The CHART Exchange December 2019

TABLE OF CONTENTS 15

Merger & Acquisition Services, Inc. Winner At 18th Annual M&A Advisor Awards

16

No Payment? No Privacy: A Frightening Innovation In Ransomeware

19

CDC Confirms: Vitamin E Acetate As Cause Of Some Vape-Lung Cases

20

Unemployment Insurance Management: A Critical Step In Controlling EPL Exposure

22

Let Someone Else Do It: Outsourcing

25

Improving Business Processes Has Never Been So Easy

Glenn W. Clark, CPCU, Publisher CHART Exchange Earliest Adopter

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ValueMomentum Recognized For Its Stellar Global Business Performance

6

CHART Brings Holiday Gifts To The Marketplace

35

9

NY Shield Act Compliance - Three Key Steps Toward Reasonable Cyber Security

California Privacy Act Will Impose New Obligations On Businesses

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11

SPECIAL REPORT: How Active Shooter Response & Risk Transfer Has Evolved

Lloyd’s Launches New Space Risk Product & New Analysis Of The Space Sector

46

Three Insurance Consulting Risks & How To Manage Them

49

Integrate Technology With Agency Operations

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12

Lloyd’s Campaign Urges Market To Speak Up Against Unacceptable Behavior

Cover Image: The image is released free of copyrights under Creative Commons CC0.

SPECIAL REPORT:

DECEMBER 2019 VOLUME 4 - ISSUE 12

HOW ACTIVE SHOOTER RESPONSE AND RISK TRANSFER HAS EVOLVED IN RECENT DECADES

Publisher: CHART Exchange Glenn W. Clark, CPCU Membership Services Kate Boyle Advertising: Kate Boyle Managing Editor: Kate Boyle Contributing Editor: Frank Huver Layout, Design & Circulation: Ron Manera AdMax Corp., Inc.

CHART Exchange

info@chart-exchange.com 3001 Philadelphia Pike Claymont, Delaware 19703 www.chart-exchange.com 302-765-6001 Last Issue:

PREFER TO READ IN PDF FORMAT? DOWNLOAD THE PDF VERSION HERE

ADVERTISING IN THE CHART EXCHANGE MAKES SENSE: CALL KATE: 302.765.6056

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MESSAGE FROM THE EARLIEST ADOPTER

CHART EXCHANGE BRINGS HOLIDAY GIFTS TO THE MARKETPLACE

The staff at the CHART Exchange is also getting caught up in the holiday spirit. We have something special for all of the players in the U.S./London marketplace – new agents, existing Coverholders, Syndicates, and Vendors. Best of all, we’re not even keeping a ‘Naughty or Nice’ list.”

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DECEMBER 2019

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he holiday season is almost upon us. People are flocking to the shopping malls (or to their computers) in search of the perfect gifts for family and friends.

Festive lights and other decorations are showing up everywhere. And little children around the world are getting excited for the annual visit from Jolly Old Saint Nick.

The staff at the CHART Exchange is also getting caught up in the holiday spirit. We have something special for all of the players in the U.S./ London marketplace – new agents, existing Coverholders, Syndicates, and Vendors. Best of all, we’re not even keeping a “Naughty or Nice” list. Here are the presents we offer:

Glenn W. Clark, CPCU Publisher & Earliest Adopter

For agents interested writing business with London. Many domestic producers are mystified by Lloyd’s. Our gift is one of support.

The CHART team has the expertise to turn your new product of program idea into a reality. We can help in the development of marketing plans, business strategies, and other submission materials. Any deficiencies identified during this process can be resolved through our network of vendors. These partners are proficient in a vast array of disciplines, including actuarial, legal, marketing, and claims administration.

CHART’s ability to support agents extends into London as well. We possess the resources needed to identify those Syndicates possessing risk appetites compatible with the

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www.chart-exchange.com

proposal being submitted. Our team can also facilitate placement of the business.

For existing Coverholders. There are over 1,400 domestic agencies possessing delegated underwriting authorities from Lloyd’s. To this unique segment we can provide the gift of distribution. CHART Markets is an on-line shopping mall established for the retail agent community. Much like its “brick-and-mortar” counterpart, this London-centric facility provides participating Coverholders with virtual storefronts from which their various product and service offerings can be promoted.

Marketing campaigns conducted throughout the year will be designed to drive members of the retail insurance agent community to the unique internet platform. For an additional fee, storefront ownerspecific promotional efforts can be launched which focus attention on that client’s particular product portfolio

www.chart-exchange.com

For London Syndicates. A number of London markets have developed insurance offerings specifically designed for the U.S. market.

Unfortunately, they still face the daunting task of finding the right wholesaler while also maintaining a cap on acquisition costs. To these Syndicates we offer the gift of relief.

The CHART MGA facility was designed to address this need. We have a turnkey back office with the capacity to handle all aspects of the insurance transaction, including underwriting, premium collection/remittance, marketing, and compliance. Our group is licensed to handle surplus lines business in all fifty states and already possesses delegated underwriting authorities from Lloyd’s.

For Vendors. There are a number of firms who cater specifically to the insurance industry. To this group, we offer the gift of networking. Our clients are in need of your expertise.

Let CHART be your source of good leads through a reciprocal business partnership.

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For those interested in fully optimizing their relationship with CHART, consider placing ads and contributing content to our digital magazine. This e-publication has a circulation of over 100,000 retail insurance agents from across the country.

The CHART team wishes everyone Happy Holidays and a prosperous New Year. Feel free to e-mail us at info@chart-exchange.com with any questions you may have.

Glenn W. Clark , CPCU CHART’S Earliest Adopter

DECEMBER 2019

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Protect data, people, reputation and the bottom line with end-to-end cyber security solutions from Kroll.

CY B E R R I S K A N D B R E AC H R E S P O N S E Incident Response

Deep & Dark Web Monitoring

Managed Detection and Response

Data Breach Notification Solutions

Cyber Risk Assessments

CISO and Data Protection Advisory

PFI / QSA Services for PCI

Table Top Exercises

kroll.com

ANALYSIS - KROLL

NY SHIELD ACT COMPLIANCE – THREE KEY STEPS TOWARD REASONABLE CYBER SECURITY

By Matthew Dunn and Jose Trujillo

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bout the co-author: Matthew Dunn is an associate managing director in Kroll’s Cyber Risk practice, based in Nashville. Matt serves Kroll’s clients with an exceptional combination of professional experiences garnered in his decades of service with the Federal Bureau of Investigation as well as in the practice of law handling litigation matters in both federal agency and private practice contexts. While with the FBI, many of Matt’s assignments involved global investigations, which informs his perspective on cyber and other threats.

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bout the co-author: Jose Trujillo is a Senior Associate in the Cyber Risk practice of Kroll, a division of Duff & Phelps, based in the Los Angeles office.

Jose assists organizations in complying with diverse cybersecurity and data privacy regulations, including but not limited to the GDPR, NYDFS, CCPA, SECOCIE guidelines, PCI DSS, Dodd-Frank Act, COPPA, GLBA, FCRA, HIPAA and TCPA. Jose assists in managing incident response engagements for clients across a wide range of industries involving investigative digital forensics, intrusion response (unauthorized access), and malware analysis.

I

n the past two years, Kroll’s Cyber Risk practice has worked with many corporate clients to assess their data collection policies and provide recommendations to ensure compliance with new data privacy and breach notification legislation such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

The New York Stop Hacks and Improve Electronic Data Security (NY SHIELD) Act is the latest in a growing list of state legislature enacted to reduce the compromises of individual’s personal data exposed from data breaches. According to Forbes.com, in the first six months of 2019 there have been over 3,800 documented data breaches resulting in the exposure of more than 4 billion records, most of those being email and passwords.

While reading about the breach du jour can make many consumers complacent regarding the protection of their personal data, See NY Shield Act Page 27

www.chart-exchange.com

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THERE’S A BETTER WAY TO CONNECT WITH LONDON …

CHART CAN GET YOU THERE FASTER! Most of us know about Lloyd’s of London. The market’s 332 year track record of innovation, technical expertise, and product diversity has cemented its reputation within the industry. Unfortunately, the vast majority of U.S.-based agencies with new program or product ideas are unsure of how to access the world’s oldest insurance brand.

The CHART Exchange can help. We were established for the sole purpose of growing the U.S./London marketplace by serving as the conduit between domestic producers and Lloyd’s Risk Takers. Our vast network of Vendor Partners can provide the support needed to help develop your program proposal. Available services include Actuarial, Claims Administration, Marketing, Legal, and Systems. We can even assist in expediting the implementation of your new program through our unique “Incubator” facility.

Interested in learning more? Visit our website at www.chart-exchange.com. We are also available via e-mail (info@chart-exchange.com) or by phone at the number below.

855-716-3660 The CHART Exchange 3001 Philadelphia Pike Claymont, DE 19703 www.chart-exchange.com • Fax: (302) 334-0325

SPECIAL REPORT HOW ACTIVE SHOOTER RESPONSE AND RISK TRANSFER HAS EVOLVED IN RECENT DECADES

T

By Paul Marshall

he response to active shooter situations has evolved over the past several decades, but the risk to life continues to loom. Progress has been made by overhauling law enforcement and emergency personnel procedures, but active shooter risk remains. In creating active shooter protocols, it is helpful to have an overview of how active shooter response policies have evolved over the decades. Wellinformed emergency management personnel can then create company active shooter plans with the most recent law enforcement practices in mind.

While many would mark Columbine as the start of the rise of active

shooter incidents, the problem has a much longer history. In 1966, The University of Texas at Austin campus was held siege by an active shooter who climbed the campus clock tower and fired at the university crowd. Both citizens and emergency personnel

responded to the shooter, but the incident went on for 96 minutes. The shooter killed 14 people and wounded dozens more.

The event gave rise to an active shooter response plan that involved local police departments responding and securing the scene. The first responders would then wait for the

better trained and heavily equipped SWAT team to arrive and apprehend the shooter. This response protocol developed over decades and was widely adopted across the nation.

The shortcoming of the plan became painfully clear after the Columbine massacre. In 1999, two students entered their Colorado high school and killed 12 classmates, a teacher, and wounded more than 20 others. Per the response protocols in use at the time, deputies arrived, surrounded the school, and waited for the SWAT team. Emergency officials didn’t enter the school until 47 minutes after the shooting began.

