wisconsin INDEPENDENT AGENT DECEMBER 2021
Happy Holidays!
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CONTENTS
wisconsin INDEPENDENT AGENT
COVER STORY: Happy Holidays! The IIAW would like to extend all of our members a very Happy Holidays! In this month’s Insurance Bartender article, Matt tells the tale of The Great War’s Christmas Truce and how we can apply what’s learned from this truce in 2022.
PAGES:
8-9
INSURANCE BARTENDER..........................................................8-9
Good Will Toward Men (And Women): The Great War’s Christmas Truce and What We Can Learn From it Today
PERSONAL LINES............................................................................12-13 4 Ways to Help Home Buyers Understand Specialty Coverage
AGENCY OPERATIONS................................................................14 Hiring the Best and Brightest - Even During a Talent Shortage
COMMERCIAL LINES.....................................................................17-18
Major Coverage Enhancements Coming to the ISO Businessowners Program
PRESS RELEASE................................................................................21
SECURA Insurance Announces Upcoming Retirement of Dave Gross, Succession of Garth Wicinsky as President & CEO
AGENCY MANAGEMENT.............................................................24-25 I Know My Agency’s Value - Now What?
MEMBERS IN THE NEWS..............................................................26-29 GOVERNMENT AFFAIRS.............................................................30-31 Early Poll Reveals Sour Electorate and Headwinds for Incumbents
SALES....................................................................................................32-33 Client Expectations Grow for Insurance Agents
FOOD FOR THOUGHT....................................................................35
ADVERTISERS INDEX AAA......................................................................25 Ansay & Associates........................................7 Badger Mutual Insurance............................35 Berkshire Hathaway GUARD....................19 Erickson Larsen...............................................35 IMT........................................................................36 Penn National...................................................15 Robertson Ryan & Associates..................13 UFG.......................................................................2 Vizance................................................................11 West Bend.........................................................16 Western National...........................................22
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 Mallory Cornell | Vice President and Director of Risk Management 608.210.2975 • mallory@iiaw.com Kim Kramp | Association and Agency Accounting Manager 608.210.2976 • kim@iiaw.com Trisha Ours | Director of Insurance Services 608.210.2973 • trisha@iiaw.com Evan Leitch | Agency Solutions Advisor 608.210.2971 • evan@iiaw.com Kaylyn Staudt | Marketing and Communications Coordinator 608.210.2977 • kaylyn@iiaw.com Jeff Thiel | Director of Agency Success 608.256.4429 • jeff@iiaw.com Ian Tisonik | Agency Solutions Coordinator 608.256.4429 • ian@iiaw.com Andrea Michelz | Membership Engagement Coordinator 608.210.2972 • andrea@iiaw.com Diana Banaszynski | Education 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. © 2021 For information on advertising, contact Kaylyn Staudt, 608.210.2977 or kaylyn@iiaw.com.
wisconsin INDEPENDENT AGENT
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YOU & INTEGRITY: COMMITTED. CONNECTED. PARTNERS.
Clear appetite. Upfront underwriting. Fast quoting. We offer the stability of a national carrier with the personal touch of a small business. Get to know Integrity Insurance and join the team: integrityinsurance.com
Policies are underwritten by Integrity Insurance Company, and its subsidiaries, and Grange Insurance Company, and its subsidiaries. Policies written in Pennsylvania are underwritten by Trustgard Insurance Company and Grange Insurance Company. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED. 21-436_GRA0356
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Company Spotlight Integrity Insurance With a long history of supporting independent agents, an “A” rating from A.M. Best and a customizable lineup of home, auto, life and business insurance, Integrity Insurance offers the stability of a large insurance carrier and the personalized service of a small business. Integrity builds productive, unique relationships with our agents and combines that with a focus on Ease of Doing Business® that gives our agents the best chance to succeed. Proud Partners with Grange Insurance Integrity’s partnership with Grange Insurance is more than two decades strong. The relationship gives Integrity access to modern insurance products and services that create a better experience for customers and agents. Together we serve 700,000 policyholders in 13 states throughout the Midwest and Southeast, are rated “A” (Excellent) by A.M. Best, have more than $3 billion in assets and are on Ward’s 50® list of top-performing insurance companies. Commercial Lines Integrity offers our agents a crystal-clear appetite that covers more than 1,700 classes and a wide variety of commercial products including Businessowner’s Policy (BOP), Commercial Package, Worker’s Comp, Commercial Umbrella and Commercial Auto.
Committed. Connected. Partners.
Integrity also provides coverages such as, Cyber and Employment Practices and Liability Insurance and Equipment Breakdown Coverage that’s crucial for your clients in the modern workplace. Our commitment to providing the best to our agent partners includes services and policies that are true differentiators. Our 36-Month Package Policy offers rate stability for your clients. Our Commercial Service Center takes care of the little things so you can grow your business. Our Risk Management Consulting team gives businesses of any size a partner to help identify issues and develop solutions. Personal Lines Integrity Personal Lines offers a full suite of customizable Home and Auto products that can help agents meet the needs of any client. Additional coverages such as ID Theft, Cyber, Umbrella and Underground Service Line give your clients the peace of mind and protection they expect from their insurance. OnTrack, our usage-based auto insurance app, can help your clients earn a discount with their safe driving.
A Digital World Integrity policyholders and agents have access to the latest developments in technology. Policyholders can access their billing and policy documents from any desktop or mobile device with our Integrity Insurance app or a MyIntegrity online account. Policyholders can also pay their bills via EFT (Electronic Funds Transfer) and receive claims payments via electronic claims payment. Integrity also has self-service options for policyholders such as our DIY Home Inspection tool and our Easy Snap for minor auto claims. For nearly 90 years Integrity Insurance has been Committed, Connected, Partners for its independent agents as a stable, supportive presence for their business. For more information about Integrity, visit integrityinsurance.com. Contact: Cathy Colón District Sales Manager (920) 968-9326 ccolon@imico.com
Life Backed by Kansas City Life, Integrity agents can offer their policyholders a variety of life insurance and financial products including Term Life, Whole Life and Annuities. Visit kclife.com for more information. wisconsin INDEPENDENT AGENT
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wisconsin INDEPENDENT AGENT
ONE OF OURS
SUPPORTING ONE OF OURS In September 2021, the IIAW learned that “One of Ours” had been diagnosed with breast cancer. The news hit hard as Trisha Ours explained her treatment plan and we discussed how we could support her. We turned to our members for help in letting her know she would never have to fight this battle alone. Through generous financial donations, we’ve raised over $1,200 for metastatic breast cancer research and to help support the Ours family. In our October Wisconsin Independent Agent magazine, you learned how breast cancer has also affected Matt Banaszynski and Mallory Cornell personally. We know many of you could also share your story which is why we will continue to advocate for
early detection and support breast cancer researchers in finding a cure. A special thank you to everyone who showed their support for Trisha by reaching out to her directly, donating to our group causes or purchasing a t-shirt to let her know #TrishaStrong is here for the long haul. During this holiday season, let us all be grateful for those who are with us and remember those who are not. We are so fortunate to be part of this community of independent agencies and supporting carriers, and we should all remember to show grace to those around us.
