Wisconsin Independent Agent | March 2022 Magazine

wisconsin INDEPENDENT AGENT MARCH 2022

thank you, PAC Donors!

- Pages 4-6

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CONTENTS

wisconsin INDEPENDENT AGENT

COVER STORY: wisconsin INDEPENDENT AGENT MARCH 2022

thank you, PAC Donors!

- Page 4

thank you, PAC Donors!

Thank you to all of our members who donated to our PACs. Donating to our PACs ensure your best interests are represented in the halls of the Capitol.

This issue was brought to you by our Exclusive Supporting Company Members:

PAGES:

4-6

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

2021-2022 EXECUTIVE COMMITTEE President:

Marc Petersen | American Advantage - Petersen Group, New Berlin

President-Elect:

Nick Arnoldy | Marshfield Insurance Agency, Inc., Marshfield

Secretary-Treasurer:

Michael Ansay | Ansay & Associates, Port Washington

Chairman of the Board:

Darrel Zaleski | Spectrum Insurance Group, Eau Claire

INSURANCE BARTENDER.........................................................10-11

State National Director:

Insurance Customer Segmentation Market: The Next Growth Driver for Independent Insurance Agencies

Steve Leitch | Leitch Insurance, River Falls

RISKY BUSINESS.............................................................................14-15

2021-2022 BOARD OF DIRECTORS

The Great Resignation or The Great Lead Generator?

Matt Frank | Robertson Ryan & Associates, Milwaukee

PERSONAL LINES............................................................................16-17

Aaron Marsh | Marsh Insurance Services, Inc., Rice Lake

How Insurance Can Protect a Student-Athlete's Financial Future

AGENCY OPERATIONS................................................................20-21

Mike Harrison | R&R Insurance Services, Inc., Waukesha Dan Lau | Robertson Ryan & Associates, Milwaukee Andrea Nelson | Unisource Insurance Associates, LLC, Wauwatosa

How to Cultivate a Growth Mindset

Brad Reitzner | M3 Insurance Solutions, Madison

COMMERCIAL LINES....................................................................23

Chad Tisonik | HNI Risk Services, LLC, New Berlin

Joanne Lukas Szymaszek | Johnson Insurance Services, LLC, Racine

Why E&S Professional Liability is Going Through Some Rightsizing

MEMBERS IN THE NEWS..............................................................24-25

IIAW Staff

FINANCE...............................................................................................27

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

GOVERNMENT AFFAIRS.............................................................28-29

Mallory Cornell | Vice President and Director of Risk Management 608.210.2975 • mallory@iiaw.com

AGENCY MANAGEMENT...........................................................32-33

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

Should Your Agency Have An Acquisition Strategy?

Gov. Evers Calls for Taxpayer Refund in Annual State Address Are You the Future?

FOOD FOR THOUGHT....................................................................35

Trisha Ours | Director of Insurance Services 608.210.2973 • trisha@iiaw.com Evan Leitch | Agency Solutions Advisor 608.210.2971 • evan@iiaw.com

ADVERTISERS INDEX

Kaylyn Staudt | Marketing and Communications Coordinator 608.210.2977 • kaylyn@iiaw.com

ACUITY...............................................................12 Arlington/Roe..................................................34 Berkshire Hathaway GUARD....................26 IMT.......................................................................36 JM Wilson..........................................................15 Penn National...................................................22 Robertson Ryan & Associates..................17 Society.................................................................13 UFG......................................................................2 Vizance................................................................18 West Bend.........................................................31 Western National...........................................9

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

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

Diana Banaszynski | Education & Events Coordinator 608.256.4429 • diana@iiaw.com Wisconsin Independent Agent is the official magazine of the Independent Insurance Agents of Wisconsin (IIAW) and is published monthly by IIAW 725 John Nolen Drive, Madison WI 53713. Phone: 608.256-4429. IIAW does not necessarily endorse any of the companies advertising in publication or the views of the writers. IIAW reserves the right, in its sole discretion, to reject advertising that does not meet IIAW qualifications or which may detract from its business, professional or ethical standards. © 2021 For information on advertising, contact Kaylyn Staudt, 608.210.2977 or kaylyn@iiaw.com.

wisconsin INDEPENDENT AGENT

| MARCH 2022 | 3

Making insurance genuine.

SECURA isn’t like other carriers, and we’re proud of that. We put the independent agent and your customers - first.

Our independent agents value the long-term partnerships they find with SECURA and our commitment to quality coverage and service. Here are just a few of the reasons they love to work with us.

•

•

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Genuine people – Passionate, experienced associates committed to excellence and service, both for our agents and policyholders

Dave Gross President & CEO

Competitive coverage options SECURA exceeded expectations in 2020 with $792 million in direct written premium, and we’re positioned to continue this trend of profitable growth for years to come.

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Expansive product portfolio – Broad coverage for Commercial, Personal, Farm-Ag, and Specialty lines

Commercial Lines is SECURA’s largest business unit. Our expanding appetite for contractors, retail, restaurants, and numerous other markets offer coverage to fit your clients’ needs.

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Easy to do business – Committed to agentfocused solutions, like our newest online rating system, SECURA Bizlink℠, to help you grow your business

Personal Lines coverage options include our MILE-STONE® home and auto package policy, which offers the added security of Roadside Rescuer℠ and Travel Rescuer℠.

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Highly rated – Recognized by A.M. Best as A (Excellent) and Ward’s 50, not to mention high marks from agents and policyholders

Farm-Ag Lines taps the hands-on experience of former farm kids to underwrite farm-ag risks of all sizes.

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Specialty Lines provides agents and prospects with an admitted carrier option for difficult-toplace business. Clients range from fitness centers to food trucks and special events to nonprofits.

Motivated by mutual success – We meet our policyholders’ needs best by partnering with experienced, independent agents

Contact us today secura.net

4 | MARCH 2022 |

wisconsin INDEPENDENT AGENT

Commercial | Personal | Farm-Ag | Specialty

Josh P. Specialty Lines Underwriter

Erin P. Commercial Lines Underwriter

Lisa P. Wisconsin Sales Manager

Honest relationships SECURA’s team of insurance experts is making insurance genuine.

They are here to support you and your clients. Our underwriting teams are quick to reply, open-minded, and know their stuff. Plus they are backed by our caring claims group who will get your clients back on their feet.

Interested in building a relationship?

Contact us at secura.net/WI-agents.

Ryan F. Farm Lines

Underwriter

Lori M. Personal Lines Underwriter

Hear from our experts.

Want to learn more about what SECURA has to offer? Scan the QR code or visit secura.net/WI-agents for more information about the SECURA team.

thank you, 2021 InsurPac Donors!

IIAW members collectively donated $10,645 throughout 2021.

Why Donate?

InsurPac, the political action committee of the Big “I”, has helped to make your national association’s lobbying team one of the best in the country. By supporting and lobbying on important and critical issues, the Big “I” government affairs team has helped the industry with many pressing issues while always keeping the independent agents’ interests at the forefront.

InsurPac raises and distributes approximately $2.4 million each election cycle, making it one of the largest small business PACs in the country.

