wisconsin INDEPENDENT AGENT
YOU STILL
APRIL 2022
HAVE TIME
InsurCon2022 is happening May 9-10!
REGISTER NOW! IIAW.COM/INSURCON
This issue was brought to you by our Exclusive Supporting Company Member:
“I love spending hours trying to quote online.”
SAID NO AGENT EVER. No agent ever said they enjoy wasting time. But they have said fast online quoting with a clear understanding of appetite is key to a successful partnership. UFG Insurance listened.
Welcome to a better way to work online — because you deserve it. BOP-Pro Get down to (small) business with this robust businessowners policy, including select endorsements to take coverage to the next level. Pro-Quote Get from start to bind with fast efficiency thanks to smart tools and straight-forward appetite within this enhanced quoting experience.
Simple solutions for complex times
UFG’s rejuvenated online experience isn’t about being better than others — it’s about being better for agents like you. Explore our simple solutions for complex times and experience service aimed to exceed expectations.
ufginsurance.com/online © 2021 United Fire & Casualty Company. All rights reserved.
CONTENTS
wisconsin INDEPENDENT AGENT
COVER STORY: You Still Have Time Register for InsurCon2022! InsurCon2022 is happening on May 9-10 in Wisconsin Dells. With seven speakers, elevated evening entertainment and a bowling event, you won't want to miss this year's event.
PAGES:
6-10
INSURANCE BARTENDER.........................................................12-13 Digital Process Automation: Transforming the Insurance Industry
RISKY BUSINESS.............................................................................16 Sales & Leadership Training is Back
PERSONAL LINES............................................................................18-19 5 Questions to Ask Every Personal Lines Customers This Year
AGENCY OPERATIONS................................................................22-23 4 Remote Work Concerns You're Missing
COMMERCIAL LINES....................................................................24-25 Certificates of Insurance FAQs and Answers
MEMBERS IN THE NEWS..............................................................26-27 HUMAN RESOURCES....................................................................29 The Great Resignation
INDEPENDENT INSURANCE AGENTS OF WISCONSIN 725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com
2021-2022 EXECUTIVE COMMITTEE President:
Marc Petersen | American Advantage - Petersen Group, New Berlin
President-Elect:
Nick Arnoldy | Marshfield Insurance Agency, Inc., Marshfield
Secretary-Treasurer:
Michael Ansay | Ansay & Associates, Port Washington
Chairman of the Board:
Darrel Zaleski | Spectrum Insurance Group, Eau Claire
State National Director:
Steve Leitch | Leitch Insurance, River Falls
2021-2022 BOARD OF DIRECTORS Matt Frank | Robertson Ryan & Associates, Milwaukee Mike Harrison | R&R Insurance Services, Inc., Waukesha Aaron Marsh | Marsh Insurance Services, Inc., Rice Lake Dan Lau | Robertson Ryan & Associates, Milwaukee Andrea Nelson | Unisource Insurance Associates, LLC, Wauwatosa Brad Reitzner | M3 Insurance Solutions, Madison Joanne Lukas Szymaszek | Johnson Insurance Services, LLC, Racine Chad Tisonik | HNI Risk Services, LLC, New Berlin
IIAW Staff Matt Banaszynski | Chief Executive Officer 608.256.4429 • matt@iiaw.com
GOVERNMENT AFFAIRS.............................................................30-31 Legislature Shaping Up to Look Much Different Next Year
Mallory Cornell | Vice President and Director of Risk Management 608.210.2975 • mallory@iiaw.com
AGENCY MANAGEMENT...........................................................32-33
Kim Kramp | Accounting Supervisor 608.210.2976 • kim@iiaw.com
COMMENTARY FROM COUNSEL..........................................30-31
Trisha Ours | Director of Insurance Services 608.210.2973 • trisha@iiaw.com
The Problem with Silence
Employers Cleared to Consider Domestic Violence Convictions in Hiring & Retention Decisions
Evan Leitch | Agency Solutions Advisor 608.210.2971 • evan@iiaw.com
ADVERTISERS INDEX
Kaylyn Staudt | Marketing and Communications Coordinator 608.210.2977 • kaylyn@iiaw.com
Berkshire Hathaway GUARD...................17 EMC......................................................................20 Erickson-Larsen..............................................23 IMT.......................................................................36 Johnson Financial Group............................27 Penn National..................................................28 Robertson Ryan & Associates..................33 SECURA.............................................................35 UFG......................................................................2 Vizance...............................................................11 West Bend.........................................................4 Western National...........................................15
Andrea Michelz | Membership Engagement Coordinator 608.210.2972 • andrea@iiaw.com
Jeff Thiel | Director of Agency Success 608.256.4429 • jeff@iiaw.com
Diana Banaszynski | Education & Events Coordinator 608.256.4429 • diana@iiaw.com Wisconsin Independent Agent is the official magazine of the Independent Insurance Agents of Wisconsin (IIAW) and is published monthly by IIAW 725 John Nolen Drive, Madison WI 53713. Phone: 608.256-4429. IIAW does not necessarily endorse any of the companies advertising in publication or the views of the writers. IIAW reserves the right, in its sole discretion, to reject advertising that does not meet IIAW qualifications or which may detract from its business, professional or ethical standards. © 2022 For information on advertising, contact Kaylyn Staudt, 608.210.2977 or kaylyn@iiaw.com.
wisconsin INDEPENDENT AGENT
| APRIL 2022 | 3
It shouldn’t take walls collapsed by 140-mile-per-hour winds to find out who your customers can trust.
BUT SOMETIMES IT DOES. And that’s the Silver Lining®.
Company Headquarters: West Bend, WI Website: www.thesilverlining.com AM Best Rating: “A” Excellent At West Bend Mutual Insurance Company, helping our independent insurance agents, and establishing trust, is paramount to our success. West Bend has earned a reputation in the industry for building and nurturing strong relationships with agents through personal contact, responsible actions, and a genuine concern for our valued partners. Today, more than 1,500 independent insurance agencies across 15 states represent West Bend. Our associates develop and nurture strong relationships with our customers by providing policyholders with fast and fair claim service and thorough underwriting and loss control services. A West Bend associate will work late to get out an urgent quote, another will calmly walk a nervous claimant through the claims process, while still another will make sure an overnight delivery gets out on time. All of this, and more, is done with the goal of responding to our customers’ needs quickly, empathetically, and ethically. Our associates drive our culture of service and family at West Bend. It’s because of them that we’ve been honored as a Best Place to Work in Insurance for 12 consecutive years by Business Insurance and as a Top Workplace by the Milwaukee Journal Sentinel for 12 years. West Bend was also honored by Forbes as one of America’s Best Insurance Companies, Best-In-State Employers, Best Midsize Employers, and Best Employers for Women. Fortune recognizes West Bend a Best Workplace for Millennials. We’re very proud of the many awards acknowledging our workplace, community service, financial stability, and support of healthy lifestyles for our associates. All of these make West Bend a better company for our trusted agent partners.
6 | APRIL 2022 |
wisconsin INDEPENDENT AGENT
MAY 9-10 KALAHARI RESORTS WISCONSIN DELLS, WI
SCHEDULE OF EVENTS MONDAY, MAY 9TH 8PM-10PM
Kalahari Volcano Lanes
BOWLING & NETWORKING EVENT
TUESDAY, MAY 10TH 9AM-9:45AM
Africa East
9:45AM-10:15AM
Africa East
10:30AM-11:15AM
AGENCY TECHNOLOGY Steve Anderson, Catalyit
CYBERSECURITY & RECOVERY Kevin Bong, Sikich LLP
STATE OF THE ECONOMY
Join us for a fun night of bowling and networking in the Kalahari’s extensive 24-lane bowling alley, Volcano Lanes. (Limited space available on a first come, first serve basis. Additional charge)
Steve will kick off InsurCon2022 by discussing how your IT departments can generate revenue, new technology options and tech trends for 2022. As the Director of Cybersecurity for Sikich LLP, Kevin will discuss cybersecurity and recovery in the insurance industry.
