Wisconsin Independent Agent | December 2023 Magazine

wisconsin INDEPENDENT AGENT DECEMBER 2023

Happy Holidays!

FROM THE IIAW

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CONTENTS wisconsin INDEPENDENT AGENT

COVER STORY: Happy Holidays from the IIAW! This holiday season consider making a difference by participating in the IIAW Emerging Leaders annual fundraiser, raising money for the ICU at UW Health University Hospital.

INDEPENDENT INSURANCE AGENTS OF WISCONSIN 725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com

2023-2024 EXECUTIVE COMMITTEE President:

Mike Ansay | Ansay & Associates

President-Elect:

Joanne Lukas Szymaszek | Risk Strategies Company

Secretary-Treasurer:

Dan Lau | Robertson Ryan Insurance

EMERGING LEADERS ANNUAL FUNDRAISER...........5 INSURANCE BARTENDER....................................................7-10

Chairman of the Board:

Nick Arnoldy | Marshfield Insurance Agency, Inc.

State National Director:

Update: Carrier Downgrades and Your SwissRe Agency Errors & Omissions Insurance Policy

Steve Leitch | Leitch Insurance

PERSONAL LINES.....................................................................12-13

Janel Bazan | Avid Risk Solutions/Assured Partners

Should Homeowners Purchase a Builders Risk Policy for Renovations?

MEMBER FEATURE.................................................................15-16

Unique Legacy Continues: Marshfield Insurance Agency Thrives With Father-Son Duos

COMMERCIAL LINES.............................................................18

2023-2024 BOARD OF DIRECTORS Beth DeLaForest | Aspire Insurance Group, Inc. Mike Harrison | R&R Insurance Services, Inc. Jason Knockel | Kunkel & Associates, Inc. Aaron Marsh | Marsh Insurance Services, Inc. Andrea Nelson | Unisource Insurance Associates, LLC Brad Reitzner | M3 Insurance Solutions

Cyber Insurance: Important to Offer to Every Commercial Client

Justin Staebler | Risk Strategies Company

TECHNOLOGY............................................................................20

IIAW Staff

How Tech Adoption Can Foster a Forward Facing Culture

Matt Banaszynski | Chief Executive Officer 608.256.4429 • matt@iiaw.com

MARKETING...............................................................................21 Your Guide to Crafting a Content Calendar for the New Year

CONTINUING EDUCATION SCHEDULE..............................23 GOVERNMENT AFFAIRS.......................................................24-25

Wisconsin Supreme Court to Hear Arguments in Redistricting Case

AGENCY MANAGEMENT......................................................26-27 Managing Carrier Risks in Your Book of Business

MEMBERS IN THE NEWS.......................................................28-29 EMERGING LEADERS............................................................30 IIAW Emerging Leaders Ready to Succeed in a Hard Market

FOOD FOR THOUGHT..............................................................31

ADVERTISERS INDEX AMERISAFE.....................................................14 Berkshire Hathaway GUARD...................21 Erickson Larsen..............................................31 IMT.......................................................................32 Penn National..................................................19 Robertson Ryan & Associates.................25 UFG......................................................................2 West Bend.........................................................17 Western National...........................................11

Mallory Cornell | Vice President 608.210.2975 • mallory@iiaw.com Kim Kramp | Accounting Supervisor 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 Director 608.210.2977 • kaylyn@iiaw.com Jeff Thiel | Director of Agency Success 608.256.4429 • jeff@iiaw.com Andrea Michelz | Education & Membership Engagement Coordinator 608.210.2972 • andrea@iiaw.com Diana Banaszynski | Events Coordinator and HR Business Partner 608.256.4429 • diana@iiaw.com Ali Smeester | Accounting Specialist 608.256.4429 • ali@iiaw.com Freeman Zhang | Data Analytics Intern 608.256.4429 • freeman@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. © 2023 For information on advertising, contact Kaylyn Staudt, 608.210.2977 or kaylyn@iiaw.com. wisconsin INDEPENDENT AGENT

| DECEMBER 2023 | 3

It’s

Buy

Time

by Kimberly Bunce, SFB

How to Finance Your Next Acquisition

From a bank that understands the insurance industry.

Growing your agency whether through partner buyout, merger, or acquisition can be challenging, but financing shouldn’t be your biggest obstacle.

To maximize your buying power, it’s important to choose a financial institution that understands the complexities of the insurance industry. Here’s why: Most likely, your agency’s book of business is your largest asset; however, traditionally bankers are taught to recognize only tangible assets, such as cash, equipment, and real estate. That means your agency’s book of business is removed from the balance sheet, making your agency less valuable in their eyes and sometimes a riskier investment.

Consequently, many banks consider there to be a lack of collateral for insurance agencies to secure a traditional commercial loan and will require a Small Business Administration (SBA) loan to help offset the perceived collateral shortfall. The downside is it often takes time to get an SBA loan approved and closed, and the restrictions, rules, and covenants required can be overwhelming and slow down the loan process.

Don’t be discouraged, there are several options besides as an SBA loan to consider, including: • Seller Financing – The seller may be willing to provide all or partial financing for the purchase, especially if the seller would realize tax benefits from being paid over multiple years.

• Lend on Personal Assets – You may want to consider having the bank lend you money separately using a home equity line of credit or other personal collateral.

• Partner with SFB – At Security Financial Bank (SFB), we are different than most other community banks. When we say we get it – we really do. With the help of IIAW and other industry leaders, our team at SFB has spent years learning about the industry and understands the value of an agency’s book of business. We are comfortable lending against it and seldom require an SBA loan as we believe the book of business usually provides adequate collateral to secure a loan.

Here are some examples of insurance agencies we helped: • Agency Merger – After meeting several times, we explored the financial ramifications of the merger, looked at the mix of business and cash flow, and examined the consistency of the earnings stream. SFB provided a quick, non-SBA loan decision and closing. Financing was approved based upon their strong book of business.

• Partner Buyout – An agency owner inquired about financing a partner buyout along with securing a company line of credit and real estate loan. While the client’s situation changed several times, we were able to provide guidance every step of the way. This loan relationship was custom-made for the borrower and involved non-SBA financing and terms that accommodated the borrower, which were outside the norm of the typical terms of repayment.

• Agency Refinance – A Wisconsin agency wanted to refinance its existing bank debt. Despite a balance sheet that turned most banks away, we took a deeper dive to really understand the book of business and gained immediate comfort in management and how they ran their agency. With consistent and growing commissions and strong cash flow, we were able to provide a quick turnaround on the loan request.

If you would like to learn more about how we can use our industry expertise to help you with your next project, please contact us. Reach out to SFB’s Insurance Agency Team at 888-254-0615 or scan the QR code to get started. We look forward to partnering with you!

Financing for Independent

Insurance

Agencies At SFB, we have knowledgeable lenders who understand the nuances of the insurance industry and have experience in financing all of your business and personal needs including acquisition financing, partner buyouts, refinancing, producer loans, technology loans, real estate, and lines of credit.

Schedule an Appointment Scan Here!

Kimberly Bunce, Deirdre Tumm, Krista Paulus, Curt Van Auken, and John Lisowski. Your Insurance Lending Team.

Bankers Who Believe in You

sfbank.com | 888.254.0615 |

wisconsin INDEPENDENT AGENT

| NOVEMBER 2023 | 5

2023 Emerging Leaders Fundraiser The IIAW Emerging Leaders Annual Holiday Fundraiser is back! This year, they’re supporting the ICU at UW-Health University Hospital. Your generous donations will provide “memory makers” - heart recorders placed in stuffed animals or physical hand molds capturing heartbeats for children and young adults who are losing their family members and receiving end-of-life care.

