicate.

The good news agents, is that your friends and customers recognize your value and appreciate the job you do. Keep providing the service and care that consumers have come to expect from Trusted Choice Agents, and the word will get out to our elected leaders.

Keep up the good fight, and have a safe summer.

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COMPANY MEETINGS 2 0 1 1

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Each year IIAI Agents meet with a group of companies.

The report involving four companies follows:

ACUITY

d e l i v e r s w h at m at t e r s t o a g e n t s , c u s t o m e r s

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For All That Matters Wally Waldhart

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ccording to Ben Salzmann, President and CEO of ACUITY, the secret to the insurer’s remarkable growth and success is no secret at all: Independent Agents. “We are committed to building strong partnerships with agents,” he says. “That requires we stay focused on what agents need and want.”

ACUITY also recognizes those needs aren’t limited to just one aspect of business. “Some companies invest in technology, and some focus on building relationships, but we know both are important to agents,” Salzmann says.

On the technology front, ACUITY has focused on developing and investing in ease-of-business technology for agents. ACUITY provides real time, online policy quotation and application and automatically issues and delivers policies to agents within seconds in both personal and commercial lines. They have recently introduced “share”, which allows an agent, policyholder, and even underwriter to view an application and rating simultaneously from different locations. ACUITY’s ongoing leadership in agent-support technology has helped the company earn more awards from ACORD than any other carrier in the nation and a top-100 spot on the InformationWeek 500 list of technology innovators.

When it comes to building relationships, no company does more for Independent Agents than ACUITY. Over the past five years, agents have earned 100,000 continuing education (CE) credits thanks to ACUITY’s free CE courses, speaking tours, and in-agency training. Additionally, ACUITY knows the bottom line is important to agents as well. “We pay more in contingent commissions as a percentage of written premium than our peers,” says Wally Waldhart, Vice President - Sales and Communications.

Agency Appointments ACUITY knows what agents want, and it also knows what it wants from independent agents. ACUITY believes insurance is a business that requires a professional approach—one that professional insurance agents are uniquely qualified to provide.

“We look for what we like to call the ‘3 Ps’ in an agency: profitability, professionalism, and potential,” says Waldhart. “We are very selective in the agents we appoint in order to maximize our agencies’ franchise value.”

Products ACUITY offers a wide range of products in personal and commercial lines, a broad market appetite, and expert value-added services in key areas such as loss control and managed care. The company balances competitive rates and pricing flexibility with underwriting discipline, writes package and monoline coverages, and considers accounts of virtually any size.

Although ACUITY is a generalist, it has done well in targeted classes of business, such as contractors and truckers, offering unique Enhancements Endorsements for these classes. ACUITY also offers EDGE, a nonstandard auto program for commercial lines.

Additionally, ACUITY’s personal lines business has experienced robust growth in recent years. “We emphasize package accounts in personal lines,” says Waldhart, reporting that the company’s best-selling personal package account is its Road and Residence line.

Financial Strength With strong growth and profitability, ACUITY offers independent agents remarkable financial stability in an otherwise unstable market. A fiercely independent company firmly committed to remaining mutual, ACUITY is also remarkably well-run: the company is rated A+ by both A.M. Best and Standard

ACUITY & Poor’s, and has been named to the Ward 50 for 11 consecutive years.

ACUITY also offers Independent Agents strength in staffing with a voluntary turnover of just one percent.

Salzmann credits this achievement to being a great place to work—in fact, ACUITY is ranked as the top mid-sized employer in the nation by the Great Place to Work Institute.

Future Focus Waldhart gives an unexpected answer when asked about ACUITY’s growth goals.

“We don’t have any,” he says.

“When carriers impose growth goals on their employees and agents, it leads to bad underwriting and business decisions if the market conditions are not right to achieve those goals,” Waldhart explains.

“In contrast, we simply keep our promises to agents and customers, and we expect agents to keep their promises to us.

If we keep doing that, we will grow. It may sound ‘old school,’ but we’ve proven it works.”

www.acuity.com ACUITY, headquartered in Sheboygan, Wisconsin, operates in 20 states, generates nearly $800 million in revenue through 1,000 independent agencies, and manages over $2 billion in assets.

Named the Best Medium-Sized Place to Work For in America by the Great Place to Work Institute, ACUITY employs 850 people.

ACUITY’s unwavering focus on what works is perhaps what distinguishes it most from other carriers. As a result of its strategy, the company provides consistency and stability in an industry marked by wide market swings and financial uncertainty.

“Agents always know what to expect when they do business with ACUITY,” Salzmann says. “We are a company Independent Agents and policyholders can rely on, year after year, ‘For All That Matters.’”

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ALLIED INSURANCE no. 1 independent channel carrier in iowa

Left to Right: Jeff Rommel, Di Brinks-Taylor, Kim Austen-President/CEO

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ince being formed as ALLIED Mutual Automobile Association in 1929, Allied Insurance has been committed to providing quality insurance coverage backed by our commitment to On Your Side® customer service. Whether its protection for your clients’ home, auto, farm/ranch, or business, Allied’s broad portfolio of personal and commercial products has the flexibility to meet their insurance needs.

As part of Nationwide Mutual Insurance Co., we’re backed by one of the largest

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and strongest diversified insurance and financial services organizations in the U.S. This gives us the strength of a national carrier, yet allows us to operate like an Iowa-based regional company. Allied’s corporate headquarters are located in Des Moines, Iowa, and we service agents and customers in 33 states. Our regional offices are located in Lincoln, Nebraska; Denver, Colorado; Gainesville, Florida; and Sacramento, California.

Nationwide and Allied employ more than 4,000 associates in Iowa in all

operations, with more than 3,300 representing property and casualty insurance operations. In addition to Allied’s headquarters, our presence in Iowa includes Nationwide Agribusiness, Nationwide Advantage Mortgage Company, Nationwide Insurance, and shared support services for the P&C companies.

Nationwide’s Des Moines campus totals nearly 1.2 million square feet, making it one of the largest contiguous facilities in Iowa. Located in the Western Gateway of Des Moines, our newest building at

1200 Locust St. is the first downtown Des Moines office building to earn “green” certification. Because of its operations, construction, air quality, building materials and water efficiency, it earned the Leadership in Energy and Environmental Design (LEED) certification, given by the U.S. Green Building Council (USGBC).

Independent Yet Never Alone Allied is the No. 1 independent channel carrier in Iowa. We’re also the top Commercial CGL/BOP liability carrier and the top Commercial Property carrier.

Bob O’Hollearn, Regional Vice President of Allied’s Des Moines office, shares, “We couldn’t earn these marks without our agency force. When our agents succeed, we do too. Allied is focused on delivering the best insurance protection through the best network of independent agencies.”

Independent, yet never alone is how we describe our commitment to our agents.

This agent-facing tagline helps show our agency force that we embrace their independence, but also understand their need to leverage Allied’s resources and expertise. Independent, yet never alone focuses on supporting our agents through personalized relationships, technology solutions, agency support, and a business model that makes us easy to do business with.

Making agents’ business click An example of how we’re delivering on this commitment is our work in digital marketing. According to the 2010 Agency Universe Study for Independent Insurance Agents, conducted by the Big “I”, the number one thing an agency looks for from their carriers is help with effective Internet marketing.

That’s why we introduced the Digital Marketing toolkit. This program provides agents a comprehensive resource to help them use the Internet to reach more clients, more ways, more often. In addition to guiding agents through building and maintaining an online marketing program, it includes search engine

1100 Locust St. building in Des Moines, IA

optimization (SEO)—making it easier for customers to find agents online, an email campaign builder, and monthly reviews of the site’s performance, plus ongoing consultation around the website.

A different kind of contract To build their personal lines book, we offer agents a unique contract with special benefits. Referred to as our AIDCO contract, these partners agree to

write all standard personal lines business with Allied.

Our AIDCO partners receive access to free training, co-op advertising funds, agency acquisition support, access to a social media site that offers businessfocused networking and idea sharing, and one of the most competitive profit share plans that includes a flexible lockin feature allowing agents to lock their third-quarter loss ratio to off-set the risk of late-year losses.

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Coverage with your business in mind Allied offers top-quality coverage for small- to medium-size business operations. Our property and liability protection can be packaged into one policy, ensuring convenience and a custom fit that’s perfect for any business.

Plus, we offer loss control and risk management services that help commercial clients prevent claims before they happen.

We offer a full range of coverages to protect business property, vehicles, people, income, and to help protect clients from liability risks. With our commercial products, clients enjoy coverage that is backed by a top-rated company that recognizes no two businesses are alike.

An award-winning partner Choice is hallmark in the independent channel. We know agents have choices and we want to be the carrier of choice in all categories, yet we know ease of doing business is critical to independent partners.

In 2010, the ACORD User Group Information Exchange (AUGIE) agency survey ranked Allied No. 5 of all P&C carriers nationally in implementing technology that provided ease of doing business to agents. We earned this honor by listening to agent feedback and responding with technology solutions that save time and enhance productivity.

