Wisconsin Independent Agent | May 2024

Navigating the impact of AI in cybersecurity, getting started with generative AI and more!

CONTENTS

COVER STORY: AI's Impact on the Insurance Industry

May is AI Month at Catalyit. Read about navigating the impact of AI in cybersecurity, how to incorporate generative AI into your agency's operations and more.

3 Common Myths About Coverage for Dirt Bikes

RPA vs. AI: What's the Difference?

Talking in Code: Natural Disasters Prompt Conversations About Improving Building Codes

Please Support IIAW Insuring Wisconsin PAC This Election

INDEPENDENT INSURANCE AGENTS OF WISCONSIN

725 John Nolen Drive Madison, Wisconsin 53713

Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com

2023-2024 EXECUTIVE COMMITTEE

President:

Mike Ansay | Ansay & Associates

President-Elect: Joanne Lukas Szymaszek | Risk Strategies Company

Secretary-Treasurer:

Dan Lau | Robertson Ryan Insurance

Chairman of the Board:

Nick Arnoldy | Marshfield Insurance Agency, Inc.

State National Director: Steve Leitch | Leitch Insurance

2023-2024 BOARD OF DIRECTORS

Janel Bazan | Avid Risk Solutions/Assured Partners

Beth DeLaForest | Aspire Insurance Group, Inc.

Mike Harrison | R&R Insurance Services, Inc.

Jason Knockel | Kunkel & Associates, Inc.

Aaron Marsh | Marsh Insurance Services, Inc.

Andrea Nelson | Unisource Insurance Associates, LLC

Brad Reitzner | M3 Insurance Solutions

IIAW Staff

Matt Banaszynski | Chief Executive Officer

608.256.4429 • matt@iiaw.com

Mallory Cornell | Vice President 608.210.2975 • mallory@iiaw.com

Kim Kramp | Accounting Supervisor 608.210.2976 • kim@iiaw.com

Trisha Ours | Director of Insurance Services 608.210.2973 • trisha@iiaw.com

Evan Leitch | Agency Solutions Advisor 608.210.2971 • evan@iiaw.com

Kim Fiene | Marketing & Communications Director 608.210.2977 • kimf@iiaw.com

Jeff Thiel | Director of Agency Success 608.256.4429 • jeff@iiaw.com

Andrea Michelz | Education & Membership Engagement Coordinator 608.210.2972 • andrea@iiaw.com

Diana Banaszynski | Events Coordinator and HR Business Partner 608.256.4429 • diana@iiaw.com

Ali Smeester | Accounting Specialist 608.256.4429 • ali@iiaw.com

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. © 2024

For information on advertising, contact Kim Fiene, 608.210.2977 or kimf@iiaw.com.

In 1919, A group of Pennsylvania farmers founded Penn National Insurance to provide affordable workers’ compensation insurance.

Today, Penn National Insurance sells property-casualty insurance in 12 states by partnering with more than 1,200 independent agency operations. In 2012, we affiliated with Wisconsin-based, Partners Mutual Insurance Company. As one company, we bring the personal attention and local focus of a regional carrier, along with the quality of products and services of national carriers.

Interested in partnering with a thriving insurance carrier with superior customer experience? We are looking for select commercial lines-oriented agencies in Wisconsin.

For more information, contact one of our territory managers.

Vicki Lentz

262-432-3420

vlentz@pnat.com

Clayton Zogata

715-383-5454

czogata@pnat.com

We help people feel secure and make life better when bad things happen

• Strong financial performance and A.M. Best Financial Strength Rating of A (Excellent) Positive Outlook

• 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

Company Spotlight

Penn National Insurance

Penn National Insurance is small enough to provide personal, caring interactions, but large enough to serve agents and policyholders with the same sophistication of the largest carriers. We back our promise to help people feel secure and make life better when bad things happen with our strong financial position, and we remain committed to distributing our products and services through independent agencies.

"We chose to do business with Penn National Insurance because they value relationships. Their entire team - underwriters, managers and senior leadership are always available and looking for ways to help us grow our agency. They take a common sense approach to underwriting and trust their agents to do good field underwriting.”

Partner with us if you are seeking:

• An accessible management team that really knows you and your agency

• Consistency in underwriting

• A dependable and fair approach to claims handling

• Local knowledge and presence in your markets

• A carrier that listens and responds, builds long-term relationships

"Spectrum Insurance does business with Penn National Insurance because of the local connections we have with the Wisconsin branch. They have great products and coverages that are similar to the national carriers, but operate like a regional carrier, which makes for a great partnership with our agency."

Darrel Zaleski, Spectrum Insurance Group

Diverse

array of commercial and personal coverages

In addition to the traditional Commercial and Personal insurance coverages, we offer a wide range of coveragerich endorsements known as PennPacs.

Our PennPacs provide valuable coverage and limit enhancement on Business Auto, Businessowners, General Liability, Property, Workers' Compensation and Inland Marine, geared to a market's need.

For our Home and Auto policyholders, we offer great coverage at an affordable price, plus many additional coverages like Roadside Assistance, New Care Replacement coverage and Auto Loan/Lease coverage.

For homeowners, we offer valuable additional coverages, including, Equipment Breakdown, Underground Utility, Loss Assessment and Identity Theft for added protection.

Penn National Insurance, headquartered in Harrisburg, Pa., sells property-casualty insurance through a network of more than 1,200 independent agency operations. In addition to the Harrisburg headquarters, Penn National operates offices in Pittsburgh, Pa., Brentwood, Tenn., Greensboro, N.C., Lawrenceville, N.C., and Waukesha, Wis.

Many of our PennPacs are rolled on free of charge or offered at a nominal fee.

Matt Mekemson, M3 Insurance

HOW INDEPENDENT INSURANCE AGENTS CAN USE AI

The use of AI in the insurance industry is transforming the way agents operate, streamlining processes, improving customer experiences, and enabling data-driven decisionmaking. AI technologies, such as machine learning and natural language processing, can help insurance agents automate tasks, analyze large amounts of data, and offer personalized services to their clients.

Independent insurance agents can leverage artificial intelligence (AI) in various ways to improve their workflows, enhance customer experiences, and stay competitive in the industry. Here's how independent insurance agents can use AI:

1. Automated Underwriting: AI can help agents automate the front line underwriting process by analyzing large amounts of data to assess risk more accurately and efficiently. This enables quicker policy issuance and personalized coverage options

2. Claims Processing and Fraud Detection: AI-powered systems can automate claims processing by verifying information, assessing damage, and detecting potential fraud. This leads to faster claims resolution and reduces the risk of fraudulent activities. Agents can leverage and utilize the same technology carriers do to stay relevant during a claim.

3. Customer Service Chatbots: AI chatbots can handle customer inquiries and provide

support 24/7, improving customer satisfaction and freeing up agents' time to focus on more complex tasks.

4. Personalized Marketing and Sales: AI can analyze customer data to help agents target potential clients more effectively, tailor offerings to their needs, and create personalized marketing campaigns.

5. Risk Assessment and Management: AI can help agents assess risk more effectively by identifying patterns and trends in large data sets. This allows agents to offer personalized recommendations and better manage client portfolios.

6. Quote Generation and Comparison: AI-based platforms can generate quotes quickly and accurately by analyzing a client's information and comparing offerings from multiple insurers. This streamlines the quoting process and helps agents provide competitive quotes.

7. Data Analysis and Insights: AI can help agents analyze data from various sources to gain insights into market trends, customer behavior, and performance metrics. This allows agents to make data-driven decisions and improve their business strategies.

8. Client Retention and Engagement: AI can help agents identify clients who may be at risk of leaving and create targeted

retention strategies. It can also personalize communication and services to keep clients engaged.