Even $5 will make a lasting impact. Help the Emerging Leaders reach their $500 donation goal, which would fund these memory makers for an entire year!

Donate today: paypal.com/pools/c/8Zm1H9sRcp

6 | DECEMBER 2023 |

wisconsin INDEPENDENT AGENT

INSURANCE BARTENDER

UPDATE: CARRIER DOWNGRADES AND YOUR SWISSRE AGENCY ERRORS AND OMISSIONS INSURANCE POLICY PLEASE NOTE THAT THESE STEPS ARE NOT MEANT TO LIMIT YOUR E&O CARRIER'S LIABILITY - IT IS TO LIMIT YOUR AGENCY'S OWN RISK, AS YOUR E&O MAY NOT BE TRIGGERED The rehabilitation and subsequent liquidation of Wisconsin Reinsurance Corporation (WRC) and its subsidiary, 1st Auto & Casualty Insurance Company (1st Auto), has been making headlines and causing agents to act quickly. The Wisconsin Office of the Commissioner of Insurance (OCI) has been publishing updates on their two websites, which can be found at bit.ly/3T4drkP and bit.ly/3T6vGGk. A video (bit.ly/47TolOk) has recently been uploaded by OCI providing an update on the situation.

The following information should be read carefully and used to determine appropriate steps for your agency. The guidance referenced in this document is specifically for SwissRe Corporate Solutions America Insurance Corporation Professional Liability policyholders. Should you not have a SwissRe Corporate Solutions America Insurance Corporation Professional Liability policy, please reference your errors and omissions policy, and contact your carrier or attorney for additional guidance. This is not to be construed as legal advice, and each agency should review its policy language and act as it deems necessary.

Background on 1st Auto & Casualty Insurance Company and Wisconsin Reinsurance Corporation Rehabilitation & Liquidation WRC is a property and casualty reinsurance company whose clients are mutual insurance companies in Wisconsin, Arkansas, Illinois, Iowa, Missouri and South Dakota. In Wisconsin, WRC is the reinsurer for 34 of Wisconsin's 44 town mutual insurers. As part of WRC, 1st Auto offers direct coverage for personal auto, business auto and personal/farm umbrella.

Many Wisconsin insurers, including WRC, experienced higher-than-expected losses in 2022 as severe storm events damaged property across the state. By the end of the year, WRC and 1st Auto reported that they did not have the financial stability to continue operating and meet their obligations in the foreseeable future. In 2023, efforts to find additional capital to stabilize their financial position did not materialize for WRC and 1st Auto. Due to these developments, the OCI determined it was appropriate to take action to protect 1st Auto's policyholders and Town Mutual insurers who get reinsurance from WRC by controlling the remaining assets of the company through the rehabilitation process.

At the time of this publication, it is unknown as to the financial condition of the town mutuals impacted by the WRC rehabilitation and their current situation concerning their reinsurance carrier and which option for maintaining compliance they are pursuing as proposed by OCI (previously referenced).

Wisconsin Reinsurance Corporation and 1st Auto & Casualty Insurance Company Liquidation On November 1, 2023, OCI filed a Petition for Liquidation of WRC and 1st Auto, collectively the WRC Group. The liquidation will have a direct impact on 1st Auto policyholders, and OCI is asking agents to immediately start working with their clients who have a 1st Auto policy to assist them in finding replacement coverage prior to January 1, 2024.

Please visit OCI's website at oci.wi.gov/WRC for upto-date information. You can review the notice being mailed to agents at bit.ly/40Zers.You can review the notice being mailed to policyholders at bit.ly/3sP9ZQ.

wisconsin INDEPENDENT AGENT

| DECEMBER 2023 | 7

The IIAW and SwissRe have put together sample forms for agencies to use when a carrier goes insolvent, when an agency is unable to procure coverage the client has requested, when a client is non-renewed and the agency is unable to replace coverage with another carrier. Visit iiaw.com/page/sampleletterstocustomers to access these letters. To access this webpage, log into the website using your IIAW login and password. If you have any issues logging in or if you have any questions, please email info@iiaw.com.

WRC withdraws from A.M. Best Rating Process Just recently, while investigating the WRC situation, the IIAW learned that the WRC Group withdrew from the A.M. Best rating process in June of 2022. A press release titled, "AM Best withdraws credit ratings of members of Wisconsin Reinsurance Group" (bit.ly/3t6mS8x) published by A.M. Best and a post on WRC's website titled "The WRC Group Withdraws from A.M. Best Rating Process"(bit.ly/3Gpex2M) confirmed such action had taken place.

Before this action by WRC, according to the statement from the rating agency, "The group obtained a Financial Strength Rating of B+ (Good) and the Long Term Issuer Credit Ratings of "bbb-" (Good) of Wisconsin Reinsurance Corporation and 1st Auto & Casualty Insurance Company (1st Auto)".

The action of WRC losing their B+ rating and withdrawing from AM Best credit ratings has wideranging implications for independent insurance agencies, especially as it relates to coverage under their errors and omissions insurance policy.

To read more on AM Best's Guide to Credit Ratings, visit bit.ly/3N6U2Mb. WRC's action to withdraw from A.M. Best Rating Process means that the policy language as it relates to insolvency exclusions now applies as the INSURED (agency) may have placed coverage with a County Mutual or Town Mutual reinsured by a carrier that is NOT rated B or higher. You may not have E&O coverage should certain circumstances arise.

How are Town Mutual Insurance Companies impacted?

Town Mutuals are referenced and described in Chapter 612 of Wisconsin state statutes (bit.ly/3T6x0ZO). Town Mutuals organized under and 8 | DECEMBER 2023 |

wisconsin INDEPENDENT AGENT

subjected to Chapter 612 are not member insurers of the Wisconsin Insurance Security Fund or the state's guaranty fund or guaranty association in the state or states of domicile of the subject risk. Wisconsin Statutes Section 612.54 references that these "town mutuals" can levy mandatory and optional assessments on their members/ policyholders if certain conditions are met.

If you have clients insured by Town Mutuals currently reinsured by WRC, you may not have proper E&O coverage and should follow the guidance as instructed later in this article. However, not all Town Mutuals are impacted by the rehabilitation of Wisconsin Reinsurance Corporation. Town Mutuals who currently have their reinsurance through carriers rated B or higher are likely not impacted by the insolvency language contained in your E&O policy and, as a result, you likely do not need to take any action.

Many Town Mutuals are pursuing options for maintaining compliance with Wisconsin law as outlined by OCI. However, this action should result in their reinsurer being rated B or better to alleviate E&O coverage concerns.

How are Domestic Stock and Mutual Companies impacted?

Domestic Stock and Mutual Insurance Companies are subject to Chapter 611 of Wisconsin State statutes (bit.ly/3T6WqGu) and are member insurers of the Wisconsin Insurance Security Fund or the state's guaranty fund or guaranty association in the state or states of domicile of the subject risk. As such, the exclusionary language referenced above does not apply and no action is necessary unless they are downgraded below a B by A.M. Best, or they enter rehabilitation as directed by OCI. In which case, follow the previously published guidance.

What action should my agency take?

As previously mentioned, the IIAW has not been able to maintain any recent financial information on the town mutuals reinsured by WRC. A listing of Town Mutual Clients on WRC's website can be found at bit.ly/46FQIOS. It is also unknown now which Town Mutuals may have procured reinsurance from someone other than WRC. Agencies are advised to contact all Town Mutuals they are contracted with and inquire as to who their

reinsurer is and whether their A.M. Best rating is B or higher. If a Town Mutual has a reinsurer that is rated B or better, no further action may be necessary depending on the language of your E&O policy.

