Simple solutions for complex times
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UFG’s new Pro-Quote online experience was built by agents for agents, getting you from zero to bind in mere minutes for most businessowners policies.
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President: Nick Arnoldy | Marshfield Insurance Agency, Inc., Marshfield
President-Elect: Michael Ansay | Ansay & Associates, Port Washington
Secretary-Treasurer:
Joanne Lukas Szymaszek | Johnson Insurance Services, LLC, Racine
Chairman of the Board:
Marc Petersen | American Advantage - Petersen Group, New Berlin
State National Director: Steve Leitch | Leitch Insurance, River Falls
2022-2023 BOARD OF DIRECTORS
Janel Bazan | Avid Risk Solutions/Assured Partners, Middleton
Mike Harrison | R&R Insurance Services, Inc., Waukesha
Aaron Marsh | Marsh Insurance Services, Inc., Rice Lake
Kash Motlani | Ansay & Associates, Inc., Port Washington
Dan Lau | Robertson Ryan & Associates, Milwaukee
Andrea Nelson | Unisource Insurance Associates, LLC, Wauwatosa
Brad Reitzner | M3 Insurance Solutions, Madison
Matt Banaszynski | Chief Executive Officer 608.256.4429
matt@iiaw.com
Mallory Cornell | Vice President and Director of Risk Management 608.210.2975
mallory@iiaw.com
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of Insurance Services 608.210.2973
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608.210.2971
Kaylyn Staudt
608.210.2977
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Finding the right school insurance can be complicated, but it doesn’t have to be. A trusted partner with a commitment to superior insurance solutions, exceptional risk management and expert claims handling can make all the difference. At CM Regent Insurance Company®, we are dedicated to providing schools with flexible, scalable protection focused on keeping your people and your property safe.
Supports your employees should they be injured during their employment. We provide a competitive pricing structure to serve the financial interest of school entities.
A unique, cutting-edge coverage enhancement to protect public schools during any event involving a weapon, is available on every general liability policy.
Protects your school district from liability arising from lost computer equipment, network security breaches and human errors.
An alternative risk control strategy to protect the school district from exposure and risks inherent to a major construction project.
CM Regent provides comprehensive insurance coverage.
A comprehensive policy combines property and liability with additional coverage options for schools.
Comprehensive coverage at a reasonable price. Our plan is designed to help protect your customers and their employees.
With program limits available up to $20 million, it is the protection you need when catastrophes occur.
Find out how we can provide the protection you want so you can stay focused on education. Contact Kasey Baker at 717-790-2322 or kbaker@cmregent.com.
300 Sterling Parkway, Suite 100 Mechanicsburg, PA 17050 Toll-free 844-480-0709 | CMRegent.com
Don’t complicate the equation: CM Regent® is the insurance partner schools have trusted since 1971. We offer superior insurance solutions designed exclusively for schools, and when you have a claim, you can be confident our expert claims management team has you covered. We also offer policyholders these value-added services:
Don’t complicate the equation: CM Regent® is the insurance partner schools have trusted since 1971. We offer superior insurance solutions designed exclusively for schools, and when you have a claim, you can be confident our expert claims management team has you covered. We also offer policyholders these value-added services:
Don’t complicate the equation: CM Regent® is the insurance partner schools have trusted since 1971. We offer superior insurance solutions designed exclusively for schools, and when you have a claim, you can be confident our expert claims management team has you covered. We also offer policyholders these value-added services:
Building & Content Appraisals.
Inspections.
Building & Content Appraisals.
Boiler Inspections.
Comprehensive Risk Control services. Included Appraisal Services. Boiler Inspections.
general liability, auto, employer’s liability, and school leader’s legal liability.
Excess Towers
Separate Excess Towers for general liability, auto, employer’s liability, and school leader’s legal liability.
Separate Excess Towers for general liability, auto, employer’s liability, and school leader’s legal liability.
Practices Liability Risk Resources to help you manage your workforce.
Employment Practices Liability Risk Resources to help you manage your workforce.
Employment Practices Liability Risk Resources to help you manage your workforce.
Regent
CM Regent offers the expertise to help you control your risk and protect your property and your people.
CM Regent offers the expertise to help you control your risk and protect your property and your people.
See how it all adds up at www.cmregent.com/products/value/.
See how it all adds up at cmregent.com/products.
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does not
The partnership with CareerPlug gives our members the opportunity to post available job opportunities on their own Careers page.
Whether it’s providing policy updates or creating a handbook for first time, the IIAW will work with you to craft and brand your employee handbook to your agency.
Start your new hires off right with our classroom and self-study prelicensing courses and online training in insurance essentials, coverages, business skills and more.
WAHVE is a comprehensive solution to qualifying, hiring and managing experienced remote talent.
Promote internship and job opportunities with your agency at college RMI Career Fairs with the help of the IIAW.
The IIAW is excited to introduce our partnership with CareerPlug!
Finding and hiring the right staff to maintain and grow your business is an important key to your success, and likely your biggest challenge. The IIAW is now partnered with CareerPlug to support all our members with their hiring efforts.
CareerPlug’s unique approach to hiring will help you implement hiring best practices in your business. Use their proven playbook to attract more applicants, convert more applicants to interviews and make better hiring decisions.
Every IIAW member receives a free CareerPlug account that comes with a branded careers page, pre-built job templates and a configured hiring process. CareerPlug’s software is easy enough to be used by any owner, operator, or hiring manager — even if they aren’t hiring experts. CareerPlug’s system saves you time by eliminating the busy work associated with hiring and keeps you and your team focused on running your business, not fighting with your hiring software.