We also earned the 2010 Real Time Adoption Award from Applied Systems National User Group (ASCNET), which is presented to companies who have shown leadership and growth in the development and promotion of real time applications.

Our real time efforts were also recognize when we were honored with the 2011 Celent Model Insurer Award acknowledging our use of standards, optimization of infrastructure, and improved channel management.

And, we won the 2011 NewVU (Vertafore National User Group) National Quantum Award, which recognizes achievements in interface technology

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DMRO associates wearing IYNA t-shirts. The volunteer efforts and community involvement.

between carriers and agencies that provide significant advancements in productivity. This is the second time in the last three years that we’ve won this award.

Best-in-class claims service We know that besides our agents, our claim representatives may be the only other contact some customers have with Allied. So we strive to give customers an experience they’ll want to tell everyone about. Allied’s goal is for claim representatives to contact all parties involved in a loss within eight business hours. Whether it’s a simple accident or something far more serious, we make sure customers get the service they deserve.

Millions of dollars and thousands of hours Allied and Nationwide were founded on the belief that people can do more together than they do alone. This focus on serving people includes lending a helping hand to the communities where our associates live and work. We believe in not only financially supporting local nonprofit organizations, but also partnering with them and offering support through the time and talents of our associates.

In 2010: • Central Iowa associates volunteered more than 10,000 hours and signed up for more than 1,900 volunteer activities.

• Central Iowa Nationwiders donated more than 2,300 units of blood to LifeServe Iowa (3% of the organization’s total blood supply); which saved more than 7,000 lives.

• Nationwide associates in Iowa pledged $665,000 to their local United Ways, which are matched dollar-for-dollar by the Nationwide Insurance Foundation.

• The Nationwide Insurance Foundation contributed nearly $2.6 million to Central Iowa nonprofit organizations.

Our commitment doesn’t stop there.

We offer our associates incentives for volunteering, including paid time off and grants made on their behalf to the nonprofit.

Allied representatives have also extended a helping hand to victims of catastrophes like the Parkersburg and Mapleton tornadoes and the Ames/Colfax flooding. In addition to our claims service, Allied’s Des Moines Regional Office has a group of associate volunteers who travel to the impacted communities to assist with clean-up efforts. Regardless of whether they are policyholders, these

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Bob O’Hollearn, Regional Vice President, Allied’s Des Moines Office

Allied volunteers help victims clear debris and clean the area.

Our mutual customers As a whole, Nationwide is reclaiming its roots as a mutual company, by putting more emphasis than ever before on the customer and finding ways to provide even more personalized service.

At Allied, it’s our people and how we partner with you that results in success.

We’re continuously working to provide service that’s second-to-none, exploring ways to enhance ease-of-use, and finding new and different solutions to help our agents grow. That’s what’s behind our philosophy of Independent, yet never alone.

In the last 10 years, Allied’s direct premium has grown by $2 billion—from $1.4 billion in 2000 to $3.4 billion in 2010. Despite some challenging economic conditions, we’ve been able to grow our business and we’ve positioned ourselves to continue growing in the years to come.

If you want to work with a carrier that has strong ratings, financial discipline, solid risk management, and a customer-focused philosophy, call us today.

Contact Cara Hulick at 515-508-4871 or CHULICK@nationwide.com.

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SUMMER 2011 |

| 17

TRUCKING

Workers’ Comp InsuranCe For more InFormatIon Call: (888) 758-5042 www.amerIsaFe.com

ENTHUSIASM IT’S CONTAGIOUS “My hobby as a fitness instructor allows me to help people—similar to my position at J.M. Wilson. I love being able to assist our agents and our companies in finding a solution when a loss occurs.”

Jessica Garcia, CISR Claims Supervisor—and fitness fanatic Connect with Jessica on LinkedIn!

Managing General Agency Since 1920 Property/Casualty t Professional Liability t Surety Commercial Transportation t Personal Lines t Premium Finance

800.666.5692

jmwilson.com

Auto-owners INSURANCE company relentless pursuit of excellence

Left to Right: President Jeff Harrold, Katie Snoirot, Craig Klopenstein

A

uto-Owners Insurance Company has been providing insurance protection for policyholders and products for the independent agency system since 1916. The company has been in Iowa since 1951. We will celebrate our 95th anniversary on July 1, 2011.

Through the years, Auto-Owners has been recognized with the highest ratings by nationally recognized independent insurance company rating organizations such as A.M> Best Company (A++

Superior) and Ward’s 50 Benchmark Group.

Auto-Owners Insurance ranked highest among auto insurance providers in the J.D. Power and Associates 2008-2010 Auto Claims StudiesSM. Auto-Owners is comprised of five property and casualty companies – Auto-Owners, Owners, Home-Owners, Property-Owners and Southern-Owners – one life/health/annuity insurer – AutoOwners Life Insurance Company. Iowa is served locally by the full-service (claims,

marketing and underwriting) office in West Des Moines and the Cedar Rapids claims office.

What Sets Auto-Owners Apart Auto-Owners is 100% committed to the independent insurance agents and the Independent Agency System. Our success of the past, present and future is and will be predicated on our professional business relationships with independent

SUMMER 2011 |

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insurance agents. We have no plans to change doing business exclusively through our independent agency partners.

Our success stems from our guiding Core Values. These ten values make up the essence of what the company is: Honesty, Hard Work, Prudence, Loyalty, The Team, Our Relationships, Opportunities for Associates, The Customer, Stability and Consistency, and Profit. These values are what drives our associates to pursue excellence, create trust and earn business.

In 2010, we surpassed two milestones as a company — $5 Billion in premium and $6 billion in surplus. As we continue to focus on profitable growth in 2011, we will continue to assist our independent agency partners to promote their value through co-op advertising to drive business to their office doorsteps.

Our consistent marketing strategy helped us to grow our property and casualty premiums over 9% in Iowa during the year. This helped us reach a new milestone in Iowa as well as we surpassed the $100 million dollar written premium mark for the first time in company history.

We continue to understand the value of people. Our marketing representatives visit agencies, providing underwriting authority in the field to help agents write good, profitable business in their community.

The Auto-Owners Life Insurance Company provides products which help our independent insurance agents improve retention and protect policyholders for other causes of financial crisis.

We promote our Safe. Sound. Secure®. investment strategy to always maintain solid products designed to be there for policyholders when they need them most.

While annuities were a large portion of our record year of 55,000 plus applications in 2010, we continue to receive applications for term and permanent life insurance products, disability income and long term care. We increased our life insurance writings in 2010 by 8.3%.

These are only sold by the independent agents representing Auto-Owners Life Insurance Company.

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| SUMMER 2011

Growth Plans in Iowa In 2011, we seek to continue our profitable growth goals and anticipate around 10% growth in 2011. In recent years we’ve appointed 8-10 agencies a year but will focus on growth through our existing agency partners. While we are not actively looking for new agencies to partner with, we will look to maintain our current agency count of 271. If a new appointment makes sense due to natural loss of other agencies, it will be based on criteria which includes but is not limited to a minimum three years in business, profitable growth history, as well as overall quality of the agency to present a professional image. We feel if an agency presents opportunity where we are not earning our fair share of business, then it makes sense to explore a mutual beneficial relationship.

Automation We have focused over the past few years, to provide a simplified web based rating and servicing product for our agents across all our operating states. We have heard many positive comments and continue to accept feedback to improve it for our independent agency partners. We continue to work on other aspects of our web portal for agents, to make it the best.

We are excited about the release of our commercial rating for packages in late May for Iowa. This web-based rating

product, will allow us to have all lines available at the agency level to provide proposals to clients. This product includes our garage program rating as well.

We have partnered with a number of automation products designed to make it easier to do business. This includes products such as Transformation Station and Transact Now. We also have real time rating with several comparative raters, including EZ Lynx, Quomation, SEMCAT, Vertafore and Stoner River.

We understand the importance of continuing to improve automation, to make it easier to do business with us. We appreciate your continued partnership to submit your business to us electronically.

However, we still continue to support all forms of submitting business including paper.

What Agents Continue To Do Well and Can Do Better The strength of the independent agent is their continued commitment to their community they live and work in. We find many of the agents strongly involved in community-oriented programs. The agent in the local community has played a vital role in taking care of people at time of loss. This is quite evident in the J.D. Power recognition. One of the top ingredients for this recognition is the agent’s involvement in the process.

The preparation for tomorrow’s leaders in the independent agency system continues to need more attention. Agency perpetuation and the future of many agencies in the local community is a concern. At Auto-Owners, we are offering a program across our operating states over the next couple of years to help perpetuate agencies and prepare for their future.

We will be providing these important seminars, focused on perpetuation in May, 2012 for our Iowa agents.

Our independent agency partners must continue to focus on their value in their hometown as the insurance professional.

The expertise our local agents can provide to their customer is of greatest value.

Rather than just finding the lowest price, it is the commitment to provide great service when needed which sets them apart for the customer.