2021 Donors $0-$99 • Molly Anderson, Arlington Roe • Michelle Carney, John Wickhem Agency • Ryan Chambers, THZ Insurance Group • Brian Christian, MDD Forensic • Dave Cirulis, Boston Mutual • Jessica Daronco, MMC • Andrew Disher, Society Insurance • Brian Dolon, IPFS • Nick Dutton, Hanover • Joe Erickson, Marsh Insurance Services • Casey Flood, Society Insurance • Jesse Furres, Spectrum Insurance Services • Josh Johanningmeier, IIAW • Matt Karite, Hanover • Michael Keener, Keener Insurance • Jeffrey Lambert, Schmidt-Lambert Insurance, Inc. • Ryan Lambert, Service Master • Ryan Leitch, Leitch Insurance Agency, Inc. • John Lisowski, Security Financial Bank • Katie Markeland, Chubb • Melissa Martin, Burns & Wilcox 6 | MARCH 2022 |

wisconsin INDEPENDENT AGENT

• Andrea Michelz, IIAW • Carmella Moon, Marshfield Insurance Agency • Paxter Moore, Encova Insurance • Naomi Nickel, RPS • Seywer Nohre, Nohre & Co. • Zachary Nohre, Nohre & Co. • Jeff Olson, Royal Construction • Ryan Olson, Nohre & Co. • Randy Raymond, Johnson Financial Group • Zach Schmitt, Hanover • Jason Sczepaniak, Value Added Solutions • Sharm Sogal, Hippo • Diane Sprengel, Selective Insurance • Justin Stabler, JFG • Rich Stiehl, Apex • Dave Stiel, Apex • Jimmy Swift, Burns & Wilcox • Cindy Thiel, IIAW • Andrea Thunhorst, Johnson Insurance Services • Mike Tiedt, Spectrum Insurance Group • Josh Timm, Hartford • Amy Tlusty, Auto Owners • Mark Tlusty, Society Insurance • Ruth Vorwald, Johnson Insurance Services LLC • Ryan Waite, Neckerman Insurance Services • Matt Weimer, Vizance • Derek Wickhem, John Wickhem Agency • Travis Yang, MGW Law • Jonathon Zwettler, Baer Insurance Services, Inc.

$100249 • Gary Ascher, Coverra Insurance Services, Inc. • Chris Costakis, Midwest Insurance Group • Matt Disher, Madison Mutual • Ted Haase, Truyman Haase Zahn Insurance Group, Inc. • Mike Harrison, R & R Insurance Services, Inc. • Daniel Lau, Robertson Ryan & Associates, Inc. • Craig Lemke, Republic Associates of Wisconsin, Inc. • John Loppnow, Robertson Ryan & Associates, Inc. • Kevin Murray, Johnson Insurance Services LLC • Aaron Marsh, Marsh Insurance Services, Inc. • Jon Oaks, American Advantage Insurance Group Lindow Insurance • Rose Roberts, Rose Roberts Insurance Agency • Philip Schmitz, Schmitz Insurance LLC • Lisa Triscari, American Advantage Insurance Group IFS, Inc.

$500999 • Cindy Burns, Burns Insurance Agency LLC • David Fritz, TRICOR, Inc. • Michael Lauer, Lauer Insurance Agency • Joanne Szymaszek, Johnson Insurance • Michael Zahn, Truyman Haase Zahn Insurance Group, Inc. • Darrel Zaleski, Spectrum Insurance Group LLC

$1000+ • Mike Ansay, Ansay & Associates • Matt Banaszynski, IIAW

$250499 • Anton Arneson, Neckerman Insurance Services • Doug Dittman, Neckerman Insurance Services • Raymond Hansen, IIAW • Dale Kalscheur, Neckerman Insurance Services • Lois Kinlen, Neckerman Insurance Services • Lise Kobussen, Meyer Insurance Agency, Inc. • Randal Krantz, Neckerman Insurance Services • Steve Leitch, Leitch Insurance Agecy, Inc. • Marc Petersen, American Advantage Insurance Group - Petersen Group • Jeff Thiel, IIAW

Donate Today InsurPac is funded by independent agents, brokers and agencies throughout the country. Donate today at independentagent.com/governmentaffairs

wisconsin INDEPENDENT AGENT

| MARCH 2022 | 7

MAKE YOUR VOICE HEARD

Donate to Insuring Wisconsin PAC today!

Ensure your best interests are represented in the halls of the state Capitol. Your state political action committee plays a role in the IIAW's legislative success and empowers members to participate in the political process.

Visit IIAW.COM/GOVERNMENTAFFAIRS to donate to Insuring Wisconsin PAC today.

8 | MARCH 2022 |

wisconsin INDEPENDENT AGENT

YOUR CLIENT LOOKS PRETTY CONFIDENT.

They must be protected by Western National Insurance.

Western National carefully crafts policies to fit your client’s unique insurance needs – so they can feel confident in their coverage.

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INSURANCE BARTENDER

INSURANCE CUSTOMER SEGMENTATION MARKET: THE NEXT GROWTH DRIVER FOR INDEPENDENT INSURANCE AGENCIES Both agencies and carriers should be evaluating, developing and implementing a segmentation strategy.

Many carriers are developing or already have supporting strategies to meet the evolving needs of their customers.

But the question is, as you progress on this journey are you engaging with your carriers and other strategic business partners in the discussion. A well-developed segmentation strategy can help the insurance organization in dividing the market into small segments where the customer needs are similar.

Think about the groups of people in your life — family, friends, coworkers, etc. Chances are you don’t communicate with each of these groups the same way. For example, you most likely chat with your family in a different way than you do with your coworkers. You probably have different expectations of and methods of interacting with each of these groups, too. The same goes for your customers. Within your business’s base of customers, there are certainly different groups of people. The people who make up these groups have unique needs, traits, personas, pain points and expectations for your business in terms of communication and support.

channel or platform.

• Meeting specific groups of customers where they are • Identifying new opportunities for products, support, and service efficiently Now that you understand what customer segmentation is and why it’s a process worth investing time in, let’s cover the most common models and types of segmentation.

Although the following list from HubSpot doesn’t cover every type of customer segmentation, it provides you with a starting point for organizing your customers. Along with each model is an associated list of ways to segment your customers.

The key to creating and maintaining successful relationships with your business’s different customer groups is understanding their preferred styles of communication and their unique needs. This helps you effectively and efficiently meet (and, hopefully, exceed) their expectations by creating a customer experience tailored to their needs.

Why segment customers?

There are several other reasons why customer segmentation is so important. Here are a few examples of how a segmentation strategy can help agents and carriers: • Learning about your customers on a deeper level so you can tailor your content to their unique needs and challenges • Creating targeted campaigns and ads to resonate with and convert segments of customers • Improving your customer service and customer support efforts by understanding and preparing for challenges different groups are likely to experience • Increasing customer loyalty with customized content and interactions • Understanding who your most valuable customers are and why • Communicating with segments of customers via preferred 10 | MARCH 2022 |

wisconsin INDEPENDENT AGENT

Segmenting customers can be broken down into four easy steps: 1. Determine your customer segmentation goals.

Think about why you’re creating a customer segmentation strategy — ask yourself why you are spending time on segmentation and what you hope to derive from the process.

Something to note when developing your customer segmentation goals is that they’re going to be unique to your business — segmenting customers isn’t a one-size-fitsall process.

