SEPTEMBER 2022
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Evan Leitch | Agency Solutions Advisor 608.210.2971 • evan@iiaw.com
For information on advertising, contact Kaylyn Staudt, 608.210.2977 or kaylyn@iiaw.com.
725 John Nolen Drive Madison, Wisconsin 53713
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
| SEPTEMBER 2022 | 3INDEPENDENTwisconsin AGENT WPS.....................................................................39WesternWestVizance...............................................................29UFG......................................................................2SECURA............................................................7RobertsonPennJMIMT.......................................................................40EMC......................................................................23BerkshireAcuity..................................................................35HathawayGUARD...................26Wilson.........................................................28National..................................................11Ryan&Associates.................25Bend.........................................................8National...........................................13
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
•
Matt Banaszynski | Chief Executive Officer 608.256.4429 • matt@iiaw.com
2022-2023 BOARD OF DIRECTORS
IIAW Staff
COVER STORY:
President: Nick Arnoldy | Marshfield Insurance Agency, Inc., Marshfield President-Elect: Michael Ansay | Ansay & Associates, Port Washington
Andrea Michelz | Education & Membership Engagement Coordinator 608.210.2972
Kim Kramp | Accounting Supervisor 608.210.2976 • kim@iiaw.com
• andrea@iiaw.com Diana Banaszynski | Events Coordinator and HR Advisor 608.256.4429 • diana@iiaw.com Tyler Wheeler | Agency Accounting Specialist 608.256.4429 • tyler@iiaw.com INDEPENDENTwisconsin AGENT 6 Free ServicesConsultative PAGE: RISKY BUSINESS..............................................................................14-15 Let's Talk Employee Benefits PERSONAL LINES............................................................................28-19 Understanding Dog Bite Liability and Coverage Issues AGENCY OPERATIONS................................................................22 We've Entered the Era of Disengagement COMMERCIAL LINES....................................................................24-25 Pivoting Restaurant Owners Continue to Face Challenges MEMBERS IN THE MARKETING.....................................................................................30-31NEWS..............................................................27-28 Website Checklist for a Good User Experience GOVERNMENT AFFAIRS..............................................................32-33 Primary Election Winners Advance to Face Competitive Fall Races AGENCY MANAGEMENT...........................................................36-37 Great Changes Are Here - Is Your Agency Prepared? COMMENTARY FROM COUNSEL...........................................38 Wisconsin Insurance Data Security Law Reminder - Are You Ready? FOOD FOR THOUGHT..................................................................39
Jeff Thiel | Director of Agency Success 608.256.4429 jeff@iiaw.com
2022-2023 EXECUTIVE COMMITTEE
IIAW members receive FREE, one-on-one consultative services in a variety of areas. Take advantage of this member benefit today!
•
Trisha Ours | Director of Insurance Services 608.210.2973 • trisha@iiaw.com
Kaylyn Staudt | Marketing and Communications Coordinator 608.210.2977 kaylyn@iiaw.com
Phone: (608) 256-4429 Fax: (608) www.iiaw.com256-0170
Mallory Cornell | Vice President and Director of Risk Management 608.210.2975 • mallory@iiaw.com
Dan Lau | Robertson Ryan & Associates, Milwaukee
CONTENTS
ADVERTISERS INDEX
INDEPENDENT INSURANCE AGENTS OF WISCONSIN
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. © 2022
Andrea Nelson | Unisource Insurance Associates, LLC, Wauwatosa Brad Reitzner | M3 Insurance Solutions, Madison
Extremely broad appetite. No queue underwriting like other carriers – you will get to know your dedicated and openminded andtrucking,specializeEmploysinrepresentativesExperiencedunderwriter.losscontrolwhospecializeriskmanagementsolutions.consultantswhoinconstruction,manufacturing,mercantile/service. Responsive UnderwritingRelationship-Basedand 5 BIG WAYS ACUITY IS HERE FOR YOU!
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• Over $6 billion in assets, over $3 billion in policyholders’ surplus, and nearly $2 billion in annual written premium.
• Committed to the independent agency system and a fiercely independent mutual carrier—we’re not for sale!
Neil Argall, Vice President
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Melissa Winter, Vice President - Business Consulting
• Rated A+ by both AM Best1 and Standard & Poor’s2 with a 20-year track record of outperforming the industry by more than double the growth and a full eight points on the combined ratio.
Jamie Loiacono, Vice President - Claims
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• Headquartered in Wisconsin since our founding in 1925 with a senior management team that has been in place for over 20 years.
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Wally Waldhart, Vice PresidentSales and Communications
• Over 200,000 personal lines customers protected.
• Consistently recognized as one of the best places to work in the nation.
• Over 125,000 businesses insured, with specialization in contractors, truckers, manufacturers, retailers, service providers, offices, and others.
• No growth goals for anyone in the company, so decisions are made with everyone’s long-term interests in mind.
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• Have not pulled back from any class of business or geographic area in over 20 years.
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• Average annual staff turnover of only 2% to maintain strong agency partnerships.
6 | SEPTEMBER 2022 | INDEPENDENTwisconsin AGENT FREE consultative SERVICES IIAW members receive free, one-on-one consultative services with our experienced team in these areas: AGENCY TECHNOLOGY LEGAL SERVICES HUMAN RESOURCES AGENCY OPERATIONS AGENCY VALUATION CONTINUING EDUCATION MARKETING AGENCY ACCOUNTING GOVERNMENT AFFAIRS PERPETUATION PLANNING Take advantage of this member benefit today!
| SEPTEMBER 2022 | 7INDEPENDENTwisconsin AGENT 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. relationshipsHonestInterestedinbuildingarelationship?Contactusatsecura.net/WI-agents. 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. Commercial | Personal | Farm-Ag | Specialty Lori PersonalM.LinesUnderwriterRyan F. Farm UnderwriterLines Kert CommercialR.UnderwriterLines Traci L. SpecialtyUnderwriterLines Lisa SalesWisconsinP.Manager
It shouldn’t take four days with no power, water, or communication to find out who your friends are. SOMETIMESBUTITDOES. And that’s the Silver Lining®.
Any conversation within the “chain of enrollment” must be recorded. This includes everything from the moment a beneficiary becomes aware of Medicare Advantage or Part D plans to the enrollment process itself. Medicare supplements are not included in the new call recording rules.
- Electronically or in writing when interacting with the beneficiary through email, online chat other electronic means of communication.
- Verbally conveyed within the first minute of a sales call or in-person meeting.
This exact disclaimer must be used in the following places:
Also, agents must report any staff disciplinary actions associated with Medicare beneficiary interaction on a monthly basis.
“We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all your options.”
In-person, face-to-face marketing and sales meetings are excluded from the recording requirement (not the disclaimer requirement), however, follow-up calls related to those meetings would need to be recorded.
ReadPlansthelaw text https://bit.ly/CMSLawTextat:
The Centers for Medicare & Medicaid Services (CMS) have released their final ruling on requirements for the marketing and communication of Medicare Advantage and Part D plans. The requirements are aimed at safeguarding Medicare beneficiaries and include requirements for disclaimers and recording of phone calls. If Medicare Part D is included in a bundle with another product, the sales process is still subject to this law. There has been an increase in complaints to CMS as it relates to misleading advertisements from third-party marketing organizations (TPMOs) and CMS has now expanded the definition of TPMO to include agents and brokers. If you sell Medicare Advantage or Medicare Part D plans, you are required to follow these new regulations and must be in compliance by October 1st, 2022.