Take Your Business to New Heights. Going into business was a big decision. Succession planning—your next business decision—can be even bigger. A partnership with Ansay & Associates can transition that decision by joining a group of like-minded leaders committed to measuring performance for accountability and growth. Family-owned and committed to your success for over 75 years, we cultivate insurance carrier options and design insurance solutions that last well beyond the initial merger.
PARTNERSHIP.ANSAY.COM | 888.262.6729 wisconsin INDEPENDENT AGENT
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INSURANCE BARTENDER
GOOD WILL TOWARD MEN (AND WOMEN): THE GREAT WAR’S CHRISTMAS TRUCE AND WHAT WE CAN LEARN FROM IT TODAY The following was printed in part from the Library of Congress’ blog post titled, “Good Will Toward Men: The Great War’s Christmas Truce by Malea Walker, December 22, 2020
The fighting in Europe had been growing for almost five months when Pope Benedict tried to arrange a truce between nations in early December 1914 for Christmas. But his efforts failed when Russia declined the truce. The notorious trenches of World War I were filled with weary, cold soldiers. Along the British and German lines, a sudden rise of the Christmas Spirit among the soldiers created a phenomenon that wasn’t seen throughout the rest of the war— the soldiers decided not to fight on Christmas. Stories of this unofficial Christmas Truce were published in newspapers around the world.*
The Chicago Herald printed part of a letter from a British soldier describing what took place. “On Christmas eve we were shouting across ‘Merry Christmas!’ The Germans shouted, ‘Don’t shoot till New Year’s Day!’ Christmas morning the weather was foggy, and there was no firing. We started wandering over toward the German lines. 8 | DECEMBER 2021 |
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When the mist cleared, we saw the Germans doing the same thing.” Climbing from their trenches onto the battlescarred “no man’s land,” British and German soldiers shook hands, swapped cigarettes and jokes, and even played football. “We all have wives and children…we’re just the same kind of men as you are,” one German said. Gifts were exchanged between soldiers: pies, wine, cigars and cigarettes, chocolates, pictures, newspapers. Whatever they had with them in the trenches. Some even exchanged names and addresses to reconnect after the war! “We exchanged souvenirs; I got a German ribbon and photo of the Crown Prince of Bavaria. The Germans opposite us were awfully decent fellows—Saxons, intelligent, respectable-looking men. I had quite a decent talk with three or four and have two names and addresses in my notebook.” (New York Times, December 31, 1914, World War History: Newspaper Clippings 1914 to 1926.) The day would be remembered and memorialized as a moment of peace during the long First World War. A day when soldiers put aside their orders and listened instead to their common decency and humanity. As one German soldier noted, “you are the same religion as we, and today is the day of peace.”
While this historic event took place more than 100 years ago, there is much we can learn from this wonderful moment during a terrible time in our history. While we are not currently at war with one another, today’s political and COVID environment is further dividing our nation, state and community. It’s fueling a fire that’s ripping through the heart of our nation, leaving confusion and despair in its wake. We’re currently living in an environment where individuals are demonized for following their own personal beliefs. No matter what side you are on, there seems to be such a visceral reaction to the opposing view these days. It’s troubling that a country founded upon diversity, freedom and acceptance has found itself where it is today. But I have hope!
This holiday season, I would encourage everyone to put aside their differences, respect one another and find peace and acceptance. If German and British soldiers engaged in war and killing one could do so, then surely, we can do the same. I would challenge each of us to take this lesson beyond the Christmas season and make it a resolution for 2022. Be kind, respect and accept that others have different views and opinions - that’s what makes this country of ours so great. Be less divisive and more inclusive. I like to think that the perseverance our country exhibited during challenging times helped to shape the spirit America has embodied since its founding. One day, those that come after us, will look back on this period in our history and either criticize us for how we treated one another or a applaud us for how we pulled through during such a trying and troubling time. Let’s not forget that our actions as a nation today will determine our success in the future. Wishing you a Merry Christmas and prosperous 2022!
The German and the British in 1914 shared many of the same beliefs, yet during this fleeting moment of peace, they put aside their differences to pay tribute and celebrate the true meaning of Christmas.
Jack Frost
> Matt Banaszynski, CEO, IIAW
Matt’s Mixology
If you’re looking for summer in the midst of winter, there’s one delicious way to cure those blues away: Whip up a Jack Frost winter cocktail. It’s like a festive version of a classic piña colada, only with a festive blue color and tasty shredded coconut along the rim.
Ingredients
Directions
• 2 ounces coconut rum or vodka - live a little, use the rum • 2 ounces blue curacao • 2 ounces cream of coconut (not coconut cream) • 4 ounces pineapple juice • 2-3 cups of ice • Coconut (shredded - for glass rim) • Simple syrup (for glass rim)
1. Take your finger and put some simple syrup on it. Run your finger along the rims of the glasses. Pour some coconut flakes on a plate and dip your glasses in the coconut. 2. Add rum, blue curacao, cream of coconut and pineapple juice into a blender. 3. Add 2-3 cups of ice, cap blender and blend until thick and smooth. 4. Pour into glasses, sip & enjoy! Photo and Recipe Courtesy of Homemade Hooplah wisconsin INDEPENDENT AGENT
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SAVE THE DATE MAY 9-10, 2022 KALAHARI RESORTS, WISCONSIN DELLS REGISTRATION & DETAILS:
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PERSONAL LINES
4 WAYS TO HELP HOME BUYERS UNDERSTAND SPECIALTY COVERAGE In this historic home buying market, it can be easy for buyers to get overwhelmed or miss vital steps in the buying process. As an insurance agent, you can help buyers stay on track by educating them on topics such as the insurance impact of a home inspection and weather or resiliency risks for a potential property. Buyers will be focused on putting together a competitive offer, not on the potential need or cost of specialty insurance. However, it’s important to also help buyers understand whether the property they are interested in buying requires specialty coverage prior to purchase. When you talk with buyers to determine what type of coverage they need for their home, discuss the factors that go into calculating the possible rate. It is also important to discuss how variables, such as the type of home or intended property use, could impact the need for specialty coverage. Here are four other ways that agents can help buyers understand different types of specialty coverages for their new home: 1) Discuss how planned occupancy impacts coverage. Buyers are focused on trying to secure the home of their dreams in an extremely competitive housing market, which could take their focus away from what coverage the property requires. Begin by explaining how the planned home occupancy can impact what coverage the buyers will need. For example, if the home will be their primary residence, buyers will probably be eligible for a traditional homeowners policy, which would cover the home structure, personal belongings and more. However, if the buyers plan to rent the home, they need to consider other options, such as a dwelling fire policy. You can also educate buyers on 12 | DECEMBER 2021 |
wisconsin INDEPENDENT AGENT
additional coverages like temporary or occasional rental coverage, as well as topics like liability limits and medical payment coverage. This coverage could help protect owners if renters are injured during their stay. Also, discuss whether the buyers plan to list the property as a rental on platforms like Airbnb because there are often challenges in securing short-term rental coverage for the property. While it’s more difficult to secure short-term rental coverage for these kinds of properties because of the high traffic rate of renters compared to renting a home for a longer term to one party, it may be available as specialty coverage. 2) Review the different types of homeowners coverage. Buyers may overlook things that could impact their eligibility for standard homeowners coverage. Explain what factors go into determining coverage, such as the location of the home, age of the roof, whether or not there is a pool, and other conditions that influence price, coverage type and coverage amount. Some of these factors, such as age, location, or claims concerns, could require specialty coverage. Insurance agents know there are different types of homeowners coverage that can cover dwelling and personal belongings as well as different home types—but buyers might not think of that. Buyers might not know that there are different types of homeowners coverage for condos, manufactured, mobile and single-family homes. Also, ask buyers if they are planning any renovations. If so, you can explain how the value change can be contemplated in the replacement cost calculation for homeowners insurance.