For example, your number of goals will be unique to you based on your business’s size, type and industry, as well as who your customers are.

Additionally, your goals may be relevant cross-team (e.g. marketing, sales, service) or for one specific department or business unit. So, when determining your customer segmentation goals, use your company’s specific traits and business needs as a launchpad.

2. Segment your customers into groups of your choice.

Once you have an idea of what you’re looking to get out of the customer segmentation process, decide how you’ll segment your customers. There’s no right or wrong answer here — your segment groups will depend on your specific business, customers and the goals you set in the previous step.

For example, your customers could be divided into segments and sub-segments such as: 1.

Household sector 2.

Industrial sector 3.

Trade sector 4.

Institutional sector 5.

Geographical region The household sector is a segment which could be subdivided into: • Salaried class • Self-employed; and • Retired employees.

The industrial sector could be subdivided into: • Public sector; and • Private sector.

Likewise, the other segments can be subdivided into appropriate sub-segments.

3. Target and reach your customer segments.

Once you’ve segmented your customers, it’s time to determine how you’ll target them across your organization.

By ensuring all departments (e.g. marketing, sales and service) understand how your customers are segmented, members of those departments will be able to effectively target your customers through their work.

4. Run customer segmentation analysis Analyzing your segmentation efforts will provide insight into the way you’ve organized your customers — this way, you can make updates and changes, if needed. Check in with your marketing, sales, and service teams regularly to get their opinions on any necessary segmentation adjustments. You can experiment with new ways of grouping your customers together to decide what makes the most sense.

You can also gather feedback from your customers to segment them more effectively into their appropriate groups. For example, you could conduct surveys to improve your behavioral segmentation by asking customers about their feature use and product-use habits/tendencies.

This will allow you to more accurately organize customers based on their specific behaviors.

Lastly, review the way your customers are segmented whenever you update your product or service, re-brand or revise your buyer personas. These changes may call for reorganizing some or all of your customer segments.

A well-developed segmentation strategy is paramount to fully utilizing and leveraging technology, specifically process automation.

Many carries have been rapidly expanding their Digital Process Automation or DPA. My next article will focus on what digital process automation is and how you can put it to use in your agency to increase efficiencies and profitability. If you are interested in exploring the development and implementation of segmentation strategy and levering the unique data you have on your customers, contact the IIAW today at info@iiaw.com or 608-256-4429. We would be happy to assist you and your agency through this process.

--Portions of “The Ultimate Guide to Customer Segmentation: How to organize your customer to grow better was used to help” by Kristen Baker was used to help create this article.

Matt’s Mixology

Rainbow Paradise Cocktail with Blue Curacao I don't know about you, but this drink makes me think of the beach and spring break. Give this a try while you are wasting away in Margaritaville (aka the beach) while on spring break. You'll thank me later.

Ingredients • • • • • •

4 oz. pineapple juice 2 oz. Malibu coconut rum 1 oz. water 1 oz. grenadine 1/2 oz. blue curacao ice

Recipe & Photo Courtesy of Hy-Vee

Directions 1. Pour grenadine into a 16 oz. hurricane glass.

2. Fill the entire glass with ice.

3. Mix the pineapple juice with Malibu in another cup. Pour this mixture into the glass with the grenadine syrup (stir to make the layers better and to create an orange layer).

4. Mix water with blue curacao and pour gently (using a spoon) over the yellow layer and you will see that it flows nicely and creates a green layer.

5. Serve with a lemon slice or orange twist. Cheers! wisconsin INDEPENDENT AGENT

| MARCH 2022 | 11

TOP FIVE REASONS AGENTS LOVE

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Consistently recognized as one of the best places to work in the nation.

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Filling them up now so they won’t be hungry later.

Small detail. Big difference.

You know as well as anyone that today’s cut corner can easily turn into tomorrow’s missing piece. With our forty years of experience in specialized coverage and policies developed alongside actual restaurant and bar owners, you can rest assured that your policyholders are protected against the unique risks they face every day.

If you agree that details like these make a big difference, give us a call at 1-888-5-SOCIETY or visit societyinsurance.com.

wisconsin INDEPENDENT AGENT

| MARCH 2022 | 13

RISKY BUSINESS

THE GREAT RESIGNATION OR THE GREAT LEAD GENERATOR? Since the beginning of the pandemic, employee turnover and retirements have reached all-time highs across many industries. The insurance industry has seen its fair share of panic, competition, and overhaul, but with a potential tapering coming later this year it’s time to look for opportunity (if you haven’t done so already).

Human Resource professionals are not always a full-time employee on an agency payroll, so determining your strategic plan for current and future employees may not be at the top of your priority list. You may also not have an opportunity to think of potential risks and opportunities associated with how you manage former employees – and manage them for your benefit.

misrepresents coverage or makes promises or guarantees to the prospect. Also (enter risk manager hat), what could potentially go wrong with this relationship? Well, money is involved and that can always bring stressful conversations.

There could potentially be large clients brought to the table which could create high stakes for all parties involved. Overall, this was a relationship that could be successful for both parties with the proper agreement language in place.

Every formal Referral Fee Agreement should be looked at individually (and preferably by an attorney, which I am NOT), but here are a few quick considerations if you find yourself in a similar situation:

An agency recently reached out to me with an inspiring question that sparked my curiosity given the current retirement figures. The question was this, “How should I formalize a referral compensation plan for a retired agent who would still like to generate new business for the agency?” Of course, my first reaction was, “What a great opportunity!” Then, my risk manager hat crept out from beneath my desk and my mind began to wonder…or wander.

What could be potential risks for this type of agreement and how can we mitigate these risks?

1. Define the parties involved and if there are specific lines of business within the scope of the agreement.

Not wanting to diminish potential revenue generating ideas for a member, I sat down and went through similar scenarios. Agents regularly receive referrals from other professionals, so how was this going to be different? For starters, a referral from someone who was in the industry could pose E&O risks if that former agent

4. Define if the referral fee is for all business “referred” to the agency or only for “paid written premium” received by the agency from the referral.

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wisconsin INDEPENDENT AGENT

2. Outline the effective date and a potential end date or review date for the agreement 3. Be specific about the referral amount a. Consider a % or a flat $ amount b. Is there a cap to the amount of the referral (ex. 10% but not to exceed for a single referral $1,000)?

5. Define payment guidelines. If the agency is making payments for referrals to an individual, a 1099 should be in place for that individual.

Furthermore, that individual should, under no circumstances, provide guidance or advice to prospective clients on insurance terms, conditions or services provided.

6. Is this an exclusive relationship between the individual making the referral and the agency?

My final piece of advice would be to familiarize yourself or update your understanding of Unfair Trade Practices (s. Ins 6.60 (2)) in Wisconsin. Share this same knowledge with anyone who is helping you generate leads or sales, either as a referral or as an agency employee.

7. Determine guidelines for confidentiality, as needed.

8. Determine guidelines for severability of the agreement.

9. Include language that clearly states the agency is NOT responsible for any misrepresentation or negligent claims against the individual referring business to the agency.

Special thanks to all our members and agency partners who continue to inspire great ideas and changes related to day-to-day operations. We encourage everyone to reach out if you have questions you would like to roundtable.