Chris Calvelli & Michael Antonelli, Baird
Michael and Chris will lead a fast-paced, energetic discussion about the lessons from history after the world broke. They’ll cover what historians say occur after a crisis: inventions, interruptions and accelerations.
11:15AM-1:15PM Africa West
EXHIBITOR NETWORKING LUNCHEON
Grab lunch from one of the available food carts, sip on a drink from the bar and start marking off your Blackout Bingo card while networking with exhibitors.
1:15PM-2PM
ELECTION POLLING DATA
Charles Franklin, Director of the Marquette Law School Poll, will dive into state & national polling data and explore what to expect for the November election.
AGENCY SALES
Kelly, Founder of Agency Performance Partners, has helped hundreds of insurance agencies boost revenues, profits and efficiency. She’ll discuss how to create an amazing sales process.
CONSUMER RESEARCH & INSIGHTS
Brian will cover the six factors influencing the purchasing of insurance online that you will not want to miss!
3:30PM-5PM
EXHIBITOR SHOWCASE
Continue marking off your Blackout Bingo Card and stick around until the end of the Showcase to hear the winners for Blackout Bingo and the Super Door Prizes!
5PM-6:30PM
NETWORKING & COCKTAILS
Join us in the Convention Foyer for complimentary drinks & industry friends. We will not have company hospitality time this year, so please remain at the event for networking immediately followed by dinner.
DINNER & EVENING ENTERTAINMENT
Dinner is served at 6:30 p.m. & so is great entertainment! Matt Banaszynski, IIAW CEO, will sit down with Garth Wicinsky to talk about his vision for the future as he takes over the helm as SECURA CEO. Mike Ansay will lead a walk down memory lane alongside industry legend, Dave Gross, as we honor Dave on his retirement as SECURA CEO. Last but certainly not least, evening entertainment will be provided by Bill Walton, NBA and College Basketball Hall of Fame. As entertaining as he is insightful, Bill is widely considered one of the best speakers from the world of sports.
Africa East
Africa East
2PM-3PM
Africa East
3PM-3:30PM Africa East
Africa West
6:30PM-10PM
Africa East
Charles Franklin, Marquette University Kelly Donahue-Piro, Agency Performance Partners
Brian Kiley, West Bend
Keynote Speaker: Bill Walton
*Please dress in business attire for our evening entertainment*
Register Now: iiaw.com/insurcon
SPEAKER LINEUP This year’s convention will feature eight energizing speakers covering topics spanning from marketing, best practices, the state of the industry and so much more. Don’t miss this must-see event of the year.
OUR KEYNOTE SPEAKER:
BILL WALTON Basketball legend Bill Walton is one of sports’ most recognizable and beloved figures. His success on the court is well-documented; the nation’s top college basketball start at UCLA, he then played for two NBA Championship teams - the Portland Trail Blazers and the Boston Celtics. He was inducted into the Basketball Hall of Fame and named on the “50 Greatest NBA Players of All-Time” list. After his playing career, Bill pursued broadcasting; he is currently covering Pac-12 games on ESPN. Bill Walton has led a life of humility in service of inspiring others. His autobiography, Back from the Dead, was a New York Times bestseller and he is perhaps the best-known Deadhead, having seen over 900 shows. As entertaining as he is insightful, Bill is widely considered one of the best speakers from the world of sports. The lessons he learned on the basketball court became life lessons that served him well throughout his sports, broadcasting and business careers! 8 | APRIL 2022 |
wisconsin INDEPENDENT AGENT
STEVE ANDERSON, CATALYIT Steve has spent his 35+ year career helping insurance agents understand, integrate and leverage current and emerging technologies. Steve will discuss how your IT department should generate revenue, new technology options and tech trends for 2022.
CHRIS CALVELLI, BAIRD Chris has been in the financial services industry since 1997 and with Baird since 1999. He serves as Baird’s Managing Director. Michael Antonelli, Baird Market Strategist, will join Chris as they lead a fast paced, energetic discussion about the lessons from history after the world broke.
MICHAEL ANTONELLI, BAIRD Michael is a Market Strategist for Baird’s Private Wealth Management Group. In this role, he creates content for clients focusing on the behavioral side of investing. Michael and Chris will cover what historians say occur after a crisis: inventions, interruptions and accelerations.
BRIAN KILEY, WEST BEND Brian is the Marketing Research and Insights Supervisor at West Bend Mutual Insurance. Brian will lead a discussion on the six factors influencing the purchasing of insurance online that you will not want to miss!
CHARLES FRANKLIN, MARQUETTE UNIVERSITY Nationally recognized government scholar and pollster Charles Franklin has been Director of the Marquette Law School Poll since its inception in 2012 and became a full-time member of the faculty in 2013. Franklin will use the poll to track political races of interest to voters and explore what to expect during the November election.
KELLY DONAHUE -PIRO, AGENCY PERFORMANCE PARTNERS Agency Performance Partners Founder Kelly Donahue-Piro has helped hundreds of insurance agencies boost revenues, profits and efficiency. Her specialties include agency culture assessment and change; management and supervisory coaching and benchmarking; customer retention strategy development; digital marketing strategy, planning and implementation; and sales planning, management and skill-building.
KEVIN BONG, SIKICH LLP
Kevin is the Director of Cybersecurity for Sikich LLP. With his experience performing audits, penetration testing, risk assessments and forensic investigations, Kevin provides invaluable guidance to institutions affected by standards such as those related to the FFIEC, NIST, HIPAA and PCI. Kevin is the creator of the MiniPwner, a pocket-sized penetration testing device used to gain remote access to a network.
