IIABL STAFF

JEFF ALBRIGHT

Chief Executive Officer jalbright@iiabl.com (225) 236-1366

BENJAMIN ALBRIGHT

Vice-President of Strategic Initiatives balbright@iiabl.com (225) 236-1357

KATHLEEN O'REGAN

Director of Communications & Events koregan@iiabl.com (225) 236-1360

KAREN KUYLEN

Director of Accounting & Finance kkuylen@iiabl.com (225) 236-1353

RHONDA MARTINEZ

Director of Insurance Programs rmartinez@iiabl.com (225) 236-1352

JAMIE NEWCHURCH

Director of Insurance Programs jnewchurch@iiabl.com (225) 236-1350

LISA YOUNG-CROOKS

Director of Member Relations lyoung@iiabl.com (225) 236-1351

CONTENTS

06

2022 LOUISIANA LEGISLATIVE SESSION

GET 10HURRICANE CLAIMS PAID 12

FASTER ARE YOU THE FUTURE?

18153 E. Petroleum Drive Baton Rouge, LA 70809 Ph: (225) 819-8007

www.iiabl.com TABLE OF CONTENTS & FEATURED STORIES 02 IIABL STAFF

At your service!

17 BECOME AN IMS SUB-PRODUCER

Independent Market Solutions 20 A DARKER WEB

By: Rob Berg, Executive Director, ACT 26 10 PREDICTIONS FOR 2022

From Industry Experts By: Kim Hendrick, CPCU, CIC, Enterprise Sales at ePayPolicy 31 ALL WORKERS WILL MAKE THIS

BIG CHANGE IN 2022

According to a Standford Economist who studies Remote Work 35 ANOTHER 'ABOVE AVERAGE'

HURRICANE SEASON

By Steve Hallo 38 HOMEOWNERS' INSURANCE &

FIREARMS

By Patrick Wraight, Director of Insurance, Insurance Journal's Academy of Insurance 43 HOW TO MAKE YOUR AGENCY

FUTURE READY IN 2022

Dealing with capacity after a year of hurricanes

46 180 DAY 'LIMITATION' IN THE

COMMERCIAL PROPERTY POLICY

By Chris Boggs 48 CONTRACTUAL RISK TRANSFER CAN

TAKE OVER & RUIN YOUR DAY

By Chris Boggs 51 CATALYIT CORNER

Website ADA Compliance 52 IIABL EDUCATION UPDATE 51 ADVERTISER INDEX 55 INDUSTRY PARTNERS 56 IIABL BOARD OF DIRECTORS

By Jeff Albright, IIABL CEO

The Republic, especially the insurance industry, is not safe! The 2022 Regular Session of the Louisiana Legislature starts on Monday, March 14th!

After two historic years of hurricanes, the Louisiana property insurance market is in tatters, policyholders and legislators are frustrated, and the result is a very dangerous legislative session. Policyholders and legislators want to pass legislation to require insurance companies to pay claims more efficiently after a hurricane. Insurance companies are not sure they want to continue writing property insurance in Louisiana. Improvements need to be made in catastrophe claims response, but if the Legislature requires more from insurers than the carriers think they can reasonably provide…the already awful property insurance market could get much, MUCH worse!

This is the most DANGEROUS legislative session in my 34 years at IIABL. There are a large number of bills that could do significant harm to the Louisiana insurance industry. We ALL need to work together to educate legislators as to the extreme difficulty in the property market, the need for new insurance companies and new capacity in the market, and the danger of overzealous legislative reforms that could reduce insurance markets in our state. IIABL has been working diligently for months preparing for this legislative session. We have met with legislators to explain the need for positive reforms, but the dangers of brutalizing insurers.

IIABL has prepared several bills for introduction into this legislative session to help improve catastrophe claims response without blowing up the property insurance market.