- Prominently displayed on your website
New Requirements for TPMO When Selling Medicare Advantage and/or Part D
Effective October 1, 2022
Call Recording Requirement:
Disclaimer:
- Included in any marketing materials such as print materials and television advertising.
All sales calls with beneficiaries must be recorded in their entirety. This means that all marketing calls with both clients and prospects where Medicare Advantage and Medicare Part D plans are discussed must be recorded. The recordings must also be retained in a HIPAA-compliant manner for 10 years.
Source: MWL-Law.com
Important things to remember:
- Confirm recordings are stored in a HIPAAcompliant manner
Disclaimer:
Create a new Medicare-only email signature which includes the disclaimer.
ContactAdditionalCatalyit.comQuestions?theIIAW
Update workflows to include a review of the disclaimer when on the phone or having an in-person contact
- Review contract terms, system requirements and length before committing to a new phone system
blueButler: $11/month per user (integrates with existing phone system to record conversations)
Lightspeed Voice: 1 year contract - $50/month per user, 2 year - $45/month per user, 3 year – $40/ month per user
Zoom Phone: $15/month per user or $180/year per user.
Update your website footer and any contact/ submission form on your website to include: “We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all your Updateoptions.”anymarketing materials supplied via hard-copy or email to include the Ifdisclaimer.youuseachatbot or online messaging system with clients, add the disclaimer so it’s prominently displayed.
What you need to do:
Need help selecting a VoIP system that works best for your agency? Visit
Phone: 608-256-4429
Record all conversations following CMS Saveguidelinesallconversations in a HIPAA-compliant system for ten years
8x8: $15/month per user
Don’t forget to check with your local provider and ask if they have a call recording option.
- Wisconsin does require two-party consent for recording phone calls in order for the conversation to be admissible in court (Additional two-party consent states are CA, CO, CT, DE, FL, IL, MD, MA, MI, MT, NV, NH, OR, PA, & WA. States not listed are deemed to be one-party states for consent).
GoTo Connect: $29/month per user or $312/year per user
RingCentral: $45/month or $35 per user per month for annual contract *Premium level
with any additional questions about the new requirements for selling Medicare Advantage and/or Part D Plans.
Solutions:
Recording Phone Conversations:
Email: info@iiaw.com
- Ensure you have adequate space for your recordings (AMS or other system)
Here are a few VoIP solutions that allow you to record phone conversations: Bridge: Price: $55/month per user
• Strong financial performance and A.M. Best Financial Strength Rating of A-
Interested in partnering with a thriving insurance carrier with superior customer experience? We are looking for select commercial-lines agencies in Wisconsin.
• State-of-the-art quoting, processing and self-service tools, making it easier and faster to meet your customers’ needs
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.
• Comprehensive Personal Lines product offerings, including Homeowners Equipment Breakdown and additional protection plans
• Expanded Commercial Lines products and services with competitive pricing and comprehensive coverages to help our agents grow profitably
• Local, experienced underwriting, claims and management staff
An Equal Employment Opportunity/Affirmative Action Employer ©2021 Penn National Insurance We help people feel secure and make life better when bad things happen Contact: Vicki Lentz 262-432-3420 vlentz@pnat.com 715-383-5454ClaytonContact:Zogata czogata@pnat.com Policies issued for domiciled businesses and individuals in Wisconsin and Iowa are underwritten under our affiliate, Partners Mutual Insurance Company.
In 1919, A group of Pennsylvania farmers founded Penn National Insurance to provide affordable workers’ compensation insurance.
Trusted Choice has a series of professionally developed marketing campaigns. A variety of formats including video, radio, print and digital ads are available so you can reach your clients anywhere.
No time to create a marketing campaign for your agency?
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When the insured moved the policy to ABC Life Insurance in 2011, the application requests coverage for owners in addition to the other members.
Agency sent a copy of the prior policy to ABC Life Insurance; it was either requested by ABC Life Insurance or the agency sent it as a matter of routine. When the reliance policy is issued, owners are not included in the definition of covered people. Policy was sent to the insured who forwarded it on to the client. Neither insured nor client notice this omission. Policy has been renewing on an annual basis. Also, in order to receive a death benefit, the employee must work full time.
Every month, the client calculates the premium based on covered people. The owners were always included in this calculation. Monthly premium would then be issued to ABC Life Insurance based on this calculation. Of note is that the client only calculated benefits of $100k
If I have learned one thing while working on E&O risk mitigation it is that claims do not discriminate by agency size, location or line of business. Working with agencies that sell benefits products has taught me so much about this area of the agency and the important role it plays in an agency’s success. I’ve also learned that some individuals working on the benefits teams do not always feel there are as many resources available compared to those for P&C business. Your team at the IIAW provides resources that help an agency operate effectively & efficiently, prepare for regulatory changes in Wisconsin & on a national level and stay connected to the independent agency channel. None of these goals are specific to any one line of business. As a Swiss Re auditor and educator, I appreciate the opportunity to work with an agency’s benefits team, as it allows me to share claim examples and operational recommendations that help mitigate E&O claims. Here are a few of the claim examples from our partners at Swiss Re Corporate Solutions:
Claim Example One:
There are 4 owners: 2 are listed on the census that the client provided and 2 were not. The 2 that are listed are on the payroll and the 2 that are not listed are not on the payroll since they were original owners and received their compensation in another form e.g. K1 compensation. However, if owners had been listed as a covered person, it probably would not have made a difference that they were not listed on the client's census.
The agency's client is Fred's Seafood House and they have been clients for ~20 years. The agency procures life policies for them. Life policies were changed to "ABC Life Insurance Company" in 2011 and have renewed every year since that time. The prior carrier provided coverage for owners, managers and salaried employees. The client wanted this changed to include manager trainees. The request was put in and manager trainees were added to the policy but at the same time, owners were
LET'S TALK EMPLOYEE BENEFITS!
deleted. Do not know why this occurred and no one at the agency ever caught the mistake.
RISKY BUSINESS
14 | SEPTEMBER 2022 | INDEPENDENTwisconsin AGENT
On December 5, 2019 John Doe passed away. XYZ Life declined coverage under both life policies as non-active persons, employees, and affiliates cannot participate in the life insurance plans.
In 2016, one of the original owners, Fred Doe, died. He was 78 years old.
According to the agency, conversion of the Agency Paid policy was not permitted however the Voluntary Group policy could have been converted to an individual policy upon the retirement of John Doe.
Plaintiff is alleging damages of $50,000 for denial of payment of the life insurance claim. ...
For more information about the resources the IIAW provides our agency members, feel free to reach out to us at info@iiaw.com or give us a call at 608-256-4429.
> Mallory Cornell, Vice President, IIAW
| SEPTEMBER 2022 | 15INDEPENDENTwisconsin AGENT
for one of the original owners instead of the $194k it should have been.
On April 6, 2018 John Doe sold his book of business to another agency affiliate under a monthly payment arrangement. According to the agency there was an issue at that point as to whether John Doe was considered retired or was acting as a consultant. The agency kept John Doe on both the agency paid and voluntary group life policies. The agency paid the premium for both policies and John Doe reimbursed the agency for the cost of the voluntary group life policy.