So, what is CareerPlug? CareerPlug is an applicant tracking system dedicated to helping businesses hire the people they need to grow their organization. Specifically, CareerPlug’s recruiting software focuses on helping organizations get more applicants, evaluate these candidates, and hire them in an efficient manner. It’s an easy-touse system that automates many of the tedious, manual steps of the hiring process. More than 14,000+ clients rely on them to consistently hire and develop the right talent.
CareerPlug’s built-in evaluation tools so that you identify, evaluate and hire the right person. In a nutshell, you can hire like you sell – efficiently and effectively.
If this news isn’t exciting enough, we’ve got more to share! In addition to our CareerPlug partnership, the IIAW is excited to offer hiring solutions that work hand-in-hand with your CareerPlug account. Whether you prefer to handle your recruiting efforts yourself, need a little bit of help, or you just want to outsource the whole process, the IIAW is here to help!
Diana Banaszynski joined the IIAW team in 2018. Prior to joining the IIAW, she worked in Human Resources for Zywave and Frank F. Haack & Associates.
“What I enjoy most about Human Resources is the gratification I feel from helping others. From building relationships through talent acquisition, developing a quality onboarding experience, to working with management to find ways to improve processes. HR has a unique opportunity to make a difference in the employees’ experience and I have always wanted to be a part of that," Diana says.
Contact the IIAW’s HR Business Partner, diana@iiaw.com, for more information about our new HR Solutions for Your Agency.
> Diana Banaszynski, HR Business Partner, IIAWThis option is tailored to the needs of an agency who doesn’t have the time to find quality candidates to interview. Let your IIAW HR Business Partner handle the process for you. Save time and resources by getting the right person hired faster
• We will manage the application review process and screening of candidates giving you an improved experience providing only qualified candidates for you to interview
Attract top agency talent through customized CareerPlug page set up
• Upgraded PRO version of CareerPlug for one year
• Compelling job posting tailor-made for your agency Custom applicant scorecards allowing you to measure candidates quickly
• Unlimited job posts on all major job boards (Indeed, LinkedIn, Zip Recruiter, etc.)
• Customized job links for effective hiring (Facebook, other social media sites) Reduce interview prep time with Best Practices resources and templates
• Personality assessments designed for your open position
• Employment offer letter Reference check
• Unlimited assistance
This option offers free or paid CareerPlug options to choose from. The agency is in control of the process and has additional resources.
• Support from the HR Business Partner
• Customized dashboard set up Job description templates with customization available
• CareerPlug dashboard to manage applicants
Utilize the resources available to find your next new hire on your own.
• CareerPlug dashboard to manage applicants
• Job description templates available within Careerplug
• Option to upgrade to CareerPlug Pro for one year
The IIAW is here to help you with your hiring! Our members have access to these hiring solutions:
Branded Network Jobs Board
Branded Careers Page for each member’s website
Pre written job post templates (Network recommended)
Configurable applicant pre screening questions
Structured interview guides (Network recommended)
Comprehensive reporting
Phone and email support & online help center access
Templated emails for every step in the hiring process
m i t e d , m o b i l e f r i e n d l y j o b p o s t i n g s t o m a j r j o b
U n l i m i t e d , m o b i l e - f r i e n d l y j o b p o s t i n g s t o m a j o r j o b
o a r d s , i n c l u d i n g I n d e e d , Z i p R e c r u i t e r , G o o g l e F o r
a r d s , i n c l u d i n g :
o b s , L i n k e d I n , G l a s s d o o r , e t c .
2 way applicant text messaging
Configurable personality and aptitude assessments
Automatic job translation into Spanish
Automated interview scheduling with calendar integration
Fast Track applicant automation
Establishing policies and procedures is one of the best ways to improve workplace communication, set employee expectations and promote fairness, leading to a more productive workplace. Whether it’s providing policy updates or creating a handbook for the first time, the IIAW will work with you to craft and brand your employee handbook to your agency. You’ll also have to option to add on an annual review to update your custom handbook.
Contact our
HR Business Partner, Diana Banaszynski, diana@iiaw.com for more information.
Let us help you find the right solutions.
“Once the toothpaste is out of the tube, it’s tough to get back in,” H.R. Haldeman, White House chief of staff under the Nixon Administration, famously observed. Half a century later, employers are finding the truth in the expression as they struggle to get their employees—many of whom were sent home to telework during the COVID-19 pandemic—to return to the office. In large numbers, those employees are saying, “No, thank you.”
Before COVID-19, 23% of those with jobs that could be done from home were working from home all or most of the time, according to the Pew Research Center. As of October 2020 that percentage had risen to 71%. Nearly two years later, that percentage is still 59%.
Even those who have returned are, in many cases, now splitting their work time between the office and home. Despite their frustration, employers may be looking for a silver lining in these figures and wondering, “Does this mean I’ll get a fat reduction in my workers compensation premiums?”
To find the answer, let’s get back to basics.
All states except Texas have a requirement that employers must provide workers comp coverage if they have employees—subject to certain exceptions, which vary from state to state, such as businesses with less than a certain number
of employees and independent contractors, for example. In Texas, an employer can choose whether or not to provide workers comp coverage for their employees but noncovered employers must comply with certain workers comp requirements.
In any event, teleworkers who do not fall within any of the exceptions are not exempt from workers comp coverage. Therefore, subject to state-specific requirements, businesses with people working from home must provide workers comp coverage.
Even so, given that there are more teleworkers than in the past, how does that change the workers comp exposure? The 2021 State of the Line Guide published by the National Council on Compensation Insurance (NCCI) gives us clues.