See Active Shooter Pg 44

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bout the author: Paul Marshall has of over 25+ years of insurance and risk management expertise and is responsible for the formation, growth, profitability and overall strategy, of McGowan Active Shooter / Workplace Violence Programs. Since the program’s inception in 2016 he has insured over 1,000 businesses, organizations and events throughout the Unites States. He is frequently interviewed by media outlets has authored multiple articles/blogs and presents at industry conferences throughout the US and internationally.

www.chart-exchange.com

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DECEMBER 2019

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NEWS - LLOYD’S OF LONDON

LLOYD’S CAMPAIGN URGES MARKET TO SPEAK UP AGAINST UNACCEPTABLE BEHAVIOUR Today Lloyd’s launched a campaign to encourage more people to speak up against unacceptable behaviour as part of a programme of measures put in place to address the findings of Lloyd’s Annual Cultural Survey (published 24 September 2019) and accelerate progress towards a culture of integrity, respect and inclusion across the Lloyd’s market.

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he campaign aims to highlight the importance of speaking up and provide clear guidance on how individuals can take action if they see or experience unacceptable behaviour. High impact advertisements, banners, and vinyl posters will feature prominently within the Lloyd’s building in London as part of the campaign, together with easily accessible guides, online information

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(Lloyds.com/speakup) and resources, as well as a 24/7 Advice Line (0333 212 3510), available to anyone who works in the Lloyd’s market.

The #SpeakUp campaign seeks to directly address the Lloyd’s Annual Culture Survey findings that 38% of respondents did not know who to raise concerns to in the Lloyd’s market and only 45% of people felt comfortable enough to raise a concern.

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John Neal, Lloyd’s CEO, said, “At Lloyd’s we expect all market participants to act with integrity, be respectful and always speak up.

I hope this campaign encourages more people to do so. You will be heard, you will be supported, and we will act, because no matter what form it takes, harassment is never acceptable.

“The ambition here is to make a positive difference in many people’s lives, by empowering individuals to act and intervene when they witness unacceptable behaviour. I think everyone has a role to play. Lloyd’s leadership is fully committed to transforming the culture at Lloyd’s with shared values that will shape the behaviours, choices and actions of everyone in the marketplace.”

www.chart-exchange.com

“WHEN YOU’RE FINISHED CHANGING,

YOU’RE FINISHED” - Benjamin Franklin

Benjamin Franklin: Scientist, philosopher, Founding Father … and business strategist?

Mr. Franklin’s advice about adapting to thrive is especially appropriate in the highly fluid insurance industry.

The CHART Exchange began with a good idea back in 2015: become the catalyst for growth in the U.S./London marketplace by facilitating interaction between domestic wholesalers/agency specialists and Syndicate underwriters. Large-scale networking events were held annually in elegant venues. While this approach produced results, feedback from the meeting participants indicated we could do much more to achieve our goal.

As a direct result of this feedback, CHART 2.0 adopted a more proactive operating model intended to provide advocacy-level support to U.S.-based agencies seeking to place business within the London market. The expertise of our various Vendor Partners — when combined with new brokerage placement capabilities — gives CHART 2.0 clients access to a broad array of services they need to be successful.

Interested in learning more? Visit our website at www.chart-exchange.com. We are also available via e-mail (info@chart-exchange.com) or by phone at the number below.

www.chart-exchange.com

The CHART Exchange, 3001 Philadelphia Pike Claymont, DE 19703

Phone: (855) 716-3660

•

Fax: (302) 334-0325

NEWS Merger & Acquisition Services

serving the insurance industry

Merger & Acquisition Services is a

SPECIALIST ADVISORY AND FINANCIAL SERVICES FIRM firm specifically to participants within the insurance industry.

Our mission is to provide

CONCIERGE-LEVEL SERVICES AND EXPERTISE

PROUD SPONSOR OF

SOLELY FOCUSED ON THE INSURANCE INDUSTRY. This allows our advisors to obtain critical industry knowledge and subsequently, provide clients with sound advice.

M&A Services has closed

MORE THAN 100 TRANSACTIONS IN 10 YEARS and has earned continuous placement within the "Top 5 Financial Advisors in Insurance Underwriting" according to SNL Financial.

Investment banking services and securities transactions are provided through and completed by Merger & Acquisition Capital Services, LLC., a broker-dealer registered with the U.S. Securities and Exchange Commission and member of FINRA and SIPC.

OUR SERVICES Agency M&A Transactions Carrier M&A Transactions Agency Financing Capital Raising Strategic Advisory Valuation Services Program Business Renewal Rights Fronting

info@maservices.com http://maservices.com

(212) 750-0630 320 East 53rd Street New York - NY - 10022 Copyright 2017 Merger & Acquisition Services, Inc. & Merger & Acquisition Capital Services, LLC. All Rights Reserved.

NEW YORK, NY - ATLANTA, GA - MYSTIC, CT - CAYMAN ISLANDS

within the insurance industry by assisting firms with their corporate development and acquisition/divestiture objectives.

M&A Services is

NEWS - M&A SERVICES

MERGER & ACQUISITION SERVICES, INC. WINNER AT 18TH ANNUAL M&A ADVISOR AWARD

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ew York, NY, November 20, 2019 – The M&A Advisor has announced the Winners of The M&A Advisor Awards on November 19th, 2019 during the 18th Annual M&A Advisor Awards Gala at the New York Athletic Club.

Merger & Acquisition Services’ CEO Jason Murgio was awarded INVESTMENT BANKER OF THE YEAR Merger & Acquisition Services was awarded CORPORATE/ STRATEGIC DEAL OF THE YEAR ($100MM-$250MM) Acquisition of Lackawanna Insurance Group by Group 1001 www.chart-exchange.com

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he 18th Annual M&A Advisor Awards Gala - the premier celebration of the year for firms and professionals in M&A “dealmaking” - brought together the industry’s leaders, vying for the 2019 Awards, to celebrate the Finalists and Winners. The ceremony also honored 2019 Lifetime Achievement and Leadership Award Winners with their induction into The M&A Advisor Hall of Fame.

In addition to winning Investment Banker of the Year and Corporate/ Strategic Deal of the Year, the Firm was also among 8 Finalists nationwide covering all industry segments in the following categories: •

•

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FINANCIAL DEAL OF THE YEAR Acquisition of Ozark National Life Insurance by National Western Life Insurance Company CORPORATE/STRATEGIC DEAL OF THE YEAR ($100MM-$250MM) Acquisition of Ozark National Life Insurance by National Western Life Insurance Company M&A DEAL OF THE YEAR $100MM-$250MM) - Acquisition of Ozark National Life Insurance by TABLE OF CONTENTS

•

•

National Western Life Insurance Company DEBT FINANCING OF THE YEAR - Debt Financing of Summit Risk Advisors with Colbeck BOUTIQUE INVESTMENT BANKING FIRM OF THE YEAR – Merger & Acquisition Services, Inc.

Founded in 1998, The M&A Advisor introduced the awards program in 2002. Since then, they have been recognizing our industry’s most notable dealmakers, firms, and transactions. “Today’s geopolitical climate presents our industry professionals and the businesses they serve with unique challenges,” said Roger Aguinaldo, founder of The M&A Advisor.

See M&A Awards Page 33 DECEMBER 2019

15

ANALYSIS - BLUEVOYANT

NO PAYMENT? NO PRIVACY: A FRIGHTENING INNOVATION IN RANSOMWARE

By Timothy Lehey and Jennifer Rothstein

R

something of great value and demand payment in exchange for its return.

ansomware is a highly technical deployment of an ancient interpersonal crime: extortion.

As organizations improve their ability to respond

Since its advent, cybercriminal organizations

successfully to ransomware attacks, cybercriminals

and security personnel continue to play a

too will change their methods. For example,

game of cat and mouse at the front lines of technology.

organizations are increasingly aware of the importance

However, as much as the details may change, the core dynamic of this crime remains the same: criminals steal

See Ransomeware Page 32

About the Co-Author: Jennifer Rothstein is the Business Development Head, Insurance & Legal, for BlueVoyant, a cybersecurity provider headquartered in New York City. She also co-founded and serves as the President of Women in Cyber Leadership Corp. As the cyber security industry has been rooted in STEM and the military, she recognized that it can be intimidating for women to start and thrive within the space, and has dedicated her efforts to providing everyone with the tools, opportunity, knowledge and confidence to succeed in cyber.

Throughout her career at companies such as Kroll and AIG, she has lead the effort in combining cyber expertise with her deep knowledge in insurance. She is driven by a resolve to demystify two complex categories allowing access and understanding to both cybersecurity and insurance in our increasingly interdisciplinary and interconnected world.

About the Co-Author: Tim Lehey is a Cyber Threat Intelligence Analyst and Dark Web Investigator at BlueVoyant. He has expertise in opensource and dark web online investigations. Tim holds a Master’s in International Security Policy and previously worked as a Latin America Cybercrime Analyst at the dark web intelligence firm Flashpoint.

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www.chart-exchange.com

www.bluevoyant.com

••

For insureds that need forensics, incident response, or proactive security services

••

BlueVoyant is a pure play cybersecurity firm

••

WE GET IT – we do it faster and better

Austin Berglas | Global Head of Professional Services austin.berglas@bluevoyant.com Vincent D’Agostino | Head of Cyber Forensics & Incident Response vincent.dagostino@bluevoyant.com Jennifer Rothstein | Business Development Head, Insurance & Legal jennifer.rothstein@bluevoyant.com Breached: incident@bluevoyant.com | Info: contact@bluevoyant.com

YO U R PA RT N E R F O R A D M I T T E D M A R K E T C A PAC I T Y PROGRAM CARRIER WITH

1.1 BILLION

$

IN TOTAL SALES

A- RATING A.M. BEST

S P E C I A LT Y P RO G R A M S

PREMIUM FINANCE

7

ADMITTED

INSURANCE COMPANIES

CAPTIVES & RETRO COMMISSION STRUCTURES RISK PARTICIPANT SUPPORTING COVERHOLDERS, MGA S & MGU S

CREDIT P RO G R A M S

WA R R A N T Y P RO G R A M S

As a CHART vendor partner, Fortegra’s admitted paper helps coverholders and MGAs gain access to premier markets.