The claim settled with Westport paying $86,250 on behalf of the insured agency due to the failure to notice the mistake in the policy deleting the owners in covered persons. ...
Regardlessagency.
The Swiss Re E&O Claims Team Leader indicated that he has handled Benefits claims where “policies were renewed late, there was a gap in coverage, policy replacement where the coverage obtained covers less than what the expiring policy covered and failure to add someone or mistakenly omitting someone from coverage”. Nearly one-third of all E&O claims among Benefits departments came from new business with a new or existing customer of the
Claim Example Two:
insurance policy for $50,000 that was purchased by the agency from "XYZ Life insurance Company". John Doe was listed as a participant in the voluntary life policies obtained through the agency.
of the line of business you work in, E&O claims are caused by human failings. We’re all human and we all make mistakes. It is essential for an agency to review operations across all lines of business to ensure the adequate measures are being taken to decrease mistakes and focus on your number top priorities: exceeding the expectations of your customers and providing quality service and insurance products.
ABC Life Insurance has denied coverage since he was not a covered person and they cannot prove that he worked full time.
John Doe was an employee of John Doe LLC. John Doe LLC is s stockholder of the agency and a named insured on the agency's Employee Benefits policy with "ABC Insurance Company". John Doe LLC was also a named insured on an Agency Paid Life Insurance policy for $15,000 and a Voluntary Group Life
The insurance business is a people business
UFG was founded in 1946 upon a belief that the insurance business is a people business. That humanistic ideal remains firmly at the company’s core.
What’s UFG hungry to write in Wisconsin?
Some states may not allow all listed. Consult your agent about specific available in your state. Company. All rights reserved.
coverages
coverages
Taking the time to truly listen is extremely important to all of us at UFG, no matter our department.
Auto service and body shops Craft breweries and wineries Artisan contractors
SMALL BUSINESS
UFG Insurance is a trusted carrier with an agent-focused mission: create simple solutions for doing business.
Retail Offices Contractors
© 2022 United Fire & Casualty
It’s a mission built upon a promise of opportunity — a promise taken to heart.
agent-focused
online quoting for small business and a clear understanding of that appetite, we built an enhanced online quoting platform — Pro-Quote — based on
“Our people and their exemplary service set UFG apart,” Mark continues. “So do our trusted products and coveragebroadening endorsements, like
our pollutant redefined option for contractors who need to consider carbon monoxide in a general liability policy. And our unique partnerships with associations that hold the possibility of policyholder dividends, like the Alliance of Automotive Service Providers and Wisconsin’s chapter of Land Improvement Contractors of America. It’s the people plus the products working together that make UFG a trusted choice.”
“We see the person behind the business,” says industry veteran Mark Verhagen, UFG’s senior marketing representative for Wisconsin. “We listen to needs and do our best to help address them. Taking the time to truly listen is extremely important to all of us at UFG, no matter our department. Sometimes, in complex situations especially, that human connection is hard to beat.”
“Our people are passionate about the success of our agents,” Jeffrey explains. “For example, when we heard agents say they needed fast
MIDDLE-MARKET
— Mark Verhagen
Jeffrey Miller, UFG’s online territory manager for Wisconsin, agrees.
UFG Senior Marketing Representative
that feedback. We listened and, more important, we responded to create a better experience.”
Kate Galligan
■ Branch offices in California, Colorado, New Jersey and Texas.
Pro-Quote based on agent advice,” states Jeffrey. “The newest digital enhancement we’ve launched is a time-saving pilot for Wisconsin agents: a live chat feature at ufgAgent to get real-time answers from a person at our help desk or in onlinequoting underwriting. When we say
we’re on a mission to create simple solutions we mean it.”
Mark Verhagen Senior Marketing Representative Nancy Yang Senior Underwriter Gunner Tranel Surety Underwriter
Think UFG: delivering on promises for 75 years and counting
LAST CHANCE TO REGISTER:
Pro-Quote, UFG’s intuitive online quoting platform at ufgagent.com, launched in Wisconsin in 2021 for qualifying BOP-Pro businessowners policies and supporting lines of commercial auto, cyber, umbrella and workers compensation. Along with its clear appetite guide and smart-search features, agents are calling Pro-Quote speedy, straightforward and simple to
Nick Deering Risk Control Manager
Meet some of the UFG team serving Wisconsin
“Couple our skilled teams with our strong, stable market for businesses big and small, pair that with rewarding incentives and competitive commissions,” Mark adds, “and it adds up to an exciting time to think about UFG when you’re thinking about placing business.”
Scan to talk with us.
■ Headquartered in Cedar Rapids, Iowa.
Kara Potter Online Underwriter
■ Successful multibillion-dollar-asset insurance company.
■ Business mix includes commercial insurance, excess and surplus and surety bonds.
Live chatting online is one of many value-added features when it comes to partnering with UFG. The carrier also prides itself on knowledgeable teams who bring additional service benefits. Claims, risk control, premium audit and service center are handled in-house at UFG, preserving the culture of service by rarely tapping outside firms.
Interested in becoming a UFG agent?
■ Property and casualty insurer in 37 states, plus D.C.
AVP and Branch Manager
“We’reuse.continually improving
■ Publicly traded on the Nasdaq for more than 35 years under UFCS.
Jeffrey Miller Online Territory Manager
UFG INSURANCE | 118 Second Avenue SE, Cedar Rapids, Iowa 52401 | ufgagent.com | 800-332-7977
Tyler Probasco AVP and Underwriting Manager
■ Rated A (Excellent) by AM Best for 28 consecutive years, affirmed in December 2021.
"Thedesignation.American
In 2021, the average cost per dog bite claim was $49,025, Triple-I reported, which is up approximately 39% since 2012. Not only do dogs bite, but they also cause other problems, such as injuries caused by knocking down an elderly person.
Why Dog Type Matters to Insurers
When shelters and rescues place these animals as pets, most people do not recognize their design. “Once the pit bull has decided to bite, there is no stopping it," Dorsey says. “An attack can continue for as long as 30 minutes, there is no way to determine the dog's intentions, and you never know what triggers it."
Whileconcludes.breed
UNDERSTANDING DOG BITE LIABILITY AND COVERAGE ISSUES
“As for mastiff breeds, it is not just the design of the jaw, there is a genetic design in the mind of the dog that breeders selected," says Pat Dorsey, a long-time dog trainer and expert witness in Prescott Valley, Arizona. “Given its breeding, the mastiff's intent was to destroy the prey, either animal or human. People bred these dogs to guard large estates; their intent was to breed the dog to destroy its victim."
While many dog bites do not injure or the wounds are minor, some dogs, such as mastiff derivatives, pit bulls, rottweilers and shepherd breeds, are viewed as problematic by underwriters.
Approximately 4.5 million dog bites occur in the U.S. each year, according to the Centers for Disease Control and Prevention (CDC). From 2005 to 2017, 433 Americans died from dog attacks, according to DogsBite.org. Of these fatalities, 65.6% were the result of attacks by pit bulls, with Rottweilers accounting for an additional 10.4%.
Requesting this certification from homeowners who expect liability coverage for their pet under the homeowners policy could be a solid risk-reduction tool.
Further, “breeders created the pit bull terrier by taking the mastiff and terrier, bred together to get speed and prey drive for sport—the sport is the killing of other animals," Dorsey says.