NCCI estimates that the lost-time claim frequency for the 2020 accident year will be 7% lower than for the 2019 accident year. They concluded that pandemic-related shutdowns and increased use of telecommuting are likely contributors to the larger-than-average decline. They also expected that there would be a decrease in overall average claim severity. In addition, private non-fatal injury cases dropped from 2.7 million in 2019 to 2.1 million in 2020, representing a 22.22% decrease, according to the U.S. Bureau of Labor.
According to the NCCI, the types of occupations that lend themselves to teleworking tend to be
office jobs, which also tend to have lower rates of work injuries and lower loss costs. Slips and falls are the leading cause of workers comp claims, according to the National Floor Safety Institute (NFSI).
However, just because the teleworker slips and falls at home doesn’t mean that their fall injuries won’t be covered by workers comp. Under the Occupational Safety and Health Act (OSHA), the employer is obligated to provide a safe work environment for their employee, whether or not that employee is working from their home.
However, different states may look at this obligation differently. In Florida, the case of Sedgwick CMS v. Valcourt-Williams considered whether an employee tripping over her dog was covered. The court decided not, since this risk existed whether she was at home working or whether she was at home not working and her employment did not expose her to conditions that substantially contributed to the risk of injury.
On the other hand, there have been other cases that have found that slips and falls when getting a cup of coffee or going to the bathroom are covered. This is known as the personal comfort doctrine. According to Karastmatis v. Industrial Comm’n in Illinois, “The personal comfort doctrine generally applies when a claimant is on break and sustains an injury. It encompasses
acts such as eating and drinking, obtaining fresh air, seeking relief from heat or cold, showering, resting, and smoking.”
Given an employer’s relative lack of control over the home environment and ergonomic considerations that could lead to injuries and the blurred line between when the worker is tending to their personal comfort, will it lead to more claims?
Truthfully, most teleworkers probably aren’t even aware that they may have access to workers comp benefits for injuries that they suffer while working from home, so claims may increase once they gain this knowledge. But meanwhile, the telework employer’s diminished control as to when their employee is working and taking breaks may also increase the number of injuries, driving up workers comp claims from teleworkers.
The bottom line: It’s human nature to look for good news in the midst of bad. Unfortunately, the silver lining your customer is hoping for may not be found in their workers comp premiums.
This article was originally published in eoguardian.com in July.
> Caryn Mahoney, Assistant Vice President, Claims Specialist, Swiss Re Corporate Solutions
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 ser vices 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:
Lentz
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Zogata
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• 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
Let’s face it – Independent agents need good markets to be competitive. Greater access means more opportunities for success. WE’RE HERE TO HELP. Independent Market Solutions creates company relationships for agents who may be unable to secure appointments on their own. Through association membership, agents can access multiple insurance carriers and grow their business into long-term, direct appointments.
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Coinsurance may be the least mentioned yet easily explainable clause in both commercial and personal property and other policies.
You will find coinsurance clauses in many types of policies. These and other policies usually contain a coinsurance clause.
Businessowners policy
Commercial property policy
Flood insurance policy
Business income policy
Dwelling policy
Homeowners policy
Health insurance
The coinsurance clause can hit your insureds where it hurts, in their wallet. It can also hit your errors and omissions coverage if your clients allege they did not understand the coinsurance language and any application that may reduce their loss payments after a claim.
Coinsurance is policy language that requires the insured to share in any property loss should the property not be insured to value.
Coinsurance requirements encourage insureds to insure their property to value through a discounted rate. If they fail to insure the property correctly, they become a coinsurer of their loss with their carrier if the limit of insurance they choose on their home or commercial building does not equal the specific percentage of their property's value –70%, 80%, 90%, or even 100% -- at the time of the loss.
This is not the market value of the home or building, because that includes the land and other variables such as location. It is the cost to repair or replace the damaged property at the time of the loss.
The purpose of coinsurance is to have equity in ratings. If your insured meets the coinsurance requirement, the insured receives a rate discount. The coinsurance clause helps to ensure equity among all policyholders. In some instances, underwriters waive the coinsurance clause in return for stating an agreed value on the policy. However, with inflation, your clients should review that amount at least annually even with the addition of an inflation guard endorsement.
Few fire losses are total losses; most are partial losses. According to Insurance Services Office, about 85% of fire losses damage less than 20% of the property value. Only 5% of the fire losses damage over 50% of the value of the property.[i]
When underwriters rate property insurance, they base those rates on the ratio of expected losses to that property. Therefore, if insureds underinsure their property assuming they will not have a total loss, insurers may not generate enough premium to cover all expected losses.
Encouraging insureds to carry insurance to a specific value helps to avoid rate inequity among policyholders and ensure insurance carriers receive adequate rates.
In personal lines, adjusters will discuss “insurance to value" while in commercial lines, adjusters use the term “coinsurance."
When it comes to insurance, we all try to save money. Your insureds may attempt to save money by undervaluing their home or business location, assuming they will never have a fire, much less a fire that is a total loss.
That's right, the adjuster will calculate the value of the damaged property at the time of the loss, not at the policy inception when your insured chooses a specific property coverage limit. This is critically important in today's era of high construction costs inflation.
Experts estimate construction costs hit a fifty-year high, up 17.5% from 2020 to 2021. That means many of your insureds may currently have inadequate property limits on their policies. If they do not, they will incur a coinsurance reduction after a loss.
The coinsurance clause is both a carrot and a stick. The carrot? It encourages your insureds to carry adequate levels of coverage by providing a premium reduction if they adhere to adequate coinsurance limits. The stick? Although the policy never uses this word (nor should you), it reduces the amount payable on the claim should a loss occur if the insured has failed to adhere to the coinsurance requirement. The coinsurance clause promotes rate equity among all policyholders in that class.