FOR OUR INSURCON2022 KICKOFF EVENT:
NETWORKING & BOWLING
MONDAY, MAY 9TH 8pm to 10pm
KALAHARI’S VOLCANO LANES WISCONSIN DELLS
Join us for a fun night of networking & bowling in the Kalahari’s expansive bowling alley & lounge, Volcano Lanes. Registration for this event is $40 and includes pizza, beer and bowling for the evening. Not interested in bowling? We have a reservation option for non-bowlers too! Non-bowling registration is $25 and includes beer & pizza. The bowling alley has plenty of room for networking with industry friends, axe throwing, golf simulator games and so much more. Registration is on a first come, first serve basis. Save your spot:
iiaw.com/insurcon 10 | APRIL 2022 |
wisconsin INDEPENDENT AGENT
BE THE NEXT
Find out why agency owners choose us! • • • • • • • •
Broad Leadership Team that is 100% focused on the insurance business Flexible deal structures including the ability to retain some ownership Strong focus on culture, associate engagement, and client satisfaction Proven ability to drive double-digit organic growth Recruiting & mentoring program to develop those new to the industry Shareholder program for top performers Ability to maintain leadership with regional and practice group support Committed to serving our communities
Call us for a confidential conversation Tom Schaetz 419.450.0317
INSURANCE BARTENDER
DIGITAL PROCESS AUTOMATION: TRANSFORMING THE INSURANCE INDUSTRY Insurance used to be seen as a long, drawn-out, paperheavy process. But Digital Process Automation (DPA) is changing all that… Thanks to digital transformation across other industries, customers now expect instantaneous responses from their agents and insurers, whether they’re applying for a new policy or making a claim. But the insurance market is full of stringent regulations, so it’s not as easy to digitize. In addition, the myriad of legacy systems that agencies and insurers have built up over the years stifles innovation as they try to modernize and keep up with the impending threat of insurtech start-ups. DPA allows the people, applications, distribution partners and information/data across your insurance organization to communicate and operate more seamlessly. By integrating systems and eliminating silos, your employees are provided with the single view of data they need to make decisions and perform services efficiently throughout the customer journey, from onboarding through to underwriting, binding coverage, renewals and processing claims. Some of the areas we see process automation are rapidly revolving around the following areas. 1 – Customer Experience (Intake, prefill, quoting, proposals, issuing, billing and more) 2 – Underwriting 3 – Policy Administration 4 – Claims 5 – Compliance 6- User Experience/Operations/Workflows Many businesses, for example are turning to an automation tool called Zapier that lets you easily create workflows that involve common web apps and services. Zapier uses a simple trigger and action for creating commands, akin to “if this happens, then do that”. This is one example of a solution that exists to connect the technology innovating the insurance ecosystem allowing the users and customers to save time and focus on the work that needs most of your attention. Let’s look at a very simple and easy example applicable to an insurance agency. Many agencies have a form on their website used to collect quotes. Outside of sending you a notification when someone has clicked 12 | APRIL 2022 |
wisconsin INDEPENDENT AGENT
submit, there isn’t a lot of integration or efficiency for the agency. You likely have an Agency Management System (AMS) or a Customer Relationship Management (CRM) software program that helps you manage your customer data and interactions. With Zapier acting as the go-between for these programs, you can connect these two applications/ systems together so when someone fills out a form on your website, it automatically (through Zapier) uploads into your AMS or CRM. Overall, the potential for automation in the insurance industry is limitless. Across different geographies and sometimes even within the same company, various processes and workflows are in various stages of digitization, and many can be at least partially automated. Automation is the lever that can help transform your operations, radically elevate your employee satisfaction, and improve your customer’s experience. But where to start an automation program? What are the areas most suited for end-to-end process automation in insurance? These are the questions we are hearing from our agents and carriers. Many insurance agencies and companies are very cautious when implementing technologies, but they must redefine their strategies and goals, delivering innovative technologies to their client and their workforce. The IIAW and Catalyit can assist your business in this process should require assistance on your process automation journey. Before automating any process or implementing any new technology, consider the following steps: 1. Comprehensively evaluate your agency/company to identify procedures/workflows that can be automated. his way, you can start transforming small areas of your business to move toward others of greater importance. Make sure there is consistency and continuity in the procedures/workflows you are looking to automate. This is a must before moving forward. 2. Identify business goals so that you automate those tasks that benefit the company most. For example, if your goal is to improve customer service to increase
retention, then you could focus on automating the renewal process with a focus on the customer and user experience.
9. Finally, we reach the stage of implementation of the digital process automation solution. When I was growing up and my father was teaching me to hunt, he used to say, “aim small, miss small”. Same applies here. Start small and scale from there. No need to roll out a new technology solution across your entire business. Start with a business unit, line of business, a niche market and go from there. Don’t forget to monitor its performance and evaluate its success.
3. Illustrate the automation of the process you want to transform. Establishing which tasks you are going to streamline should allow you to map the automation of your workflow. 4. Identify and train key employees. Involving the right employees is vital. Key personnel who are open to process improvement and process automation must play an important part of the transformation. Your success depends on it. 5. Review your company’s existing technology stack. You may be surprised to learn that your existing automation system has some process automation built into it that you aren’t currently utilizing. 6. Create a culture of innovation and communicate. It’s equally as important to effectively communicate to the rest of your team (non-early adopters) and ensure they don’t feel excluded or displaced by technology. The company will need to train staff on automating flows, leading the team toward more strategic tasks. To successfully do so, employees need to feel empowered by the changes you are gong to make and understand the benefit to not only the customer, but themselves. This starts with having a culture of change and innovation.
It is normal to face challenges when automating processes/workflows in a company. Don’t be afraid to FAIL. Its your First Attempt In Learning. Most of the greatest companies have achieved their greatest success just one step beyond their greatest failure. Thankfully, you have the IIAW and Catalyit as a strategic partner to help you succeed. To learn more about Catalyit visit www.catalyit.com. Don’t hesitate to contact me if the IIAW can be of any assistance in helping your business achieve digital processing automation success. E-mail me at Matt@iiaw.com.
7. Identify and review automation solution providers who offer products (and services) that align with your automation strategy. 8. Establish goals, objectives and assign responsibilities. Determine expenses and set a budget. By setting the objectives you hope to achieve with automation, you will be able to measure the expense and return on your investment.
When looking for automation tools, businesses should ensure they have an architecture that allows integration with other platforms (AMS), technologies and applications to expand the possibilities of business process automation in the future. In addition, the automation solution must be scalable and flexible to the company's workflows and customers. Routinely evaluating key performance indicators and the metrics around DPA solution will help you check and adjust along the way.
> Matt Banaszynski, CEO, IIAW
Matt’s Mixology
Spiked Raspberry Sweet Tea Ingredients •
8 cups water
•
2 family-sized tea bags
•
1/2-1 cup granulated sugar
•
1/4 teaspoon baking soda
•
1 1/2 cups Chambord Liquor
•
1/2 cup vodka
•
mint leaves, raspberries & lime
Directions 1. Bring water to a boil and pour in a pitcher. 2. Add the tea bags, cover and let steep for 15 minutes. 3. Remove tea bags and add the sugar and baking soda. Stir until the sugar dissolves. 4. Add in the Chambord and vodka. 5. Let the tea cool. 6. Pour into the ice-filled glasses. Garnishes with raspberries,
slices Recipe & Photo Courtesy of The Cookie Rookie
lime slices & fresh mint leaves. wisconsin INDEPENDENT AGENT
| APRIL 2022 | 13
CALLING ALL AGENCY OWNERS & LEADERS:
TAKE OUR AGENCY COMPENSATION SURVEY
DATA COLLECTION The survey will take an average of 10-15 minutes to complete, and your participation will give you FREE access to the final report. The report will give you insight into salary benchmarking across Wisconsin, benefits packages, salary trends and more WI-specific data that has never been accessible before.
The IIAW’s 2022 Agency Compensation Survey will pave the way for a new agency compensation report focused exclusively on independent agencies in Wisconsin. We encourage all agency owners & leaders to take the survey, as this is the only way to gain access to the final report.
CONFIDENTIALITY All information submitted will remain highly confidential and will only be accessible to certain IIAW employees involved in the survey process. Your information will never be sold, shared or otherwise disseminated. All information gathered will be stripped of agency name, respondent name and other identifiable information. REPORT SHARING The final report will only be shared with the agency owners/leaders who participated in the survey. We will not share the report with agency employees.
iiaw.com/compensationsurvey Questions? Contact Matt Banaszynski: 608-256-4429
matt@iiaw.com
nice has your back.