Commitment to the Independent Agent in Iowa

“”

We continue steadfast in our pursuit of excellence, to improve our ability to bring insurance products to help you in your local community. While we cannot be “all things to everyone” which you serve, we want to make sure we never fall short of your expectations when the time comes to “deliver on the promises” we make.

We know the value of delivering on our promises to pay claims quickly and fairly.

Our claim representatives maintain close communication with our agency partners through agency visits and communication on claims. We value the agency contact as an integral part of the claim process.

It was one of the key factors in our obtaining the J.D. Power award for the past three years.

Promises made, promises kept

“Promises made, promises kept”—with our agents as partners, this will continue to serve us well in Iowa. We thank you for your business, and hope to continue our pursuit of excellence each day, one promise, and one customer at a time.

We welcome you to visit our regional office at 1621 West Lakes Parkway, West Des Moines, Iowa. It is where many of our local associates do their best in pursuing excellence like all Iowans. Best wishes, for continued success together.

SUMMER 2011 |

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You’re an independent agent.

Got your life jacket on?

The Big “I” Professional Liability Program Prevent.

Our risk management

Protect.

Our superior coverage and

Prosper.

When you know you have

resources keep your agency from making common preventable mistakes.

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

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

RECIPE FOR SUCCESS

INGREDIENTS & EXECUTION: Strategic Fit

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DOES YOUR AGENCY HAVE THE RIGHT INGREDIENTS?

IIAI’S 105TH ANNUAL CONVENTION AND TRADE SHOW Sheraton Hotel - West Des Moines September 21-22, 2011

RECIPES FOR YOUR SUCCESS Wednesday, September 21, 2011 Choose between IIAI’s famous best ball golf tournament and a day of insurance education.

IIAI Annual Convention Best Ball Golf Tournament 10:00 a.m. Shot Gun Start Beaver Creek Golf Course Enjoy thousands of dollars in prizes and the chance to spend a fun day on the course with fellow insurance professionals. Put together your own foursome or we can place you in a group…but don’t wait too long as golf is limited to 216. Lunch will be provided. **Please note all players must be registered for the 105th Convention and a separate golf registration form is needed.

3 Hours of CECs – Crime & Fraud 9:00 a.m. – 12:00 noon Featuring Anna Jaeger & Miles Weis, AFSB

CRIME & FRAUD The seminar will focus on the need for Crime Insurance and instructors will walk you through the following: • Insuring Agreements and claims examples • Underwriting parameters and rating variables • ERISA • Identity Fraud Expense

Anna Jaeger Anna Jaeger is with Travelers Insurance Company. A 2008 graduate of the University of Iowa with a degree in Finance and simultaneously obtained the Risk Management & Insurance (RMI) Certificate through Vaughan Institute. At Travelers, Anna is an Associate Account Executive for Private & Non-Profit Liability. She maintains an active alumni role with the Vaughan Institute and the RMI fraternity, Gamma Iota Sigma.

Miles A. Weis, AFSB Miles Weis graduated in May 2002 from the University of Iowa with a BBA in Finance and Economics. He is employed by Travelers; Miles is an Account Executive Officer with Bond & Financial Products. He achieved the Associate in Fidelity and Surety Bonding (AFSB) designation in March of 2010 and is currently pursuing his Registered Professional Liability Underwriter designation.

BOX LUNCHES WILL BE PROVIDED

3 Hours of CECs – Ethics Seminar 1:00 p.m. – 4:00 p.m.

Featuring Russ Sporer, CPCU Every Iowa agent is required to take a minimum of three hours of ethics training to renew their producer’s license. Russ will be our guest speaker on this always interesting and controversial subject.

RUSS SPORER, CPCU Russ is a former Principal in the NOEL Insurance Agency, Inc., Ottumwa, Iowa. He has years of experience in the business, as well as teaching insurance license exam schools.

His hands-on approach and relaxed style of teaching guarantee students a practical approach to the subject.

ETHICS SEMINAR What is insurance Ethics? You’ll discuss the following: • Wrong/right • Ethical dilemmas • Morals, Religion and law impact on ethics • Evil, Justice, Good/Bad, Choices, Trust, Philosophy

IIAI’s Annual Trade Show 3:00 p.m. – 6:30 p.m. – Exhibit Hall – Iowa’s Largest Insurance Trade Show Best Place in Iowa for Agents and Companies to Network!

Three exhibit halls focused on serving the needs of independent insurance agents! These exhibitors want to do business and are giving away prizes too…don’t miss out on this great trade show. Drinks and light hors d’ouvres served from 5:00 p.m. – 6:30 p.m.

IIAI/PAC Silent Auction 3:00 p.m. – 6:30 p.m.

Always a great event…IIAI’s Silent Auction. Great items you can bid on, while at the same time supporting the IIAI/PAC which supports candidates for the Iowa Legislature.

IIAI’s Annual Convention Dinner Party 6:30 p.m. – 7:45 p.m.

Sit down dinner. A chance for you to visit with your fellow insurance professionals.

A great dinner followed by entertainment from comedy stage Hypnotist Jim Wand.

8:00 p.m. – 10:30 p.m.

The Sheraton Hotel Ballroom will be transformed into a spectacular Las Vegas style evening of entertainment and fellowship.

Entertainment from Comedy Stage Hypnotist Jim Wand 8:00 p.m. – 10:30 p.m.

This year’s evening entertainment is something very special. A regular on the Las Vegas circuit Dr. Jim Wand brings his amazing show to the 105th IIAI Convention and Trade Show. His show is sold out everywhere he appears…his mixture of comedy and amazing hypnotic show will have you telling everyone about this wonderful evening for years to come!

Dr. Wand has also appeared on numerous T.V. programs including a national FOX special entitled “WOW”, “The Sally Show”, “The Judge Joe Brown Show”, the Discovery Channel, Comedy Central and numerous other appearances on FOX, ABC, NBC, and CBS. He has worked with such personalities as Jay Leno, Chris Rock, Carrot Top, Larry the Cable Guy, Jeff Probst the host of Survivor, Sylvester Stallone, George Strait, and The Judds just to mention a few.

Party After the Party – Hosted by IIAI’s Young Agent Committee

Dr. Wand holds a Ph.D. in the field of psychology, has over 6,000 professional engagements to his credit and is considered to be one of the most professional hypnotic entertainers in the world today!

10:30 p.m. – 12:00 a.m.

For those who aren’t quite ready to call it a night join your insurance friends for some relaxing card games, conversation and a few drinks hosted by the IIAI Young Agents Committee

Thursday, September 22, 2011 Group Buffet Breakfast – 6:45 a.m. – 8:15 a.m.

Exhibit HallS Open – IIAI Annual Trade Show – 8:00 a.m. – 11:00 a.m.

IIAI/PAC SILENT AUCTION – 8:00 a.m. – 11:00 a.m.

IIAI Opening Ceremony – 8:30 a.m.

Iowa Governor Terry Branstad 8:35 a.m. – 8:50 a.m.

The Honorable Terry Branstad, the 42nd Governor of Iowa since January 2011. Branstad was the 39th Governor of Iowa from 1983 to 1999 and President of Des Moines University from 2003 to 2009.

The Governor will be one of our special guests at the 105th Annual IIAI Convention and Trade Show.

The Governor will discuss issues of concern to Iowa’s Independent Insurance Agents.

Successful Agency Management 8:50 a.m. – 9:45 a.m.

Featuring Chris Burand Most IIAI members know of Chris Burand who is an insurance agency consultant specializing in agency operations and finance.

He has worked with hundreds of agencies and brings his broad knowledge and experience with him into this dynamic, highly interactive program. Chris will provide you with the pertinent information and practical methods agency owners and managers need for Success in today’s market place!

SUCCESSFUL AGENCY MANAGEMENT Successful agency management begins right here! Participants get a first-hand look into the building blocks of a strong agency.

• Agency Financial Management • Carrier Management • Strategic Agency Management

• Producer Management • Operations Management • Marketing & Sales

• Leadership This program will have you taking a lot of notes and will give you proven recipes for agency success!

IIAI Annual Membership Meeting and Election of Officers 9:45 a.m. – 9:50 a.m.

Members Only 9:50 a.m. – 10:20 a.m.– Break – Network with fellow Agents and visit the Exhibit Halls Thursday, september 22, 2011 line-up continued on page 6

BUSINESS REPORT CARD 2011 Recipe for Business Success 10:20 a.m. – 11:20 a.m.

Featuring Curtis Nelson – Author and successful national and international business expert

In “The Recipe”, Curtis Nelson employs decades of successful business experience, defining required ingredients and how to create them. You will learn how to assemble a balanced and talented leadership, to understand the definition and value of a true business leader and to learn what resources are critical to business success. Unlike typical business seminars, you will create a “Report Card” on your business “Recipe,” and walk away with actionable opportunities to improve.

Curtis Nelson has directed the development and successful launch of over 45 new businesses and more than 300 new products for the communications, IT, military, transportation, medical, health, food and gardening industries worldwide. Nelson is a gifted public speaker, entrepreneur, investor, consultant and three-time veteran of Inc. Magazine’s 500 Fastest-Growing Private Companies® list.