HB 521 is a bill by House Insurance Committee Chairman, and longtime IIABL member agent, Mike Huval. The bill requires insurers to maintain detailed catastrophe response plans that address how they will handle catastrophe claims. The plan must address how many adjusters they will need, how they will provide the necessary adjusters, how they will handle the logistics of maintaining adjusters in the field, how they will provide sufficient communications resources for policyholders and agents, etc. The Commissioner of Insurance must approve the plans and has enforcement authority to ensure that insurers are prepared to pay claims after future storms. IIABL is working very closely with Insurance Commissioner Donelon, and HIC Chairman Huval to pass this important legislation.

SB 163 by Senate Insurance Committee Chairman, Kirk Talbot, will require Commissioner Donelon to promulgate a standard policyholder catastrophe claim disclosure that insurers must provide to claimants at the time of the loss. Unfortunately, policyholders do not read their policy, the statutory policy disclosure, or explanations that their agent may provide about their insurance coverage. Until they have a claim, they don’t care! Providing information to the policyholder at the time of the claim will manage their expectations and prepare them to deal with their claim. The disclosure will explain how the claims process works, how they should minimize loss and document their claim, their rights under the law, how windstorm deductibles work, the difference between replacement cost and ACV, how to make supplemental claims, and how to file a complaint with LDI if the claim is not handled properly. IIABL and Commissioner Donelon are working closely with Chairman Talbot on SB 163.

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C o n t i n u e d f r o m p a g e 6 Louisiana has dealt with hurricanes and difficult property insurance markets for many years. One problem that has arisen in the last two years, that we have never had to deal with in the past, is insurance companies nonrenewing policies on properties that were damaged in the storm before the policyholder has been able to repair damages. In some cases, the non-renewals have come before the claim was even paid! Damaged properties are uninsurable in the private insurance market, and although Louisiana Citizens can insure some of these damaged properties, Citizens cannot insure all the damaged properties from the past two years.

IIABL asked SIC Chairman Kirk Talbot to introduce SB 162 which would prohibit insurance companies from nonrenewing or cancelling insurance policies on properties damaged in a hurricane until 90-days after repairs are completed. There are some safe harbors in the bill

for insurers which would allow them to cancel or non-renew if the premium is not paid or the policyholder unreasonably delays repairs.

Some insurers are pushing back against this bill because they want complete freedom to “ manage their books of business” after a storm. While we appreciate their desire to manage their business, that should be a long term effort not an in-and-out process, and the whole purpose of the property policy is to allow policyholders to rebuild. They can’t do that if they can’t maintain coverage on the damaged property. We believe that limiting insurers’ ability to cancel or non-renew policies (only those properties that are damaged and only for the period that it takes the policyholder to rebuild) is a reasonable restriction that allows them the flexibility to manage most of their exposure and charge adequate rate while protecting the policyholder from becoming uninsurable. IIABL is working with various insurers to explore possible amendments to this

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C o n t i n u e d f r o m p a g e 7 bill to address their concerns while maintaining coverage for policyholders.

These are three important bills that IIABL developed to address the concerns of our agents and their policyholders. There are lots of other important bills that IIABL will inform you about in the coming days. Stay tuned!

WHAT CAN AGENTS DO TO GET HURRICANE CLAIMS PAID FASTER?

B e n A l b r i g h t I I A B L V i c e P r e s i d e n t o f S t r a t e g i c I n i t i a t i v e s

If you are in Louisiana, and you have not been living under the proverbial rock, you know that people are not happy with how slowly hurricane claims have been paid over the past two years. Policyholders are frustrated, legislators are frustrated, agents are frustrated, and do you know what: insurance company people are frustrated too. Most of the blame gets laid at the feet of the insurers, and rightly so in many cases. Responding to a catastrophe the size of the recent hurricanes is an incredibly difficult task, and many insurers were not prepared for that challenge. There is plenty of blame to go around. Policyholders are legally responsible, under Louisiana law, for reading and understanding the insurance contract that they sign, but it is rare to find a policyholder that has actually read the policy language. And (I know this is shocking to our agent-centric audience) agents haven’t been perfect, either!