At Western National Insurance, nice is what’s guided us for over 100 years. And we’re just getting started. Western National Insurance. The power of nice. www.wnins.com
RISKY BUSINESS
SALES & LEADERSHIP TRAINING IS BACK! IIAW Partners with MarshBerry to bring an exciting professional development course to Wisconsin! Many people can attest to the benefits of taking a step back and making a fresh plan with the vision now in front of you. While a global pandemic provides a bit more time and perspective for this type of activity, it isn’t always as simple as it might seem. Nevertheless, the IIAW Emerging Leaders Committee is ready to offer an exciting sales and leadership professional development opportunity once again. The feedback and input from our members gave us the direction to build a program that proactively addresses the needs in our industry and provides ready-to-use tools to drive sales and success. And who better to partner with than the team at MarshBerry. In August, facilitators from MarshBerry will join us in the Fox Valley to offer a 1.5-day experience just for IIAW members. Through careful planning and preparation, a thoughtful agenda of handson training has been compiled. MarshBerry facilitators will provide their valuable insight into the insurance industry and will then transition down a learning path focused on selling techniques and collaborative success. It is time to hit the restart button. Recharge your sales engine. Refresh your perspective on working together. And renew your culture with a “Believe It, Sell It, Demand It” spirit. Watch for communication on registration coming soon in our weekly Big I Buzz e-newsletter and on our social media outlets.
> Mallory Cornell, Vice President, IIAW
16 | APRIL 2022 |
wisconsin INDEPENDENT AGENT
AmGUARD • EastGUARD • NorGUARD • WestGUARD
Commercial & Personal Lines Insurance solutions for homeowners and small, medium, and large businesses. Competitive pricing, multi-product discounts, and easy submission process!
APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY/ Not all Berkshire Hathaway GUARD Insurance Companies provide the products described herein nor are they available in all states. Visit www.guard.com/states/ to see our current product suite and operating area.
wisconsin INDEPENDENT AGENT
| APRIL 2022 | 17
PERSONAL LINES
5 QUESTIONS TO ASK EVERY PERSONAL LINES CUSTOMER THIS YEAR With continued pressures from the coronavirus pandemic and changing weather patterns following us into 2022, scheduling meetings with your personal lines customers may be more important than ever. Whether it's reviewing relevant life changes, understanding how the pandemic has impacted individuals and families, or simply discussing coverages they may need going forward, an annual needs assessment is a great opportunity to showcase the experience and value your agency brings to your customers. As you prepare for these conversations, here are five questions you should plan on asking: 1) Have you made significant improvements to your home or are you planning to? The Hanover's 2021 “Home Renovation Report" found nearly 70% of homeowners had plans to improve their homes over the next year. That's not surprising, given the increasing amounts of time people have spent at home due to COVID-19. As a result of the pandemic, many homeowners added study spaces for remote learners, offices for remote workers, updated family rooms, expanded outdoor gathering spaces and more. These kinds of upgrades—in addition to kitchen or bathroom renovations, installing a deck, building an addition, finishing a basement or updating a cooling system—can all impact insurance coverage needs. Significant home improvements should prompt homeowners to reassess the coverage A limit of their homeowners insurance policy. The report found of those who made major home renovations during the pandemic, 40% failed to contact their insurance agent to ensure their coverage reflected the home's updated value, making it important you proactively ask your clients about any changes. 18 | APRIL 2022 |
wisconsin INDEPENDENT AGENT
This also is a good time to ensure the home is covered at its replacement cost. Should it ever be a total loss, most homeowners will want to be insured for the cost to rebuild. This is especially true given the recent increase in labor and material costs. With an increase in a home's replacement cost, agents may want to consider whether a customer should be moved to highvalue home insurance protection. Coverage designed for customers with more complex insurance needs can offer more value, added benefits and customized protection. Beyond coverage A, homeowners may consider other coverages as well. For example, they may contemplate equipment breakdown coverage if appliances were upgraded, including water heaters, security systems, refrigerators, central air conditioning systems and more. This coverage can potentially address costly repairs or replacements that may be needed if those systems and appliances were to fail. 2) Are you working out of your home, have started a home business or are renting your house? There are 31 million small businesses in the U.S. and more than half are homebased, according to the U.S. Small Business Administration—and during the pandemic, more are setting up shop than ever before, leaving many of them open to financial risks not covered under standard homeowners policies. Whether it's a business with foot traffic located within a primary residence, inventory stored at the home or a business that simply requires liability protection, there are several options to help protect these homeowners.
Similarly, homeowners who rent out their houses as short-term rental properties also can be protected by home-based business coverages. Some insurance companies offer home-based business coverages as endorsements to homeowners policies, making it more efficient, cohesive and cost-effective for both the customer and the agency. If home-based business coverage is added, customers may also want to consider an umbrella policy for additional protection. Additionally, cyberattacks continue to grab the headlines. With that in mind, home-based business owners should consider cyber coverage that can help with system restoration, expert advice and data recovery costs for computers and connected devices in the event their home network is breached. Such coverage may also assist with online fraud that results in direct losses, such as phishing schemes or identity theft and unauthorized use of credit cards or accounts. 3) Have you considered how to protect your assets from extreme weather events? Severe weather events are becoming increasingly common. In 2021, there were 20 weather disasters in the U.S. with losses that exceeded $1 billion, according to the National Centers for Environmental Information (NCEI). More and more, weather patterns are changing, resulting in natural disasters in geographic regions that typically haven't been susceptible to them. Agents can educate customers on preparedness by talking with them about completing home inventories, ensuring items like sump pumps are proactively installed and preventatively maintained, and offering advice to help protect their properties. The Insurance Institute for Business & Home Safety (IBHS) is a great content resource. Customers may benefit from water backup coverage for damage caused by backed up or failed drains— the third-most costly claim, behind fire and liability lawsuits. When siding or a roof is damaged, sometimes the original materials are no longer available. Rather than having mismatched materials, siding or roof restoration coverage can help keep a home's exterior uniform. For account customers, if a storm damages their vehicle and their home, waiver of deductible coverage could help save them from paying multiple deductibles for one event. 4) Would you like to combine all of your accounts with one insurance company?
Customers who have their personal lines policies with a variety of insurance carriers can potentially benefit when combining their policies with a single carrier. Doing so allows customers and their agents to efficiently address additional coverage needs, such as motorcycle or boat insurance, and may provide some multi-policy discounts too. A common effective date and a single company to call for claims improves ease of use for the customer and the agency, while boosting retention. Data from The Hanover shows account business has a retention rate of up to 95%, significantly higher than split and monoline accounts. The data also shows that account business has about 3 times higher premiums and 5 times greater expected lifetime values than split or monoline accounts. 5) Can we add an email address and cell phone number to your account? This is a simple one, but ensuring customer contact information is up to date can help make it easier for an agency to conduct periodic touchpoints with customers. Customers can then receive communications from their carriers to manage their accounts, sign up for paperless billing and more. This can help boost an agency's retention. The Hanover's research shows clients who receive two or more communication touchpoints a year have a retention rate that is 10 points higher than those that do not. The COVID-19 pandemic brought a lot of changes and challenges for many individuals and families. As you're connecting with your personal lines customers this year, these five questions can help prevent gaps in coverage and build account business for your agency. The consultation an independent agent can offer—a personalized assessment of customers' unique needs and risks—is an important value-add over direct carriers. Taking some time to get up to date on any changes your customers have made can help set them, and your agency, up for success.
> Paul James, National Sales Leader Personal Lines at The Hanover Insurance Group
From buttons to bread EMC has it covered. With insurance products covering the needs of nearly 100 different types of manufacturers, EMC agents can better retain and gain more clients. Our comprehensive coverages are tailored to fit the size and scale of any operation — with certain coverages bundled automatically. It’s that ease of doing business that can really put more bread in your pocket.
emcins.com/manufacturing-insurance
©Copyright Employers Mutual Casualty Company 2022. All rights reserved.