To become part of the program, “dog owners begin the Canine Good Citizen Test by signing the CGC Responsible Dog Owner's pledge," Burch says. “The pledge says that owners agree to properly confine and control their dogs, using leashes and fences where appropriate. If every dog owner did this, there would be almost no dog bites."
While “the odds of either an animal or a person surviving intact from a pit bull attack are extremely low, you can't predict it and you can't control it," Dorsey
restrictions frustrate agents and their clients, they are an underwriting tool that probably will not change.
18 | SEPTEMBER 2022 | INDEPENDENTwisconsin AGENT PERSONAL LINES
An Alternative to Breed Restrictions?
However, there is another alternative suggested over the years by some insurance experts: To rely on the American Kennel Club's (AKC) Canine Good Citizen
Kennel Club's Canine Good Citizen Program is a two-part program that teaches responsible dog ownership to dog owners and good manners to dogs," says Mary R. Burch, Canine Good Citizen director, AKC. “The heart of the CGC program is a 10step test of practical behaviors that demonstrate the dog is safe around other people and dogs."
We all know the saying, “There are no bad dogs; only bad owners." There are many lovable mastiffs, rottweilers and pit bulls; however, the dog breed can make a difference.
Dog bites, whether minor wounds or fatalities, cost the insurance industry $881 million in 2021, according to the Insurance Information Institute (Triple-I).
Various Coverage Approaches to Animal Liability Coverage
A canine incident can bite almost any insurance policy, especially with an increase in “bring-your-dog-towork" employment trends. Any of these policies can experience a dog-related liability claim: business or personal auto; businessowner's policy; commercial general liability policy; dwelling policy; farm and ranch; homeowners; watercraft policy; and workers compensation.
Yet, most states employ a strict liability rule, which means the owner is strictly liable no matter what the circumstances. Some states have a modified version of strict liability, where certain circumstances can be evidentiary. For example, in Arizona, the person bitten must not have provoked the dog for the standard to
like to believe our insureds are truthful, if your homeowner discloses a dog, some due diligence on your part can pay dividends. One canine incident can take a bite out of your profitability. Checking the insured's social media posts is a fast way to evaluate the dog's breed and pinpoint any concerns. Refer those concerns to the carrier to let them decide, but do not fail to disclose any information that could preclude Ifcoverage.questions
What Should an Agent Do?
> Nancy Germond, Executive Director of Risk Management & Education, Big "I"
Policy rescission: Misrepresentation on the application, such as presenting a dog as a different breed or failing to disclose a bite history, can result in policy rescission. The standards for rescission are high, however.
Policy sublimits: Some carriers place a sublimit on canine-related losses. Watch for these sublimits when using non-ISO forms. Many forms exclude dogs kept as guard dogs or trained as guarding dogs.
Declaratory relief action: The carrier may ask the court to rule on coverage applicability.
Litigation for Dog Bite Liabilities
claims can be steep. Damages can include disfigurement; loss of consortium; loss of future earning capacity; lost wages; present and future medical bills; present and future pain and suffering; physical damages; and treatment for post-traumatic stress disorder and its lingering impact on the victim.
On your renewal queries, ask if the family has acquired any pets. If yes, they should answer a few questions, such as the type of pet, the dog breed, and any bite history for that dog.
If you cannot place the insured without a canine liability exclusion, consider standalone dog liability policies available on the market.
Carriers may also be hesitant to defend these claims, especially when claims involve children, as bites often do, and juries encounter gruesome photos of disfigurement or death. Therefore, it pays for carriers to rely on experienced mediators to move both sides toward Damagessettlement.indogliability
Coverage denial: If the policy excludes coverage for dogs that are protection trained or the policy language limits coverage, the carrier may deny the claim.
Withoutapply.
This article was originally published on iamagazine.com in July.
Depending on the circumstances, carriers take the following approaches to dog-bite claims:
arise, ask your insured for more information, and explain the importance of full disclosure of the dog's breeding and bite or aggression history, including animal aggression.
Americans love their dogs. During the COVID-19 workfrom-home period, nearly 1 in 5 households adopted a pet of some type, according to the American Society for the Prevention of Cruelty to Animals (ASPCA). As breed restrictions tighten, agents have an important interest in helping to avoid a coverage issue or an expensive dog bite
The traditional approach to dog liability was the “firstbite-free rule." If a dog someone for the first time and had no history of previous bites, courts would usually find no liability unless certain other facts apply, such as a dog kept as a guard animal.
a statute, simple negligence laws can apply. For example, if a repair person leaves a gate open and the dog escapes and causes an injury, their employer's insurance may also apply in addition to any negligence on the part of the homeowner.
Reservation of rights letters: If the insurer believes an act may be intentional—for example an insured setting a dog on someone—the carrier may defend under a reservation of rights. This can also occur if the state or municipality has begun a criminal action against the dog owner.
Whileclaim.weall
11/2 Meeting Topic: Cyber Liability Market Update
Personal Lines Task Force Commercial Lines Task Force Employee Benefits Task Force
We'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.
10/25 Meeting Topic: Election Preview & Update
Virtual Meeting from 9 a.m. to 11 a.m. on 10/25/22, 2/28/23 and 7/11/23
Join the IIAW's Councils & Task Forces Today: s.pointerpro.com/volunteertoserve
For individuals who are interested in or who have a role in Employee Benefits
For individuals who are interested in or who have a role in Commercial Lines insurance
EmergingLeaders
Virtual Meeting from 9 a.m. to 11 a.m. on 11/1/22, 3/7/23 and 7/18/23
Virtual Meeting from 9 a.m. to 11 a.m. on 11/2/22, 3/8/23 and 7/19/23
10/26 Meeting Topic: WC Rate Decrease Overview
We will be hosting a kickoff event on for the IIAW councils and task forces to plan for the coming year. 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! Additional event details to follow.
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For insurance professionals looking to cultivate their skills for a successful career by engaging in association activities, professional development, education and events.
10/27 Meeting Topic: Replacement Cost: Determining Values for Personal Lines Customers
Virtual Meeting from 9 a.m. to 11 a.m. on 10/27/22, 3/2/23 and 7/13/23
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 11/3/22, 3/9/23 and 7/20/23
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 10/26/22, 3/1/23 and 7/12/23
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
10/27 Meeting Topic: Budgeting & Planning for 2023
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InSteadily.fact,the number of engaged full- and part-time employees dropped from 36% to 34% last year, according to a Gallup poll. And this year, that number dropped to 32%, with the percentage of employees who say they are “extremely satisfied” with their organization as a place to work plummeting eight percentage points. Meanwhile, the number of actively disengaged employees—those who are defined as disgruntled and disloyal because most of their workplace needs are unmet—rose to 17%. Yikes!
For the first time in a decade, the percentage of employees who are engaged in their jobs is declining.
I don’t think it’s all doom and gloom, though. There are some steps organizations can take to ensure they are a desirable and fulfilling place for people to work. For example, you can:
Live your values. According to Gallup, “Employees need to see the intended culture and values lived out daily. The most successful organizations put their values at the center of decisions.” Prioritize employee health, well-being and productivity. And start at the top. Make sure your people see everyone from the CEO to their peers modeling that behavior. That way, “employees can see the organization’s values lived out through decisions, which builds trust in leadership.”