Learn how Fortegra’s admitted program can help you Experience More at fortegra.com/programs, or via email at programs@fortegra.com.

Fortegra® is the marketing name for the specialty underwriting operations of Fortegra Financial Corporation and its subsidiaries. Specialty underwriting program availability varies by jurisdiction. Where available, the programs are underwritten by admitted insurance companies.

REPORT: WILSON ELSER

CDC CONFIRMS VITAMIN E ACETATE AS CAUSE OF SOME VAPE-LUNG CASES

By Ian A. Stewart

O

n November 8, 2019, the Centers for Disease Control and Prevention (CDC) released an updated statement confirming the presence of vitamin E acetate (tocopheryl acetate) in lung fluid samples taken from multiple patients diagnosed with e-cigarette or vaping product use associated lung injury (EVALI). Vitamin E acetate is one of several unregulated additives used primarily in illicit market vaping products that the CDC is investigating as a potential cause of the recent epidemic of illnesses and deaths.

Laboratory testing of fluid collected from the lungs of 29 patients with EVALI submitted to CDC from 10 states found vitamin E acetate in all of the fluid samples. CDC reports that “this

is the first time that we have detected a potential chemical of concern in biologic samples from patients with these lung injuries.”

The affected patients used both THC and nicotine vape products. THC was identified in 82% of the samples and nicotine was identified in 62% of the samples. No suspect chemicals other than vitamin E acetate were identified in the samples tested. CDC reports that it could not detect a range of other chemicals that might be found in vaping products, including plant oils, petroleum distillates such as mineral oil, medium chain triglyceride (MCT) oil and terpenes.

According to CDC, “these findings provide direct evidence of vitamin E acetate at the primary site of injury within the lungs.” CDC cautions,

however, that although it appears vitamin E acetate is associated with EVALI, there may be multiple causes of the outbreak and “many different substances and product sources are still under investigation.”

In addition to a general recommendation by CBC that no nicotine- or THC-based vaping product be used, CDC specifically recommends that people should not buy any type of vape product off the street or modify or add any substance that is not intended by the manufacturer.

As of November 5, 2019, 2,051 cases of EVALI have been reported to CDC from every state except Alaska. Thirtynine deaths have been confirmed in 24 states and the District Columbia.

I

an Stewart has defended complex litigation in state and federal courts for more than 20 years with a focus on product liability, complex general casualty, cannabis law, transportation and marine claims, data privacy and security, and intellectual property litigation. Ian is co-chair of the firm’s Cannabis Law practice and a member of the Information Governance Leadership Committee. Ian is committed to client communication and cost-effective litigation management. He is a proponent of efficient claim resolution and Legal Project Management. Ian goes out of his way to ensure that he understands his clients’ business and goals so that an agreed strategy can be identified and implemented at the outset of any litigated matter.

www.chart-exchange.com

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ANALYSIS - LAURDAN ASSOCIATES

UNEMPLOYMENT INSURANCE MANAGEMENT: A CRITICAL STEP IN CONTROLLING EPL EXPOSURE

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nlike other human resource management issues, unemployment insurance (UI) management issues have a direct impact on an organization’s tax liability, and since taxes reduce profitability, on its bottom line. Unlike other payroll taxes however, UI taxes are experience-rated and represent a controllable expense. An organization’s UI experience, influenced by its success in managing turnover, separations, and chargeable UI claims, thus provides an objective measure of human resource

management effectiveness. UI management also provides a critical step in managing EPL exposure.

The relationship between human resource management and financial management stems from the unique nature of the nation’s UI program.

The UI program is a joint federal-state partnership under which benefits in the form of a temporary, partial wage replacement are provided to unemployed workers who have lost their jobs through no fault of their own. The program attempts to draw a relationship between benefit

entitlement and wages earned, and between an employer’s benefits liability and the amount of wages paid by that employer. Within broad federal guidelines, each state is allowed to determine its taxing methods, its benefits program, and qualification for benefits.

An organization’s control of UI taxes is achieved through a combination of financial and human resource management activities. Cost control of an individual employer’s UI See Unemployment Insurance Pg 23

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bout the author: Ronald Adler is the president-CEO of Laurdan Associates, Inc., a veteran owned, human resources management consulting. Ronald Adler is the president-CEO of Laurdan Associates, Inc., a veteran owned, human resources management consulting firm specializing in HR audits, employment practices liability risk management, HR metrics and benchmarking, strategic HR, and unemployment insurance cost management. Mr. Adler has more than 45 years of HR consulting experience working with U.S. and international firms, small businesses and non-profits, insurance companies and brokers, and employer organizations. Mr. Adler is the developer the Employment-Labor Law Audit™ (ELLA®), the nation’s leading HR auditing and employment practices liability risk assessment tool — now in the tenth edition. g firm specializing in HR audits, employment practices liability risk management, HR metrics and benchmarking, strategic HR, and unemployment insurance cost management. Mr. Adler has more than 45 years of HR consulting experience working with U.S. and international firms, small businesses and non-profits, insurance companies and brokers, and employer organizations.

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www.chart-exchange.com

One Star Insurance Solutions, LLC offers a comprehensive Excess Program available to all independent agents for excess coverage with limits from $1 million to $10 million. Additional limits are also available upon request.

We received our Lloyd’s Coverholder designation in 2016 and have underwriting authority to offer follow-form excess in 13 states.

This program is open to all agents with a specific focus in the oil & gas sector, who have needs for increased limits /coverages over underlying policies and want to take advantage of the follow-form coverage.

This Excess coverage is also available on risks such as contractors for building trades, transportation construction, utility construction, land improvement, forest products, structural moving and general contractors.

It is our recommendation that you offer our indication unsolicited to all of your oil & gas clients. The reason is two-fold:  Our Rate Indication Workbook provides fast, accurate indications for your clients. In most cases, the indication that is calculated will be the final quote*.  Most importantly, by offering an excess quote you have alleviated the burden of a potential E&O claim.

Gunnar Kephart, E&O Specialist for the Independent Insurance Agents of Texas has indicated that the largest number of E&O claims have come as a result of not offering enough limits or not offering the coverage at all.

Over BITCO:

Submission Requirements

Signed Acord 125 & 131 BITCO Auto Questionnaire Oil Lease Operator/Contractor Questionnaire Underlying Quotes Underlying Limit Requirements: CGL 1M/3M, AL 1M, PL 1M/3M, EL 1M/1M/1M

5-year Currently Valued Loss Runs If applicable: Well Schedule Drilling footage for wells to be drilled MSA Program Manager, Hannah Walters Hannah@1starins.com *Complete submissions will need to be made with all required data before a formalized quote can be issued.

ANALYSIS - COST FINANCIAL

LET SOMEONE ELSE DO IT

E

very business imposes a broad range of responsibilities on the owners. No matter the core activity or main profit driver, all businesses require attention to detail in the form of invoicing, accounts, scheduling, human resources, customer service and bookkeeping, among many, many other tasks.

It’s no wonder, then, that outsourcing has become so common. And with the explosion of the Internet and digital tools, outsourcing is used for more than manufacturing physical objects and subassemblies. More businesses, large and small, outsource services, financing and tasks that are traditionally thought

of as belonging in-house, such as record keeping, human resources and marketing.

Some companies have even outsourced their customer relations to call centers.

This strategy frees up your resources, and especially time, to focus on your core business activities and growth.

While there are considerations for keeping such tasks in-house, it’s definitely worth your time to weigh what the benefits would be to hire experts to handle specialized duties.

ADVANTAGES OF OUTSOURCING Outsourcing the processes that are not

part of your core business is a way of “letting someone else do it.” It frees up your time to focus on what you’re best at.

Like Richard Branson, CEO and founder of Virgin Group, says, “If you really want to grow as an entrepreneur, you’ve got to learn to delegate.” Outsourcing is a means of delegating to allow yourself and your team to focus on what you do best.

Outsourcing also expands your possibilities. For example, instead of hiring a full-time CFO — they don’t come cheap — you can outsource those duties, even if it is just a temporary solution. In addition to saving money for a full-time compensation package that you could offer a candidate when your finances are more stable, outsourcing lets you choose from a wider pool of talent. When you choose to outsource, your network and reach automatically expand.

POSSIBLE OUTSOURCING RISKS So what are the possible risks or considerations that may lead you to decide outsourcing isn’t for your business? Outsourcing tasks and responsibilities that used to lie with an internal employee requires relinquishing a measure of control. The partner you choose should mirror your own core values. Will they be able to meet your

See Outsourcing Page 39

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ANALYSIS - LAURDAN ASSOCIATES Continued From Page 20

UNEMPLOYMENT INSURANCE MANAGEMENT taxes and liability is achieved by stabilizing employment, by taking advantage of tax saving provisions in the law, by using effective hiring, employment, and firing procedures, by training supervisors on proper UI management, and by implementing effective UI claims-hearing administration and management reporting systems. Importantly, informed HR management activities also provide important EPL cost control benefits.

As noted, UI benefits are provided to “individuals who have lost their job through no fault of their own.”

Thus, workers who have been laid off or “downsized” are typically provided UI benefits. For worker who have been discharged, or who have voluntarily quit their jobs, benefits are subject to possible disqualification. Importantly, the actual reasons for their separation are at issue.

From an EPL perspective, the payment of UI benefits alone is not the only issue. In fact, frequently UI become the vehicle for more serious litigation. Since

www.chart-exchange.com

UI determinations and decisions are fairly quickly determined, plaintiffs’ attorneys will use the UI decision making process to learn of employers’ positions on the reasons for employees’ separations. If the state agency grants UI benefits, and if employers do not timely appeal, the plaintiffs’ attorneys will use UI decisions to support their cases. Thus, if a state UI agency rules that the former employee was fired without good cause or that he or she voluntarily quit for good cause, organizations will not only be charged for any UI benefits collected, but additionally could have such decisions used against them in discrimination or sexual harassment cases.

It is critical therefore that employers implement sound UI and EPL management procedures. First, when employees quit, conduct an exit interview and have them complete a separation notice where they indicate the reason(s) for their departure. This documentation should be kept in their personnel files and used in completing a state’s UI request for separation information. The same procedure should be used for employees discharged. You should document your decisions, include comments made during your exit interview, and file such documentation in the employees’ files.