20 | APRIL 2022 |
wisconsin INDEPENDENT AGENT
IIAW CONTINUING EDUCATION
2022 ONLINE EDUCATION & CE CLASSES
APRIL & MAY SCHEDULE DATE
TIME
COURSE
APRIL 4/7
12PM-2PM
The Guy in the Bar Returns
4/13
8AM-11AM
Agency Management Based E&O and Ethics
4/14
12PM-2PM
Coverage Disputes Between Thompson & Boggs, You Be the Judge
4/19
8AM-9AM
Claims-Made Policies - The Most Dangerous Insurance Policies
4/21
8AM-10AM
Insight on Modern Day Cyber Exposures & Risk Mitigation
MAY 5/4
1PM-2PM
E&O Exposures: Website & Social Media
5/5
12PM-2PM
5/9
2PM-1PM
5/12
12PM-2PM
Coverage Disputes Between Thompson & Boggs, You Be the Judge
5/19
8AM-10AM
Insight on Modern Day Cyber Exposures & Risk Mitigation
5/20
9AM-12PM
E&O: Commercial Property Coverage Gaps & How to Fill Them
5/23
8AM-10AM
Business Auto Claims That Cause Problems
5/24
8AM-10AM
Contracts Agents Should Read
5/24
12PM-3PM
Commercial Lines Claims That Cause Problems
5/26
8AM-9AM
Claims-Made Policies - The Most Dangerous Insurance Policies
5/26
12PM-3PM
Ethics in the Insurance Industry
5/27
12PM-3PM
Agency Management Based E&O and Ethics
5/31
8AM-9AM
Setting Business Income Limits: It’s Easier Than You Think!
The Guy in the Bar Returns Claims-Made Policies - The Most Dangerous Insurance Policies
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AGENCY OPERATIONS
4 REMOTE WORK CONCERNS YOU'RE MISSING It’s been two years since the world went home to work. So how are we doing? Overall, companies made the transition to remote work and have learned to make it work. Still, as the corporate world faces a decision – to return to the office or to adopt a remote or hybrid work environment – there are plenty of concerns. Employers are concerned about productivity. How are their employees going to remain motivated and productive when they’re not in a physical location? Also, technology issues, cybersecurity, ineffective communication, poor time management all keep employers up at night. Yet while these concerns are certainly real, too many employers are missing some key issues that could impact significantly their remote work experience.
By January 2022, 59% of employees whose jobs can be done from home are working remotely all or most of the time. Another 61% whose workplaces are reopening are opting not to go back to the office. A FlexJobs survey conducted in early 2021 revealed that 58% of employees would “absolutely” look for a new job if they could not continue working remotely. In today’s extremely competitive job market, that potential loss could be devastating to a company. 2. What Companies Can Save If the potential loss of key employees is not enough to have employers looking to embrace remote work, this might: A Global Workplace Analytics study shows that the average employer can expect to save approximately $11,000 annually for every employee who works remotely half of the time.
1. What Employees Want 3. What Retaining Employees Can Mean What’s missing in the conversation is the employee. Today’s employee, having just spent two years working from home, is not ready or willing to head back to an office and a commute. 22 | APRIL 2022 |
wisconsin INDEPENDENT AGENT
Data from Global Workplace Analytics also points to another key benefit for employers: reduction in the cost of turnover.
To replace an employee, employers spend between $10,000 and $30,000. Does remote work actually help with retention, though? Yes. That same data show that an overwhelming percentage of employers – 95% – say that telework has had a high impact on employee retention. 4. What Productivity Now Looks Like There are other benefits, as well. Several large corporations – Best Buy, British Telecom, Dow Chemical – are reporting 35-40% more productivity from remote workers when compared to in-house results. American Express workers exhibited a 43% increase in productivity than their in-office colleagues. In fact, employers from nearly all industries are seeing increases in productivity since their workforce headed home to work. An Upwork report revealed that 32.2% of managers said that productivity has increased since employees started working from home in 2020. A Mercer report found that of 800 employers surveyed 94% said that work productivity was the same or higher since employees started working from home.
5. Rethinking Remote With employers focusing on the potential issues of remote work, they could be missing the larger picture, which is one that includes plenty of benefits that only happen when adopting a remote workforce environment. The best approach is to embrace the change and make the changes needed to ensure that your team feels supported, engaged, and productive. Focusing on the benefits and building a plan to capitalize on them can boost your team’s productivity, increase morale, and improve your business results.
COMMERCIAL LINES
CERTIFICATES OF INSURANCE: FAQS AND ANSWERS Certificates of insurance (COIs) account for more headaches at the agency level than just about any other issue. Because COIs create so much angst, the Big “I" Virtual University regularly hosts webinars about them. Here are the answers to many of the frequently asked questions: Q: Once you have reviewed the request and executed the COI, how do you advise your insured on what can and cannot be done regarding the insurance requirements held within the specific contract? A: You can only consult on the insurance requirements in the contract. When you get a contract to review—hopefully before it's signed—you should schedule a meeting with your insured to lay out what is in the contract and what can and cannot be done from an insurance standpoint. Some requirements can be met by endorsement, some can't regardless of what you do. Your job is to explain to the insured what is available and let them make the business decision. Q: What are the policy aggregate, per project and per location checkboxes in the general liability section of the certificate? A: The policy aggregate is the standard policy aggregates based on the coverage. Per project and per location aggregates are triggered by the attachment of endorsements. If the CG 25 03 Designated Construction Projects General Aggregate Limit is attached, the general 24 | APRIL 2022 |
wisconsin INDEPENDENT AGENT
aggregate applies per listed project. Some carriers use a “blanket" description. For example: “All construction projects undertaken by the named insured". This endorsement is an ongoing operations limits endorsement. If the CG 25 04 Designated Locations General Aggregate Limit is attached, the general aggregate limit applies to each insured location. These are locations that are owned by, leased or rented to the insured but are not locations at which the insured is working. This endorsement is a premises liability endorsement. Q: If a policy is pending cancellation due to non-payment, but the certificate is requested before the cancellation date, should you still issue the certificate while in pending status? A: Technically, you can because a COI is a snapshot of coverage in effect on that day but it creates a distinct problem for you on a couple of fronts. First, do you call the insured to discuss the pending cancellation? If you do, you may have created another problem for the agency if you don't call all insureds with pending cancellation. Second, if you issue a COI without a warning to the holder, are you guilty of creating a detrimental reliance? Because the COI is a representation of the policy in effect on the date it is issued, it seems acceptable and even required to note in the Description of Operations that cancellation is pending effective MM/DD/YY.
Q: If an insured has a blanket additional insured endorsement, do we still need to send the company the certificate holder's information to list them on the policy as an additional insured?
A: That's an interesting question, but more from the point that some folks prefer the older versions. I guess my question in response to your question is: Why is the older version preferred by some?
A: There isn't a “blanket" additional insured endorsement. ISO promulgated two “automatic" additional insured endorsements: CG 20 33 and CG 20 38. Nevertheless, if the party requesting additional insured status is included in the grant of protection offered by the automatic additional insured endorsement, you shouldn't need to send the information to the carrier.
In looking at the changes to the ACORD 25 over the last few editions, it seems to me each change has been for the benefit of the agent. The current version does the best job explaining the intent and purpose of the COI.
However, some additional insureds want to see their name in lights and ask to be specifically listed. If this is the case, use the CG 20 10 or proprietary equivalent and specifically list that additional insured. If the underwriter understands the reason, they may allow it. Keep the key difference between these forms in mind. The CG 20 33 requires privity of contract. Only the party on page one of the contract is granted additional insured status. Conversely, the CG 20 38 grants additional insured status to any party required by the contract to be extended additional insured status. Q: How do we cancel a COI? A: COIs don't have to be cancelled because they are snapshots of coverage on the day the COI is issued. However, if you have made it a regular practice of issuing updated COIs when a policy cancels, you must continue that practice and issue a new COI with updated information. Q: What ACORD version should be used? Our agency management system allows for three different options. Should the newest version always be used? Some like the wording of the older versions and think we should use them. What's your opinion and why?