WE'VE ENTERED THE ERA OF DISENGAGEMENT
22 | SEPTEMBER 2022 | INDEPENDENTwisconsin AGENT AGENCY OPERATIONS
Implement flexible working arrangements. It’s been shown that employees who work remotely or in a hybrid environment have higher levels of engagement than those who work exclusively in person.
Communicate regularly. Nothing makes people feel seen and valued like regular and authentic communication. What does that look like? It means doing the research to understand where your team members are spending their time—and reaching them there. That might be email, town halls, podcasts, the company app, or all of the above. And encourage everyone to keep the lines of communication open.
Talk about the future. According to Gallup, there are five keys to success for improving engagement, and one of them is direct, growth-focused conversations with employees. “The only way to meet employees’ needs is through conversations that actively work to address those needs,” the report says.
This is certainly not an exhaustive list of tips for improving employee engagement. What are some of your tried-and-true strategies for boosting engagement across your workforce?
My guess is that there are a few culprits behind this “era of disengagement.” First and foremost, pandemic burnout is real, and many people are no doubt feeling the strain of being asked to juggle too much with too little help for too long. Many have left in search of greener pastures, angling for higher salaries, more flexibility or other benefits; but as I discuss in another blog, one in five employees who have quit now regrets it, and only about a quarter are happy enough in their new jobs to stay. So it’s not much better for them, either.
Loss
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Pivoting has been the name of the game for restaurant owners over the past few years. Simply maintaining operations throughout the coronavirus pandemic has demonstrated the creativity and adaptability of those within the industry. Today, the restaurant industry is continuing to evolve to meet emerging trends and challenges in the postCOVID-19
In fact, according to the “2022 Travelers Injury Impact Report," which analyzed more than 1.5 million workers compensation claims the company received over a five-year period, more than half of all restaurant industry claims involved first-year employees. Additionally, an increased workload can lead to a myriad of workplace injuries, both physical and mental, for current employees, which is exacerbated by the fact that in hospitality many new hires are younger, inexperienced workers that need training for their specific job duties, as well as education about workplace safety.
PIVOTING RESTAURANT OWNERS CONTINUE TO FACE CHALLENGES
industry continues to rebound, several concerns continue to challenge restaurant owners.
“The competitive landscape is changing rapidly as business owners face the national labor shortage, new market entrants, supply chain delays, and historic inflation," says Eric Coleman, vice president, small commercial underwriting and product, Nationwide. “Additionally, changes that emerged through the pandemic seem to be here to stay, particularly the ability to service customers via online ordering, outdoor dining, customer expectations of cleanliness and transparency, and partnering with third-party delivery services such as Grubhub and DoorDash."
24 | SEPTEMBER 2022 | INDEPENDENTwisconsin AGENT
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“COVID-19era.has changed the way we dine, challenging the restaurant industry to continue to adapt," says Rachel Kallmyer, restaurant industry lead, Travelers. “This has resulted in many trends, including increased delivery facilitated by employees or third parties, greater availability of online ordering, growth in outdoor dining, eased liquor license restrictions, expanded vegetarian and vegan options, and the emergence of ghost kitchens set up exclusively for Yet,delivery."asthe
Most pressing among these challenges is the need for restaurants to hire additional staff—and the implications this has for the business, its insurance needs and its current employees. “This need for additional staffing can place tremendous workload stress on the current employees that include more tables to wait; fewer employees to handle the moving and clearing of tables; and the perceived need for additional speed to best serve patrons," says William Hughes, vice president, commercial lines, Arbella Insurance Group. “And all of the above can create overexertion on the existing staff, which is directly tied to increased workplace injuries."
“Factors that may contribute to the higher risk of injury for new hires include their lack of familiarity with the flow of operations and, in some cases, their limited experience working in a kitchen or restaurant," Kallmyer says. “In addition, the rigorous physical requirements of some restaurant jobs, including lifting, reaching, cooking and cutting, can result in strains, sprains, cuts, burns and other injuries."
This article was originally published on iamagazine.com in August.
“Reviewing coverage limits for adequate values is always important but given the rapid increase in construction material and labor costs, it is more critical now than ever to review policy limits and feel confident with coverage."
> Nancy Germond, Executive Director of Risk Management & Education, Big "I"
“By staying in close contact with clients and understanding how they're adapting, independent agents can be a critical strategic partner, alerting them to potential exposures and working with them to help make sure their business and reputation are protected," Kallmyer says.
| SEPTEMBER 2022 | 25INDEPENDENTwisconsin AGENT
Meanwhile, against spiraling inflation, agents should ensure clients have appropriate property limits not only for their building but also their equipment. “Property limits just a few years ago, or even last year, may not be adequate today," Coleman says.
Agents can play a role in educating restaurant owners about their exposure as they deal with hiring and training new employees. Also, beyond staffing challenges and workplace safety issues, agents can also support their business by educating them on risks they may not be aware of.
“It's important to not only speak the language of the restaurant owner but to truly understand their business," says Heidi Strommen, senior vice president, primary hospitality programs, Distinguished Programs. “For example, many restaurant owners don't know that their policy may not cover them for off-premises exposures."
“Even if a restaurant doesn't have a regular catering business, every agent should ask if they ever have a pop-up event at a location other than their own restaurant and, if the answer is 'yes,' make sure the proper coverage is in place," she says. “An uncovered claim can be devastating."
Are you our next Agent Owner or AFFILIATE AGENCY? learn more: Chris Illman | cillman@robertsonryan.com | 800-258-0277 | www.robertsonryan.com/agentowner more markets. bigger return. proven success.
AmGUARD • EastGUARD • NorGUARD • WestGUARD We distinguish our Workers’ Compensation coverage by providing value-added services before, during, and after a claim.Upfront loss control measures Responsive claims handling Facilitation of quality medical care (when an accident does occur) We’ve been successfully protecting our policyholders and their employees since 1983. Browse all of our products at www.guard.com Our Workers’ Compensation policy is available nationwide except in monopolistic states: ND, OH, WA, and WY. Workers’ Compensation APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY/
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information about J.M. Wilson, call (800) 666-5692 or visit www.jmwilson.com.
JM Wilson in 2021 as Assistant Brokerage Underwriter. Her previous experience includes roles as Administrative Assistant for the Michigan Department of Health and Human Services for four years and a Claims Processor at State Farm Insurance for 17 years.
J.M. WILSON PROMOTES HOTRUM TO BROKERAGE UNDERWRITER
WEST BEND MUTUAL INSURANCE RAISES OVER $500,000 TO FIGHT HUNGER
“I’m a strong supporter of this mission,” stated Rob Jacques, senior vice president – Commercial at West Bend. “And as a member on the board for Feeding America Eastern Wisconsin, I’m glad this year’s event was so successful. It affirms that our agencies and partners understand the importance of the work being done by this organization and others and are willing to respond to help those in greatest need.”
West Bend, WI (8/15/22) - West Bend Mutual Insurance Company, along with independent insurance agents who represent the company, key business partners, friends, and associates, raised over $500,000 for America’s food banks.
Members in theNews
event is the ninth such biennial fundraising event West Bend’s hosted through the years. Of the money raised, $250,000 will go directly to Feeding America Eastern Wisconsin, and the remaining funds will be distributed to other food banks throughout the Midwest and beyond to fight hunger.