Note: you may have to provide copies of this documentation to the state UI agency – and former TABLE OF CONTENTS

employees attorneys -- so be careful, but precise, in how you complete this documentation.

Second, review states’ initial UI determinations carefully. If they deny benefits, place notices in a pending file in case claimants appeal these determinations. If state agencies grant benefits, timey review the determinations and determine whether you need to file an appeal. If yes, ensure you file a timely appeal.

Note: In most states, your appeal has to be filed within ten days.

Importantly, note the potential collateral estoppel effect. As noted on Wikipedia; “…once a court has decided an issue of fact or law necessary to its judgment, that decision... preclude[s] prelitigation of the issue in a suit on a different cause of action involving a party to the first case.” This can happen in UI cases once a local office determination decision becomes final.

Third, if an appeal has been filed, prepare to attend a UI hearing. This is a quasi-judicial proceeding, and you will be required to provide evidence to support your position.

Thus, preparing for potential UI case litigation will not only help keep your UI tax rates under control, it will also help your organization protect its bottom line from potential EPL litigation.

DECEMBER 2019

23

Vantage Agora, Inc., D.B.A.

business efficiency amplified

â„¢

Elevating companies to greatness by creating operational efficiencies.

Enterprise Operating System Your Platform - Your Control

Back-Office Support

Your Back-Office Needs - Our Work

216.452.0324 www.eoxvantage.com 24

DECEMBER 2019

TABLE OF CONTENTS

www.chart-exchange.com

ANALYSIS -EOX VANTAGE

IMPROVING BUSINESS PROCESSES HAS NEVER BEEN SO EASY

T

By Anoop Sam

he technology we are immersed in every day wasn’t developed overnight. It took years to develop to term and is still updated even once it hits the market.

Advanced technology is not a one-and-done deal, it requires attention and maintenance throughout its lifecycle to ensure the best results for end users. The best way to achieve results that will pay off is through a Product Lifecycle Management process.

Product lifecycle management is a process commonly used to manage products throughout every stage of development to ensure the best end results. Also referred to as PLM, product lifecycle management has the power

to significantly strengthen your organization. Just think about how quickly innovations are popping up. Whether it’s AI, VR, AR or automation, continuous change is always necessary to remain a top competitor. With PLM in place, it will help you remain actionable and launch products quickly to keep up with the everchanging market.

Implementing a PLM doesn’t have to break the bank. In fact, PLMs offer several ways in which your organization can save money. By keeping up with market changes, you’re maintaining your competitive edge, which keeps clients happy and new customers flooding in. In addition, PLM offers an open environment for communication and collaboration, where teams work together to develop See Business Processes Page 26

A

noop Sam joined EOX Vantage in 2009. With an overall 16 years of industry experience, Anoop excels at managing customers and growing business relationships with corporate and middle-market clients across the globe. He is trained and certified in Associate in General Insurance (AINS), he has worked and reviewed over 75 million transactions, managed over 90 customers across 130 insurance carriers and multiple insurance software applications. Anoop was born and raised in Bangalore, India and received his bachelor of arts degree in English and Social Science from Bangalore University, Karnataka. After college, Anoop worked at Aviva before completing his AINS 21, 22, 23 and Ethics in general insurance, in the States. Anoop currently lives in Bangalore with his wife Kavita and daughter Aaria.

www.chart-exchange.com

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DECEMBER 2019

25

ANALYSIS - EOX VANTAGE Continued From Page 25

IMPROVING BUSINESS PROCESSES lifecycles. At EOX Vantage, we use our Enterprise Operating System during a PLM to stay in constant contact with our team members.

Group chats, emails, announcements and commenting features are all maintained on a single platform, making it simple to stay in the loop and have complete visibility over a project. Chances are, when you have

26

DECEMBER 2019

groups of people analyzing the same thing, there is a much higher chance that errors will be identified before anything goes to market; reducing chances that a customer finds an error before you do.

Project lifecycle management makes for a unified organization, working towards one continuous goal; development through all stages of a product up to the point of its retirement. First, your product is born and then it begins to grow. A product begins its growth phase when sales escalate and the product becomes accepted by consumers. The maturity phase kicks in when sales peak.

In this phase, it’s crucial that you keep communication between departments active and ensure everyone is on the same page. This is the time when products begin

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to fight for that top spot in the market. There may be a few wellknown products, all offering similar solutions. So, what’s going to make yours stand out?

The work that goes into it, allowing it to thrive is what will make your product stand out. Products go through a continuous lifecycle that requires a lot of work… and rework.

By facilitating a process like PLM, you’ll streamline your development and establish communication with all departments. This makes it seamless to add onto your product, giving the consumer what they want with a speedy turnaround time, so you can stay ahead of the competition.

Product Lifecycle Management should be a top priority when it comes to building a successful product. At EOX Vantage, our premier Enterprise Operating System follows a structured PLM to ensure we serve our customers’ needs and maintain a competitive edge.

Implementing the right PLM can amplify your business efficiencies and enhance the visibility you have into your organization’s operations; ultimately leading to success.

www.chart-exchange.com

ANALYSIS - KROLL Continued From Page 9

NY SHIELD ACT COMPLIANCE – THREE KEY STEPS TOWARD REASONABLE CYBER SECURITY state law makers are concerned about the corresponding financial losses potentially associated with these breaches. It’s estimated that cybercrime damages will cost the world $6 trillion annually by 2021, up from $3 trillion in 2015.

Until the federal government enacts a superseding law to help protect U.S. residents from data breaches, states have taken it upon themselves to help combat this epidemic. The NY SHIELD Act (effective as of March 21, 2020) is one of the more aggressive data breach notification laws and will apply to any corporation (not just New York-based) that collects and maintains New York residents’ “private information.” To remain compliant with the NY SHIELD Act, businesses must implement reasonable safeguards to protect the “private information” they collect and maintain on their networks from data breaches.

The NY SHIELD Act and similar legislature should be a wake-up call for businesses to assess their www.chart-exchange.com

cyber security strategies and ensure compliance when collecting consumers’ personal and private information. This law reinforces the necessity of cyber security professionals, who are responsible for protecting New York residents’ data, to institute requisite cyber security policies, administrative measures and technical safeguards.

First Reasonable Security Steps The Center for Internet Security’s (CIS) top 20 critical controls provides a solid framework to build a strong cyber security strategy. Implementing the top 20 critical controls will establish the foundational and organizational measures necessary to secure the confidentiality, integrity and availability of the data on a company’s network. These controls account for: Administrative necessities of maintaining an inventory of assets (hardware/software) on the network, mobile device management and use of administrative privileges; The technical measures of email and TABLE OF CONTENTS

web browser protection, defenses for malware and data recovery capabilities; and The proactive/ preventative steps of security awareness training, incident response planning and penetration testing to secure the network.

While these are only some of the criteria included in the top 20 CIS controls, by prioritizing the implementation of these security measures a company will not only make significant strides towards obtaining strong cyber security overall, but also comply with the “reasonable data security” standard defined in the NY SHIELD Act. Kroll’s Cyber Risk practice recommends several proactive steps to meet the “reasonable data security” standard defined in the NY SHIELD Act. STEP 1 – DATA MAPPING Entities striving to become compliant with the “reasonable security standard” defined in the NY SHIELD Act should engage in an exercise of data mapping. This legislation is focused on protecting the private information of New York residents that is collected and stored on entities’ networks. These entities must create a process to identify the type of private data collected and stored on their networks, how that data is being utilized and implement controls to restrict certain access to it. This critical

See NY Shield Act Page 31 DECEMBER 2019

27

NEWS - VALUEMOMENTUM

VALUEMOMENTUM RECOGNIZED FOR ITS STELLAR GLOBAL BUSINESS PERFORMANCE Dun & Bradstreet’s SME Business Excellence Awards, in association with RBL Bank, recognizes ValueMomentum for its stellar global business performance

H

yderabad, Telangana, India ValueMomentum Inc., a leading IT Services & Software Solutions provider to insurance, healthcare, and financial services firms, has been acclaimed as the Best Global Businessat the Dun & Bradstreet SME Business Excellence Awards 2019. ValueMomentum received this award for its sustained rapid growth in recent years.

Dun & Bradstreet has been hosting the Awards for a decade, to recognize exemplary performance and achievements of leading SMEs and mid-corporates in India. The selection criteria for these awards include financial results, innovation, global reach, headcount growth, and business initiatives. The 2019 edition of these awards, a joint initiative

28

DECEMBER 2019

by Dun & Bradstreet and RBL Bank, was organized at an event on 20th November at Hyatt Regency, New Delhi.

ValueMomentum’s revenues have grown over 30% consistently over the past few years, led by its industryfocused, specialized services and solutions in the areas of digital, data & core transformation. ValueMomentum has a strong presence in North America and Southeast Asia, serving insurance, healthcare and banking & lending organizations across all tiers.

Speaking on the occasion, Ravi S. Rao, Managing Director & President – APAC, ValueMomentum said, “We’re delighted to win this prestigious award. We are fortunate to have been a part of our customers’ transformation journey and helping them gain momentum in their business. We have continued to expand our service portfolio to support our customers’ accelerated adoption of digital, data & cloud technologies, and also made investments into building a regional development center in Pennsylvania to further develop talent to serve these needs.”

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Uma Gogineni, Chief People Officer, ValueMomentum, who received the award on behalf of ValueMomentum, stated, “We attribute our continued growth to our employees – our greatest asset. We have made consistent efforts towards fostering a mindset of continuous learning and encouraging constant innovation. This, coupled with our focus on upskilling, has enabled ValueMomentum to continue driving value to our clients’ initiatives and become a partner of choice for their IT initiatives in this era of disruptive change.” She further said, “We recently added two more facilities in Hyderabad to accommodate our rapid employee growth, and we will soon be operational with another global delivery center at a western India location, to expand our base and access a wider talent pool.”

With over 3,000 global employees, ValueMomentum is uniquely positioned to deliver enhanced customer value with a winning combination of rich industry

See ValueMomentum Page 31 www.chart-exchange.com

“WHEN YOU’RE FINISHED CHANGING,

YOU’RE FINISHED” - Benjamin Franklin

Benjamin Franklin: Scientist, philosopher, Founding Father … and business strategist?

Mr. Franklin’s advice about adapting to thrive is especially appropriate in the highly fluid insurance industry.

