wisconsin INDEPENDENT AGENT JUNE 2019
We know what it took to build this unique business.
And we know what it takes to protect it. Underwriters who know and understand what coverages are necessary for each unique business. Loss prevention professionals who use a hands-on approach to help develop programs tailored to each specialty business. Claim reps with the expertise and technology to process claims quickly and efficiently. As an Official Supplier of the Silver LiningÂŽ, you and West Bend will find a specialized insurance plan for your valued customers. To find out more, talk to your West Bend underwriter.
Celebrating 125 years of valued relationships with our agent partners.
wisconsin INDEPENDENT AGENT CONTENTS
Independent Insurance Agents of Wisconsin
4-7........... Insurance Bartender The Rise of Digital Ecosystems the Internet of Insurance 10-12.......Get to Know DAIS 13............West Bend and DAIS 15............ Risky Business Drive Revenue and Enhance the Customer Experience with Virtual Risk Consultant 16, 17...... Sales Discover the Business Hiding Inside Your Business 18, 19...... Commentary From Counsel Supreme Court Set to Decide Whether Title VII Protections Include Discrimination Based on Sexual Orientation 20, 21...... Virtual University Rental Cars and Insurance: I Was Wrong (Sort Of) 22, 23...... Agency Operations 5 Reasons Forward Thinking Companies are Collecting Data 26, 27...... Virtual University Ask An Expert 29............ Government Affairs Joint Finance Committee Hits Reset Button on Governor’s Budget Plan 30............ Errors and Omissions Planning 32, 33......Members In The News 34............Food For Thought
ADVERTISERS & INFORMATION 34...........AAA 33...........Badger Mutual 8.............Capstone Innovation Session 14...........IIAW Agency Solutions 25...........IIAW CE Webinar Calendar 36...........IMT 31...........Partners 24...........Prelicensing Schedule 23...........Robertson Ryan 28...........Training Plan 2.............West Bend 35...........Western National 9.............West GUARD
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. © 2019 For information on advertising, contact Ashley Hale, 608.210.2977 or ashley@iiaw.com.
725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 Fax: (608) 256-0170 www.iiaw.com
2018-2019 EXECUTIVE COMMITTEE President: Jason Bott Robertson-Ryan & Associates, Milwaukee President-Elect: Chris Costakis Avid Risk Solutions, Middleton Secretary-Treasurer: Darrel Zaleski Spectrum Insurance Group, Eau Claire Chairwoman of the Board: Lise Meyer-Kobussen Meyer Insurance Agency, Inc. Sauk City State National Director: Steve Leitch Leitch Insurance, River Falls
2018-2019 BOARD OF DIRECTORS
Mike Ansay Ansay & Associates, Port Washington Nick Arnoldy Marshfield Insurance Agency, Inc., Marshfield Mike Harrison R&R Insurance Services, Inc., Waukesha Dan Lau Robertson Ryan & Associates, Inc., Milwaukee Aaron Marsh Marsh Insurance Services, Inc., Rice Lake Marc Petersen American Advantage - Petersen & Assoc., Inc., New Berlin
Joanne Lukas Szymaszek Johnson Insurance Services LLC, Racine Chad Tisonik HNI Risk Services LLC, New Berlin Pam Utpadel Universal Insurance Advisors, Inc., Appleton
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 Emily Mydlowski Member Engagement Coordinator 608.210.2972 | emily@iiaw.com Ashley Hale Graphic Designer and Creative Marketing Manager 608.210.2977 | ashley@iiaw.com Evan Leitch Technology and Risk Advisor 608.210.2971 | evan@iiaw.com Diana Banaszynski Education Coordinator 608.256.4429 | diana@iiaw.com
On The Cover... Leaders of the IIAW have been working closely with DAIS, an insurtech startup, for the last 2 plus years. DAIS, together with the IIAW, is focused on connecting agencies and carriers by providing IIAW members with a cutting-edge software platform–—built to handle the complexity of insurance. DAIS has a simple vision: a day in which agents, carriers, and policyholders are connected in real-time through a cooperatively-owned digital network creating a win-win-win for everyone involved. IIAW company partners such as EMC, West Bend Mutual and others are aiding in the development and deployment of this new cutting edge technology solution for independent insurance agents. The majority of this edition of the Independent Agent is focused on educating readers on DAIS and the power of the Internet of Insurance. wisconsin INDEPENDENT AGENT
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INSURANCE BARTENDER
THE RISE OF DIGITAL ECOSYSTEMS AND THE INTERNET OF INSURANCE For far too long the insurance industry has been complacent. It lags far behind the consumer Internet world in terms of speed, clarity, customization, and customer experience. But that is rapidly changing thanks to platforms digitally connecting ecosystems. Digital ecosystems are the interconnected networks that act as gateways which allow individuals to make one action and end up communicating with multiple interfaces automatically in a matter of seconds. This replaces the need for repetitive tasks and increases efficiency while harnessing a network effect as it creates an end-to-end flow of integrated data. McKinsey & Company, in their article titled Insurance Beyond Digital: The rise of ecosystems and platforms stated, “Insurance companies have the opportunity to create new sources of revenue by rethinking their traditional roles and adopting an ecosystem mind-set.” The article goes on to examine “the rise of ecosystems” and how it will impact insurers. It’s a great read and I highly recommend it.
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This sentiment by McKinsey is certainly appropriate, except it also applies to independent insurance agents as much as it does insurance companies. While a paradigm shift has been occurring the last several years that has largely focused on the digitization of insurance companies and creating a better customer experience, that pace of change has rapidly accelerated toward digitizing independent insurance agents. Insurance agents are at the center of the relationship with the customer. Insurance carriers and insurtech companies alike are recognizing this key component and are working to create and deploy technology solutions suitable for the independent agent. Companies such as Amazon, Apple, Facebook, Uber and Airbnb are all reshaping the customer experience. This type of digitization is built on platforms that that allow interconnected, interdependent networks or ecosystems of various participants to create and deliver innovative
products and services in an integrated bricks and clicks marketplace.
sharing of data to improve the customer experience, engagement and value proposition.
Agents have traditionally managed the relationship between their customers and insurance carriers through an antiquated process that was not centric to the needs and wants of their clients and has failed to provide a personalized customer experience that they are used to receiving in other industries. As a result, we have seen the number of innovations and disrupters targeting insurance distribution increase. (Insert McKinsey Graphic) Agents should begin exploring and adopting an ecosystem model which could redefine an agency’s digital strategy and help them win in a bricks and clicks marketplace.
The changing demographics and demands by the modern consumer can make it difficult for independent agents to market and sell products and services. A unified ecosystem offered through the proper platform can connect and improve marketing, sales, and operations within an agency and ultimately improve collaboration, efficiency and profitability. It is vital that agents begin to leverage this type of connected ecosystem through a platform. It’s also important that independent agents understand how new ecosystems will emerge in place of many traditional industries which will significantly impact their customers and their insurance needs. By 2025, as this revolution gains speed, McKinsey expects “12 distinctive and massive ecosystems to emerge around fundamental human and organizational needs. These 12 ecosystems will account for $60 trillion in revenues by 2025, or roughly 30 percent of all global revenues.” (See image above)
Offering valuable insights into the customer journey, ecosystems work by segmenting and targeting your prospects and customers, allowing you to deliver personalized content across all channels. Agents can improve customer engagement and develop more profitable relationships by optimizing their various touchpoints that combine to form a customer journey roadmap. The secret to success for B2B (Business- to-Business) or B2C (Businessto-Consumer) processes lies in collaboration and
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The Rise of Digital Ecosystems continued.
As connected ecosystems and platforms emerge, forging new partnerships will be a critical priority for independent agencies. Independent Agents should turn to an established platform partner such as DAIS, a technology company made up of successful technology startup veterans and insurance industry experts. DAIS’ vision is to bring the technological changes that have transformed our everyday lives to insurance, and to do that in collaboration with independent agents through a platform called the Internet of Insurance that connects the insurance ecosystem via API (application Programming Interface). Though the Internet of Insurance is only now launching publicly, it is already gaining traction in the industry, as witnessed by an impressive mix of collaborators, representing $30 billion in premium and 5,000 agencies across America. Additional partnerships exist with various Big “I” Associations such as Louisiana, Minnesota, New York, Tennessee, and Wisconsin (with more to come), working strategically to bring the Internet of Insurance to their members. Finally they have a significant number of carriers participating such as CNA, EMC, Jeweler’s Mutual, West Bend Mutual, Western National, Secura, United Heartland, and many others. A connected platform such as the Internet of Insurance (IoI) puts the agent at the center of the connected insurance ecosystem, but how? 6
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Independent agents still lack the technology to fulfill modern consumer expectations. Instead, they’re still forced to call, fax, or visit the web page or portal of each carrier individually. This puts independent agents at a disadvantage in an increasingly digital economy. The Internet of Insurance replaces today’s inefficient agency/carrier communications with modern, instant connectivity, giving independent agencies the same cutting-edge digital capabilities as larger insurtechs while solving the 10-15 points of waste that pervade the industry. Jason Kolb, CEO of DAIS, says “Today, the Internet of Insurance solves the decades-old Single-Entry Multiple Company Interface problem, by using modern APIs to connect agencies and carriers. But this technology is really just the beginning, we’ve built the Internet of Insurance to align agencies, carriers, and the broader insurance ecosystem. The entire insurance industry will win with these new technologies – that’s why so many, from Big “I” Associations to carriers (large and small) to dozens of agencies – are joining the Internet of Insurance.” The Internet of Insurance offers cutting-edge technology to help independent agencies grow by adding new revenue streams, compete in a digital marketplace, supercharging workflows, communicate
instantly, build and access powerful data assets, and save time and money all while increasing an insurance agency’s valuation. DAIS uses APIs to provide a single-entry solution to agents. When submitting a quote, the agent chooses the carriers they would like to submit to and then they are able to track the status of the submission in real-time. In addition, the agent is able to communicate with the underwriter directly through this program on a chat screen. Sound too good to be true? It’s not, and it gets better. Its FREE to independent insurance agents who are members of the Big “I”. This is just scratching the surface of the various technology solutions DAIS can offer independent agents. Customers expect real-time quotes with clear and well-designed product material that is supported by personalized service. Today’s insurance purchasing process does not meet customers’ standards. Many insurtechs offer real-time quoting and rich media, but they struggle to help customers understand the nuances of complex insurance products. Independent agencies, on the other hand, have vast expertise, but face technical barriers to offering a modern customer experience. The Internet of Insurance enables independent agencies to offer insurtech-like customer experiences, while enhancing their role as trusted advisor. Through the Internet of Insurance, agents will be able to leverage and provide new technology solutions to their clients, offer innovative and
differentiated products and great customer service, faster and easier than ever before, while prioritizing carriers based on value, speed, and quality. The rise of ecosystems and platforms presents one of the greatest opportunities and conversely one of the biggest threats to independent agencies as they seek to digitize their business model. Not all agencies are equipped to pursue this exciting new opportunity. However, this wave of new technology does provide a chance for many to realign priorities and initiatives and leapfrog the competition in the process. I encourage any independent agent interested in learning more to contact me for additional information. I would love nothing more than to put the Internet of Insurance in the hands of your agency. The authors of Insurance Beyond Digital: The rise of ecosystems and platforms said it best when concluding their article, “Organizations with adaptability at the core of their design and strategy will be poised to use it to their advantage. Evolution has taught us that it is not the strongest species that survive, but the ones most responsive to change.”