Should you have clients with a Town Mutual who has a reinsurer that is either not rated (for example, WRC) or rated lower than a B, please follow the ensuring guidelines carefully.

The recommended course of action for agencies to consider: First and foremost, contact any Town Mutuals you are contracted with and inquire as to whether they have WRC as their reinsurer.

If the Town Mutual does not have WRC as their reinsurer, find out if their reinsurer is rated B or better

by A.M. Best. If the Town Mutual's reinsurer is rated B or better, then no additional action is likely required by your agency.

If the Town Mutual has merged with another Town Mutual (and it satisfies the requirements set forth in Wis. Stat. §612.33 and Wis. Admin. Code Ins 13.09) and has secured reinsurance from carrier rated B or better, then your agency likely requires no additional action.

If the Town Mutual has merged with a domestic insurer authorized to conduct business under Wi. Stat. ch. 611 that has reinsurance coverage that is adequate to support its business operations, then no additional action is likely required by your agency.

If the Town Mutual either has WRC as their reinsurer or the Town Mutual's reinsurer is not rated or rated lower than a B, then a SwissRe professional liability policyholder must take the following action: The agency must inform its clients of the WRC situation and how it may impact their insurance.

Do not rely on the Town Mutual to communicate with your client about their financial and reinsurance situation. The agency must provide additional guidance on the client's options.

Failure to properly communicate with your clients insured by these Town Mutuals may result in an E&O claim against your agency not covered by your E&O policy. It is recommended that you try to communicate both electronically and by United States Postal Service with your Town Mutual clients.

DO NOT MAKE ANY DECISION FOR YOUR CLIENT! It should be the policyholder/client's decision on the course of action they wish to take regarding their policy.

Recommended Course of Action 1. Always document any communication you have with the Town Mutual and their clients.

2. Run a list from your agency management system to identify potentially impacted clients.

3. Contact the clients to advice them of the situation. Send the client the letter linked below via e-mail and USPS. Visit bit.ly/475MJfT for a sample Town Mutual Client Letter.

4. Attach the letter to your client's file in your agency management system.

5. If there are other documents provided by the Town Mutual or reinsurer that can be shared with the client, include them with your letter.

You may also include a copy or link to the press release titled, "AM Best withdraws credit ratings of members of Wisconsin Reinsurance Group" published by A.M. Best at bit.ly/3t6mS8x.

6. The agency should not recommend a course of action for the client. The client must decide if they want the agent to immediately market the account to a new carrier, market the account at the time of renewal or continue to place coverage with the Town Mutual.

7. The agency should clearly state that if it does not hear from the policyholder, they will assume the client wishes to discuss and potentially explore moving their insurance to a new carrier at the time of their renewal.

8. Be ready with additional markets to assist your clients. Should the client elect to continue to place their insurance through the Town Mutual reinsured by WRC or a reinsurer not rated B or better, then the agency should use the customer disclosure and acknowledgment sign-off letter on our website at bit.ly/475MJfT. 9. Should no additional markets/carriers exist and you wish to end the relationship with the client, follow the guidance on ending a client relationship at bit.ly/475MJfT. 10. Pertaining to Town Mutual clients, any newly quoted policies should be reviewed for coverage differences and discussed accordingly. wisconsin INDEPENDENT AGENT

| DECEMBER 2023 | 9

11. DO NOT offer to pay any outstanding RISKY BUSINESS

(or new) claims for your clients OR refund unearned premiums!

12. DO NOT rely on the Town Mutual or Rehabilitator (OCI) to contact your clients on your behalf.

Consult your E&O policy's Insolvency Exclusion and report any potential incidents to IIAW and SwissRe's Claims Department.

Your agency's communication should be clear and concise and advise the policyholder/client to contact your office immediately to discuss potential options. The agency must inform their policyholders/clients of the situation, what impact it has on their coverage, what their coverage options are moving forward and let them decide what they wish to do. Most policyholders are confused as to what to do and what this means for their insurance coverage and their relationship with your agency. While stressful for your agency's employees, these essential steps will help your agency guard against E&O claims that might arise against your agency from policyholders/clients of Town Mutuals.

Please keep in mind that your policyholders may be notified by their lenders if their insurance company no longer meets the lender's Key Rating Guide requirements. Should you be notified by your policyholder that they have received such a letter, you should request a copy of the letter and engage with the carrier. A copy of the carrier's reinsurance placement summary, certificate and/ or reinsurer financial information may satisfy their

concern/request. Follow the lender's prescribed guidance pertaining to submitting necessary documentation.

Any communication you receive from policyholders on this issue should be documented and escalated internally to respond to all inquiries in a consistent manner.

If your customer cannot provide the necessary information to satisfy the lender's request or obtain replacement insurance coverage from a company that meets the Key Rating Guide requirements of the lender, the lender may have the authority to force place insurance coverage.

For letter templates to communicate proactively with your clients regarding carrier financial changes, please visit bit.ly/3Go1jn6.

Finally, agencies and their employees are advised to continue to monitor the evolving situation with their carriers and act as they deem necessary. They are also advised to consult with legal counsel if needed. This guidance has been prepared for members of the Independent Insurance Agents of Wisconsin. The guidance is not meant to provide a legal opinion or legal advice on the described process. The letters shared on our website and linked throughout this article are intended to be customized and modified for your agency's specific needs and requirements.

> Matt Banaszynski, CEO, IIAW

Matt’s Mixology Peppermint Martini

Directions

1. Prepare the rim: Crush the peppermint candies and place them in an even layer on a plate. On another plate, add a small pool of grenadine, or simply wet the rim of the glass with water using your finger Ingredients (grenadine is easiest and works best). Run the rim of the martini glass in the grenadine • 1 oz. 30 proof or 60 proof peppermint schnapps (or first, rotating the glass so the rim is evenly white Creme de Menthe) coated. The roll the rim in the crushed • 1/2 oz. vodka candies until evenly coated.

• 1 1/2 oz. Creme de Cacao 2. Shake the drink: Place the peppermint schnapps, vodka, Creme de Cacao and • 1 1/2 oz. heavy cream heavy cream in a cocktail shaker. Add a • Peppermint candies and grenadine, for the rim handful of ice and shake until cold. Strain (optional) the drink into the prepared martini glass. wisconsin

This seasonal martini is perfect for the holidays! Photo and recipe courtesy of acouplecooks.com.

10 | DECEMBER 2023 |

INDEPENDENT AGENT

nice

makes you smile.

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

PERSONAL LINES

SHOULD HOMEOWNERS PURCHASE A BUILDERS RISK POLICY FOR RENOVATIONS? Americans spent $420 billion in 2020 on remodeling their homes, according to the National Association of Realtors "2022 Remodeling Impact Report," with the most commonly undertaken renovations being the kitchen, bathroom, home additions, flooring and painting upgrades. In 2020, the U.S. home remodeling market generated $340 billion in revenue, with a 4.1% projected growth through 2027, according to Global Market Insights.

But when should a homeowner who is doing a home renovation purchase a builders risk policy to supplement their homeowners policy? The reality is that a homeowners policy does not provide insurance for the exposures homeowners face during the course of new construction or remodeling, leaving them vulnerable to costly financial losses, according to US Assure's research.