The CHART Exchange began with a good idea back in 2015: become the catalyst for growth in the U.S./London marketplace by facilitating interaction between domestic wholesalers/agency specialists and Syndicate underwriters. Large-scale networking events were held annually in elegant venues. While this approach produced results, feedback from the meeting participants indicated we could do much more to achieve our goal.

As a direct result of this feedback, CHART 2.0 adopted a more proactive operating model intended to provide advocacy-level support to U.S.-based agencies seeking to place business within the London market. The expertise of our various Vendor Partners — when combined with new brokerage placement capabilities — gives CHART 2.0 clients access to a broad array of services they need to be successful.

Interested in learning more? Visit our website at www.chart-exchange.com. We are also available via e-mail (info@chart-exchange.com) or by phone at the number below.

www.chart-exchange.com

The CHART Exchange, 3001 Philadelphia Pike Claymont, DE 19703

Phone: (855) 716-3660

•

Fax: (302) 334-0325

ANALYSIS - KROLL Continued From Page 27

NY SHIELD ACT COMPLIANCE step will allow an entity to develop cyber security strategies to protect the “private information” entrusted by NY residents.

STEP 2 – CYBER SECURITY MATURITY RISK ASSESSMENT A cyber security risk assessment includes a detailed review of an entity’s information security program from policies and procedures to technical controls. A risk assessment will factor in any unique circumstances, as well as risk tolerances and the threat landscape. A risk assessment will identify gaps and vulnerabilities based on industry accepted frameworks and provide mitigation measures which can be implemented to defend against modern cyber security threats.

STEP 3 – PENETRATION TEST A vulnerability scan and penetration test will provide a controlled thirdparty attempt to gain access to a client’s network from the internet simulating a “real-world” attack.

The purpose of the penetration test is to identify the path a malicious attacker would take to compromise the organization. These tests further www.chart-exchange.com

expose vulnerabilities that would allow attackers to gain access to the network from external sources and identify their ability to move laterally and acquire or compromise sensitive data. A penetration test will identify gaps – whether administrative, procedural or technical – that would allow an attacker to gain access to a client’s network, but provide remediation measures to reduce those vulnerabilities.

At the conclusion of these three initial steps, you should have a map to identify the threats targeting the data on your network, the administrative, procedural and technical vulnerabilities currently exposing that data and the recommended measures to implement to achieve reasonable safeguards. However, it is highly recommended that companies seek the help of experienced legal and technical professionals to assess compliance levels and validate cyber security maturity. As the regulatory environment evolves, so should your strategy.

End-to-end Cyber Risk Guidance Kroll’s Cyber Risk practice has the resources to support your business at every stage of this process – from data mapping exercises, to third-party risk management programs, to breach notification and identity monitoring services. We have helped organizations assess their risks and recover from cyber incidents and data losses of all sizes and complexity for nearly two decades. Our clients rely on the vast experiences of Kroll’s cyber experts to guide them through the process of TABLE OF CONTENTS

assessing their current security status and making recommendations to build a strong cyber security strategy.

Our global team of cyber experts stands ready to answer your questions and provide guidance to implement measures necessary to comply with the NY SHIELD Act and similar data breach legislation. You can reach our experts 24x7 via CyberResponse@kroll.com.

Continued From Page 28

VALUEMOMENTUM RECOGNIZED experience, deep technology expertise, and a customer-first approach.

ABOUT VALUEMOMENTUM ValueMomentum provides IT services and software solutions to insurance, healthcare, and financial services firms. Customers choose ValueMomentum for its track record of delivering value and driving the momentum of customers’ business initiatives. ValueMomentum accomplishes this mission by applying a time-tested formula of combining strong technology expertise with deep industry experience. For more information, visit https://www. valuemomentum.com.

DECEMBER 2019

31

ANALYSIS - BLUEVOYANT Continued From Page 16

A FRIGHTENING INNOVATION IN RANSOMWARE

clean. This is undoubtedly an

been no definitively proven cases

inconvenience, but far superior to

of this tact so far, but rumors and

paying several hundred thousand

insinuations suggest there are

dollars in bitcoin to an undeserving

now ransomware attacks whereby

overseas criminal organization.

attackers threaten to release sensitive organizational data to the

Threat actors have long tried to

public in order to incentivize swift

foster urgency in their ransom

payment of the ransom.

demands. The innovation of countdown clocks within ransom

This strategy may have caused

notes was notable. If victims didn’t

the October intrusion into

pay within a certain time period –

Johannesburg, South Africa’s

stressfully shown counting down by

municipal system, and more

of implementing offline, routinely

the minute – the ransom amount

recently, news sources reported

updated system backups.

would double, then triple, and so

that the Maze cybercriminal

Subsequently, when hit with

on. Now, however, we are seeing

organization leaked 700 MB of

ransomware, they can ignore

an interesting and frightening new

data it stole from Allied Universal

demands for ransom and simply

development that may represent

in November this year. That group

restore their operations from

the cutting edge of ransomware

backups after wiping everything

extortion: the leak. There have

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See Ransomware Page 38

www.chart-exchange.com

NEWS - M&A SERVICES Continued From Page 15

MERGER & ACQUISITION SERVICES, INC. WINNER AT 18TH ANNUAL M&A ADVISOR AWARD “This year’s finalists exemplify the fortitude, perseverance, and ingenuity required not only to get the deal done but to excel in the field of mergers and acquisitions. It is truly an honor for The M&A Advisor and for me, personally, to recognize the contributions of the 2019 award finalists.”

Corporate/Strategic Deal of the Year. It has been a pleasure to work with the Group 1001 team over the years and we are proud to have advised them on this important transaction.”

“I am most humbled and honored to have been selected as Investment Banker of the Year by The M&A Advisor. For twenty years I have committed myself and the Firm to delivering best in class advice and services to our clients and this award certainly recognizes those principles,” said Jason C. Murgio, CEO of Merger & Acquisition Services.

“Equally as exciting is to have Group 1001’s acquisition of Lackawanna Insurance Group be awarded www.chart-exchange.com

intelligence on M&A activities. Over the past nineteen years they have established the premier global network of M&A, Turnaround and Finance professionals. Today, they have the privilege of presenting, recognizing the achievements of, and facilitating connections between the industry’s top performers throughout the world with a comprehensive range of services. To learn more visit www. maadvisor.com.

ABOUT MERGER & ACQUISITION SERVICES, INC. Merger & Acquisition Services, Inc. is a specialist advisory and financial services Firm to the insurance and reinsurance industry, with offices in New York, Connecticut, Georgia & Cayman Islands. Founded in 1999, the Firm and its affiliates provides investment banking and insurance consulting services globally, including; merger & acquisition advisory, capital raising, valuations, program placement/fronting, and reinsurance advisory.

Merger & Acquisition Capital Services, LLC., a registered broker-dealer and member FINRA / SIPC, is an affiliate of Merger & Acquisition Services, Inc.

ABOUT THE M&A ADVISOR The M&A Advisor was founded in 1998 to offer insights and TABLE OF CONTENTS

To learn more about Merger & Acquisition Services, visit http://www.maservices.com DECEMBER 2019

33

Bringing U.S. Entrepreneurship to the London Market The CHART/Wilson Elser strategic partnership combines the innovative underwriting philosophy of the world’s oldest insurance brand with the entrepreneurial mindset of U.S. agencies.

For close to 40 years, Wilson Elser has helped organizations to better navigate challenging markets and realize improved combined ratios. We provide London- and Europe-based insurers with ready access to more than 60 discrete legal services delivered by nearly 800 attorneys in 34 strategic locations throughout the United States.

Guided by a proprietary, systematic legal project management program, we help clients define strategies and achieve outcomes that align with agreed business requirements. We also implement dedicated Program Claim/Litigation Management services, creating value and driving efficiencies with respect to legal spend and indemnity.

Wilson Elser is especially proud of its strategic partnership with CHART Exchange and our shared commitment to strengthening relationships between cover holders and risk takers on either side of the Atlantic.

wilsonelser.com Š 2017 Wilson Elser. All rights reserved. 567-17

ANALYSIS - WILSON ELSER

CALIFORNIA CONSUMER PRIVACY ACT WILL IMPOSE NEW OBLIGATIONS ON BUSINESSES THAT COLLECT CONSUMER DATA FROM CALIFORNIA RESIDENTS

By Marisa Trasatti & Reagan Y. Greenberg

I

n California − the World’s seventh largest economy and a state that comprises roughly 40 million people − state lawmakers have passed a new law that aims to protect the privacy of consumers, and specifically details new notice requirements for those businesses that are collecting data from consumers on the web or even through conventional means at their brick-and-mortar locations.

purpose for collecting and selling the information, and provides consumers with a mechanism to exercise the option to opt out of the collection and delete any of their personal information already collected. This new law will, of course, affect as well the consumer product manufacturers that are collecting the personal information of their California consumers for warranty purposes.

With the landscape of this legislation continuously moving, it is vital that businesses remain informed and proactive in their compliance.

The CCPA requires businesses to provide a Notice at Collection, which must be given to the consumer at or before any personal information is collected, and a Notice of Right to Opt Out of Sale, which must be clearly posted on the businesses’ States are becoming webpage in conjunction with increasingly serious a “Do Not Sell My Personal Information” link. While regarding the protection of consumers’ privacy rights, while businesses may not discriminate against a consumer for their On January 1, 2020, the the responsibility of businesses to decision to opt out, businesses California Consumer Privacy protect these rights is becoming may offer financial incentives to Act (CCPA) goes into effect, more and more onerous in turn.” those consumers who do permit granting an increased right the collection of their personal of privacy to consumers for information. Additional notice is the collection and sale of personal required when businesses expand or information. Similar bills have been The California Attorney General alter the information being collected. proposed in Hawaii, Maryland, proposed regulations for the CCPA The proposed regulations also require Massachusetts, New Mexico, Rhode on October 10, 2019, which not only notice even where information is Island and Washington. The new provide guidance to businesses collected offline at brick-and-mortar law gives consumers the right to ask for compliance but also imposes stores. businesses what types and categories additional requirements not found in of information they are collecting, the CCPA. These regulations are set to requires businesses to disclose their be enforced beginning July 1, 2020.