9. Workflow Automation: AI can automate repetitive tasks such as data entry, document processing, and policy management, allowing agents to focus on high-value activities such as building relationships with clients.

10. Product Recommendations: AI can analyze a client's profile and insurance history to provide personalized product recommendations, helping agents tailor their offerings to meet individual client needs.

By embracing AI technologies, independent insurance agents can enhance their productivity, streamline their processes, and provide better service to their clients. AI can help agents stay competitive in a rapidly evolving industry and adapt to changing customer expectations.

Together with Catalyit, we have identified a variety of AI companies working with independent insurance agencies. Should you have any questions pertaining to any emerging technology or company, please don’t hesitate to reach out. I, the IIAW team or Catalyit would be happy to assist you as you look to identify the right technology company for your agency.

Matt’s Mixology

The Enlightenment Cocktail

AI has the potential to revolutionize the insurance industry, making it more efficient and customer-focused. By adopting AI technologies, insurance agents can enhance their workflows, offer better services, and remain competitive in a rapidly evolving industry. Companies like the ones we have identified in our list, and others, provide innovative AI solutions that agents can leverage to improve their business operations. As AI continues to advance, it will be crucial for insurance agents to stay informed about emerging technologies and partner with companies that offer the most impactful and reliable AI solutions. The IIAW is here to assist you in determining the right technological solution for your agency.

View our list of AI

on pages 8-9.

The thinking person’s whiskey and a beer, or a dressed-down champagne cocktail? Either way, it's delicious!

Ingredients

• 2 oz. bourbon

• 1/2 oz. fresh lemon juice

• 1/2 oz. pomegranate syrup

• Light (or light-flavored) beer, chilled

• Tools: Shaker, Strainer

• Glass: Cocktail

Directions

Put the bourbon, lemon juice, syrup and ice in a shaker. Shake and strain into a chilled glass. Top with beer.

Photo courtesy of Food & Wine. Recipe courtesy of Imbibe Magazine.

> Matt Banaszynski, CEO, IIAW

AI PLATFORMS FOR INDEPENDENT INSURANCE AGENCIES

GAIL by LULA | Category: Chatbot

Website: lula.is/gail

GAIL is a voice powered AI tool that is capable of having human like conversations, built to lower Customer Acquisition, and Support costs.

Total CSR | Category: Chatbot

Website: totalcsr.com/ask-ellie

Total CSR's Ellie is the ultimate AI-powered tool specially crafted for insurance agents. With ‘Ask Ellie’, you gain access to an array of tools that will transform the way your insurance agency operates. Ellie can help with understanding complex insurance concepts, creating engaging marketing messaging, offering professional development support, and improving customer service interactions.

Brightside | Category: Chatbot

Website: brightsideai.com

The Brightside Assistant allows you to summarize, analyze, and compare complex insurance policies in seconds. Brightside takes the complexity out of understanding insurance policies and transforms them into clear, actionable knowledge.

Exdion | Category: RPA

Website: exdion.com

Exdion is a proprietary AI-driven extraction engine and broker-specific tools improve sales, minimize human errors, and raise consumer satisfaction

Podium | Category: Chatbot

Website: podium.com

Beat your competition with Podium's lead conversion platform, powered by AI and ready to integrate with the tools you already use.

ProNavigator | Category: Chatbot

Website: pronavigator.ai

ProNavigator is an AI-driven knowledge management chatbot that's built for insurance and brings all your company’s knowledge together for easy organization, discovery and sharing.

Quandri | Category: RPA Website: quandri.io

Quandri's AI-powered solutions automate repetitive tasks that become costly, time-consuming, and burdensome as you scale, including renewal reviews, document naming, and the daily download process.

Chatbase | Category: Chatbot

Website: chatbase.co

With Chatbase, you can create customizable AI chatbots using your own knowledge base.

Hexomatic | Category: Chatbot

Website: hexomatic.com

Build a custom GPT for customer support, lead generation, and engaging users. Includes features like "Revise answers" and "Confidence score" for accurate responses.

re:tune | Category: Chatbot Website: retune.so

The missing platform to build your AI apps. Use it to build your own AI powered apps. No coding required.

Pictory | Category: Video Website: pictory.ai

Say goodbye to complicated video editing software. The Pictory technology allows you to create and edit professional-grade videos using just text.

ReachOut.ai | Category: Video Website: reachout.ai

ReachOut.AI allows you to deliver personalized 1:1 videos without recording anything.

Robomotion RPA | Category: RPA Website: robomotion.io

Robomotion robots are designed for high-efficiency concurrency at scale, with the capability to execute multiple automation sequences simultaneously. They feature a multi-branching ability, allowing the creation of unlimited static or dynamic branches with a single robot.

Warm Welcome | Category: Video Website: warmwelcome.com

Connect with clients through real-time or recorded video. Send personal video emails. Features include Video Contact Pages, Video Business Cards, Video Email Signatures.

Afforai | Category: Writing Website: afforai.com

Afforai is a reliable and trustworthy AI in-depth research assistant and Chatbot. From complex topics to niche inquiries, Afforai delves into millions of sources to bring you trusted insights you can count on.

Albato | Category: Writing Website: albato.com

Albato is an all-in-one, no-code platform for automating your workflow. Seamlessly integrate the apps you use daily and watch the magic happen. With 600+ available apps and over 170,000 automation scenarios, the possibilities are endless!

BHuman | Category: Video Website: bhuman.ai

BHuman helps you foster authentic connections with your customers like never before. Our groundbreaking AI technology empowers you to create personalized videos at scale that truly look and feel real.

BIGVU | Category: Video Website: bigvu.tv

Platform to create short videos that integrates with their mobile app. Record on your desktop or on the go - it all syncs.

OpenAI ChatGPT | Category: Chatbot Website: openai.com

OpenAI created ChatGPT, the most popular AI platform. There is a free version and a Pro (paid) version.

Peppertype.ai | Category: Content

Website: peppercontent.io/peppertype-ai

Peppertype.ai helps you create high-quality content in no time. Say goodbye to hours spent brainstorming and let their AI-powered tool do the magic for you.

Speechki | Category: Audio Website: speechki.org

Automatically transform written content into high-quality audio. With Speechki's AI Realistic Voice Generator, you can now experience over 1,100 voices in more than 80 languages!

Hexofy | Category: Marketing Website: hexofy.com

Hexofy is the ultimate web-scraping companion. No more time-consuming copy-pasting. With their incredible 1-click web scraping tool, you can gather data from any web page effortlessly.

Adobe Podcast AI | Category: Audio Website: podcast.adobe.com/enhance

Clean up audio quality for free with Adobe Podcast AI.

Brain Pod Ai Writer | Category: Content Website: brainpod.ai

Brain Pod helps you take your content creation game to a whole new level. Violet is their AI writer and no-code platform that will change the way you create content for your agency. Whether you need blogs, articles, or social media posts, Violet will help save you time.

Eleviant | Category: RPA/Bot Website: eleviant.com

Specially built for the unique process needs of Insurance brokers and agencies, our bots can integrate into your AMS and make complex processes- simple. Examples include: Policy renewals bot, commission statement reconciliation bot, notice of cancellation bot, CSR24

Account Setup bot, document retrieval bot, policy transaction processing bot, file moving, fill forms, collect and collate data, data extraction, and more.

HelloScribe | Category: Content Website: helloscribe.ai

Ever wished you could magically automate your writing, research, and brainstorming tasks? HelloScribe is designed to make your life easier! No more staring at a blank document or feeling overwhelmed by endless notes. You can put your writing on AutoPilot and watch the ideas flow effortlessly. HelloScribe is designed to assist you throughout the entire writing process - from organizing your thoughts to generating insightful research.

