Big "I" Issue with Young Agents Survey by Insurance Journal

APRIL 16, 2012 | VOL. 90, NO. 8

WEST REGION

some things are just Better Together.

Peanut butter and jelly. Cookies and milk. CRC and Crump. Sometimes when two great things come together, it just makes sense. Two of the best names in the wholesale insurance industry are now united, creating one team to better serve you. With $3.5 billion in annual premium and1700 employees in 55 office locations, our new family of companies will be there for you, wherever you are. We will find solutions faster, smarter, and better than the rest. For retailers, we now offer an even broader range of property, casualty, and professional products available through open market placements, MGA and MGU facilities, and exclusive programs. For markets, we now offer the enhanced ability to distribute your products through one of the largest wholesale insurance networks available. Just like PB&J, this dynamic duo just made life a whole lot sweeter.

Better Together. www.crcins.com/merger

CRC |

CRC|CRUMP |

SOUTHERN CROSS |

5STAR |

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WEST

N10 On The Cover

Inside This Issue

Special Report: Young Agents Survey How the Next Generation Is Leading the Way

April 16, 2012 • Vol. 90, No. 8 • West Region

NATIONAL COVERAGE N10 Young Agents Survey: How the Next Generation Is Leading the Way N16 Closer Look: Medical Professional Liability After Health Care Reform N18 Spotlight: Business Continuity Planning N20 Why Agents and Customers Choose a Higher Price N21 Report: Reinsurers See Lower Loss Activity, Market Support N22 2012 Education & Training Directory

WEST COVERAGE 8 Ariz. Bill to Tow Vehicles Without Liability Defeated 16 160-Year Old Hanover Retaking Its Place as P/C Industry Leader 20 CEA and Red Cross Combine Forces to Raise Awareness 22 Nevada Traffic Deaths Mysteriously Jump in 1st Quarter of 2012

IDEA EXCHANGE N1 Growing Your Property Casualty Agency: Shulman N2 The Competitive Advantage: Burand N4 Making the Most of Mentorships N32 Closing Quote: Modernizing the London Market

26 Idaho, Arizona Governors Sign Electronic Proof of Coverage Law 28 Vicarious Liability Ruling May Impact Education Insureds in California

DEPARTMENTS 6 9 9 10 14 N14

4 | INSURANCE JOURNAL-WEST REGION April 16, 2012

N32

Opening Note Declarations Figures People Business Moves MyNewMarkets

www.insurancejournal.com

Do we cover landlords? Heck, we cover overlords.

Umbrellas for 30 residential and up to 30 commercial units. Rentals and owner-occupied exposures. LLCs, DBAs, estates or trusts are A-OK, but legions of doom are excluded.

PersonalUmbrella.com. We do.

Available nationally. Underwriting criteria varies by state. Visit us online for guidelines. California Insurance License 0D08438

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2/10/12 10:52 AM 2/10/12 10:54 PM AM 4/6/12 12:22

WEST COVERAGE

Opening Note Nine Out of Ten People Won’t Read This

here’s never a shortage of studies, statistics and polls to read, or write, about. And they all seem designed to get the reader to look at things another way. They are also designed to get you to scratch your head and say to yourself things like “Gee whiz,” “I never knew” or even “Wow.” As an editor I love studies, statistics and polls. They are easy to write about, and most of the time they garner solid reader interest. Take a recent poll by insurer Aflac. It shows that only 7 percent of workers in Northern California’s Bay Area “strongly agree” their families would be financially prepared if an emergency were to occur. It also reveals that 63 percent say they have no emergency financial plan at all. To highlight the high rate of unpreparedness, the survey shows that two-thirds would tap into their savings accounts to pay for an unexpected illness, 26 percent would use a credit card and 15 percent would withdraw funds from their 401(k) account. Talk about a system that’s Let’s put that in the broken. Of course no one “Gee whiz” category. wants it fixed on their backs, At a recent joint hearing in Sacramento on but all agree comprehensive workers’ compensation reform is necessary. in California with the Assembly and Senate statistic after statistic flew out of the mouths of speaker after speaker during the nearly four-hour session. Some were “Wow” stats that showed how big and unwieldy the state’s workers’ comp system is, while other numbers were seemingly parts of an apparent equation that added up to either more or less than the whole — an idea with which people who deal with workers’ comp are likely more than familiar. And depending on who was giving the stats — applicants’ attorneys, insurers, the medical community, employer representatives — those numbers often showed different entities bearing an unfair share of the burden of a system that appears once again to be broken. One person stated that workers’ comp medical treatment costs have been rising in excess of 10 percent each year in the wake of a systemic reform spearheaded by former Gov. Arnold Schwarzenegger during his tenure. Another speaker noted that accident year combined ratios are up around 130 percent, making those ratios well in excess of premiums. Then another speaker noted that injured workers are getting 60 percent less in benefits than in pre-reform era 2003 benefits. Talk about a system that’s broken. Of course no one wants it fixed on their backs, but all agree comprehensive reform is necessary. I wonder how many out of 10 people would say they see that happening? Don Jergler West Editor

EDITORIAL Editor-in-Chief Andrea Ortega-Wells | awells@insurancejournal V.P. Content Andrew Simpson | asimpson@insurancejournal.com East Editor Young Ha | yha@insurancejournal.com Southeast Editor Michael Adams | madams@insurancejournal.com South Central Editor/Midwest Editor Stephanie K. Jones | sjones@insurancejournal.com West Editor Don Jergler | djergler@insurancejournal.com International Editor Charles E. Boyle | cboyle@insurancejournal.com ClaimsJournal.com Editor Denise Johnson | djohnson@claimsjournal.com MyNewMarkets.com Associate Editor Amy O’Connor | aoconnor@mynewmarkets.com Columnists Chris Burand, Alan Shulman Contributing Writers Tim Carroll, Dave Coons, Marc Schmittlein

SALES V.P. Sales & Marketing Julie Tinney (800) 897-9965 x148 jtinney@insurancejournal.com West Dena Kaplan (800) 897-9965 x115 dkaplan@insurancejournal.com South Central Mindy Trammell (800) 897-9965 x149 mtrammell@insurancejournal.com Midwest Lauren Knapp (800) 897-9965 x161 lknapp@insurancejournal.com Southeast Howard Simkin (800) 897-9965 x162 hsimkin@insurancejournal.com East Dave Molchan (800) 897-9965 x145 dmolchan@insurancejournal.com New Markets Sales Manager Kristine Honey | khoney@insurancejournal.com Classified Advertising (800) 897-9965 x125 classifieds@insurancejournal.com

MARKETING/NEW MEDIA Marketing Administrator Gayle Wells | gwells@insurancejournal.com Advertising Coordinator Erin Burns | eburns@insurancejournal.com (619) 584-1100 x120 New Media Producer Bobbie Dodge | bdodge@insurancejournal.com Videographer/Editor Matt Tolk | mtolk@insurancejournal.com

DESIGN/WEB Vice President/Design Guy Boccia | gboccia@insurancejournal.com Vice President/Technology Joshua Carlson | jcarlson@insurancejournal.com Design and Marketing Executive Derence Walk | dwalk@insurancejournal.com Art Director Jamie Bethell | jbethell@insurancejournal.com Web Developer Jeff Cardrant | jcardrant@insurancejournal.com Web Developer Chris Thompson | cthompson@insurancejournal.com

IJ ACADEMY OF INSURANCE Director of Education Christopher J. Boggs | cboggs@ijacademy.com Online Training Coordinator Barbara Dooley | bdooley@ijacademy.com

ADMINISTRATION Chairman Mark Wells Chief Executive Officer Mitch Dunford Accounting Manager Megan Sinclair | msinclair@insurancejournal.com

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insurancejournal.com/subscribe Insurance Journal, The National Property/Casualty Magazine (ISSN: 00204714) is published semimonthly by Wells Publishing, Inc., 3570 Camino del Rio North, Suite 200, San Diego, CA 92108-1747. Periodicals Postage Paid at San Diego, CA and at additional mailing offices. SUBSCRIPTION RATES: $7.95 per copy, $12.95 per special issue copy, $195 per year in the U.S., $295 per year all other countries. DISCLAIMER: While the information in this publication is derived from sources believed reliable and is subject to reasonable care in preparation and editing, it is not intended to be legal, accounting, tax, technical or other professional advice. Readers are advised to consult competent professionals for application to their particular situation. Copyright 2012 Wells Publishing, Inc. All Rights Reserved. Content may not be photocopied, reproduced or redistributed without written permission. Insurance Journal is a publication of Wells Publishing, Inc. POSTMASTER: Send change of address form to Insurance Journal, Circulation Department, PO Box 9049, Maple Shade, NJ 08052

6 | INSURANCE JOURNAL-WEST REGION April 16, 2012

ARTICLE REPRINTS: For reprints of articles in this issue, contact Rhonda Brown at 1-866-879-9144 ext. 194 or rhondab@fosterprinting.com. Visit insurancejournal. com/reprints for more information.

ONS:

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WEST COVERAGE

News & Markets Arbitron to Pay $400,000 in Lawsuit over Ratings

Oregon Company Sues Columbia Sportswear A Eugene, Ore., company has sued Columbia Sportswear, accusing the larger company of stealing Innovative Sports’ technology and using it to make a successful line of heated clothing. The Register-Guard reported the smaller company wants Columbia to stop making the clothing in question and wants to be paid for the losses it says it has suffered. The suit was filed in Lane County Circuit Court. Columbia’s senior director of investor relations, Ron Parham, says his company is aware of the lawsuit and reviewing it. He adds, “We believe the suit is without merit.” AP

adio audience ratings company Arbitron Inc. says it is paying $400,000 to settle a case in California in which it was accused of under-representing black and Hispanic listeners in its surveys in the state’s largest cities. Lawyers for the state and the cities of Los Angeles and San Francisco said Arbitron’s “Portable People Meters” system “dramatically” under-recruited from those populations when it began in 2008. Arbitron found participants mainly by calling land-line telephones, a process that tends to under-represent minority populations. The government attorneys said the shortfall of black and Latino participants resulted in a sharp drop in advertising

rates and revenue for many radio stations that serve black and Hispanic communities. The settlement mandates that Arbitron change its methods by December to count minority listeners more accurately. In 2009, Arbitron settled lawsuits brought by the states of New York and New Jersey claiming the company’s marketing and commercialization of the service violated consumer fraud and civil rights laws. The company agreed as part of that $490,000 settlement to take steps to ensure its ratings panels are racially diverse.

Ariz. Bill to Tow Vehicles Without Liability Defeated

Hawaii Reaches $15.4M Settlement in Hikers’ Deaths

bill in Arizona that would have changed the current mandatory auto insurance laws to empower law enforcement to tow and impound vehicles if they are driving without liability insurance was defeated in the House Appropriations Committee. Senate Bill 1165, which was narrowly defeated, was authored by state Rep. John Kavanagh, R-Fountain Hills. The Independent Insurance Agents and Brokers of Arizona Inc. had raised concerns that the bill if passed could lead to the towing and impounding of a small number of vehicles of drivers who are actually insured and that it could create a liability issue for insurance agents because their vehicle identification number had been improperly inputted into the state’s database. It’s estimated more than 200,000 vehicles in Arizona have incorrectly reported VINs. Currently, a citation is issued to drivers without proof of liability insurance. Under the proposed legislation the vehicle would have automatically been towed and impounded and the charges for towing and storage would have to be paid even if the vehicle owner subsequently proved the vehicle was properly insured.

8 | INSURANCE JOURNAL-WEST REGION April 16, 2012

awaii will pay $15.4 million to settle a lawsuit involving two hikers who fell to their deaths on Kauai in 2006. The Honolulu Star-Advertiser reported the out-of-court settlement is subject to approval by the state Legislature. Honolulu attorney Mark Davis represented the family of Elizabeth Ann Brem, an attorney who worked in Orange County, Calif. Davis says the Brem family will receive $15 million. Kauai lawyer Teresa Tico represented Brem’s cousin, Paula Andrea Gonzalez Ramirez, a businesswoman from Bogota, Colombia. She says Ramirez’s family will receive $425,000, a lower amount because she didn’t earn as much as her cousin. Brem and Ramirez were visiting Kauai when they fell from Opaekaa Falls. A Kauai judge previously ruled that the state was liable in their deaths.

Declarations FDA on BPA

Tsunami Week

Private Sit Down

“The FDA is out-of-step with scientific and medical research. This illustrates the need for a major overhaul of how the government protects us against dangerous chemicals.” — Dr. Sarah Janssen, senior scientist at Natural Resources Defense Council, on the U.S. Food and Drug Administration denying a petition to ban the chemical bisphenol A, or BPA, used to harden plastic or make the epoxy resin that lines tin cans.

“A lot of people still think that their standard homeowners’ policy includes coverage for flooding.” — Pete Moraga, a spokesman for the Insurance Information Network of California, discussing Tsunami Preparedness Week in late March.

“We need to give the private sector a seat at the table.” — Craig Fugate, administrator of the Federal Emergency Management Agency, says governmental emergency management teams should work inclusively with all partners when responding to and recovering from disasters.

Paulson on The Hardford “We are pleased that The Hartford is taking steps to focus on core operations and to divest or discontinue non-core and capital intensive businesses.” — A statement from hedge fund, Paulson & Co. Inc., which calls for more changes at The Hartford to clearly delineate the P/C and non-P/C businesses.

Figures

Million

Is how much a proposed cleanup of Montana air pollution would force three industrial plants to spend on measures to improve visibility in some of the nation’s prized public lands, including Yellowstone and Theodore Roosevelt National Parks. The Environmental Protection Agency plan would clear the air in the Big Sky State of about 15,000 tons annually of sulfur dioxide and nitrogen oxides.

52%

Is the number of Los Angeles area pot shops that have formed the “medical cannabis and hemp division” of the United Food and Commercial Workers, Local 770. The 35,000-member union also represents grocery clerks, pharmacists and healthcare workers.

$100,000 That’s how much the settlement was for a man who says he was attacked and beaten in his driveway as he videotaped police in his neighborhood.