> Matt Banaszynski CEO of IIAW
Matt’s Mixology This innovative, forward thinking cocktail is made with unusual ingredients, served in an unusual vessel and is sure to be a hit at your next office party. It’s the perfect unique cocktail to compliment the innovation the Internet of Insurance has to offer agents. Unlock the secrets to the IOI and contact the IIAW to learn more! Cheers!
Treasure Chest Punch Yield: Makes 8-10 Cocktails Time: 15 Minutes
Ingredients
1 1⁄2 cups fresh lime juice 3⁄4 cup fresh orange juice 3⁄4 cup pineapple juice 1 cup vanilla liqueur 1 cup triple sec 4 dashes Dale DeGroff bitters 1 bottle aged rum (750 ml) 1 bottle chilled champagne (750 ml) 2 cups chilled club soda
Steps to Make It
1. Combine lime, orange, and pineapple juices in a large punch bowl. Add vanilla liqueur, triple sec, bitters, and rum. 2. Immediately before serving, fill bowl with crushed ice and top with club soda and chilled champagne. Garnish with citrus wheels and seasonal fruit. 3. Serve in a treasurer chest and pour in your favorite goblet.
JULY 18-19, 2019
Edgewater Hotel, Madison, WI
SCHEDULE OF EVENTS July 18th
“SHARK TANK” an innovation event presented by Integrity Insurance
9 am
Registration Opens
10 am
Opening Remarks
10:30 amNoon
Ideation
12 pm
“SHARK TANK” an innovation event presented by Integrity Insurance Join IIAW Emerging Leaders at the Edgewater Hotel in Madison for the Capstone Innovation Session sponsored by IIAW Exclusive Partners. Brainstorm and innovate creative solutions to help drive a successful business. Participants will leave with a new approach to apply in their own organization (and share with clients). Come and explore the tools and tricks to think outside the box and learn the process of ideation which leads to innovation.
Teams will be provided problems statements relative to the insurance industry. Participants will be tasked with creating as many possible solutions (individually and as a group) and then build off others creative thinking. Come learn how to challenge assumptions and think creatively!
Lunch Buffet Edgewater Grand Ballroom
12:30-2 pm Concept Development
Move quickly from a sea of “post-it” ideas to a mature and clear concept overview. Participants will use a hands on approach to define the scope of their concept and the perceived outcome of their solution. Creativity is encouraged and fun is required while you prepare to enter the Shark Tank.
2-4 pm
6 pm 8-11 pm
Capstone Innovation Session was formally the Leadership Conference
REGISTRATION INFORMATION $209 Members $239 Non-Members $214 a night - Edgewater Hotel Room block: IIAW - Emerging Leaders IIAW.COM
EXCLUSIVE SPONSORS
Shark Tank Presentations
Teams will present to an esteemed panel of judges and be scored on various aspects of innovation. Winners will be recognized for their creativity and participants will receive valuable tools to take back to their organization.
Dinner - Madison’s 119 King St. Madison, WI 53703 Cocktails at the Edgewater Red Crown Rooftop Lounge
Join us for an evening of spectacular views and professional networking. Take in all of Madison’s twinkling city lights and Lake Mendota’s waves lapping against The Pier.
July 19th 9 am 10 am
Breakfast Edgewater Grand Ballroom Exposures on Your Agency Website, Social Media and in Agency Marketing Materials (1 CE) Learn about how agency websites and marketing language can create special relationships and increase exposures for E&O claims.
11am
Cybersecurity Regulations: Your Agency Must Comply (1 CE) Handling sensitive information is now one of the
most critical responsibilities faced by the modern insurance agency. This session will review state and federal laws and discuss customer service best practices. Participants will be provided with valuable tools and resources to utilize within their organization.
PARTNER SPONSORS Amerisafe Arlington/Roe & Co. Auto-Owners Insurance Central Insurance Companies CNA Insurance EMC Insurance
Fremont Insurance Madison Mutual Partners Mutual Philadelphia Insurance Wisconsin Mutual WPS Health Insurance
Powered by Agents for Over 35 Years and we plan to keep it that way.
We work with a carefully selected network of independent agents and brokers to provide a wide portfolio of Commercial and Personal insurance products. A+ rated by AM Best and backed by the financial strength of the Berkshire Hathaway Group, Berkshire Hathaway GUARD offers competitive pricing, an easy submission process, fast claims handling, and superior customer service. See what we can do for you. Interested agents should visit www.guard.com/apply Businessowner's | Commercial Auto Commercial Umbrella | Professional Liability Workers' Compensation See full product list & state availability at www.guard.com
Berkshire Hathaway
GUARD
Insurance Companies
AmGUARD AZGUARD EastGUARD NorGUARD WestGUARD
The Security You Need. The Name You Trust.
www.guard.com
GET TO KNOW DAIS THE BASICS
What is DAIS’ business model? DAIS is betting on data. We believe that software ultimately becomes commoditized and the real competitive advantage is in collecting and using data, and in being among the first movers in a market to do this. We have built a flexible insurance platform and have built solutions for both carriers and agents on top of it. In terms of making money, DAIS prefers to align ourselves with the independent agency channel and so instead of charging agents for the technology we build, we prefer to charge carriers. We believe this is fair because the gains and savings that carriers achieve by upgrading their technology far outweigh the costs, and benefits their agency force at the same time. DAIS owns a significant part of the Internet of Insurance and generates revenue through the transaction fees it generates. In addition, DAIS licenses its technology to carriers through licensing agreements; carriers may use our technology to compose claims systems, warranty systems, policy systems, as well as transform their underwriting workflows. Finally, DAIS has relationships with a number of startups and data providers, and we make money if we sell those solutions. We do that in two ways. For startups, we develop niche-specific programs, sometimes exclusive, that bring new technology and differentiation into a market as well as collect new and unique exposure data, and carriers typically pay for the cost of those tools and data. And for data providers, we have the ability to provide their data to underwriters, perform data pre-filling and validation checks, and ultimately make application questions go away to boost the carrier’s conversion rates. When the niche programs or data are used we collect the fee, take a percentage, and distribute the rest to the provider. How do you pronounce “DAIS”? The “A” is long, the “i” is short. It’s pronounced “DAY-es”. What is the Internet of Insurance? The Internet of Insurance is the distribution network we built on top of our platform. It connects agents and carriers using a variety of means but with the end result of writing business faster, cheaper, easier and with a better customer experience. What is your relationship with agencies? Unlike most other insurtechs we are not an agency, nor are we a carrier. We love agents: they are entrepreneurs, insurance experts, and they understand the industry in ways that new players simply can’t. We have committed to aligning ourselves with agents and so when we approach a problem, it’s in an agent-centric way.
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DAIS was started for the purpose of empowering agents and brokers. Our charter was to create technology that would ensure the continued success and independence of the agency channel. Who do you work with besides agents? DAIS also works closely with carriers, wholesalers, and reinsurers. Our goal is to digitize the insurance supply chain and add value at every step along the way, which means we must work closely with every participant in it.
UNDER THE HOOD
Is DAIS an agency management system? No. We believe that the agency management system model is becoming obsolete and based on a disconnected world that is not viable going forward. Today we sit next to agency management systems (as well as carrier systems) and provide integration with them so that data stays in sync, and to minimize disruption to your business. What is the DAIS tech stack? Are you built on Salesforce? DAIS is unique in the industry: a platform built from the ground up to support insurance. Our platform was built by a team of world-class technologists in Chicago with experience building distributed systems and platforms with the scale to support entire industries. Unlike most insurtechs we are built on a proprietary microservice-based architecture from the ground up. We are not built on top of Salesforce or anyone else’s technology. This changes our cost basis and allows us to do things with our products that most other insurtechs simply are unable to do. How does DAIS technology scale? Our technology is world-class, and is scalable enough to handle the traffic of the entire $4T insurance industry. Our microservices are horizontally scalable, which means we can independently scale the platform components that are most heavily used. We have techops monitoring in place to constantly monitor our environments for excess load and automatically scale out when critical metrics are hit. We will not run out of capacity. What are the DAIS microservices? DAIS has built almost 20 microservices, but there are around 10 core services which add the secret sauce to our platform. These core services cover capabilities including: • • • • • •
Workflow automation and optimization Configurable data collection Smart data pipes for easy integrations Business and people graph Cross-organization collaboration And more…
FAQ’s SECURITY AND AVAILABILITY
We store sensitive information on DAIS. How secure is the platform, and what are you doing to ensure that our data is secure? DAIS takes security extremely seriously and invests tremendous time and resources into ensuring that our systems and infrastructure are as secure as possible. We know that the industry lags severely behind what would be called “best practices” within the technology world, and we see ourselves as positioned to help our partners upgrade their security game by working with us. We believe that one of the most important value propositions we can provide is the assurance that you are dramatically improving your security posture when you work with DAIS. • We have full-time security professionals on staff whose job it is to stay up-to-date on new threats and vulnerabilities, as well as make sure that we are complying with our internal processes and controls. • We undergo a third-party security audit every year • Every night we scan our source code using an industryleading static source code vulnerability scanning tool • Our production cloud environment is completely separated from our development and integration environments so that we carefully restrict the number of people who even have access to the cloud itself • We encrypt data at rest and in transit • Our environments are automatically penetration-tested every night • We use multi-factor authentication for access to code repositories and systems that contain sensitive data • We monitor our networks for suspicious or unusual activity • We scan every code commit for best practices, test coverage, and exposure to known vulnerabilities • Our security microservice allows for externalized policies which can be configured without code Do any of my competitors have access to any of my data or information? No. DAIS has true multi-tenancy which means your data and information is securely protected and is not available to any of your competitors. DAIS is a critical piece of our infrastructure. What does DAIS do to ensure that the platform stays up and service isn’t interrupted? In addition to staff whose job it is to monitor and improve our availability, DAIS has put in place many automation measures to both assess and improve our availability: • Monitoring tools that evaluate both applications and endpoints • Comprehensive test coverage tools that ensure that our code quality only goes up over time
• An automated ticketing system that generates and assigns tickets whenever an interruption is detected • DAIS is committed to service levels of 99.9% and above, and we strive to exceed that benchmark every month.