Gaya AI | Category: RPA/Bot Website: Gaya.ai

Gaya's AI-powered technology scans and extracts data from carrier portals, or Agency Management Systems (AMS). It can also extract information from physical documents including carriers' declaration (dec) pages and Acord Forms. Once the data is captured and added to your Super Clipboard, Gaya seamlessly pastes this information automatically filling carrier portals and other insurance web systems.

Jasper | Category: Content Website: jasper.ai

Jasper is an AI copilot for driving outstanding performance and is used by over 100k businesses. Jasper leverages its AI to generate compelling, tailored content that truly resonates with your target audience.

Tractable | Category: Chatbot Website: Tractable.ai

Tractable’s AI lets customers send photos and measurements of damaged areas via a web-based app, making the dream of instant, insurer-calibrated assessment

a reality. For vulnerable areas like roofs, our intelligent AI can draw on aerial imagery to compare and model damage. In times of crisis, our Applied AI prioritizes cases and reduces time spent on in-person appraisals.

Claude | Category: Content

Website: claude.ai

Claude is an AI chatbot created by Anthropic, an AI safety and research company paving the way for reliable, interpretable, and steerable AI systems. They focus on ensuring the safety and future of artificial intelligence. Claude Pro offers significantly increased usage limits compared to the free service, with the number of messages depending on factors like message length, attachments, and conversation context. Users receive a warning when they are close to the limit, which resets every 8 hours. These limits balance Claude's availability for free users while optimizing performance for power users. The cost is $20 per month

DOCUGAMI | Category: RPA/Bot

Website: Docugami.com

Commercial Lines policy documents, Business Auto Liability, Large market RFPs with Proposals, Quotes, and Certificates of Coverage, COI data, Loss Runs, Carrier documents, all the ACORD forms... It is document chaos, with all the important data essentially buried, due to the effort involved in uncovering it. Docugami can extract the data you need from chaotic, complex documents, automatically, bringing structure and order to your business.

CAPE Analytics | Category: Underwriting

Website: Capeanalytics.com

Deeply predictive insights that help carriers quote, underwrite, rate, and renew home and commercial property insurance policies with improved ratios—all in an automated environment. Provide instant quotes that more accurately reflect risk. Catch undesirable risks earlier in the funnel. Fast-track desirable risks and mitigate adverse selection. Improve customer and agent experience by providing an accurate quote upfront. AND MUCH MORE.

Tango | Category: Training

Website: Tango.us

Create software training walkthroughs in minutes. Embed your training inside the software your employees use. Software Knowledge Layer helps you create training guides by just doing the process, and deliver them to employees where and when they need them. Click through your process and Tango AI instantly creates a how-to guide with screenshots, annotations and descriptions you can customize.

Xilo | Category: RPA/bot

Website: Xilo.io

Grow your insurance agency with our modern Workflow Automation Platform. Reduce data entry, streamline quotes, modernize your customer experience, and elevate agent productivity, all while reducing costs in your business. XILO has all of the integrations, customer-facing portals, and automation you need to streamline and modernize your insurance agency quoting process.

Canopy Connect | Category: Chatbot

Website: Usecanopy.com

Knowing a prospective client's current insurance information allows them to properly advise them of risks and potential coverage gaps that they may not be aware of. Agents can use Canopy Connect to have their clients securely share their insurance information.

This is not meant to be a comprehensive list and represents our assessment of these companies.

Navigating the Impact of AI in Cybersecurity

Artificial intelligence (AI) holds a multifaceted role in the world of cybersecurity. It’s a tool that promises significant benefits, including improved threat detection, enhanced malware identification, and efficient vulnerability assessment. However, it also brings complexities and considerations. In this blog post, we’ll explore the dual nature of AI in cybersecurity, recognizing both its advantages and the need for careful consideration.

The Positive Impact of AI in Cybersecurity

Advanced Threat Detection

AI, driven by machine learning and deep learning, excels at analyzing vast data sets quickly. This enables the identification of patterns and anomalies that may signal potential security threats or intrusions. The result is faster and more precise threat detection, ultimately reducing the risk of security breaches.

Effective Malware Detection

The ever-present threat of malware finds a formidable adversary in AI-based algorithms. These algorithms can be trained to detect and classify malware based on behavior, characteristics, or signatures. Whether it’s analyzing code samples, scrutinizing network traffic, or observing system behavior, AI aids in identifying known malware and even detecting previously unseen or zero-day attacks, thus bolstering defenses against evolving threats.

Efficient Vulnerability Assessment

AI streamlines the process of identifying vulnerabilities in systems and applications. By examining code, configurations, and security patches, machine learning algorithms automate vulnerability scanning. They also prioritize highrisk vulnerabilities and recommend appropriate patches or remediation actions, reducing the window of exposure and minimizing the potential for exploitation.

Balancing the Use of AI in Cybersecurity

Automation and Speed

AI’s automation capabilities are valuable, but they should complement human decision-making rather than replace it entirely. Striking the right balance ensures that security teams can leverage AI’s speed and accuracy while maintaining human oversight and judgment.

Enhanced Accuracy and Scalability

AI’s ability to analyze vast datasets is a strength but also requires vigilance. Inaccurate data or biased algorithms can lead to errors. Ongoing monitoring and adjustments are essential to maintain AI’s effectiveness and fairness.

Future Readiness

AI’s adaptability to evolving threats is advantageous, but it also raises concerns. It’s

MAY IS AI MONTH

May is dedicated to Artificial Intelligence (AI) at Catalyit. This month, you can learn how to incorporate Generative AI (GenAI) into your agency's operations.

We'll publish weekly articles covering a wide range of topics, from how-tos to best practices. Additionally, you can join our fourpart webinar series hosted by Steve Anderson to engage in interactive sessions. We'll showcase new solutions, helping you get to know the players. Take a look at reviews, listen to the opinions of experts, and more!

Check back weekly for the latest information. catalyit.com/generative-ai

essential for organizations to anticipate the potential for AI-driven attacks and consider the ethical implications of using AI in cybersecurity.

In the realm of cybersecurity, AI is a versatile tool that brings both promise and complexity. Its advantages in threat detection, malware identification, and vulnerability assessment are undeniable. However, organizations must navigate the challenges and ethical considerations that come with its use. Striking a harmonious balance between leveraging AI’s benefits and addressing its potential risks is vital to maintaining a secure digital landscape. As AI continues to evolve, it remains an indispensable ally in safeguarding digital assets effectively.

Getting Started with Generative AI

Check out our special series on using Generative AI (GenAI) in your agency.

Why it matters: GenAI is here to stay, and Catalyit can help you leverage it. After completing these four sessions, you will have the confidence to use GenAI tools in your agency, the knowledge to get your staff on board, and an abundance of new ideas to explore.

Sign up for this FREE webinar series: catalyit.com/catalyit-live

Friday, May 3 at 10 AM CT

Learn how to communicate with ChatGPT and get started with GenAI.

During the session, you will discover:

• What GenAI is and how it can help your agency

• Witness its superpowers in action

• Learn about best practices

• Have the opportunity to try it out for yourself

• Find GenAI opportunities that could benefit your agency

Friday, May 10 at 10 AM CT

Learn how to utilize GenAI in your marketing, sales, and customer service efforts.

During this one-hour session:

• Discover the best techniques to generate ideas and transform them into content to share with your customers

• Learn how GenAI can enhance your website's SEO

• Create automatic Google Review responses to save time and improve your customer service

Friday, May 17 at 10 AM CT

Discover how to utilize GenAI to enhance your business intelligence.

Steve will focus on:

• Capturing Unstructured Data

• Manipulating Data

• Customer Profile

• Knowledge Base

• Manage Commission Matching

Friday, May 24 at 10 AM CT

Create stunning images, audio, and video content with GenAI.