Percent of Oregon’s parents polled think the state should enforce stricter consequences for those who violate teen driving laws, according from a poll by PEMCO Insurance. www.insurancejournal.com

April 16, 2012 INSURANCE JOURNAL-WEST REGION | 9

WEST COVERAGE

People Gary Petrosino

Bryan Luci

Lindsay Billings

Matt Carroll

The Insurance Industry Charitable Foundation named Gary C. Petrosino, executive vice president of Chubb & Son and western U.S. territory field officer for Chubb, to the foundation’s national board of governors. IICF combines the collective resources of the insurance industry to give back to communities through grants and volunteer service. Petrosino has been in insurance more than 30 years. Since joining Chubb in 1978, Petrosino headed the New York zone marine operations, served as the Albany, N.Y., branch manager and was the Latin American zone officer. In Petrosino’s role as Western U.S. territory field officer he oversees field operations for the Chicago, Cincinnati, Dallas, Denver, Los Angeles and Minneapolis regions. IICF was established in 1994 and is directed and funded by the insurance industry. Since its inception, the group has contributed more than $18 million to hundreds of community nonprofits. IICF is a registered not-for-profit organization under section 501(c)(3) of the IRS code. Philadelphia Insurance Cos., a property/casualty and professional liability company for niche markets, promoted three marketing employees to the vice president level in its Western region. Bryan Luci was promoted from regional vice president of marketing to senior vice president of marketing for the Western territory. Lindsay Billings was promoted from assistant vice president to regional vice president of marketing for the Sunbelt region. Matt Carroll was promoted from regional sales manager to vice president of marketing. Luci started with the company 14 years ago as a marketing representative, Billings started as an intern in 2002 and Carroll joined in 2009. Philadelphia Insurance Cos. designs, markets, and underwrites commercial property/casualty and professional liability insurance products for select industries. The company has 46 offices across the U.S. Philadelphia Insurance Cos. is the marketing name for the property casualty insurance operations of Philadelphia Consolidated Holding Corp., a member of the Tokio Marine Group. Socius Insurance Services Inc., a management liability and property/casualty insurance wholesaler, announced the impending retirement of Chief Operating Officer Carol Rizzo and the promotion of Chris Hook to director of operations and his relocation to the firm’s San Francisco headquarters. Socius will merge its Sacramento operations into its San Francisco headquarters. The role of director of operations will replace Rizzo’s COO

10 | INSURANCE JOURNAL-WEST REGION April 16, 2012

position when she retires on Dec. 31. Rizzo started with Socius in 2001, and guided the firm through several office openings, a corporate name change and its transition to a paperless environment. Hook has been managing Socius’s Sacramento office since 2004. Privately held Socius Insurance Services has regional offices in Los Angeles, Sacramento, Elgin, Ill., and in Florida in Tampa and Miami. Socius specializes in D&O, E&O, EPL, property/casualty and umbrella coverages. Walnut Creek, Calif.-based Ascension Benefits & Insurance Solutions named Jani De La Rosa senior vice president. De La Rosa will be responsible for managing program designs, benefit strategies and business development. She will also serve as lead benefit consultant for Ascension’s large group clients. De La Rosa has more than 26 years of experience, including non-profit and charitable organizations. Ascension Benefits & Insurance Solutions is part of Ascension Insurance Inc., an employee benefits firm. Ascension is headquartered in Kansas City, Mo., and has 35 offices throughout the U.S. CompWest Insurance Co. COO and co-founder Ron Field, and Lynn Ross, vice president of marketing and business development, are retiring from the San Francisco, Calif.-based firm. Field’s retirement was effective April 13. He will continue to work as a contractor to ensure a smooth transition of his responsibilities. Ross’ retirement is effective on Dec. 31. She remains in her current role through the end of the year to help identify her replacement. CompWest will be filling both positions. Field’s position will be replaced with a vice president of product management and underwriting. CompWest is part of Lansing, Mi.-based Accident Fund Holdings Inc., a workers’ compensation insurer. San Diego, Calif.-based Arrowhead Wholesale Insurance Services named Tony McIntosh assistant vice president of its workers’ compensation practice in Northern California. McIntosh, who will be headquartered in Bencia, Calif., has more than 25 years of experience in California workers’ compensation and has held positions in various capacities on both the carrier and agency side of the business, including field underwriting, program development and management and wholesale brokering. continued on page 12 www.insurancejournal.com

Who insures you doesnâ&#x20AC;&#x2122;t matter.

Until it does.

Chubb Group of Insurance Companies ("Chubb") is the marketing name used to refer to the insurance subsidiaries of The Chubb Corporation. For a list of these subsidiaries, please visit our website at www.chubb.com. Actual coverage is subject to the language of the policies as issued. Chubb, Box 1615, Warren, NJ 07061-1615. ÂŠ2012 Chubb & Son, a division of Federal Insurance Company.

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People People, continued from page 10

He will be responsible for primary and excess workers’ compensation brokering along with agency development for AWIS.

Peter French

Max Gilman

Elizabeth Long

Concord, Calif.-based Jenkins Insurance Group, a Leavitt Group firm, named Peter French vice president in its construction and real estate practice. French’s primary focus will encompass commercial, civil and residential construction, as well as real estate. He has experience in the insurance industry as well as construction experience. Jenkins has offices in Concord, Sacramento and San Jose, and provides risk management, property/casualty insurance and employee benefits programs. As a Leavitt Group firm, Jenkins is part of a network of more than 80 independent insurance agencies across the United States. Willis North America, a unit of Willis Group Holdings, named Max Gilman regional operations officer in Willis’ personal lines practice in San Francisco, Calif. Willis provides employee benefit and risk management solutions across a range of industries. Willis’ personal lines practice provides personal risk solutions and placement services to individuals and families with complex risks. The practice includes roughly 250 private client professionals located across the United States and Canada. Gilman will have operational responsibility for Willis associates serving clients in the personal lines and private client practices across Washington, California and Arizona. He will also be responsible for brand awareness and leading business development in Northern California. He will report to Sandra Bravo, CEO of Willis’ personal lines. Prior to Willis, Gilman served as vice president at Marsh Private Client Services. He has also held leadership roles at Applied Underwriters and Nextel Communications. Gilman is based in San Francisco.

12 | INSURANCE JOURNAL-WEST REGION April 16, 2012

Del Mar, Calif.-based Champion Risk & Insurance Services L.P. an affiliate of Wood, Gutmann & Bogart Insurance Brokers, named Elizabeth Long as an employee benefits consultant. Long started her career in the import-export business as human resources manager. She has more than 14 years of employee benefits experience. Prior to Champion, Long served as a client executive with Barney & Barney LLC. Long specializes in cost containment, various funding arrangements and implementing benefits plans together with employee wellness programs. Champion specializes in lines of personal and business insurance, as well as life and health and employee benefits. Larry Pratt, Farmers’ vice president of sales, was appointed as head of distribution for California for Los Angeles-based Farmers Insurance. Pratt started with Farmers in June 1990 in Vancouver, Wash. Prior to being promoted to his current office, he was Alabama state executive director, Texas executive director and most recently the home office vice president of sales. Farmers Group Inc., a management and holding company, along with its subsidiaries, is wholly owned by the Zurich Financial Services Group. Brent Humes has retired from his position as executive vice president of Monterey, Calif.-based Strongwood Insurance Holdings Corp. Humes served with Strongwood for 10 years. Prior to Strongwood, Humes spent more than 30 years with The Hartford. Humes was instrumental in the development of Strongwood distribution companies including Networked Insurance Agents, Northeast Agencies and most recently, Amcom.

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Business Moves

The Hanover The Hanover Insurance Group Inc. is launching a second region in the Western U.S. A newly created Pacific region will be led by David Kuhn, who has joined Hanover as regional president. This new territory includes branch offices in Northern California, Southern California, Oregon and Washington. Worcester, Mass.-based Hanover launched its presence in the West in 2009, led by Regional President John Casper. Since then, Casper and his team have built a book of commercial business of nearly $400 million. The company’s western states will be allocated among two regions, with Casper continuing to lead the West region states of

Arizona, Colorado, Nevada, New Mexico, and Texas, and Kuhn in the Pacific region. Kuhn also will continue to build-out the company’s field team in the newly defined region. Kuhn comes to Hanover from QBE Insurance where he served as business practice leader. He’s held senior management positions at Bank of America Insurance Group, Countrywide Insurance Group; and served as regional president St. Paul Cos.’ Pacific and California Regions. The Hanover is the holding company for a group of insurers that includes Hanover Insurance Co., Howell, Mich.-based Citizens Insurance Co. of America, Chaucer Holdings PLC, based in London, and their affiliates. Poms, Stone, Harris & Stone Woodland Hills, Calif.-based Poms & Associates Insurance Brokers Inc. acquired Stone, Harris & Stone, a division of Brown and Brown. Stone, Harris & Stone has provided commercial and personal insurance services to the greater Los Angeles area since 1925. Poms & Associates provides services including commercial insurance, employee benefits, corporate wellness, personal lines, and risk management and risk control. The

firm has offices in California, Colorado, New Mexico and Washington. Brown & Brown, D. Bezona & Co. Orange, Calif.-based Brown & Brown Insurance Services of California Inc. acquired substantially all of the assets of D. Bezona & Co. Insurance Services Inc. in Santa Rosa. Brown & Brown Insurance Services of California Inc. does business as Sitzmann Morris & Lavis Insurance Agency. Bezona & Co. provides a variety of employee benefits products and services to clients throughout northern California. The company has reported annual revenues of $450,000. As part of the transaction, Bezona founder Deborah A. Bezona and her team will join SML’s office located in Santa Rosa, California. Brown & Brown Insurance Services of California Inc. is a subsidiary of Brown & Brown Inc. Brown & Brown Inc. through its subsidiaries offers a range of insurance and reinsurance. Irwin Siegel Rock Hill, N.Y.-based Irwin Siegel Agency Inc. has opened an office located in Boise, Idaho. ISA, a national insurance and risk management provider, also named Chad Williams as a business development director. ISA offers tailored insurance products to developmental disability, addiction treatment, behavioral healthcare, mental healthcare, home healthcare and youth development providers, as well as products like directors and officers, cyber liability, volunteer accident protection and workers’ compensation. Bell-Anderson, Michael J. Girias Washington-based Bell-Anderson Agency Inc. has acquired Michael J. Girias Insurance of Renton, Wash. This is Bell-Anderson’s third acquisition in the past 18 months. Terms of the deal were not disclosed. Bell-Anderson Insurance is an independent agency providing personal and business policies, and has six offices across Washington.

14 | INSURANCE JOURNAL-WEST REGION April 16, 2012

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While other carriers' insurance rates may be going up, State Fund is pleased to file a zero net increase for our rates with the California Department of Insurance. We've taken recent steps towards better efficiency, and we're passing the savings along to you and your clients. If you havenâ&#x20AC;&#x2122;t checked out our rates in a while, give us a call.

We protect the people who make California work.

State Compensation Insurance Fund is not a branch of the State of California.

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News & Markets 160-Year Old Hanover Retaking Its Place as P/C Industry Leader In recent years, the company has been expanding its footprint, diversifying its products, partnering with select independent agents, adding international and excess/surplus capabilities, and earning strong ratings â&#x20AC;&#x201D; executing notes it has played to varying degrees of success since its founding 160 years ago. â&#x20AC;&#x153;I tell people that one of the parts of our journey right now is taking our place again as one of the lead companies in the marketplace and itâ&#x20AC;&#x2122;s not the first time we did it,â&#x20AC;? Frederick Eppinger, CEO, told Insurance Journal in a recent wide-ranging interview. After eight years of deals shedding the life and annuity businesses then adding new property/casualty products and expertise by buying business from OneBeacon and London-based Chaucer and others, Eppinger

By Andrew G. Simpson

ight out of 160 years of history may not seem like a big deal but for Hanover Insurance Group, founded in 1852, the last eight years have seen a series of big deals. Eight years ago in 2004, the $2.4 billion heavily personal lines super-regional insurer was trying to regain momentum after a big venture into life insurance and annuities by its parent company at the time, Allmerica Financial, went sour. Today, the Worcester, Mass.-based company has $4 billion in revenues, writes only property/casualty, conducts business on a nationwide basis, underwrites a balanced book of personal, commercial and specialty lines business, and is one of the countryâ&#x20AC;&#x2122;s fastest-growing P/C insurers.