DATA OWNERSHIP AND PRIVACY
Who owns the data? We have taken a view of data ownership and licensing that we believe is consistent with both the GDPR in Europe and emerging data privacy regulation in the US. This is for both your protection and our own. That position is this: • The person or organization who puts the data into the system owns the data • Independent agents own their policy expirations and accompanying data. • There are very few exceptions to these guidelines: • Data in the public domain • Data that was previously known to a party, received by a party legitimately from a third party, or independently developed or procured by a party Who has access to the data? None of your competitors. You own your data and as part of using the platform provide DAIS with a license to use it for a few purposes: • For operating and promoting the software • For improving the software • For providing feedback on customer experience to parties involved in a transaction • For providing anonymized carrier scoring benchmarking to carriers and providers • For providing anonymized and aggregated industry metrics to DAIS’ regulatory partners • For using industry trend data to create financial indices • For running other statistics, analytics and performing benchmarking • DAIS’s internal business uses You will also have the option of granting a license to other service providers who you do business with and who can provide better service if directly connected to a subset of your data. These service providers include: • Rating bureau partners • Security compliance services partners • Agency associations Is DAIS compliant with the New York CRR 500 cybersecurity regulation? California Data Privacy Act? GDPR? SOC2? We have the technical underpinnings required to be compliant with all of these and our goal is to be fully compliant by the end of 2019.
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GET TO KNOW DAIS INTEGRATIONS
Is there a developer kit or SDK available? Yes, there is a developer kit available that’s used by our own developers and select partners which includes both API documentation, a developer portal, various client SDK’s and code examples. If you’re interested in access please contact support. How does DAIS work with my agency management system (AMS)? DAIS sits alongside your AMS and is able to read data from your AMS reporting facility. In addition, you will still receive updates from carriers via download into your AMS. That said, DAIS does finally enable you to collect more and richer data about your customers, which most AMS vendors and download capabilities are not able to accept. This data is only available within the agency platform, although we make it very easy for you to export this data to other systems (such as exporting transcripts that you can attach in your AMS) if you need to. What agency management systems do you connect to? We have an out-of-the-box integration available for Applied Epic, and Vertafore AMS360 integration is coming soon. Saggita and TAM are next. If you have a different agency management system get in touch with our support. We may put it onto our roadmap, or we can provide instructions on how to “roll your own” integration using our developer kit. Which carriers are currently on the Internet of Insurance? We currently have almost ten carriers fully integrated and are currently in the process of onboarding more than 50. However, we also integrate with other carriers who are not yet fully set
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up. Carriers you are appointed with who are not fully integrated will still have the ability to receive submissions from the system, collaborate with you, and respond with quotes or declinations. They will not, however, be able to view data and analytics about their interactions with you. What are the different ways DAIS can connect to a carrier? Our preferred way to connect to a carrier is via an application programming interface (API), which provides real-time interactions for underwriting, quoting, and more. However, it takes work to integrate each carrier and not all carriers have their own API’s yet. For carriers that don’t have API’s yet we can gracefully degrade to more manual ways of connecting. How do you handle support? DAIS has a dedicated support inbox that can handle any request. The inbox is monitored by our Customer Support team and when you submit a request, a ticket is automatically entered into our system. The email address for our support is support@dais.com. Although our promised response time is within 24 hours, you will usually receive a response within just a few minutes. If the request is something that cannot be handled via email, we can also set up a time that aligns with your schedule to work out issues via a screen share or phone call. We are here to help no matter how big or small of an issue you’re having! Do you support single sign-on (SSO)? Yes, our platform supports SSO and identity federation, but this requires some technical integration. If you are interested in implementing SSO please contact support.
West Bend Mutual Insurance announces funding of DAIS Agency Platform West Bend Mutual Insurance announced it will invest in the DAIS Agency Platform, a new software platform for independent insurance agents that will help agencies address the key technology challenges they face in running their businesses. The DAIS Agency Platform will increase efficiency, helping eliminate the 10 to 15 points of waste that plague the insurance industry today while allowing agencies to focus on what they do best: serve their customers. The DAIS Agency Platform is being developed by Chicago-based DAIS Technology, in partnership with the Wisconsin, Minnesota, Tennessee, New York, and Louisiana Independent Insurance Agents Associations. Members of partnering Big I associations will have free access to the DAIS Agency Platform, giving agents access to the same technologies that billion-dollar insurtechs use, while interfacing directly with their carrier partners through DAIS’s Internet of Insurance.
DAIS Agency Platform will help us fulfill our commitment to providing the Silver Lining to our independent agency partners and our mutual clients.” “West Bend has a long history of support for the independent agency system and those agencies who represent them, so it’s no surprise they’re helping fund the DAIS Agency Platform,” said Matt Banaszynski, IIAW chief executive officer “The Independent Insurance of Wisconsin are very grateful for their support. I’m excited about how this platform will help our members, allowing us to provide more focus on servicing our valued customers.” “We’re proud to work with West Bend to build the DAIS Agency Platform,” said Jason Kolb, CEO of DAIS. “West Bend was an early adopter of the Internet of Insurance, DAIS’s first platform designed to help agencies and carriers. Funding the DAIS Agency Platform is a logical extension of our partnership, and demonstrates West Bend’s leadership and vision in insurtech.”
“West Bend believes that independent agencies are critical to the future of the insurance industry,” said Kevin Steiner, president and CEO of West Bend. “We’re proud that by funding the DAIS Agency Platform, we can work with our partner agencies to transform this industry and better serve our policyholders. Building the
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AGENCY SOLUTIONS
TRUSTED CONSULTING FOR THE INDEPENDENT AGENT Because we know how important it is for you to succeed in business, IIAW has created a portfolio of solutions built just for you.
TECHNOLOGY
STRATEGIC
OPERATIONAL
FINANCIAL
MARKETING
We help you navigate and choose the best solutions to fit your needs
Protect your investment by reviewing business goals and strategies
Update and improve agency workflows and operating procedures
Review financial processes for accuracy and efficiency
Review your agency marketing efforts and discover helpful tools and resources
YOUR FIRST CALL
We are a trusted partner for independent agents across the nation and a leader in agency risk management and agency solution
Mallory Cornell, IIAW Vice President mallory@iiaw.com www.protectouragency.com
RISKY BUSINESS
Drive Revenue and Enhance the Customer Experience with Virtual Risk Consultant Now in my 10th year as a Risk Management professional, I’ve always appreciated the continuous learning that comes with this industry. Things are constantly changing all around us; categories of industry, coverage forms, exposures, policy language – the list goes on and on. We all wear a risk manager hat in some way, so I’d like to share some tools that will help you identify and assess the exposures of your clients and customers. I’m referring to the Virtual Risk Consultant (VRC). If you have not used it before, its exactly what it sounds like. A virtual tool that you can consult with to identify risks for any category of commercial customer. There are hundreds of classes of business to search through and they are easily organized and sorted with just the click of a mouse. This useful tutorial from IIABA, walks you through one example to show exactly what helpful information you will find within the tool. Category: Retail Stores Risk: Florists Retail stores are susceptible to premises liability claims because of customer traffic but large department and specialty stores are more susceptible than most. All retail stores have significant property exposures. The on-hand stock represents a considerable investment but the amount on hand fluctuates seasonally. For this reason, physical damage insurance on this property must be arranged carefully. When the insured occupies a non-owned building, insurance coverage must be arranged for the insured’s interest in extensive improvements and betterments made to the premises. Crime insurance, in the form of employee theft and money and securities coverage, is also very important. Then you are given a choice of selecting a specific type of retail store to learn more about. After clicking on the “Florists” tab you will see four steps needed to show up at a florist equipped to act as their risk consultant. Those steps are shown below.
Step #1: Understanding the Risk – This section of the VRC provides a summary of operations and an explanation of areas of exposures to evaluate for the risk to be insured. Also included are minimum coverages to offer and other types of coverages to consider as well. Step #2: Exposure Identification Survey – You can then build a questionnaire to review with your customer designed to assist in revealing client exposures and uncover potential coverage gaps. The information serves as a guide in developing an insurance program to meet the client’s needs. The questionnaire is a supplement to the ACORD forms, not a replacement for them, so the ACORD forms must also be completed and used.
Step #3: Proposal Assistant –The proposal assistant provides concise definitions for all coverages included in your customer proposal. The proposal assistant offers a comprehensive list of commercial lines coverages with succinct definitions to enhance customer understanding at the point of sale. It also offers links directly to the appropriate ACORD forms and more in-depth coverage analysis from PF&M.
Step #4: Customer Coverage E&O Checklist/File Documentation – Get a printable coverage checklist complete with a client/agent signature block to use with your customer to document coverages recommended and rejected by the customer. Important: Keep signed customer coverage checklists with the client file as documentation should a claim occur.
SALES
RISK
The Virtual Risk Consultant tool does almost all the work for you and allows you to provide strong customer service, showcase your knowledge and cross sell and up sell programs. It takes only a short time to do your homework with the Virtual Risk Consultant. Learn more about the Virtual Risk Consultant by logging on to www.independentagent.com/vrc. If you have any questions regarding the Virtual Risk Consultant or any of our tools.
Big I Advantage® Virtual Risk Consultant A SALES & RISK EXPOSURE EVALUATION TOOL YOU CAN AFFORD.