Join us for a fun learning experience where we will show you:

• Who the players are and how they work

• What projects you can do today with these tools

• How to use LinkedIn Lead Gen

See What's New at Catalyit

At Catalyit, we are dedicated to providing our members with the best experience. We have been working hard to make several exciting improvements, including a sleek new design, updated guides, a dedicated member homepage, and tons of new content.

Explore All the Possibilities with Catalyit's Guides

Start your search for a new solution with Catalyit's Guides. Our guides let you compare solutions in minutes.

What's New

• New Layout: Discover what you are searching for faster.

• Comparison Grid: Make informed decisions by comparing solutions sideby-side.

• Who's Who?: Take a closer look at the key players in one place.

• State of Tech Report: Learn what solutions your peers use and how they rate them.

• Resources: Stay informed with the latest insights and product demos.

Popular Guides

• Agency Management System

• Cybersecurity

• Generative AI, Chatbots, & RPAs

• Marketing & Sales

• Quoting Platforms - Commercial

• User Communities

Bottom Line: If you're searching for new options or seeking guidance on improving, start with Catalyit's Guides.

Narrow Down Your Options with Catalyit's TechSelector Tool

Know what features you're looking for but not sure which solution is right for you?

Narrow down your options with the Catalyit TechSelector™ tool.

Available Now

• Agency Management Systems

• Digital Payments

• Quoting Platforms - Commercial

• VoIP Phone Systems

Bottom Line: With so many options available, it can be overwhelming. Our TechSelectors will make your decision easier. Check back often - more are on the way.

WHY GENAI IS IMPORTANT FOR INSURANCE AGENTS

In today's rapidly changing industries, the empowerment that Generative AI (GenAI) brings to insurance agents cannot be overstated. GenAI has revolutionized various sectors, and the insurance industry is no exception. Let's explore how GenAI is crucial for insurance agents, enhancing their decision-making processes and making them more effective.

The Role of GenAI in Data Analysis

One key way GenAI enhances insurance agents' decisionmaking is through its precise ability to analyze vast amounts of data. With traditional methods, it would be nearly impossible for agents to process such large datasets efficiently. However, GenAI algorithms can quickly sift through information and extract meaningful insights.

To illustrate this point, the following are a couple of examples:

1. How much easier would it be to analyze production data instead of trying to create a report from your AMS? You could export the production data, add it to a custom GPT designed to understand it, and simply ask questions.

2. GenAI can analyze a large amount of unstructured information (a prospect list copied from a website page) and organize it into a table that can be imported into your CRM.

3. A few agents have streamlined the commission reconciliation process by using GenAI to compare two reports and reconcile the differences, saving hundreds of hours of tedious work.

GenAI simplifies tasks, enhances customer service experiences, detects fraud effectively, and constantly improves its capabilities through ongoing learning processes.

Making Work Easier with AI

Insurance agents are often bombarded with numerous claims and customer inquiries daily. Before the integration of GenAI, handling these tasks required significant time and resources. However, with the advent of GenAIpowered automation, these processes have become more streamlined

Gen AI-powered chatbots are starting to change customer service in the insurance industry. These intelligent virtual assistants can handle simple customer questions and provide updates on claims without requiring human intervention. Using Natural Language Processing (NLP) algorithms, chatbots can understand customers' questions and promptly respond accurately.

The Time-Saving Advantage

By automating routine tasks such as claim handling and customer query responses through GenAI technologies like chatbots, insurance agents can save valuable time that can be redirected towards more complex aspects of their work.

These tools will not remove humans from the process. They will augment your employees, allowing them to use their skills on behalf of the customer. This time-saving advantage allows insurance agents to focus on tasks requiring human expertise, such as assessing complex risks, analyzing data trends, and providing personalized recommendations to clients. By eliminating mundane and repetitive tasks, GenAI empowers insurance agents to deliver a higher level of service and expertise to their customers.

The Importance of Personalization

When it comes to customer service, one size does not fit all. Each individual has unique needs and preferences, and addressing them effectively requires a personalized approach. GenAI empowers insurance agents by analyzing vast amounts of customer data and extracting valuable insights. Agents can tailor their services by understanding their customers on a deeper level.

One of GenAI's remarkable abilities is its capacity to predict future behaviors based on historical data analysis. With this capability, insurance agents can anticipate their customers' needs even before explicitly expressing them.

For example, if an agent notices that a customer recently bought a new car through an AI-powered system analyzing data patterns from various sources like social media or public records databases, they can proactively reach out with tailored recommendations for auto insurance coverage options.

Enhancing Satisfaction and Loyalty

By using AI to provide personalized experiences, insurance agents can significantly enhance customer satisfaction

levels. When individuals feel valued and understood by their insurer, they are more likely to develop trust in the company's capabilities. This trust translates into increased loyalty toward agents as customers perceive their unique requirements consistently being met.

GenAI also enables quick response times by automating routine tasks such as claim handling or policy updates. This eliminates delays and frustrations commonly associated with traditional manual processes. When customers receive prompt attention and resolution to their questions or concerns through chatbots or automated systems powered by GenAI algorithms specifically designed for these purposes in real-time without human intervention unless necessary, their satisfaction levels improve.

Future Outlook: The Impact of Advancing GenAI on Insurance

Looking ahead, it's clear that GenAI will play an even more significant role in shaping the future of insurance. Here are a few key areas where we can expect GenAI to have a transformative impact:

1. Enhanced Risk Assessment - GenAI-powered algorithms can analyze vast amounts of data from various sources, enabling insurers to better evaluate risks associated with different policyholders. By considering factors such as demographics, health records, and even social media behavior, GenAI can provide insurers with a comprehensive understanding of individual risk profiles.

2. Improved Customer Experience - GenAIdriven chatbots and virtual assistants have already revolutionized customer interactions within the insurance industry. These intelligent systems can handle routine inquiries, provide policy information, and even assist with claims processing.

3. Preventing Fraud - Insurance fraud is an ongoing challenge for the industry. However, GenAI has proven highly effective at detecting fraudulent activities through pattern recognition and anomaly detection techniques.

4. Streamlined Claims Processing - Traditionally, claims processing has been a time-consuming task requiring manual intervention and extensive paperwork. However, GenAI technology has already transformed this process by automating various steps.

5. Predictive Analytics - AI's ability to analyze large datasets and identify patterns makes it an invaluable tool for predictive analytics within the insurance industry. By leveraging historical data, insurers can make more accurate predictions about future trends, risks, and customer behavior.

Insurance agencies that embrace GenAI will gain a competitive advantage by offering more personalized

products and services while minimizing risks. However, agencies must strike a balance between embracing new technologies and maintaining ethical practices that protect customer privacy and ensure fair treatment for all policyholders.

As we enter this exciting era of AI-powered insurance solutions, insurers must remain agile, adaptable, and committed to leveraging emerging technologies to benefit their customers.

Collaboration between Humans and AI

It's important to note that while GenAI is incredibly efficient at many previously manual tasks, human expertise is still essential in making final decisions. The collaboration between humans and GenAI creates a powerful synergy that enhances agency operations. By leveraging GenAI's analytical capabilities, insurance agents can focus their expertise on client relationships.

GenAI's Continuous Learning Process

Artificial intelligence is built on algorithms that enable it to learn from data and adjust its behavior accordingly. With each interaction, GenAI systems gather valuable insights that can be used to refine their decision-making processes. By analyzing patterns, detecting trends, and adapting to new information, GenAI continually improves its ability to assist insurance agents.

As GenAI systems learn from these patterns, they can provide insurance agents with tailored recommendations for each customer based on their unique circumstances. This not only ensures better coverage but also helps agents offer personalized solutions that effectively meet individual needs.