You will hear many agents, and some adjusters, refer to the reduction as a coinsurance “penalty." It is not a penalty. It is a policy provision or requirement. We advise you never describe it as a penalty.
Chantal Roberts, author of The Art of Adjusting: Writing Down the Unwritten Rules of Claims Handling, has this to say about the coinsurance provision.
“Fun fact: The insurance policy never says this is a 'penalty,' and we should not refer to it as such. It is a requirement of
the policy to incentivize insureds to insure their property to the correct insurance-value so that they avoid becoming a co-insurer with the carrier," Roberts says.
“You've likely heard of numerous studies that humans are hardwired to memorialize bad news; so, when your client hears 'penalty' from you or the adjuster, she automatically thinks, 'Ah, I knew I wasn't going to be paid the full amount by the carrier!'"
The coinsurance credit for carrying insurance to value depends on the structure's fire resistance. A brick building would receive a greater rate reduction than a wood building, for example.
The coinsurance formula is a simple mathematical formula.
Insurance Carried Divided by Insurance Required X Loss = Amount Recoverable
Mathematically, it looks like this.
Amount of Insurance Carried
Amount of Insurance Required X Amount of Loss = Amount Paid
Or, as we said old school, “Did Over Should X Loss."
The policy determines whether the deductible applies before or after the application of the coinsurance provision. If the policy is silent, the recommended best practice according to Adjusting Today is to apply the deductible first. This provides a slightly higher claim payout and gives the benefit of the doubt to your insured given the policy's ambiguity.
Let's look at a loss given a policy with an 80% coinsurance clause.
Your insured owns a building valued at $800,000 at the time of loss with an 80% coinsurance clause. At the time of the loss, she carried only $600,000 of insurance. She then suffered a loss of $50,000.
Because she failed to carry adequate insurance, she'll incur a coinsurance reduction on the claim payout.
Let's look at the math.
$600,000 insurance carried $800,000 insurance required = 75% X $50,000 - $1,000 = $49,000 = $36,750.
In this case, the adjuster applied the deductible before the coinsurance provision, so the $50,000 became $49,000 after application of that deductible. If the adjuster applied the deductible after the coinsurance calculation, the insured would receive $36,500.
A agent long ago developed a coinsurance visualizer (at the bottom of that link's page) you can download to help explain the coinsurance provision and how it would apply after a hypothetical loss. Seeing visually how the coinsurance provision can impact your insured can help
confirm they understand the policy provision's importance.
We cannot overstate the importance of insurance to value, especially with today's quickly escalating construction costs.
Never rely on the amount the mortgage company requires for insurance. Their concern is their mortgage balance. In today's world where purchasers may put down 20% of the home's value at purchase to avoid mortgage insurance or because that property is a second home, the mortgage company's priority is that they do not lose their equity – the amount still owed on that mortgage.
The value the adjuster determines at the time of the loss is based on the covered property – for example, commercial property policies do not cover foundations, and the adjuster would need to remove that cost from the valuation.
Adjusters use valuation software tied to a specific zip code. The software developers update the software frequently. If your client must pay a large percentage due to underinsurance, ask the adjuster to see their valuation to ensure it only takes covered property into consideration, Roberts recommends.
During the pandemic, more than half of homeowners hired professionals for renovations. These renovations, including something as simple as an extended back deck, can increase the value of the home leading to a coinsurance issue.
It is wise to routinely contact your clients to see if they have undertaken any major renovations. The social media recommendations below can help you in social media or email campaigns and help to protect your agency liability.
Here are social media updates you can use to remind your clients to reach out to discuss their property coverage limits.
“Did you know your property policy no doubt contains a coinsurance clause? With property values and the costs to rebuild escalating, give us a call to discuss your coinsurance clause, which requires you to insure your property to a certain percentage of value."
“With escalating construction costs, the price to rebuild your home or office after a loss can create problems. Coinsurance is a property policy requirement that means you must insure your home or office to a specific value, often 80% of its replacement cost at the time of the loss. Contact us today so that we can review your current insurance and help you decide if you should increase your property limits."
“Most property policies contain coinsurance clauses. Different than a coinsurance clause in your health insurance policy, the property coinsurance clause states an insured value you must insure to that allows you to collect after a loss without any consequence for underinsurance."
[i] Fundamentals of Risk and Insurance, 11th Ed. Wiley, 2013
This article was originally published on independentagent.com in August 2022.
> Nancy Germond, Executive Director of Risk Management Education, BigWe're looking for volunteers to serve on the IIAW's councils and task forces. Each council and task force will act as a sounding board for the IIAW and will only have three virtual meetings per year. Participation in the IIAW task forces and councils gives you access to industry experts, exclusive networking events and FREE CE opportunities during most virtual meetings when content allows.
For individuals who are interested in or who have a role in Personal Lines insurance
Virtual Meeting from 9 a.m. to 11 a.m. on 10/27/22, 3/2/23 and 7/13/23
10/27 Meeting Topic: Replacement Cost: Determining Values for Personal Lines Customers
For individuals who are interested in or who have a role in Commercial Lines insurance
Virtual Meeting from 9 a.m. to 11 a.m. on 10/26/22, 3/1/23 and 7/12/23
10/26 Meeting Topic: WC Rate Decrease Overview
For individuals who are interested in or who have a role in Employee Benefits
Virtual Meeting from 9 a.m. to 11 a.m. on 11/3/22, 3/9/23 and 7/20/23
11/3 Meeting Topic: E&O Claims in Employee Benefits
For insurance professionals who have an operational or leadership role within an agency or company
Virtual Meeting from 9 a.m. to 11 a.m. on 11/1/22, 3/7/23 and 7/18/23
10/27 Meeting Topic: Budgeting & Planning for 2023
For individuals interested in staying informed and providing feedback to the IIAW's Board on Wisconsin & national legislative and political happenings.