3) Explain what specialty coverage is needed for renovations or a vacancy. Speaking of renovations, buyers may not be aware of how renovations could impact their insurance. If the buyers are planning to renovate the property, you can educate them on the differences between a builders risk policy and a vacant remodel policy. A builders risk policy will generally protect groundup or new construction and building materials that are stored or in transit to the property. However, a builders risk policy will typically only apply to projects that take longer than six months to complete. Planned vacancies are another component they should be aware of. Walk the buyers through the particular risks and different types of coverage for vacant properties, which will generally differ from a typical homeowners policy. In fact, standard homeowners policies generally don’t cover a property that has been vacant for more than 60 days. A vacant remodel policy offers coverage for any remodeling or cosmetic project done at the home. This type of coverage is an alternative insurance option if the renovation will be completed in 30 days to six months.
Similarly, a vacant or unoccupied policy will cover the property while it remains vacant. 4) Keep communication lines open. Establishing and maintaining an open line of communication with home buyers is critical and can help relieve their stress. You can keep the line of communication going by scheduling a biannual insurance review, by sharing relevant insurance content with the buyers on social media, or simply checking in on them with a brief phone call or email. While the home buying process is stressful, buyers are lucky that they have you as a trusted insurance agent who can provide guidance, tactical tips and timely support during and after the home buying process. As is the case with any strong relationship, communication is key. Buyers need more than just insurance coverage, they need your expertise and dedication to help ensure they’re insured for the long run.
>S ally Kressin
Vice President of Product Management, American Modern Insurance Gropu Inc.
wisconsin INDEPENDENT AGENT
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AGENCY OPERATIONS
HIRING THE BEST AND BRIGHTEST EVEN DURING A TALENT SHORTAGE It’s no secret that there’s a talent shortage in the United States right now. A ManpowerGroup survey found that 69% of employers were struggling to fill positions in 2020, up from just 14% in 2010. Nearly three out of four companies are having trouble attracting workers, while more than 60% are having a hard time retaining them, according to a recent study of employers by Willis Towers Watson. These companies reported that they expected these challenges to persist in 2022. This isn’t surprising. The labor market is currently undergoing what US News & World Report described as a “seismic shift,” the likes of which we’ve never seen before: “A complex stew of trends — reflecting the country’s changing demographics, governmental policies, technological change and a reevaluation of the contract between employer and worker — has brought about the tightest labor market of modern times. And, it is not likely to get better any time soon.” So what does this mean? In my opinion, it means corporations will need to rethink the way they’ve always done things and open themselves up to getting creative. Gone are the days of status quo. They’ll need out-of-the-box thinking and policies in order to attract and keep their best workers. For example, many respondents to the Willis Towers Watson said they would be raising their salary increase budgets for next year (30%), raising starting salaries (43%), and giving larger raises (49%). But many also said they would be 14 | DECEMBER 2021 |
wisconsin INDEPENDENT AGENT
working to improve the employee experience (39%), increase workplace flexibility (33%), and make changes to health and well-being benefits (36%). These are a great start. I’d suggest companies also look beyond their “typical” talent pool— considering workers of all ages, in all locations, which they can now do thanks to technology and the flexibility that remote work affords—as well as offer apprenticeship and mentorship opportunities, which offer numerous benefits to both employee and employer. The employees gain valuable career advice and insight, and the employer preserves the transfer of knowledge that’s so important for growth and innovation. At WAHVE, we’ve always understood the value of these benefits. They’re baked right into our business model. That’s why we’re busier than ever—our wahves know that they’ll get flexible work arrangements and better work-life balance, which keeps them engaged and happy; and employers can count on booking high-caliber talent from all over the country, thanks to our vast network of highly qualified individuals who are screened using our blind hiring questionnaire. What are some ways your company is revamping its recruiting and engagement strategies to ensure it enlists top-quality workers in the year ahead?
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-oriented agencies in Wisconsin. Contact: Vicki Lentz 262-432-3420 vlentz@pnat.com
Clayton Zogata 262.432-3422 czogata@pnat.com
• Strong financial performance and A.M. Best Financial Strength Rating of A• Expanded Commercial Lines product 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 is easier and faster to meet your customers’ needs. • Local experienced underwriting, claims and management staff
An Equal Employment Opportunity/Affirmative Action Employer ©2020 Penn National Insurance
Policies issued for domiciled businesses and individuals in Wisconsin and Iowa are underwritten under our affiliate, Partners Mutual Insurance Company. wisconsin INDEPENDENT AGENT
| DECEMBER 2021 | 15
WEST BEND THE BEST REMEDY FOR WORKERS’ COMPENSATION West Bend Mutual Insurance has a long history of writing workers’ compensation insurance. Our underwriters are knowledgeable and experienced. Our loss control reps have the expertise and tools to help keep employees safe. And our claims practices are the best in class. From Main Street-type businesses to specialty businesses like childcare, West Bend has the experience and expertise to protect businesses of many kinds and many sizes. We want to write all of your workers’ compensation business, small to large! When you select West Bend for your valued customers, you can rest assured you made the right choice. After all, we are the best remedy for workers’ compensation.
COMMERCIAL LINES
MAJOR COVERAGE ENHANCEMENTS COMING TO THE ISO BUSINESSOWNERS PROGRAM After taking a sharp hit at the start of the pandemic, small business formation has rebounded, giving insurers an opportunity to target new customers. The ISO Businessowners program was developed to help insurers support just such small-tomedium-sized enterprises. As part of the most significant update to the ISO Businessowners program since its inception, we’re introducing nearly 60 new, optional endorsements, revisions to dozens more, and updates to the base form. These updates will provide added flexibility during underwriting and help insurers address some of the new and emerging risk exposures that confront today’s businesses. A strong base Among the several changes we’re making to the base businessowners coverage form is a tenfold increase in the coverage radius for the insured’s business personal property (now 1,000 feet). This could also be particularly appealing to restaurant risks that expanded outdoor seating into parking lots and sidewalks during the pandemic—an expansion that may endure after the public health crisis abates. To allow for more flexibility, we’re providing the ability to increase the $10,000 limit applicable to the Personal Property Off Premises Coverage Extension.