“The general guidance is, in order to protect your own interests, as well as the interests of others, it's recommended to purchase a builders risk policy," says Alan Ferguson, president, US Assure. “It would guarantee that any materials or fixtures that are to be installed during renovation would be covered should they sustain physical loss or damage from a covered cause of loss."

“For any homeowner doing a renovation project 12 | DECEMBER 2023 |

wisconsin INDEPENDENT AGENT

at their house, no matter how small those values are, they should explore a builders risk option with their agent," agrees Ryan Mee, vice president, inland marine underwriting, Liberty Mutual. “Certainly, for any larger substantial remodels, clients should absolutely look into a builders risk policy to help protect those materials as they're being stored on site and being installed."

An independent agent can provide the benefit of their knowledge and expertise to ensure their clients are adequately covered during a renovation or remodeling. “Agents have a chance to show off their knowledge by showing the homeowner what their existing homeowners policy covers and what it doesn't," Mee says.

“Explain where their existing homeowners policy provides coverage and where there could there be a gap."

Specifically, agents should highlight the notable differences between a homeowners and builders risk policy. Traditionally covered perils under a builders risk policy include the theft of building materials, fire, vandalism, property in transit and storage, and property owned by subcontractors and suppliers. The coverage can be purchased by the owner or the contractor and “for a homeowner and agent, that's a decision best made between them," Mee says.

But one of the most important things an agent can do for a client is to keep an open dialogue.

“Having a clear understanding of the project will enable an agent to really assess what is needed on each project" because “not all houses are created equal and neither are all builders risk policies," Ferguson says.

“Oftentimes the builders risk policy might be the last thing that the building owner or a contractor thinks of putting in place. And especially on the smaller-scale side, there has to be a quick turnaround to get a policy in place and to make sure all parties are adequately comfortable with coverage."

“Understanding potential risks, including geography, logistical issues, job site security, and even unique architectural features will enable an agent to build a policy that makes sure a client has the right coverage in place for all perils of note," he says. “That's the value an agent can bring."

To be successful in the builders risk space, Mee says an agent should "work with carriers that are consistently responsive and can turn that policy around quickly and make sure they have the knowledge in their local community to be the resource that can provide the service."

Additionally, “the responsiveness and the speed at which agents can get a policy in place is really important," Mee says.

This article was originally published on iamagazine.com in November.

> Olivia Overman,

IA Content Editor, iamagazine.com

AMERISAFE HAS A NEW

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UNIQUE LEGACY CONTINUES: MARSHFIELD INSURANCE AGENCY THRIVES WITH FATHER-SON DUOS

Pete Lotzer, Nic Lotzer, Cole Hoffmann, Cory Hoffmann pose by Marshfield Insurance sign in front lobby.

Cole Hoffmann and Nic Lotzer, recently joined the Marshfield Insurance Agency team, but they are no strangers to the insurance industry. Both of their respective fathers, Cory Hoffmann and Pete Lotzer, have been longtime staples at the local company. Together, these two father-son duos cement a tradition that combines family legacy and professional excellence - a tradition that started with late founder Roger Arnoldy and current Owner/Broker son Nick Arnoldy.

"That translates to the customer base of business and we both strive to give customers the best service possible within company guidelines. My dad has done an incredible job at MI and I’m very eager to continue his positive effect with the company."

Exemplifying Family Values

"The word 'legacy' comes to mind but, really, Cole isn’t a clone of me. He is his own person with his own set of strengths and his own style. Hopefully, he can learn from my 30+ years of experience in the industry but he will leave his own mark on this place."

Cole, who joins the team as a Personal Lines Producer, expressed his enthusiasm about working alongside his father.

Nic Lotzer and father Pete Lotzer never expected to be working together, but for both it has been a great experience.

"For my whole life, my dad has worked for Marshfield Insurance and I’ve seen what a great career it can provide.

Knowing that, I’m super excited to work alongside my dad and learn from someone who has been in the industry for so long," he said. "It’s a cool aspect to be able to go to my dad, who has incredible knowledge about the insurance industry, for work related questions, concerns, etc."

Cory, who has been a Commercial Risk Agent with the team since 2002, said he enjoys seeing his son at work every day and is excited to be working alongside him.

"It was honestly something I never thought I would do in my career but after joining and now working closely with my dad, I have really enjoyed working with him," said Nic. "We have always had a pretty strong relationship and I have a huge appreciation for his knowledge and the time he is giving to help guide me throughout my onboarding process. I know he is going to give me an honest answer to all of my questions and show me a path that will allow me to be successful in this business, similarly to his."

"One of my strengths is a deep sense of empathy for my clients. To serve people best, you have to be able to see things as they see them and care about their impression.

I see that trait in my son," he said.

"It's been humbling, and I totally enjoy it," said Pete. "I'm very proud of him."

Both echoed the Hoffmann's values, stating that honesty, integrity and putting the clients best interests before their own is paramount.

"I think our core values are very similar in that we both are very honest, relatable, and generous," added Cole. wisconsin INDEPENDENT AGENT |

DECEMBER 2023 | 15

"Our philosophy is to provide the right coverage for our clients with honest and open communication. We want to ensure that they have the coverage they truly need in place throughout their entire coverage period," said Nic. "Things can change in the business world on a day-to-day, week-to-week basis so having strong communication (both ways) goes a long way and provides for a much stronger relationship and success rate. We want our clients to know that we don’t take their business for granted and keeping them as a client is a priority."

The presence of father-son duos in the company is a positive indicator for the company's current situation and its future.

"I think by us working together it helps get the connection with our current clients to see how our sons saw that we enjoyed doing what we did and the hand off from us to that next generation is much easier," said Pete.

"I believe it showcases our community-focused approach to business and that we place a high regard on our personal values within the agency that is then showcased to our clients," added Nic. "I feel that the values my dad has shown and passed along to me will continue within our organization, allowing for a continued level of service that his clients, and my future clients, will and should expect."

A Legacy of Family Marshfield Insurance is no stranger to the power of the father-son duo. Founder Roger Arnoldy, who passed away in 2014 from Lewy Body Dementia, was succeeded by his son, Nick Arnoldy, who joined the agency in 2003.

"My father started the agency. I didn’t anticipate moving home after college but the opportunity to join and potentially carry on the family business was something I felt I needed to explore. Working with my dad and family was great, once I was here it immediately felt right," said Arnoldy. "Roger was my mentor, not just in insurance but who I looked up to. That feeling only solidified as I got to work with him, he was hard working, confident, and respected by everyone I worked with or talked to. Many people still mention how much respect they had for dad today. My motivation when joining the agency, and now carrying on the agency, was to make him proud."

have confidence, good health, and a job that fulfills them no matter what that is. It’s my job to help assist all of that."

"There is no greater compliment to any business than having a son or daughter of a current employee join the team," said Arnoldy. "As a parent I know we want better for our kids than we do ourselves and we want to help set them up for success. If an employee feels strongly enough to have their son or daughter start a career with our agency, we know we’ve created a business that is secure, encouraging, and supportive of growth. That should translate to a lot of our clients, wouldn’t you feel better doing business where the people who work there want to see their kids be a part of what is happening?"

"I would love nothing better than to see Nic and Cole someday working with one of my kids. How cool would that be?!" he added. "I’ve had such a positive experience working with their dads, I forget that we’re work colleagues first. I would also love that type of a relationship for my kids when it comes to work. I think the 2nd and 3rd generations can continue to build and evolve on what we’ve done just like I’ve tried to do from the generation before me."

The collaborative efforts of these father-son duos bring a unique blend of experience and innovation to Marshfield Insurance Agency. The exchange of insights, from longstanding industry knowledge to fresh perspectives, contributes significantly to the agency's success.