“West Bend has supported our hunger relief work for many years, and this year more than ever. We are thrilled to accept such a sizeable donation that will be able to provide a million meals to local families facing hunger,” said Patti Habeck, president and CEO of Feeding America Eastern Wisconsin, a local food bank receiving a portion of the funds. “I’m thankful to the attendees for their amazing generosity and their help addressing the critical issue of hunger in our neighborhoods.”
In addition to Feeding America Eastern Wisconsin, 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 MACC Fund, Arbor Day Foundation, the United Performing Arts Fund, and the American Heart Association.
Feeding America Eastern Wisconsin is the leading hunger relief organization in the state with locations in Milwaukee and the Fox Valley. Founded in 1982 by the Rotary Club of Milwaukee, Feeding America Eastern Wisconsin is a local and independent member of the Feeding America network. Driven by our mission to solve hunger and our vision of a hunger-free Wisconsin, we are bringing more people together around the table to collaboratively address the root causes of hunger. Together with our 400+ partner pantries and meal sites, we serve nearly 500,000 people across 35 counties in eastern Wisconsin each year.
West Bend’s President and CEO Kevin Steiner again directed the occasion. “We’re so glad to be back together in the best way possible. I’m grateful to our agents and everyone who came out and generously donated to this wonderful cause that makes a difference to so many families,” Kevin said. “The need is particularly great right now, and our goal was to raise $250,000. I’m pleased to announce we doubled that and raised over $500,000!”
| SEPTEMBER 2022 | 27INDEPENDENTwisconsin AGENT
Donations were raised at an August 8 event the company hosted at the West Bend Country Club and West Bend’s Prairie Center facility. The inaugural Silver Lining Classic
Portage, MI (8/9/22) - J.M. Wilson is pleased to announce the promotion of Amy Hotrum to Brokerage Underwriter in their Portage, Michigan, office. Amy is responsible for underwriting a wide variety of new and renewal professional and brokerage accounts, as well as maintaining relationships with carriers and independent insurance agents in all states that JM Wilson writes
Founded in 1920, J.M. Wilson is a Managing General Agency and Surplus Lines Broker providing independent insurance agents access to specialty markets. With offices in eight states, JM Wilson can provide coverage for standard and hard-to-place Commercial Transportation, Property & Casualty, Brokerage, Marine, Personal Lines and ForSurety.more
We will continue to accomplish this through:
Given such, we make it a priority to volunteer and donate to local non-profits, extending the same level of care we show our clients. We recognize our business is about people and want to thank those who have helped us succeed along the way.
You can learn more and follow our journey by visiting www.robertsonryan.com/foundation.
“Now more than ever, there is a growing importance for businesses to ramp up their focus on social responsibility,” shared Chris Illman, CEO at Robertson & Ryan. “We feel compelled to give-back and make long lasting impacts in our communities,” added Illman.
We are excited to announce the formal launch of our Robertson Ryan Charitable Foundation, a 501(c)(3) nonprofit. Our foundation provides qualified outlets for making a difference in the communities we serve. Our foundation’s mission is simple, to strengthen our communities.
ARE YOU AN IIAW SUPPORTING COMPANY MEMBER?
Donations to non-profits and those in need through financial contributions and fundraising initiatives; Ongoing community volunteerism and our impactful annual companywide Community Service Day founded in 2017; Relationships built and fostered by our Agent Owners & Associates who personally form meaningful and deep connections with non-profits
Send your press releases to kaylyn@iiaw.com for a chance to be featured in our Members in the News section.
ROBERTSON RYAN & ASSOCIATES LAUNCHES A CHARITABLE FOUNDATION
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Milwaukee, WI (8/22/22) - At Robertson Ryan, we believe investing in our communities is important to building a stronger, more inclusive society so that more people and communities may thrive.
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support • Committed to serving our communities Call us for conversationconfidentialaTomSchaetz419.450.0317
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Generally, there are four things that all websites should have. Once these basic elements are taken care of, the choice of how to customize the website further lies with each individual business. However, the following website additions can be used as a starting point to establish a great website.
The first thing that a website should have is a good UX/UI design for website visitors. Short for User Experience and User Interface Design, having a good UX/UI design helps to give website visitors a good experience when they visit your website, which makes them more likely to visit it again. Doing things as small as making your website organized, easy to navigate and using bright and pleasant colors can help enhance the UX/UI design of your website.
WEBSITE CHECKLIST FOR A GOOD USER EXPERIENCE
Good Experience
If your website is static or cluttered, there are simple steps that you can take to enhancing its UX/UI design. For those who are open to having a little outside help, consider imploring the help of a website designer. With their skills and expertise, they can help you create a custom website complete with all the necessities to provide website visitors with a great digital
Visual Content
An agency’s website is one of the most pivotal parts of an online presence and being able to market your company digitally. Thus, when it comes to your website, it is important to make sure that it includes a few necessities to attract consumers and retain business.
If your agency is struggling to find or create visual media and you are an IIAW member, you can utilize a plethora of materials created just for you from the Trusted Choice Member Resource website for free.
The second thing that a website should have is visual content. Utilizing visual content is extremely important, as it makes the website more dynamic and gives it better visual appeal to website visitors. If you have not done so already, add videos, graphics and pictures to your website to increase your website’s visual aesthetic.
30 | SEPTEMBER 2022 | INDEPENDENTwisconsin AGENT MARKETING
experience. For anyone who is looking to take a more hands on and independent approach, consider using a website building template. Services such as WordPress and Weebly provide templates that can be utilized to build an organized and visually appealing website with ease for beginners.
you can also request a digital review from Trusted Choice if you are a member to help give you a more guided list on website changes to make. Together, utilizing all these tactics will help you create an amazing website that your agency worked hard to create and should be proud of.
Search Engine Optimization (SEO) Tools
Search Engine Optimization ties into helping your website to populate when consumers search certain words on search engines. Thus, the last thing to make sure that your website includes is good SEO tools to help you market yourself. Using things such a website blog and consistent keywords help to strengthen your website’s digital content count and helps to push your website higher up on the list of results from a search engine word search.
> Trusted
Once these elements have been added to the website, your website will have a good foundation that you can build from. From here, customization and adding proper coding is key. Customize your website for the audience that you are trying to reach and work with a professional to make sure that your website is properly coded so that your website functions properly and isn’t amiss on the back Inend.addition,
In addition to visual content, websites should also have concise and easy to understand copy. In this fast-paced era, consumers do not have the time to read everything present on a website. Make your copy concise and impactful, rather than long and vague.
This article was originally published trustedchoice.independentagent.com.on Choice
"As an insurance agent continuing to build my career, the IIAW and specifically the Emerging Leaders Committee ha consistently proven its value in navigating the new challenges and opportunities our industry faces. Having th level of access to industry professionals, emerging technologies, data, networking, etc. simply isn't found elsewhere. The time spent meeting and building with this committee is consistently time well spent." Brandon Leitch, Leitch Insurance Agency JOIN THE EMERGING LEADERS Contact evan@iiaw.com for more information or visit su.vc/emerging leaders to join.