In response to the ever-increasing threat of ransomware, and to reinforce that coverage for those attacks is more appropriately provided under dedicated cyber coverage, such as the ISO Information Security Protection Endorsement (BP 15 07) or a standalone cyber policy, we’re specifically excluding ransomware under the Electronic Data and Interruption of Computer Operations Additional Coverages. Additional enhancements have been made that generally track with updates to other ISO Insurance Policy Programs including our general liability, commercial property, and crime programs. Endorsements aplenty To help insurers tailor their coverages to fit the unique exposures or needs of their insureds, we’re introducing 57 new, optional endorsements. Here’s just a few of the highlights: Unmanned Aircraft: Drone usage for commercial purposes is expected to soar over the next several years. We’re introducing an endorsement to provide limited property coverage (including business interruption coverage) for drones on either a scheduled or blanket basis. Coverage will apply on or off the insured’s premises. The coverage provided via this endorsement will not apply to certain exposures including drone delivery, drone racing, drone rentals, or mechanical breakdowns. wisconsin INDEPENDENT AGENT
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An additional endorsement is available to extend drone property coverage worldwide (with some exceptions). Companion rules and advisory prospective loss costs will also be introduced. Cannabis: To help insurers fine-tune their approach to the growing cannabis market, the ISO Businessowners program will offer several new property and liability coverage endorsements as well as several exclusions. A cannabis property coverage endorsement will address cannabis stock and include business income and extra expense coverage. For cannabis liability exposures, we’re adding options that generally allow insurers to place a sub-limit on either cannabis activity as a whole or hemp specifically. Other endorsements will provide the flexibility to limit coverage for cannabis exposures that fall under the definition of products/completed operations. Abuse or molestation: There can be several types of abuse, including sexual abuse, elder abuse, and other types of physical and/or psychological abuse. Civil actions seeking recovery of damages for sexual abuse against institutions, organizations, and private or public firms could have an increasing impact on liability insurers. To provide insurers with additional underwriting tools, we’re introducing new exclusions and coverage options to address liability risk exposures from actual, alleged, or threatened abuse or molestation. Auto service risks: By adding the auto service risks endorsement to the ISO Businessowners policy, insurers will be able to address property exposures (including employees’ tools, loss or damage to customer’s property and loss or damage to lessor’s property) and liability associated with various, newly eligible, auto services classifications. Additionally, we’ll offer rules and advisory loss costs to address the unique exposures in this industry class.
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Additional insureds: Ten new endorsements will let insurers extend coverage to additional insureds beyond the primary policyholder. These endorsements will encompass several business risks, including vendors, executors, and contractors, among others. More support for international risks: The supplychain bottlenecks of recent months have served as a salutary reminder of how many businesses rely on international trade. For insureds with international property exposures, we’re adding four new, optional endorsements that generally provide limited property, business income, and extra expense coverage under the businessowners program—including for property in transit between an international and domestic destination. Emerging issues: Several new endorsements will provide greater underwriting flexibility when addressing emerging exposures related to electronic cigarettes (both manufacturing and health hazards), genetically modified organisms, and sport or athletic events (both sponsored and nonsponsored). Coming soon We currently plan to file the new base form and endorsements in the first quarter of 2022 with an 18-month lead time. To learn more about all the upcoming coverage enhancements for the ISO Businessowners program, please email Sara.Strohm@Verisk.com.
> Sara Strohm and Gregory Palumbo Verisk
AmGUARD • EastGUARD • NorGUARD • WestGUARD
HAPPY
Thank you for your business & Happy New Year. Commercial Lines | Personal Lines See state availability at www.guard.com
APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY/
wisconsin INDEPENDENT AGENT
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2021 Emerging Leaders Fundraiser The IIAW Emerging Leaders annual fundraiser is back to support the Child Life Department at the American Family Children's Hospital. Last year, we surpassed our initial $500 goal, donating an incredible total of $5,725! This year, we are again accepting monetary donations or you can donate items to the hospital from their 2021 Holiday Season Registry, which ships directly from Amazon to American Family Children's Hospital. Donate: https://bit.ly/ELDonation2021 Registry: https://bit.ly/AFCHregistry This fundraiser will run through December 22, 2021.
PRESS RELEASE
SECURA INSURANCE ANNOUNCES UPCOMING RETIREMENT OF DAVE GROSS, SUCCESSION OF GARTH WICINSKY AS PRESIDENT & CEO Dave Gross
Garth Wicinsky
RA President & CEO
RA SVP and Chief Administrative Officer
Neenah, Wis. (Nov. 11, 2021) – The SECURA Insurance Board of Directors announced the upcoming retirement of President & CEO Dave Gross in fall 2022. SECURA SVP and Chief Administrative Officer Garth Wicinsky was named as his successor. Wicinsky will become Chief Operating Officer on Jan. 3, 2022, and will transition to the role of President & CEO effective April 26, 2022. Dave Gross’s career spans more than 40 years in the insurance industry in executive leadership roles where he contributed strategically, and led sales and underwriting operations. Since joining SECURA in 1997, Gross helped shape the people-focused culture, fostering exceptional service to agents and policyholders. His emphasis on building strong relationships has been key to his accomplishments and those of the company. He successfully guided new product development, state expansion, and agency partnerships, ultimately helping profitably grow the carrier to more than $800 million in direct written premium. Under his leadership, the company grew policyholders’ surplus to more than $576 million, maintained an A.M. Best rating of A (Excellent), and earned a place on Ward’s Top 50 carriers for the last eight consecutive years. Gross also placed a heavy focus on workplace culture and wellbeing, working to create a sense of belonging for all associates. That genuine culture led to numerous workplace awards under Gross’s leadership, including six consecutive years of Great Place to Work certification, the WELCOA Platinum award, and others. “Dave took a thriving company culture and brought it to the next level, creating a remarkable workplace where empathy toward associates and customers was the top priority,” said Dan Neufelder, SECURA Board Chair. “He embodies the genuine culture of SECURA, and we are grateful for the years of leadership he dedicated to building relationships and serving agents and policyholders.” Neufelder led the process to identify Gross’s successor with the rest of the Board of Directors and an outside firm, ultimately selecting Garth Wicinsky as the company’s next leader. Wicinsky joined SECURA’s Human Resources division in 1996 and was promoted to Vice President–Human
Resources in 2002, responsible for talent management, compensation and benefits, learning and development, facilities, purchasing, and distribution. With his promotion to SVP and Chief Administrative Officer in 2017, in addition to his HR leadership function, he also oversees Marketing, Research & Development, and Agency Training. Wicinsky earned a bachelor’s degree in business administration from the University of Wisconsin–La Crosse and an MBA from the University of Wisconsin–Oshkosh. He serves on the board of directors at Verve, a Credit Union and United Way Fox Cities. “Garth’s strategic mindset, focus on talent development and associate engagement, and drive to achieve results position him well to continue leading SECURA forward,” said Dan Neufelder, SECURA Board Chair. “He’s lived the genuine culture for 25 years, and his passion for perpetuating that workplace engagement and outstanding service to our customers will lead to another exceptional chapter at SECURA.” Gross and Wicinsky will work together closely throughout the interim period starting in January to ensure a smooth transition for the company’s associates, agency partners, and policyholders. Wicinsky will become President & CEO effective April 26, 2022. At that time, Gross will become the CEO Emeritus and Senior Executive Advisor until his retirement in September 2022. In this role, Gross will support Wicinsky to continue the success of SECURA. Gross will also continue to serve on the SECURA Board of Directors until the end of his board term in April 2023. ABOUT SECURA INSURANCE SECURA Insurance, headquartered in Neenah, Wis., is a regional group of property-casualty insurance companies operating in 13 states. Approximately 550 independent insurance agents represent the group, which provides a broad range of competitive commercial, personal, farm, nonprofit, and special events products. SECURA Insurance is known for providing exceptional service to its agents and policyholders since 1900, and is rated A (Excellent) by A.M. Best for its excellent ability to meet policyholder obligations. It is a Ward’s Top 50 company for outstanding results in financial performance and consistency over a fiveyear period, and it is a certified Great Place to Work. Visit www.secura.net to learn more. wisconsin INDEPENDENT AGENT
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YOUR CLIENT LOOKS PRETTY CONFIDENT.