Entrepreneurs to seasoned corporate executives and owners and managers of independent insurance agencies are the target of Curtis Nelson’s new book, The Recipe for Business Success. The book is a compilation of decades of proven business practice and theory into one, easy-to-follow “Recipe.” The Recipe is designed to be a strategic analysis tool. A recipe for success, whether business or culinary, requires a finite set of ingredients and specific execution. Each ingredient and amount is equally important as is their related quality and all must be matched to the outcome desired. Also, essential are the proper guidance, the talent to execute and the required resources.

Straying from the simplest of recipes creates results that range from mediocre to catastrophic.

State of Affairs of the Country-Independent Agents National Association (IIABA) 11:20 a.m. – 11:40 a.m.

Featuring IIABA Chairman Mike Donohoe Fellow agent Mike Donohoe from Minnesota will be our guest at the 105th Annual Convention. Mike will update you on the most important issues impacting you from a National perspective.

Michael Donohoe is principal of the James R. Weir Insurance Agency in Mankato, Minn. Donohoe has contributed to the independent agency system in a variety of ways at the state and national level, including serving as the Minnesota Independent Insurance Agents & Brokers (MIIAB) president and as the organization’s representative on the National Board of Directors. He’s a former MIIAB Agent of the Year.

At the national level, Donohoe has also been instrumental to the success of the Big “I” Virtual University and served as the chair of the VU Oversight Task Force from 2001 to 2006. He was instrumental in founding the Big “I” Eagle Agency, an independent agency created exclusively for Big “I” members. In 2005, Donohoe received the Woodworth Memorial, the highest honor the Big “I” awards to an agent which is presented annually to the Big “I” member who best demonstrates outstanding service benefiting independent insurance agents and the entire insurance industry.

11:40 A.M. – 12:15 P.M.

12:15 p.m. – 1:00 p.m. – Sit Down Lunch A time to visit with other agents and discuss business.

105th IIAI President Mark Currie, CIC, CPIA – Insurance Associates A Division of INSPRO, West Des Moines, Iowa:

Insurance Panel of Industry Experts

• The State of Your Association Address

• Awards

1:00 p.m. – 2:00 p.m.

• Swearing in of IIAI Officers

Terry McDonald, CIC – Moderator Susan Voss – Iowa Insurance Commissioner Kim Austen – Allied Insurance Gordon Walker – Pekin Insurance Mike Donohoe – IIABA Chair

The panel will cover the most important issues of 2011. Regulations, loss impacts, federal legislation, media view of our industry and much more. You’ll have a chance to ask the experts your questions too.

2:00 p.m. – 2:15 p.m. - Break – One Last Time to Network

Newt Gingrich – Former U.S. Speaker of the House and Presidential Candidate 2:15 p.m. – 3:15 p.m. – SEE PAGE 5 FOR ARTICLE 3:15 p.m. – 3:30 p.m. – Closing Remarks and Drawing for Prizes

GUEST KEY NOTE SPEAKER Thursday, September 22, 2011 2:15 p.m. – 3:15 p.m.

Newt Gingrich – Former U.S. Speaker of the House and Presidential Candidate Our guest key note speaker for the 2011 IIAI Convention is no stranger to Iowa agents. He is one of the most inspirational political speakers of our time. Newt Gingrich is the architect of the “Contract with America” that led the Republican Party to victory in 1994 by capturing the majority in the U.S. House for the first time in forty years.

Under Newt’s leadership, Congress passed the first balanced budget in a generation, leading to the repayment of over $400 billion in debt. Congress also cut taxes for the first time in sixteen years and reformed welfare, leading to over sixty percent of welfare recipients either getting a job or going to school. In addition, the Congress restored funding to strengthen our defense and intelligence capabilities, an action later lauded by the bipartisan 9/11 Commission.

The Washington Times has called Newt Gingrich “the indispensable leader” and Time magazine, in naming him Man of the Year for 1995, said, “Leaders make things possible. Exceptional leaders make them inevitable. Newt Gingrich belongs in the category of the exceptional.”

Born in Harrisburg, Pennsylvania, Newt’s experiences as the son of a career soldier convinced him at an early age to dedicate his life to his country and to the protection of freedom. Realizing the importance of understanding the past in order to protect the future, he immersed himself in the study of history, receiving his Bachelor’s degree from Emory University and Master’s and Doctorate in Modern European History from Tulane University. Before his election to Congress in 1978, Newt taught History and Environmental Studies at West Georgia College for eight years. He represented Georgia in Congress for twenty years, including four years as Speaker of the House.

Newt served on the Defense Policy Board under President George W. Bush, which provided strategic counsel to the Pentagon and Secretary of Defense on how to better address threats facing the United States. He is also the longest-serving teacher of the Joint War Fighting course for Major Generals and taught officers from all five services as a Distinguished Visiting Scholar and Professor at the National Defense University. In 1999, Gingrich was appointed to the United States Commission on National Security/21st Century, the Hart/Rudman Commission to examine our national security challenges as far out as 2025. The Commission’s report is the most profound rethinking of defense strategy since 1947.

Newt is widely recognized for his commitment to a better system of health for all Americans. His leadership helped save Medicare from bankruptcy, prompted FDA reform to help the seriously ill and initiated a new focus on research, prevention, and wellness.

His contributions have been so great that the American Diabetes Association awarded him their highest non-medical award and the March of Dimes named him their 1995 Citizen of the Year.

In 2003, Newt founded the Center for Health Transformation to develop free market healthcare reforms to foster a 21st Century System of health and healthcare that is centered on the individual, prevention focused, knowledge intense and innovation rich. Newt also served as the Co-Chairman of the National Commission for Quality Long-term Care and the independent congressional Alzheimer’s Disease Study Group.

Newt and his wife, Callista, host and produce award-winning documentary films, including A City Upon a Hill, Nine Days that Changed the World, Ronald Reagan: Rendezvous with Destiny, and Rediscovering God in America. Together, Newt and Callista also author photo books and record audio books.

Newt is the author of twenty-three books, including thirteen New York Times bestsellers.

The Gingriches reside in McLean, Virginia. Their family includes two daughters and two grandchildren.

I’m celebrating our 100th year by planning for our next 100 years.

Chad Veach, Engineering Services Supervisor Today we’re expanding the use of new technologies to identify risks and train workers on how to avoid them. Tomorrow it could be the use of nanotechnology needing monitoring in the workplace or the development of smart systems to better match employees with their responsibilities. EMC Insurance Companies is committed to investing in the necessary resources to achieve our vision of being the best in loss control—today, tomorrow and in the future.

Des Moines Branch: 800.362.2227 | Home Office: Des Moines, IA

www.emcins.com © Copyright Employers Mutual Casualty Company 2011 All rights reserved

EMC INSURANCE companIES a g e n c y a n d c o m pa n y pa r t n e r s h i p s at w o r k

Left to Right: Jim Fontanini, Mick LoBell, Tanya Wentzel; Kevin Hovick

O

“

ur focus is on our agents,” says EMC Insurance Companies Executive Vice President and COO, Kevin J. Hovick, CPCU. “They are our most important customers. And we maintain a close relationship with them through our local branch office structure.”

Hovick continues, “We are committed to the independent agency system and only distribute our products and services through our agency partners. Strong business relationships are at the core of

what we do, and we routinely train our underwriting and marketing staff on the benefits of developing and maintaining those strong relationships.”

What EMC Can Do For Agents “Agents can expect our marketing representatives to help them understand our products and services, assist them in identifying growth opportunities and train them on our online capabilities,” says Des Moines Branch Manager

James Fontanini, CPCU. “Our experienced underwriters are available to assist agents in constructing the correct package of coverage for their customers. In addition, they can assist the agent with sales presentations or meet with customers to explain more about EMC and what we have available. Our local service for underwriting, claims and risk improvement allow us to provide timely, professional service.”

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Agents and Technology EMC is committed to using technology to streamline the workflow for agents, improve the quality of the data available, and increase the efficiency and accuracy of insurance transactions so our agents can better serve their customers. “We continue to develop business tools that help our agency partners save time and make working with EMC easier,” says Fontanini. “We work closely with agency management system vendors to provide Real Time Rating for inquiries and quote on personal and commercial lines (Applied), along with password synchronization (Applied), which saves the agent time from having to enter multiple passwords. We offer downloading capabilities for commercial lines, personal lines, accounting and claims. And we offer paperless accounting, and personal lines and commercial lines options for agents who are downloading.”

Loss Control EMC helps agents with risk management and loss control services for their policyholders, so agents can focus on delivering value-added services to customers. For more than 80 years, EMC has provided sophisticated support, technical expertise and the information and resources needed to reduce the risk of loss and improve safety. The company spends nearly twice as much on these services than most of its competitors. The broad range of loss control services offered (usually at no cost to policyholders) helps agents sell insurance by providing additional value to their policyholders.