See California Privacy Page 36 www.chart-exchange.com

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DECEMBER 2019

35

ANALYSIS - WILSON ELSER Continued From Page 35

CALIFORNIA CONSUMER PRIVACY ACT A significant additional requirement proposed by the regulations requires businesses to acknowledge a consumer’s browser plug-ins and privacy settings as a communication exercising the right to opt out, and potentially a reversal of a consumer’s previous request to opt out. There is little guidance on how businesses should go about monitoring

consumers’ browser settings, leaving much of the onus on businesses to develop and implement methods to avoid missing a consumer’s opt-out designation.

In addition to the notice requirements, the other main components of the CCPA and accompanying regulations are Right to Know and Right to Delete requests. Consumers have a right to request, and businesses have a duty to disclose, the categories and specific pieces of information being collected, the sources from which this information is collected, the purposes for collecting and selling this information, and the identity of third parties to whom this information is sold.

Businesses must offer consumers at least two methods of submitting these requests. All requests must be verified,

and the regulations offer a two-step process that satisfies compliance.

The regulations also mandate that all unverified Requests to Delete be treated as Requests to Opt Out. Finally, a record of all requests and responses must be retained by businesses for at least 24 months.

This brief summary makes clear that states are becoming increasingly serious regarding the protection of consumers’ privacy rights, while the responsibility of businesses to protect these rights is becoming more and more onerous in turn. With the deadline for written comments to the proposed regulations set for December 6, 2019, it is all but certain that amendments, additions and supplements will be released. We will continue to monitor this legislation and report as the regulations evolve.

M

arisa Trasatti focuses her practice primarily on civil litigation, with an emphasis on product liability litigation, including cases involving drugs and medical devices, and serves as outside General Counsel for Sciton, Inc., a prominent medical and dermatological laser company based in Palo Alto, California. Marisa has experience litigating medical malpractice, insurance defense and products liability cases and has defended, locally and nationally, several large corporations in connection with toxic tort litigation. Her experience in life sciences includes domestic and international regulatory issues; negotiation, design and drafting of clinical trial agreements; interpreting court pronouncements; and vetting marketing materials for domestic and international regulatory compliance. Marisa also handles a broad spectrum of issues involving corporate, employment, regulatory, contract and product liability issues, domestically and internationally. She has lectured on the topics of Federal Preemption, learned intermediary defense and social media.

R

eagan Y. Greenberg works with the firm’s commercial litigation practice representing individuals, companies and insurance carriers in a variety of matters, including premises liability, negligence, insurance defense, and products liability claims. Prior to joining Wilson Elser, Reagan served as judicial law clerk to the Honorable Michele D. Hotten of the Court of Appeals of Maryland.

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DECEMBER 2019

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www.chart-exchange.com

EVERYBODY KNOWS ONE Meet Mr. Inappropriate. He is the King of unfiltered commentary. There is no remark too crass or topic too sensitive for this guy. Worse still, he may be working for one of your clients.

The recent Hollywood scandals and resulting rise of the “#MeToo” Movement has made people more sensitive to the prevalence of harassment and other wrongful acts in the workplace. There was a time when otherwise harmless comments from someone like Mr. Inappropriate would have either been brushed off or ignored. Now they may be interpreted to have a more nefarious meaning. This perception can quickly turn into legal action. The cost of defending against such a lawsuit – even a groundless one – could be financially devastating.

Let Rockwood Programs help protect your clients. Our Employment Practices Liability Insurance (EPLI) product protects companies from allegations of discrimination, wrongful termination, harassment, and workplace bullying. Coverage can be further enhanced to protect your client against alleged violations of the Immigration Reform Control Act, Wage & Hour disputes, and Third Party Wrongful Acts.

Visit us at www.rockwoodinsurance.com to learn more

Rockwood Programs, Inc., 3001 Philadelphia Pike, Claymont, DE 19703 p: 800-558-8808 • f: 302-764-5477 • e: sales@rockwoodinsurance.com

www.chart-exchange.com

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DECEMBER 2019

37

ANALYSIS - BLUEVOYANT Continued From Page 32

The transition to the threat of

References:

publication is key because it undermines the tried and true

A FRIGHTENING INNOVATION IN RANSOMWARE

1. https://www.bankinfosecurity.

solution for prepared organizations

com/unwanted-escalation-

– data restoration from backups. In

ransomware-attackers-leak-

this scenario, even if you can wipe

stolen-data-a-13438

and rebuild your system, attackers

2.

https://www.

could potentially still publish

bleepingcomputer.com/

your customers’ payment card

news/security/allied-

information (PCI), your patients’

universal-breached-by-maze-

private health information (PHI),

ransomware-stolen-data-

told cybersecurity researchers

or whatever other sensitive data

leaked/

they stole 5 GB of Allied Universal’s

you may have in your care. These

data and they will provision the

variants also instruct the victim to

bleepingcomputer.com/news/

remainder to Wikileaks if the

contact the ransomer for the price

security/new-megacortex-

California-based security firm

of the decryption keys. In theory,

ransomware-changes-windows-

refuses to pay the 300 bitcoin

an attacker could appraise the

passwords-threatens-to-

ransom. Maze are not the only

value of the exfiltrated data after

publish-data/

cybercriminals experimenting with

successfully coercing the victim to

this tactic. MegaCortex is a known

the point of negotiation.

3.

https://www.

version of ransomware, however a new variant was recently released

At the time of this writing, there

that changes passwords on infected

is no proof that the exfiltration

machines and threatens to publish

of data has been successfully

the ransomed data if payment isn’t

implemented in a ransomware

made. According to cybersecurity

scheme, but it remains a troubling

researchers at Bleeping Computer,

possibility. Also, underreporting of

this is the threat excerpted from the

events is still a major problem in

ransom note:

the field of cybersecurity because

NEVER MISS AN ISSUE OF THE CHART EXCHANGE

of the reputational damage it can “We have also downloaded your

unleash, so therefore we may be

data to a secure location. In the

unaware of the already-successful

unfortunate event of us not coming

use of this tactic.

to an agreement we will have no choice but to make this data public.

In this evolving game of extortion,

Once the transaction is finalized

data exfiltration and the threat

all of copies of data we have

of its release may be the next

downloaded will be erased.”

offensive move by the ransomware criminal enterprise.

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TABLE OF CONTENTS

SUBSCRIBE NOW!

www.chart-exchange.com

NEWS -

Continued From Page 22

LET SOMEONE ELSE DO IT: OUTSOURCE requirements for responsiveness?

What is their reputation for meeting deadlines? Are you on the same page regarding quality control? These are all things to consider.

Another risk is the possibility of the outsourced provider’s business closing unexpectedly. Such an occurance could leave your important processes, and even customers, in the lurch.

A final consideration is related to intellectual property and privacy.

Could these be compromised as the result of an outsourced relationship?

You’ll want to be sure those parameters are clearly established and understood prior to signing on to their service.

THE OUTSOURCING DECISION Ultimately, the decision to outsource can be a turning point for a business. It can free up a company to grow. On the flip side, if something goes wrong, you could lose customers. So how do you make the decision?

Measure how much a task or process contributes to your business success. www.chart-exchange.com

Does it give you a competitive advantage? If it’s done poorly, will that make a significant difference or lead to losses? This isn’t just a consideration for the possibility of a job being done poorly by an outsource partner. Think about this — is the task/job/duty being done poorly internally because there simply isn’t time to focus on getting it done right? If the answer is yes, then outsourcing may be the appropriate solution.

Another consideration is regarding finances. Are you looking to save money, or are you looking for a solution to reduce operating costs? Is outsourcing the answer for that? You may need to crunch some numbers to make that determination.

WOULD YOU LIKE TO HAVE YOUR MESSAGE DELIVERED TO 100,000+ FOCUSED INSURANCE INDUSTRY EMAIL ADDRESSES EVERY MONTH?

For insurance agents, premium financing is often a good candidate for outsourcing. It’s a specialized activity that relatively few people are experienced in or have thorough knowledge of. It can be timeconsuming and challenging. As a result, the margins often do not justify the time and trouble.

That’s why more and more insurance vendors look to automate this part of the business, and shift their focus to their core competencies. Outsourcing makes sense in these situations. You can’t be an expert at everything.

Outsourcing allows experts to take care of it for you.

Take a look at our video, and contact us to find out more about outsourcing your premium financing.

TABLE OF CONTENTS

I’m Kate Boyle Managing Editor. I handle CHART Exchange Advertising. Call me at 302 765-6056 and let’s have a conversation.

DECEMBER 2019

39

NEWS - LLOYD’S OF LONDON

T

he product is designed to cater to the distinct needs of a rapidly growing new space sector, which, according to Lloyd’s, could be the driving force behind a tripling in size of the global space market by 2040.

The solution – called Llift Space – is only available in the Lloyd’s market and allows customers to cover their assets from the pre-launch phase, including transit and placement on the launch vehicle, through to the launch phase and in-orbit operation. It is designed for satellites that weigh less than 300kg.

The policy is modular so customers can choose the elements within each phase that are most relevant to their coverage needs.

The product is backed by a consortium of 18 syndicates, led by Brit and Hiscox MGA, with a $25m capacity per risk, and is targeted at the NewSpace sector.

NewSpace is characterised by lower cost, easier routes to space, opening up the sector to private enterprise, wealthy

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entrepreneurs and innovative start-ups.

This is increasing the need for space insurance.

According to a new Lloyd’s report, NewSpace: Bringing the new frontier closer to home, published today, the global space market could increase in value from $300bn today to $1tr by 2040, driven by NewSpace companies entering the sector.

Trevor Maynard, Lloyd’s Head of Innovation, said: “New aerospace companies and ventures are emerging all the time. They are looking to develop faster and cheaper access to space and spaceflight. As they do so, they want access to easily scalable insurance that fits their needs and

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can be arranged quickly to support technological development and business growth. Our new space consortium allows Lloyd’s to do this better than ever. The breadth and depth of space insurance knowledge among Lloyd’s underwriters and brokers means that Lloyd’s is the number one choice for both traditional and NewSpace insurance.”

Gary Brice, Head of Marine and Space for Lloyd’s managing agent Brit Global Specialty, which manages Llift Space with Hiscox, said: “Llift Space takes away the complexity of traditional space insurance and allows customers, in particular those in the NewSpace sector, to insure all the phases of their project with one policy.”