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thinks now is a good time for Hanover to grow organically â&#x20AC;&#x201D; and reflect. â&#x20AC;&#x153;We are at a milestone as a company. Weâ&#x20AC;&#x2122;re now a couple years into the expansion out West. With Chaucer we have the Lloydâ&#x20AC;&#x2122;s connection again. I feel like itâ&#x20AC;&#x2122;s not a bad time to step back and reflect on where we are and where weâ&#x20AC;&#x2122;re going and why I think weâ&#x20AC;&#x2122;re going to be quite successful,â&#x20AC;? he said. â&#x20AC;&#x153;I reflect on the last four years with a horrible recession and all the others things, the financial crisis, and for us to be growing and being upgraded and really thriving in a difcontinued on page 18

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16 | INSURANCE JOURNAL-WEST REGION April 16, 2012

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It starts with the breadth of our product knowledge. And extends to our unparalleled access to markets. At Burns & Wilcox, our experts possess the resources to protect your clients against any risk. From Property to Excess, Professional to Environmental, we can handle your clients’ exposures no matter what industry they are in. Plus, our quick quoting capabilities can grant them protection in no time. That way, if a mistake does happen, it will be water under the bridge. 800.521.1918 | burnsandwilcox.com s #OMMERCIAL s 0ERSONAL s 0ROFESSIONAL s "ROKERAGE s "INDING s 2ISK -ANAGEMENT 3ERVICES

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News & Markets Hanover, continued from page 16

ness there. O’Brien, who championed Believing that the people the variable annuity sales, were key, Eppinger did someresigned in October 2002. In thing he thinks not many other Hanover’s History 2003, the company made the CEOs would have done. Before Hanover Insurance was founded in 1852 big decision to sell its fixed a penny of revenue had been in Hanover Square in New York City. It’s life insurance business and put on the books, he hired 165 one of the 40 oldest companies on the New in August of that year hired of the OneBeacon people, right York Stock Exchange — a fact the company Eppinger to take over the away. He also took on about celebrated on April 4 by ringing the closing company. 200 new agents in the deal. bell on the floor of the NYSE. Under Eppinger, by Taking on the expense of Hanover started as a fire insurance com2005, the company had hiring people before knowing pany. It later added auto, marine and surety, completed restructuring then workers’ compensation, general liabiland reinsurance deals that Hanover Insurance Group how much business was going to be won is risky. Eppinger ity and other casualty lines. It did business led to its eventual exit from CEO Frederick Eppinger said competition for renewal with Lloyd’s in London as far back as 1880 the variable life and annuity rights business is typically fierce because and did business in China back in 1920. businesses. The company also returned to “once you announce one of these you put Hanover moved its headquarters to cenits property/casualty roots and restored its a bull’s eye on that business with every tral Massachusetts in 1969, the same year it name, Hanover Insurance Group. competitor in the world.” Every competitor expanded its business in the Midwest with The Hanover Insurance Group is now the its affiliation with Citizens Insurance Co., holding company for a group of insurers that knows the accounts will have to transfer to another company so they all go after them. based in Michigan. includes The Hanover Insurance Co., based The deal has paid off. Typical success on The insurer has weathered the 1872 in Worcester, Mass., and Citizens Insurance renewals is about 50 percent, he said, but Chicago fire, the 1906 San Francisco earthCompany of America, headquartered in Hanover sailed to an 80 percent renewal on quake, the 1929 stock market crash, and the Howell, Mich., and Chaucer Holdings plc, the business plus enough new business from 2004-2005 hurricanes including Katrina. It based in London, and their affiliates. agents to cover for the 20 percent that did also survived the 2008 financial crisis — the not renew with Hanover. only insurer in the country that had its ratOneBeacon Deal After just two years Hanover already ings upgraded during this period by A.M. Under Eppinger, the company left the writes $400 million out West. In fact, the Best, Moody’s and Standard & Poor’s. In life business behind, focusing instead on West has been so welcoming to Hanover 2011, it survived a record $362 million in expanding and diversifying its property/ that the company just announced it is creatcatastrophe losses. casualty business largely through acquisiing a second western regional division to One of Hanover’s biggest challenges tions. handle more business. had nothing to do with its property/ While he has overseen about eight casualty business. For a period starting in acquisitions since he joined Hanover, Chaucer 1992, Hanover came under the umbrella of Eppinger’s deal to acquire the renewal In July 2011, Hanover took another Allmerica Financial, which rights to business ‘We grow when other giant leap with its acquisition of Chaucer included State Mutual, one from OneBeacon Holdings, a leading Lloyd’s specialty insurof the oldest and biggest Insurance Group people don’t grow ance group, in a $474 million deal. Chaucer life insurers. In addition in 2009 was one because we solve more has expanded Hanover’s specialty capabilito selling fixed life prodof his biggest and problems for the ties and is providing additional product and ucts, Allmerica became boldest. Hanover typical agent than most acquired the geographic diversification. one of the hottest sellers Chaucer writes almost $1 billion in propof variable annuities in the renewal rights to companies. It’s as erty, marine, aviation and energy products, late ‘90s. It got into deep $400 million in simple as that.’ along with a personal and commercial motor trouble, however, after the small and middle business within the United Kingdom. stock market collapsed following the Sept. market business. The deal enabled Hanover Many of today’s Main Street risks have 11, 2001, terrorist attacks. The company to not only expand its specialty lines and global exposures and Chaucer can help began struggling to generate investment middle market appeal but also advance its Hanover’s agents with these risks, according returns sufficient to meet the guaranteed reach into western states. to Eppinger. return it promised the holders of its variable Eppinger had been looking into expandIn Chaucer’s first six months as part annuities. ing to the West and this deal would give Allmerica President and CEO John F. Hanover access to about $100 million busicontinued on page 24 ficult time, to me it all comes together into a nice story about where the company is.”

18 | INSURANCE JOURNAL-WEST REGION April 16, 2012

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News & Markets CEA and Red Cross Combine Forces to Raise Awareness By Don Jergler

n what those involved say may bring about many more such pairings, the California Earthquake Authority and the American Red Cross have joined forces to try to boost preparedness and recovery when California’s next damaging earthquake strikes. The two groups are pairing up on an auction they believe will help raise awareness of the need for earthquake preparedness and insurance. And both groups say more such partnerships are likely in the future. “The value is immeasurable for a Money from the auction number of reasons,” said Chris Nance, goes to American Red Cross’ prechief communications officer for CEA, paredness and response programs in referring to the pairing of the quasiCalifornia. Auction details are available private insurer with Red Cross. at GetPreparedCalifornia.org. The Red Cross and CEA have “I think it’s a great alliance,” said combined in an alliance in the past to Harold Brooks, CEO of the American promote earthquake preparedness in Red Cross Bay Area Chapter. “It puts California with the Great California the energy and focus on something we ShakeOut, which takes place in think is very important: coping with October, but “We’re envisioning this as and recovering from disasters and a long-term relationship,” Nance said. He added: “One of first products of this earthquakes.” He added, “I think it’s a partnership relationship is this auction.” that can only get stronger and better He’s referring to a new statewide as time goes on.” auction to American Red support the ‘A community is going Cross has lent its American Red to recover obviously expertise on preparing Cross, which is more quickly if a pop- a kit, making a fambeing promoted ulation has insurance.’ ily disaster plan, and through CEA’s being informed, while earthquake preCEA has lent its residential-insurance paredness campaign. expertise and loss-mitigation knowlThe auction runs through April edge to promote a comprehensive pre27. Roughly 30 items will be up for paredness plan for California residents, bid, including a Paris flyaway to see Brooks said. Coldplay, a celebrity-escorted visit to California has about two-thirds of Six Flags Magic Mountain in Southern the nation’s earthquake risk, with California, a new car, tickets to see and meet Celine Dion at Caesars Palace roughly 2,000 known faults that crisscross the state and produce an average in Las Vegas, and L.A. Dodger dugout of 102 earthquakes a day, according tickets. 20 | INSURANCE JOURNAL-WEST REGION April 16, 2012

to CEA. According to the 2010 State of California Multi-Hazard Mitigation Plan, earthquakes of Magnitude 6 to 6.9 on average strike California once every two to three years. While Red Cross’ role is often in response to such disaters, Brooks believes insurance is a large part of the preparedness equation. “A community is going to recover obviously more quickly if a population has insurance,” Brooks said. To help promote earthquake preparedness, and earthquake insurance, CEA in February launched its annual “Marketing Value Program,” which encourages agents to sign up and receive hundreds of pieces of direct mail marketing pre-printed with agents’ names to send to potential clients. As for the CEA-Red Cross connection, Nance said the two groups are already looking at more ways to work together. “We’re working on additional ideas,” he said. www.insurancejournal.com

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News & Markets Nevada Traffic Deaths Mysteriously Jump in 1st Quarter o f 2012 By Sandra Chereb

he number of Nevada traffic deaths jumped by nearly 25 percent in the first quarter of 2012 when compared with the same period last year, according to figures from state public safety officials. From January through March, 57 people died in Nevada traffic accidents, 11 more than last year. “It really is disappointing,” said Meg Ragonese with the Nevada Department of Transportation. “The state’s overall traffic safety goal is zero fatalities.” The report said 12 pedestrians died in the first quarter, double the number from the same time last year. Nine pedestrians killed were in Clark County, the state’s most populous. The 45 total fatalities in Clark County for the first three months of the year also were up significantly, from 27 in 2011.

Elsewhere, there were three deaths each through March in Elko and Nye counties, two in Washoe and one each in Douglas, Humboldt, Lander and Mineral. The rise in traffic deaths startled state officials and comes despite a new concerted campaign emphasizing traffic safety and a new law making it illegal to text or talk on a hand-held cellphone while driving. That law to crack down on distracted driving took effect Oct. 1, 2011, but penalties did not kick in until Jan. 1, 2012. Nevada’s “zero fatalities” campaign

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evolved after a record 432 traffic deaths in 2006. In 2011, road fatalities dropped to 246. But Ragonese said there’s no one obvious cause for this year’s increase. “Honestly, we just don’t know,” she said. Ragonese said there could be myriad factors, such as the economy or the weather. She theorized people who lost their jobs in the Great Recession may have found new employment requiring them to commute longer distances to work, making them more vulnerable to traffic crashes.

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A mild winter may also be partly to blame. Warmer weather and an early spring that seemed to begin months earlier than normal may have brought more people out on the roads than there would have been during a typical winter of ice and snow, she said. “There’s no way to pinpoint exactly what it might be,” Ragonese said. Susan Martinovich, director of the Nevada Department of Transportation, said while the state is striving to make roads safer, the “traffic safety ultimately relies on each and every driver.” Copyright 2011 Associated Press. All rights reserved. www.insurancejournal.com

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News & Markets Hanover, continued from page 18

of Hanover, it delivered $429 million in net written premium, resulting in pretax income of $32 million.

commercial lines policies in 36 states and in D.C and personal lines policies in 19 states. More than 30 percent of its total business is in two states: Michigan with 22.8 percent and Massachusetts with 9.6 percent. Its next biggest states for business are New York, California, New Jersey, Illinois, Florida, Connecticut, Texas and Maine.

Business Mix Under Eppinger, the company has diversified its business along with expanding geographically. Eight years ago, two-thirds of Hanover’s business was personal lines. Today its mix is almost one-third personal, one-third commercial and one-third specialty. Hanover’s core commercial lines business generates $1.1 billion in premiums targeting small and middle market accounts. The ‘As Simple As That’ most commonly written accounts have less Having independent agents representthan $250,000 of premium. These products ing the company is a strategy as old as the include a standard business owners policy company itself. Samuel Sage of Cleveland (BOP), commercial packages, property, genbecame the company’s first agent in 1852. By eral liability, workers’ compensation and 1865, Hanover had another 44 agents and by umbrellas. it had 400. ‘What happens is at the 1871,Successfully The company’s U.S. speend of the day there’s partnering with cialty commercial lines business reached $600 million in independent agents no machine that can 2011. Specialized products really understand the is also a stratinclude those for marine, egy that Eppinger risk, particularly on surety, industrial property, believes will define middle market or low Hanover’s future professional liability, management liability, healthcare end to middle market success. and commercial umbrellas The company risk. You need someand excess. has a total of about body that actually London-based Chaucer 2,500 agents nationknows the territory, brings even more specialty wide. capabilities in property, The company knows the category, marine and aviation, and has its deepest knows the risk.’ energy as well as liability relationships with coverage for professionals, financial instituabout 800 top agents to whom the company tions and directors and officers. About 24 gives what Eppinger calls “franchise value.” percent of Chaucer‘s nearly $1 billion in This group of agents is responsible for $3 bilbusiness is marine and aviation, 22 percent lion of Hanover’s $4 billion of business. They is property, and 5 percent is energy. get an assurance that the company won’t In personal lines, Hanover stresses appoint any nearby agents to compete with account-oriented selling of auto and homethem and they get the new products and owners along with additional companion the attention from Hanover’s professionals products for things like identity theft, valuin local offices. able items, watercraft, home care services, The strategy is about more than just condwelling fire and umbrellas. The personal tracting with the best agents; it’s about givlines segment produces $1.5 billion in busiing them value. ness, 60 percent of which is auto. “Our whole vision is that we combine The company today is licensed to sell innovation and this franchise value with property/casualty insurance in all states and agents with this notion of local adults that the District of Columbia. It actively markets have authority. We give our professionals 24 | INSURANCE JOURNAL-WEST REGION April 16, 2012

authority,” he said. “Sure we have efficient models and we have automation like everybody else, but we’re not one of the companies that says the black box runs this place.” While some small commercial lines carriers are centralizing their underwriting or decision-making, Hanover recently deployed nearly 60 underwriters to its local markets. Eppinger said each regional vice president is responsible for about 40 to 50 agents and is available to work with them to solve problems. The company plans to add more field underwriters in 2012. “Yes, a lot of it comes in automated, like everybody else, but when you have a problem, when there’s a kick out, when there’s a risk that needs some discussion or alteration we have local underwriters. It’s the complete opposite of everybody else,” Eppinger said. “What happens is at the end of the day there’s no machine that can really understand the risk, particularly on middle market or low end to middle market risk. You need somebody that actually knows the territory, knows the category, knows the risk.” This approach opens up opportunities for Hanover to pick up business when certain competitors under pressure in today’s market issue across-the-board decisions regarding, for instance, small commercial accounts. ‘Silly Notion’ Eppinger spends a lot of time trying to understand agency economics and trends and is convinced independent agents have a bright future. To think otherwise is “just crazy,” said the CEO, who, of course, would be crazy to pin his own company’s continued on page 30 www.insurancejournal.com

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News & Markets Idaho, Arizona Governors Sign Electronic Proof of Coverage Law on a 64 – 1 vote. The law takes effect July 1. Arizona Gov. Jan Brewer signed into law daho became the first state in the nation a similar bill in her state. The Arizona legisin late March to enact legislation to allow lation takes effect 90 days after the legislamotorists to use a smart phone to demontive session ends. strate proof of insurance coverage. Not to be Idaho’s bill to enable auto insurance outdone, Arizona policyholders to issue proof enacted similar leg‘Electronic proof of cov- of coverage verification via islation a few days erage is the wave of the a mobile electronic device, afterward. future and Idaho is the such as a smartphone, is Gov. Butch Otter among several similar bills first state to enact a signed Senate Bill in at least a handful of law allowing the use of states in various stages of 1319, which enables a smart phone to show passage. Idaho motorists to either show proof In California, Assembly proof of coverage.’ of coverage with Bill 1708 authored by a smartphone app or a PDF copy of proof Assemblyman Mike Gatto, D-Silver Lake, saved on a phone, as well as the traditional would enable a person required to provide hard copy proof of insurance card. evidence of financial responsibility to do SB 1319 was unanimously approved by the so through the use of a mobile electronic Senate and in the House of Representatives device, according to the bill’s wording.