Profitable Growth With Our Agencies EMC offers the following lineup of products with comprehensive, flexible coverage so agents can keep the customers they have while attracting even more business: • Commercial lines: property, general liability, business owners, workers’

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compensation, auto, inland marine, umbrella • Personal lines: homeowners, auto, motorcycle, dwelling, inland marine, umbrella • Errors and omissions • Fidelity and surety bonds • Excess and surplus lines with EMC Underwriters, LLC • Reinsurance through EMC Reinsurance Company • Life insurance through our affiliate, EMC National Life Company • Third-party administration with EMC Risk Services, LLC “We work with our current agency partners to help make them more successful and to set reasonable expectations for our mutual growth,” explains Tanya Wentzel, CPCU, CIC, AU Des Moines Branch marketing manager. “We review the penetration and volume of business at the state, county and city level. If we identify an area of the state where we’d like to have more penetration, we evaluate our current agency force to determine whether or not their growth goals align with ours. When applicable, we prospect for new local agency partners. When looking at a new partner, consideration is given to the agency’s growth goals and objectives, the activity level of their sales staff, their perpetuation plans and the make-up of their carrier relationships.

We also determine early on if the agent is a member with the Big “I”, which is important to us.”

Financial Strength and Stability “The strength of EMC Insurance Companies comes not only from the close, positive relationships we maintain with our agents through our branch offices and from the complete range of products and services we offer, but also from the strong financial position of the company,” concludes Hovick.

The company writes about $1 billion in premium, with an additional $80 million in reinsurance premium. EMC’s financial strength is demonstrated by the recordhigh surplus and assets the company attained in 2010: policyholder surplus rose to $1.08 billion, and assets were at a high of $3.163 billion.

Branch Offices EMC serves its agents and policyholders through a network of 21 branch and service offices strategically located throughout the country. This enables the company to provide local service in underwriting, claims, marketing and risk improvement. Agents and policyholders can communicate directly with an EMC representative who understands their local insurance needs and who has the authority to make decisions. The branch office structure also makes it easy to customize commercial products for targeted businesses and associations. The offices across the country primarily provide

EMC Celebrates 100 Years In 2011, EMC Insurance Companies is celebrating 100 years in business. property and casualty insurance products and services in 42 states; however, EMC is licensed in all 50 states and writes reinsurance contracts worldwide. The Des Moines Branch Office and Davenport Service Office cover the state of Iowa.

Our Mutual Brand Insurance customers are much more aligned with their local agent than their insurance carrier because that is where the one-on-one relationship is. “We believe our partnership with independent agents brings a superior level of personalized service to the insurance process.

And to show our support of independent agents, EMC is part of the Trusted Choice® brand initiative,” explains EMC Vice President of Business Development Mick Lovell, CPCU. He continues, “Having customers aware of EMC and its reputa-

This year, we join an elite group of companies. Less than 13 percent of property and casualty companies in the country are 100 years or older—and the majority of those are mutual companies.

EMC Insurance Companies was founded 100 years ago in April 1911 by a group of Iowa businessmen as a mutual insurance company to provide workers’ compensation insurance to Iowa businesses. Now the company provides property and casualty insurance products and services throughout the United States and writes reinsurance contracts worldwide.

The company employs more than 1,200 people in Iowa and partners with independent insurance agencies across the country. Customers have come to Count on EMC ® for comprehensive protection, superior service and financial stability for 100 years.

tion of strength, stability and service helps our agents attract and retain business. So EMC maintains a strong brand presence in the marketplace to help our agency partners sell our products and services,

and reinforce their own local branding efforts. Our brand promise, Count on EMC ®, exemplifies the service our agents and policyholders can expect from EMC.”

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| 33

We want to be number one in your agency.

And many West Bend agents tell us we already are. In a nationwide ease-ofHSMRK FYWMRIWW WYVZI] ;IWX &IRH WGSVIH ½VWX SV WIGSRH IZIV] ]IEV JSV XLI TEWX ½ZI ]IEVW -R JEGX ;IWX &IRH GSRWMWXIRXP] WGSVIW LMKLIV XLER XLI SXLIV GSQTERMIW MR SYV WYVZI] FIRGLQEVO KVSYT &YX HSR´X XEOI SYV [SVH JSV MX ,IVI´W [LEX SYV EKIRXW LEZI XS WE] “I would rather deal with West Bend before any other company.

In my humble opinion, they have the best service, underwriters, and customer service people. They make processing, underwriting, everything easy and quick. There’s no second guessing.”

“West Bend is over and above our other carriers.”

“West Bend has always been our number one company.”

“West Bend has been a main stay the many years I have been an agent of theirs; not just at this agency but at others as well. I honestly can’t think of anything they could do better.”

So when it comes to doing business, make West Bend your first call.

We’re the easy choice.

2010 IOWA INSURANCE MARKET SHARE REPORT

BY BOB SKOW, CPCU, CAE

Cheif Executive Officer Independent Insurance Agents of Iowa

E

ach year IIAI makes available to Iowa’s agents Best’s market share data for Iowa. For 8 years in a row Iowa’s independent agents collectively outperformed all other delivery systems in

growth in the market share. But, that streak of growth at the expense of the competition came to an end in 2010. However, the news isn’t bad, just not as good as we’ve come to expect.

Direct Writers had a .4% increase which means we lost .4%, almost an immeasurable amount. Independent Agents still control 66.6% of the Iowa total property and casualty business!

The biggest shift is Personal Lines where the other guys grew at our expense. While collectively in Commercial Lines independent agents continue to dominate. Combine the facts of reduced basis for premium calculations (receipts, payroll) along with the soft Commercial market we would have to conclude independent agents are still Iowa consumers’ preferred choice to represent them in placing their business.

Once again, most independent agency companies posted operating ratios for Personal Auto which outperformed the captive agent companies, while in homeowners Iowa companies had higher loss ratios than the captive agent companies.

Independent agent market share national was 79.43% for Commercial Lines, and 34.3% for Personal Lines. Iowa posted better numbers in Personal Lines at 37.38%, and slightly less than the National trend in Commercial Lines of 77.8%. Collectively Iowa independent agents wrote 62% of all the P/C business compared to Nationally 56.8%. Iowa ranked as the 10th strongest independent agent market share state in the Country. We think you will find the following report very interesting.

2010 Data

Iowa â&#x20AC;&#x201C; Overall State Ranking (All P/C Lines)

Name

2010 Market Share

(Direct Writers Highlighted)

2009 2010 2009 Market Direct Written Direct Written Share Difference Premiums (000) Premiums (000) Difference

2010 2009 Adjusted Adjusted Loss Ratio Loss Ratio Difference

1 State Farm Group

9.90%

9.10%

0.80%

$498,221

$473,197

$25,024.00

61.7

85.8

-24.1

2 Allied Group a Nationwide Co

8.10%

7.90%

0.20%

$409,566

$411,062

$(1,496.00)

65.7

77.4

-11.7

3 Farm Bureau Mutual Group

5.90%

6.10%

-0.20%

$298,351

$313,543

$(15,192.00)

65.6

92.9

-27.3

Group Inc.

4.00%

3.10%

0.90%

$198,619

$160,721

$37,898.00

62.5

60.3

2.2

5 Progressive Group

3.80%

3.30%

0.50%

$190,307

$173,052

$17,255.00

58.5

65.8

-7.3

6 ACE INA Group

3.60%

4.40%

-0.80%

$183,169

$226,072

$(42,903.00)

43.4

62.6

7 EMC Ins Cos

3.40%

3.20%

0.20%

$173,218

$166,333

$6,885.00

57.8

82.7

-24.9

8 American Family Insurance Group

3.20%

3.20%

0.00%

$162,751

$165,618

$(2,867.00)

59.1

74.1

-15

9 Farmers Mutual Hail Insurance Grp

2.70%

3.20%

-0.50%

$138,165

$167,512

$(29,347.00)

62.5

99.8

-37.3

10 St Paul Travelers

2.70%

2.70%

0.00%

$137,513

$140,580

$(3,067.00)

60

90.4

-30.4

11 Liberty Mutual Insurance Cos

2.40%

2.50%

-0.10%

$121,279

$127,412

$(6,133.00)

63.7

66.9

-3.2

12 Grinnell Mutual Grp

2.30%

2.10%

0.20%

$113,172

$109,717

$3,455.00

50.8

60

-9.2

13 Great American P&C Group

2.00%

2.10%

-0.10%

$101,779

$107,609

$(5,830.00)

46.1

101.5

-55.4

14 Auto-Owners Insurance Grp

1.80%

1.70%

0.10%

$89,969

$87,000

$2,969.00

63.7

78.8

-15.1

15 NAU Country Ins

1.70%

2.10%

-0.40%

$84,849

$109,694

$(24,845.00)

49.3

85.2

-35.9

16 Cincinnati Ins Cos

1.70%

1.70%

0.00%

$84,053

$87,521

$(3,468.00)

53.2

81.3

-28.1

17 IMT Insurance Company Mut

1.60%

1.50%

0.10%

$81,315

$79,189

$2,126.00

51.6

42.9

8.7

18 Wells Fargo Grp

1.50%

1.80%

-0.30%

$76,039

$94,702

$(18,663.00)