Virtual Meeting from 9 a.m. to 11 a.m. on 10/25/22, 2/28/23 and 7/11/23
10/25 Meeting Topic: Election Preview & Update
For insurance professionals looking to cultivate their skills for a successful career by engaging in association activities, professional development, education and events.
Virtual Meeting from 9 a.m. to 11 a.m. on 11/2/22, 3/8/23 and 7/19/23
11/2 Meeting Topic: Cyber Liability Market Update
We will be hosting a kickoff networking & happy hour event on for the IIAW councils and task forces from 3 to 5 p.m. on October 18th at Milford Hills Hunt Club. This meeting is free and open for all interested in joining a task force or council. Make sure you visit the below link to join and to receive communications regarding this kickoff event!
At Western National Insurance, nice is what’s guided us for over 100 years. And we’re just getting started.
Western National Insurance. The power of nice.
Do you remember the Greek myth of Pandora’s box? According to the myth, Pandora was given a box as a wedding gift but was ordered not to open it. Eventually, curiosity got the best of her, and she opened the box, releasing death, evil, and misery into the world. (Don’t get us started about why on Earth someone would give her a wedding gift that she can’t open.)
Over the millennia, the story has become synonymous for both good and bad things that once released, cannot be put back or unwound. The myth seems relevant to the currently evolving work environment. Before the pandemic, we knew employees were unhappy with their work arrangements, but that employers had control and wanted people on site because they couldn’t trust that they could work without supervision. The pandemic turned that thinking on its ear and proved that workers were equally, if not more, productive when working from home. Employees discovered that they mostly loved working from home, but occasionally yearned for a return to the office.
As the pandemic shifted, the hybrid work model gained popularity. Many businesses now offer a hybrid model, where employees can work some days in the office and others at home. Data seemed to show that the majority of employees wanted a hybrid arrangement. Employees said things like, “We’d like to go to the office two to three times a week,” and “I hate being on Zoom calls all day.” As a result, companies shifted their real estate plans, transforming offices into spaces with desks that could be reserved on an “as needed” basis.
Fast forward to the current situation. Although most
employees said they wanted to work in a hybrid environment, that’s not proving to be the reality. Many offices are empty as employees continue to work from home, even when they have the choice to go into the office.
It appears that employees value flexibility and worklife balance more than they value going to the office. They don’t want to get up early, pack a lunch, laptop, keyboard, office badge, and coffee and then spend time in traffic on the way to the office – only to get to the office and see that not many people are there to collaborate with anyway. They get to the office only to spend their day on Zoom calls after all. This scenario isn’t delivering the office reunion they had hoped for. The excitement they originally felt about going back has already worn off.
Pandora’s box has been opened, and it seems that employees won’t choose to go back into the office unless businesses force them to return. There are exceptions, of course, but for many workers, the lure of being able to be onsite occasionally with colleagues doesn’t outweigh the desire to avoid the hassle of the old office routine.
At WAHVE, we built our company on the flexible athome mode because we know it works. Businesses who continue to embrace and support employees who want to work from home will find that a culture of productive, well-balanced employees who are motivated to keep working for you. We specialize in helping retiring professionals find meaningful athome work arrangements in the insurance industry. Become a WAHVE today.
Small business customer satisfaction has bounced back from two years of pandemic-related declines, increasing to just two points lower than its prepandemic high, according to the J.D. Power “2022 U.S. Small Commercial Insurance StudySM."
Customer satisfaction had climbed steadily from 2013 to an all-time high of 844 on a 1,000 scale in 2019—until the pandemic. Business disruption and economic uncertainties during the coronavirus pandemic put a damper on small business customer satisfaction, which declined in 2020 for the first time in seven years and again in 2021. But happy days appear to be here again, with the 2022 study showing overall satisfaction reaching 842, climbing 13 points from 2021.
The study, which surveyed commercial insurance customers with 50 or fewer employees, found that insurers gained their small commercial clients' goodwill in all five categories—billing and payment, claims, interaction, policy offerings, and price. Interaction, billing and payment, and policy offerings led the service categories that clients were happiest with.
Despite 30% of small businesses experiencing a premium increase, customer satisfaction with the price of their policies rose three points in 2022. Proactive communication played a big role in boosting satisfaction despite price increases, J.D. Power found.
When premiums increased but clients were notified in advance—with agents taking the time to discuss ways to mitigate the effect of the increase and help
them understand why their premiums increased— those clients were nearly as satisfied with price as those who didn't experience an increase at all. “It's noteworthy that we're seeing increases in satisfaction across all factors—including price—at a time when 30% of small business customers have experienced an insurance premium increase," said Stephen Crewdson, senior director of global insurance intelligence at J.D. Power. “That's the highest proportion of customers experiencing price increases that we've seen in the past eight years."
“Insurers that notify their small business customers in advance of a price increase and proactively work with them to mitigate the financial effects of those premium increases are finding that it is possible to drive strong customer engagement and high levels of customer satisfaction even in a difficult economic environment," Crewdson said.
While overall customer satisfaction improved across all categories of small businesses, businesses with fewer than five employees had a lower overall satisfaction score (826) than medium-size (841) and larger (852) small businesses.
While State Farm ranked highest in overall customer satisfaction at 856, Chubb, Nationwide, Allstate, Erie Insurance, Auto-Owners Insurance and Travelers all ranked above the industry average of 842.