> Mallory Cornell, Vice President, IIAW

MGA AND E&S BROKER | EST. 1920

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wisconsin INDEPENDENT AGENT

2/2/22 3:40 PM

| MARCH 2022 | 15

PERSONAL LINES

HOW INSURANCE CAN PROTECT A STUDENT-ATHLETE’S FINANCIAL FUTURE In 2008, Dante Love, a wide receiver who played for the Ball State Cardinals, suffered a cervical spine fracture that ended his football career. At the time of his career-ending injury, Love was projected to be a high first-round pick in the NFL Draft.

Although he was able to recover, he never played football again.

There are other stories of injuries damaging student-athletes’ professional careers. For this reason, it is recommended that exceptional student-athletes apply for the Exceptional StudentAthlete Disability Insurance (ESDI) program to protect themselves.

The insurance program, offered by the National Collegiate Athletic Association (NCAA), helps elite college athletes if an injury ends their playing career. Initially started in 1990, covering football and men’s basketball only, it was expanded in 1998 to include all sports.

For a student-athlete to be eligible for this insurance coverage, they must have remaining athletic eligibility at an NCAA institution and also demonstrate that they can be pro athletes in the major sports leagues’ first two rookie drafts.

Unfortunately, the policy doesn’t explicitly list the criteria for the selection of student-athletes with professional potential. Instead, the NCAA only uses professional scouting services to assist the organization’s evaluations, which isn’t an exact science.

On the other hand, athletes aren’t required to apply for the insurance program before the season 16 | MARCH 2022 |

wisconsin INDEPENDENT AGENT

begins: The requirement is that they must be able to play their way into it. Essentially, if a studentathlete is ineligible before starting a collegiate season but plays well enough during the entire year, they can obtain insurance coverage midseason.

It is worth noting that the NCAA doesn’t pay for the policy acquired through the ESDI program. Instead, the eligible athletes or their families are the ones who cover the costs of coverage.

The premiums for the policy can be as much as $10,000 to $12,000 per $1 million insured. The insurance program carries a 24-month maximum policy term for any eligible student-athlete and pays out in a single lump sum after the expiration of the elimination period.

To help cover premium costs, the approved student-athlete is automatically eligible for a loan.

If the eligible student-athlete acquires a loan to settle the premium, they aren’t responsible for making loan repayments until one of the following scenarios occurs: • The student-athlete signs a professional contract.

• The disability benefits become available because of a covered sickness or injury.

• The coverage expires and the loan note matures.

The Elimination Period During the elimination period, which is 12 consecutive months from the date in which the total disability has been indicated, no benefits are payable to the student-athlete.

The purpose of this period is to determine the nature of the disability.

For payment to be made, the disability must result from an injury that occurs while the policy is in force. The athlete must also be under the regular care of a qualified physician and must be unable to engage in any sporting activity at the professional level.

In addition, the total disability must prevent the injured athlete from signing any employment contract with any professional team.

The NCAA Exceptional Student-Athlete Disability insurance has consistently high participation but a low number of claims.

The only publicized example of an eligible athlete benefiting from the insurance program was Ed Chester of the Florida Gators, who suffered a knee injury that ended his football career during his senior year. Chester had been projected to be an NFL Draft first-round pick. He subsequently collected $1 million from a policy he had paid $8,000 for from an insurance agent based in

Gainesville, Florida.

Given that modern medicine can practically repair any sporting injury, seeing such low claims in the insurance program is not surprising. Today, even if players are severely injured, they still play their sport again after undergoing treatments in a rehab facility.

Unfortunately, these injured players usually drop significantly in the rookie draft, costing them millions. Still, having the proper insurance can ensure their protection in the event of a careerending injury.

Lucille Adams is a researcher and writer in the area of personal and business financial management.

Her core focus is covering sound, conservative cash flow and investing strategies that unlock long term value for small businesses owners, entrepreneurs, families and retirees.

> Lucille Adams Researching & Writer

Are you our next Agent Owner or AFFILIATE AGENCY? more markets. bigger return. proven success.

learn more: Chris Illman | cillman@robertsonryan.com | 800-258-0277 | www.robertsonryan.com/agentowner

BE THE NEXT

Find out why agency owners choose us!

• • • • • • • •

Broad Leadership Team that is 100% focused on the insurance business Flexible deal structures including the ability to retain some ownership Strong focus on culture, associate engagement, and client satisfaction Proven ability to drive double-digit organic growth Recruiting & mentoring program to develop those new to the industry Shareholder program for top performers Ability to maintain leadership with regional and practice group support Committed to serving our communities

18 | MARCH 2022 |

wisconsin INDEPENDENT AGENT

Call us for a confidential conversation Tom Schaetz 419.450.0317

MAY 9-10 KALAHARI RESORTS WISCONSIN DELLS, WI

SCHEDULE OF EVENTS MONDAY, MAY 9TH 8PM-10PM

Kalahari Volcano Lanes

BOWLING & NETWORKING EVENT

TUESDAY, MAY 10TH 9AM-9:45AM

Africa East

9:45AM-10:15AM

Africa East

10:30AM-11:15AM

AGENCY TECHNOLOGY Steve Anderson, Catalyit

CYBERSECURITY & RECOVERY Kevin Bong, Sikich LLP

STATE OF THE ECONOMY

Join us for a fun night of bowling and networking in the Kalahari’s extensive 24-lane bowling alley, Volcano Lanes.

(Limited space available on a first come, first serve basis.

Additional charge)

Steve will kick off InsurCon2022 by discussing how your IT departments can generate revenue, new technology options and tech trends for 2022.

As the Director of Cybersecurity for Sikich LLP, Kevin will discuss cybersecurity and recovery in the insurance industry.

Chris Calvelli & Michael Antonelli, Baird

Michael and Chris will lead a fast-paced, energetic discussion about the lessons from history after the world broke. They’ll cover what historians say occur after a crisis: inventions, interruptions and accelerations.

11:15AM-1:15PM Africa West

EXHIBITOR NETWORKING LUNCHEON

Grab lunch from one of the available food carts, sip on a drink from the bar and start marking off your Blackout Bingo card while networking with exhibitors.

1:15PM-2PM

ELECTION POLLING DATA

Charles Franklin, Director of the Marquette Law School Poll, will dive into state & national polling data and explore what to expect for the November election.

AGENCY SALES

Kelly, Founder of Agency Performance Partners, has helped hundreds of insurance agencies boost revenues, profits and efficiency. She’ll discuss how to create an amazing sales process.

CONSUMER RESEARCH & INSIGHTS

Brian will cover the six factors influencing the purchasing of insurance online that you will not want to miss!

EXHIBITOR SHOWCASE

Continue marking off your Blackout Bingo Card and stick around until the end of the Showcase to hear the winners for Blackout Bingo and the Super Door Prizes!

NETWORKING & COCKTAILS

Join us in the Convention Foyer for complimentary drinks & industry friends. We will not have company hospitality time this year, so please remain at the event for networking immediately followed by dinner.