GenAI's continuous learning capabilities are crucial for insurance agents to deliver better outcomes for themselves and their customers. By continually absorbing new information, refining decision-making processes, automating routine tasks, and providing real-time insights, GenAI empowers agents with the tools they need to excel in a rapidly evolving industry.

GenAI is developing rapidly. Today is the worst this technology will be. Insurance professionals need to embrace these advancements actively. By staying up to date with the latest developments in GenAI and leveraging its power effectively, insurance agents can position themselves as trusted advisors who provide personalized solutions tailored to each customer's unique needs. In doing so, they will thrive in the industry and ensure their customers' long-term success and satisfaction.

> Steve Anderson, Catalyit CEO & Co-founder

AI AND E&O EXPOSURES

As many of you know, we cannot discuss the excitement of AI without including at least one page about the E&O risks and exposures. Not to worry, however. There shouldn’t be too much that would keep you up at night or be a barrier to moving forward on your AI journey.

When considering AI for your agency, I believe there is much more upside than risk, particularly for the agency itself. Many risks can be mitigated through strong risk transfer language in contracts or engagement with the companies and the data produced.

1. Data Quality Issues: AI models heavily depend on the data quality they are trained on. If the training data is biased, incomplete, or inaccurate, the AI system may produce flawed results, leading to errors and omissions. The agency’s responsible for managing the workflows and processes associated with inputting data. More proactively, review your agency data before exploring AI for the agency.

2. Algorithmic Bias: AI algorithms can inadvertently learn biases in the data, leading to discriminatory or unfair outcomes. This can result in legal liabilities and reputational damage for organizations using AI systems. Your knowledge and experience becomes essential as you review the outcomes and prepare any client-facing documents generated by AI.

3. Model Complexity: AI models, especially deep learning models, can be highly complex and difficult to interpret. If users cannot identify how AI arrived at its decisions, fixing errors may be challenging. This ranges from customers receiving marketing materials to product recommendations on insurance coverage.

4. Regulatory Compliance: Organizations using AI must comply with various regulations and standards related to data privacy, security, and fairness. Again, enlisting the help of professionals in this space is essential as you consider how and where your data and intel will be used.

5. Cybersecurity Risks: AI systems may be vulnerable to cybersecurity threats. Completing a cybersecurity scan and utilizing the appropriate means to protect your agency and its data should be at the forefront of the business – even if you’re not using AI.

6. Deployment and Integration Challenges: Implementing AI systems into existing workflows and processes can be complex. Integration issues can lead to unintended consequences and E&O risks, so once again, reviewing your agency data to ensure complete and accurate client files should be an ongoing task of the agency.

To effectively mitigate E&O risks, an agency should continue regular E&O risk mitigation activities, focus on data integrity, and educate internal staff on the goals of utilizing AI. Whenever new technology or workflows are introduced within an agency, the team typically receives ongoing training, workflows, and tools to help successfully onboard the process. It should not be any different with AI. Ensure the team is ready to accept the change and there is 100% buy-in where it is needed.

Agency owners do not need to be experts in AI; they should seek external assistance from AI companies, Catalyit, IIAW staff, and their SwissRe E&O providers.

> Mallory Cornell, Vice President, IIAW

NEED ACCOUNTING SERVICES?

WHAT WE DO WHO IS BEST FIT FOR OUR SERVICES

•Day-to-Day Bookkeeping

•Payroll Processing

• Direct & Agency Bill Reconciliations

• Financial Statement Preparation

• Annual Budget Preparation

• Work With Your External Accountants For Tax and Auditing Needs

WHO WE ARE

Our services are best fit for agencies lacking financial acumen on staff, agencies with mature staff looking forward to retiring and agencies looking for additional bookkeeping knowledge and support.

Our team of dedicated agency accounting specialists are ready to assist you!

Kim Kramp Agency Supervisor kim@iiaw.com

Ali Smeester Agency Accounting Specialist ali@iiaw.com

Originally featured in the IIAW's 100th anniversary convention highlights, 1999

3 COMMON MYTHS ABOUT COVERAGE FOR DIRT BIKES

The global dirt bike market was valued at $4 billion in 2022 and is estimated to grow to $9.5 billion by 2032, an 8% compound annual growth rate, according to Global Market Insights. The growth, encouraged by the pandemic-era emphasis on outdoor recreation and leisure activities and rise in outdoor recreational facilities, is also being propelled by technological advances in dirt bikes and the adoption of electric dirt bikes.

“Over the last few years, we have seen an increase in the number of dirt bike (off-road motorbike) policies we have issued," says David Knapp, director of specialty product management at Foremost, a Farmers Insurance company. “While all-terrain vehicles still dominate the off-road market, it appears consumers are realizing that off-road motorbikes are an affordable recreational option."

“In terms of the dirt bike market, growth really took off during the pandemic," agrees Steve Gartman, motorcycle product manager, Progressive Insurance. “I didn't hear any inventory issues that were specific to dirt bikes, but it's likely there were some supply constraints given the issues supply chains faced during that time frame. As far as we can tell, those are resolved."

With the increasing popularity, “customers now have more options to insure optional equipment, helmets [and other] safety apparel, transport trailers and personal property," Knapp says. “Some carriers also have policy packages that have unique coverage features like diminishing deductibles or deductible waivers built in."

As the dirt bike market develops, there has been a shift “away from true off-road dirt bikes and toward dual sport bikes, which are essentially dirt bikes that are designed to be ridden either on-road or offroad," Gartman says. “This shift has big coverage implications since legally insurance is typically not required for dirt bikes that are off-road only—but it definitely is required for bikes that are ridden onroad."

While coverage isn't a legal requirement for off-road dirt bikes, that doesn't mean consumers don't need it. “Not having insurance at all brings the risk of personal liability for injuries and property damage," Knapp says.

Here are three myths about dirt bike insurance that independent insurance agents can educate clients on:

1) “My dirt bike is covered under my homeowners policy." “Homeowners policies typically exclude coverage on any motor vehicles," Gartman says. “Even if there is coverage, it will likely be limited and only extend to claims that occur on your property. Standalone dirt bike policies ensure you have exactly the coverage you need."

“In addition, by having standalone dirt bike insurance, claims will typically not affect your homeowners [insurance] rates," he adds—a fact that will likely be very important to clients, given the affordability and accessibility crisis plaguing the homeowners insurance market.

2) “If my dirt bike isn't worth much, I don't need insurance." “Aside from helping to protect your bike, dirt bike insurance can be extremely helpful in paying for your medical expenses if you have an accident, or in protecting you from liability if you cause damage or injure someone with your dirt bike," Gartman says.

3) “I don't need insurance because I have a ton of riding experience." “While new riders are more likely to have an accident, we see claims regularly from riders of all experience levels," Gartman says.

While accidents are a reality at all stages of ownership, “dirt bike riders are most likely to have an accident in their first year owning a bike regardless of their level of experience," he adds. “Even experienced dirt bike riders are more than twice as likely to have an accident in their first year with a bike that is new to them than for bikes that they have been riding for a long time—which is why it's important to have the right coverage."

Safety First

Of course, the best insurance claim is the one that doesn't happen in the first place. Here are some safety tips that agents should warn their clients about to reduce the risk of incidents:

1) Safety equipment. “Wearing a helmet and safety apparel is always a good idea and can help prevent severe injuries and liability risk," Knapp says. Safety equipment includes a Department of Transportation (DOT)-compliant helmet, goggles, long sleeves, long pants, over-the-ankle boots and gloves, according to the Motorcycle Safety Foundation (MSF).

2) Maintenance. Off-road motorbike owners should always keep their bikes maintained, as wear and tear can lead to unexpected events, Knapp warns.