Also, some states don't allow the use of an older form when a new one is filed and approved. Check with your state to see if you have options for using older forms. Q: In regard to eroding aggregate limits, what do you recommend for open claim reserves? A: Claim reserves are just estimations made by the adjuster. Basically, for COI purposes, ignore them. Nothing has been paid and thus no limits have been reduced. Q: We are beginning to receive requests and requirements from certificate management companies for copies of the insurance declaration page and even the entire policy. This does not seem like a request with which we should comply and seems to border on breach of client confidentiality. What do you think? A: Because the release of an entire policy may potentially violate privacy laws, you must get the insured's permission. I would recommend that permission be obtained in writing and kept on file. Tell the certificate company that the policy is not your information to give. And remember, the policy is a contract between the insured and the insurance carrier—the agency is not a party to the contract. Only the insured can give permission to provide the policy. > Chris Boggs, Big "I" Executive Director of Risk Management and Education
News
CREIGHTON JOINS WEST BEND MUTUAL INSURANCE BOARD
Members in the
ACUITY NAMED TOP EMPLOYER FOR NEW GRADUATES
Sheboygan, WI (3/3/22) - Acuity is named a Top Entry Level Employer for 2022 by CollegeGrad.com, ranked at 178 out of 500 companies on the list. The insurer plans to hire 130 employees this year. “Based on the ‘normal’ of today, we are continuing to expand our hybrid, flexible work policy with our expanded geographical recruiting throughout our operating territory,” said Joan Ravanelli Miller, Acuity General Counsel and Vice President - Human Resources. “Acuity’s staff expansion is an investment in our future,” said Ben Salzmann, Acuity President and CEO. “Our continued growth means that not only are we able to provide rewarding jobs to new hires, but also to offer tremendous advancement potential for employees who seek it.” The insurer will hire staff across all areas of its operations, including processors, underwriters, programmers, technical support staff, analysts, claims professionals, loss control representatives, field staff, maintenance staff, and others. For more information, visit www.acuity.com/careers. Acuity has earned multiple awards as a great place to work, including being named to Forbes’ America’s Best Midsize Employers list (ranked at #26 in the nation out of 500 companies on the list), named to Forbes’ lists of America’s Best-in-State Employers, and ranked #1 in the nation among Glassdoor’s 20 Highest Rated Companies for Work/Life Balance During COVID-19 for two consecutive years. Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 125,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 30 states. Rated A+ by A.M. Best and S&P, Acuity employs over 1,500 people. 26 | APRIL 2022 |
wisconsin INDEPENDENT AGENT
West Bend, WI (3/10/22) - Kathleen M. Creighton has been elected to the board of directors of West Bend Mutual Insurance Company in West Bend. Creighton recently transitioned from the U.S. Navy after a 33-year career, including six years as a Rear Admiral. She was one of a few Information Warfare Community Flag Officers specializing in cybersecurity, information technology (IT) solutions, network operations, and C4ISR capabilities. Creighton has led large organizations with global footprints for the past six years. These include Director, Command, Control, and Communications and Computers at U.S. Indo Pacific Command, where she directed cyberspace operations and enabled assured communications for 375,000 U.S. forces in theater. Creighton brings communications, cybersecurity, IT, and cloud strategy policy and governance expertise to West Bend’s board. “Kathleen’s exceptional leadership and prestigious career within the U.S. Navy will bring a truly unique perspective to our already talented board. We’re pleased Kathleen has joined this impressive group,” stated Kevin Steiner, West Bend president, and CEO. Creighton is a graduate of the University of Notre Dame and was commissioned through the Naval Reserve Officers Training Corps program, where she graduated from the Naval Postgraduate School with a Master of Science in Information Technology Management.
KENT ERICKSON, BONNIE NARANCE AND STEPH SCHWEITZER WIN SOCIETY INSURANCE CUSTOMER EXPERIENCE AWARDS
Fond du Lac, WI (3/11/22) - Kent Erickson, Bonnie Narance and Steph Schweitzer are the latest recipients ofthe Society Insurance Customer ExperienceAward. This award is presented to employees nominated by their colleagues for exceptional efforts in serving Society Insurance policyholders.
Erickson is a senior commercial underwriter who has built a trusted relationship with Society’s largest agency partner. His honest, fair and consistent approach is mutually beneficial for the agency and Society Insurance.
SECURA INSURANCE WELCOMES SARAH KRAUSE AS VICE PRESIDENT HUMAN RESOURCES
The co-worker who nominated Erickson noted that “No other underwriter at Society – nor any other company that I can think of – has developed a relationship as strong. ”In addition to producing top results for total premium, new premium and underwriting profit, Erickson prioritizes mentoring and developing his fellow underwriters. In her role as a trainer – support specialist with Society’s finance team, Narance delivers a positive experience for customers with billing transactions or questions. Her daily responsibilities include resolving customer billing issues, reviewing invoices, notices and reinstatements, coordinating tasks and serving as a subjectmatter expert for best practice guides and complex questions. Narance’s cheerful customer-first approach has fostered many enduring relationships with Society’s agents. Schweitzer, a staff underwriting specialist, plays a critical role in designing the customer underwriting experience for businesses in Society’s new expansion states while also maintaining the legacy systems utilized by other states. Her work on the straightthrough processing functionality in Society’s agent portal is a key piece of the company’s business transformation. Schweitzer possesses a unique ability to consistently put the customer’s concerns first while preserving a balance between internal and external business needs. In recognition of these Customer Experience Awards, Society has donated $250 to each winner’s charity of choice. Erickson and Narance chose the Fond du Lac Humane Society; Schweitzer chose the Fondy Food Pantry.
Neenah, WI (3/21/22) -Sarah Krause was named as SECURA Insurance’s new Vice President – Human Resources. Krause returns to SECURA from Integrity Insurance Company, where most recently she served as AVP Enterprise Transformation Operations, leading the selection and execution of new strategic partnerships to co-create solutions that would accelerate business transformation. Prior to this, Krause was AVP Talent Management and Operations with responsibility for all functions of human resources, facilities, and support services. During her tenure, she successfully led the merger of people, practices, and policies across sister companies Grange and Integrity. Previously, Krause worked for SECURA as a Commercial Underwriting Director. She also held roles with Jewelers Mutual and AFLAC. Krause holds a Bachelor of Business Administration degree in risk management and insurance from the University of Wisconsin – Madison and has her CPCU (Chartered Property Casualty Underwriter), ARM (Associate in Risk Management), AU (Associate in Underwriting), and ARe (Associate in Reinsurance) designations. She serves on the board of directors for Big Brothers Big Sisters of East Central Wisconsin.
“We’re excited to welcome Sarah back to SECURA” said Marty Arnold, SVP and Chief Underwriting Officer. “Her strong operational knowledge combined with her passion for helping people succeed will help us maintain our genuine culture as we success continue to grow profitably.”
We’re invested in the long-term of our associates, clients and communities
If you’re looking to join an organization who is truly invested in your long-term success, visit johnsonfinancialgroup.com/join-insurance to learn more.