75.9

77.8

-1.9

19 Zurich Fin Serv NA

1.50%

1.60%

-0.10%

$73,649

84,965

$(11,316.00)

66.6

85.7

-19.1

20 West Bend

1.50%

1.40%

0.10%

$73,549

$70,426

$3,123.00

52

58.4

-6.4

65.30%

64.70%

0.60%

$3,289,533

$3,355,925

$(66,392.00)

61.62

75.56

-13.94

100%

100%

0%

$5,025,596

$5,177,459

$(151,863.00)

62.4

81.8

-19.4

4 American Intl

Top 20 Totals

All Carriers State Totals

36 |

| SUMMER 2011

106

2010 Data

Iowa – Regional Independent Agency Companies

Name

2010 2010 2009 2010 2009 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Allied Group a Nationwide Co

$409,566

8.10%

7.90%

0.20%

65.7

77.4

-11.7

2 Progressive Group

$190,307

3.80%

3.30%

0.50%

58.5

65.8

-7.3

3 EMC Insurance Companies

$173,218

3.40%

3.20%

0.20%

57.8

82.7

-24.9

4 Farmers Mutual Hail Ins Group

$138,165

2.70%

3.20%

-0.50%

62.5

99.8

-37.3

5 Grinnell Mutual

$113,172

2.30%

2.10%

0.20%

50.8

60

6 Auto-Owners Insurance Group

$89,969

1.80%

1.70%

0.10%

63.7

78.8

-15.1

-9.2

7 NAU Country Insurance

$84,849

1.70%

2.10%

-0.40%

49.3

85.2

-35.9

8 IMT Insurance Company Mutual

$81,315

1.60%

1.50%

0.10%

51.6

42.9

8.7

9 West Bend Mutual Group

$73,549

1.50%

1.40%

0.10%

52

58.4

-6.4

10 United Fire & Casualty Group

$69,515

1.40%

1.30%

0.10%

52.4

57.6

-5.2

Top 10 Totals

$1,423,625

28.30%

27.70%

0.60%

56.43

70.86

-14.43

All Carriers State Total

$2,095,987

41.60%

41.60%

0.00%

61.53

78.84

-17.31

2010 STATE MARKET SHARE Direct Writers 33.4%

Regional Agency Companies 41.6% REGIONAL AGENCY COMPANIES

National Agency Companies 25%

NATIONAL AGENCY COMPANIES DIRECT WRITERS

Iowa – National Independent Agency Companies

Name

2010 2010 2009 20109 2009 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 American International Group Inc

$198,619

4.00%

3.10%

0.90%

2 ACE INA Group

$183,169

3.60%

4.40%

-0.80%

106

62.5

60.3

2.2

43.4

62.6

3 St. Paul Travelers

$137,513

2.70%

2.70%

0.00%

60

4 Great American P & C Group

$101,779

2.00%

2.10%

-0.10%

46.1

90.4

-30.4

101.5

-55.4

5 Cincinnati Insurance

$84,053

1.70%

1.70%

0.00%

53.2

81.3

-28.1

6 Zurich Fin. Serv. NA

$73,649

1.50%

1.60%

-0.10%

66.6

85.7

-19.1

7 Old Republic General Group

$66,899

1.30%

1.30%

0.00%

74.2

88.1

-13.9

8 Hartford Insurance Group

$59,301

1.20%

1.30%

-0.10%

63.1

87.2

-24.1

9 W R Berkley Group

$58,803

1.20%

1.30%

-0.10%

65.1

66.1

-1

10 Chubb Group of Insurance Cos

$56,418

1.10%

1.20%

-0.10%

31.6

156.9

-125.3

Top 10 Totals

$1,020,203

20.30% 20.70% -0.40%

62.84

86.09

-23.25

All Carriers State Total

$1,254,277

25.00% 25.40% -0.40%

55.83

68.41

-12.58

SUMMER 2011 |

| 37

2010 Data

Iowa â&#x20AC;&#x201C; Direct Writers

Name

2010 2010 2009 2010 2009 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 State Farm Group

$498,221

9.90%

9.10%

0.80%

61.7

85.8

-24.1

2 Farm Bureau Mutual Group

$298,351

5.90%

6.10% -0.20%

65.6

92.9

-27.3

3 American Family Insurance Group

$162,751

3.20%

3.20%

0.00%

59.1

74.1

-15

4 Liberty Mutual Insurance Cos

$121,279

2.40%

2.50% -0.10%

63.7

66.9

-3.2

5 Wells Fargo Insurance Group

$76,039

1.50%

1.80% -0.30%

75.9

77.8

-1.9

6 Farmers Insurance Group

$59,656

1.20%

1.00%

0.20%

54.7

63.5

-8.8

7 Allstate Insurance Group

$55,955

1.10%

1.10%

0.00%

47.4

59.2

-11.8

8 PMI Mortgage Group

$50,847

1.00%

1.20% -0.20%

86.4

36.5

49.9

9 Berkshire Hathaway

$41,438

0.80%

0.70%

0.10%

57.1

59.5

-2.4

10 FM Global Group

$28,394

0.60%

0.50%

0.10%

72.4

999.9

-927.5

Top 10 Totals

$1,392,931

27.60% 27.20%

0.40%

64.40

161.61

-97.21

All Carriers State Total

$1,675,332

33.40% 33.00%

0.40%

65.91

111.82

-45.91

2010 Gain Boosts Wellmark Past $1 Billion In Capital

W

ellmark Blue Cross and Blue Shield recorded net income of $74.7 million in 2010, compared with a loss of nearly $146,000 in 2009, according to its latest report filed with the Iowa Insurance Division. The gain helped the Des Moines-based health insurance company, which operates health plans in Iowa and

South Dakota, to increase its capital and surplus by more than 14 percent last year. In Iowa, Wellmarkâ&#x20AC;&#x2122;s health plans recorded net income of $29.4 million last year, a 110 percent increase from $13.98 million in 2009.

On March 31, Wellmark made its first quarterly payment of $3 million on its $125 million loan from U.S. Bank NA for its new headquarters. Under the terms of the load, the final payment is due Sept. 30, 2014, though Wellmark has the option to repay the loan earlier, according to a note in its third-quarter financial statements filed with the state.

Wellmark Blue Cross and Blue Shield Financials*

2010

2009

% Change

Total Revenue (thousands)

$2,200,524

$2,113,889

+ 4.1 percent

Net income (loss)

$74,671

($145.72)

n/a

Total assets

$1,595,890

$1,452,723

+ 9.9 percent

Capital and surplus

$1,005,427

$880,454

+ 14.2 percent

*As of Dec. 31, 2010. Source: Iowa Insurance Division

38|

| SUMMER 2011

2010 Data

Iowa – Private Passenger Auto Physical Damage

(Direct Writers Highlighted)

Name

2010 2010 2009 2010 2009 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 State Farm Group

$132,152

0.00%

68.5

73.8

-5.3

2 Allied Group a Nationwide Co

$76,675

12.30% 12.70% -0.40%

56.2

55.2

1

3 Progressive Group

$75,535

12.10% 11.60%

0.50%

60.9

70.8

-9.9

4 American Family Insurance Group

$46,992

7.50%

7.80% -0.30%

55.6

60.3

-4.7

5 Farm Bureau Mutual Group

$45,499

7.30%

7.00%

0.30%

66.6

70.1

-3.5

6 Grinnell Mutual Group

$32,384

5.20%

5.20%

0.00%

62.7

66

-3.3

7 IMT Insurance Company Mutual

$20,767

3.30%

3.30%

0.00%

55.1

52.8

2.3

8 Allstate Insurance Group

$19,506

3.10%

3.50% -0.40%

36.2

40.4

-4.2

9 Auto-Owners Insurance Group

$14,216

2.30%

2.20%

0.10%

60.3

61.1

-0.8

10 Farmers Insurance Group

$13,501

2.20%

2.00%

0.20%

62

68.8

-6.8

76.50% 76.50%

0.00%

58.41

61.93

-3.52

(Avg.)

(Avg.)

Total from top 10 writers

$477,227

21.20% 21.20%

State Total For All Carriers Combined

$397,033 Direct Writers 23.1%

61.6

64.9

-3.3

2010 IOWA PRIVATE PASSENGER AUTO MARKET

Independent Agents 76.9%

INDEPENDENT AGENTS

Iowa – Other Private Passenger Auto (Liability)

DIRECT WRITERS

(Direct Writers Highlighted)

Name

2010 2010 2009 2010 2009 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 State Farm Group

$139,724

20.60% 20.40%

0.20%

63.8

69.3

-5.5

2 Progressive Group

$96,446

14.20% 13.00%

1.20%

58.4

64.9

-6.5

3 Allied Group a Nationwide Co

$85,442

12.60% 12.70%

-0.10%

50.4

50.8

-0.4

4 Farm Bureau Mutual Group

$49,114

7.20%

7.60%

-0.40%

56.7

57.3

-0.6

5 American Family Insurance Group

$47,546

7.00%

7.60%

-0.60%

52.1

63.6

-11.5

6 Grinnell Mutual Group

$32,088

4.70%

4.60%

0.10%

38.2

68.9

-30.7

7 IMT Insurance Company Mutual

$19,794

2.90%

2.90%

0.00%

52.8

39.8

13

8 Farmers Insurance Group

$17,702

2.60%

2.60%

0.00%

56.3

44.2

12.1

9 Allstate Insurance Group

$16,328

2.40%

2.50%

-0.10%

60.1

42.1

18

10 Berkshire Hathaway

$15,751

2.30%

2.00%

0.30%

64.5

63

76.50% 75.90%

0.60%

55.33

56.39

(Avg.)