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Contracts Agents Should Read
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E&O - Commercial Property Coverage Gaps & How to Fill Them
12/20
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E&O - Roadmap to Homeowners Insurance
12/21
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The Guy in the Bar Returns
12/27
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Agency Management Based E&O and Ethics
12/28
8AM-9AM
Setting Business Income Limits: It’s Easier Than You Think!
12/28
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Understanding the Largest Government Benefits: Social Security
DECEMBER
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Commercial Lines Claims That Cause Problems
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Contracts Agents Should Read
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Embracing Directors & Officers Liability Insurance
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1/5
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1/6
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Personal Lines Issues That Keep You Up at Night
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E&O Roadmap to Homeowners Insurance
1/10
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Ethics in the Insurance Industry
1/11
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Those Kids and Their Cars
1/12
12PM-2PM
Business Auto Claims That Cause Problems
1/13
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Coverage Disputes Between Thompson & Boggs, You Be the Judge
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SEE OUR FULL COURSE SCHEDULE AND REGISTER FOR THESE CLASSES AT IIAW.COM/EDUCATION wisconsin INDEPENDENT AGENT
| DECEMBER 2021 | 23
AGENCY MANAGEMENT
I KNOW MY AGENCY’S VALUE - NOW WHAT? In many cases agency owners wait far too long to learn the value of their agency. This delay is due to many factors including time, cost, fear, and the worst of all – they really don’t think that they need to know. The reality is knowing the value of your agency goes way beyond knowing just a number, it reveals several opportunities for agency owners to work on their business, not just in their business. Over the past 8 months, I have completed over 50 agency valuations, here are the most common actions that agency owners take once they learn what is driving the value of their agency and realize that they have the opportunity and power to maximize it. 5. Re-evaluate your Carrier Strategy Concentration with one carrier creates risk inside an agency. If an agency’s lead carrier changes their compensation, appetite, or rates the impact to an agency can be significant. Many agency owners take a closer look at their carrier strategy as a result of going through the valuation process and explore alternative options. In addition, those agencies that are spread too thin across many carriers explore implementing a strategy to maximize their carrier relationships by focusing on areas that will allow them to place business with key carriers and put themselves in a position to be eligible for contingency. By focusing on a carrier strategy, and agency owner can reduce their risk over time as well as relieve some pressure on their staff who may be struggling to keep up with too many carriers. 4. Put Producer and Employee Contracts in Place 24 | DECEMBER 2021 |
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Having a high concentration of your book with a single producer or account manager creates risk. There is even more risk when there is not contract in place with that employee. Agency owners that work to put in producer and employee contracts that define and protect trade secrets and also include non-compete and non-piracy language can mitigate their risk in this area. While the risk of losing business when a person leaves your agency still exists, these contracts if written appropriately can give the agency some recourse and also prevent an employee from attempting to take their customers with them just by making clear what the cost of this action would be. Any agreements that are put in place after the employee after the hire date will require consideration for executing the agreement. 3. Compensation Plans The largest controllable expense inside an agency is payroll. An agency’s staff is their most valuable asset and their biggest expense. Depending on the size of your agency, compensation and benefits will use over half of the agency’s resources. Understandably, this is an area that is most often adjusted in the valuation process. Many times, compensation plans are not tied to agency production causing the compensation to become out of proportion. It is difficult for an agency to invest in marketing, technology or additional staff when their current compensation plans are not healthy. Working to implement compensation changes requires time, great communication and a clearly defined pathway to success to do it correctly.
2. Reallocating Resources Part of the valuation process includes creating a pro forma financial statement that takes into consideration what the standard industry benchmarks are for main categories of expenses inside an agency. An agency owner that is not familiar with these benchmarks is able to easily see the areas where they are both over and under allocating resources. This is an incredibly valuable exercise and can uncover opportunities of where reallocations can be considered to invest in the areas that will drive growth and/or efficiency n the agency. 1. Document a Perpetuation Plan The number one action taken by an agency owner after going through the valuation process is documenting a perpetuation plan or putting a buy-sell agreement in place.
Not having a plan for your agency is the number one risk especially for agencies that have a single owner past the age of retirement. Taking steps to formalize and document how the agency will be operated or sold should something happen to the current owner will minimize the risk and uncertainty that exists when a sudden life event occurs. Far too often, when an agency does not have a documented plan or agreement in place, confusion creates a delay and the agency is at risk of losing business while a plan is figured out, causing the agency value to decline. While it’s impossible to eliminate all risk inside an agency, those that the time to understand the factors that are impacting the value of their agency have the power to take action and maximize their agency value. For more information visit www.agency-focus.com. > Carey Wallace, Business Consultant, AgencyFocus
To become an Independent Agent with AAA George Maglares (847) 867-6099 GSMaglares@acg.aaa.com
wisconsin INDEPENDENT AGENT
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WEST BEND HONORED AS A NATIONAL BEST COMPANY AND WORKPLACE
West Bend, WI (10/25/31) - West Bend Mutual Insurance Company was recently honored with several best company/best workplace honors from national organizations. America’s Best Insurance Companies 2022 In its inaugural edition of this national award list, West Bend was recognized by Forbes as one of America’s Best Insurance Companies 2022! This recognition was created through a survey of 16,000 U.S. consumers who provided recommendations for insurance products in seven categories: Auto, Homeowners, Renters, Pet, Term Life, Permanent Life, and Dental. Consumers were asked about their overall satisfaction with their insurance products and their willingness to recommend them to others. Forbes also assessed the quality of the company’s customer service, financial advice, price/performance ratio, transparency, and damage/benefit ratio. Of the thousands of companies eligible for this recognition, West Bend is one of only 90 to make this list. America’s Best-In-State Employers The company was named one of America’s BestIn-State Employers in 2021 by Forbes and market research company Statista. After compiling anonymous survey responses from 80,000 Americans working for companies with at least 500 employees, the final list of 1,330 employers was divided into 51 rankings, one for each state and the District of Columbia. West Bend ranked ninth and was the highest-ranked insurance company on the list of 75 Wisconsin employers. America’s Best Employers for Women Forbes and market research company Statista named West Bend one of America’s Best Employers for Women in 2021. West Bend was a top-10 company in the insurance industry. The 300 companies included on the list were chosen based on an independent 26 | DECEMBER 2021 |
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survey of 50,000 employees currently employed at companies with at least 1,000 workers in their U.S. operations. The survey sought opinions from all respondents on general work topics like working conditions and development opportunities. It also asked women to rate their own employers on topics especially relevant to women, such as parental leave, flexibility, discrimination, and pay equity. Best Workplaces for Millennials™ Fortune and Great Place to Work® recognized West Bend as one of che Best Workplaces for Millennials in 2021. Inclusion on the list was based on anonymous survey feedback to more than 60 questions. Eightyfive percent of the award evaluation was based on what millennials say about their experiences of trust and reaching their full human potential as part of their organization, no matter who they are or what they do.