So, what can agents do to help the company pay claims faster? After all, companies have been disintermediating agents from the claims process steadily for years. Gone is the agent’s claims draft authority. Gone are the local claims offices where an agent might call an adjuster that he knows personally at the company. In most cases, companies encourage the policyholder to report directly to the carrier’s 1-800 number, rather than contacting the agent to file a claim at all. So, agents have been pushed to the sidelines in the claims process. All that is left for agents is to educate your clients about the claims process, advocate on their behalf when a company is not living up to their end of the bargain, and otherwise, wait and hope: completely at the mercy of the company ’s adjusters to deliver on the promise you sold to the policyholder.

The biggest thing that agents can do to speed the claims process occurs long before the storm even makes landfall. Get good, updated renewal information! Too often, agents renew everything “ as expiring” for years on end without updating the

Outdated contact information

Make sure that your insured updates their contact information on a regular basis.

When you make the ask, put it in terms of a potential claim: “is this the best number for the company to contact you in the event of a claim?”

Get cell phone numbers and email addresses. After a storm, many people are forced out of their homes and offices. The landlines have suddenly been rendered useless. While some people are hesitant to give out their cell numbers and emails in an age of perpetual spam, it is important for an agent to push to get mobile numbers and email addresses, so that the company can reach the policyholder when processing a claim after a storm.

applications, underwriting information, and contact information. This outdated information can cause huge problems when a claim occurs. Companies and brokers have told IIABL that two of the drivers delaying claims are caused by outdated information:

1. a.

b. 1. 2. C o n t i n u e d f r o m p a g e 1 0

Updated loss payee information

a.Mortgages are sold frequently in today ’s financial market. It is rare for a mortgage to terminate with the same company that initially made the loan on the house.

Virtually all home mortgages are conglomerated into packages financed by big national banks. b.When the claim comes, if the loss payee information has not been updated, the check will be cut listing the wrong mortgagee. The insurer will require proof that the mortgage was sold or paid off in order to make a change before they can reissue a check to the policyholder.

Regularly checking the loss payee information on renewal apps with your insured is crucial to ensuring a timely payment in a claim.

Carey Wallace Agency Focus

Independent Insurance Agency Consulting

Helping you grow your agency!

Keeping and retaining talent has been on the minds of agency owners from the day I entered this industry.It has remained in the top 5 concerns of agency owners in literally every survey I have ever read. With the current movement in our workforce, my guess is this topic will remain at the forefront for the foreseeable future. When this topic comes up, there is a great deal of focus placed on what current owners are doing to attract and retain great talent, but what about the other side to this conversation. I believe that in order to create a meaningful career and future within an agency, the responsibility lies with both the owner and the potential future owners. If you are a hungry, smart, energetic leader who sees the incredible opportunity that exists in our industry to become a business owner, my question to you is, what are you doing to build your pathway to ownership?

Opportunity is everywhere

According to the latest Agency Universe Study, there are 36,000 agencies across the United States. Over 49% of those agencies have owners that are 56 or older, which means that half, 18,000 agency owners, will be at or past retirement age in the next 5-10 years and thinking about transitioning ownership in their agency. According to the

same study, the majority of agency owners want to transition internally to a current partner, employee, or family member. There will never be a better time to position yourself as a future agency owner. In addition, independent insurance agencies are incredibly strong businesses –seriously, name another industry where 85-90% of your revenue typically renews. I am not suggesting that there aren’t challenges but, as far as opportunities go, this industry is rich! In fact, I still think it is one of the best kept secrets! So, the question is, with all of this opportunity, what are you doing to position yourself as a future owner?

Bridging the generational divide

I think we all talk about how to communicate with the next generation, but have you considered what you are doing to connect with the generations that came before you? Baby Boomers are wired to view hard work and commitment based on hours and time while that is far less important to GenX and Millennials who demonstrate their worth and

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C o n t i n u e d f r o m p a g e 1 2 commitment by making a difference and being innovative. The issue is, at our core, these perceptions and behaviors conflict. Having an awareness and ability to move past your own tendencies and meet people where they are is a skill that is incredibly important for leaders to possess. It is important in every relationship that we have, so having an appreciation for the different perceptions that we all have can go a long way in bridging this generational divide and demonstrating your leadership abilities. Small changes like being present or meeting in person when discussing important topics can go a long way. Seeking out advice and taking the time to consider and incorporate that advice into your approach builds mutual respect and shows that you value their opinions and shows your ability to relate to all different types of people.