(Avg.)

Total from top 10 writers

$519,935

State Total For All Carriers Combined

$679,477

Independent Agents 49.9%

Direct Writers 50.1%

58.4

61

1.5 -1.06 -2.6

2010 IOWA OTHER PRIVATE PASSENGER AUTO MARKET INDEPENDENT AGENTS

DIRECT WRITERS

SUMMER 2011 |

| 39

2010 Data

Iowa – Homeowners Multi-Peril

(Direct Writers Highlighted)

Name

2010 2010 2009 2010 2009 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 State Farm Group

$138,499

27.20% 25.80%

1.40%

2 Allied Group a Nationwide Co

$84,148

3 American Family Insurance Group

$40,227

7.90%

8.30% -0.40%

4 Farm Bureau Mutual Group

$37,067

7.30%

7.00%

0.30%

5 Auto-Owners Insurance Group

$18,464

3.60%

3.60%

6 Farmers Insurance Group

$16,970

3.30%

7 Allstate Insurance Group

$15,671

3.10%

8 Pekin Insurance Group

$13,796

2.70%

9 IMT Insurance Company Mutual

$13,787

10 West Bend Mutual Group

$12,104

Total from top 10 writers

$390,733

16.50% 17.30% -0.80%

69.6

81.2

-11.6

76.3

107.3

0.00%

89.4

97.8

-8.4

3.40% -0.10%

46.3

68.7

-22.4

3.40% -0.30%

48.1

72.5

-24.4

2.90% -0.20%

68.3

71.7

-3.4

2.70%

2.80% -0.10%

64.4

56.7

7.7

2.40%

2.20%

0.20%

53.3

69.9

-16.6

76.70% 76.70%

0.00%

83.02

-18.16

64.86 (Avg.)

64.8

INDEPENDENT AGENTS

Iowa – Inland Marine

Name

(Avg.)

94.9

-31

-30.1

2010 IOWA HOMEOWNERS MARKET

Direct Writers 57%

Independent Agents 43%

-53.1 -18.4

$509,608

State Total For All Carriers Combined

81

105 99.4

51.9

DIRECT WRITERS

(Direct Writers Highlighted)

2010 2010 2009 2010 2009 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Assurant Insurance Group

$25,925

0.70%

38.8

37.5

1.3

2 Liberty Mutual Insurance Cos

$10,412

6.70%

5.40%

1.30%

62.4

66.7

-4.3

3 State Farm Group

$8,768

5.60%

5.50%

0.10%

30.1

49

4 Hartford Insurance Group

$8,667

5.60%

6.90% -1.30%

61.5

49.3

5 FM Global Group

$8,655

5.60%

5.00%

0.60%

227.5

999.9

6 Allied Group a Nationwide Co

$6,620

4.30%

4.30%

0.00%

38.1

50.8

-12.7

7 St. Paul Travelers Group

$6,515

4.20%

4.00%

0.20%

25.9

76.2

-50.3

8 American International Group Inc

$5,875

3.80%

5.20% -1.40%

58.1

56.7

1.4

9 Chubb Group of Insurance Cos

$5,859

3.80%

5.90% -2.10%

23.5

35

10 Old Republic

$5,761

3.70%

3.40%

54.1

39.2

14.9

62.00

146.03

-84.03

Total from top 10 writers

$93,057

16.70% 16.00%

0.30%

60.00% 61.60% -1.60%

State Total For All Carriers Combined

$155,344 Direct Writers 22.9%

Independent Agents 77.1%

40 |

| SUMMER 2011

(Avg.)

61.7

(Avg.)

216.9

-18.9 12.2 N/A

-11.5

-155.2

2010 IOWA INLAND MARINE MARKET INDEPENDENT AGENTS

DIRECT WRITERS

2010 Data

Iowa – Commercial CGL/BOP Liability

(Direct Writers Highlighted)

Name

2010 2010 2009 2010 2009 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Allied Group a Nationwide Co

$12,370

12.70%

12.70%

0.00%

45.2

46.6

-1.4

2 Cincinnati Insurance Companies

$6,908

7.10%

6.90%

0.20%

11.5

28.9

-17.4

3 St Paul Travelers

$6,222

6.40%

6.60%

-0.20%

41.6

97.3

-55.7

4 W R Berkley Group

$5,979

6.10%

6.40%

-0.30%

48.2

100.5

-52.3

5 State Farm Group

$5,690

5.80%

4.50%

1.30%

84.4

172.3

-87.9

6 Auto-Owners Insurance Group

$4,814

4.90%

4.90%

0.00%

49.2

36.2

13

7 General Casualty (QBE)

$4,573

4.70%

5.10%

-0.40%

71.7

-36.2

107.9

8 Grinnell Mutual Group

$3,334

3.40%

3.30%

0.10%

31.5

33.7

-2.2

9 Liberty Mutual Insurance Cos

$3,113

3.20%

3.10%

0.10%

58.3

58.7

-0.4

10 Tokio Marine US Grp

$3,054

3.10%

2.90%

0.20%

5.5

21.8

-16.3

57.40% 56.40%

1.00%

55.98

-11.27

Total from top 10 writers

$56,057

State Total For All Carriers Combined

$97,315 Direct Writers 20%

44.71 (Avg.)

39.7

47.3

-7.6

2010 IOWA COMMERCIAL CGL/BOP LIABILITY

Independent Agents 80%

INDEPENDENT AGENTS

Iowa – Workers’ Compensation

Name

(Avg.)

DIRECT WRITERS

(Direct Writers Highlighted)

2010 2010 2009 2010 2009 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Liberty Mutual Insurance Cos

$53,755

10.00%

9.70%

0.30%

75.8

75.6

0.2

2 EMC Insurance Companies

$50,230

9.40%

8.80%

0.60%

73.9

102.4

-28.5

3 Accident Fund Group

$44,899

8.40%

8.90% -0.50%

74.7

81.4

-6.7

4 Allied Group a Nationwide Co

$32,793

6.10%

6.10%

79.1

82.8

-3.7

5 St. Paul Travelers

$30,155

5.60%

6.80% -1.20%

75.2

90.6

-15.4

6 Zurich Fin Serv NA

$24,033

4.50%

5.50% -1.00%

119.6

101.8

17.8

7 Cincinnati Insurance Companies

$22,568

4.20%

4.50% -0.30%

118.8

90.2

28.6

8 American International Group Inc

$20,762

3.90%

4.30% -0.40%

87.5

71.4

16.1

9 United Fire & Casualty

$18,667

3.50%

3.10%

0.40%

61.4

52

10 Hartford Insurance Group

$16,349

3.10%

3.00%

0.10%

33.9

61.1

Total from top 10 writers

$314,211

0.00%

58.70% 60.70% -2.00%

State Total For All Carriers Combined

$535,611 Direct Writers 21.2%

Independent Agents 78.8%

79.99 (Avg.)

78.9

9.4 -27.2

80.93 (Avg.)

78.2

-0.94 0.7

2010 IOWA WORKERS’ COMPENSATION MARKET INDEPENDENT AGENTS

DIRECT WRITERS

SUMMER 2011 |

| 41

2010 Data

Iowa – Commerical Property

Name

(Direct Writers Highlighted)

2010 2010 2009 2010 2009 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 Allied Group a Nationwide Co

$26,185

0.00%

92.2

173.9

-81.7

2 State Farm Group

$15,945

13.50% 13.50% 8.20%

8.40% -0.20%

60.5

63.2

-2.7

3 Cincinnati Insurance Companies

$15,764

8.20%

8.10%

0.10%

50.1

4 St Paul Travelers

$11,096

5.70%

5.20%

0.50%

148.1

132.8

15.3

5 Chubb Group of Insurance Cos

131

-80.9

$10,451

5.40%

6.00% -0.60%

-6.1

685.4

-691.5

6 W R Berkley Group

$9,248

4.80%

5.30% -0.50%

38.5

73.7

-35.2

7 Auto-Owners Insurance Group

$7,610

3.90%

4.10% -0.20%

47.4

63.8

-16.4

8 QBE Americas Group

$6,077

3.10%

3.20% -0.10%

51.7

93.1

-41.4

9 Grinnell Mutual Group

$5,614

2.90%

2.80%

0.10%

62.9

87.2

-24.3

10 Liberty Mutual Insurance Cos

$5,262

2.70%

2.80% -0.10%

49.8

118.4

-68.6

59.51

162.25

-102.74

Total from top 10 writers

$113,252

58.40% 59.40% -1.00%

State Total For All Carriers Combined

$193,276 Direct Writers 22%

(Avg.)