BIZTIMES MILWAUKEE: NOTABLE WOMEN IN INSURANCE Milwaukee, WI (10/27/31) BizTimes Milwaukee presents its inaugural showcase of Notable Women in Insurance, spotlighting accomplished female professionals throughout the insurance industry in southeastern Wisconsin. METHODOLOGY: The honorees did not pay to be included. Their profiles were drawn from nomination materials. This list features only individuals for whom nominations were submitted and accepted after a review by our editorial team. To qualify for the list, nominees must be based in southeast Wisconsin. They must be currently serving in a senior level role at their firm, must hold a leadership position in their industry outside of their own organization, have made a significant contribution to advancing workplace equality at their own workplace or beyond, and act as a role model or mentor.
• Angela Loberg, Executive Director UnitedHealthcare of Wisconsin • Diana Schmidt, Property & Casualty Consultant | Principal/Hausmann - Johnson Insurance, Inc. • Megan Zimmerman, Vice President - Employee Health & Benefits / Marsh McLennan Agency • Stephanie Riesch-Knapp, Owner & Sr. Employee Benefits Consultant / R&R Insurance Services, Inc. • Claire Huschen, Vice President Business Development / Hays Companies • Coreen Dicus-Johnson, President & Chief Executive Officer / Network Health • Joanne Szymaszek, President of Johnson
Insurance Services / Johnson Financial Group • Christine Rogers, Senior Vice President of Customer Service / Robertson Ryan & Associates • Mariah Mateo Sarpong, Director of Communications and Knowledge Management / MicroInsurance Center at MILLIMAN • Heather Dunn, Senior Vice President & Chief Financial Officer / West Bend Mutual Insurance • Tammy Roou, Vice President Enterprise Compliance / Northwestern Mutual • Brandy Enger, Director of Personal Lines / Vizance • Kristina Talkowski, Branch Manager / CNA Insurance • Nicole Cutraro, Vice President / Mid State Insurance • Aditi Javeri Gokhale, Chief Commercial Officer & President of Investment Products and Services / Northwestern Mutual ACUITY AGAIN NAMED BEST IN NATION FOR WORK-LIFE BALANCE DURING COVID-19
Sheboygan, WI (November 1, 2021) - After analyzing millions of reviews, Glassdoor ranked Acuity #1 in the nation for work-life balance during COVID-19 for the second consecutive year. On Glassdoor, employees voluntarily and anonymously share insights and opinions about their work environments by sharing a company review, designed to capture a genuine and authentic evaluation. As one employee wrote, “Acuity truly embraces work-life balance: it’s not just jargon.” “Being named best in the nation for work-life balance is a tremendous gesture by our employees. It is an incredible honor, and it comes from everyone working together, recognizing and valuing each other, and believing in the employee-focused culture we have built that is based on a fierce respect for the individual,” said Ben Salzmann, Acuity President and CEO. “Glassdoor ratings reflect the experience of people who know us best—our employees. It’s a true, transparent reflection of who we are not just as an employer, but how we care for our people,” said Joan Ravanelli Miller, General Counsel and Vice President Human Resources.
A key part of Acuity’s philosophy as an employer is providing every employee with comprehensive, inclusive, and straightforward benefits. From offering a true flex-time schedule and unlimited sick leave to support for team members dealing with personal challenges and celebration of joyous life events, Acuity’s work-life integration benefits help people achieve a positive balance between their work and personal lives. Additionally, Acuity continues to enhance its health and wellness benefit program, recently announcing that it will be expanding coverage to include family-forming benefits, new telehealth services, and more, while providing employees access to the broadest possible network of doctors anywhere. This latest honor adds to Acuity’s continued and growing recognition as a great place to work. Over the past 12 months alone, Acuity was featured by TIME as one of the best places to work during the pandemic, named to Forbes’ list of America’s Best-in-State Employers, honored with a Glassdoor Employees’ Choice Award, and named Top Entry Level Employer for 2020 by CollegeGrad.com. 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 29 states. Rated A+ by A.M. Best and S&P, Acuity employs over 1,500 people.
PENN NATIONAL INSURANCE LAUNCHES FIRST OF ITS KIND DIGITAL LEGAL SERVICE FOR COMMERCIAL POLICYHOLDERS
Harrisburg, PA (November 1, 2021) - Penn National Insurance is now providing their business policyholders with access to Business Risk Protection, an Insurtech digital legal assistance service from Epoq Inc. The new service is the first legal assistance service introduced by a major insurer and the first in a movement by carriers towards non-coverage digital services. Business Risk Protection represents a ‘new breed’ of value-added services that meet the changing expectations of millennials and Gen Z policyholders. Randy Mancini, vice president of Commercial Lines at Penn National Insurance says, “This value-added service extends the protection we provide to the business community and helps us play an important role in helping them resolve their problems. Introducing this service also helps agents maintain their position as trusted advisors to their clients by giving them access to assistance that would otherwise be expensive or inaccessible.” wisconsin INDEPENDENT AGENT
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Business Risk Protection is designed to safeguard businesses with high-quality legal agreements that mitigate and transfer risk, containing over 100 services including: • Contractors - construction agreements, subcontractor agreements and job proposals • Doing business - documents to hire staff and consultants, protect intellectual property and recover debts • Hospitality and restaurant - agreements for holding events such as venue rental, catering, and performance contracts • Landlords - leases and deposit notices for residential and commercial property “As millennials and Gen Z become more dominant, insurers are focused on re-engineering their customer experience and generating positive policyholder interactions. The model of insurance is changing from a purely transactional relationship to one in which the policyholder receives value beyond the coverage and engages with their insurer more regularly. There is a demand for a more modern expansive offering from insurers and our services help them fulfil this need as well as differentiate them in the market,” adds Grahame Cohen, CEO of Epoq North America. ABOUT PENN NATIONAL INSURANCE - Penn National Insurance, founded in 1919, in Harrisburg, Pa., sells property-casualty insurance in eleven states, through a network of more than 1,200 independent agency operations. The company wrote $749.9 million in net written premium in 2020 on $718.0 million in policyholders’ surplus, and total assets exceeded $1.9 billion. The company employs approximately 830 people in its eleven-state sales and service territory. For more information on Penn National Insurance visit www.pennnationalinsurance.com. ABOUT EPOQ - Formed in 1994, Epoq (www. epoqtech.com) works with insurers and financial institutions to help them innovate, differentiate, and give greater value to their customers. The company achieves this by offering pioneering digital legal and regulatory document preparation services as an enhancement to its client’s services. With offices in Massachusetts and in London England, Epoq is respected globally and provides its unique services to over 60 major brands.