By Don Jergler

26 | INSURANCE JOURNAL-WEST REGION April 16, 2012

Gatto introduced his bill in late February. Gatto’s bill awaits a hearing in the Assembly Committee on Insurance. The bill would amend portions of the state’s insurance code and sections of the California vehicle code. “Electronic proof of coverage is the wave of the future and Idaho is the first state to enact a law allowing the use of a smart phone to show proof of coverage,” Kenton Brine, assistant vice president of the Property Casualty Insurers Association of America, said just before Brewer signed the Arizona bill. “Many policyholders are living green and want to go paperless, but without changing the law, insurers are still required to send paper ID cards. Currently, Arizona and California are considering similar legislation. We hope that more states will enact similar laws so drivers can use the technology available to show they have coverage.” Following are nationwide legislation and regulations allowing electronic proof of insurance collected by PCI: • Alabama: Alabama will soon allow motorists to electronically display proof both at registration and during traffic stops starting Jan. 1, 2013. • Colorado: An existing Colorado regulation allows motorists to show proof of coverage electronically when they register their vehicles. Mississippi and Maryland may also consider legislation to allow electronic proof of coverage in 2012. www.insurancejournal.com

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News & Markets Vicarious Liability Ruling May Impact Education Insureds in California By Don Jergler

he California Supreme Court ruled that a public school district may be vicariously liable for the negligent hiring, retention and supervision of a guidance counselor who allegedly sexually abused a student. And that ruling may have insurers taking a closer look at clients to whom they issue employment practices liability insurance. The court issued its ruling on March 8, reversing a dismissal in C.A., a Minor, v. William S. Hart Union High School District. A trial court had sustained the school district’s demurrer, and a court of appeal affirmed. The Supreme Court ruling reversed that affirmation. The Supreme Court ruled on the question presented as to whether the school district may be found vicariously liable for the acts of its employees. In a unanimous decision, the judges answered a resounding “Yes,” noting that school administrators, such as principals and human resources professionals, have a “special relationship” with students. In the court’s rul‘We conclude plaintiff’s ing, it states: theory of vicarious “We conliability for negligent clude plainhiring, retention and tiff’s theory supervision is a legally of vicarious liability for viable one.’ negligent hiring, retention and supervision is a legally viable one. Ample case authority establishes that school personnel owe students under their supervision a protective duty of ordinary care, for breach of which the school district may be held vicariously liable.” In short, what the court found is 28 | INSURANCE JOURNAL-WEST REGION April 16, 2012

that if supervisory or administrative employees of the school district are proven to have breached that duty, the liability falls on the school district. “That is a bit of an expansion of the law,” said Michael Adreani, a partner at the Woodland Hills, Calif., law offices of Roxborough, Pomerance, Nye & Adreani LLP. Adreani specializes in areas including bad faith litigation, class actions, insurance regulation and employer liability. “The nexus that they draw is between the hiring individuals and the victims,” he added. The law won’t apply to every state agency, but only those who have a “special relationship” with the victims, Adreani noted. “This wouldn’t work in a case where it was a coroner’s office, for example,” he said, adding that “people who hired the coroner don’t have a special relationship with a corpse.” But the law could apply to other agencies where a special relationship between administrators and victims may exist. “You can foresee it being used in other agencies — rehabilitation for example, where there may be a special

relationship with the victim,” he said. The ruling allows attorneys for the plaintiff to go back and pursue the case to find out if principals or human resources professionals within the district were negligent in hiring Roselyn Hubbell, the counselor alleged to have molested the student. It also enables attorneys to question policies and procedures in place for hiring such individuals, and look into whether those guidelines were followed, Adreani said. And now insurers offering employment practices liability insurance may be saying to their education clientele more often, “if you want EPLI insurance, you have to follow these procedures,” he said. The harassment and molestation of the plaintiff allegedly began around January 2007 and continued through September of that year, according to court documents. The plaintiff, a young male, was roughly 14-years-old when the alleged harassment began at Golden Valley High School in the William S. Hart Union High School District. His alleged abuser was Hubbell, the head guidance counselor at his school. www.insurancejournal.com

The boy was assigned to Hubbell for counseling, and she began to spend many hours with him on and off high school premises. According to court documents, the charges are that Hubbell engaged in sexual activities with the boy and required him to engage in sexual activities, including embraces, massages, masturbation, oral sex and intercourse. The plaintiff suffered emotional distress, anxiety, nervousness and fear, according to court documents. In a cause of action for negligent supervision, the plaintiff’s attorneys alleged that the district, through their employees, knew or should have known of Hubbell’s “propensities” and “failed to use reasonable care in investigating her.” In short, the plaintiff’s argument was that the district was on notice of Hubbell’s alleged molestation of students before and during her employment by the district, but did not reasonably investigate her and failed to use reasonable care to prevent her abuse of the plaintiff. The district demurred to the complaint, arguing the negligent supervision and negligent hiring and negligent retention causes of action failed to state a claim because of the lack of statutory authority for holding a public entity liable for negligent supervision, hiring or retention of its employees. The trial court sustained the district’s demurrer and dismissed the action, and a court of appeal affirmed that dismissal. Kara MacDonald, an account executive for Lockton Insurance Brokers LLC who specializes in higher education, said the ruling drives home a point in her field. “Being proactive in this is huge,” she said. Looking at the hiring and screening policies of her clients are an often talked about topic, as is examining what carriers provide, she said, adding that looking at those policies for hiring may become even more crucial. Because when allegations of molestation or harassment are made, not all carriers provide essentials to dealing with such events, such as crisis management public relations, she said. www.insurancejournal.com

is part of an administrator’s job. “It’s definitely one of those situations “While school districts and their employwhere it’s not so much a frequency issue, it’s ees have never been considered insurers of a severity issue when they come through,” the physical safety of students, California she said. “It’s really good to look at these law has long imposed on school authorities policies to understand what your carrier can a duty to ‘supervise at all times the conduct provide you.” of the children on the school grounds and She also believes the ruling will likely get to enforce those rules and more people talking to regulations necessary to their clients, not only ‘You can foresee it about hiring practices, being used in other their protection,’” the rulstated. “The standard of but best practices in agencies — rehabili- ing care imposed upon school general. tation for example, personnel in carrying out She said that nearly where there may be this duty to supervise is everyone can be held liable in such situations, a special relationship identical to that required in the performance of their “from a janitor walking with the victim.’ other duties. This uniform in on something, to the standard to which they are held is that principal possibly knowing something and degree of care ‘which a person of ordinary not reporting it,” she said. “Coverage may be prudence, charged with [comparable] duties, denied if people know about something and would exercise under the same circumdo not report it. Knowing your reporting stances.’ Either a total lack of supervision or provisions is really, really important.” ineffective supervision may constitute a lack In the eyes of the Supreme Court justices, who cited throughout their decision case law of ordinary care on the part of those responsible for student supervision.” establishing the relationship between school Therefore, the court ruled, “a school disadministrators and students, as well as trict is vicariously liable for injuries proxithose administrators’ duties to the students, mately caused by such negligence.” screening and reporting an alleged molester

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News & Markets Hanover, continued from page 24

future on independent agents if he did not believe in them. “[W]hat’s happening in the agency channel is there’s some consolidation within agents. But the stronger agents are getting stronger. I mean their ability to add value is getting better. My view is that the world is not less complex; it’s getting more complex. And the notion that buyers don’t need help is just crazy; it’s silly. It’s a silly notion,” he said. He said people need more, not less, help. “You know, most of us don’t want to be experts in insurance. We want to run our business and live our lives. What you’re seeing is that agents have become more and more efficient providers of advice. I mean that’s what I believe. I believe that that value that they provide is getting greater

IJ TV Visit www.insurancejournal.tv for more on Hanover and Eppinger.

30 | INSURANCE JOURNAL-WEST REGION April 16, 2012

because they’re being more and more efficient in delivering it, and it’s more needed,” Eppinger said. How’s Hanover Doing? Despite the soft market, financial crisis, recession and catastrophes, Hanover has grown revenue for five straight years and, according to Dowling & Partners, been the fastest-growing P/C insurer. By year-end 2010, with OneBeacon in the fold, Hanover grew to be a $3 billion company; it was at $2.4 billion in 2004, Eppinger’s first full year at the helm. By the end of 2011, with Chaucer on board, revenues were $3.9 billion. Hanover, like many P/C insurers, ran into some rough spots in 2011, a year with recordsetting catastrophes worldwide. Hanover still posted net income of $37.1 million, although that was down 76 percent from 2010. The company’s combined ratio for the year 2011 came in at 104.6, about 10 points

of that attributable to catastrophe losses including higher-than-expected losses from floods in Thailand. But even with that, it outperformed the industry average on combined ratio. Book value per share took a dive in the financial crisis year of 2008 but since then it has been rising and in 2011, Hanover achieved the highest value ($56.24) in its history. Eppinger does not see additional major acquisitions for Hanover in the near future. Now is the time for execution. “Obviously, you think about the journey, there was the phase at the beginning that was really fixing a lot. Then we moved into building out these capabilities and enhancing the portfolio and the value propositions of our agents,” he said. “What I believe right now is we’re in a period of executing against the priorities as far as delivering value to our partners. That’s going to lead to a lot of additional growth.”

www.insurancejournal.com

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Growing Your Property Casualty Agency Digital Divide: Young Agents Versus ‘Old’ Agency Principals Are Today’s Young, Vocal Agents Trying to ‘Occupy’ Insurance?

oung producers are essential to the survival of the independent agency system. They are enthusiastic and motivated, and if you can put up with their “young versus old” histrionics, a lot of fun to By Alan Shulman work with. This exciting new breed of agent prefers to communicate, market, and sell mainly by digital means. They voice their views via social media, trade articles and conferences. The key question is … is their social drive pushing the industry forward, or are they underestimating the wisdom of their elders? Maybe both. GEICO Sells Some young agents proclaim that veteran property/casualty execs overlook the influence of instant online information and the communicative power of social media. They see insurance consumers buying from direct carriers, like GEICO, a heavy investor in these channels. This failure to adapt and spend, they posit, is why they worry about the future of the independent agency system. Old school principals, they lament, eschew Internet-based selling for traditional marketing and referrals. And when their agency is online, its presence may be outdated and ineffective. They demand better. www.insurancejournal.com

Everything’s Online Some believe that consumers can web search for everything they want to know about insurance and don’t have to query agents for information. This, in their view changes everything. But getting all of one’s insurance advice from the Web isn’t the smartest move, as online information isn’t vetted. Certain sites provide basic coverage definitions, lists of discounts and instant quotes, but price-only buyers are not the most loyal insureds. The services of the independent agent aren’t so easily replaced. Their knowledge and skills are valuable and flexible enough to maintain and grow this classic distribution channel. Insurance Spring Strident young pros proclaim the agency business is in jeopardy; worried it may vanish in their lifetime. Social media and advances in industry technology are the saving answer. And the older generation is not merely holding them back; they are killing their future. Social media messaging promotes their case and foments the overthrow of the “old ways.” But it’s tough to be a radical while wearing a tie. So, younger agents must satisfy their rebellious zeal by claiming the future as their exclusive territory. Guess what. The future is always about the young. Many of their concerns are valid; they just aren’t revolutionary.

A Litany of Threats Independent agents have been threatened by change for decades. In the 1960s it was the rapid growth of the direct writers. In the ‘70s, it was the advent of bank-owned agencies and mass merchandising (group P/C). In the ‘80s, it was the introduction of in-house computers for rating, marketing and management, as well as nascent digital marketing on AOL, CompuServe and Prodigy. In the ‘90s, it was email and websites. In this century, it’s web 2.0 and the explosion of social/mobile media. Independents know how to survive. They recognize they must continuously invest in advancing technology, some more than others, of course. And as popular as social media is, it’s still evolving. Facebook and Twitter dwarf once fashionable sites like MySpace. Players like Google+ and Pinterest are up and coming, but untested. There is still time for agencies and carriers to move

forward digitally, without abandoning effective traditional tools. Besides, social marketing isn’t free. It requires substantial investments in time and content. The Big Picture Insurance operations are fiscally conservative as there is so much at stake. It’s vital for agencies and carriers to keep up with the digital evolution and to communicate and fashion products in the ways that buyers want. But before the new overthrows the old, the industry’s historical landscape must be understood. Plus, it’s always been production, retention and profitability that count the most, and this will never change. The agency business loves its young, but alas, no one is young forever. Shulman is the publisher of Agency Ideas, a subscription-only sales and marketing newsletter. Phone: 800-724-1435. Email: alan@agencyideas.com. Website: www. agencyideas.com.