3) Supervision. “Many of these types of vehicles are driven by guests or youthful operators," Knapp says. “Additional care, instruction and coverage may be warranted." For all levels of experience, the MSF instructs dirt bike riders to use a buddy system and never ride alone on remote trails.

> AnneMarie McPherson Spears, IA News Editor, Big 'I'

EMERGING LEADERS

Who We Are

What We Do

The IIAW Emerging Leaders is a statewide network of insurance professionals striving for professional growth through education, leadership development, legislative involvement and insurance career perpetuation. The group hosts a variety of in-person and virtual events throughout the year to allow members to learn, network and grow professionally.

The IIAW Emerging Leaders is committed to offering best-in-class professional development and networking opportunities for insurance professionals across the state.

Who Should Join

Young insurance professionals who are looking to enhance their career and build relationships within the industry.

We create experiences to help members build their careers and integrate best practices.

We develop meaningful relationships between agents, carrier representatives and association members.

We provide unique professional development opportunities (industry simulations, personal development, speakers, webinars, etc.).

We engage future industry decision-makers in events and volunteer roles.

Running a successful food truck business is hard work, but finding the right insurance program for your client is easy with West Bend.

Our business insurance program covers liabilities and expenses specifically for food truck professionals and their operations.

• Great pricing and exceptional coverage

• Experienced claim representatives

• Convenient options for reporting losses – available 24/7

Learn more about the variety of business line coverages available through West Bend by visiting thesilverlining.com. The worst

RPA VS. AI: WHAT’S THE DIFFERENCE?

The use of technology is exploding in the insurance industry. While many uses for AI and RPA have existed for some time, newer and more sophisticated applications are being used. Whether it’s policy-checking, customer servicing, automating tasks or even offering coverage recommendations based on big data, new technology is being infused into the everyday processes insurance professionals are tasked with. This is leading to greater efficiency with more time being spent on tasks only humans can do while AI, RPA and other technology are completing the repetitive and time-consuming tasks. You may have heard of RPA and AI, but there are differences between the two technologies and their roles in the insurance industry.

RPA stands for robotic process automation. It’s customized software that mimics human actions and tasks by following a set of pre-built rules and procedures. RPA is best used for tasks that are repetitive and follow a set of rules for being completed. RPA can be implemented in an agency relatively quickly and efficiently. Since it’s a program that is completing the tasks while following a set of rules, accuracy and compliance are nearly 100%, and it easily includes a complete audit trail of the process. In contrast to artificial intelligence where AI is capable of thinking, learning and creating, RPA is a task-oriented and process driven program.

There are a variety of RPA uses cases in the insurance industry. Some may include: account

setup in the management system, policy renewal processes, document retrieval from carrier websites, policy checking and even integrations for legacy applications that may not “talk” to other systems.

While RPA by itself is beneficial to agents, it’s AI or the combination of RPA and AI that allows technology to solve and complete more complex and sophisticated situations. Since AI is making a splash into the insurance industry, this will establish new ways for agents to save time on nuanced or repetitive tasks and spend more time on revenuegenerating opportunities.

Artificial intelligence (AI) is the hot topic right now in the industry. While RPA has existed for years, the modernization and significant improvement of AI has allowed RPA and other technology to boost their capabilities. When thinking of AI, it’s the brain of technology. While RPA is driven by processes and instructions provided by the user, AI is data-driven and intended to simulate human intelligence.

There are a few different categories of AI. Chatbots, at the most basic level, typically use Narrow AI that is trained on a specific task and completes it at a faster speed than what humans would be able to do. Most AI experienced today is a step further, artificial general intelligence (AGI), which incorporates learning and thinking to complete

a wider range of actions. Generative AI, such as ChatGPT, fits within this category. Another feature within AGI is machine learning. With machine learning, AI learns from existing data to generalize and make assumptions about new information in order to complete tasks or identify important information without explicit instructions. The steps beyond this (artificial superintelligence), the sci-fi level of AI, where the AI is self-aware and constantly building and reacting to its surroundings. This is quite literally AI that has a mind of its own.

As AI continues to advance, encompassing everything from narrow AI for specific tasks to the realm of artificial general intelligence, the possibilities for enhancing insurance operations are boundless. Chatbots, machine learning, and generative AI exemplify the diverse applications of AI, each contributing to a more intelligent and adaptive insurance ecosystem. As technology continues to evolve, insurance professionals must embrace the opportunities presented by RPA and

AI to stay ahead in an increasingly competitive landscape.

The distinction between RPA and AI lies in their functionalities and capabilities, yet it's their integration that holds the key to unlocking unprecedented efficiency, innovation, and value in the insurance industry. Embracing this technological evolution is not merely an option but a necessity for insurance professionals looking to thrive in the digital age.

Is there a task you that you want AI to complete or solve? Find the solution provider or ask Catalyit at catalyit.com/generative-ai

> Evan Leitch, Agency Solutions Advisor, IIAW

TALKING IN CODE: NATURAL DISASTERS PROMPT CONVERSATIONS ABOUT

IMPROVING

BUILDING CODES

Natural disasters are a top business concern for U.S. commercial insureds, especially after 2023 brought 28 natural disasters that cost at least $1 billion in damages apiece, according to the National Oceanic and Atmospheric Administration (NOAA). Further, 36% of property stakeholders across the country have suffered damage from natural disasters in the past five years—and that jumps to more than half (59%) of property stakeholders in hurricane-prone states, according to a recent Agency Forward survey from Nationwide.

Unfortunately, current building codes are leaving property owners vulnerable. Nationwide's survey found that 84% of commercial property stakeholders acknowledge that building codes need to be improved to better equip properties to face climate risks. Fifty-three percent of respondents said they'd be willing to spend more to increase their structure's resiliency against weather, with a median investment of $20,000. That jumped to 57% in wildfire-risk states and 66% in hurricane-exposed states.

In fact, 52% of commercial property stakeholders nationally, and 66% in hurricane states, say they are already building or repairing their properties to standards above current code requirements.

However, the insurance industry must advocate for improved building codes that acknowledge the reality of increasing climate risk, says Mark Berven, president and COO of Nationwide's property & casualty

organization. And property owners agree. Nearly all—97%—of the Nationwide survey respondents said enhancing building standards would better help protect their properties.

“Businesses really believe that having stronger building standards is vital and they're willing to pay for that protection," Berven says. “Sometimes, that's a dynamic that agents are concerned about, but the survey gets directly to the point: folks know that weather and climate change is a real risk that could interrupt their business; it's a concern they're willing to invest in, and they want to know what else they can do."

Building codes are usually designed at the local level by states and local municipalities, but “it's important to collectively talk about the building code dynamic and what we can do as carriers, trade groups and local agents to work with those in charge of codifying or enforcing building standards," Berven says.

The Insurance Institute for Business & Home Safety (IBHS), of which Nationwide is a founding member, is a nonprofit research organization that closes gaps in building science to strengthen the nation's resilience against the growing threat of severe weather and wildfire. IBHS research flows into achievable, affordable and effective solutions to guide building practices, retrofits and mitigation programs for residential and commercial properties.

IBHS's FORTIFIED Home™ and FORTIFIED Commercial™ standards are voluntary construction and re-roofing standards that offer superior resiliency to high wind events. Nineteen FORTIFIED Commercial properties were put to the test in 2020 when Hurricane Sally hit the Alabama coast, and all 19 performed well, which allowed their occupants to recover quickly in the aftermath. The overall damage equated to less than .05% of the total building cost.

“The recovery after a natural disaster costs on average between $20,000 and $50,000, which impacts insurance costs—but maybe more impactful is the amount of time the recovery took, which was four to six months," Berven says, citing the Nationwide survey. “That's significant downtime."