TRICOR INSURANCE ANNOUNCES STRATEGIC INVESTMENT FROM J.C. FLOWERS & CO Lancaster, WI (November 8, 2021) - TRICOR Insurance, a leading nationwide business insurance, employee benefits, personal insurance, and individual life and health independent insurance agency, announced today that J.C. Flowers & Co., LLC (“J.C. Flowers”), a leading private investment firm dedicated to investing globally in the financial services industry, has made a strategic investment in the company. Terms of the 28 | DECEMBER 2021 |
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transaction were not disclosed. TRICOR, a Top 100 Independent Insurance Agency as measured by Business Insurance, has more than 40,000 clients across Wisconsin, Iowa and the Midwest. The investment will be used to accelerate the company’s rapid growth both organically and through strategic acquisitions. Founded in 1945, TRICOR is led by Dave Fritz, CEO/President of TRICOR Insurance, who purchased the business with his brother Bruce in 1982 from their parents. “We have always invested in our talent and technology, alongside sound acquisitions, and our next focus is on growth acceleration. It is the perfect time to bring in an investment partner like J.C. Flowers that can help us accelerate our growth and fits well within our culture,” said Mr. Fritz, TRICOR’s CEO/President. “By pairing the diverse skills of J.C. Flowers alongside TRICOR management’s industry expertise, we know we will achieve our mission of being the employer of choice, as well as the insurance agency of choice, throughout the upper Midwest.” Dave Fritz will retain a very significant ownership position in the company, and the entire management team will remain in place following the investment. “TRICOR has an excellent industry reputation and a strong company culture, and we see tremendous opportunity for TRICOR to expand its operations throughout the Midwest,” said Eric Rahe, Managing Director of J.C. Flowers. “J.C. Flowers has a long track record of successful investments in the insurance industry, and we look forward to working with Dave and his team to leverage our experience and strong relationships to grow the company strategically.” Dowling Hales acted as financial advisor to TRICOR in the transaction. Godfrey & Kahn and Foley & Lardner served as legal advisors and Honkamp & Krueger served as a business advisor to TRICOR. ABOUT TRICOR INSURANCE TRICOR Insurance is a leading independent insurance agency, ranked among the top 100 independent agencies in the United States. TRICOR has a diversified product set of business, with more than 220 employees and more than 40,000 clients across Wisconsin, Iowa, and beyond. ABOUT J.C. FLOWERS & CO. J.C. Flowers is a leading private investment firm dedicated to investing globally in the financial services industry. Founded in 1998, the firm has approximately $5 billion of assets under management. J.C. Flowers has offices in New York and London with an approximately 20-person investment staff who have a combined 300+ years of experience. Over its history, J.C. Flowers has invested more than $17 billion of capital in 60 portfolio companies in 18 countries across a range of industry subsectors including banking, insurance and reinsurance, securities firms, specialty finance,
and services and asset management. For more information, please visit www.jcfco.com.
SOCIETY INSURANCE NAMED IN BUSINESS INSURANCE ANNUAL BEST PLACES TO WORK IN INSURANCE
Fond du Lac, WI (November 10, 2021) - Society Insurance has been named in the annual Business Insurance Best Places to Work in Insurance program, which recognizes employers for their outstanding performance in establishing workplaces where employees can thrive, enjoy their work and help their companies grow. Society ranked 13th in the nationwide Medium Employer category, which consists of companies with 250 to 999 U.S. employees. Based in Fond du Lac, Wis., Society Insurance insures restaurants, bars, and other small-to-medium businesses in nine states. Society ensures growth and development opportunities for its 330 employees via personalized career coaching, tuition reimbursement and student loan repayment. Employees receive a generous compensation and benefits package, including 401(k) profit-sharing match and defined-contribution retirement deposits. Society’s culture reflects its core belief that employees who lead a balanced, happy life are motivated to excel in serving their customers. Remote work and telecommuting options, flexible scheduling and ample paid time off allow each person to create their ideal work/life balance. Wellness and health club reimbursements, free annual health risk assessments and complimentary health nurse coaching sessions are key pieces of the wellness program. And because nothing feels better than giving back, Society promotes community stewardship with grants from the employee-led Charity Committee, paid volunteer time off and an annual charitable match program. “We are gratified to be selected as one of the Best Places to Work in the insurance industry,” said Rick Parks, Society Insurance president & CEO. “Because this is based primarily on a survey of employees regarding how they feel about the company, we believe it’s particularly meaningful. Employees are the ultimate judge on whether you are a great company to work for.”
Group identifies the leading employers in the insurance industry by conducting a free two-part assessment of each company. The first part is a questionnaire completed by the employer about company policies, practices and demographics. The second part is a confidential employee survey on engagement and satisfaction. The program divides employers into the categories of small, 25-249 employees; medium, 250-999 employees; and large, 1,000 or more employees. This year’s report features 100 companies of various sizes, from 25 employees to more than 4,000. The ranking and profiles of the winning companies will be unveiled as a sponsored content supplement in the November issue of Business Insurance and online at BusinessInsurance.com. ABOUT SOCIETY INSURANCE: Headquartered in Fond du Lac, Wis., Society Insurance has been a leading niche insurance carrier since 1915. Society focuses on the small details that make a big difference to its policyholders while offering topnotch insurance coverage, service and competitive pricing to businesses in Wisconsin, Illinois, Indiana, Iowa, Minnesota, Tennessee, Colorado, Georgia and Texas. ABOUT BUSINESS INSURANCE: Business Insurance is the authoritative news and information source for executives concerned about risk and the impact on their business. With information for risk managers, insurers, brokers and other providers of insurance products and services, Business Insurance delivers in-depth analysis on new and emerging risks, case studies of successful programs, market intelligence on trends, and guidance on how to capitalize on opportunities and overcome challenges. In addition to a monthly print magazine, Business Insurance provides essential news via its website, BusinessInsurance.com; daily and weekly e-newsletters; and breaking news via email news alerts. To subscribe, please contact Business Insurance at info@businessinsurance.com. ABOUT BEST COMPANIES GROUP: Best Companies Group works with partners to establish “Best Places to Work,” “Best Companies,” and “Best Employers” programs on a national, state-wide and regional basis. Through its thorough workplace assessment using employer questionnaires and employee satisfaction surveys, Best Companies Group identifies and recognizes companies that have been successful in creating and maintaining workplace excellence.
Best Places to Work in Insurance is an annual sponsored content feature presented by the Custom Publishing unit of Business Insurance and Best Companies Group that lists the agents, brokers, insurance companies and other providers with the highest levels of employee engagement and satisfaction. Harrisburg, Pa.-based Best Companies wisconsin INDEPENDENT AGENT
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GOVERNMENT AFFAIRS
EARLY POLL REVEALS SOUR ELECTORATE AND HEADWINDS FOR INCUMBENTS With less than a year away until the Midterm elections, the results of a late October Marquette University Law School poll reveal a sour electorate and troubling political headwinds mounting for statewide incumbents facing reelection in the coming year. Midterm elections historically have not been favorable for the Presidential party in power (presently controlled by Democrats) and there are signs that next year’s election could be particularly challenging for certain statewide incumbents in Wisconsin. For starters, Wisconsin Democrats are certain to feel the effects of President Joe Biden’s low job approval rating which has plummeted by double digits in the latest survey with a 43 percent approval rating, while 53 percent disapprove. These figures will surely impact federal congressional races where many political experts on both sides are already conceding that Democrats in the U.S. House of Representatives are likely to lose control of the chamber. In Wisconsin, all eight house seats are up for election (currently 5 GOP and 3 DEM), but only one of them is seen as competitive and having national implications. The 3rd district in western Wisconsin is being vacated by incumbent Democrat Ron Kind who announced that he is not running for reelection. Republicans are hoping to pick up this open seat, while Democrats will have a primary 30 | DECEMBER 2021 |
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election in August 2022 to choose their nominee. U.S. Senator Ron Johnson (R-WI) is also facing a tough statewide re-election if he decides to run again, but he has yet to formally announce his plans as of this writing. Many expect Johnson to ultimately run again and he could face some strong political headwinds next year if he does decide to run. In the most recent Marquette survey, only 38 percent said they would vote for Johnson, while 52 percent said they’d support someone else. However, Johnson could benefit from the Democrats’ low popularity regardless of which candidate emerges from a 12-way primary contest. Then there is the hotly contested race for Wisconsin Governor. Democrat incumbent Tony Evers announced earlier in the year that he is running for re-election for another four-year term. The latest Marquette poll results suggest that Evers will be fighting for his political life as he faces re-election and an unhappy electorate. A year out can seem like an eternity in politics and a lot can happen, but as of right now Evers is facing a 40 percent re-elect compared with 53 percent of those in the poll who say they would vote for someone else. If these numbers hold, it will be a very difficult environment for Gov. Evers who is likely to face former Republican Lt. Governor Rebecca Kleefisch in the general election.