April 16, 2012 INSURANCE JOURNAL-NATIONAL REGION | N1

IDEA EXCHANGE

The Competitive Advantage This Is Not Your Father’s Industry T

his industry is changing fast. Quite a number of agency owners and carrier executives will realize this fact too late. This reality is not necessarily a sad fact because great success stories will arise from these changes. To become one of those success stories, now is the time to adapt to the new reality. By Chris Burand

New Reality #1 Wal-Mart created insurance kiosks in its stores a decade or so ago. Those kiosks failed miserably in my opinion. Many agencies that invested in them lost most of their money. But firms like Wal-Mart are going to begin selling insurance again, and I firmly believe they are going to be more successful this time. An experiment is occurring in London. Tesco, the large grocery chain, is experimenting with rating drivers based on store purchases. It is taking rating and underwriting modeling to a new level. If they are successful, they will have the ability to achieve a better pricing model. More important, they will be able to offer discounts. so much more control over their livelihood Private passenger auto has been a signifithan when an independent agent markets. cant profit driver in the United States for Agents that market insurance in the stereomany years now. When that much profit typical sense, especially web-based marketexists, there is room for discounts when ing, will be at a huge disadvantage because applied appropriately. I believe it is just a that market is price-driven. So unless the matter of time before web product has an as a large U.S. retailer, a To avoid extinction, good or better pricing combination of retailers agents have to adapt model enabling it to offer or more likely, a retailer appropriate discounts, to today’s world and a few insurance comthese agents and compaand not rest in their nies will suffer adverse panies combine to build father’s time. such a model. It gives the underwriting. insurance companies an Even if this exact model entrance into another market segment and does not materialize, it will be another compossibly reduced commission expense. So petitor using the same concept. The cheap where does this leave the agent? power of computers, software and data Independent agents that sell insurance gathering is too good now. Right or wrong, rather than market insurance might not the idea is taking hold that agents are growbe affected. The great fact of selling is that ing superfluous. To avoid extinction, agents when someone proactively sells, they have have to adapt, which means adjusting to N2 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

today’s world and not resting in their father’s time. New Reality #2 Obamacare eliminates the role of small group benefits agencies, especially peddlers. A. Rules and regulations for compliance are more than most small agencies, especially peddlers, can handle because of: The cost of compliance; and the cost and time required to gain the required knowledge. B. Companies will pay less commission because their profit margins are squeezed. C. New mechanisms will become favored in some markets for delivering health insurance. D. Companies are creating vertically integrated platforms: • They are buying hospitals; • They are buying doctors and medical practices; www.insurancejournal.com

â&#x20AC;˘ They are buying health care IT systems; â&#x20AC;˘ They are buying and creating wellness programs. E. The group carriers are buying each other, merging and getting huge. When they are this huge, and are so vertically integrated, they do not need small agencies writing small clients to deliver value, especially a peddler that has not invested the time and money to become knowledgeable and compliant. On the other hand, this is a great opportunity for true experts delivering knowledge, services,and goods that go far beyond just health insurance policies. New Reality #3 Rebating is here to stay. The situation is different in every state. â&#x20AC;˘ In some cases, it seems the state insurance department has blessed the practice. â&#x20AC;˘ In some states, it is only legal under certain circumstances. â&#x20AC;˘ In some states, the definition of rebating remains muddled. â&#x20AC;˘ In some states, rebating is only an issue in property and casualty insurance, and in other states, it is only an issue in benefits. â&#x20AC;˘ In some states, it is a stereotypical issue of giving a client a gift of some form. More important is the new form of offering clients valuable services, such as loss control and wellness programs, for free. Sadly, too much of the insurance industry has become a de facto commodity in perception within and outside the industry. The reality is that it is far from a commodity, but perception is what matters. To stand out, an agency must offer something other than just insurance. What are you offering? New Reality #4 At least 4,000 new independent agencies and even more new agents are growing organically with great success. Just because your fatherâ&#x20AC;&#x2122;s agency has written the large nonprofit and the school district since time immemorial does not mean these accounts, which likely subsidize the agency, should be taken for granted. These accounts are more vulnerable than ever to all these new agencies, and agencies delivering so much more www.insurancejournal.com

than a price. Your father could get away with just renewing and making the appropriate appearances. This is not your fatherâ&#x20AC;&#x2122;s industry anymore though, so what are you going to do different? Agents that take control of their own future through proactive selling, prospecting, cost-cutting, superior knowledge, and sim-

ply recognizing that the P/C industry is no longer an annuity ticket have phenomenal opportunity. For all the others, the annuity coupons are running short. Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719-485-3868. Email: chris@burand-associates.com

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April 16, 2012 INSURANCE JOURNAL-NATIONAL REGION | N3

IDEA EXCHANGE

Human Resources Making the Most out of Mentorships I

t is no secret that the workforce demographic is changing, adding a host of new concerns for both employers and employees. As organizations examine their talent pipelines for incumbent leaders, workers struggle to stand out among their peers as the obvious choice. Career and leadership development have taken center stage. By Dave Coons Skilled employees are finding that options are opening up as the industry shifts to a candidateâ&#x20AC;&#x2122;s market. Meanwhile, businesses are realizing the importance of retaining and cultivating a fruitful workforce. Employee engagement and retention strategies are top of mind as organizations prepare for the future. With so much on their plates, many will overlook the power of mentoring. Yet those who understand the importance of mentorships in the workplace will enjoy the many benefits. Mentoring can take on many forms. In the quest to form meaningful mentorships, many will find that there is no right or wrong way. The responsibility is on the mentor and mentee to take the initiative and develop beneficial relationships. It does not have to be difficult; proactive players will likely come into it naturally.

get the most out of the experience. Ignore convention and adapt to an arrangement that makes sense. Mentoring programs Grow Relationships should be unstructured; otherwise, they can When it comes to initiating mentorships, feel forced. some struggle with where to start. The key When you think of mentoring in a tradiis to develop the relationtional sense, you likely picships around you and There is no denying ture a formal relationship understand what you are between a junior employee the power a hoping to get from the and a senior employee who mentorship can experience. holds a role that the junior have on both While formal mentoremployee aspires to. Career ships have certainly parties involved. moves in todayâ&#x20AC;&#x2122;s market worked in the past, are more lateral than in todayâ&#x20AC;&#x2122;s workforce will likely flourish under the past; many will not choose a linear path a more casual arrangement. By growing these to the top. For this reason, it is okay for the relationships, you can naturally gravitate in mentee to assume relationships with several the direction that makes the most sense and advisors. In essence, the employee creates N4 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

a network of support to assist in exploring career growth options. This is not to say that a formal one-on-one mentorship is a bad choice. It certainly will benefit some people to sit down for formal meetings with their mentors. But it is recommended to explore options before a relationship is formalized. Make it a Two-Way Street The great thing about mentoring is that it is a symbiotic relationship; it is one in which both parties benefit. Even those who have already claimed success in their fields can find value in mentoring. Outside perspectives are helpful in every role. Those that will excel the most in the role continued on page N8 www.insurancejournal.com

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Human Resources Mentorships, continued from page N4

of mentor will understand that the relationship is an opportunity for them. For one, it provides a chance to sharpen leadership expertise. Listening, explaining and teaching on a one-on-one basis allow the mentor to hone in on those invaluable skills. Further,

a strong mentor will accept it as a learning opportunity. By teaming up with a less senior member, the mentor can pick up on cultural cues to keep up with an evolving corporate culture. Make the value proposition clear. What are you hoping to get out of

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the relationship and what can you offer? Get the Most Out of It What exactly can a mentor do to provide guidance? Mentoring can happen in a variety of forums. It can be interactive or observational in nature. Mentors and mentees must figure out together what activities will be helpful, but here are some ideas to consider: â&#x20AC;˘Shadowing: The act of simply watching a mentor execute critical parts of their job is very revealing. Mentees can get a feel for the daily demands of positions they aspire to, as well as the traits required to get the job done. Further, viewing interactions between higher-level employees offers great insight on communication techniques. â&#x20AC;˘Reviewing goals: As with any business venture, set goals. Schedule time to regularly review the goals and the tactics for getting there. Re-evaluate the goals for changes in direction and adjust accordingly. â&#x20AC;˘Networking: An invaluable resource that a mentor can provide is his or her personal network. If the mentor is personally unable to help the mentee out on a particular issue, he or she can likely provide the name and email address of a trusted industry connection. â&#x20AC;˘Conversing: We canâ&#x20AC;&#x2122;t forget about the simple act of holding a conversation. Set aside time to discuss successes and failures from both mentee and mentor. Discuss emotions and actions involved, what could have been done differently, and how to move ahead. There is no denying the power a mentorship can have on both parties involved. Those who engage in mentoring are granted invaluable career insight, while organizations receive assistance identifying the next generation of leaders. Remember not to put the emphasis on structure or processes, but on the relationships that naturally develop. Mentorships donâ&#x20AC;&#x2122;t have to be permanent and are likely to change as both parties explore and take advantage of the opportunities todayâ&#x20AC;&#x2122;s market provides. Coons is senior vice president of The Jacobson Group, a national provider of talent to the insurance industry. Phone: 800-466-1578 or dcoons@jacobsononline.com.

N8 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

www.insurancejournal.com

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By Andrea Ortega-Wells

N10 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

www.insurancejournal.com

here’s a change happening in the insurance industry — a big change. Young independent insurance agents are leading a revolu-

tion. It’s a revolution of means more than ends. Young agents tend to agree with those who came into the business before them on some of the basics of the business, including that insurance is about building relationships, but the young have different views about relationships, how to go about building them and what tools should be used in doing so. The revolutionaries are a passionate lot and nobody is more passionate about changing the industry than Jason D. Cass, owner of the JDC Insurance Group based in Centralia, Ill., who also serves as chair of the Independent Agents & Brokers of America’s Young Agents Committee. Cass goes so far as to compare the change he advocates to what has occurred in Tanzania, Libya, Yemen, and, soon, Syria. Well, not exactly like those revolutions, but similar to the extent that young people using social media were the catalysts for change in those countries. Through social media, people in countries like Tanzania, Libya and Yemen, were able to see the world outside their own country. “That caused an eruption,” Cass says. Cass thinks that same type of eruption is happening today in the insurance industry. That’s not to say that agencies have held back progress, he says. But change and progress in the insurance industry have been slow to come, according to Cass. “We’re about 15 years overdue for a revolution, but so were those countries,” Cass says. While young agents agree that success relies mostly on relationships, how they develop and maintain relationships today differs from the past thanks to technology and social media tools. Cass, who started his own independent www.insurancejournal.com

agency in 2009 — is one example. His mostly commercial lines agency doesn’t have a traditional store front. “I am a virtual agency,” Cass says. “I work out of my house. I don’t do any advertising. I do a lot of Facebook marketing. I do a lot of online social media marketing. That’s basically how I drive my business.” Thirty-year-old Jill Roth, a young producer at Ahart, Frinzi & Smith based in Alexandria, Va., describes the younger generation of insurance agents as a “hands-off” generation, where email and social media have replaced more traditional marketing. “It’s not really so much a face-to-face and phone call generation,” Roth says. “It’s more of a website, any time that you want, or is convenient for you [generation]. It’s a generation of technology and convenience.” When it comes to the digital world, today’s young independent insurance agents are hooked on multiple levels. Of the 513 young agents responding to the 2012 Insurance Journal Young Agents Survey,

75.2 percent reported having a Facebook page, 73.7 percent use Linked In, 28.5 percent use Twitter, 84.7 percent use an iPhone or other Smartphone, 44 percent use an iPad or other tablet device, and 10 percent report writing a blog — all for their work as an independent insurance agent. This younger generation has to lead the way to upgrading how the insurance industry operates, Roth says. “It can’t be left up to our fathers.” The encouraging thing for these passionate young agents is that when and where they try to lead, their agencies are increasingly willing to follow. Roth joined the ranks of her father’s insurance agency at 24, after working for a member of Congress for a couple of years. She says now more than ever is an opportunistic time to get involved as a young agent. “Things are changing so quickly within the independent insurance system, including technology, marketing and social media, especially,” she says. continued on page N12

What Young Agents Earn Under $30,000

13.0%

$31,000 to $50,000

32.1%

$51,000 to $75,000

27.3%

$76,000 to $100,000

10.6%

$101,000 to $125,000

4.2%

$126,000 to $150,000

4.0%

$151,000 to $200,000

5.0%

More than $200,000

3.8%

April 16, 2012 INSURANCE JOURNAL-NATIONAL REGION | N11

SPECIAL REPORT

Young Agents Survey continued from page N11

Concept of Work Young agents are using technology in innovative ways that challenge the concept of

“work” in an independent agency, says Peter van Aartrik, CEO of Aartrijk. “When they work, where they work, how they work, what they call ‘work,’ and why they work. It’s all upside down from what baby boomer principals traditionally have expected,” van Aartrijk says. Technology is the big driver when it comes to the changing work behaviors of young agents. “The connected consumer — and the connected and mobile young agent — is always working, in a sense, and always a part of their connected communities. That doesn’t fit into a 9-to-5 work day,” he says. The “connected community” and young agents’ role in that community is modernizing the agency distribution network, he says. “I do think with the young agent influx you’ll see a vibrant agent and broker distribu-

Young Agents’ Outlook on Their Career

Outlook on Attracting Quality Talent to the Industry

In her family-owned agency, the younger generation is helping to drive marketing plans for the future. “My ideas, along with the younger people in our office, are getting put to the very top of our marketing plan,” she says. Right now is a great time for young agents, she adds. “There are so many opportunities to do exactly what they want and think is going to be successful in the future.” Cass agrees, now is an ideal time for young agents to lead the way. “When we can start carrying that momentum forward and start getting our revolutionaries to mount up and get going; it’s going to push this industry forward,” he says. “It’s happening now.”

7.8%

4.3% 10.8%

9.2%

Very Optimistic 53.7%

43.2%

Cautious

31.2%

Very Optimistic

Optimistic Not Optimistic

Believes 2012 Income Will Be Greater Than 2011

Not Optimistic

Outlook on U.S. Economy in 2012

8.1%

8.4% 9.8%

Very Optimistic 14.7%

51.9%

Very Optimistic 33.6%

Optimistic Cautious

25.3%

Optimistic Cautious

39.7%

Not Optimistic

Outlook on the Future of the Independent Agency System

Optimistic Cautious

48.1%

Not Optimistic

Outlook on Soft Market Ending in a Year

2.3% 19.2%

37.0%

11.2% 13.3%

Very Optimistic

Optimistic 32.4%

Cautious 41.5%

43.2%

Not Optimistic

Independent Agents' Ability to Grow Personal Lines Market Share 27.3%

Independent Agents' Ability to Grow Commercial Lines Market Share 2.8%

Very Optimistic Optimistic

48.4%

Cautious Not Optimistic

6.9% 17.4%

Very Optimistic

Optimistic

Cautious Not Optimistic

N12 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

19.4%

24.4%

Very Optimistic Optimistic

53.4%

Cautious Not Optimistic

tion channel evolve into something that will feel more ‘modern,’” he says. “The online and offline world will feel like they’ve merged. Van Aartrijk says that agency principals with vision will be served well by attracting and keeping young agents, especially if young agents are given the opportunity to help shape the future of the agency. “These folks have a lot of energy — if you let them run,” he says. “They’re like wild stallions.” However, attracting quality young agents can be difficult in an industry that young people view as behind the curve in terms of technology. “In order to attract young agents to our industry, we really need to embrace technology,” says Ryan Hanley, a 31-year-old agent at The Murray Group Insurance Services Inc., an independent family-owned insurance and financial services agency in Albany, N.Y. While almost half (47.8 percent) of young agents rate the property/casualty industry’s use of technology as “good,” more than a quarter (27.8 percent) of those responding to the survey rate the industry’s use of technology as just “fair.” Just 18.3 percent of young agents say the industry’s use of technology is “excellent,” according to the survey. Not Attractive Career Choice The industry’s low technology score could be one reason that insurance is not an attractive career option to other young people. The majority of young agents rated the industry’s career attractiveness to other young people as either just fair (41.7 percent) or poor (20.8 percent), the survey revealed. “If I’m 24 and I just got out of college or just got my master’s degree and I’m a top of the line professional, who as an industry, we would love to have this person … If you’re still forcing them to handwrite applications and fax business to carriers, they’re not going to be interested,” Hanley says. “They’re taking classes for their master’s degree using laptops and iPads and doing everything online. Then they jump into an industry, which says, ‘Oh no. We don’t do it that way anymore. You still have to use this abacus and count with shells and stuff.’…. They’re going to look at [the industry] and they’re going to go, ‘I’m not going to become www.insurancejournal.com

Profile of Young Agents Older Side of Young 55.1% are 31 to 40 years old; 44.9% are 30 and under.