COMMERCIAL & PERSONAL RISK EVALUATION FORMS
BUSINESS BUILDING LETTER TEMPLATES VAST EMARKETING CONTENT LIBRARY
E&O CHECKLISTS, POLICY FORMS & MANUALS
The Big I Advantage® Virtual Risk Consultant (VRC), powered by Rough Notes, is a trusted insurance knowledge base platform available exclusively to Big “I” members. Quickly get the information you need to understand your customers’ operations and exposures while identifying appropriate coverages. Gain access to the resources your agency needs, such as E&O checklists, sales and marketing tools, proposal language, plus training and development support.
> Mallory Cornell,
Annual plans for VRC start at $250/year per agency for up to 15 users.
Purchase or renew at independentagent.com/VRC. IIAW Vice President and Contact brett.sutch@iiaba.net or nancyl@roughnotes.com for program details.
Director of Risk Management wisconsin INDEPENDENT AGENT
JUNE 2019 15
SALE
DISCOVER THE BUSINESS HIDING INSIDE YOUR BUSINESS
FIND THE GOLDMINE IN YOUR EXISTING RESOURCES The best agency owners and producers are always looking for new opportunities to grow their business. Those that aren’t certainly should be. But when asked why they haven’t become their best version possible, they usually start with “if only” statements: If only we had that market; if only we had that technology; if only we had that tool; if only we had more service people; if only we had a new office; if only we expanded to another location. Here’s my challenge: Stop “if only-ing” yourself! Those are just excuses. I believe that every agency has a great opportunity that’s been hidden inside its shop for years, if not decades. That hidden opportunity—which is really hidden business—is to maximize all of its existing assets and resources. We refer to that as “redeployment management.” That’s when an agency takes its existing assets/resources and allocate them differently for a better result.
Before I go any further, let’s agree on some basics. 1. Client acquisition is always more expensive than client retention (i.e., it costs more to sell new business than to retain existing business). 2. The most profitable clients are your full-time, long-term clients (the ones who buy all their insurance and risk management services from your agency). This is an excellent exit barrier because if no one else is in, no one can get in! 3. Most of your producers are part-time producers. If they are not investing (vs. spending) at least 20 hours each week with clients, future ideal clients and centers of influence, they are simply not in the game. 4. You only score points (make sales) when you’re in the game! 5. The average agency loses money on at least 50% of its clients, so its profitable accounts are subsidizing unprofitable ones!
6. The average producer suffers from the 2-2 Syndrome—too many accounts paying too little each. Recently I facilitated a private meeting with an elite group of high-performing agency principals whose average revenue was just over $20 million. Before the meeting I surveyed the group about metrics related to their sales performance. We discovered that, on average, only 43% of their producers had met or exceeded their sales goals. This identified a tremendous hidden opportunity: producer productivity! If you’re going to redeploy assets, you want to redeploy them in a way that dramatically improves your overall results. This starts with producer productivity, which means getting producers who meet or exceed their goals. Sure, you need to keep adding new producers. However, shouldn’t you fix those underachieving producers first, or fire them? Otherwise, if you bring a new producer into a broken system, it’s likely he or she will fail.
Identifying hidden opportunities So, where’s your hidden business, and what are you doing to capitalize on it? Here’s a short list of what every agency should be doing to seize hidden revenue-enhancing opportunities. Improve sales. Your number-one goal should be to improve producer productivity (a.k.a. sales) by at least 25%. How many of your producers met or exceeded their sales goals last year? If it’s fewer than 50%, what does that tell you? It tells me that one or both of the following is responsible for their lackluster performance: •
•
A poor goal-setting process. For way too many agencies, their “process” is about as random as picking a number out of a hat. “Okay, everyone will do $100,000 of new business this coming year.” The poor performers don’t believe it. They don’t buy in because they weren’t part of the design, so that’s not “their” number. Lack of accountability. You can’t dump a random sales goal on a producer and wait until the end of the year to evaluate his or her progress.
Trade down. Book of business trade downs are a key to producer productivity. We know that the bottom 50% of the average producer’s customers generate less than 10% of revenue. How much are these accounts costing you in terms of time, energy and resources? Several years ago, I received a great letter from a young producer who had just graduated from our producer training program (FYI, the best never graduate—they keep learning). It read: “Coach, thanks for a great experience. I wanted to share what I did after our first session. I told my wife how excited I was and that I was going to trade down the bottom 80% of my clients. Her response: ‘Are you crazy?!’ Being a typical guy, I told her to trust me and assured her that I knew what I was doing. Well, here I am 12 months later, and I have 70% fewer clients than when I started, but I have 21% more revenue! Thank you!” Today this producer has over $3 million of commission income and fewer clients than when he started with us. Write 100% of all your clients’ business. This means personal lines, commercial lines, benefits, life insurance and for some of you, their financial services, as well. The crazy part is that typically, you’re not asking them to buy anything new! Yes, I know
you’ve heard this a hundred times, so why haven’t you taken advantage of this hidden opportunity? Experience tells me that for every $1,000 of commission income you’re getting today from your clients, there’s at least another $1,000 sitting out there in the hands of one of your competitors. Increase client retention. Do you know your numbers, or are you guessing? As I’ve discussed in the past, improving client retention by 3% could improve profits by 6% to 10%. It’s that simple! It really boils down to installing exit barriers, which is relatively easy to do and yet most producers don’t do it. Improve your client experience. We know that having a great client experience is one of the factors that leads to 99% effective retention and 50% referrals. If you’re not consistently wowing your customers, that’s a hidden opportunity to make dramatic improvements to your client experience. What does your new client onboarding process look like? How does it feel to them? During a recent stay at my “home away from home” in Georgia, I was referred to a local dentist after I chipped a tooth. Although I’d sent them all of my information electronically ahead of time, they asked me to be there 15 minutes before my scheduled time. When I arrived, I was greeted warmly and given a walking tour of the facility, including the treatment rooms, meeting rooms and offices. It was quite impressive. As we toured, they told their story and discussed their community involvement and the projects they support. They also explained that any patient who referred a new patient could win a Yeti cup, golf umbrella or any number of really nice prizes by spinning the office’s gaming wheel (think Wheel of Fortune). After I was seated in the dental chair, the ceiling-mounted flat-screened TV kept me entertained and distracted. I could also request comfort items from a laminated list that included a warm blanket, a cup of hot tea, aromatherapy, or a bottle of water served with a complimentary custom koozie. It was such a positive and memorable experience that I’m looking forward to my next dentist visit.
walk-through tour or orientation? Have you ever wondered why only 5% of your clients are giving you referrals? It has a lot to do with their experience and of course, whether you even ask them. Specialize. It’s widely known that specialists in any profession almost always make more money than general practitioners. If you have not identified the specialties in your business, do a book of business survey. You may be surprised to see that you already have some specialties. For example, if you write eight restaurants or six property managers, you probably have a specialty. When you have a handful of similar accounts, you have referral sources, you have the markets and you can speak their language. Now go immerse yourself in that niche. Rather than always worrying about the “if onlys,” why don’t we just take these hidden and ignored opportunities and allow them to grow? Isn’t that what your best version possible would do? As always, it’s your choice. The author Roger Sitkins, CEO of Sitkins Group, Inc., developed The Sitkins Network and The Better Way Agency program. Insurance professionals with diverse levels of experience have benefitted tremendously from his training and leadership. Roger was inducted into the Michigan Insurance Hall of Fame in 2017 and in that same year also received the Dr. Henry C. Martin Award from Rough Notes magazine. He is known throughout the industry as the nation’s top insurance agency results coach. To learn more, visit www.sitkins.com.
> Roger Sitkins,
CEO of Sitkins Group, Inc.
When possible, do you have new clients come to your office, which gives you the home-field advantage? Do you provide a wisconsin INDEPENDENT AGENT
JUNE 2019 17
COMMENTARY FROM COUNSEL
Supreme Court set to Decide Whether Title VII Protections Include Discrimination Based on Sexual Orientation In one of our monthly columns from 2017, we outlined the Hively v. Ivy Tech Comm’y College of Indiana case. In the Hively case, the Seventh Circuit determined that the protections afforded by Title VII apply to claims of discrimination based on sexual orientation. At the time that Hively was decided (April, 2017), the Seventh Circuit was the only federal appellate circuit to reach that conclusion. The Eleventh Circuit had already specifically held that Title VII does not apply to sexual orientation claims. Because of the “circuit split” and the important legal issues involved, we predicted that the Supreme Court would step in and issue a definitive ruling. After a couple of years, the Court has recently accepted a series of consolidated cases that will allow it to do just that.
Bostock v. Clayton Cty., Georgia also involved a gay man, Gerald Bostock. From 2003–2013, Bostock worked for Clayton County, Georgia as a child welfare services coordinator. Throughout his employment he received positive reviews. In 2013, Bostock began participating in a gay recreational softball league. Shortly after, he began receiving negative reviews, and Clayton County conducted an audit of the program funds Bostock managed. Ultimately, Clayton County fired him for “conduct unbecoming of its employees.”
On April 22, 2019 the Supreme Court announced that it would hear the consolidated cases of Altitude Express v. Zarda and Bostock v. Clayton Cty., Georgia. The former is a Second Circuit case agreeing with Hively—that is, holding that Title VII protects against sexual orientation claims. The latter is another Eleventh Circuit case holding that it does not.
Bostock filed suit under Title VII maintaining that he was discriminated against on the basis of his sexual orientation. The District Court dismissed the case, holding that 2017 Eleventh Circuit precedent held that Title VII does not encompass sexual orientation claims. The Eleventh Circuit affirmed, noting that it could not overturn existing Eleventh Circuit precedent absent an intervening decision by the Supreme Court or the en banc Eleventh Circuit. Because the Eleventh Circuit judges voted against re-hearing the issue en banc, the three judge panel’s ruling endured.
In Zarda, the plaintiff Don Zarda was a gay man working as a skydiving instructor. Before one jump, he told a female client that he was gay to “preempt any discomfort” from “being strapped to the body of an unfamiliar man.” After the dive, the client alleged that Zarda toucher her inappropriately, and relayed that information to Zarda’s boss. Zarda was then fired. Zarda denied touching her inappropriately, and maintained that he was fired exclusively for his sexual orientation in violation of Title VII.
One interesting note about both Zarda and Bostock, which highlights the contentiousness of the issues involved, is that the cases are pitting different agencies of the executive branch against each other. In both cases, the Equal Employment Opportunity Commissions (“EEOC”) backed the plaintiffs, who argued Title VII should apply; the United States Department of Justice backed the employers, arguing that Title VII should not apply.