63.7

140.3

-76.6

2010 IOWA COMMERICAL PROPERTY MARKET

Independent Agents 78%

INDEPENDENT AGENTS

Iowa – Other Commercial Liability

Name

(Avg.)

DIRECT WRITERS

(Direct Writers Highlighted)

2010 2010 2009 2010 2009 Direct Written Market Market Adjusted Adjusted Premiums (000) Share Share Difference Loss Ratio Loss Ratio Difference

1 American International Group Inc

$41,774

12.60%

13.30%

-0.70%

91.2

53.8

37.4

2 St Paul Travelers

$40,925

12.30%

6.00%

6.30%

36.4

73.6

-37.2

3 EMC Insurance Companies

$26,048

7.80%

6.70%

1.10%

35.3

52.9

-17.6

4 Allied Group a Nationwide Co

$21,088

6.30%

5.30%

1.00%

23.3

42.7

-19.4

5 Grinnell Mutual Group

$15,876

4.80%

3.70%

1.10%

30.1

49.6

-19.5

6 Cincinnati Insurance Companies

$11,185

3.40%

3.30%

0.10%

-19.3

90.1

-109.4

7 West Bend Mutual Group

$10,543

3.20%

0.80%

2.40%

11.7

51.8

-40.1

8 Zurich Fin Serv NA

$10,365

3.10%

4.00%

-0.90%

80.1

69.9

9 United Fire & Cas Grp

$10,296

3.10%

2.00%

1.10%

28.1

56.2

-28.1

$8,961

2.70%

1.40%

1.30%

45.1

30.7

14.4

43.19

58.15

-14.96

10 IMT Insurance Cos Total from top 10 writers

$197,061

59.30% 46.50% 12.80%

State Total For All Carriers Combined

$332,338 Direct Writers 12.7%

Independent Agents 87.3%

42 |

| SUMMER 2011

150

(Avg.)

43.5

(Avg.)

50.1

-6.6

2010 IOWA OTHER COMMERCIAL LIABILITY MARKET INDEPENDENT AGENTS

DIRECT WRITERS

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CERTIFICATES OF INSURANCE, BINDERS AND EVIDENCE OF INSURANCE: w

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By Chris Burand, President of Burand & Associates, LLC I visit a lot of agencies and have interviewed hundreds of customer service representatives, account managers, account executives and processors every years. I find that 50 percent or more today have a serious lack of basic knowledge about certificates of insurance, binders and evidences of insurance. The lack of knowledge is more obvious at the staff level because these are the people who process these forms. However, a huge percentage of producers also don’t know the difference, which contributes greatly to the problem.

Chris will be speaking at our 2011 IIAI Convention.

T

hese producers tell clients certain things can be done because they don’t know enough and then they tell the CSR to do it anyway when she or he advises it can’t be done. This greatly increases errors and omissions (E&O) exposure. It also detracts greatly from the agency’s professionalism.

Binders I often ask agency personnel the question “What is the basic difference between a binder and a certificate of insurance?” Far less than half seem to know that the key difference is a binder is a contract of insurance and a certificate of insurance is a form of proof of insurance. They do not understand that when they “bind” coverage, they are creating an insurance contract, whereas when they issue a certificate of insurance, they are simply warranting certain coverages exist at a given moment.

This is why many agency personnel use binders and certificates and evidences of insurance almost interchangeably, which is a huge mistake. Because binders are contracts, the people writing the contracts absolutely must know whether they

have the authority to do so. This is why binding guidelines are provided to every agency that has binding authority with a particular carrier. Some carriers have made it more difficult to find these guidelines in recent years, but the guidelines still exist.

I often find that less than 25 percent of an agency’s staff ever has a copy of the agency’s binding authority. In some cases, agency management does not want the staff to know and simply allows them to write binders anyway. This is just plain stupid. If staff and producers have agency management’s authority to write binders, and assuming management wants the job done correctly, they must know the agency’s binding authority! (“Guidelines” is a misnomer as it is really a list of the agency’s contractual binding authority by line.)

Some agency managers do not want staff to write binders, but they fail to communicate this to the staff. At the same time, so few staff really understand binders, half the time they are binding risks and they do not even know that’s what they are doing. None of these situations are in the best interest of the agency.

Here are a few key points:

1.

If the agency says it will or is binding coverage, it has issued a

binder. Whether the agency has authority, whether an actual binder is created (which is an entirely different issues), and whether a binder is even necessary does not matter once an agency has stated coverage is bound.

Just because a carrier states it will write a risk does not automatically mean the company is binding the risk.

Writing and binding are not necessarily the same thing.

An agency never, ever has binding authority with excess and surplus (E&S) markets. Thus, when an E&S broker states it will bind a risk, the agency should never tell the client that the agency is binding the risk because it is not—the broker is binding the risk. The semantics are important. Furthermore, an agency should not tell the client the broker is binding the risk based on a conversation. The agency should get what the E&S broker promised in writing.

Also, simply because a client demands a binder does not mean the agency has to give the client a binder unless the client really does need a temporary contract of insurance. If the client really just needs proof of insurance, then the agency should issue the proper proof—not a binder. Very few clients possess insurance licenses, so rarely do they really know what form they need. The agency is

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SUMMER 2011 |

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the entity with the license and should do what is right.

Many times binders are issued because the insurance policy has not been delivered. I am amazed at how Detroit can manufacture an automobile faster than some insurance companies can print a boilerplate insurance policy. But be that as it is, agencies should rarely write a temporary contract on top of an insurance policy that already exists. Just because the paper policy has not arrived, does not necessarily mean coverage does not exist.

Evidences of Insurance In personal lines, most insureds, banks and real estate agents need evidences of insurance, not binders. The policy is in effect but has not arrived. So why not provide evidence of insurance rather than a binder?

Certificates of Insurance First, letâ&#x20AC;&#x2122;s call this area what it isâ&#x20AC;&#x201D;a mess. We have a mishmash of laws or lack of laws and regulations among the states such that what works in one state does not always have relevance in another state. This has become incredibly apparent with the new ACORD certificate form.

Second, when an agency is trying to go the extra mile for its insureds by providing certificates that fit their needs, they should not overstep their authority.

Agents do not have authority to change language, unless maybe a carrier gives the agency explicit written authority to do so. If an agency changes the language, the agency could be violating copyright law and changing the insurance companyâ&#x20AC;&#x2122;s filing with the insurance department.

Everyone knows what happens when there is a claim involving an agency changing its insurance companyâ&#x20AC;&#x2122;s filing,

right? The agency loses the E&O claim!

Third, a certificate is proof of certain coverage at a certain time. It is not an insurance contract, it is not a binder, and it is not supposed to be used to increase coverage. If any agents reading this have not had everyone in their agency take the Virtual Universityâ&#x20AC;&#x2122;s Certificate of Insurance class from the Independent Insurance Agents and Brokers of America (IIABA), they are making a grim mistake.

Bill Wilson did a great Job building this program. This should be a mandatory class for every agency.

Good Practices Because binders are contracts, there is more E&O exposure involved with binders than with certificates of insurance, assuming certificates are processed correctly.

Given the statistics on the rising number of E&O claims related to certificates, it is

Common sense: the knack of seeing things as they are, and doing things as they ought to be done.

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iowa INSURANCE hall of fame clear that many certificates are not processed correctly. But assuming an agency takes the VUâ&#x20AC;&#x2122;s certificate class and begins processing them correctly, certificates should be safer than binders. The need for binders today is also limited versus 20 years ago and many agencies are doing their best to not issue binders. Moreover, when certificates are processed correctly and binders are not issued except in rare situations agencies spend less time and money servicing accounts, which is important today.

Most important though, knowledge of the differences among these forms, of which Iâ&#x20AC;&#x2122;ve only touched lightly, is critical.

Everyone in every agency needs to have a strong, basic knowledge of these differences.

Chris Burand is president of Burand & Associates, LLC, an insurance agency consulting firm. Readers may contact Chris at (719) 485-3868 or by e-mail at chris@burand-associates.com NOTE: None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this article. Regulated individuals/entities should also ensure that they comply with all applicable laws, rules, and regulations.

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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/

Pictured at this 15th annual induction ceremony the recipients are from left to right: Stanley J. Reynolds of Reynolds and Reynolds of Des Moines, James Kirkpatrick former President of Allied Insurance Co, Vicki Sodawasser on behalf of her father Vern Sodawasser who died in 2010, Thomas Petsche a Life Insurance Agent of Cedar Rapids, and George Fischer former Iowa Insurance Commissioner on behalf of his father Charles who died in 1955.

SUMMER 2011 |

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2011 young agents conference The 2011 Young Agents Conference was held May 11 & 12, 2011.

Besides a lot of networking and great entertainment the agents listened to three different speakers.

They discussed selling techniques, Certificates of Insurance and Tort Liability. Great time was had by all.

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