"Getting to work with your children or your parents is time that most don’t get, if you’re lucky enough to get that opportunity, enjoy it!" said Arnoldy.

For more information, please contact Nick Arnoldy at nick.arnoldy@marshfieldinsurance.net or 715-387-4443.

About Marshfield Insurance Agency: Marshfield Insurance Agency is the largest insurance office in the Marshfield, WI area, with locations in Marshfield, Stratford, and Wisconsin Rapids. The agency offers a wide range of insurance services, including commercial, home, auto, life, health, farm, and specialized business insurance programs. Representing over 40 A-rated insurance companies, Marshfield Insurance is committed to providing personalized service and tailored coverage to protect their clients' interests.

Arnoldy said that these days his focus has shifted to making his kids proud.

"I want to show them how to be successful and how to handle certain situations," he said. "Maybe one day, one or all of my kids will join Marshfield Insurance, the door is open. I also want them to know that they need to do what makes them happy, not what makes me or someone else happy.

We all just want our kids to grow up and 16 | DECEMBER 2023 |

wisconsin INDEPENDENT AGENT

Cole Hoffmann, Cory Hoffman, Nick Arnoldy, Pete Lotzer, Nic Lotzer pose beside memorial for Roger Arnoldy

Industry leading results?

Yes!

Great place to work?

Yes!

Commitment to the independent agency model?

Yes!

West Bend has been providing peace of mind for our over 1,500 agency partners through exceptional service relationships for over 125 years.

To find out more visit thesilverlining.com.

wisconsin INDEPENDENT AGENT |

DECEMBER 2023 | 17

COMMERCIAL LINES

CYBER INSURANCE: IMPORTANT TO OFFER TO EVERY COMMERCIAL CLIENT According to the Government Accountability Office, less than 50% of businesses carry cyber insurance coverage. At the same time, the average cost for a cybersecurity insurance claim for small to medium size businesses was $345,000 (NetDiligent).

Everyone is aware of these statistics and the cost of the cybersecurity incident, however, not everyone believes they would ever be a target of a cyber-attack.

Could a commercial farm, an auto repair shop or a contractor be the target of a cyber-attack? You betcha!

Farm Any situation that a business uses devices connected to the internet and would experience a loss of any amount were the system not to work as planned are a target of a cyber-attack. A dairy farm may use robots to feed, milk and monitor their cows’ health. This saves a farm on labor expenses and allows them to maximize the size of their farm with greater efficiency.

The technology behind this is sophisticated and essential as dairy cows are milked two to three times per day. Now, what happens if that farm is the target of a ransomware attack due to using a password to the system that has been compromised? That farmer’s milking and feeding system could be entirely locked up until the ransom is paid. For another example, the technology behind a tractor is becoming more and more complex with GPS, driverless technology, and online programs that analyze the crop to determine how much pesticide is needed and where. It’s the perfect opportunity for a cyber criminal as crop and dairy farmers are thinking about their yield, not their cyber risk.

Auto Repair Shop Mechanics know cars, not necessarily computer networks. They may use risky cybersecurity practices such as having the same Wi-Fi network for employees 18 | DECEMBER 2023 |

wisconsin INDEPENDENT AGENT

and the main computer system, outdated IT infrastructure or even low security when it comes to employee login details. There may be other internetenabled devices connected to the network which an attacker may plant malware, hack into accounts via discovering passwords or eavesdrop on insecure Wi-Fi connections. These all can give a hacker a potential path into the network and could lead to customer files, ransomware attacks or the leaking of other important information.

Contractor Trimble Viewpoint Blog shares a story about a small construction contractor in Georgia that was a target of a ransomware attack in 2020. The hackers gained access through an employee’s email account, gained administrative access, and began deleting cloud backups and encrypting servers. Thankfully the contractor had cyber insurance to help cover the expenses to get back up and running. While it took a week to get critical services back up, most backups being held for ransom were recovered, so the demands were ignored. While they did avoid paying the ransom due to having onsite backups, other significant expenses were still incurred such as attorney fees, rebuilding computers, reloading desktops, and restoring from data backups and had to rebuild some missing and corrupt data. Even though no ransom payment was made, the entire process of returning to normal was not cheap.

While these are just three examples, every industry is susceptible and a potential target to cybercrime. This makes it important to offer cyber insurance to every commercial client. They will thank you later.

> Evan Leitch, Agency Solutions Advisor, IIAW

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

• 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

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.

wisconsin INDEPENDENT AGENT |

DECEMBER 2023 | 19

TECHNOLOGY

HOW TECH ADOPTION CAN FOSTER A FORWARD FACING CULTURE Technology brings many benefits in today's business world. One of them is successfully cultivating the next generation of industry talent.

With a significant gap between the number of insurance job openings and available workers, competition is high among employers to recruit new hires and retain employees. While the labor market shows signs that the exceptionally low unemployment rates may be changing, the issues surrounding attraction, retention and talent development will remain major concerns for brokers beyond 2023.

While all industries face attraction and retention struggles, the insurance industry continues to lag when competing for talent, especially compared to technology and finance. Attracting, retaining and developing talent was the top challenge facing U.S. brokerages, according to Zywave's 2023 Commercial Insurance Market Pulse Report, with more than half stating they struggled to fill a record-high number of job openings last year.

The industry also suffers from a poor public image among millennials and Generation Z, who are looking for meaningful work and may perceive the industry as boring or unfulfilling, even though those working in the industry know the satisfaction that comes with proper risk mitigation, safety and loss control, and exposure analysis.

Insurance firms that offer competitive compensation and benefits, flexibility, meaningful career growth, and development opportunities can get a jump on competitors. The next generation of employees has a different definition of work and expectations relative to their parents, so remote work, growth opportunities and a sense of empowerment and engagement now rival more standard offerings, such as salary, benefits, retirement and vacation.

Accordingly, new technology investments must be viewed by organizations as an essential component of a culture that fosters innovation and empowers people starting out in the industry.

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Employees who stay the course over the long term typically have access to more tools and resources, which builds confidence and productivity and leads to a happier workplace.

Also, the newest talent joining our industry is already aware of the speed of advances in technology in their personal lives. These “digital natives" have grown up with technology, and they're attracted to modern workplaces which reflect an openness to new ideas and new ways of thinking and working. The perpetuation of manual or tedious tasks, such as rekeying data, does not bode well for culture, talent retention or development.

Learning management systems can be leveraged for onboarding and training to give new hires the knowledge and confidence to act and share their ideas. Access to prospect lists that are pre-combined with exposure aspects helps producers build a book of business faster.

And connecting liability collateral to the agency's customer relationship management (CRM) software means new account executives reach more clients with fewer keystrokes.

Every employer's goal is to have employees work smarter, not harder. The insurance industry is no different.

It's more important than ever for employers to monitor areas of the workplace that their staff value. The need for anonymous surveys, regular feedback, and frequent, transparent internal communication—all enabled by technology—is crucial. The insurance industry tech stack is undergoing rapid advances, and employers who properly harness this wave will be rewarded by a culture embodied by a new cohort of loyal, capable employees rising up in their ranks.

This article was originally published on iamagazine.com in October.

> Jeff Cohen, Senior Vice President, Zywave

Thank you for your business and Happy New Year.