Ultimately, an en banc Second Circuit overturned its prior precedent and held that “because sexual orientation discrimination is a function of sex, and is comparable to sexual harassment, gender stereotyping, and other evils long recognized as violating Title VII, the statute must prohibit it.”
What will this decision mean for businesses with employees in Wisconsin? As we outlined in our earlier article on Hively, the Wisconsin Fair Employment Act (WFEA) already expressly prohibits employers from discrimination on the basis of sexual orientation. The Supreme Court’s
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wisconsin INDEPENDENT AGENT
ruling in the upcoming Zarda and Bostock cases will not impact WFEA claims or Wisconsin law. However, should the Court hold that Title VII does encompass sexual orientation claims, Wisconsin employers could be liable for compensatory and punitive damages under Title VII that they would not be subject to under the WFEA. What will this decision mean for businesses with employees in other states? Regardless of how one feels about the underlying substantive issues at stake, the Supreme Court taking up these cases provides one large benefit: uniformity. Currently, businesses with employees in the Seventh and Second Circuit operate under one interpretation of Title VII law, while business with employees in the other Circuits operate under a different interpretation. Businesses with employees in opposing circuits have the burden of navigating both. As far as state law protections, approximately half of the states have enacted laws similar to the WFEA that forbid employment discrimination based on sexual orientation. For those states, like Wisconsin, the impact of the Court’s decision will be minimal. For the remaining states, this decision will be extremely impactful for both employers and members of the LGBTQ community. Although Congress has tried on several occasions to pass legislation specifically preventing employment discrimination based on sexual orientation, it has thus far failed to do so. As it currently stands, Title VII is therefore the only possible federal statute through which the LGBTQ community is arguably afforded these protections. Because of both the subject matter of the case and the impact of the Court’s decision, the Zarda and Bostock cases have already garnered substantial media attention. Moreover, given the general timeframe of Supreme Court cases, a decision is likely to come out in
the summer of 2020—right as the presidential election is at its most contentious. R.G. & G.R. Harris and Gender Identity Under Title VII The Supreme Court has also agreed to hear the case of R.G. & G.R. Harris Funeral Homes Inc. v. EEOC, where it will address whether Title VII bars discrimination against transgender individuals based either on their transgender status or on sex-based stereotyping. This issue too arises from a circuit split. Although not as high-profile as Zarda and Bostock, this case could potentially affect Wisconsin employers significantly more than those rulings. That is because the WFEA does not afford protection based on gender identity—thus, all employment protections based on gender identity in Wisconsin come from Title VII. If the Supreme Court determines that Title VII protects gender identity, nothing in Wisconsin will change—that is already the law in the Seventh Circuit. However, if the Supreme Court finds that Title VII does not encompass gender identity claims, there will be no applicable statewide law in Wisconsin prohibiting adverse employment actions based on gender identity. It will therefore be up to each individual employer as to what their policy will be—at least until there is a federal or state legislative reaction. While national headlines will (rightfully) focus on Zarda and Bostock, we encourage Wisconsin employers to make sure and follow R.G. Harris, as well. Of course, the IIAW will also keep you apprised of the results. 20523695.2
> Josh Johanningmeier IIAW General Counsel
wisconsin INDEPENDENT AGENT
JUNE 2019 19
VIRTUAL UNIVERSITY
RENTAL CARS AND INSURANCE: I WAS WRONG (SORT OF) IA Magazine republished one of the VU’s Ask An Expert questions and answers specifically related to personal auto policy (PAP) coverage issues when the insured rents from a non-traditional” rental platform such as Turo. In fact, Turo was the platform specifically addressed. In my answer to this non-traditional rental exposure, I made a statement regarding the PAP’s response to the traditional rental car exposure saying, “In a traditional rental situation, the insured’s PAP extends liability and physical damage to the rented vehicle on a primary basis.” David Thompson, CPCU, AAI, API, CRIS, a highly-regarded instructor with the Florida Association of Insurance Agents and a known coverage expert, questioned my statement. He simply asked, “You sure about that?” Before I go any further, let me tell you that when Thompson asks me a question like that I get to thinking, and second guessing, and worrying. Thompson admits that he knows two things very well, barbecue and insurance. I’ve not had the opportunity to sample his BBQ, but I do know he’s one of the best when it comes to insurance which is why I began to question myself. OK, back to our email exchange. After asking, “You sure about that,” Thompson did the unthinkable he used policy language to back up his question and make his point. He copied and pasted directly from ISO’s PAP: LIABILITY: OTHER INSURANCE If there is other applicable liability insurance, we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable
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wisconsin INDEPENDENT AGENT
limits. However, any insurance we provide for a vehicle you do not own, including any vehicle while used as a temporary substitute for “your covered auto”, shall be excess over any other collectible insurance except insurance written specifically to cover as excess over the limits of liability that apply in this Policy. PHYSICAL DAMAGE: OTHER SOURCES OF RECOVERY If other sources of recovery also cover the loss, we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide with respect to a “non-owned auto” shall be excess over any other collectible source of recovery including, but not limited to: 1. Any coverage provided by the owner of the “non-owned auto”. 2. Any other applicable physical damage insurance. 3. Any other source of recovery applicable to the loss. His point, the PAP is excess for both liability and physical damage coverage when the vehicle is a non-owned vehicle. A rental car is certainly a non-owned auto; thus, the renter’s PAP responds as excess protection over the coverage provided by the rental car company. While I cannot argue that policy language makes coverage excess, it seems we must consider the contractual provisions in many (if not most) rental agreements that may alter the application of the policy language. Following is my response to Thompson: I pulled out the (company name redacted) agreement to read its contractual provisions regarding insurance. Basically, the third-party liability section states that the rental car company does carry liability limits sufficient to
meet state financial responsibility laws; however, NO liability coverage is extended to or for the benefit of the renter. But there is an unless” type wording that essentially says that the rental company will provide state minimum limits protection for the benefit of the renter if required to by state law. So, from a liability perspective the real answer is, it depends on state law. From a physical damage perspective, the agreement says that any damage to the vehicle is wholly the renter’s responsibility unless modified by state law. So, from a physical damage perspective the real answer is, it depends on state law. State law plays a role and I NEVER considered that fact or even the possibility in my writing. Thompson responded, “Fifty states, 50 ways to do it. I still say the form gives excess coverage, but excess of nothing then becomes primaryor ‘only’ coverage.” From here, our conversation went awry in trying to decide upon whom we should lay the blame for my obviously only partially true statement. We considered blaming some quite well-known insurance folks but decided not to blindside them that way yet. So, what does this all mean to you, dear reader? It means I need to apologize for my improper (or improperly explained) information. Ultimately, Thompson is correct, the PAP is excess over the rental car company’s coverage. Further, I think that Thompson is correct that excess of nothing makes the renter’s PAP primary. Which means I’m correct. So, the real answer to whether the PAP provides coverage to rental cars on an excess vs. primary basis lies in state law.
•
•
Liability: If state law requires the rental car company to provide liability coverage to the renter, the PAP is excess over the rental company’s coverage. If, however, state law does not require the rental company to extend coverage to the renter, then the liability coverage provided by the renter’s PAP is functionally primary because of the contractual language in the agreement. Physical Damage: The renter’s PAP is contractually primary unless state law does not allow such transfer to the renter. It is unlikely most states address physical damage.
One last point to keep in mind, even if the rental company is statutorily required to provide liability coverage, it is only required to provide state minimum limits (as is stated in the sample rental agreement). Thompson’s and my debate opened my eyes to something I had never considered regarding rental car coverage state law affects how PAP coverage applies. I spend so much time harping on the need to and benefit of purchasing the physical damage waiver that I never paid much attention to the availability and order of liability protection. For that, I do apologize. Since this conversation began, I have taken the opportunity to review a few state laws regarding rental company liability insurance requirements. So far there seems to be a relatively even split between states that require the rental company’s liability coverage to be primary and states that don’t have such a requirement in statute (allowing the rental contract to take precedence). The VU plans to eventually add this to the state-by-state spreadsheets so stay tuned.
>C hris Boggs
Big “I” Virtual University Executive Director
wisconsin INDEPENDENT AGENT
JUNE 2019 21
AGENCY OPERATIONS
5 REASONS FORWARD-THINKING
COMPANIES ARE COLLECTING TALENT DATA Sometimes, there’s no turning back.
the attributes that make a good individual contributor— conscientiousness, rules following, and task focus—aren’t the same attributes that make a good leader, such as communication skill, decisiveness, and composure. A personality assessment shows you if that person has what it takes to make the transition and where the coaching areas lie.
Brick-and-mortar stores are never going to put internet retail out of business. Broadcast networks won’t slow the trend of viewers streaming or DVRing shows to watch later. And the business world is not about to shift away from the Big Data revolution. Why? Because data mining works. That is, if you collect the right data and know how to manipulate it, it yields useful findings. Whether we’re talking about retailers predicting consumers’ future purchases, healthcare providers exploring new approaches to preventative medicine, or credit card companies trying to limit identity theft, data mining has changed our world faster than most could have imagined.
2
While the human element will always be the most critical part of the hiring equation, it’s true that everyone harbors unconscious biases. Including managers. This is one of the reasons departments develop their own cultures: managers hire in their own image, managers promote people they like (or who seem non-threatening), and managers’ perspectives on work performance and accountability vary across an organization.
The breakout trend is in talent management. Companies have long kept detailed accounting records, carefully measured materials buying and production output, and counted and recounted inventory until they got it exactly right. Employees? Eh, they show up for work. Some are smart, some are productive, some are lazy. A few steal stuff. What’re ya gonna do? Hold on a minute! People are every company’s most important asset. They are the company. Why not put the same effort into your most precious resource that you do into reducing E&O exposure? Data mining around human capital is just as important than examining your internal processes. With the right data, a company can transform itself. Here are the five big reasons companies are—or should be—collecting talent data:
1
TALENT DATA INFORMS HIRING AND PROMOTION DECISIONS This one has been around for a while. Like, decades. If you’ve ever used a personality assessment, you’ve gathered talent data. A valid personality assessment continues to be the best foundation for talent-related data collection. Its output reveals an applicant’s or employee’s intrinsic motivations and behavioral tendencies, which is the key information needed for determining if that person is right for hiring or promotion. A classic example is when you have a strong staff member you are considering rewarding with a supervisory role. Often
22 JUNE 2019
wisconsin INDEPENDENT AGENT
TALENT DATA IMPROVES ENTERPRISEWIDE CONSISTENCY IN HIRING AND DEVELOPMENT
With talent data, companies can limit those biases by looking more objectively at performance, motivation, and potential, which increases consistency both in terms of who is selected for employment and who is deemed qualified for promotion.