DINNER & EVENING ENTERTAINMENT

Dinner is served & so is great entertainment! Matt Banaszynski, IIAW CEO, will sit down with Garth Wicinsky to talk about his vision for the future as he takes over the helm as SECURA CEO. Mike Ansay will lead a walk down memory lane alongside industry legend, Dave Gross, as we honor Dave on his retirement as SECURA CEO. Last but certainly not least, evening entertainment will be provided by Bill Walton, NBA and College Basketball Hall of Fame. As entertaining as he is insightful, Bill is widely considered one of the best speakers from the world of sports.

Africa East

Africa East

2PM-3PM

Africa East

3PM-3:30PM Africa East

3:30PM-5PM Africa West

5PM-7PM

7PM-10PM Africa East

Charles Franklin, Marquette University Kelly Donahue-Piro, Agency Performance Partners

Brian Kiley, West Bend

Keynote Speaker: Bill Walton

*Please dress in business attire for our evening entertainment*

Register Now: iiaw.com/insurcon

AGENCY OPERATIONS

HOW TO CULTIVATE A GROWTH MINDSET The line it is drawn The curse it is cast The slow one now Will later be fast As the present now Will later be past The order is rapidly fadin’ And the first one now Will later be last For the times they are a-changin’

- Bob Dylan Ah, yes. The times they are a-changin’ – at an incredibly fast pace. Order has rapidly faded, our way of life and work has shifted, and we’re all grasping for ways to keep pace and adjust.

Whether you’re a remote worker or you’re an employer looking to hire someone who will work from home, success today is dependent on your ability to cultivate essential work-from-home skills including collaboration, communication, adaptability, teamwork, empathy, and selfmotivation. To this long list you can now add another important quality: a growth mindset.

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wisconsin INDEPENDENT AGENT

The term “growth mindset” was coined by psychologist Carol Dweck in 2007 and is normally associated with students and education.

But having a growth mindset in business has never been more important than now.

People who have a growth mindset believe that their abilities can be developed through hard work. Those who have a fixed mindset, by contrast, believe that their abilities (such as intelligence) are fixed and can’t be changed.

Those with growth mindsets understand that they can always improve and learn more if they put in the hard work. A person with a fixed mindset might say, “I’m not good at playing golf,” and therefore won’t try to improve. A person with a growth mindset will continue to practice golf, even if they struggle.

In a constantly evolving workplace setting, you can see why having a growth mindset can be so beneficial. Employees who have a growth mindset are always willing to learn and try new things, because they believe they can develop any ability with a little hard work. They even view setbacks and failures as signs that they should continue trying to develop their skills, not as signs they should give up. A growth mindset can help you overcome the constant unforeseen barrage of changes and challenges.

With a growth mindset, you can slay obstacles when you’re asked to learn a new technology tool or develop a new skill.

To understand whether you have a growth mindset, ask yourself a few questions:

View challenges as opportunities to empower your learning, regardless of potential failures or mistakes. Try not to worry about being embarrassed if you make a mistake.

View each challenge as an enhancer that will round out your skills.

1. Do you have a passion for learning?

2. Do you see each new day as a chance to learn something new?

3. Do you believe in yourself?

4. Do you seek out challenges?

Times are going to continue to change and bring challenges. Shifting your perspective and putting yourself on the road to a growth mindset will arm you with an invaluable skill that is becoming increasingly relevant for remote work success.

If you answered yes to most of these questions, you’re already on your way to having a growth mindset. If not, the good news is you can cultivate one through changing your perspective: Practice positive thinking through selfacceptance (doubt is often just fear).

wisconsin INDEPENDENT AGENT

| MARCH 2022 | 21

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

Today, Penn National Insurance sells property-casualty insurance in 11 states by partnering with more than 1,200 independent agency operations. In 2012, we affiliated with Wisconsin-based, Partners Mutual Insurance Company. As one company, we bring the personal attention and local focus of a regional carrier, along with the quality of products and services of national carriers.

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

Contact: Vicki Lentz 262-432-3420 vlentz@pnat.com

Contact: Clayton Zogata 715-383-5454 czogata@pnat.com

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

An Equal Employment Opportunity/Affirmative Action Employer ©2021 Penn National Insurance

Policies issued for domiciled businesses and individuals in Wisconsin and Iowa are underwritten under our affiliate, Partners Mutual Insurance Company.

• Strong financial performance and A.M. Best Financial Strength Rating of A• Expanded Commercial Lines products and services with competitive pricing and comprehensive coverages to help our agents grow profitably • Comprehensive Personal Lines product offerings, including Homeowners Equipment Breakdown and additional protection plans • State-of-the-art quoting, processing and self-service tools, making it easier and faster to meet your customers’ needs • Local, experienced underwriting, claims and management staff

COMMERCIAL LINES

WHY E&S PROFESSIONAL LIABILITY IS GOING THROUGH SOME RIGHTSIZING In 2021, many carriers left unprofitable and volatile lines of business. As a result, the U.S. excess & surplus lines market grew to nearly 7% of the total U.S. property-casualty insurance industry, a material departure from its 5% share over the past decade, according to Fitch Ratings. Included in this growth were E&S professional liability lines.

As the E&S property market saw an increase in new submissions due to increased rates in the standard market, E&S professional liability lines—directors & officers, employment practices liability insurance, errors & omissions, and cyber liability—were similarly impacted.

“We have rising rates in all classes of business—D&O, EPLI, and definitely in cyber liability,” says Manny Cho, executive vice president, executive lines, Risk Placement Services. “Some of it is driven by carriers’ lack of profitability and some of it is driven by current loss trends and rising loss trends in certain areas.”

An unprecedented economic environment continues to impact the D&O market, which “has seen significant rate increases over the past several years due to a number of underlying trends adversely affecting this segment,” says Adrien Robinson, head of global specialty, The Hartford.

“Some of these factors include the rising costs of complex litigation; an aggressive plaintiff’s bar; and the attraction of litigation funding to these large multi-party disputes,” Robinson says. Additionally, the recent explosion of special purpose acquisition company (SPAC) initial public offerings (IPOs) and the inherent uncertainty of business plans and financial projections “is another factor driving rising rate trends in this segment,” Robinson adds.

The progression of social movements, as well as changes in the workplace environment as companies try to navigate the complicated and ever-changing protocols of returning their employees safely to work amid an ongoing pandemic, are continuing to drive agents to the E&S market.

“I certainly see loss activity for items that weren’t

always prevalent in the EPLI portfolio,” says Jeffrey Kamrowski, president and CEO, Mesa Underwriters Specialty Insurance Company (MUSIC), a subsidiary of Selective Insurance Group Inc. “These are largely around changes to workplace dynamics which are certainly driving losses around EPLI in ways that weren’t seen over the past 20 years,” Kamrowski says. “Emerging social trends and social concerns will continue to put pressure on the EPLI line and probably restrict capacity and cause pricing to be higher in the near term.”

By comparison, the E&O marketplace has been relatively stable. However, “there are subsectors, such as insurance agent E&O, which are affected by the global pandemic,” Robinson says. Further, “the explosion of ransomware cases has thrust cyber insurance into mainstream coverage, even for small and medium enterprises,” Robinson adds, which has led to “extreme tightening.”

For agents and clients, “the biggest change for the cyber market is the information and the level of detail that underwriters are looking for,” Cho says.

“They’re looking for four major things right now, all of which are subject to change: Does the insured have a multifactor authentication (MFA), do they have an endpoint detection and response solution in place, what are they doing in terms of data backups for recovery, and is there internal training in place for their employees?”