MARKETING

YOUR GUIDE TO CRAFTING A CONTENT CALENDAR FOR THE NEW YEAR As the new year approaches, it's the perfect time for independent insurance agencies to reassess their marketing strategies. A well-structured content calendar can be your secret weapon in maintaining consistency and driving engagement throughout the year. Here's a comprehensive guide to creating a content calendar that ensures your efforts yield maximum results.

regional concerns, weather-related insurance needs or community events to establish a deeper connection with your audience. IIAW members have access to Trusted Choice's Content-to-Share which publishes seasonal content year-round!

1. Define Your Goals and Audience

Regularly review the performance of your content.

Analyze metrics like engagement rates, website traffic and conversion rates to understand what content resonates best with your audience. Use those insights to tweak your content strategy moving forward as needed, adapting to evolving trends and audience preferences.

Start by outlining your marketing objectives for the upcoming year. Are you aiming to increase brand awareness, generate leads or educate clients?

Understanding your goals will shape the content you create. Additionally, identify your target audience - their preferences, pain points and interests. Knowing your audience intimately will help tailor your content to resonate with them.

2. Establish Content Themes and Formats Diversify your content to keep your audience engaged.

Consider different content formats such as blog posts, infographics, videos, podcasts or webinars. Moreover, establish monthly or quarterly themes that align with industry events, seasonal changes or specific insurance topics relevant to your audience.

3. Create a Content Calendar Utilize a spreadsheet, project management tool or specialized content calendar software to plan your content systematically. Allocate topics to specific dates, ensuring a mix of content formats and themes. Include deadlines for content creation, review and publication to help you remain on track throughout the year!

4. Incorporate Seasonal and Local Elements As an independent agency in Wisconsin, leverage community events, holidays and seasonal changes in your content. Tailor your messaging to address 22 | DECEMBER 2023 |

wisconsin INDEPENDENT AGENT

5. Monitor and Adapt

6. Stay Consistent and Flexible Consistency is key in content marketing. Stick to your content calendar as much as possible, but remain flexible enough to accommodate unforeseen opportunities or changes in your industry landscape.

A meticulously crafted content calendar can serve as the backbone of your marketing strategy, ensuring consistent delivery of valuable content to your audience. By aligning your goals, understanding your audience and maintaining flexibility, you can maximize the impact of your content marketing efforts in the new year.

Remember, success in content marketing often lies in the balance between strategic planning and adaptability. Embrace this approach, and watch your content calendar transform into a powerful tool for driving engagement, bringing in leads and achieving your business objectives in the dynamic world of insurance marketing.

> Kaylyn Staudt Marketing & Communications Director, IIAW

IIAW CONTINUING EDUCATION

2023 ONLINE EDUCATION & CE CLASSES

D E C EMBER C O U RSE SC H EDU L E DATE

TIME

DECEMBER

COURSE

12/15 10AM-11AM

Claims-Made Policies - The Most Dangerous Policies in Our Industry

12/15

12PM-3PM

Commercial Lines Claims That Cause Problems

12/15

2PM-4PM

Business Auto Claims That Cause Problems

12/18

8AM-10AM

Personal Lines Issues That Keep You Up at Night

12/18 10AM-11AM

Setting Business Income Limits: It’s Easier Than You Think!

12/19

7AM-9AM

Understanding the Importance of Ordinance or Law Coverage

12/19

8AM-11AM

Understanding the Largest Government Benefits: Social Security

12/19

8AM-11AM

Ethics in the Insurance Industry

12/19

11AM-1PM

Why Business Income is the MOST Important Property Coverage

12/19

1PM-3PM

Why Certificates of Insurance - Just Why?

12/19

2PM-4PM

Those Kids and Their Cars

12/19

11AM-1PM

3 Keys to Getting the Named Insured Correct

12/19

11AM-2PM

E&O Risk Management: Understanding Risk Mitigation and E&O Claims

12/19

1PM-3PM

4 Key Personal & Commercial Lines Exposures Every Agent Must Understand

12/19

1PM-4PM

E&O Risk Management: Agency E&O Exposures and Defenses

12/19

2PM-4PM

Insight on Modern Day Cyber Exposures & Risk Mitigation

12/22

3PM-6PM

E&O - Roadmap to Homeowners Insurance

12/22

10AM-12PM

Embracing Directors & Officers Liability Insurance

12/27

10AM-1PM

Agency Management Based E&O and Ethics

12/27

12PM-2PM

Builders Risk and Contractors Equipment

12/28

7AM-9AM

Rules for Developing the Correct Premium

12/28

1PM-3PM

Properly Calculating & Insuring the Business Income Exposure

12/28

1PM-2PM

E&O Exposures: Websites & Social Media

12/29

9AM-12PM

E&O - Commercial Property Coverage Gaps & How to Fill Them

SEE OUR FULL COURSE SCHEDULE AND REGISTER FOR THESE CLASSES AT IIAW.COM/EDUCATION

GOVERNMENT AFFAIRS

WISCONSIN SUPREME COURT TO HEAR ARGUMENTS IN REDISTRICTING CASE The Senate and Assembly have wrapped up business for the remainder of 2023 and recessed the legislative session until they officially reconvene in mid-January. Now all attention shifts to the seven-member Wisconsin Supreme Court where oral arguments will be heard right before the Thanksgiving holiday in the much anticipated legislative redistricting lawsuit, otherwise known as Clarke v. Wisconsin Elections Commission (WEC) .

Two petitions for original action were filed earlier this summer, each requesting that the Supreme Court bypass the typical lower trial and appellate court process and rule that Wisconsin’s current state legislative maps are unconstitutional.

Republicans currently control both houses of the Legislature and approved the district maps that are now in effect. In early October, the justices voted 4-3 along ideological lines to accept the Clarke v. WEC case. The petitioners in the case argue that “the existing legislative maps are an extreme partisan gerrymander that violates various parts of the Wisconsin Constitution.” The justices unanimously rejected a separate, but similar lawsuit in the other case.

The newest addition to the court, Justice Janet Protasiewicz, was sworn in on August 1, 2023 replacing retired conservative former Chief Justice Patience Roggensack. This shifted the ideological balance of the court to a 4-3 liberal majority that include Justices Protasiewicz, Jill 24 | DECEMBER 2023 |

wisconsin INDEPENDENT AGENT

Karofsky, Ann Walsh Bradley, and Rebecca Dallet.

Judicial conservatives previously enjoyed 5-2 and 4-3 majorities on the court for several years.

The conservative minority now includes Chief Justice Annette Ziegler and Justices Rebecca Bradley and Brian Hagedorn. The next Supreme Court election isn’t until 2025 when longtime Justice Ann Walsh Bradley is expected to run for re-election to another 10-year term. Former Republican Attorney General Brad Schimel is expected to declare his candidacy for the high court to run against Justice Bradley.

The judicial conservatives dissented from the court’s order accepting Clarke v. WEC, with all three filing written dissents criticizing the court’s decision to take up the case as an original action. They characterized the lawsuit as a veiled motion to reconsider the ruling last year that put the current maps in place prior to the 2022 election. Chief Justice Ziegler wrote that the present case “appears to have been filed only because of a change in the court’s membership.

Where does this cycle end? Must this court also allow additional future parties to simply sit this litigation cycle out and come forward next court term–or after the next court election–and present already litigated claims again?”

The Legislature, represented by Republican legislative leaders, then asked Justice Protasiewicz to recuse herself from participating in the redistricting lawsuits because of campaign

contributions she received from the state Democratic Party and because of statements about redistricting that she made during her campaign, including that the state’s current maps are “rigged in favor of legislative Republicans”.

On October 6, Justice Protasiewicz issued two identical orders denying the motions seeking her recusal in each redistricting case.