3
TALENT DATA ENABLES COMPETENCY MODELING To truly transform a sales force, a service operation, or other broad functional area within your organization, you should develop competency models. This is done by identifying the skills and behaviors that lead to success in a given role or function and then measuring new applicants against the model. In time, your team will be populated by the employees who best align with your success factors, the result being greater productivity and reduced turnover. The catch: You can’t do a competency model without talent data. Otherwise, it’s merely guesswork subjected to the same biases that influence other decisions. Not every company has big enough departments (or
budgets) to develop competency models on their own, of course, but the good news is that assessment firms like Caliper have built and tested competency models that many small and midsized organizations are already using successfully.
4
TALENT DATA HELPS IDENTIFY HIGHPOTENTIAL EMPLOYEES One of the best and least expensive ways to find top performers is to look at people already on staff. Employees are often underutilized by their organizations, or they have great potential but are in the wrong roles. Meaningful talent data on your existing team members will show you who has untapped leadership potential, project-management attributes, or sales acumen, as well as a quality that is often invisible until you take the step of quantifying it with talent data: learning agility. The agile learner applies knowledge cross-functionally and adapts effectively in a changing business environment. Which describes the world we work in now, so find that person.
5
TALENT DATA BUILDS YOUR PEOPLE ANALYTICS DATA LAKE This is the biggie. Big Data is expanding like a new universe, and People Analytics will only grow in relevance as we move deeper into the 21st century. If that sounds overly dramatic, remember how overly
dramatic it sounded in the 1990s when tech innovators said the internet and related communication technology would radically transform how people shop and consume entertainment. Hundreds of dead retail chains later . . . More and more organizations are exploring People Analytics, but the resisters still operate under the misconception that analytics is too big, too complicated, and unattainable (i.e., cost prohibitive). In reality, you don’t have to be a Fortune 500 company to play. You just need a way to collect talent data and a platform for mining and sorting it. More good news! Firms like Caliper can do the data gathering for an organization and provide the mining platform as well, making the endeavor far more affordable than many business leaders realize. And once meaningful data are collected, the doors swing open. Companies can suddenly see their current unrealized potential as well as their talent gaps. They can get a grip on succession planning. Ultimately, they can construct a hiring-and-development strategy that begins to move them in the direction of their ideal state, where they are innovators and industry leaders. The future is now, as they say. Don’t show up late! About Caliper: With Caliper Job Models, Analytics dashboards, and Industry-standard assessment, the Caliper Profile, the journey into talent data is just a click away; www.calipercorp.com/iiaba
>R icardo Roman
Director of Association Management, Caliper
JOIN a Top 100 Agency
How we grew from 28 Producers to 95 Producers. Q: What markets do you have?
A. As the largest independent agency in Wisconsin, RRA has strong carrier relationships. We offer over 50 CL, 30 PL and 45 EB carrier partners.
Q: Will I make more money?
A. Yes, we offer one of the strongest returns to Producers. We pay all office costs including staff salaries. You continue to own your business/book but enjoy all the advantages of being with a larger agency, including profit sharing.
Q: How can I maximize my time?
A. We handle staff management, HR, accounting, IT, rating, office management and other administrative details. This allows Producers to spend more time with their families or growing their book on their terms.
Q: How does carrier contingency work?
A. Producers can share in ALL contingencies. Because of our size, our contingent return is more predictable and stable to our Producers.
Q: Do you have a solid perpetuation plan?
A. Scaling back hours, retiring or planning for the unexpected should be a priority. We help connect Producers with similar interests and backgrounds to develop a buy/sell plan where they are comfortable.
Q: What technology resources do you offer?
A. A dedicated IT department ensures technology resources are performing and the latest tools are being reviewed. We operate on Applied Epic and offer Zywave, AcuComp and HR Workplace Services.
Q: Who owns the book?
A. Simple, the Producer maintains 100% ownership without a non-compete.
Learn More: Chris Illman I cillman@robertsonryan.com I 800.258.0277 I www.RobertsonRyan.com wisconsin INDEPENDENT AGENT
JUNE 2019 23
2019 Pre-Licensing Class Schedule Conducted at State Association Headquarters, IIAW pre-licensing classes fulfill the study requirements for life, health, property and casualty. Full course materials are included with registration. The classes are: • • • • •
Designed to help you pass your state licensing examination The quickest way to meet the WI education hours requirement Taught by experienced insurance professionals who know the business Conducted in a comfortable classroom with free parking Approved by the Office of the Commissioners of Insurance
REGISTER AT IIAW.COM To register, click the Education tab on IIAW.com. For WI exam info, visit Prometric.com. IIAW Member Pricing: $340 Pricing given for full class registration Non-Member Pricing $355 You may also take individual classes Contact Kim@iiaw.com for multi-registration discounts. For any other questions please contact Diana@iiaw.com.
LIFE & ACCIDENT/HEALTH
PROPERTY & CASUALTY
January 7-10 February 4-7 March 4-7 April 1-4 May 6-9 June 3-6 July 8-11 August 5-8 September 9-12 October 7-10 November 4-7 December 2-5
January 14-17 February 11-14 March 18-21 April 15-18 May 20-23 June 17-20 July 15-18 August 19-22 September 16-19 October 21-24 November 18-21 December 9-12
The course fee includes all class materials. Materials are distributed on the first day of class. You receive: • Life & Accident/Health or Property & Casualty Insurance Study Manual • The Intermediary’s Guide to Wisconsin Insurance Law • The Stat of Wisconsin Ins. Licensing Candidate Handbook (This provides all the information to obtain a license)
DAILY SCHEDULE
Day 1 (Monday) 8:30 am - 4 pm ($85) Section A: Principles of Insurance & General WI Ins. Law Ethics Day 2 (Tuesday) 8:30 am - 4 pm ($90) Section B: Life Policies, Terms & Concepts or Section B: Property Policies, Terms & Concepts Day 3 (Wednesday) 8:30 am - 11:30 ($45) Section B: Life Policies, cont. & WI Life Insurance Law or Section B: Property Policies, cont. & WI Property Insurance Law Noon - 4 PM ($45) Section B: Accident & Health Policies, Terms & Concepts or Section B: Casualty Policies, Terms & Concepts Day 4 (Thursday) 8:30 am - 4 pm ($90) Section B: Accident & Health, cont. & WI Health Insurance Law or Section B: Casualty Policies, cont. & WI Casualty Insurance Law
CLASS SITE/DIRECTIONS
The IIAW is located at 725 John Nolen Dr. in Madison, WI. When traveling south on John Nolen, it’s the last driveway before Highway 12/18 (Beltline). Located near the Alliant Energy Center and Sheraton Hotel.
INCLEMENT WEATHER
If weather conditions are questionable, use your own judgment regarding your personal safety.. If Madison public schools are closed, the IIAW is closed and pre-licensing is canceled for the day. Canceled classes are made up on Friday.
HOTEL INFORMATION
Student requiring lodging will receive a special rate at the Clarion Suites, 2110 Rimrock Rd. in Madison. Please call the hotel directly at 608.284.1234, and ask for the “Independent Insurance Agent” discount.
CONTINUING
EDUCATION IIAW ONLINE AND ON-SITE CE CLASSES DATE
COURSE
TIME
03-06 05 06 11 11 12 17-20 17 18 20 24 25 26 27
Prelicensing Life & Health (Onsite June 2-6) Insuring Toys and Collectibles Income After Retirement - Where Does the Money Come From? E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two Business Income - Coverage Analysis through Claims Prelicensing Property & Casualty (Onsite June 17-20) Personal Auto Policy Protecting Your Most Valuable Asset Ethics and Agent Liability Farm Liability Coverages Business Auto Coverages The Dirty Dozen - Twelve Great Commercial Insurance Mysteries Condominiums
8:30AM-4 PM 12 PM - 3 PM 8 AM - 11 AM 8 AM - 11 AM 12 PM - 3 PM 12 PM - 3 PM 8:30AM-4 PM 12 PM - 3 PM 12 PM - 3 PM 12 PM - 3 PM 12 PM - 3 PM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM
Prelicensing Life & Health (Onsite July 8-11) Commercial Property Coverages - Exploring Key Concepts Prelicensing Property & Casualty (Onsite June 15-18) E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two Ethics - Walking a Straight Line Businessowners Policy (BOP) ... Planning for the Unexpected Unlocking the Secrets of D&O Insurance Cyber Liability When the Child Becomes the Parent - Aging Parents and Insurance Decisions Top 10 Countdown of Personal Lines Coverages & Current Issues Workers’ Compensation Farm Vehicle and Equipment Coverages Homeowners Hot Topics ... What You Need to Know
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Commercial General Liability Coverages Prelicensing Life & Health (Onsite August 5-8) E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two Insuring Hobby and Small Farms Contractual Liability...Separating Fact from Fiction Additional insureds and Certificates of Insurance Condominiums Fiduciary Liability, ERISA Bonding, and Employee Benefits Liability The Affordable Care Act contains significant responsibilities for benefit plan decision makers Prelicensing Property & Casualty (Onsite August 19-22) Farm Property Coverage Insuring Trusts - Protecting Your Client’s Wishes Who Is An Insured Ethics and the Law Life Insurance...Benefits for the Living
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VIRTUAL UNIVERSITY
Q:
ASK AN EXPERT
?
DP-3 Coverage
In a DP-3, is there coverage for damage to an AC unit caused by an animal urinating on it?
A:
The current ISO dwelling policy excludes damage to the dwelling caused by:
Coverage should apply unless the claim adjuster could prove loss was caused by one of the excluded causes. Do dogs on leashes regularly make a pit stop there or are there coyotes in the area who might have caused the damage?
(8) Any of the following:
-----------
This must have been happening for a while for corrosion to occur.