“If any one of these areas is lacking then a lot of the underwriters, whether it’s primary or excess, may not quote. From that perspective, it is a big change,” Cho adds.

The professional liability E&S market is currently experiencing another tough market cycle and the outlook for 2022 appears to be the same. “We don’t see the trend of increasing rates stopping for 2022,” Cho says.

> Olivia Overman IA Content Editor

wisconsin INDEPENDENT AGENT

| MARCH 2022 | 23

News Members in the

ARLINGTON/ROE NAMES ANDY ROE EXECUTIVE VICE PRESIDENT & CHIEF OPERATING OFFICER

Indianapolis, IN (2/1/22) - Andy Roe has been promoted to Executive Vice President and Chief Operating Officer at Indiana-based Arlington/Roe according to James A. Roe, president and CEO of the company, a managing general agency and wholesale insurance broker.

Andy began his insurance career when he joined Arlington/ Roe in 2001, where he is a third-generation member of the family-owned business. Over the last 20 years, he has been involved in many facets of the organization by holding various roles from underwriting to departmental leadership.

He holds property and casualty licenses in several states, including surplus lines licenses, as well as several insurance designations.

In 2022, he was promoted to Executive Vice President and Chief Operating Officer. His new responsibilities include maintaining and directing the daily operations of the company as well as working with the leadership team to ensure performance expectations and strategic plan execution. He promotes company culture and is heavily involved with human resources. Andy also oversees financial operations and manages relationships with our carrier and agent partners.

Roe’s father. Jim’s sons, Andy and Patrick Roe, are the third generation to work at the company. 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 $250 million in annual premium.

ACUITY NAMED A BEST EMPLOYER BY FORBES

Sheboygan, WI (2/10/22) - Acuity is named to Forbes America’s Best Midsize Employers list. Acuity is ranked at #26 in the nation out of 500 companies on the list, a more than 400-point jump for the insurer over 2021.

“Acuity has worked to build a workplace where people know they are valued and supported. We are pleased to be recognized among Forbes America’s Best Midsize Employers,” said Ben Salzmann, Acuity President and CEO. “We are committed to being a great employer,” said Joan Ravanelli Miller, Acuity General Counsel and Vice President - Human Resources. “Being a workplace people want to be a part of, whether working on-site, remotely, or in a hybrid work environment, is the foundation of Acuity’s high job satisfaction, low turnover, and industry-leading results.”

America’s Best Employers were selected based on an independent survey where 60,000 employees in 25 different industries working for companies with at least 1,000 people employed in their U.S. locations were asked open-ended questions regarding their own employer. The evaluation was based on both direct and indirect recommendations.

In addition to providing employees competitive salaries and professional development opportunity, Acuity offers many work-life integration benefits, generous health insurance benefits, a 401(k) company contribution that has averaged 10.5% over the past five years without a required match, and more. The insurer recently announced it plans to hire 130 people in 2022.

Andy is a graduate of Ball State University and has been involved in a variety of organizations over the course of his career. Early in his insurance career, Andy interned for an excess & surplus lines company in Arizona and in London with Lloyds. He was a very active member of the WSIA’s UFO (Under Forty Organization) serving on the board of directors. Additionally, he was the past chairman of the Independent Insurance Agents of Indiana’s Young Agents Committee.

This latest honor adds to Acuity’s continued and growing recognition as a great place to work. Acuity was named to Forbes’ lists of America’s Best-in-State Employers, was ranked #1 in the nation among Glassdoor’s 20 Highest Rated Companies for Work/Life Balance During COVID-19 for two consecutive years, earned a Glassdoor Employees’ Choice Award, and was named a Top Entry Level Employer

by CollegeGrad.com.

ABOUT ARLINGTON/ROE Arlington/Roe is a family-owned managing general agency and wholesale insurance broker headquartered in Indianapolis, Indiana operating primarily in the Midwest.

Arlington/Roe was founded in 1964 by Francis Roe, Jim

Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 125,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 30 states. Rated A+ by A.M. Best and S&P, Acuity employs over 1,500 people.

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wisconsin INDEPENDENT AGENT

CHURCH MUTUAL ANNOUNCES LEADERSHIP PROMOTIONS

Merrill, WI (2/15/22) - Church Mutual Insurance Company, S.I.1, looks to further the company’s growth and success through the promotion of four leaders. These individuals will continue to guide the company and advance its mission to serve those who serve others.

Craig Huss has been promoted to vice president – information technology and chief information security officer. Huss joined the company in 2016 as senior IT executive director – infrastructure and operations. He was promoted to assistant vice president – IT and chief security officer in 2017. Huss earned a bachelor’s degree in communication and human resource management from University of Wisconsin - Whitewater. He holds Certified Internal Security Assessor (ISA) and Certified Information Systems Security Professional (CISSP) designations.

Guy Russ has been promoted to vice president – innovation and data. Russ has been with Church Mutual for the last 10 years and joined as director – OCNS program management in Administration. He was promoted to senior information technology executive manager – architecture and administration in 2014 and assistant vice president – Information Technology in 2016. He assumed the role of assistant vice president – Risk Control in 2018. Russ holds a bachelor’s degree in finance from Carroll College (now Carroll University) in Waukesha, Wisconsin, and a master’s in business administration from Marquette University in Milwaukee. He holds many industry designations including Chartered Property and Casualty Underwriter (CPCU) and the Associate in Risk Management (ARM).

Eric Spacek has been promoted to assistant vice president – Risk Control. He has more than 15 years of insurance risk control experience and joined Church Mutual in 2020 as Risk Control program manager. Spacek holds a bachelor’s degree in English from Eastern University in St. David’s, Pennsylvania, and a juris doctor degree from American University in Washington, D.C. He also holds the ARM designation and has received the Cambridge Certificate in Risk Management for Churches and Schools.

Penny Fons has been promoted to assistant vice president – Claims. Fons has more than 20 years of experience in the commercial claims environment. She joined Church Mutual in 2017 as Claims operations manager. In 2018, she was promoted to director – Claims operations. Fons holds a bachelor’s degree in natural resource management from the University of Wisconsin – Stevens Point.

and human services organizations throughout the United States. Church Mutual markets most lines of commercial property and liability insurance, including multi-peril, workers’ compensation and commercial auto insurance. In addition to insurance, Church Mutual provides a spectrum of value-added solutions that benefit its customers. Church Mutual holds the following honors: • A.M. Best Company “A” (excellent) rating • Wisconsin 75 Top Private Company by Deloitte US, 2016, 2017, 2018, 2019, 2020 and 2021 • Wisconsin 75 Distinguished Performer: Innovation by Deloitte US 2019 • 2021 Gallup Culture Transformation Award recipient • 2020 Women and Diversity Award recipient from the American Property Casualty Insurance Association • Futuremakers Partner by Wisconsin Technical College System • Celent Model Insurer for innovation and emerging technologies • Award in Innovation for entrepreneurialism and innovation by National Association of Mutual Insurance Companies • 2018-2019 Employer of the Year by Northcentral Technical College

MARINO PROMOTED TO VP

Bloomington, MN (2/22/22) - SFM recently promoted Nick Marino to Vice President of Regional Business.