Governor/Lt. Governor – Governor Tony Evers (D) and Sara Rodriguez (D) vs. Tim Michels (R) and Roger Roth (R)
Secretary of State – Secretary of State Doug La Follette (D) vs. Amy Loudenbeck (R)
State Treasurer - Aaron Richardson (D) vs. John Leiber (R)
With the largest statewide voter turnout for a partisan midterm primary election in nearly 40 years, Republican gubernatorial candidate Tim Michels and Democrat U.S. Senate candidate Mandela Barnes each won their respective primary contests last month and advanced to the general election on Tuesday, November 8. Both Michels and Barnes will go up against two strong incumbents running for reelection - Governor Tony Evers (D) and U.S. Senator Ron Johnson (R).
How Michels and Barnes won their primary elections followed two very different paths, but the general election will likely showcase two of the closest watched races in the nation. The Johnson-Barnes matchup, in particular, could very well determine which political party controls the United States Senate for the second half of President Biden’s first term in the White House. Outsider candidate Tim Michels also faces off against incumbent Governor Tony Evers in a highly competitive race that will determine if Republicans will run all of state government for the next two years or whether Democrats will still have a reliable veto option under a Democrat governor.
PRIMARY ELECTION WINNERS ADVANCE TO FACE COMPETITIVE FALL RACES
Attorney General – Attorney General Josh Kaul (D) vs. Eric Toney (R)
Wisconsin’s August primary election has determined the candidates that will face competitive fall races in less than three short months. Below are the candidates running in major statewide races this fall. Also on the ballot this November are the state’s eight congressional seats, all 99 state Assembly seats, and the 17 odd-numbered state Senate seats.
U.S. Senate – Senator Ron Johnson (R) vs. Mandela Barnes (D)
32 | SEPTEMBER 2022 | INDEPENDENTwisconsin AGENT GOVERNMENT AFFAIRS
As a reminder, all primary election results are preliminary results until the WEC certification on or before Wednesday, August 24, with the exception of those races that have recounts.
In the race for the Democratic nomination for the U.S. Senate, Lt. Governor Mandela Barnes sailed through with a successful win in his primary election that at one point in the race had a total of 9 candidates running. Towards the final weeks of the election, multiple top tier candidates (Tom Nelson, Sara Godlewski, and Alex Lasry) all withdrew from the race and threw their endorsements to Barnes which ultimately landed him the Democratic nomination. Barnes will face incumbent Republican U.S. Senator Ron Johnson in a race that will see tens of millions of dollars in outside money spent here since the outcome of this election may determine which party controls the U.S. Senate in the next Congress.
Michels, who joined the four-way Republican Governor’s race late in the game and selffinanced his campaign with $12 million of his own money, won the GOP primary with just over 47 percent of the vote. Former Lt. Governor Rebecca Kleefisch, who had campaigned for the better part of a year and once had been considered the GOP frontrunner, received 42 percent. State Representative Tim Ramthun garnered 6 percent, Kevin Nicholson 3.6 percent and Adam Fisher received just 1.2 percent. For the record, Nicholson dropped out of the race several weeks before the election, however ballots had already been printed. Nicholson’s withdrawal from the race likely helped catapult Michels to a strong victory over Kleefisch since both Nicholson and Michels ran as antiestablishment, outsider candidates, whereas Kleefisch was seen as more of an establishment candidate who was closely tied to former Gov. Scott Walker who lost to Evers in 2018. Michels surprisingly dominated the race in all six major regions of the state (see map). Kleefisch did not perform as well as she needed to, particularly in the more densely, suburban populated areas of southeastern Wisconsin and Milwaukee County. The Evers-Michels matchup is sure to be one of the more hotly contested statewide races to watch. In 2018, Evers surprised a lot of people when he knocked off incumbent Governor Scott Walker in a tight race that was decided by less than one percentage point.
| SEPTEMBER 2022 | 33INDEPENDENTwisconsin AGENT
> Misha Lee IIAW Lobbyist
In the race for the Republican Attorney General nomination to see who will face incumbent Democrat Attorney General Josh Kaul, Fond du Lac County District Attorney narrowly defeated former State Representative Adam Jarchow by less than 4,000 votes. Karen Mueller, who ran as an outsider, came in third receiving 26 percent of the vote and most likely cost Jarchow the nomination and who at one point was considered the favorite to win. Historically, the Attorney General’s race tracks closely with the results of the Gubernatorial race with very few ticket splitters. This election is expected to be similarly close as the Evers-Michels contest.
9/29 10AM-1PM Understanding The Largest Government Benefits: Social Security
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10/6 12PM-2PM The Guy in the Bar Returns
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10/27 12PM-2PM Those Kids and Their Cars
10/31 8AM-10AM Builders Risk and Contractors Equipment
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34 | SEPTEMBER 2022 | INDEPENDENTwisconsin AGENT IIAW 2022EDUCATIONCONTINUINGONLINEEDUCATION&CECLASSES
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SEPTEMBER & OCTOBER SCHEDULE COURSE SCHEDULE REGISTER FOR THESE CLASSES
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10/20 8AM-10AM Insight on Modern Day Cyber Exposures & Risk Mitigation
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Acuity has a 20year track record of beating the industry by more than double the growth and a full eight points on the combined ratio.
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GREAT CHANGES ARE HEREIS YOUR AGENCY PREPARED?
economic factors will not significantly change them either. Agencies will continue to have predictable performance, the hardening insurance marketplace will cause revenue to increase, and the need for insurance is not going away.
36 | SEPTEMBER 2022 | INDEPENDENTwisconsin AGENT AGENCY MANAGEMENT
There are a million names for the unprecedented trend we are experiencing in the current employment market. Many people are calling it the Great Resignation, the Great Shuffle, the Great Recognition, or even the Great Questioning. Whatever name you want to use for it, one thing for sure, it is without question GREAT. Over 40 million people voluntarily quit their jobs last year and this is leaving a lot of businesses – including independent insurance agencies – in a tough spot. In fact, many agencies that I have worked with over the past several months cite challenges with turnover and staffing as the reason they are considering selling. And these are primarily agencies that have never considered that possibility
to the changes in the employment market, we are experiencing a hardening insurance market, rising interest rates and a possible recession in the next several months. The experts are predicting that the 30-year fixed rate mortgage will vary between 5-7% by the end of 2022 and that we are headed towards a recession.
Will M&A slow down?
Over the past 6 years we have experienced recordbreaking M&A activity with no slowdown in sight. Many are thinking this might be the start of the slowdown, but I disagree. In my opinion, these factors are widening the gap between agencies that will acquire and those that will be acquired – but the overall rate of M&A will not slow down; in fact, it may continue to accelerate. The core reasons that make independent insurance agencies an attractive investment have not changed, and these
This has led many agency owners to ask themselves what does all of this mean for me, my agency, my staff, and my future? Is the M&A activity going to slow down? What will this do to the value of my agency? And maybe the most important question of all is “What can I do to best prepare for these changes?”
Inbefore.addition
It is true that rising interest rates make the cost of borrowing money increase. However, it is important to remember that the market for agencies is still hot. There are many buyers making the demand for agencies stronger than ever. Rising interest rates may impact the ability for some buyers to be competitive in the marketplace but, overall, the impact will be minimal because the demand is expected to remain
Inhigh.many
cases, independent agencies have performed well in times of economic down turns, some even claim that they are recession proof. M&A and PE buyers are interested in independent insurance agencies because they are profitable, have very predictable income streams, and they provide something that everyone needs, which is why many consider independent insurance agencies to be “recession proof”.