If the court sides with the voters backing this lawsuit, every state lawmaker (132 in total) could be up for re-election in 2024 under brand new district maps. Such a scenario combined with the hotly contested Presidential election year could jeopardize Republican control of one or both houses. Democrats are chomping at the bit for that to happen.

The state’s current legislative maps were adopted following the 2020 U.S. Census and a series of rulings by the Wisconsin and United States Supreme Courts. Justice Protasiewicz made redistricting one of her key campaign issues earlier this year and the issue continues to loom large for Wisconsin officials and political operatives. Redistricting in Wisconsin is a significant political conflict that is being closely followed both at the state and national levels.

Republican lawmakers in particular, who have held strong majorities in both legislative houses for well over a decade, have a great deal at stake politically and are closely watching how the court rules to determine what will be their next move.

Other key issues that are likely to make their way up to the Supreme court over the next several years might include abortion, voting rights, the private school voucher program, medical malpractice caps, and union collective bargaining rights to name a few.

>M isha Lee IIAW Lobbyist

Voted on by our Employees, Robertson Ryan was recognized as a 2023 Top Workplace by the Journal Senঞnel.

Robertson Ryan Insurance Join our Team - More Markets. Bigger Return. Proven Success Learn More: Chris Illman | cillman@robertsonryan.com | 800-258-0277 | www.robertsonryan.com/agentowner

AGENCY MANAGEMENT

MANAGING CARRIER RISKS IN YOUR BOOK OF BUSINESS As an insurance agency owner, managing risks within your book of business is crucial for ensuring long-term success and profitability. With so many places facing hard markets, it's essential to adopt strategies that safeguard your top and bottom lines while providing excellent service to your clients. In this article, we will explore three key areas that can help you effectively manage risks and actualize your agency's potential.

Aligning with Multiple Partner Carriers Can Help De-Risk Your Top and Bottom Lines One of the most effective ways to manage risks within your book of business is by aligning with multiple partner carriers. When it comes to best practices, there are some ways to manage your placements to ensure you aren’t overly exposed during market cycles. Relying solely on one carrier exposes your agency to significant risks, such as limited market options, and vulnerability to market fluctuations. By diversifying your carrier relationships, you can reduce these risks and enhance your agency's stability.

If one carrier is more exposed to adverse market factors or decides to change its underwriting guidelines, your agency won't be as affected because you have more than one market to rely on. This strategy can help protect both your top and bottom line, ensuring a more consistent revenue stream even in challenging market conditions.

Takeaway: It’s easy to double down and maintain a high velocity of new business with one good carrier, but working with multiple partner 26 | DECEMBER 2023 |

wisconsin INDEPENDENT AGENT

carriers allows you to spread your risks while providing options for your clients. Best practices recommend the 80/20 rule that approximately 80% of your business should be placed within the top 20% of your markets. For smaller agencies this is often only a couple, so if one carrier underwrites a large portion of your clients you may need to review your production strategy to spread your risk. If one carrier underwrites considerably more than your agency's profitability goal, that should be an indication that if a carrier changes its underwriting appetite your profitability could be at risk.

Aligning with the right carriers also helps to optimize profit sharing. No one should ever advocate for steering clients with the purpose of better profit sharing because it is illegal in most states. However, concentrating your efforts and placements with a few carriers that align with your client’s needs provides you with economies of scale to optimize potential profit sharing within your normal placement process with your partner carriers.

It's Not That You Need More Carriers, You Need the Right Carriers While having access to numerous markets can be beneficial, it's essential to focus on quality rather than quantity. It's not about having more markets; it's about having the right markets for your agency's target market and specialization.

Understanding your clients' coverage needs and preferences will help you identify carriers that align with your agency's goals and provide the right coverage options.

When evaluating potential partner carriers, assess their appetite and track record for the core lines of business you want to offer to your clients. In addition, be sure to understand the carrier’s growth goals and their financial security.

Partnering with carriers that have a proven track record in your niche markets will not only enhance your agency's credibility but also mitigate risks associated with mismatched client needs and carrier offerings.

Takeaway: A couple of insights from my prior experience managing carrier relationships at a national agency – smaller agencies or growthminded producers often fall into the idea of “needing more markets.” Many larger agencies have a real problem trying to manage too many relationships, which can add indirect costs to your agency through too many meetings or unproductive quoting activity. As an owner, you should focus on finding the right markets for your clients so that they have the coverage they need at a reasonable price.

Winning one or even a few policies by AOR with a market you don’t currently have may seem like a good idea, but unless you have other clients or a pipeline that aligns with their appetite you are incurring admin costs for contracts, commission processing, and other indirect costs that may erode your profitability for that one account.

Maintaining Good AMS Data Will Set You Up to Be Proactive and Protect Your Revenue Agency Management System (AMS) data is a goldmine of valuable information that can help you proactively manage risks and protect your revenue. By maintaining accurate and upto-date data, you gain insights into your book of business, identify potential risks, and make informed decisions.

Especially in a hard market, it’s critical to have an accurate book of business in your AMS to identify clients and risks in the event you need to act quickly to market news. Having the proper policy type, effective and expiration dates, Billing Company, and Issuing Company coded to your policies positions you to instantly pull a report

to plan your re-marketing strategy for affected clients.

Takeaway: Carrier appetite guides are great for reference, but having accurate data in your AMS can give you a more accurate appetite guide from your client base. Seeing which carriers write which types of policies for your client base can also give you guidance on which other carriers to approach if one changes their underwriting guidelines. Having the ability to pull this report also positions you to respond quickly when receiving a communication from a carrier they are no longer writing a certain line of business or even geographic area.

In the agencies I worked for, it was a regular occurrence to analyze the book of business due to a carrier changing their program, exiting a territory, or even terminating a contract. However, having the data available turned a potentially disastrous situation into a manageable process.

To summarize, managing risks within your insurance agency's book of business requires a proactive and strategic approach. By aligning with multiple partner carriers, focusing on the right markets, and maintaining good AMS data, you can minimize risks, enhance profitability, and deliver exceptional service to your clients.

Remember, effective risk management is an ongoing process that requires continuous evaluation, adaptation, and collaboration with your carrier partners. By implementing these strategies, you can navigate the dynamic insurance landscape with confidence and set your agency up for long-term success.

Want to review your book of business and talk through strategies to manage your carrier relationships? Schedule a free consultation today at agencyfocus.com.

> Colby Allen, Consultant & Financial Analyst, AgencyFocus wisconsin INDEPENDENT AGENT |

DECEMBER 2023 | 27

lives and businesses back together.”

News Members in the

ACUITY EARNS TOP CLAIMS AWARD AT EXCELLENCE IN INSURANCE, SPONSORED BY INSURITY

Sheboygan, WI (10/26/23) - Acuity recently received the Claims Champion of the Year award, the only insurer nationwide to be recognized. The award was presented in early October by Insurity at the Excellence in Insurance conference, which recognizes the outstanding performances of P&C organizations in categories including exceptional policyholder service, digital transformation, and excellence in data and analytics.

“The Excellence in Insurance awards are designed to celebrate today’s leading innovators in the P&C industry while learning from their success,” said Sylvester Mathis, Chief Insurance Officer at Insurity. “Insurity congratulates Acuity for demonstrating excellence in claims through the use of next-gen tech, providing a sought-after modern claims experience following a CAT event.”

“Our mission is to protect and enhance the well-being of individuals and families by helping them manage risk and rebuild shattered lives when disaster strikes. That’s why we are so honored to be recognized as the Claims Champion of the Year,” said Melissa Winter, Acuity President.