Marino has led SFM’s Wisconsin Business Team since 2008.

“Wisconsin is SFM’s second largest state and continues to embrace our high service model focused on loss prevention, claim management, cost containment and injured worker rehabilitation,” said Senior Vice President & Chief Business Officer Steve Sandilla. “Under Nick’s leadership, the team has profitably grown SFM’s premium and policy count, relying on exceptional customer service.

He has created an environment that promotes ideas and innovation that has led to several successful niche business opportunities and growth for SFM.” SFM, headquartered in Bloomington, Minnesota, is a customer-owned mutual insurance company providing Wisconsin, Minnesota, Iowa, Nebraska, South Dakota, Kansas and Indiana employers with workers’ compensation coverage. SFM offers workers’ compensation insurance solutions for employers of all sizes, including claims and disability management, cost containment, legal assistance and third-party administration. For more information, visit sfmic.com.

ABOUT CHURCH MUTUAL Church Mutual Insurance Company, S.I., founded in 1897, offers specialized insurance for religious organizations of all denominations, public and private K-12 schools, colleges and universities, senior living facilities, secular and non-secular camps and conference centers, and nonprofit wisconsin INDEPENDENT AGENT

| MARCH 2022 | 25

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Visit www.guard.com to see what we can do for you.

Businessowner’s Commercial Auto Commercial Umbrella Homeowners Personal Umbrella Professional Liability/E&O Workers’ Compensation Pay-As-You-Go options with over 200 payroll partners!

APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY/ Not all Berkshire Hathaway GUARD Insurance Companies provide the products described herein nor are they available in all states. Visit www.guard.com/states/ to see our current product suite and operating area.

FINANCE

SHOULD YOUR AGENCY HAVE AN ACQUISITION STRATEGY? Reasons Why You Should Consider Including One in Your Strategic Plan It’s likely that your insurance agency has already undergone the process of creating a strategic plan, which is basically a road map for your agency. It’s valuable because it creates key goals and objectives and provides markers for measuring success. A good strategic plan will help provide definition for both management and employees for the type of agency you strive to be. It will outline key performance goals along with both a mission and vision statement.

But, have you ever considered including an acquisition strategy in your agency’s strategic plan?

Here are some reasons why it may be advantageous to do so: • Create a competitive advantage. An acquiring agency can create a new dynamic where the new agency has new access to a larger client base, more agents or more carriers. The result could possibly create new revenue sources and possibly increase bargaining power with carriers.

• Overcome a barrier to entry. Building a new agency in a different market may carry unwanted expenses.

Things such as leases, employee costs, even travel times may be too costly. Additionally, the time it might take to build a new agency to the point of desired profitability may be outside of an acquiring agency’s defined plan. Time and expenses could be overcome through acquisition.

• Gain market share/Enter a new geographic market. Acquiring an agency can grow the business footprint by entering a new town or market. Also, an agency might acquire a new agency that offers lines of business that are complimentary to their own offerings.

• Diversify business product lines. Perhaps your agency offers property and casualty lines exclusively.

You might consider acquiring an agency that specializes in life products or crop insurance. There may be considerable value to a growing agency to gain diversity.

• Create cost savings. Support staff at any business are invaluable to a well performing business.

Acquiring a new agency might provide an opportunity to stretch the cost of support staff a cross a broader number of producing agents or even locations. The result would be a more efficient overall team.

• Provide business succession. It is entirely possible that the next owner of your agency is already hard at work for your agency. It is not uncommon for high producing agents to put themselves in a position to own an agency that is their employer. If that type of person is not immediately recognizable at your current agency, they may be working at a targeted acquisition agency. Although this factor should not be a primary consideration when considering an acquisition, it may be a valuable bonus to the transaction.

As an acquisition becomes a higher priority to your agency, don’t forget to consult with your professional advisors including a banker who specializes in this area along with an attorney and accountant.

John Lisowski is director of commercial lending for Security Financial Bank (SFB), a Wisconsin financial institution that specializes in lending to insurance agencies. SFB has helped numerous insurance agents with their banking needs, including acquisitions, partner buyouts, building expansions and refinancing projects. For more information, visit www.sfbank. com or contact John at jlisowski@sfbank.com or at 715.629.4077.

> John Lisowski Director of Commercial Lending, Security Financial Bank

wisconsin INDEPENDENT AGENT

| MARCH 2022 | 27

GOVERNMENT AFFAIRS

GOV. EVERS CALLS FOR TAXPAYER REFUND IN ANNUAL STATE ADDRESS Wisconsin Governor Tony Evers (D) delivered his fourth annual State of the State address this month before a joint session of the Republican controlled state Legislature. In the Governor’s address, he called on the Legislature to convene a special session to take up his plan to return a portion of the state’s $3.8 billion projected revenue surplus back to taxpayers this year.

Evers’ proposal would direct about $1.7 billion of the surplus towards tax relief, as well as additional education and childcare spending.

Republicans quickly pushed back labeling it an election year gimmick from the Governor.

Governor Evers’ annual address was delivered in-person in the State Assembly Chambers of the Wisconsin Capitol as has been the longstanding tradition prior to the start of the pandemic. It was the final official address of Governor Evers’ first four-year term in office as he gears up to run for a tough reelection fight this November.

In January, the nonpartisan Legislative Fiscal Bureau (LFB) announced some positive economic news that Wisconsin is looking at a projected revenue surplus of $3.8 billion at the end of the 2021-23 biennium - which is nearly $2.9 billion more than was expected just several months ago. Much of this is attributed to large increases in sales, income, and corporate tax collections. The LFB periodically conducts an 28 | MARCH 2022 |

wisconsin INDEPENDENT AGENT

analysis of the state’s general fund forecast and presents its findings to the Legislature.

The additional projected revenue is welcome news for Wisconsin taxpayers despite other not-so favorable economic news of ongoing supply chain slowdowns, rising fuel prices, and inflation hitting an all-time high in more than four decades. The federal Department of Labor recently reported that consumer prices jumped 7.5 percent last month compared with a year earlier, the steepest year-over-year increase since February 1982. Notwithstanding the challenging economic conditions at home and across the nation, Wisconsin has the highest-ever positive GAAP balance in state history at more than $1.1 billion, while the state’s rainy day reserve fund sits at the highest level in history at $1.7 billion.

On the heels of the Governor’s state address, Evers wasted no time and issued Executive Order #156 calling for a special session of the Legislature to act on his plan to tap into the surplus revenues to provide immediate financial relief to Wisconsin families. As part of Evers’ plan, he is proposing using a portion of the projected surplus to: • Allocate $815.7 million toward a surplus refund of $150 for each Wisconsin resident • Allocate $102.5 million to create a nonrefundable caregiver tax credit for qualified expenses incurred by a family caregiver to

assist a qualified family member • Allocate $29.3 million to increase the newly created Wisconsin nonrefundable credit match on the Child and Dependent Care Credit from 50 percent of the federal credit to 100 percent • Invest nearly $611 million in K-12 education • Provide $111 million for the University of Wisconsin System • Provide $28 million for the Wisconsin Technical College System According to Evers, every Wisconsin resident will be able to receive the full surplus refund, including for each of their dependents. A family of four, for example, would receive $600 under the Governor’s proposal.