(c) Smog, rust or other corrosion, mold, wet or dry rot; (h) Nesting or infestation, or discharge or release of waste products or secretions, by any animals. If the air conditioner is a window unit then it’s probably personal property and neither corrosion nor animal damage are named perils. ----------I question coverage under the policy, but the Named Insured should identify the pet owner and pursue recovery from the pet owner. ----------1. Current (and several prior editions) DP-3 exclude damage done by animals, with an exception for damage not otherwise excluded. 2. “ Corrosion” is specifically excluded, so just based on this limited information, it appears the loss is excluded. 3. However, it’s seems puzzling that if the animal is “unknown,” how was it determined that the corrosion was the result of urination? In addition, this almost certainly has to be the result of multiple exposures to the urine, since it seems highly unlikely that one exposure to urine would corrode metal. And even with multiple events, wouldn’t rain or irrigation rinse off the urine between applications?
Assumptions (bad idea): if the animal was owned by the insured - there is an exclusion for damage caused by “animals owned or kept by the insured”. There are also exclusions for pollution and discharge of waste products by ANY animal. If the animal is owned by a neighbor, there should be coverage under their liability. If the animal is a stray, the first exclusion should still void coverage. ----------Policy wording: We do not insure, however, for loss: c. Caused by: (g) Birds, rodents, insects or domestic animals; or (h) Nesting or infestation, or discharge or release of waste products or secretions, by any animals. ----------As it seems unclear what animal caused the damage, I think you’d have to demonstrate conclusively that it wasn’t, in the words of the exclusion, Birds, vermin, rodents, insects or domestic animals” in order to effect coverage. -----------
This appears on the surface to be an aging unit as I cannot fathom what animal could cause this much damage with 4. This might be damage by vandals, by applying urine, or other one visit. Maintenance is NOT covered under any contract using DP 3 language or any other property form using the chemicals, in which case I think the damage is covered. prefix CP property whatever. You would need to establish a date of loss and promptly report to the carrier of record. ----------What does the form say? From DP 00 03 12 02 loss caused by “Birds, vermin, rodents, insects or domestic animals.”
The property owner may want to explore other avenues to protect the exterior of the AC unit.
Q:
Proprietary Form Water Exclusion
We had a city waterline burst under the street causing water to flood a building’s basement. The water then proceeded from this building into the common area of a mall which is insured under a Special Cause of Loss form with replacement cost. The carrier has denied coverage under the water exclusion in their proprietary form. Are they correct?
A:
The policy excludes flood” defined as inundation caused by, The unusual or rapid accumulation of runoff of rain or surface water from any source.” This was not rain, and most courts interpret the undefined term surface water” to refer to lakes, rivers, streams and so forth. Therefore, this is not an excluded loss. Are there a few courts who have ruled that such water is actually surface water?” Yes, a few, but is the carrier willing to take it that far? Check case law such as: Heller v. Fire Ins. Exch., 800 P.2d 1006 (Colo. 1990) or Ebbing v. State Farm Fire & Cas. Co., 1 S.W.3d 459 (Ark. App. 1999). ----------See this VU article: “Commercial Property Coverage from Public Water Main Breaks” https://www.independentagent.com/Education/VU/ Insurance/Commercial-Lines/Property/Exclusions/ EdwardsSurfaceWater.aspx ----------Some courts have found that water from a broken water main is not the same as rain or surface water. Therefore, exclusions like these do not apply. See: Ender v. National Fire Ins. Co. of Hartford as one example. -----------
a) The unusual or rapid accumulation or runoff of rain or surface waters from any source; or This exclusion applies regardless of whether the damage resulted from an act of man or nature. None of the exceptions to the exclusion for ensuing fire, explosion, or sprinkler leaks applies here. There are several requirements within the exclusionary wording that limit its scope; specifically the meaning of flood in the carrier’s highlighted section requires the unusual or rapid accumulation of: • Rain: This requirement is not met because rain was not present and did not rapidly accumulate; and/or • Surface waters: This was not from surface waters (i.e. pond, lake, river, ocean, creek, spring, etc.). This came from a water line underground. The carrier’s logic is wholly incorrect. This wording does not exclude this loss. And neither does any of the other water exclusion wording they use. The only possible exclusion that might preclude coverage is: 4) Water under the ground surface pressing, or flowing or seeping through; a) Foundations, walls, floor, or paved surfaces; b) Basements, whether paved or not; or
I’m not quite sure how the carrier translates the exclusion to the situation.
c) Doors, windows or other openings.
If they read it very closely they will notice that the loss described in the question in no way relates to the exclusion they highlight. The exclusion the carrier highlights in its denial reads:
However, the water entered the insured’s location through another entity’s basement so it was no longer water under the surface of the ground when it reached the insured’s premises.
(1) We will not pay for loss” caused directly or indirectly by any of the following, unless otherwise provided. Such loss” is excluded regardless of any other cause or event that
The carrier owes this loss based on the wording provided.
contributes concurrently or in any sequence to the loss”. (g) Water 1) Flood, meaning the partial or complete inundation of normally dry lands areas due to:
The Virtual University is a Big “I” members-only resource. Many articles are based on real-life questions received by the Ask an Expert service. This service ensures that the information is current and topical. Go to www.independentagent.com/Education/VU/. You will need to login with your IIABA username and password before using the VU. The IIABA does not assume and has no responsibility for liability or damage which may result from the use of any of this information.
wisconsin INDEPENDENT AGENT
JUNE 2019 27
Instant Training Plans! Content from: New Level Partners
Do you have an Intern joining your agency this summer? Are you hiring new-to-insurance talent? The education development team at New Level Partners has collected best practices from their members. This is how they maximize their budget and build a flexible and proven training plan. We have instant training solutions for easy access. Let us help you create a training plan that fits your budget:
INTERN PLAN •
Introduction to Insurance 7 Courses = 3.5 hours of training for $80
•
Business Communication Fundamentals 5 Courses = 2.5 hours of training for $80
Tip: Schedule two to three courses a week and create a conversation around the content. Assign the intern recap questions to bring back to the content to their role.
COMMERCIAL INSURANCE NEW HIRE PLAN •
Commercial Lines Coverage Basics 30 Courses = 15 hours of training for $275
•
Business Communication Fundamentals 5 Courses = 2.5 hours of training for $80
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Tip: Schedule three courses a week by coverage line. Select an inhouse client account and assign a review with questions for the new hire. Discuss together.
PERSONAL INSURANCE NEW HIRE PLAN •
Personal Lines Coverage Basics 21 Courses = 10 hours of training for $175
•
Business Communication Fundamentals 5 Courses = 2.5 hours of training for $80
•
Client Management Essentials 6 Courses = 3 hours of training for $80
Tip: Schedule three courses a week along with review of personal products offered at your firm. Recommend that the new hire take notes and share them with you. Start the new hire inputting new business applications or reviewing upcoming renewals. Empower them to identify 3-5 questions they have about each account. View these and all your New Hire Training options at www.iiaw.com.
GOVERNMENT AFFAIRS
Joint Finance Committee Hits Reset Button On Governor’s Budget Plan The Legislature’s 16-member budget committee started budget deliberations over Governor’s Evers’ two-year spending plan with the removal of 131 items from further consideration in the 2019-21 state budget. The Republican-controlled Joint Finance Committee voted 12-4 on partisan lines to strip 71 non-fiscal policy items and 60 additional items contained in the Governor’s original budget proposal that he introduced in late February.
What the final product looks like and when a budget bill is enacted into law is anyone’s guess right now. In the meantime, the Finance Committee continues to meet and vote on their budget plan. The committee is expected to wrap-up its work in early June and then both the full Assembly and Senate will take turns voting before sending a budget to the Governor.
EXECUTIVE
LEGISLATIVE COMMITTEE
LEGISLATURE
EXECUTIVE
State agencies make budget requests in the fall of evennumbered years.
The budget is received by the Joint Finance Committee of the Legislature.
Assembly or Senate receives budget, makes changes, then send budget to other house of Legislature to make changes.
Governor reviews budget passed by Legislature, vetoes portions, and signs remainder into law.
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Committee makes changes and votes on budget.
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Committee holds public hearings.
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A budget is proposed by the Governor and sent to the Legislature in January or February.
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Such action will undoubtedly further strain already tense relations
Legislature sends to the Governor, he may veto the bill in part or he may veto the bill in its entirety. Add to it the other complicating factor that Republicans in the Senate don’t necessarily agree with the Assembly on the appropriate level of spending and priorities.
The Budget Process in Wisconsin
➝
Removal of these items by the committee from the Governor’s budget plan as one of its first formal actions is certain to make reaching a final budget agreement between the Evers administration and the Republican Legislature a lot more challenging. The Finance panel went even further in announcing its formal process of deliberating the remaining portions of the budget with the co-chairs of the committee announcing that they will use, as its starting point, the adjusted base budget which essentially pushes the hard reset button on the Governor’s budget plan. Since May, the committee has been voting and crafting its own budget proposal to submit to the Governor for his consideration. It’s an unusually bold move, but not without precedent, especially when there is divided government between the political parties. Although technically, Governor Evers’ budget recommendations will be before the committee when they formally vote, it will now take a majority vote of nine members to include any of the Governor’s provisions in the committee’s final version of the state budget.
between Governor Evers’ administration and the Republicancontrolled Legislature, and possibly could lead to significant delays in getting a final budget agreement in place for the next two years. The biggest question remains not if, but how, Governor Evers will use his powerful veto pen when a final budget is sent to him by the Legislature. In Wisconsin, the Governor is empowered with a sweeping line-item veto. Wisconsin governors have the power to strike out words, numbers, and even entire sentences from appropriations bills, including the $83.5 billion biennial state budget, the largest of them all. Depending on the final version of what the
With sufficient votes, the Legislature can override any of the Governor’s vetoes. That rarely happens.
A Conference Committee of the Legislature may meet to reconcile the versions passed by the two houses.