Career Choice

part of that,’” Hanley says. There are many experienced members of the industry that are doing great things in technology and social media, says Hanley. But younger agents are the ones who appear to be pushing technology and social media, making it a priority. “You have agency owners, like Jason Cass, who have essentially said, ‘I only want to do business with people who are willing to communicate via these new tools.’ That’s a pretty innovative idea,” Hanley says. Relationships for Younger Agents Success in the insurance business is mostly about building relationships, agreed 94.1 percent of young agents in this year’s survey. But how young people build those relationships differs. Young agents like Cass and Hanley are taking traditional means of agent-customer communications, like frequently asked questions (FAQ), and turning those into new media opportunities, such as 100 insurance questions answered through video. “Our FAQ is actually 100 blog posts, which are essentially a 100 YouTube videos where we actually answer the question,” Hanley says. “It gives people a chance to get to know us a little better, to build relationships.” Answering questions for customers isn’t new, but the methods used by young agents to reach customers are. “It’s not necessarily doing business any differently,” Hanley says. But young agents who’ve grown up with technology have found ways to apply new tools to their profession. “I think it’s only natural that they’re the ones that do it because they’ve grown up with the technology.” Young agents are also using technology and social media to brand the person rather than the business, says Van Aartrijk. Brent Kelly, 34, a producer for Clemens & Associates based in Bloomington, Ill., didn’t grow up in insurance but jumped into the agency business soon after college. Kelly, who also operates a professional website outside of his agency’s website, launched a consumer-oriented insurance blog, The Insurance Coach, about a year ago. The success of his business website (www. brentkelly.net) and his blog, as well as his www.insurancejournal.com

interest in specializing in professional liability, is now leading him to another adventure: a specialty niche blog in professional liability. Kelly says that blogging allows him to put a personal touch on a boring subject like insurance. “I’m very involved with the process of people knowing, liking, and trusting you before they buy,” Kelly says. “How do you do that online? Through blogging, providing valuable information, and ways to help people solve problems.” Kelly says he sees a lot of younger agents putting their own spin on a subject, and often making it better. “I think a lot of agents are looking at doing that, too, where they can put their own stamp of individuality along with a very important financial product.” From that, customer relationships develop, he says. “And then as they develop that trust, it’s ‘Hey, you know, this professional insurance thing is pretty important for my business. Who do I talk to? Well, this Brent guy seems like he knows what he’s doing. I think I’ll talk to him,’” Kelly says. Kelly says he’s been fortunate to receive support from his agency’s owners when it comes to his social media marketing. “I really haven’t had much pushback,” he says. “I’ve had people raise eyebrows, like ‘Well, why are you doing that? That’s kind of strange, that’s kind of weird.’ But I think in the last year and a half or two, as I’ve gotten more involved with social media and blogging, they’re starting to see some of the contacts I’m making, and that it works.” Winning Over Skeptics At the end of the day new business success does a lot to convince skeptics, he says. “Business owners I talk to, or even just individuals I talk to, that are in the 23 to 35 year old range, have always grown up around technology. It’s not a question of have you used it? It’s, ‘Well, what are you using?” Because it’s just always been there; it’s part of their life,” Kelly says. The young agent revolution is trying to get the industry to understand how significant technology is in the lives of younger generations. “I think with young agents and the movement that I think a lot of us are trying to make is getting the insurance industry on board with that,” says Kelly.

83.1% consider insurance to be a permanent career choice; 14.3% are unsure.

Experience 26.6% have less than three years in insurance; 23.5% have three to five years; 28.8% have six to 10 years; 21.2% have 11 or more years.

Education 65.0% have a college degree; 57.6% have completed or are working on an insurance designation.

Family Affairs 59.8% work in family-owned agencies.

Employment Status 9.8% presently are sole owner of an agency; 16.0% share ownership with partner(s)

Ownership Dreams 74.2% do not presently own an agency; of these, 62.2% would like to own someday but just 40.0% report feeling very confident ownership dreams will come true

Working class 58.8% work between 41 and 55 hours a week.

Gender ID Male 65.5%; Female 34.5%

Recruitment Target 53.7% have been offered a job by another agency.

Van Aartrijk says that an agency’s physical environment may be just as important as its digital environment too when it comes to young agents. “It’s not only an attitude adjustment that many principals need, it’s a physical location adjustment,” he says. “Is the work environment itself something that young agents will want to be associated with?” Or does the agency office “smell like a nursing home?” For Cass, and his virtual agency, there’s no better time than now to be a young agency owner. “If the average agent knew what I did 8 a.m. to 5 p.m. every day, everybody in the world would want to be an insurance agent,” Cass says. “I play PlayStation between 10:30 a.m. and 11:15 a.m. every day, and between 2:30 p.m. and 3:15 p.m.” For those who think Cass is wasting valuable time, he says: “It was always acceptable for smoke breaks throughout the history of work. But it’s never been acceptable for different types of breaks, or to be able to use social media at work.” Now, time is on his side. In the view of the passionate Cass: “Businesses that are open to the ideas of today are the agencies that are going to be the best in the future.”

April 16, 2012 INSURANCE JOURNAL-NATIONAL REGION | N13

NATIONAL COVERAGE

MyNewMarkets Fire Equipment Dealers and Fire Sprinkler Contractors Insurance Market Detail: Zurich Programs’ (ZProgramsMatch.com/landingdirect.aspx) appetite offers coverage for fire sprinkler contractors, fire suppression system testing, fire equipment dealers and fire extinguisher servicing contractors with policyholder annual receipts of $150,000 to $15 million. Coverage available through this program includes general liability, property/inland marine and workers’ compensation. Available limits: As needed Carrier: Zurich in North America States: All states Contact: Customer Service at 866-873-0782

Vacant Homes Market Detail: Sadler Wholesale Personal Lines (www.sadlerwpl.com) offers vacant home coverage with a specialized market. Available limits: Maximum $5 million Carrier: Sadler WPL States: All states except Kan., La., Miss., Mont., N.D., Neb., S.D., Tenn., W.Va., and

Wyo. Contact: Laurie Gray at 804-767-0218 or email: lgray@sadlerinsurance.com

Emergency/Non-Emergency Transport Market Detail: Kinsale Insurance Co. (www.kinsaleins.com) targets emergency/ non-emergency transport classes. The policy structure includes: professional liability and general liability coverage; claims-made and reported coverage form (general liability occurrence coverage form may be used for certain risks). Policies issued with a per claim deductible that applies to both indemnity and expense. Broadened coverage is available for select risks and may include: incident trigger, defense outside the limit, silent on punitive damages, indemnity only deductible, etc.; one-, two- and three-year tail options available. Professional liability and general liability overage can be written on a stand-alone basis with separate limits, or a combined basis with a shared aggregate limit; primary GL/PL limits available up to $2 million. Limits up to $5 million avail-

able on an individual risk basis. Employee benefits and non-owned auto coverages are also available. Available limits: Minimum $1 million, maximum $5 million Carrier: Kinsale Insurance Co. States: All states except Minn. Contact: Bob Neal at 804-289-1318 or email: bob.neal@kinsaleins.com

Agribusinesses Market Detail: Equisure Inc.’s (www. equisure-inc.com) agribusiness coverage includes care/custody/control, commercial general liability, professional liability. Equisure provides insurance benefits to thousands of equestrians and associations. Available limits: As needed Carrier: Unable to disclose, admitted and non-admitted available States: All states Contact: Diane Lesher at 800-752-2472 or email: diane@equisure-inc.com

Platinum Food Services Program Market Detail: Platinum Program Managers & Insurance Services Inc. (www. ppmins.com) has a competitively priced workers’ compensation program for grocery stores, bakeries and restaurants. Standard commission is 10 percent. Available limits: Minimum limit $5,000, maximum $1 million Carrier: Unable to disclose, admitted States: Calif. only Contact: Dan Rieden at 949-209-0233 or email: danr@ppmins.com

Pest Control Program Market Detail: BancorpSouth Insurance Services Inc.’s (www.bxsi.com) pest control program provides commercial general liability, commercial property and inland marine coverages to residential and commercial pest control operators not engaged in fumigation and to landscape and gardening operations. Available limits: As needed Carrier: Unable to disclose States: Ala., Ariz., Ark., Conn., D.C., Dela., Fla., Ga., Ind., Ky., La., Maine, Mass., Md., Miss., Mo., N.H., N.J., N.Y., Ohio, Okla., Pa., R.I., S.C., Tenn., Texas, Va., Vt., and W.Va. Contact: Dennis Vidrine at 225-336-3299 or email: dennis.vidrine@bxsi.com N14 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

www.insurancejournal.com

Hunt Club General Liability Insurance Market Detail: Yates Insurance (www. yates-usa.com) provides general liability insurance to hunt clubs through an A-rated carrier. The broad form policy includes all member-to-member claims and all club members, guests and family members. No NRA membership required. Portable policies that will follow the club wherever they travel within the United States, its territories and possessions are available. Policy includes bodily injury, property damage, personal injury and advertising injury liability coverage. Standard $1,000 medical expense coverage with options to increase available. Available limits: Minimum $100,000, maximum $1 million Carrier: Northland Insurance States: All states except Ala., Alaska and Hawaii Contact: Customer service at 866-505-2663

Contact: Customer Service at 800-606-0621 or email: info@insurtecinc.com

Herbals & Dietary Supplements Market Detail: SHG Insurance Services LLC (www.shgins.com) provides CGL including products for dietary supplements and herb-

als. The company will entertain manufacturers, distributors and importers; new ventures as well as established firms. Available limits: Maximum $2 million Carrier: Unable to disclose States: All states Contact: William Ambler at 805-686-1148.

HIPAA Liability /Medical Market Detail: Gaksure Corp. (www. Insurebest.com) offers defense coverage for doctors, groups, medical professionals, and employees who inadvertently release medical information in violation of the new HIPAA laws. Fines can reach $250,000, and certain intentional acts can be prosecuted criminally. Coverage is still being finalized to cover various aspects of this HIPAA Law. Available limits: Minimum $300,000, maximum $1 million Carrier: Unable to disclose, admitted and non-admitted available States: All states Contact: Gary Kenoff at 800-425-7873 or email: gakfamily@aol.com

LED Teeth Whitening Insurance Market Detail: Insuretec Tanning and Spa Insurance (www.insurtecinc.com) covers salons performing LED teething whitening services. More salons and spas are offering these services to their customers. Insurtec also covers the other services a salon or spa may offer, including tanning, esthetics, massage and cosmetology. Available limits: Minimum $300,000, maximum $3 million Carrier: USF, Victoria States: All states except Alaska and N.Y. www.insurancejournal.com

April 16, 2012 INSURANCE JOURNAL-NATIONAL REGION | N15

CLOSER LOOK

Medical Professional Liability

How Health Care Reform Will Reshape the Medical Malpractice Market By Amy O’Connor

he Supreme Court is holding the fate of the Patient Protection and Affordable Care Act of 2010 in its hands, but that hasn’t stopped the medical malpractice liability market from developing new products and taking other factors of “Obamacare” into consideration. Frank Castro, National Health Care Practice leader for Willis North America in Los Angeles, said there is a lot happening in terms of health care reform exposure education, and not just with insureds. “We are doing a significant amount to educate commercial insurance carriers on risks we see facing clients and prospects [as a result of health care reform],” Castro said. “We are seeing some innovative discussions going on within [insurance] organizations about what some of the most important needs are for clients and simply around

health care reform preparedness.” Willis’ discussions have yielded one product so far for the post-health care reform medical liability marketplace, called Accountable Care Organization Insurance Liability Policy. Accountable care organizations, or ACOs, are defined as networks of health care providers working together to provide full-spectrum health care services for patients. The ACO model also will employ billing systems that pay health care operations based on the quality of patient care they provide, rather than on each individual service. Castro said even if the health care bill is overturned by the Supreme Court, ACO-like structures still will be developed, meaning policies like Willis’s will become necessary. “The health care organizations in North America realize that the [fee-for-care] policy we have now cannot go forward,’’ he said. “The payment methodology change is occur-