As clients struggle with natural disasters, “agents should definitely make sure they have the right coverage in place if an event should occur, such as business interruption, scheduling the insured

properties at the right value, all those immediate concerns. But what do you do to make sure this is a better risk moving forward?" he says. “That's at the forefront of every customer's mind."

“Business owners are all well aware of the fact that severe weather events are a significant risk to their business," Berven adds. “You're really resonating with a client as an agent when you bring forth a conversation about preventative measures that a business owner can take in order to reduce loss."

This article was originally featured on iamagazine.com in April 2024.

> AnneMarie McPherson Spears, IA News Editor, Big 'I'

When business owners look to purchase business insurance, they often wonder how much insurance they need. Other common questions include:

• What types of insurance do I need?

• What should my coverage limits be?

• How much does insurance cost?

Society Insurance has put together a guide to better understand these questions so you can know what to expect when purchasing insurance for your business.

Understand What Insurance You Need

The first step in figuring out how much insurance your business needs is understanding what coverage you legally require. For example, workers' compensation, unemployment, and disability insurance have legal requirements that vary by state. Make sure to check which laws apply to your area so you know your obligations.

Other types of insurance may be relevant to specific operations. For instance, liquor liability is necessary for businesses that serve and sell alcohol. Your Society Insurance agent can help you identify your unique risks to help create a plan that’s personalized for you.

Here are some additional types of business insurance to consider:

• General Liability Insurance is recommended for all businesses and provides coverage for claims involving injuries or property damage. One of the most common types of insurance claims is for slips, trips, and falls. General liability insurance helps protect your business and customers and can cover medical expenses if an injury occurs on your property.

• Fire Insurance helps protect against damages and losses caused by fires, which is especially important for businesses like restaurants that have higher risks for fires.

• Business Income Interruption Insurance offers reimbursements for businesses forced to close due to covered causes of loss. For instance, if your business has a fire and can’t operate as usual, business income interruption insurance can reimburse you for the loss of income during the period of restoration.

• Cyber Liability Insurance helps protect against data breaches and other forms of cyber attacks. This coverage is especially important for small businesses as they are often the victims of cyber attacks and may not be able to cover the costs of an attack as well as a larger company.

• Umbrella Insurance may provide additional coverages beyond some of the limits of other insurance policies. Some banks and property managers may require you to have umbrella insurance to protect their assets and properties, so make sure to verify if it’s a requirement for your business.

FOR YOUR BUSINESS?

HOW MUCH INSURANCE DO YOU NEED

Know What Coverage Limits Your Business Needs

Most insurance policies come with two coverage limits: an aggregate limit and a per-occurrence limit. The aggregate limit is the maximum amount your insurer will pay out for all claims during the policy period. The per-occurrence limit is the maximum amount your insurer will pay for individual claims.

If you rent your business’s property location, your bank or property managers may set minimum coverage limits for certain insurance policies, like general liability insurance, that you’re expected to meet. This is typically done to ensure that their property assets are being protected to an acceptable degree. Make sure you’re aware of any coverage limits you’re expected to meet before purchasing insurance.

Factors That Affect the Cost of Business Insurance

The cost of business insurance varies. Below are some factors that may affect your premiums.

• Your Business’s Industry: Each industry and workplace has different risks that come with the job, and those risks will affect how much your insurance costs. Businesses that are deemed high-risk have higher insurance premiums than those at lower risk. For example, a construction firm will have a much higher risk than a bookstore because of the kind of work performed.

• Number of Employees: Businesses with fewer employees can typically expect to pay less for insurance than those with a lot of employees. The potential for claims may increase with more employees that could suffer an injury at work.

• Location: Certain areas are more likely to experience severe weather events and natural disasters, which can lead to an increase in the price you pay for property insurance.

• Your Coverage Limits: As discussed in the previous section, you may be required to have coverage limits that meet or exceed a minimum amount set by a bank or property management company. A higher coverage limit generally correlates with having a higher monthly premium.

• Your Insurance History: Businesses that have never filed an insurance claim or suffered heavy losses will most likely pay less than businesses that have filed for many losses.

To learn more about the small details that can make a big difference for your business and to find your local Society agent, visit societyinsurance.com

This information is provided as a convenience for informational purposes only and does not constitute legal or professional advice. It is provided to assist you in recognizing potential unsafe work problems or conditions and not to establish compliance with any law, rule or regulation.

PLEASE SUPPORT IIAW INSURING WISCONSIN PAC THIS ELECTION

The Wisconsin fall 2024 elections are fast approaching, and candidate campaigns are about to go into full swing. As your association lobbyist at the state capitol, I would like to take this opportunity to appeal to each and every IIAW member and associate member to please consider supporting the Insuring Wisconsin PAC this election year. Your participation is critically important.

The political action committee (PAC) is your Wisconsin state association’s political giving arm that helps support state candidates for public office who value the importance of the Property and Casualty insurance industry in Wisconsin and the vital role of independent agents in an increasingly challenging market environment. Insurance is heavily regulated at the state level, and those regulations and laws can directly impact your job and bottom line. The PAC plays an integral part in the association’s state advocacy efforts on your behalf and empowers IIAW members to voluntarily participate in the political process beyond just voting at the polls. Elections can be costly, and political donations are the lifeblood of most candidate campaigns. They fund necessary functions such as advertising, staff, travel, and getting the candidate's message out to voters. This financial backing can significantly increase a candidate's chances of success, and as an association, we collectively want to support candidates who care about our members.

Wisconsin has been front and center for several election cycles as one of the most closely contested, pivotal battleground states that play a major role in deciding who is elected. Much is at stake for the industry and profession with all 99 members of the Assembly up for re-election and 16 members of the Senate, not to mention the Presidential, U.S. Senate, and two very competitive congressional races on the ballot. This election will be more important than ever because the margins determining who wins and loses Wisconsin will be extremely close and will also impact down-ballot state legislative races. With new legislative district maps in place this election, for the first time in more than a decade, Republican control of both houses in the Legislature is up for grabs, especially where Democrats and their allies are working aggressively to take back control of the Assembly this year with the Senate in play two years from now.

For more information on how you can get involved and make a donation to the IIAW Insuring Wisconsin PAC, please visit the secure online donation page at www.iiaw.com/donations/donate.asp?id=6417

Thank you in advance for supporting your association’s government affairs advocacy in Wisconsin.

> Misha Lee IIAW Lobbyist

NEW DEPARTMENT OF LABOR FINAL RULE FOR INDEPENDENT CONTRACTOR CLASSIFICATION

Many independent insurance agencies have long relied on independent contractor relationships for some or all of their producer sales force. As such, twists and turns in recent years surrounding the legal parameters for analyzing independent contractor status have been top of mind for association members (and frequent fodder for this column). In the latest development, on January 10, 2024, the U.S. Department of Labor (DOL) published a final rule regarding how to determine whether an individual is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The new rule took effect on March 11, 2024. This column will provide an overview of the new rule; for a more detailed discussion, I encourage you to visit my firm’s website at www.gklaw.com and read the January 17, 2024 Labor & Employment Newsletter article on this topic (you can also subscribe to the newsletter).

Why it Matters: Background of the FLSA

The FLSA generally requires employers to pay non-exempt employees at least the federal minimum wage for all hours worked and overtime at a rate of one-and-one-half times the employee’s regular rate of pay for all hours worked in excess of forty hours in a defined workweek. In addition to the payment obligations, the FLSA: (1) requires employers to provide reasonable break time(s) and a place for covered nursing employees to express breast milk at work, (2) prohibits retaliation against employees who engage in protected activities (such as filing a complaint regarding their pay), and (3) requires employers to make, keep, and preserve certain records. However, the FLSA does not apply to or protect independent contractors. Consequently, the DOL is particularly concerned with ensuring employees are not misclassified as independent contractors.