This article was originally published on iamagazine.com in August.
time, and who has already been instrumental to our growth as an agency. Vizance will always be a fiercely independent agency, allowing us to re-invest in our associates and in the business, while reinforcing the long-term relationships we have with our clients. Rita will play a large part in developing and realizing our vision of being the leader in associate loyalty and client relationships in the Racine Region. Her skills, experience and passion for the role are why we know she will be a great fit at Vizance.”
Racine, WI (9/7/22) - Vizance, a leading independent insurance agency serving Wisconsin and surrounding states, recently announced that Rita Napieralski is joining the team as Regional President of the Racine Region, overseeing locations in both Racine and Kenosha.
Rita comes to Vizance with a strong background from various roles in the insurance industry. Her career started in claims, then soon after shifted into sales for over 7 years, eventually becoming the Director of Sales at Wausau Signature Agency. Her experience in sales allowed her to develop strategic selling skills and execute sales development plans while managing her own book of business.
In 2010, Rita moved to the carrier side of the business at Erie Insurance, where she supervised a Risk Management Region. She then became the Senior District Sales Manager managing relationships with multiple agencies and was first introduced to Vizance. Rita moved into the Wisconsin Vice President role, where she was responsible for the growth, profitability, and distribution strategy for the entire Wisconsin territory. Most recently, she worked as the Brokerage and Alliance Sales and Service Director at American Family Insurance.
“I am thrilled to join a visionary agency such as Vizance, because of the commitment to independence and strong focus on associates,” said Napieralski. “When I considered this opportunity, I felt that the ability to join a team that I know and trust was something that I could not pass up. I am excited to contribute to the ongoing success of the organization and cultivate an environment that puts associates first.”
Jeff Cardenas, President of Vizance, echoed Rita’s thoughts. “We are blessed that the timing has worked out with an individual whom we’ve known for a long
Vizance’s former Regional President, Chris Antonneau, is transitioning into his new role as Business Development Executive, in which he will be part of the strategic planning and execution of the Vizance growth model. He is eager to have the capacity for additional focus on organic growth, mergers and acquisitions, and recruiting.
Vizance is a privately-held company that provides risk management, business insurance, employee benefits, personal insurance, and financial service solutions to companies, families and individuals. The company is dedicated to remaining independent which provides assurance to associates and clients that Vizance is unwavering in its commitment to them and not investors. Vizance associates create an award-winning culture that is focused on values, performance, and fun.
Sheboygan, WI (9/15/22) - Acuity earned Gold Spark Awards in both Commercial Lines and Personal Lines from Ivans for the insurer’s agency connectivity successes. Ivans Spark Awards recognize companies that are sparking digital connectivity by using technology to support the growth of their agency partners across the policy lifecycle. Acuity is one of only nine companies worldwide to achieve Gold status for both Commercial Lines and Personal Lines.
“Acuity is committed to remaining on the leading edge of agency connectivity and extending digital capabilities that help agents do business with us in both Personal and Commercial Lines,” said Ben Salzmann, Acuity President and CEO. “We are honored to be recognized by Ivans for our leadership in supporting agents’ digital strategies that increase their operational efficiency.”
“This year’s Spark Award class has a great group of companies that are really pushing the industry forward, and I am stoked to recognize them,” said Reid Holzworth, Ivans CEO. “So many outstanding organizations are truly paving the way in using technology to support independent agents’ needs for digital connectivity, and we are proud to be at the center of this intersection of insurance and technology to be drivers in this movement.”
The Gold Spark Awards honor Acuity for offering independent agencies a comprehensive range of automated servicing and digital distribution products. Gold Awards are earned by companies that are in the top percentile of digital technology adoption when compared to their peers.
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.
Harvest Foodbank of Southern Wisconsin from proceeds collected at a recent fundraising event involving independent insurance agents who represent the company, key business partners, friends, and West Bend associates.
"We’re grateful this year’s event was so successful,” stated Rob Jacques, senior vice president – Commercial at West Bend. “It affirms that our agencies and partners understand and are compelled to help organizations fighting hunger so they may assist those in greatest need.”
Second Harvest Foodbank, through its core services of food acquisition and storage, food distribution, and FoodShare Outreach, provides those facing hunger in the community access to enough nutritious food to thrive.
In addition to Second Harvest Foodbank, West Bend is proud to sustain its 2022 charitable giving through the West Bend Mutual Insurance Charitable Trust and the Independent Agents’ Fund. Grants were made to organizations that include Feeding America Eastern Wisconsin, MACC Fund, Arbor Day Foundation, the United Performing Arts Fund, and the American Heart Association.
West Bend, WI (9/15/22) - West Bend Mutual Insurance Company presented a check for $25,000 to Second
Effective October 1, 2022, Wisconsin employers will see an overall rate decrease of 8.47 percent in worker’s compensation rates for new and renewal policies. The joint announcement from the Department of Workforce Development (DWD) and Office of the Commissioner of Insurance (OCI) marks the seventh consecutive year that worker's compensation insurance rates have declined in the state. According to the DWD and OCI, the lower rates this year will save employers an estimated $146 million, although the overall impact will vary among employers and specific circumstances.
Manufacturing Contracting Office & Clerical Goods & Services
Miscellaneous Overall
Rate Level Change -8.10% -8.01% -7.46% -10.03% -7.19% -8.47%
As the first state in the nation to enact a worker’s compensation law in 1911, Wisconsin continues to have one of the strongest and most competitive state sponsored worker’s compensation programs around. Much of the strength of the system is attributed to the Worker's Compensation Advisory Council (WCAC) process where representatives of Labor (workers) and Management (employers) spend several months every two years negotiating any public policy changes to the system and provide recommendations to members of the Legislature to be considered. Wisconsin’s worker’s compensation system guarantees coverage of medical care and rehabilitation costs for workers who get injured on the job in exchange for employers not being sued for those workplace injuries. This process maintains stability and predictability in the system which is a favorable outcome for everyone.