What will this do to the value of my agency?
Now that we have established that M&A will not slow down, I predict that nothing in the independent agency market will change. For agencies that are focused on growth; investing in their people; developing strong niches; and creating scale by investing in technology, relationships, and a strong infrastructure – this is your time! Your value is strong and will remain strong through these uncertain times. As the market for acquisitions continues to be hot, your agency is poised for growth and well-positioned to acquire those agencies that have not made these investments. As agencies acquire and grow their volume, the demand will continue to increase – making the value of the agencies that remain INCREASE.
Ask yourself: “Do I have an agency that is
Be willing to provide a flexible work environment so you can maximize your ability to recruit talent. In addition, consider offering the most valuable members of your team a career path or pathway to ownership. Lastly, be sure that you are communicating your plans for the agency’s future with your staff. With the amount of transition and M&A activity in the insurance industry, silence can create unnecessary uncertainty for those that are depending on you and the agency to build their future. Put their minds at ease.
Position your agency for growth, scale, and a strong future. Take a step back and ask yourself if you are investing in the areas that will position your agency to have a competitive advantage. There are many things you can do right now to position your agency for the future.
Make your agency attractive for talent
Identify the pain points in your agency and assess the technology solutions that can increase your efficiency, profitability, and overall performance. This is a cultural change that will take time, but the payoff for those that invest and implement effectively will be significant.
> Carey Wallace, Business Consultant, AgencyFocus
How can I prepare for these changes?
Assess your level of energy and appetite for change.
virtual assistants, remote workers like WHAVE or other creative resources to create capacity on your current team and give them the support needed to continue to grow and scale. Redefining the roles and responsibilities can create capacity on your staff and make a big impact.
| SEPTEMBER 2022 | 37INDEPENDENTwisconsin AGENT
The current job market is filled with companies with great benefits, preferred work culture, and opportunities to grow. Make sure your agency is competitive and attractive for top talent. This means you should have an onboarding and training program, flexible and adaptable work schedules, support through technology, and data investments to set your strongest talent up for success. Make space in your agency for your employees to learn new skills and develop their interests.
attracting talent or driving talent away?” Be sure you are investing time, technology, partnerships, resources and education to empower your team and set them up for success. You will need to have a strong onboarding and training program, invest in ongoing training and create a communication loop to make sure that you are staying in touch with the challenges that may need to be Exploreaddressed.utilizing
Through these unpredictable times, those who are investing in their agencies are going to be very well positioned now and in the future. The demand for agencies that are growing, profitable, and have volume will continue to rise for the foreseeable future. The best place to invest now is right inside your agency. For more information visit www.agency-focus. com.
Consider joining a network
You need to be honest with yourself, take a good look at your agency and your appetite for change. Investing in change is hard work and takes a lot of time and energy. If investing to adapt with the changing marketplace is not something you are interested in taking on, then it might be time to take a step back and consider your options. Agencies that wait too long to transition their ownership end up selling for a discount. There are far more buyers than sellers as well as many different types of buyers and deal structures for you to consider. Get educated and give yourself as many options as possible to make sure that you find the right fit for you, your customers, your staff, and your family.
Positioning Your Agency for the Future
Over 72% of independent insurance agencies are part of a network, aggregator, cluster, or alliance. These groups can make a huge impact on your agency by providing markets, increased commission rates, aggregation to maximize contingencies, access to services and strong networking opportunities. Not all networks, alliances, and aggregators are created equal making it critical to thoroughly review the cost, benefits, and terms of these agreements. There is no question that these groups can help agencies grow and scale through access to markets, higher negotiated commission rates, aggregation to achieve higher contingencies, access to resources, services, and networking.
Invest in technology and data
• Risk assessment - As the threshold step in developing an ISP, non-exempt licensees must conduct an initial risk assessment.
• Annual certification of compliance - Beginning in 2023, non-exempt licensees domiciled in Wisconsin are required to submit an annual, written certification to the OCI stating that the licensee is compliant with the law’s ISP requirements. These annual certifications will be submitted no later than March 1 of each year.
• Notification to OCI regarding third-party service providers - Licensees also are required to notify the OCI of cybersecurity events involving third-party service providers no later than three days after the earlier of the date the licensee is notified of the event or the date the licensee has knowledge of the event.
• Investigation of cybersecurity events - All licensees— including licensees exempt from the ISP requirements must conduct prompt investigations of cybersecurity events.
• Third-party service provider oversight - By November 1, 2023, licensees are required to exercise due diligence when selecting third-party service providers.
> Josh Johanningmeier IIAW General Counsel
Next,event.and coming due this November 1, non-exempt licensees are required to conduct a risk assessment and develop, implement and maintain a comprehensive written Internet Security Program (ISP). The ISP must contain administrative, technical and physical safeguards for the protection of the licensee’s information systems and nonpublic information.
• Incident response plan - As part of the ISP, licensees must also develop an incident response plan to promptly respond to, and recover from, a cybersecurity event.
Hopefully your agency is well-positioned and ready to meet the upcoming deadline. If you are not, do not panic, there is still time to conduct your risk assessment and develop an ISP—but I would not delay any longer! The IIAW has published guidance on the law and, as always, if in doubt, you should contact competent counsel to ensure you are in (or on the path to) timely compliance.
• Notification to consumers - Licensees must make reasonable efforts to notify each consumer whose nonpublic information has been acquired without authorization. The notice must be provided in a reasonable time, but not later than 45 days after knowledge of the acquisition. A form of the notice provided to consumers must also be provided to the OCI.
First, here is what the law generally requires if a licensee experiences a cybersecurity event:
• Notification of producers of record - Licensees are required to provide notification to the producer of record of any consumers whose nonpublic information has been acquired without authorization or affected by a cybersecurity event within 45 days of learning of the
COMMENTARY FROM COUNSEL
The law contains specific requirements for the development and implementation of an ISP, but each licensee is responsible for tailoring the program based on the licensee’s unique business and way it processes and maintains nonpublic information. Specific steps that a licensee must take related to cybersecurity include:
WISCONSIN INSURANCE DATA SECURITY LAW REMINDER - ARE YOU READY?
• ISP - Based on the risk assessment, non-exempt licensees must design an ISP to mitigate identified threats and manage the risk of a cybersecurity event. The law prescribes that the ISP should be commensurate with the size and complexity of the licensee, the nature and scope of the licensee’s activities, and the sensitivity of the nonpublic information maintained by the licensee. In other words, one size does not fit all.
• Oversight by board of directors - A licensee’s board of directors (if it has one), must exercise oversight of the licensee’s ISP.
Finally, and slightly further out, a couple requirements take effect in 2023:
Time flies—it has been just over a year since Wisconsin’s Insurance Data Security Law was signed, putting in place data security requirements to protect nonpublic information of consumers and information systems for licensees regulated by the Wisconsin Office of the Commissioner of Insurance (OCI), including, among others, insurance agents and agencies. Some of the law’s requirements include limited exemptions, while other provisions are mandatory across the industry. Your agency has no doubt been working to comply with the new law since it took effect on November 1, 2021, and with an important deadline coming up on November 1, 2022, this is a good time for a recap and a reminder.
• Notification to OCI - Licensees must notify the OCI within three business days of certain information breaches/cybersecurity events.
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