N16 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

ring either with or without health care reform.” Willis’ policy is a standalone product that addresses the risks these ACOs will face, including: privacy; regulatory risks; vicarious liability; employment issues; IT network development; group billing challenges; capital investment needs; legal challenges created by interplay of state and federal laws; and distribution of shared savings and/or loss payments to stakeholders. The policy includes D&O coverage, managed care operations liability; medical professional liability; general liability, third-party privacy protection and first party privacy protection; fiduciary liability; and a billing errors and omissions liability option. The policy is through IronHealth, a division of Ironshore. Cause for Concern Another cause for concern for medical malwww.insurancejournal.com

not seen a rise in claims, nor is that reflected practice insurance companies, according to we are monitoring very carefully.” in the national data that he has been followa recent report by Hiscox, is the rise in large MMIC launched a risk retention group in ing. However, he said the medical malpracclaims, or “super losses,” which are those of January because of the consolidation happentice arena has been in a period of low fre$50 million or more. The report, which cited ing in the industry. The company needed quency for the past five losses from March to do so to work with insureds expanding years and that it is just 2010 through January beyond the company’s current eight-state terHospitals and health care a matter of time before 2012, found mediumritory, McDonagh said. have done a great job that will end. size losses of $2 milCastro said Willis also has not seen evimitigating losses, but the lion to $10 million are dence of anything that could turn the market bar continues to rise. Beyond the Supreme also growing steadily. quickly, and expects the market will remain Court Thompson said the flat for the foreseeable future. Of more urgent concern, McDonagh said, is major concern is that there were a number of For now, he said, independent insurance the consolidation of the health care industry large losses in a short period of time, and it agents should focus on how they can best that will continue regardless of what hapraises questions for insurers about how they serve their clients when, not if, health care pens with the Supreme Court’s decision on handle claims and bind policies going forreform takes place. the current health care bill. ward. “I think agents need to know and be keen“Many more physicians are becoming “We have observed over a period of 18 ly aware of the business needs of clients in a employed in health care systems and large months a number of catastrophic losses post-health care reform environment,” Castro groups where decisions are being made by at a level we haven’t seen before,” said Ian said. “The traditional product solutions in administrators instead of the physicians Thompson, senior vice president of health the market today will not meet the needs themselves,” he said. “More cases will settle care for Hiscox in Bermuda. “Is that a trend? of organizations on a go-forward basis. They than in the past because of concerns about Will we see these losses on a more regular need to understand the new risks and what basis. And if so what do we need to do about press and public relations. That is something solutions are needed.” this as an industry?” The medical malpractice market has enjoyed low severity and low claims frequency for several years, partly because of better risk management and patient care. Consequently, Thompson said, carriers need to be asking why this is happening and if it They all have diﬀerent risks is something to look out for. but they all look to you, “We are concerned that hospitals and their broker, for cost health care have done a great job to mitigate eﬀective coverage. losses, but the bar continues to rise,” he said. “It’s more worrying when you have an indusA&M has A-rated admitted and non-admitted multi-markets to try that does a terrific job at sorting itself cover your client's needs. out and the losses are still happening. If we take our foot off the pedal, things could get We make it simple. significantly worse.” We make it easy. Health care reform could contribute to this We make it fast. worsening, Thompson said, because it could have a big impact on the way health care institutions buy and manage their risk. Get covered by the A&M Umbrella Man — One Application = Multiple Quotes Insurance agents also need to make sure their clients are buying enough coverage if losses do start to creep up, or they will be (800) 234-6977 opening themselves up to E&O exposures. or Fax: (323) 255-0957 “There are some bargains to be had for 800 W. Colorado Blvd. buyers, and I would encourage them to look Los Angeles, CA 90041 at new layers and limits,” Thompson said. California License #0323106 www.andersonmurison.com MMIC Group CEO Bill McDonagh, who is located in Minneapolis, said the company has

Your clients come in all kinds of shapes, sizes and exposures.

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April 16, 2012 INSURANCE JOURNAL-NATIONAL REGION | N17

SPOTLIGHT

Business Interruption/Business Income How to Help Small Businesses Avoid Underinsurance and Anticipate the Unexpected By Marc Schmittlein

n recent years, the United States has been impacted by devastating weather events, many unprecedented and unexpected. According to the Environment America Research and Policy Center, more than 15 million Americans live in counties that have averaged one or more weather-related disasters per year since the beginning of 2006. While small business clients who have faced weather-related issues may be aware of the risks, there are thousands who ignore the impact a disaster can have on their business. But it’s not only significant weather events that can constitute a disaster. Underinsurance can be an even greater issue for many business owners. In fact, 75 percent of businesses in the United States are underinsured by 40 percent or more, according to Marshall & Swift/Boeckh. Insurance professionals know all too well that if a business is underinsured and a loss occurs, it may be impossible to keep the

doors open. SCORE, a nonprofit association dedicated to helping small businesses, even suggests that a full 40 percent of businesses never reopen after a disaster. Insurance

agents have an opportunity to solidify their client relationships by taking time now to reach out and to discuss how a comprehensive and appropriately valued insurance program combined with proactive business continuity planning are keys to sustaining a client’s long-term success. Insurance to Value Most business owners know enough to request a business owner’s policy (BOP), which covers property and general liability. This is certainly an important foundation for any insurance plan, but sophisticated agents should use this only as a starting place. Without a thorough discussion of the business’s risks and liabilities, a BOP can only go so far. The policy and any endorsements should carry adequate limits for all essential coverages, which include: property, general liability, business income, business continuity and workers’ compensation. Busy owners value items such as desks, computers or other office equipment at a certain price in their mind. But without taking the time to actually add up the new replacement value of those items, it’s all too

N18 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

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(www.travelers.com/business-insurance/ easy to underestimate. risk-control/small-business/index.aspx), but Entrepreneurs who own their own builda good guideline to use when working with ings are at a greater risk of underinsurcustomers should include these five steps: ance. Construction costs have increased 1. Conduct a threat significantly in the United assessment; States in recent years. As Almost half of 2 .Identify and review an example, between the small businesses important business funcsecond quarter of 2010 and are operating tions; the third quarter of 2011, without a business 3. Perform a business copper piping rose almost impact analysis; 27 percent, steel rebar continuity plan. 4. Develop a prevention increased almost 16 percent and mitigation strategy; and finally, and lumber increased nearly 12 percent 5. Implement and maintain the plan. (4Q2011 RCT Product Bulletin). These plans can provide the necessary Unless your client is in the construcroadmap to handle a crisis, but they are only tion industry, underestimating rebuilding impactful when communicated effectively costs is almost a guarantee. Adding to that, and frequently with employees. Once a busimany owners mistakenly believe the cost to rebuild and the current market value of the property are one and the same. With real estate prices still significantly depressed across most of the country, owners are putting themselves in a precarious position if a disaster occurs and they find themselves only insured for a fraction of the cost to rebuild.

ness continuity plan is developed, owners should walk their employees through different scenarios that can significantly impact a business and explain how to manage the circumstances. Insurance professionals who spend the added time diving deeper into their customers’ needs will likely find themselves rewarded with repeat business and longterm client relationships. Shedding light onto the serious risks associated with underinsurance and improper risk management can go far in helping small business customers continue to thrive — even if disaster strikes. Schmittlein is the president and CEO of Travelers Select Accounts.

Coverage Denied? It’s not a problem, it’s our specialty.

Proactive Risk Management No doubt, the opportunity to provide valued guidance on the right levels of insurance is an important role for today’s savvy agent. But insurance coverage alone won’t keep a business operational after a disaster. A survey of small business owners conducted by Travelers found that almost half of small businesses (44 percent) are operating without a business continuity plan. Taking the time to develop (or revise) a business continuity plan can feel daunting for already over-burdened business owners. Independent insurance agents who spend time breaking down the process into easyto -execute steps can go far in establishing long-term relationships with their customers. The plan can include everything from documenting important phone numbers to identifying locations of back-up data. Travelers offers a more in-depth guide www.insurancejournal.com

If your clients are unable to obtain malpractice insurance, then it’s time to call the experts. We specialize in providing malpractice insurance for medical professionals, including physicians, surgeons, podiatrists, and dentists who, for whatever reason, have difﬁculty obtaining coverage. Features of our program include: UÊ ,>Ìi`Ê Ê ÝVi i Ì®ÊLÞÊ ° °Ê iÃÌÊ «> Þ UÊ f£Ê ÉfÎÊ ÊV > Ã >`iÊV ÛiÀ>}iÊ Õ«ÊÌ ÊfÓÊ ÉfÈÊ UÊ À >`Ê« VÞÊv À Ê UÊ ViÊ vÊ>Ê ÀiÊÀiÃÌÀ VÌ ÛiÊ« VÞÊv ÀÊ>Ê reduced price UÊ -Õ«iÀ ÀÊV > ÃÊ > >}i i Ì

PROFESSIONAL UNDERWRITERS LIABILITY INSURANCE COMPANY A TDC Company

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April 16, 2012 INSURANCE JOURNAL-NATIONAL REGION | N19

NATIONAL COVERAGE

News & Markets Why Agents and Customers Choose Higher Prices

nsurance customers are price-sensitive shoppers, and they have become more so given the financial pressures of the struggling economy. Many observers fear that standard coverage is becoming commoditized to the point where customers routinely pick the cheapest policy for a given coverage without regard to brand, service reputation or product features. As one agent said, “It used to be easier to sell better coverage at a higher cost, but due to the economy, most people are more concerned with cost.” However, new research shows that this is the case far less often than many suspect. Many independent agents and their customers are willing to select higher-priced insurers for certain factors, according to preliminary findings in a study by Channel Harvest Research. This finding suggests that carriers can compete effectively on factors other than price.

Several things influence this, according to the survey. While cost is a factor, customers still need the proper coverages and product features — even if that means going with a higher-priced carrier. Having the right coverages and Pricing add-on features were the most comThe survey of independent agents monly cited by 60 percent of agents. on their attitudes regarding carriers Although this is more of an issue in revealed that about one-quarter of inde- larger commercial policies, about half pendent agents’ of personal agents customers almost Customers still need noted that coverages always go with the add-on features proper coverages and and cheapest policy — drove the customer features even if that to a higher-priced at least 90 percent means a higher price. carrier. As one agent of the time. “Companies are said, “We highlight so impressed with themselves and their the coverage differences so if a carrier coverage that they have lost touch with has a good coverage enhancement, it the reality that the consumer is looking can win the business.” for the lowest price, period,” one agent Customer service and brand reputasaid. “The name, the coverage selection, tion also are significant factors that the service almost make no difference.” lead agents to select higher-priced However, one-third of the agents companies. Almost one-third of agents surveyed said they and their customsaid they recommended — or their cusers select more expensive carriers 25 tomer chose — more expensive carriers percent of the time or more. Some because of prior poor service or claims reported that more than half of clients experiences with the low-cost carrier. go with higher-priced policies for variThis held true for personal and comous reasons. mercial lines-focused agents. In addiN20 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

tion to wanting to make sure customers have excellent treatment, many agents believe the carrier’s claims experience reflect on agents themselves. About the Survey The study, “2012 Survey of AgentCarrier Relationships,” is the fifth in a series examining independent agents’ views on marketplace issues. The survey was sponsored by Insurance Journal and conducted by Channel Harvest — a partnership between Aartrijk and Campbell Communications. The survey instrument covered more than 90 questions. More than 1,500 agents responded and passed validation criteria. Quantitative survey results are presented in several formats, including importance rankings of specific carrier attributes, industry issues and agency comments about what breaks superior carriers out from the pack. Information in this article and the included graph is based on preliminary data, so final survey findings could differ slightly. For information on obtaining the report, contact John Campbell at john@channelharvest.com or 202-363-2069. www.insurancejournal.com

NATIONAL COVERAGE

News & Markets

Report: Reinsurers See Lower Loss Activity, Market Support

einsurers have seen more positive results in the first quarter of 2012 than in the previous two years. “Lower levels of loss activity in both the U.S. and International markets, and a gradual improvement in rating levels seen in the primary market, have been overshadowed by reinsurers’ disappointing 2011 result,” found a Willis Re report, “Measured Response.” “Despite the market showing signs of positive development, most reinsurers are hesitant to increase their portfolios, preferring to focus on managing underwriting volatility and conserving capital whilst waiting for signs of further improvement.” Also, “some primary buyers are reluctant to manage increased reinsurance costs through reduction in purchases and are restructuring their programs to maintain retention levels. This trend is not being seen in larger U.S. primary companies that are

seeing a continuing increase in property cat retentions.” Reinsurers “are taking a highly segmented and increasingly disciplined approach to terms and conditions, and are not seeking to apply blanket rate increases. This is leading to wider variations in rate movement by territory and class,” said Peter Hearn, Willis Re chairman. Other findings in the report include: •Thailand’s floods have caused reinsurers to seek greater transparency and control, particularly over contingent business interruption. The loss’ technical and psychological impact on the global insurance industry will outweigh the financial loss for years. •Reinsurers are applying tighter limits on natural perils, including lower event limits

on pro rata treaties. •In an improving rating environment, new capital is drawn to the global insurance industry. But starting companies postmajor events is falling out of favor. Investors now are concentrating on accessing the purest forms of (re)insurance risks through specialist funds and other structures. •Mergers and acquisitions remain active, despite the uncertain economic backdrop and challenge of low valuations. “The global reinsurance industry is largely reacting in a measured and logical fashion,” Hearn said. “Falling investment income, allied with increased loss trends on long-tail business, remain key to a broad and more defined future market hardening in the absence of a major catastrophic loss.”

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April 16, 2012 INSURANCE JOURNAL-NATIONAL REGION | N21

2012 EDUCATION AND TRAINING

DIRECTORY I

nsurance Journal is pleased to publish the 2012 Education and Training Directory. This exclusive resource directory has been designed to help independent agents and brokers find educational and training opportunities to enhance their professional growth. Education and training providers, including insurance schools, associations, various vendors and instructors submitted information on their course offerings, online educational capabilities and correspondence education directly to Insurance Journal. Providers were allowed to list up to three programs/courses. While this directory is only a snapshot of the vast array of education and training courses available to the industry, we hope you find it helpful when searching for the right provider for your agency. We look forward to expanding and enhancing this directory in the future and welcome your feedback on how we might improve it. Please send any comments or suggestions about the directory to editorial@insurancejournal.com. To submit a listing, e-mail Kristine Honey at: khoney@insurancejournal.com.