The latest rate decrease also reflects continued worker safety improvements by Wisconsin employers which have a record number of people working and a low unemployment rate of about 3.0 percent. The 2022 rate decrease was recommended by the Worker’s
Compensation Rating Bureau (WCRB) and approved by the Wisconsin Office of the Commissioner of Insurance (OCI). Worker's compensation insurance rates are adjusted annually by a committee of actuaries from members of the WCRB. This independent body examines and selects the methodology and trends that produce the proposed rate adjustment, which is then reviewed and ultimately approved by the Wisconsin Commissioner of Insurance. The WCRB is a licensed rate service organization created in state statute. The WCRB is responsible for the classification of employers, the rates and rating plans used, all policy forms and endorsements, and the collection and analysis of all statistical and other data including the calculation and distribution of experience modifiers of employers. While not a state agency, WCRB is regulated by the OCI and works closely with the Worker's Compensation Division of the DWD and industry.
Data from the independent, nonprofit Workers Compensation Research Institute (WCRI) ranks Wisconsin among the lowest of 18 states with similar worker’s compensation systems in the time employees spend away from work after an injury, strong health care networks and return-to-work programs that support a smooth transition back into the workplace.
DWD's Worker’s Compensation Division administers the state's worker’s compensation program in conjunction with the WCRB, OCI, Self-Insurers Council, and the Worker's Compensation Advisory Council (WCAC). Most employers in Wisconsin are legally required to have Worker's Compensation insurance policies. The WCAC is set to consider changes to Wisconsin’s Worker’s Compensation law early next year in 2023.
See the WCRB rate revision announcement and information at bit.ly/OctoberGovAffairs.
> Misha Lee IIAW Lobbyist
West Bend Mutual Insurance has a long history of writing workers’ compensation insurance. Our underwriters are knowledgeable and experienced. Our loss control reps have the expertise and tools to help keep employees safe. And our claims practices are the best in class.
From Main Street-type businesses to specialty businesses like childcare, West Bend has the experience and expertise to protect businesses of many kinds and many sizes. We want to write all of your workers’ compensation business, small to large!
When you select West Bend for your valued customers, you can rest assured you made the right choice. After all, we are the best remedy for workers’ compensation.
Technology is changing the insurance industry. In 2021 InsurTech firms raised over $15.4 Billion in funding, completed 566 deals, and 73% of those deals focused on P&C Insurance according to CB Insights. There are no signs of InsurTech slowing down any time soon. In fact, it is expected to continue to accelerate.
We have seen many companies enter the insurance marketplace, some focused on disrupting while others seek to build upon the infrastructure that exists and are focused on building integrations. We have watched and experienced the impact of those that have merged, evolved, and failed. There is no question that as an agency owner you are faced with an incredible number of technology options making it difficult, confusing, and sometimes even overwhelming. The agencies of today and tomorrow know that the adoption of technology is more than just a series of purchases – it is a necessary cultural change. This journey requires vision, patience, and buy-in to be successful.
The impact of technology on an agency can be exponential if it is executed well. It can also be a very expensive mistake. For many, jumping into that cultural change has been avoided because they have either been burned by past failed attempts or maybe because the current owner or staff isn’t motivated to adopt change because “business is good”. Change can be scary but staying stagnated in a world that is changing around us is far more terrifying. This gap in the adoption of technology and the radical change that is needed in our industry has accelerated what I see as “The Great Divide” –those that are positioned to acquire and those that will BE ACQUIRED. Technology and data will shape the future of insurance without question.
The biggest factors in determining an agency’s value
are growth, retention, profitability, overall volume, culture, and the risk inside that agency.
The adoption of technology and data significantly impacts all of these areas. The biggest risk is that an agency’s book of business performance will be negatively impacted when a transition of ownership occurs. This could be caused by a strong dependence on a specific person, key relationships, specialized expertise, or access to an exclusive program or agreement. Knowing an agency’s areas of strengths and weaknesses can help define what technology and strategies an agency owner should focus on.
One of the biggest focuses for agencies is improving their growth and retention as this will have a direct impact on the agency’s value. Finding new business, retaining the business that they already have written, and rounding out those accounts are on the minds of agency owners. The current book of business will represent 90% of the agency’s top-line income in the next year, so any way that agency can increase that percentage will make a huge impact on the organization.
Utilizing technology is critical for agencies in this process. There are tools such as Donna by Aureus Analytics that can efficiently find cross-sell opportunities, identify the accounts that may be in jeopardy by monitoring every interaction, and turn unstructured data such as phone calls and emails into insights that the employees can act upon. This technology is also able to combine external data with an agency’s internal data to identify high-quality leads and increase their likelihood of writing new business. The impact of implementing a tool like Donna can be profound on an agency and every
member of the team, but it requires a commitment to data cleanup, the adoption of new processes and procedures, patience, constant evaluation, and most importantly a culture of openness to change.
Creating capacity on your team allows an agency to scale. The key here is an agency needs to change how they look at the roles within their agency and identify the areas that create friction or a delay in their process. What are the steps that take the most time and can be automated, do not require the expertise and focus of your highly skilled staff, and may even create frustration for your customers?
Both GloveBox and Tarmika are examples of technology that are designed to remove friction, save time and ultimately increase the efficiency and capacity of your team by either giving the customer access to self-serve when and how they want to and the other by streamlining the quoting process for your team. Both of these tools create efficiency inside the agency as it reduces the time spent on taking payments, making changes, and quoting which are all time-consuming processes as well as improve the customer experience. That can have an impact on retention, the agency’s ability to crosssell, and the number of referrals. As more capacity is created on the team, production numbers will rise without increasing staffing costs leading to higher profitability and the exponential impact is realized.