Broadening your view

Have you ever heard that you should dress for the position you want, not the one you have? Using

that same logic, you should think like the position you want not the position you have. Far before you have the title of owner, you can think like one by broadening your view and considering all aspects of the business not just your perspective. When a problem arises, ask yourself how the problem impacts all roles inside the agency, your customers and your partners. Ask questions about the business, and participate in creating solutions. Make the shift from sharing problems to sharing solutions. Leaders have to make some difficult and sometimes unpopular decisions, and it is incredibly valuable when others are able to rise above their own viewpoint and see the bigger picture. What are some ways you can do this and support the current owner? By taking this approach, the current owner will be able to picture you in a leadership role more easily.

Find your mentor and value their guidance

If you want to set yourself up for success, one of the best things you can do is surround yourself with people who are smarter than you, have different experiences and hold different viewpoints. We all have blind spots, so seeking out a diverse group of people who can make you think is powerful. They will be able to maintain a more holistic view of both the opportunities and challenges inside our industry. The industry is full of people who are willing to share and mentor each other, however, I would just caution you from surrounding yourself only with people who look, think and talk like you. The best predictor of the future is the past, except when you learn from it. The knowledge that many veterans in our industry posses can go a long way in helping you shape the future. If you want to set yourself up for success, one of the best things you can do is surround yourself with people who are smarter than you, have different experiences and hold different viewpoints. We all have blind spots, so seeking out a diverse group of people who can make you think is powerful. They will be able to maintain a more holistic view of both the opportunities and challenges inside our industry. The industry is full

of people who are willing to share and mentor each other, however, I would just caution you from surrounding yourself only with people who look, think and talk like you. The best predictor of the future is the past, except when you learn from it. The knowledge that many veterans in our industry posses can go a long way in helping you shape the future.

Planning for change

Often times young leaders are rich with energy, grand ideas, and aggressive goals – it is what makes you so incredibly attractive and, in many ways, frightening. For someone that has all of that energy, the current owner can feel like an anchor. For you, the inaction is discouraging and for the current owner the ready, fire, aim approach is frightening. The truth is your energy and approach may remind them of themselves twenty or thirty years ago. As with everything, the right path forward most likely lies somewhere in the middle. I would suggest sharing ideas with a thought-out plan that encompasses as many aspects as possible including time, cost, training, and supporting data to support your plan. Share ways to measure the success or failure of the idea and a process to implement. The more comprehensive and well thought out, the more trust and confidence you will instill that your ideas have merit, and you are going to be thoughtful in your approach.

Financial commitment

In addition, if you want to be a future owner, are you preparing financially? Are you prepared to purchase an agency? In order to secure a loan, you will need sound credit and the ability to put 10% down. Becoming an owner will require taking on both the financial risks and rewards of the agency, so the more you can do to gain an understanding of the business and all that is involved with running the agency, the better prepared you will be to become an owner. This topic is sensitive, but expressing an interest to learn and understand how the business works will speak volumes. Don’t expect to get full access to the inner workings of the business the first time you inquire, start small and be patient. This process is a marathon, not a sprint and with the right mindset and expectations everyone involved wins.

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C o n t i n u e d f r o m p a g e 1 4 Change takes patience, trust and often times is a winding road with lots of twists turns. For those who are willing to be thoughtful and participate in building a pathway to a future that meets both their needs and instills confidence in the current owner – there are endless opportunities and a very bright future ahead. Remember a great deal went into building the business that exists today, and the thought of trusting someone else with your life’s work is incredibly difficult. There are many ways to ease those fears and instill confidence that their legacy will be in good hands. So many agency owners are looking to find the right person to trust with all that they have built and provide them with the same opportunity as that given to them. To many, it feels like that person may be a unicorn. My advice to you is - be that unicorn! For more information visit www.agency-focus.com.