Begins in fall of even-numbered years
Summer of odd-numbered years WISCONSIN BUDGET PROJECT
> Misha Lee IIAW Lobbyist wisconsin INDEPENDENT AGENT
JUNE 2019 29
ERRORS & OMISSIONS
Planning “Plans are nothing. Planning is everything.” Dwight Eisenhower; President, General of the Army
I recently attended my daughter’s graduation from St. Louis University (Go Billikens!) and the commencement speaker was the United States Ambassador to Ireland, Kevin O’Malley. A double SLU graduate (Business, Law), he began his comments with a simple statement from former President Dwight D. Eisenhower: “Plans are nothing. Planning is everything.” The President’s statement referred to the United States’ battle plans during World War II. They were continually being revised to address changing circumstances. The Ambassador’s message to the graduates was while you may think you have a plan for your life, that plan will change as your circumstances change. The same is true for you as an insurance professional. While you may have a business plan in place, change in circumstances may cause you to modify your plans. As you plan for your agency’s future, your staff’s future, your own future, circumstances, mostly in the form of market forces, cause you to change your business plan to adapt to those forces. And the same is true about agency risk management. Over the last 25 years, think about some of the things that have changed the way you do business and helped you to change your risk management. One of the first was the change from agency billed policies to direct bill policies. Until the late 1980’s to early 1990’s, virtually all insurance agencies sold the carriers’ policies and also collected the premiums. Then, carriers began the process of “direct bill”, especially for renewals. From a risk management standpoint, this was one of the best improvements as it did two things: 1) took the agencies out of the money handling business, which was a significant cause of E&O loss due to discrepancies regarding payment of premiums, and 2) it removed the agency from the process of notifying the customer when the premium was due and cancellation of the policy for failure to pay, one of the largest areas of E&O loss at the time. Unfortunately, we still see some claims involving the notification of insureds when their premium is due, even though the agent has no such duty to do so, but they’re due to the agencies not adapting to changes in the market which have removed them from this part of the transaction and continuing to insert themselves when they have no such duty. Numerous articles are available on the IIABA Virtual University and E&O Happens if you want more information about how to avoid this exposure. Another significant area that has just recently been on the rise is that insurance carriers are no longer requiring agents to submit signed applications for insurance policies they write for
30 JUNE 2019
wisconsin INDEPENDENT AGENT
their customers. In fact, many carriers’ online systems may not even allow agents to submit applications or the applications they submit do not match the criteria used to underwrite or price the risk. While the carriers may believe this streamlines the process, it eliminates the ability to defend an E&O claim when a dispute arises as to the risk that was being insured. However, we have seen many agencies that have adapted and are planning their own internal systems to create appropriate documentation even when the carriers have not done so. Yet another area that is causing E&O exposures is that of technology in general. Agency websites, Facebook, smart phones, tablets and many other forms of technology were unheard of as little as 15 years ago. Now, they are everywhere and makes planning for these technologies crucial to conducting business. You should especially take into account how your agency can protect its information and itself from E&O claims arising from new technology. As General Eisenhower said, “Plans are nothing. Planning is everything.” Protect your agency from potential E&O claims by planning continually to adapt as circumstances change in your business. This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article do not necessarily represent the views of the Swiss Re Group (“Swiss Re”) and/or its subsidiaries and/ or management and/or shareholders. *Richard F. Lund, JD, is a Vice President and Senior Underwriter of Swiss Re Corporate Solutions, underwriting insurance agents errors and omissions coverage. He has also been an insurance agents E&O claims counsel and has written and presented numerous E&O risk management/ loss control seminars, mock trials and articles nationwide since 1992. Copyright 2016 Swiss Re
>R ichard F. Lund, J.D.,
Vice President, Senior Underwriter, Swiss Re Corporate Solutions*
We help people feel secure and make life better when bad things happen
Partners Mutual Insurance is proud of the rich history we have enjoyed since our founding in 1931. So, when we affiliated with Penn National Insurance, a super regional carrier in 2012, we set out to accomplish even more. Together we bring the personal attention and local focus of a regional carrier, along with the products and services of national carriers. We want to partner with the best agents and are appointing select top-performing agencies in Wisconsin. Interested in partnering with a thriving insurance carrier with superior customer experience? Contact Mike Ottman at 262.432.3418; Ottman.Michael@PartnersMutual.com Or visit our website at partnersmutual.com
We help people feel secure and make life better when bad things happen
An Equal Employment Opportunity/Affirmative Action Employer ©2019 Partners Mutual Insurance
• 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
News Members in the
About Arlington/Roe Arlington/Roe is a family-owned managing general agency and wholesale insurance broker headquartered in Indianapolis, Indiana with offices also in Tennessee, Ohio, Michigan, Illinois, Kentucky, Missouri, Minnesota and Wisconsin. Arlington/Roe was founded in 1964. Arlington/Roe’s specialty departments include Aviation, Bonds, Farm, Personal Lines, Commercial Lines (Underwriting and Brokerage), Transportation and Garage, Professional Liability, Workers’ Compensation and Healthcare & Human Services. The company writes in excess of $220 million in annual premium. Arlington/Roe’s Tennessee office is located at 555 Marriott Drive, Suite 275, Nashville, TN 37214.
WEST BEND MUTUAL INSURANCE IS A TOP/ BEST WORKPLACE WEST BEND, WI (May 14, 2019) – West Bend Mutual Insurance Company was once again named to this year’s list of the Milwaukee Journal Sentinel’s Top Workplaces which recognizes the best places to work in Southeast Wisconsin. A total of 150 companies were named to the Top Workplaces list in 2019. Ranked number two in the large company category, this is the eighth consecutive year in which West Bend has placed in the top four.
Great Place to Work® and Fortune Magazine also named West Bend one of the top-30 Best Workplaces in Financial Services & Insurance. “The recognition we continue to receive as a top workplace is very meaningful,” said Kevin Steiner, West Bend president and CEO. “Our associates are our greatest asset and we have a responsibility to create and maintain a positive workplace. The fact that, year after year, our associates provide feedback that has earned us these top rankings is outstanding. Congratulations to all of our nearly 1,300 associates who work hard to make West Bend Mutual Insurance a special place.”
Cindy Harvey Transportation Underwriter charvey@arlingtonroe.com 800-878-9891 EXT 8765
Joni Denny Transportation Underwriter jdenny@arlingtonroe.com 800-878-9891 EXT 8707
RIVER VALLEY INSURANCE ANNOUNCES NAME CHANGE TO IB INSURANCE. Leading Insurance Agency Looks to Expand Services and Reach.
HARVEY AND DENNY JOIN ARLINGTON/ ROE’S TRANSPORTATION TEAM Indianapolis, IN -- Jim Roe, CPCU, president and CEO,
announced the appointment of Cindy Harvey and Joni Denny to the transportation team at Arlington/Roe, managing general agency and wholesale insurance broker. Cindy Harvey has prior varied experience at a wholesale and specialty insurance broker and a commercial property and casualty insurance company. Cindy has been in the insurance industry since 1997 and is knowledgeable in helping agents find solutions for a variety of transportation and inland marine risks. She earned her degree from East Tennessee State University. Joni Denny previously worked at a wholesale and specialty insurance broker and has been underwriting garage insurance since 2000. Her experience in building a garage underwriting department as well as her desire to provide excellent customer service to agents will further enhance the transportation team’s services. Joni sits on two insurance carrier advisory boards for garage liability and has completed leadership development programs. # # #
32 JUNE 2019
wisconsin INDEPENDENT AGENT
Wausau, WI – May 28, 2019 – River Valley Insurance is changing its name after extensive market research and analysis of changing trends in the insurance industry. IB Insurance will serve as the agency’s new name going forward. Company officials reported that the name change will be effective immediately. Although IB Insurance serves businesses, families and individuals throughout the United States, the agency’s primary customer base is located in Wisconsin and Michigan’s Upper Peninsula. The insurance agency is a wholly owned subsidiary of River Valley Bank, which is also undergoing a name change to IncredibleBankSM. Bryan Troyer, President of IB Insurance said, “Our name change to IB Insurance is a direct result of the increasingly competitive world of insurance and financial services where there are dozens of companies using the River Valley name. We need greater differentiation and a fresh look as we escalate our level of customer service and expand our product offerings. What you
will see is an innovative and bold insurance agency with the same ownership and leadership, the same trustworthy team with years of experience that will continue to deliver exceptional customer service, but now with a new name.” IB Insurance will continue to offer a full range of personal, commercial, employee benefits and life insurance solutions to a wide range of customers and industries. Troyer added, “With our new name, we will be better positioned to expand our sales and service footprint to include other regions of the country. At the same time, we will continue to differentiate ourselves by providing outstanding service and solutions to our customers.”
ROBERTSON RYAN ACHIEVES 450 VOLUNTEER HOURS IN 1 BUSINESS DAY May 22, 2019 (Milwaukee, WI) Robertson Ryan & Associates hosted their third annual Community Service Day on Wednesday, May 15, 2019. “As a top 100 US insurance agency, Robertson Ryan has made a commitment to give back. Beyond helping our clients protect their homes and businesses, we want to make the communities we live and work in better,” said Allan Degner, Robertson Ryan’s Vice President of Marketing. The annual day of service is organized by Robertson Ryan’s Employee Engagement Committee. An impressive 145 Robertson Ryan team members hit the streets of in the communities we serve taking on varying projects benefiting 20 unique charities and non-profits. The 145 RRA team members took 3-4 hour volunteer shifts from painting, to seasonal grounds cleanup to making blankets and baking. The day was all about making a difference. The non-profits included: • • • • • • • • • • • • • • • • • • •
Elmbrook Humane Society Wisconsin Independent Learning College Food Pantry of Waukesha County Fleece Blanket Making Baked Goods Deliveries to Local Fire Departments Family Enrichment Center of Ozaukee County Cristo Rey Jesuit High School Feeding America SE WI am and pm shifts Hunger Task Force-The Farm Penfield Children’s Center Wisconsin Humane Society MacCanon Brown Homeless Sanctuary Boerner Botanical Gardens Hunger Task Force of La Crosse Gulf Coast Humane Society in FL Three Square Food Bank-Las Vegas Humane Society of AZ Goodwill of Green Bay Sauk Prairie Theatre Guild
The day of service and spirit of community goes far beyond a single day of giving. In the community, our contributions are driven through the civic, educational and charitable causes we support. Many members of the Robertson Ryan team personally sit on community boards and speared fundraising efforts making a difference with their time and talent throughout the year. “We recognize our business is about people and want to thank those who have helped us succeed along the way. It is our goal to make wide reaching and positive impacts in the communities we serve,” added Degner.
### Founded in 1960, Robertson Ryan & Associates, Inc. offers a broad range of solutions for Business, Benefits and Personal Insurance. We counsel and assist more than 30,000 clients from small businesses to national accounts in all industries. With over 250 team members and 130 insurance companies we are the largest independent agency in WI and 54th largest privately held agency in the nation. Robertson Ryan is unique in that each agent is an Agent Owner. Learn more at www.robertsonryan.com.
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