The people in the agency will always be the most valuable part of your agency. They are the heart and soul of your business and the living example of your culture. Creating the right environment to attract and retain the talent you need has never been more important than it is today as we navigate The Great Resignation. Agencies that can provide their team with tools that will help them be successful are far more attractive to those that do not have any established onboarding, processes, or tools that set their team up for success. While compensation, benefits, and flexible work environments are important, working for a forward-focused organization that is committed to adopting the tools and technology necessary to create efficiencies and the ability to compete and meet the needs of its customers is equally important. If you are making investments in technology it sets your agency apart
and you should be highlighting it in your recruiting process. Having a strong team that is committed to the organization is a key factor in the agency’s value as they create the culture and provide continuity in your ongoing customer relationships.
The area that many agency owners overlook is the transferability of the business. This is difficult for many as they want to play a pivotal role inside the agency and find great pride in knowing that the agency needs them. The strongest agencies that command the highest multiples are those that are self-sustaining. They have processes, procedures, technology, and strong infrastructure that is not overly dependent on any one person, relationship, or partner. It is well diversified and runs like a welloiled machine. Technology to automate marketing, reconcile accounts and commissions, documentation of client files, and predict possible coverage needs, or carrier options will help an agency maintain a high level of transferability.
Successful adoption and integration of technology can have an exponential impact on any organization. It will transform the processes and procedures that you use, change the nature of the roles inside the organization as well as the type of talent you will need, it will increase access to data, drive efficiencies, increase performance and position the organization for both growth and scale. Trying to quantify the impact on an organization is difficult as it is multifaceted and in some cases exponential. Successful adoption and integration are key, and that requires buy-in and enthusiastic support from all members of the team. This is where many organizations struggle as the desired impact of new technology is not well understood or communicated making the adoption and integration into the culture of the organization fail. Becoming a data-driven agency is a journey that requires strong leadership, open communication, and a team that trusts and believes in the process.
You can visit www.agency-focus.com or contact Carey Wallace at carey@agency-focus.com for more information on the impact technology will have on the value of your agency.
10/18 8AM-11AM Agency Management Based E&O and Ethics
10/18 12PM-2PM Builders Risk and Contractors Equipment
10/20 8AM-10AM
Insight on Modern Day Cyber Exposures & Risk Mitigation
10/25 8AM-10AM Business Auto Claims That Cause Problems
10/27 12PM-2PM Those Kids and Their Cars
10/31 8AM-10AM Builders Risk and Contractors Equipment
11/1 8AM-11AM Commercial Lines Claims That Cause Problems
11/1 11AM-2PM E&O Risk Management: Understanding Risk Mitigation and E&O Claims
11/1 12PM-2PM Embracing Directors & Officers Liability Insurance
11/1 12PM-2PM Contracts Agents Should Read
11/1 2PM-5PM E&O Risk Management: Agency E&O Exposures and Defenses
11/1 2PM-5PM E&O Risk Management: Agency E&O Exposures and Defenses
11/2 12PM-1PM
Claims-Made policies - The Most Dangerous Insurance Policies
11/2 1PM-2PM E&O Exposures: Websites & Social Media
11/3 9AM-12PM E&O - Commercial Property Coverage Gaps & How to Fill Them
11/4 8AM-11AM Agency Management Based E&O and Ethics
11/4 9AM-12PM E&O - Roadmap to Homeowners Insurance
11/4 12PM-1PM Builders Risk and Contractors Equipment
Our Agency Operational Evaluation will customize a report with personalized recommendations and resources based on your current opportunities and needs. Have questions? Don’t hesitate to reach out to the team at the IIAW by calling us at 608-256-4429 or by email at info@iiaw.com.
Our evaluation leads you to the exact resources you’ll need to achieve your business goals. Scan the QR code in the bottom corner of this page to take the evaluation or click here.
We offer technology and operational consulting that meets the needs of your agency.
An IIAW membership entitles you to exclusive products and consultative services. We offer E&O, Data breach, EPLI and Association Health Plan for Wisconsin independent insurance agents.
The IIAW and InsurPac, our state and national Political Action Committees, ensure our industry is present and heard in Wisconsin and Washington D.C.
An IIAW membership maps out benefits to navigate your agency toward success. Members receive access to Trusted Choice for a full suite of tools and resources for your agency to use in its own marketing. Plus, members receive our publications and marketing guides through our knowledge center
The IIAW is your leader in insurance CE, prelicensing and employee training. Join us and other agents at our annual convention and other events throughout the year.
Big "I" members can access over $2,000 in funds to help offset the cost of certain marketing expenses. Funds can be used in three different ways:
Get reimbursed for adding the Trusted Choice logo alongside your own in any consumer facing ads or items.
Traditional co-branding:
Includes things like print ads, store signage, branded giveaway items and more! Get reimbursed 50% of your costs with a max of $750.
Digital co-branding:
Any digital display ads - TV commercials, social media ads, banner ads, etc. Get reimbursed 75% of your costs with a max of $750.
Upgrade to a new website with one of our Preferred Partners. Trusted Choice will reimburse $500 for any new site built in 2022.
Partners include: Advisor Evolved Agency Revolution
Forge3
ITC Marketing 360 Titan Web.
For full program details or to submit a reimbursement request visit trustedchoice.independentagent.com/MRP today!
Increase your digital footprint and get noticed by more insurance shoppers by upgrading to an Advantage subscription on trustedchoice.com
Trusted Choice will reimburse members $250 for an annual Advantage Preferred or Advantage Professional level subscription