Pascal Lecointe, Head of Space for Hiscox, said: “Having two leading markets in the sector come together in a way that’s never been done before to create a genuinely innovative Lloyd’s product for this dynamic new industry, highlights the place Lloyd’s retains at the forefront of the global space insurance market.”

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Image: http://www.nasa.gov/exploration/systems/sls/multimedia/gallery/sls_flight.html

Lloyd’s has, today, launched a new multi-million-pound space insurance policy for the emerging private spaceflight industry.

LLOYD’S LAUNCHES NEW SPACE RISK PRODUCT AND NEW ANALYSIS OF THE SPACE SECTOR

THERE’S A BETTER WAY TO CONNECT WITH LONDON …

CHART CAN GET YOU THERE FASTER! Most of us know about Lloyd’s of London. The market’s 332 year track record of innovation, technical expertise, and product diversity has cemented its reputation within the industry. Unfortunately, the vast majority of U.S.-based agencies with new program or product ideas are unsure of how to access the world’s oldest insurance brand.

The CHART Exchange can help. We were established for the sole purpose of growing the U.S./London marketplace by serving as the conduit between domestic producers and Lloyd’s Risk Takers. Our vast network of Vendor Partners can provide the support needed to help develop your program proposal. Available services include Actuarial, Claims Administration, Marketing, Legal, and Systems. We can even assist in expediting the implementation of your new program through our unique “Incubator” facility.

Interested in learning more? Visit our website at www.chart-exchange.com. We are also available via e-mail (info@chart-exchange.com) or by phone at the number below.

855-716-3660 The CHART Exchange 3001 Philadelphia Pike Claymont, DE 19703 www.chart-exchange.com • Fax: (302) 334-0325

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FORESTRY WORLDWIDE FORESTRY (RE)INSURANCE FACILITY Pardus was established in 2013 by Keith Thompson, formally CEO of Advent capital Holdings Ltd and Darren Stockman Active Underwriter of Syndicate 780 and Director of Advent Underwriting Ltd. Pardus are an independent Managing General Underwriter, a Lloyd’s approved Coverholder, and an appointed representative of Capita Commercial Insurances Limited.

Cover

Maximum line of USD 8.5M any one risk, any one location. Capacity provided by Lloyd’s of London and “A-” rated company paper. Perils covered mainly Fire and Windstorm, but we can offer additional coverage for hail, ice, snow, frost.

We cannot cover Pest and Disease, although we can offer cover under a small sublimit for Pest and Disease treatment costs.

Sublimits available for fire-fighting costs, aerial photography, debris removal, claims preparation costs etc.

Frost

Hail

Snow & Ice Storm

Flood

PERILS COVERED Rainfall Deficiency

Fire

Malicious Damage

Windstorm

Business Interruption is offered when fruiting trees are destroyed by covered physical damage perils, leading to a loss of yield while the new trees develop •

We have specialist Pardus facilities in place to cover Public Liability (in Europe) and associated forestry Plant and Machinery risks

OUR TAILORED PRODUCTS

Full Value and Value at Risk

Full Value works in the traditional way with insurer retaining any salvageable value from the insured property.

Value at Risk leaves an agreed salvage (based on salvage scales developed by Pardus using age and species data) in the ownership of the client.

Pardus then only insure the non-salvage element meaning the final rate will be applied to a fraction of the TSI generating a lower overall cost to the client.

Target business: •

We are keen to see any enquiry for standing timber commercial planation forestry

• •

Information requirements for quote: •

Perils to be insured against

•

Schedule of forest locations by values, age, species

Forestry risks with accreditation from the Forestry Stewardship

Locational information needs to be provided in either

Council (or similar)

shape file format (.kmz) or the latitude/longitude

Forest Owners comprise:

coordinates of the centre point of each location

-

Individual investors

•

5-10-year ground-up loss experience by peril

-

Commercial Plantation Companies

•

Desired policy structure:

-

Individual Forest Owners

-

Timberland and Investment Management Organisations

-

(TIMO’s)

•

Additional features: -

-

Forest Management Organisations (FMO’s)

-

Real Estate Investment Trusts (REIT’s)

-

Banks loans made to forest owners or fruit tree owners

-

Forest Owner Associations

Deductibles, limit etc Firefighting costs, claims preparation, aerial photography, plantation infrastructure

To download our full forestry questionnaire, please visit our website https://pardusunderwriting.com/products/forestry/

Exclusions

Property

Buildings

Terrorism

Pest and Disease

Drought

Crop

Fruits, Nuts etc

Phil Cottle - Senior Agricultural Underwriter Direct +44 (0)203 735 1608 Mobile +44 (0)7769 895048 phil.cottle@pardusunderwriting.com Dan Longden Cert CII - Underwriting Assistant

Direct +44 (0)203 735 1610 Mobile +44 (0)7756 961500 daniel.longden@pardusunderwriting.com

Pardus Underwriting Ltd. 1st Floor, 3 Lloyd’s Avenue, London, EC3N 3DS www.pardusunderwriting.com

“We have access to a worldwide forestry binding authority covering the physical damage to commercial forestry. There is a maximum line of USD 8,500,000 any one risk, any one location and the covered perils can be found on this flyer. This is written 100% Lloyd’s/company market and Prospect are the Insurance broker”

SPECIAL REPORT - MCGOWAN PROGRAMS the gunman. By all accounts, the new protocols saved many lives.

Continued From Page 11

HOW ACTIVE SHOOTER RESPONSE AND RISK TRANSFER HAS EVOLVED IN RECENT DECADES MODERN RESPONSE PROTOCOLS The Columbine tragedy spawned a new way of thinking about active shooter response. New protocols emerged, and officers were trained to respond and make entry immediately. The early changes called for officers to stand by until a group of three or four could enter the building, but officers are now taught to enter immediately to stop the threat.

wisconsin/2018/09/28/middletonshooting-how-active-shootingresponse-has-evolved/1458720002/>.

Within four minutes of the 911 call, officers were in the building. The shooter injured four of his coworkers before focusing his attention on the police. The officers shot and killed

Medical response to active shooter situations Emergency medical response to active shooters has also evolved. Similar to law enforcement, medical intervention now focuses on making entry as soon as possible. In the past, emergency medical services (EMS) personnel were stationed outside the area and waited for an all-clear signal from police officers.

However, modern-day active shooter protocols recognize the importance of getting medical staff to the shooting victims as soon as possible.

EMS workers wear bulletproof vests and helmets and enter active shooter situations directly behind officers.

Again, Middleton is illustrative.

Paramedics entered the building and tried to save the shooter’s life after being shot by the police.

Further, current protocols call for every police officer to train in SWAT procedures. With the realization that every minute counts in an active shooter scenario, officers now enter the building immediately. In other words, the first responding officer is the SWAT team.

A recent example of the new active shooter protocols in action can be found in last yearâ&#x20AC;&#x2122;s Middleton, WI active shooter situation<https:// www.jsonline.com/story/news/local/

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Members of the Crestview Police Department SWAT advance toward a simulated victim at the Naval School Explosive Ordnance Disposal building during an active shooter exercise on Eglin Air Force Base, Fla. (U.S. Air Force photo/Samuel King Jr.)

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The stakes are incredibly high in the minutes following an active shooter situation. The Pulse Nightclub shooting in Orlando demonstrates the need for emergency medical units to access the scene immediately.

Last year, a study<https://www. jsonline.com/story/news/local/ wisconsin/2018/09/28/middletonshooting-how-active-shootingresponse-has-evolved/1458720002/> in the professional journal Prehospital Emergency Care, noted 16 of the 49 Pulse Nightclub casualties might have been saved if they received emergency medical care within 10 minutes and arrived at a trauma center with one hour.

PUBLIC EDUCATION As active shooter response plans evolve, some communities are www.chart-exchange.com

expanding their focus to include community training. Recognizing the need to inform citizens about the best way to respond in an active shooting situation, municipalities have launched awareness campaigns.

While teaching citizens to “Run, Hide, Fight,” isn’t part of a law enforcement mandate, officers recognize the need to educate the citizenry about lifesaving responses in an active shooter situation.

has studied the fallout of active shooter situations to find the most effective insurance response to such an emergency.

Active shooter responses continue to evolve Despite the culture shift and ongoing training surrounding active shooter response, the risk remains ever present. Businesses must have extensive and detailed response plans in place. Such policies must address what happens before, during and after an active shooter emergency.

McGowan Program Administrators

Important Details in Active Shooter Coverage Organizations confront a host of legal, regulatory, and tort liability obligations. For instance: the Occupational Safety and Health Administration (OSHA), the federal agency regulating workplace safety, requires all employers to provide a safe workplace and to account for

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McGowan’s Active Shooter<http:// mcgowanprograms.com/products/ active-shooter-insurance/> policies provide comprehensive coverage including emergency response, primary general liability coverage, business interruption, and crisis management services.

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ANALYSIS - COST FINANCIAL

THREE INSURANCE CONSULTING RISKS AND HOW TO MANAGE THEM

R

isk management has always been a key component of insurance consulting, as risk management is the heart of insurance itself. But today’s businesses face some risks that are not the same as even 10 years ago. That doesn’t mean, of course, that the traditional risks have gone away.

more these days, breaches are caused by disgruntled employees.

on company business is involved in a collision.

This means your vulnerability is not only from legal sanctions and fines, but most important, loss of confidence of clients.

SCOPE CREEP

The challenge for insurance consultants is to stay ahead of the new risks as they emerge, while continuing to manage existing risks.

This may not seem like a particularly 21st-century risk, but company vehicles pose a major insurance consulting risk as the number of cars on the roads continues to grow, traffic continues to get worse, costs for repairs rise and liability levels continue to increase. This seemingly prosaic risk is growing.

DATA BREACHES As we’ve been hearing in the news, data breaches are happening more frequently, and to larger numbers of people all the time. And while data managers add more and better layers of protection to their databases, hackers are using ever more sophisticated tools to get past them.

It’s not only giants like banks and social media companies that are being targeted, either. Specialized businesses often have detailed, critical information about their clients. The hackers are not only foreign players and blackmailers, either. More and

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AUTOMOTIVE RISK

In insurance consulting, inform your clients about the true extent of risks posed in maintaining a fleet of company vehicles. Don’t forget that paying employees’ expenses for the use of their own vehicles does not necessarily protect the employer from liability when a vehicle in use TABLE OF CONTENTS

This is a term that grew out of software development and project management, but it’s a reality in insurance consulting, as well.