Products and services offered by these Johnson Financial Group Companies: Johnson Bank, Johnson Insurance Services, LLC. and Johnson Wealth Inc. wisconsin INDEPENDENT AGENT
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In 1919, A group of Pennsylvania farmers founded Penn National Insurance to provide affordable workers’ compensation insurance. Today, Penn National Insurance sells property-casualty insurance in 11 states by partnering with more than 1,200 independent agency operations. In 2012, we affiliated with Wisconsin-based, Partners Mutual Insurance Company. As one company, we bring the personal attention and local focus of a regional carrier, along with the quality of products and services of national carriers. Interested in partnering with a thriving insurance carrier with superior customer experience? We are looking for select commercial-lines agencies in Wisconsin. Contact: Vicki Lentz 262-432-3420 vlentz@pnat.com
Contact: Clayton Zogata 715-383-5454 czogata@pnat.com
We help people feel secure and make life better when bad things happen
An Equal Employment Opportunity/Affirmative Action Employer ©2021 Penn National Insurance
Policies issued for domiciled businesses and individuals in Wisconsin and Iowa are underwritten under our affiliate, Partners Mutual Insurance Company.
• Strong financial performance and A.M. Best Financial Strength Rating of A• Expanded Commercial Lines products and services with competitive pricing and comprehensive coverages to help our agents grow profitably • Comprehensive Personal Lines product offerings, including Homeowners Equipment Breakdown and additional protection plans • State-of-the-art quoting, processing and self-service tools, making it easier and faster to meet your customers’ needs • Local, experienced underwriting, claims and management staff
HUMAN RESOURCES
THE GREAT RESIGNATION The Great Reimagination, The Great Reset, The Great Realization, The Great Attrition. All terms inspired by The Great Resignation. What is The Great Resignation about? Some workplace experts refer to this as the Great SelfEvaluation. “The Great Resignation has been fueled by workers taking a step back to consider their work and demand more from their work,” said Matt Hoffman, head of talent at M13, a technology venture capital firm in New York City. The pandemic has led to record breaking numbers of people resigning from their jobs. It’s not necessarily about “quitting the job”, it’s the desire to have a better work and personal life balance, increased mobility, and coaching culture are just a few of the factors people are leaving. This is leaving companies to navigate the ripple effects of the pandemic and reevaluate how to retain talent. How to move forward is the common question employers have. Listen to your employees. Now more than ever employees are stretched. Frequent “check-ins” are more crucial than ever. Receiving direct input on what is working and what their struggles might be will go a long way. Addressing their concerns and collectively creating a plan of how to move forward will demonstrate they are valued. “Listening to their employees with empathy and creating a positive healthy work environment is key to success” – Soumyasanto Sen, People Conscience. Career paths and development opportunities. Employees want to be challenged by their work and provided with more opportunities and responsibilities. Given the plethora of job openings, employees are exploring their options, which can even mean a career change. The desire for stronger career trajectories is greater than ever.
Finding ways to invest in training and development, offering additional responsibilities or even a new role within the organization are great ways to reward and recognize people for their work. Remote work is the new norm. The pandemic has proven remote employees are no longer the exception. The desire to have this flexibility has become an expectation for many employees. Working remote comes with many perks such as nonexistent commute times, better work and personal life balance and lower operation costs. Remote work also comes with challenges where employees feel isolated or even lost and less productive. To ensure that remote work is successful, consider these strategies. Outline the remote work expectations early on and often evaluating their needs. Organized and thoughtful meetings and ongoing communication methods are now more important than ever. Cultivate a coaching culture to ensure the needs of both the employer and employee are being met. This will build trust, motivate teams, maintain connections as if employees were still in-person. Transactional or relational? Increasing an employee’s compensation does not always fix the problem. Transactional does work temporarily but isn’t ideal for performance. It leaves employees with the feeling their needs are not being met or understood and diminishes morale overtime. Your top employees can always receive a better paycheck elsewhere. By better understanding an employee’s needs and investing in their success, you will slowly turn resignation into retention. While employees are taking the time to re-evaluate their priorities, employers should also do the same. Taking a step back to re-evaluate, listen and put forth what your employees want could be the best way to combat the Great Resignation.
> Diana Banaszynski Events & Education Coordinator, IIAW
wisconsin INDEPENDENT AGENT
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GOVERNMENT AFFAIRS
LEGISLATURE SHAPING UP TO LOOK MUCH DIFFERENT NEXT YEAR
The Wisconsin state legislature is shaping up to look considerably different next year due to a recent rash of legislative and leadership retirements ahead of the fall elections. A handful of incumbent retirements at the conclusion of every two-year session is nothing out of the ordinary, but the sheer volume of retirements this time around (22 in total at the moment), along with a few notable names, has been unexpected. Despite this, Republicans are expected to retain control of both chambers next year, but the caucuses will look much different when session kicks off next January. Many of the changes facing the Legislature are from retirements with one potential departing lawmaker resulting from a state senator being adversely carved out of his current senate district because of a newly drawn district arising from reapportionment. The Wisconsin Supreme Court is currently reviewing the new districts and will likely render its decision sometime in April. Every ten years states conduct a process known as redistricting where new legislative district boundaries are drawn based on updated U.S. Census data. 30 | APRIL 2022 |
wisconsin INDEPENDENT AGENT
There are also nine legislators that are leaving their current positions to run for higher office. In total, 13 Republicans and 9 Democrats are either retiring or running for another office, and there may be a few more announcements yet to come. What is most noticeable about the latest round of retirements is that there is an unusually large number of them that serve or have served in top leadership positions in their respective caucuses. For instance, Senate Democratic Minority Leader Janet Bewley announced that she is not running for reelection which will require Senate Democrats to choose a new leader. So far two front runners to replace her have emerged and both are from Madison - State Senators Melissa Agard and Kelda Roys, both recently elected to the Senate in 2020. Also of significance, Senate Democrats are losing a longtime notable colleague to retirement - State Senator Jon Erpenbach (D-Middleton) has served since 1998 and previously led the caucus both as its director and as Minority Leader.