While the FLSA does not define “independent contractor,” the DOL defines such individuals as workers who, as a matter of economic reality, are not economically dependent on an employer for work and are in business for themselves. Such individuals may commonly be referred to as “freelancers,” “self-employed,” etc. Based on this definition, it follows that an “employee” is a worker that is economically dependent on an employer for work and is not in business for themselves.

Historical DOL Guidance and the New Final Rule

For many decades, analysis of economic dependency involved examining the totality-of-the-circumstances: considering multiple factors in a way that did not view any one factor as having a predetermined weight, importance, or significance over any other factor. Pre-2021 DOL informal guidance included a framework of seven factors, but the ultimate focus was on the specific relationship between worker and employer. In 2020, under the Trump administration, the DOL tried to add more structure to

this framework and proposed a new five-factor test, which focused on the employer’s right to control the work and the worker’s opportunity for profit or loss. Finalized in January 2021, implementation was delayed when the Biden administration took office and has been the subject of litigation over whether the new administration could simply withdraw the rule. Ultimately, the DOL decided to promulgate a new final rule, which rescinds the 2021 rule.

The new final rule returns to the longstanding totality-ofthe-circumstances analysis of the economic reality test in which factors do not have a predetermined weight and are considered “in view of the economic reality of the whole activity.” The six factors under the new final rule for analyzing whether a worker is an employee or independent contractor include:

• The worker’s opportunity for profit or loss depending on managerial skill

• Investments made by the worker and the employer

• The degree of performance of the work relationship

• The nature and degree of control over performance of the work

• The extent to which the work performed is an integral part of the [potential] employer’s business

• Use of the worker’s skill and initiative.

These factors are not exhaustive, and additional factors may be considered if the factors in some way indicate whether the worker is in business for themself, as opposed to being economically dependent on the potential employer for work.

What should my agency do now?

To ensure compliance with the DOL’s final rule, agencies should review relevant producer agreements and the practical realities of how their independent contractors are operating—an analysis that should be revisited periodically in the rapidly-evolving insurance marketplace. If your agency has questions about the application of this rule, you should work with legal counsel.

> Josh Johanningmeier, IIAW General Counsel

Members in the

News

SOCIETY INSURANCE ADDS JAMES BENGTSON AND CHAD ZIERKE TO EXECUTIVE TEAM

FOND DU LAC, Wis. (March 26,2024) — Society Insurance welcomes James Bengtson, vice president – chief actuary and Chad Zierke, vice president – chief claims officer to its executive team.

In his role as vice president – chief actuary, Bengtson works closely with Society’s teams to balance profitability and growth through product and rate changes, the reinsurance program, reserve estimates, data and predictive analytics. Previously, he served as vice president, chief actuary at Armed Forces Insurance, with leadership responsibilities in pricing, analytics, reserving, compliance and reinsurance.

Bengtson holds a bachelor’s degree in mathematics and a master of business administration (MBA) degree, both from Emporia State University. He is a Fellow of the Casualty Actuarial Society (FCAS).

“James brings a variety of multidisciplinary experience to his new role at Society,” said Heather Boyer, Society Insurance president & CEO. “He will contribute to all aspects of our actuarial operations and will work closely with our products and underwriting teams to ensure a prudent risk profile and competitive pricing that reflects the risks we insure.”

As he and his family relocate to Wisconsin, Bengtson plans to become active in his new community through volunteer work and church activities.

Serving as vice president – chief claims officer, Zierke oversees all operations within Society’s three claims departments: property/auto/liability claims, workers compensation claims and claims services. In his previous executive claims roles at Nationwide Insurance, Zierke managed commercial claims operations and claims shared services including system innovation, process automation,

predictive analytics and modeling to realize claims efficiencies.

Zierke earned a bachelor’s degree in business management from the University of Northern Iowa. He holds the Chartered Property Casualty Underwriter (CPCU) and Associate in Claims (AIC) designations from The Institutes.

“Chad will lead our claims operations as Society’s first chief claims officer,” said Boyer. “Working with our outstanding claims departments, Chad will oversee strategic alignment and create new synergies as all claims employees operate within a unified framework.”

ACUITY EARNS A+/STABLE RATING FROM STANDARD & POOR’S

Acuity announced that Standard & Poor's (S&P) has reaffirmed the insurer’s A+ long-term financial strength and issuer credit ratings with a stable outlook.

Acuity also has an A+ financial strength rating from AM Best, offering independent agents and customers the financial security of two superior ratings and ranking Acuity in the top 19 carriers nationally based on financial strength ratings.

“Our dual A+ ratings demonstrate that we have a foundation of financial strength and stability needed to drive continued business expansion, protect a growing number of customers, and provide rewarding jobs for more and more employees,” said Melissa Winter, Acuity President. “These independent affirmations also validate Acuity’s strategy, which has produced long-term financial results that have outperformed the industry.”

In its rating affirmation, S&P noted Acuity’s consistent operating earnings with a record of maintaining a strong underwriting margin in small commercial business, ample capital headroom to absorb sizable losses, and a strong balance sheet with no financial leverage with exceptional liquidity. S&P also stated that Acuity’s credit fundamentals, including the diversity of its business and improved profitability margin, supported the rating affirmation.

Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures nearly 150,000 businesses, including nearly 350,000 commercial vehicles, and more than 550,000 homes and private passenger autos across 32 states. Rated A+ by AM Best and S&P, Acuity employs more than 1,600 people.

CONNECT WITH A PERSONAL SOAR GUIDE TO IDENTIFY A PATH TO START OR GROW YOUR INSURANCE AGENCY.

SOAR is a free Big “I” member service in which a dedicated association professional connects with your agency to help you navigate essential member resources.

Through brief conversations designed to hone in on how we can best meet your agency needs with existing Big “I” membership programs, a SOAR guide will help your agency develop a personalized plan for maximizing the benets of your Big “I” membership investment.

SOAR then plugs your agency in to specic resources designed to protect, enhance, or grow your business. SOAR focuses on six key areas a startup/emerging agency needs:

IIAW CONTINUING EDUCATION

2024 ONLINE EDUCATION & CE CLASSES

DATE MAY COURSE SCHEDULE

TIME COURSE

MAY

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SEE

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Gigs and Side Hustles - The Insurance Issues

Understanding (and Managing) the Largest Gov’t Benefits: Social Security

Watch Your Six - A Half Dozen Ethics Scenarios for Insurance Professionals

Why Business Income is the MOST Important Property Coverage

Why Certificates of Insurance - Just Why?

Farm and Insurance Issues- Top Ten Cases of the Last Decade (Or So)

Commercial Lines Claims That Cause Problems

Agency Management Based E&O and Ethics

Adding Value In Personal Lines

To Be or Not to AirBnb - Sharing Exposures and Insurance

Builders Risk and Contractors Equipment

Business Auto Claims That Cause Problems

Ethics-Creating a Winning Culture in the Agency

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

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

Understanding and Avoiding E&O Claims in an Independent Insurance Agency

E&O - Commercial Property Coverage Gaps & How To Fill Them - Part 1

Embracing Directors & Officers Liability Insurance & Understanding Claims Pote

Those Kids and Their Cars

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

Personal Lines Issues That Keep You Up at Night

Properly Calculating & Insuring the Business Income Exposure

Rules for Developing the Correct Premium

Understanding the Importance of Ordinance or Law Coverage

Workers’ Compensation

We distinguish our Workers’ Compensation coverage by providing value-added services before, during, and after a claim.

Upfront loss control measures

Responsive claims handling

Facilitation of quality medical care (when an accident does occur)

We’ve been successfully protecting our policyholders and their employees since 1983.

Our Workers’ Compensation policy is available nationwide except in monopolistic states: ND, OH, WA, and WY.