Most taxpayers would need to take no action to receive the refund, which would be distributed through information provided by an individual on their tax returns.

Already, Republican leaders in both houses have thrown cold water on the plan calling it “a reelection gimmick from the Governor.” Assembly Speaker Robin Vos and Senate Majority Leader Devin LeMahieu have indicated that their preference is to hold on to the excess revenues until after the 2022 elections when they can come up with a bigger tax plan of their own for the next state budget cycle in 2023. Republicans are increasingly supporting a broader plan that would have Wisconsin join nine other states in permanantly eliminating the state personal income tax. Meanwhile, legislative Republicans are also hoping that a Republican governor will win election in November and be more receptive to their tax relief plans.

The state Legislature is quickly winding down its regular session in preparation for the fast approaching campaign season and both houses are expected to adjourn on March 10. >M isha Lee IIAW Lobbyist

Despite the Governor’s formal executive order, the Legislature is not bound to convene a special session to act on Evers’ proposal.

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Builders Risk and Contractors Equipment

3/23

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

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3/24

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Commercial Lines Claims That Cause Problems

3/29

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Ethics in the Insurance Industry

3/30

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Business Auto Claims That Cause Problems

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

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The Guy in the Bar Returns

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Agency Management Based E&O and Ethics

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Coverage Disputes Between Thompson & Boggs, You Be the Judge

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Claims-Made Policies - The Most Dangerous Insurance Policies

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

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wisconsin INDEPENDENT AGENT

It shouldn’t take four days with no power, water, or communication to find out who your friends are.

BUT SOMETIMES IT DOES. And that’s the Silver Lining®.

AGENCY MANAGEMENT

ARE YOU THE FUTURE? Keeping and retaining talent has been on the minds of agency owners from the day I entered this industry. It has remained in the top 5 concerns of agency owners in literally every survey I have ever read. With the current movement in our workforce, my guess is this topic will remain at the forefront for the foreseeable future. When this topic comes up, there is a great deal of focus placed on what current owners are doing to attract and retain great talent, but what about the other side to this conversation. I believe that in order to create a meaningful career and future within an agency, the responsibility lies with both the owner and the potential future owners. If you are a hungry, smart, energetic leader who sees the incredible opportunity that exists in our industry to become a business owner, my question to you is, what are you doing to build your pathway to ownership?

Opportunity is everywhere According to the latest Agency Universe Study, there are 36,000 agencies across the United States.

Over 49% of those agencies have owners that are 56 or older, which means that half, 18,000 agency owners, will be at or past retirement age in the next 5-10 years and thinking about transitioning ownership in their agency. According to the same study, the majority of agency owners want to transition internally to a current partner, employee, or family member. There will never be a better time to position yourself as a future agency owner.

In addition, independent insurance agencies are incredibly strong businesses – seriously, name another industry where 85-90% of your revenue typically renews. I am not suggesting that there aren’t challenges but, as far as opportunities go, this industry is rich! In fact, I still think it is one of 32 | MARCH 2022 |

wisconsin INDEPENDENT AGENT

the best kept secrets! So, the question is, with all of this opportunity, what are you doing to position yourself as a future owner?

Bridging the generational divide I think we all talk about how to communicate with the next generation, but have you considered what you are doing to connect with the generations that came before you? Baby Boomers are wired to view hard work and commitment based on hours and time while that is far less important to GenX and Millennials who demonstrate their worth and commitment by making a difference and being innovative. The issue is, at our core, these perceptions and behaviors conflict. Having an awareness and ability to move past your own tendencies and meet people where they are is a skill that is incredibly important for leaders to possess. It is important in every relationship that we have, so having an appreciation for the different perceptions that we all have can go a long way in bridging this generational divide and demonstrating your leadership abilities. Small changes like being present or meeting in person when discussing important topics can go a long way. Seeking out advice and taking the time to consider and incorporate that advice into your approach builds mutual respect and shows that you value their opinions and shows your ability to relate to all different types of people.

Broadening your view Have you ever heard that you should dress for the position you want, not the one you have? Using that same logic, you should think like the position you want not the position you have.

Far before you have the title of owner, you can think like one by broadening your view and considering all aspects of the business not just your perspective. When a problem arises, ask yourself how the problem impacts all roles inside the agency, your customers and your partners.

Ask questions about the business, and participate in creating solutions. Make the shift from sharing problems to sharing solutions. Leaders have to make some difficult and sometimes unpopular decisions, and it is incredibly valuable when others are able to rise above their own viewpoint and see the bigger picture. What are some ways you can do this and support the current owner? By taking this approach, the current owner will be able to picture you in a leadership role more easily.

Find your mentor and value their guidance If you want to set yourself up for success, one of the best things you can do is surround yourself with people who are smarter than you, have different experiences and hold different viewpoints. We all have blind spots, so seeking out a diverse group of people who can make you think is powerful.

They will be able to maintain a more holistic view of both the opportunities and challenges inside our industry. The industry is full of people who are willing to share and mentor each other, however, I would just caution you from surrounding yourself only with people who look, think and talk like you.

The best predictor of the future is the past, except when you learn from it. The knowledge that many veterans in our industry posses can go a long way in helping you shape the future.

Planning for change Often times young leaders are rich with energy, grand ideas, and aggressive goals – it is what makes you so incredibly attractive and, in many ways, frightening. For someone that has all of that energy, the current owner can feel like an anchor. For you, the inaction is discouraging and for the current owner the ready, fire, aim approach is frightening. The truth is your energy and approach may remind them of themselves twenty or thirty years ago. As with everything, the right path forward most likely lies somewhere in the middle. I would suggest sharing ideas with a thought-out plan that encompasses as many

aspects as possible including time, cost, training, and supporting data to support your plan. Share ways to measure the success or failure of the idea and a process to implement. The more comprehensive and well thought out, the more trust and confidence you will instill that your ideas have merit, and you are going to be thoughtful in your approach.

Financial commitment In addition, if you want to be a future owner, are you preparing financially? Are you prepared to purchase an agency? In order to secure a loan, you will need sound credit and the ability to put 10% down. Becoming an owner will require taking on both the financial risks and rewards of the agency, so the more you can do to gain an understanding of the business and all that is involved with running the agency, the better prepared you will be to become an owner. This topic is sensitive, but expressing an interest to learn and understand how the business works will speak volumes. Don’t expect to get full access to the inner workings of the business the first time you inquire, start small and be patient. This process is a marathon, not a sprint and with the right mindset and expectations everyone involved wins.

Change takes patience, trust and often times is a winding road with lots of twists turns. For those who are willing to be thoughtful and participate in building a pathway to a future that meets both their needs and instills confidence in the current owner – there are endless opportunities and a very bright future ahead. Remember a great deal went into building the business that exists today, and the thought of trusting someone else with your life’s work is incredibly difficult. There are many ways to ease those fears and instill confidence that their legacy will be in good hands. So many agency owners are looking to find the right person to trust with all that they have built and provide them with the same opportunity as that given to them. To many, it feels like that person may be a unicorn.

My advice to you is - be that unicorn! For more information visit www.agency-focus.com. > Carey Wallace, Business Consultant, AgencyFocus wisconsin INDEPENDENT AGENT

| MARCH 2022 | 33

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