Another longtime member of the Senate, Republican Jerry Petrowski (R-Marathon), also elected to the Legislature in 1998, is serving his final term before he steps down to return to private life. In the State Assembly, Majority Leader Jim Steineke (R-Kaukauna) who has served in the Assembly GOP leadership since 2013, announced he is leaving the Legislature for other opportunities. And State Representative Gordon Hintz (D-Oshkosh) stepped down as Assembly Democratic Minority Leader earlier this year only to reveal shortly afterwards that he would not run for reelection so he could spend more time with his family. Hintz’s stepping down triggered leadership elections this month of an entirely new, young and somewhat inexperienced slate of leaders in the Assembly Democratic caucus. The departure of many of these incumbent lawmakers certainly leaves a void of institutional knowledge and experience in the Legislature which could present challenges next session with ease of governance and certain policy making decisions. Time will tell. But in the meantime, get ready for a busy midterm election season as the campaigns gear up for the August primary and November general election. Here is a current listing of legislative retirements to date:
U.S. House of Representatives • District 3 - Ron Kind (D-Wisconsin) - Retiring
State Senate (7) • District 5 – Dale Kooyenga (R-Brookfield) Redistricted • District 15 – Janis Ringhand (D-Beloit) Retiring • District 25 – Janet Bewley (D-Mason) Retiring • District 27 – Jon Erpenbach (D-Middleton) Retiring • District 23 – Kathy Bernier (R-Chippewa Falls) - Retiring
• District 19 – Roger Roth (R-Appleton) Running for Lt. Governor • District 29 – Jerry Petrowski (R-Marathon) Retiring
State Assembly (15) • District 5 – Jim Steineke (R-Kaukauna) Retiring • District 6 – Gary Tauchen (R-Bonduel) Retiring • District 10 – David Bowen (D-Milwaukee) – Running for Lt. Governor • District 13 – Sara Rodriguez (D-Brookfield) – Running for Lt. Governor • District 31 – Amy Loudenbeck (R-Clinton) Running for Secretary of State • District 45 – Mark Spreitzer (D-Beloit) – Running for Senate • District 52 – Jeremy Thiesfeldt (R-Fond du Lac) - Retiring • District 54 – Gordon Hintz (D-Oshkosh) Retiring • District 55 – Rachel Cabral-Guevara (R-Appleton) – Running for Senate • District 59 – Tim Ramthun (R-Campbellsport) - Running for Governor • District 68 – Jesse James (R-Altoona) – Running for Senate • District 74 – Beth Meyers (D-Bayfield) Retiring • District 79 – Dianne Hesselbein (D-Middleton) - Running for Senate • District 82 - Ken Skowronski (R-Franklin) Retiring • District 84 – Mike Kuglitsch (R-New Berlin) Retiring
>M isha Lee IIAW Lobbyist
wisconsin INDEPENDENT AGENT
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AGENCY MANAGEMENT
THE PROBLEM WITH SILENCE In the midst of the most active M&A marketplace that our industry has ever experienced, often times there is still a cloud of secrecy that exists inside an agency about the agency’s future. That silence can often times lead to unintended and unfortunate outcomes especially in the case of talented and high performing staff members. Often times agency owners keep their plans and the plans that they have for their agency’s future to themselves. On one hand, this is understandable as some agency owners are uncertain about their plans. For those agency owners that do have an idea of what their future plans are, they may choose to keep that plan to themselves to either keep their options open or to avoid impacting their business in the form of lost accounts or carrier relationships. Many times, that silence can be detrimental to the agency. Buzz in the Industry Any person in our industry who is paying attention knows that the opportunity to sell at a high multiple has never been greater especially for well run, growing agencies that are over a million dollars in revenue a year. In some instances, the opportunity exists for smaller agencies. You can open any insurance magazine, look on social media or listen to industry podcasts and learn about agencies that have sold almost on a daily basis. In addition, there is a lot of buzz and conversations that occur about this activity and the impact it has on the staff and culture of agencies that have sold. 32 | APRIL 2022 |
wisconsin INDEPENDENT AGENT
This creates a level of uncertainty and concern for the staff that works in an agency that has an aging owner and the future plans are unknown, which describes the majority of agencies. How Do I Fit? When you combine silence with uncertainty, human behavior kicks in and causes many to form a story or prediction in their heads with the information that they have available to them. Some may start to ask more questions and if those questions go unanswered, they will look for signs, pay closer attention and fill in the gaps with the clues they see. An agency owner may interpret the questions as being nosey and avoid the question which may create even greater uncertainty. If viewed from the employee’s perspective, the agency owner will realize that the questions are being driven by the need to know what their future is and how the future of the agency may impact the employee directly. Understanding the generational differences goes a long way in understanding and interpreting these questions and anticipating the needs of your staff. For many, being a part of something is important and providing them with information that eases their minds and provides them with the reassurance that their environment is safe, predictable and provides them with ample opportunities is key. Silence accomplishes none of those things.
Unintended Consequences If you have a high performer, they may want to carve out a pathway to ownership inside the agency, or at a minimum have a level of comfort in knowing that the environment that they are thriving in will continue to exist for the foreseeable future. Silence does not bring them that comfort and the end result could include that star employee looking for opportunities elsewhere, especially if they believe that the agency may be at risk of being sold. In order to avoid this situation, agency owners can take the following steps: Build a Plan – Take the time to outline what would happen to the agency, staff and customers if something were to happen to you. Knowing that there is a plan in place will bring great comfort. Communicate – Once you have a plan outlined, do not keep it a secret.
Share the plan with key employees. You can protect the agency with confidentiality agreements and take other precautions, but keeping the plan to yourself does not give anyone any sense of comfort, but you. Create a Pathway to Ownership – For those owners that want to provide an incentive for their key employees to stay with the agency and participate in success and future ownership of the agency, invest in defining that pathway to ownership. For the agency owners that are uncertain of their future plans, at a minimum focus on putting a disaster plan in place to protect the agency and all of the people that depend upon that agency if something were to happen to you. For more information about planning for your agency, contact carey@agency-focus.com. > Carey Wallace, Business Consultant, AgencyFocus
Are you our next Agent Owner or AFFILIATE AGENCY? more markets. bigger return. proven success.
learn more: Chris Illman | cillman@robertsonryan.com | 800-258-0277 | www.robertsonryan.com/agentowner wisconsin INDEPENDENT AGENT
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COMMENTARY FROM COUNSEL
EMPLOYERS CLEARED TO CONSIDER DOMESTIC VIOLENCE CONVICTIONS IN HIRING AND RETENTION DECISIONS The Wisconsin Fair Employment Act generally prohibits an employer from discriminating against applicants or employees on the basis of their conviction record—but the rule is not absolute. The law also provides a meaningful, but sometimes ambiguous, exception: the “substantial relationship test,” which provides that “it is not employment discrimination because of conviction record . . . [if] the individual has been convicted of any felony, misdemeanor, or other offense the circumstances of which substantially relate to the circumstances of the particular job.” As you would expect, this exception has been heavily litigated, but the Wisconsin Supreme Court recently issued a decision providing employers more latitude in establishing a substantial relationship, this time involving domestic violence crimes. The decision—from a case called Cree, Inc. v. LIRC (Cree) could impact your agency and your clients’ hiring and employment practices and is worth review. In Cree the Court clarified how the substantial relationship defense to conviction record discrimination claims should be applied to crimes involving domestic violence: the substantial relationship test does not require an “exact identity” between the circumstances of the crime and job. The “public versus private, work versus home dichotomy” is no longer material. What matters are the traits revealed by the circumstances of a domestic violence conviction – such as the willingness to use violence against others, especially when one’s power or authority is threatened. In short, there may well be a substantial relationship between an applicant’s conviction and the job to which he or she applies even if the applicant’s crime took place in a domestic setting.
The Wisconsin Supreme Court (in a 4-3 decision) reasoned that domestic violence convictions should be analyzed in the same way the Court analyzes any other type of conviction—by comparing the circumstances that are material to fostering criminal activity. Doing so, the Court identified the following factors for consideration: • Whether there are opportunities in the workplace—based, for example, on a lack of supervision or physical setup—that would allow a domestic violence perpetrator to recidivate. • The character traits revealed by the elements of the crime of domestic violence. • Other relevant and readily ascertainable circumstances of the offense such as the seriousness and number of offenses, how recent the offense is, and whether it was a pattern of behavior. As you can see, an employer’s already factintensive process of analyzing a potential substantial relationship between a crime and the job at issue can be particularly complex, but the new guidance and broader discretion should favor employers who are concerned about potential workplace violence. Though the burden remains, at least employers can finally confidently apply the same substantial relationship analysis to applicants with convictions for domestic violence as they would otherwise apply to applicants with convictions for other violent crimes. Of course, if in doubt (or simply as good risk management), if your agency or a client believes an applicant’s conviction record may be prohibitive to employment because of a substantial relationship, consult with legal counsel.
>J osh Johanningmeier IIAW General Counsel
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wisconsin wisconsin INDEPENDENT AGENT AGENT INDEPENDENT
Commercial | Personal | Farm-Ag | Specialty
Josh P. Specialty Lines Underwriter
Erin P. Commercial Lines Underwriter
Lisa P. Wisconsin Sales Manager
Honest relationships SECURA’s team of insurance experts is making insurance genuine. They are here to support you and your clients. Our underwriting teams are quick to reply, open-minded, and know their stuff. Plus they are backed by our caring claims group who will get your clients back on their feet.
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PRSRT STD US POSTAGE PAID MADISON WI PERMIT NO. 549