A closer examination at the crosstab data on Gov. Evers’ re-election suggests possibly a deeper problem for the incumbent - Independent voters are not thrilled with him or his job performance in the latest survey. Forty-seven percent disapprove of the way Evers is handling his job as Governor versus 42 percent that approve. And just 34 percent of Independent voters said they would vote to re-elect Evers, while 58 percent said they would back someone else. These numbers are problematic for a candidate heading into a competitive re-election fight and any statewide candidate must win over Independents if they are going to be successful at the ballot box in Wisconsin. Another curious piece of polling data that should be keeping the Evers campaign up at night is that 50 percent of women polled said they would vote for someone else other than Evers versus 42 percent who would vote for him. When he ran against Governor Walker in 2018, Evers at the time dominated both independent and female voters. On the other hand, Evers does still enjoy significant support from black voters with a margin of 2:1 saying they would vote to re-elect him. The Marquette poll did not gauge where Democrat Attorney General Josh Kaul’s reelection sits with voters, but one can easily make the case that AG Kaul is likely to face similar statewide headwinds as Evers considering the challenging political environment. The poll found negative views about all seven politicians they were asked to rate. And more than half of those polled believe the state is headed in the wrong direction and more are concerned about inflation than they were just a few months ago. Among some of the poll’s findings: • 45 percent approve of the job Governor Tony Evers is doing, while 46 percent disapprove. In August, his split was 50-43. Meanwhile, 42 percent view him favorably and 45 percent unfavorably, compared to 46-42 in August. • 36 percent had a favorable opinion of U.S. Sen. Ron Johnson (R-Oshkosh), while 42 percent had an unfavorable one. In August, his split was 35-42.
• 38 percent view U.S. Sen. Tammy Baldwin (D-Madison) favorably, while 39 percent view her unfavorably. Her split was 40-38 in August. • 39 percent view Vice President Kamala Harris favorably and 47 percent view her unfavorably. • 38 percent view former President Trump favorably, while 57 percent view him unfavorably. • 38 percent view former Vice President Pence favorably, while 42 percent view him unfavorably. • 38 percent approved of the job the state Legislature is doing, while 48 percent disapproved. • 41% say the state is headed in the right direction, while 51% say it is off on the wrong track. In August, 39% said the state was headed in the right direction and 52% said it was on the wrong track. • 64 percent said they’re very concerned about inflation, while another 28 percent are somewhat concerned. In August, those numbers were 49 and 35. The poll didn’t ask respondents about possible head-to-head contests for 2022 with the fields still unsettled and Senator Johnson yet to say whether he will seek re-election. The Marquette poll sampled 805 registered voters with a margin of error of plus or minus 3.9 percentage points and the partisan balance of the poll was in line with historical averages. Forty-five percent identified as Republicans, 44 percent as Democrats and 9 percent as Independents. The Marquette poll is widely considered one of the more reliable state polls based on past performances in examining previous election contests.
>M isha Lee IIAW Lobbyist
wisconsin INDEPENDENT AGENT
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SALES
CLIENT EXPECTATIONS GROW FOR INSURANCE AGENTS Commercial lines and personal lines clients expect and need their insurance agents’ advice on a wider variety of business solutions than last year, according to a Nationwide survey, which means agents have more cross-selling opportunities. The latest Nationwide Agency Forward survey found that insurance consumers are looking for counsel from agents as they continue to worry about the ongoing coronavirus pandemic’s impact. The reliance on agents comes with consumers’ growing confidence in their agent’s ability to help protect them—90% of midsize business owners (up 7% from June 2020) and 69% of personal lines consumers (up 8%) say their agent regularly works with them to ensure they have the right coverage for their needs.
Among personal lines consumers, 29% indicated they are interested in retirement topics from their agent. When it comes to cybersecurity, 41% of midsize businesses, 28% of small businesses, and 20% of personal lines consumers express interest in receiving resources and advice about how to safeguard themselves. One area that saw a significant growth of interest across the board was banking. Midsize business owners’ interest jumped from 12% in 2020 to 52% in 2021. Small business owners interest gained 7% to hit 18% in 2021, and consumer interest gained 6% to reach 24%.
However, increased cross-selling opportunities are irrelevant if agents can’t reach their clients— and shifting consumer locations mean agents must implement digital tools to do so. More than Employee benefits is the nontraditional product 1 in 3 personal lines consumers plan to move most likely to catch a business owner’s eye, with away from their current location in the next five 59% of midsize business owners indicating they years, with 1 in 4 of those saying the pandemic are interested in employee benefits. Among small impacted their decision. And 1 in 5 business business owners, 37% are interested in employee owners intend to reduce, move or eliminate benefits, a 15% increase since the same time last offices in the next five years—with middle market year. business owners being three times more likely than small business owners to say the pandemic Additionally, 39% of midsized businesses are influenced their plans. interested in retirement products. Thirty-two percent of small business owners said they are interested—a 14% increase since last year. 32 | DECEMBER 2021 |
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As a result of the geographical shift, 47% of agents are concerned about their ability to retain clients who relocate and 61% plan to invest heavily or moderately to attract, maintain and foster relationships with clients outside their current geographies. Interestingly, “although 57% of agents feel clients want their agent located nearby, less than half of consumers and small business owners agree with that sentiment,” said Peter McMurtrie, president of property-casualty commercial lines at Nationwide. Unfortunately, insurance customers report increased challenges with their insurance needs in 2021. Half of all small business owners struggle with the length of time it takes to settle claims, to find the best price for their protection needs, and to understand insurance terminology.
Middle market business owners have similar challenges, but about 75% also report difficulties with the length of time it takes to set up their coverage, an increase of 11% since 2020. Difficulty in receiving insurance quotes and in quickly connecting with their agent by phone each increased by 7%. Similar to 2020, consumers continue to struggle with the length of time it takes to settle claims (69%), understanding different types of coverage (42%), and finding the best price (42%).
> AnneMarie McPherson, Independent Agent News Editor
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