“When disaster strikes, our claims service shines,” said Ben Salzmann, Acuity CEO. “We are prepared for whatever nature has in store thanks to our expert claims staff, aided by some of the best claims technology in the industry.”

One of those pieces of technology is geocoding software from Insurity. Using geo-locations of insured properties combined with an overlay of storm mapping, Acuity identifies affected areas and customers quickly after a weather event. The insurer is then able to contact insureds and agencies to assess the damage and begin the claim process.

“Unlike other carriers that wait for claims to come to them, Acuity hits the ground running thanks to our technology capabilities,” said Jamie Loiacono, Vice President – Claims.

“We immediately triage claims, deploy our claim resources, coordinate with repair resources, and help people put their 28 | DECEMBER 2023 |

wisconsin INDEPENDENT AGENT

ABOUT ACUITY | Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures nearly 150,000 businesses, including nearly 350,000 commercial vehicles, and more than 550,000 homes and private passenger autos across 31 states. Rated A+ by AM Best and S&P, Acuity employs more than 1,600 people.

ABOUT INSURITY | Insurity is a leading provider of cloudbased software for insurance carriers, brokers, and MGAs. Insurity is trusted by 22 of the top 25 P&C carriers and 7 of the top 10 MGAs in the US and has over 400 cloud-based deployments. Through its best-in-class digital platform, unrivaled industry experience, and the industry’s most robust analytics offerings, Insurity is uniquely positioned to deliver exceptional value, empowering customers to focus on their core businesses, optimize their operations, and provide superior policyholder experiences. Insurity is a portfolio company of GI Partners and TA Associates. For more information, visit www.insurity.com.

SECURA PROMOTES TWO COMPANY LEADERS

Neenah, WI (11/13/23) - SECURA Insurance promoted two company leaders: Kristin Heiges, Vice President–Marketing and Logan Jaklin, Vice President–Actuarial Services.

“Kristin and Logan both bring valuable knowledge and new perspectives to our leadership team," said Amy DeHart, SECURA Senior Vice President and Chief Actuary.

"They embody the qualities we look for in great leaders at SECURA, and they will play important roles as our company continues to grow."

Kristin Heiges, Vice President–Marketing Kristin joined SECURA in 2010 as a marketing intern.

She has held a variety of positions since then, including marketing communications specialist, digital marketing specialist, and director of marketing. Kristin earned her Bachelor of Arts degree in English from Lawrence University.

Logan Jaklin, Vice President–Actuarial Services Logan joined SECURA in 2013 as an actuarial analyst.

He was promoted to a supervisor role in the Actuarial Department in 2017, and he became the director of actuarial services in 2020. Logan graduated from the University of Wisconsin – Eau Claire with a bachelor's degree in actuarial science. He earned his Associate of the Casualty Actuarial Society in 2017 and his Fellowship of the Casualty Actuarial Society in 2021.

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 agencies represent the group, which provides a broad range of competitive commercial, agribusiness, 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.

SOCIETY INSURANCE NAMED IN BUSINESS INSURANCE ANNUAL BEST PLACES TO WORK IN INSURANCE

Fond du Lac, WI (11/29/23) - Society Insurance has been named in the Business Insurance Best Places to Work in Insurance 2023 program, which recognizes employers for establishing exceptional workplaces where employees can thrive, enjoy their work and help their companies grow.

Society ranked 16th in the nationwide Medium Employer category, which consists of companies with 250 to 999 U.S. employees.

Based in Fond du Lac, Wisconsin, Society Insurance insures restaurants, bars and other small-to-medium businesses in nine states. The company ensures growth and development opportunities for its 363 employees via personalized career coaching, tuition reimbursement and student loan repayment. Employees receive a generous compensation and benefits package, including a 401(k) profit-sharing match and defined-contribution retirement deposits.

Society’s culture reflects its belief that employees who lead a 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 sessions with health-coach nurses are key pieces of the wellness program. Because nothing feels better than giving back, Society promotes community stewardship with grants from the employeeled Charity Committee, paid volunteer time off and an employee charitable match program. And earlier this year, the company introduced paid time off to prioritize mental health.

“It’s such an honor to be recognized for the third consecutive year as one of the Best Places to Work in the insurance industry,” said Heather Boyer, Society Insurance president & CEO. “Society’s employees help create a positive, collaborative culture that provides an unmatched customer experience to our independent agency partners

and commercial policyholders.”

Best Places to Work in Insurance is an annual sponsoredcontent 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, Pennsylvaniabased Best Companies 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 measuring engagement and satisfaction.

The program divides employers into the categories of small, 25 to 249 employees; medium, 250 to 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 were unveiled as a supplement in the November 2023 issue of Business Insurance and online at BusinessInsurance.com.

ABOUT SOCIETY INSURANCE: Headquartered in Fond du Lac, Wisconsin, 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 top-notch 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. wisconsin INDEPENDENT AGENT |

DECEMBER 2023 | 29

EMERGING LEADERS

IIAW EMERGING LEADERS READY TO SUCCEED IN A HARD MARKET IIAW's Emerging Leaders hosted their fall event, "How to Succeed in a Hard Market," on November 2nd in Madison. Eric Kuhen and Aaron Forbes from MarshBerry enlightened the rooms with tips, tricks and strategies for succeeding in this hard market.

Over 60 industry professionals gained knowledge and ideas for communicating an independent agent's value in the current market, strategies for solidifying carrier partnerships, ideas for organic growth and keys to assessing their sales culture.

The day began at 1 p.m. in the Top of the Park Room at the Park Hotel. Being on the Capitol Square overlooking Wisconsin's beautiful state Capitol provided an excellent venue for a great event.

Eric Kuhen, Vice Present - Growth Advisory, emphasized the importance for agents to be intentional in their approach to carriers, clients and employees, and to have a strategy for moving forward in the market. In a challenging market, agents need to be realistic about what they can remarket and ensure that clients understand why premiums are increasing and carrier appetite is shrinking. Proactive communication with clients about the impacts of a hard market is critical for agents.

Aaron Forbes, Regional Sales Director at FirstChoice, a MarshBerry company, discussed the sectors and lines of businesses most affected by the hard market, where carriers stand in the market cycle and the importance of selecting the right carriers to maximize business opportunities.

Following the presentation, attendees had the chance to network and enjoy appetizers and drinks.

Many stayed to appreciate the spectacular view as the day concluded.

The event attracted agents and carriers from across the state. We hope that all attendees were able to take something valuable back to their organizations to enhance their businesses. We are thankful and appreciate everyone that made the effort to attend such a spectacular event. The IIAW is grateful for MarshBerry for speaking at our event and providing attendees with insightful and valuable knowledge.

Interested in more resources for suceeding in a hard market?

Trusted Choice put together a toolkit "Navigating Client Communications in the Hard Market' exclusively available for Big I members.

You can download the toolkit for free here:

...

trustedchoice.independentagent.com/hardmarket.

> Evan Leitch, Agency Solutions Advisor, IIAW

30 | DECEMBER 2023 |

wisconsin INDEPENDENT AGENT

FOOD FOR THOUGHT

Searching for Wisconsin insurance prelicensing? wisconsin insurance prelicensing

The IIAW offers in-person and online options for insurance prelicensing in Wisconsin.

Upcoming courses: Property & Casualty - January 22-25, 2024 Life & Health - February 5-8, 2024 Property & Casualty - March 18-21, 2024

iiaw.com/education

wisconsin INDEPENDENT AGENT |

DECEMBER 2023 | 31

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