“Scope creep” refers to the goals of a project increasing by tiny increments during its progress. Think of a client asking for “one more little thing” to be added to a project. All too often, these “little things” mean hours of work for the insurance consulting team, leading to higher costs and delays in completion dates.

The solution to scope creep is to rigorously define the scope of any project at the outset, and to make clear to yhe client and the project team that going beyond the parameters will trigger more costs and time.

MANAGING RISK Helping you to manage risk while developing new revenue streams is what we do at COST Financial. Give us a call to find out how. www.chart-exchange.com

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2018 IN REVIEW $8.1 billion

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

total in-force premium

$690 million

9.3%

total in-force premium growth

growth in total in-force premium

465

independent strategic members signed

36

1 983

13%

4,487

signed of independent agents in U.S.

national strategic partner companies

2 0 19

new agencies created

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strategic master agencies

The Total Solution for the Independent Agent The Proven Distribution System for Strategic Partner Companies

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ANALYSIS - SIAA

INTEGRATE TECHNOLOGY

WITH AGENCY OPERATIONS

By Matt Masiello - Reprinted by permission of Standard Publishing Corp. © 2019.

Independent agents are embracing innovation and implementing new tools like never before. Insurtech is permeating the industry, often creating efficiencies for the better.

Amounts invested in Insurtech have soared since 2010. The capital invested in Insurtech startups and scale-ups reached $3.18 billion worldwide in 2018, almost double the $1.65 billion invested in 2017, according to Fintech Global.

This is the time for independent agents to take their best attributes and integrate them with existing and

emerging technologies, so they can meet consumers where they are and provide what they want, when they want it.

Simply put, if independent agents don’t integrate, they will be left behind.

EVOLUTION, NOT REVOLUTION In 2018, Conning issued a report on insurance distribution, and shared that it is an evolution, not a revolution.

The report illustrates that our world is changing and independent agents must be proactively evolving with it.

“Forward-looking incumbent players, whether agents, brokers or insurers, are following the unfolding trends closely and adapting to remain relevant, to keep up with growing customer expectations, and to establish positions to remain competitive into the future,” said Conning.

Baby boomers, Generation X and millennials all shop online for insurance. Surprisingly, one out of three consumers purchased from a company or brand other than they intended because the information was provided the moment they needed it.

To be competitive, agents need to ensure their digital presence is up to date with the best digital tools to engage clients, ensuring every channel has a call to action and making their agency more efficient for a seamless client experience.

Agents must consider their digital presence in order to maintain their competitive advantage in years to come: websites, Google reviews, Yelp, social media and more. As EY magazine pointed out, “The more seamless and customized the

See Digital Agency Page 50

A

bout the author: Matt Masiello is executive vice president and COO of SIAA. Matt is responsible for operational management of the largest alliance of independent insurance agencies in the United States and its related companies, providing leadership to over 50 direct employees, 49 Master Agencies and more than 6,500 independent insurance agents across the United States. Matt is also president and CEO of SAN Group and Strategic Independent Insurance Agency Solutions.

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ANALYSIS - SIAA Continued From Page 49

THE DIGITAL AGENCY technology, the easier it is for shoppers to prefer one brand over another.”

Digital tools can bridge the gap and keep the transaction moving forward when independent agents can’t be there for their clients. When new clients enroll in digital tools, it helps integrate them further with the agency.

FINDING AGENCY EFFICIENCIES THROUGH AUTOMATION At the recent IA Evolve virtual conference, keynote speaker Tyler Asher, president, independent agent distribution, Liberty Mutual business lines and Safeco Insurance, explained that the biggest steps to evolving include prior prioritizing customer centrism, innovation and deeply digital efficiencies.

He emphasized that immediate response in real-time with clients and prospects has positive impacts for every independent agent.

According to Forbes Magazine, 71% of consumers expect companies to respond and interact with them in realtime. Forbes also reported that 80% of customers will recommend a company to others after a great customer experience.

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BEGIN WITH A PLAN While the digital trends are clear, many agents may not know how to get there or where to begin.

A SWOT analysis will help identify Strengths, Weaknesses, Opportunities and Threats, and determine top priorities for innovation and technology.

I recommend agencies include their staff in identifying challenges — and find the best long- and short-term solutions for their agencies.

THE DIGITAL INSURANCE AGENCY Plan technology initiatives in threemonth or six-month intervals and tackle whichever agency issues are most pressing first. In doing so, consider these areas of a digital office.

Automated Assistants: This service can gather basic client or prospect information, which frees up agents to focus on sales. Automated assistants collect the information faster and save it for instant access.

Most customer service centers use these tools to make a small agency appear more efficient. Service centers can help clients who have smaller premiums but demand more attention or help clients who want more of a self-service relationship.

Agents and account managers can then focus on pipeline-building and attending to larger, more profitable clients such as commercial accounts.

Agency Management System (AMS): A cloud-based AMS is the foundational tool for building a sales pipeline and tracking all client data and communication. Picture the AMS as the central nervous system collecting all relevant data for the agency pipeline.

Independent agents can access the AMS remotely, and the AMS can have a client portal as well.

Client Texting: With more than half of millennials texting with agents, it’s vital to add texting for real-time efficiency. Texting with your personal or business mobile phone isn’t recommended. Invest in an insurance texting platform that will give the agency an errors and omissionscompliant form of communication between staff and their clients.

This creates record retention and data collection with each text to fully protect the business from liability.

Round-the-Clock Customer Service: Forty-five percent of calls come in after hours or on weekends. The ability of clients to reach their insurance agent anytime will influence their decision to do business with them. To prevent missed calls, the agency can outsource with a customer service center or implement digital tools to be more responsive.

Mobile-friendly Website: Information is prioritized on Google, so when businesses with mobilefriendly technology are searched, these websites appear first. If the agency website is not mobileready, it is pushed down the list. Make sure mobile-readiness is adaptive to all mobile phones as this is where agencies tend to be found first.

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best clients personally, online or with a video.

They should ask clients for referrals when the iron is hot — once a client thanks the agent for handling an issue or helping them at a critical time.

Also, agents can claim their business on Google Business to help the agency be found even faster.

to an agent at any time. A chatbot keeps clients engaged and connected 24/7, even when the agency is closed.

Websites need to be search-engine optimized (SEO) as well. Clients and prospects trust search engines and embedding website keywords will push the agency up the search engine ranks.

Live Chat: A live chat feature on the agency’s website enables prospects to talk live with a staff member, get a quote, ask questions and receive real-time responses.

Inbound Marketing: The agency website can offer prospects an article or a quote and ask the prospect’s name and email address with a simple form. Agents need to collect their data immediately and understand how and when a client or prospect would like to be contacted.

Chatbot: A website chatbot can answer questions anytime and tell the client when an independent agent will get back to them. Chatbot conversations can also be transitioned www.chart-exchange.com

Reviews: Independent agents should ask every client for a business review.

Share and enable reviews on the agency website and social media pages. Posting Google and Yelp reviews on all channels will add transparency to the agency.

Agents should resolve any bad reviews immediately, offering to contact the client directly, ultimately bringing their concern offline.

Referrals: Independent agents can ask for referrals from the agency’s TABLE OF CONTENTS

Mobile App: Agencies may want to invest in a mobile app to be able to directly contact all their clients with updates, push notifications and provide access to accounts for clients on the go.

According to a Liberty Mutual/Safeco Insurance report, 15% of insurance agents now have mobile apps, up from 8% in 2014.

In addition, agents should stay on top of technology regularly and invest in ongoing training for all staff.

While the desktop computer may be the primary tool for running the agency, agents should regularly test transactions and processes through their mobile phones as well.

Clients and prospects want their business with agents to be simple.

Make sure all the technology flows smoothly inside and outside of the agency through each channel, and clients will be happier all around.

In the end, technology will increase efficiencies and enable agents to communicate with clients and prospects in the manner they prefer.

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SPECIAL REPORT - MCGOWAN PROGRAMS Continued From Page 45

lost wages, funeral/burial, and death benefits.

HOW ACTIVE SHOOTER RESPONSE AND RISK TRANSFER HAS EVOLVED IN RECENT DECADES common risks, including shootings and workplace violence.

Organizations also need coverage against claims of negligence, including negligent infliction of emotional distress and negligent hiring and supervision.

Insurance has long played a role in confronting all types of risks. The latest generation of active shooter/ workplace violence policies reflect the evolution of organizations and insurers response to new threats.

General insurance policies often contain limitations that expose organizations to the costs of an active shooter incident.

For instance, a general liability policy typically does not respond to potential threats or with post-event, immediate “day one” coverages for crisis management, public relations, and critical victim benefits.

In addition, standard policies may decline to cover business income loss

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or property damage, renovations, or removal and rebuilds due to emotional duress caused by these types of attacks.

Active shooter policies, by contrast, have recently evolved to cover a terror attack with almost any type of weapon, include coverage of incidents of threats, and provide coverage while individuals travel or study abroad. Some insurers may require risk assessments and active shooter action plan seminars, while others offer discount incentives on premiums for organizations that participate in these additional trainings.

These are several issues to look for in an active shooter insurance policy: One of the first questions asked after these tragic events is, “Who will take care of the victims?” Your insurance program needs to be able to answer that question by paying for immediate victim expenses, including counseling, medical, rehabilitation,

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To prepare for lawsuits following a violent event, your program needs to have third-party liability as primary coverage, including legal defense and settlements otherwise known as indemnity. Some policies are excess and only cover limited extra expenses with no indemnity.

Ensure that your policies provide as much protection as possible.

As discussed earlier, these events can cause business income interruption and extra expenses, including property renovations.

These should be included as a part of your insurance program to help the organization emerge from this crisis event and do its best to resume normal operations and services as quickly as possible.

The time an organization needs the most assistance and support from their insurance company is after an incident occurs. Ensure that your active shooter coverage provides access to a crisis management team who can manage the news media, public relations efforts, and increased security and help coordinate services with survivors and families of those affected.

Active shooter preparation must be part of every business’s continuity plan. Team up with the experts at McGowan for the most comprehensive active shooter insurance available. www.chart-exchange.com

LLOYDâ&#x20AC;&#x2122;S OF LONDON

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