Organization: AdjusterPro Contact: John Oâ&#x20AC;&#x2122;Brien Email: info@adjusterpro.com Address: P.O. Box 1087, Fort Scott, KS 66701 Phone: 214-329-9030 ; Fax: 214-580-5519 Website: www.adjusterpro.com Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: no Course: Texas All-Lines Adjuster PreLicensing Start Date: Any Time Location: Classroom or Online Category: Property Casualty Insurance Designation: No Designation Course: Florida Certified Adjuster (CA) Designation Start Date: Any Time Location: Classroom or Online Category: Property Casualty Insurance Designation: No Designation

Course: Indiana Independent Adjuster PreLicensing Start Date: Any Time Location: Classroom or Online Category: Property Casualty Insurance Designation: No Designation Organization: Affordable Continuing Education Contact: Jessie Booth Email: Jessie@SuccessCE.com Address: 2 Corporate Plaza Dr., Ste. 100 Newport Beach, CA 92660 Phone: 949-706-9197 ; Fax: 949-706-9439 Website: www.AffordableCE.com Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: yes Course: Contemporary Insurance Topics Start Date: Any Time Location: All States Category: Property Casualty & Life/Health Ins Designation: P&C and L&H Insurance Agents

N22 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

Course: Personal Lines Total Coverage Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: P&C Insurance Agents Course: Flood Insurance Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: P&C Insurance Agents Organization: Affordable Educators (California CE and Prelicense Training) Address: 41890 Enterprise Cir. S, Ste. 100 Temecula, CA 92590 Phone: 800-498-5100 Website: www.ceclass.com Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes

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Course: Ins. Marketing Issues (Includes Ethics) Start Date: Any Time Location: CA Category: Ethics Designation: No Designation

Course: Life & Health Pre-Licensing Start Date: Any Time Location: Many States Category: Life, Health, Benefits Designation: Licensing Exam Prep

Course: Garage Risks Start Date: Sept 13-14, 2012 Location: Newark, NJ Category: Property Casualty Ins, Surplus Lines Designation: CIW, CMGA

Course: Preferred Practices Start Date: Any Time Location: CA Category: Property Casualty Insurance Designation: No Designation

Course: Property & Casualty Pre-Licensing Start Date: Any Time Location: Many States Category: Property Casualty Insurance Designation: Licensing Exam Prep

Course: Under Forty Organization Annual Meeting Start Date: Sept 20-22, 2012 Location: Park City, UT Category: Property Casualty Ins, Surplus Lines Designation: CIW, CMGA

Course: California Ethics Requirement Start Date: Any Time Location: CA Category: Ethics Designation: No Designation

Course: Property Pre-Licensing Start Date: Any Time Location: Many States Category: Property Casualty Insurance Designation: Licensing Exam Prep

Organization: Agency Management Resource Group Contact: Jackie Abeyta, Director of Mktg. Email: jackie@agencymanagement.com Phone: 916-757-6150 Website: www.agencymanagement.com

Organization: American Association of Insurance Services (AAIS) Contact: Joseph S. Harrington, CPCU Email: joeh@AAISonline.com Address: 1745 S. Naperville Rd. Wheaton, IL 60189 Phone: 630-681-8347 ; Fax: 630-681-8356 Website: www.AAISonline.com

Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes Course: Another Look at Ethics Start Date: Multiple Location: Multiple Category: Ethics Course: Additional Insureds and Certificates of Insurance Start Date: Multiple Location: Multiple Category: Property Casualty Insurance

Course: Trucking Risks - Advanced Start Date: Oct 29-30, 2012 Location: Nashville, TN Category: Property Casualty Ins, Surplus Lines Designation: CIW, CMGA

Educational Offerings: Educational materials for individual insurance line programs Online Courses: no Correspondence Courses: no Course: A variety of materials to support the use of AAIS products Start Date: Any Time Location: All States Category: Property Casualty Insurance

Organization: American Association of Managing General Agents

Educational Offerings: Professional Ins. Designation Programs, Individual Courses, Undergrad Ins. Courses/Programs (Accredited) Online Courses: yes Correspondence Courses: no

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Course: University West Start Date: Aug 16-17, 2013 Location: Scottsdale, AZ Category: Property Casualty Ins, Surplus Lines Designation: CIW, CMGA Organization: ClaimSchool Contact: Barry Zalma Email: zalma@zalma.com Address: 4441 Sepulveda Blvd. Culver City, CA 90230 Phone: 310-390-4455 ; Fax: 310-391-5614 Web: www.claimschool.com & adbanker.com Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes Location: At Your Location

Course: Errors & Omissions Loss Control Start Date: Multiple Location: Multiple Category: Property Casualty Insurance Organization: Americaâ&#x20AC;&#x2122;s Professor Contact: Dr. Jack Morton Email: info@americasprofessor.com Address: 1819 Holborn St., Ste. E, Missoula, MT 59802 Phone: 800-870-3130 ; Fax: 406-549-8560 Website: www.AmericasProfessor.com

Course: Insurance Automation and Technology Conference Start Date: Mar 2-5, 2013 Location: Scottsdale, AZ Category: Property Casualty Ins, Surplus Lines Designation: CIW, CMGA

Contact: Jeffrey D. Henry Email: Jeff@aamga.org Address: 610 Freedom Business Ctr, Ste. 110, King of Prussia, PA 19406 Phone: 610- 992-0005 ; Fax: 610- 992-0021 Website: www.aamga.org Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: no

Course: California Fair Claims Practices Regulations Start Date: Any Time Category: Agency Management Designation: No Designation Course: Insurance Fraud and Weapons to Fight Fraudâ&#x201E;˘ Start Date: Any Time Category: Agency Management Designation: No Designation Course: Insurance Claims For the Property Owner or Mortgage Holder Start Date: Any Time Category: Other Designation: No Designation

April 16, 2012 INSURANCE JOURNAL-NATIONAL REGION | N23

Education and Training Directory

Organization: Crawford & Company Contact: Joel Sybert Email: www.kmcondemand.com, www.kmcondemand.com/ptc Address: 1001 Summit Blvd. Atlanta, GA 30319 Phone: 404-300-1251 Website: www.crawfordandcompany.com Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: no Course: Property Technical Cert (PTC I) Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: PTC Course: Workers’ Compensation Program I-IV Start Date: Any Time Location: All States Category: Workers’ Compensation Designation: Other Course: Basic Workers’ Compensation Virtual Classroom Start Date: See Website Location: Virtual Category: Workers’ Compensation Designation: Other Organization: Discovery Detective Academy Email: ops@discoverydetectivegroup.com Phone: 480-951-6545 Website: discoverydetectiveacademy.org Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: no Course: Professional Investigator Start Date: Any Time Location: Many States Category: Risk Management & Safety Designation: ARM-Associate in Risk Mgmt Course: Fraud Investigations Start Date: Any Time Location: Many States Category: Risk Management & Safety Designation: ARM-Associate in Risk Mgmt Course: Advanced Interviewing Techniques Start Date: Any Time Location: Many States

Organization: FastrackCE Contact: Brad Nevins Email: bnevins@fastrackce.com Address: 13750 Pipeline Ave. Chino, CA 91710 Phone: 800-544-3605 ; Fax: 909-465-4195 Website: www.fastrackce.com

Organization: First Party Claims Conference Contact: David Barrack Email: info@firstpartyclaims.com Address: 21165 Whitfield, Pl., Ste. 105 Potomac Falls, VA 20165 Phone: 703-433-2520 ; Fax: 703-433-0369 Website: www.firstpartyclaims.com

Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes

Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: no Correspondence Courses: no

Course: Ethics in Insurance Start Date: Any Time Location: Many States Category: Ethics, P&C, Life & Health Designation: No Designation Course: Flood Insurance Made Simple Start Date: Any Time Location: Many States Category: Flood Insurance, P&C Designation: No Designation Course: Understanding Commercial Lines Property & Casualty Start Date: Any Time Location: Many States Category: Property & Casualty Designation: No Designation Organization: First Choice Continuing Education Contact: Justin Genuino Email: jgenuino@successce.com Address: 2 Corporate Plaza Dr., Ste. 100 Newport Beach, CA 92660 Phone: 949-706-9463 ; Fax: 949-706-9439 Website: www.FirstChoiceCE.com Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: yes Course: Ethics in Property & Casualty Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: P&C Insurance Agents Course: Property & Casualty Personal Basics Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: P&C Insurance Agents

Course: First Party Claims Conference Start Date: Oct 15-17, 2012 Location: Crowne Plaza Hotel, Warwick, RI Category: Property Casualty Insurance, Ethics Designation: 12 CE Credits for Adjusters (multi-line). Open to accountants, agents, attorneys, brokers, engineers & others. Organization: Focal Insurance Contact: Brenda Austin Email: focalinsurance@aol.com Address: P.O. Box 175 Pomona, NY 10970 Phone: 845-354-2036 ; Fax: 845-354-4779 Website: www.focalinsurance.com Educational Offerings: CE, Individual Courses & Pre-Licensing Courses Online Courses: no Correspondence Courses: yes - self-study Course: Property & Casualty Pre-Licensing Start Date: Apr 9–Jul 27, ‘12 (Rockland, NY) Jul 9 – Jul 27, 2012 (Westchester, NY) May 27 – Sep 13, 2012 (Brooklyn, NY) Category: Insurance - P&C; Life Accident & Health & Annuities; Risk Management Designation: Broker’s License Organization: Independent Insurance Agents of Texas (IIAT) Contact: Stephanie Freitag, Education Mgr. Email: sfreitag@iiat.org ; educinfo@iiat.org Address: 1115 San Jacinto, Ste. 100 Austin, TX 78701 Phone: 800-880-7428 ; Fax: 512-469-9512 Website: www.iiat.org Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: no

Course: Business Interruption Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: P&C Insurance Agents

N24 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

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Course: Certified Account Manager Program Start Date: see schedule online - iiat.org Location: Many Cities Category: Customer Service, Technical Knowledge Designation: CAM – Certified Account Mgr Course: Construction Risk & Insurance Specialist Start Date: see schedule online - iiat.org Location: Many Cities Category: Commercial Property Casualty, Property Casualty Ins, Risk Mgmt & Safety Designation: CRIS - Construction Risk & Insurance Specialist Course: Producer Development Program Start Date: see schedule online - iiat.org Location: Austin, TX Category: Agency Mgmt, Commercial & Personal P&C, Customer Service, Ethics, Risk Mgmt & Safety Organization: Infinity Schools Contact: Greg Mckewen Email: info@infinityschools.com Address: 1310 Esplanade, Ste. 317 S Redondo Beach, CA 90277 Phone: 800-600-2550 ; Fax: 424-247-9050 Website: www.infinityschools.com Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes Course: Unlimited CE Packages ONLY $36.95 Start Date: Any Time Location: Nationwide Category: Property Casualty Insurance Designation: Continuing Education & PreLicense Training Course: Ethics the Guide to Success Start Date: Any Time Location: Nationwide Category: P&C Insurance – 5 Credit Hours Designation: Continuing Education & PreLicense Training Course: Understanding Umbrella Coverage Start Date: Any Time Location: Nationwide Category: Commercial P&C -15 Credit Hours Designation: Continuing Education & PreLicense Training

Organization: Insurance Agents & Brokers Contact: Jessica McWilliams Email: iab@iabgroup.com Address: 5050 Ritter Rd., Mechanicsburg, PA 17055 Phone: 717-795-9100 ; Fax: 717-795-8347 Website: www.iabgroup.com/education Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: no Course: Insurance Success Seminars Start Date: May 1-3, Aug 7-9, Oct 30-Nov1 Location: PA Category: Sales/Marketing Designation: CPIA – Certified Professional Insurance Agent Course: Pa. Licensing Exam Preparation Start Date: Multiple Location: Pa. - Multiple Locations Category: Property Casualty Insurance Designation: No Designation

Organization: Insurance Educational Association Contact: Patty Gibson Carlson Email: info@ieatraining.com Address: 725 W. Town & Country Rd., Ste. 430, Orange, CA 92868 Phone: 714-689-0161; Fax: 714-689-0112 Website: www.ieatraining.com Educational Offerings: Professional Ins. Designation Programs, Individual P&C Courses & Workshops Online Courses: yes -Classroom & Onsite too Correspondence Courses: no Course: Online Self Study Start Date: Any Time Location: All States Category: Disability Mgmt, Workers’ Comp Designation: WCCA, WCCP, CPDM

Course: Compliance Pitfalls and Ethical Responsibilities Start Date: Any Time Location: Anywhere Category: Ethics Designation: No Designation

Course: Online Instructor Led (Tele-Learning) Start Date: Any Time Location: All States Category: Commercial & Personal P&C, Risk Management & Safety, Claims Designation: ARM, CPCU, AIC, AU, WCCA, WCCP, CPDM

Organization: Insurance Community Center Contact: Amanda Colby Em: amanda@insurancecommunitycenter.com Address: 78-365 Highway 111, Ste. 388 La Quinta, CA 92253 Phone: 805-776-3755 ; Fax: 760-645-6285 Website: www.insurancecommunitycenter.com

Course: Classroom Training including On-Site Custom Classes Start Date: Spring, Summer, Fall Location: CA, AZ Category: Commercial & Personal P&C, Ethics, Life/Health/Benefits, Risk Management & Safety, Sales/Marketing Designation: ARM, CPCU, AIC, WCCA, WCCP, CPDM

Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: no Course: Education Tracks Start Date: Ongoing Location: Many States, Live, Online Category: Commercial & Personal Lines, Employee Benefits, Agriculture & Contractors Insurance Designation: Continuing Education Course: Timely Topics Informational Webinars Start Date: Ongoing Location: Live Online Category: Informational Webinars sharing key resources, information and tools for insurance sales and practice management.

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Course: Principles of Rainmaking - Producer Development Series Start Date: May 2, 2012 Location: Live Online Category: Sales/Marketing

Organization: Insurance Journal Academy

of Insurance Contact: Chris Boggs Email: cboggs@IJAcademy.com Phone: 800-897-9965 ; Fax: 619-584-1200 Website: www.IJAcademy.com Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: no

April 16, 2012 INSURANCE JOURNAL-NATIONAL REGION | N25

Education and Training Directory Course: Practical Workers’ Compensation: What You Need To Know Start Date: On Demand Location: Online Category: Property Casualty Insurance Course: The Proper Care and Feeding of Certificates of Insurance Start Date: On Demand Location: Online Category: Property Casualty Insurance Course: The Real Effects of Granting Additional Insured Status Start Date: On Demand Location: Online Category: Property Casualty Insurance, Sales/ Marketing Course: Practical and Applicable Errors and Omissions Tips Start Date: On Demand Location: Online Category: Agency Management Course: Using Coverage Gaps to Win New Customers Start Date: On Demand Location: Online Category: Property Casualty Insurance Organization: Insurance Training Institute Contact: Robert Secovnie Email: Bob@ITI-NY.com Address: 20 Spruce St., Valatie, NY 12184 Phone: 518-758-6609 ; Fax: 518-758-6693 Web: www.ITINY.com Educational Offerings: Individual Courses Online Courses: no Correspondence Courses: yes Organization: International Association of Insurance Professionals Contact: Mark Adams Email: evp@iaip-ins.org Address: 9343 E. 95th Ct S, Tulsa, OK 74133 Phone: 918-294-3700 ; Fax: 918-294-3711 Web: internationalinsuranceprofessionals.org Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: no Correspondence Courses: no

Course: Professional Ethics Start Date: Any Time Location: All States Category: Ethics Designation: CIIP- Certified Insurance Industry Professional Course: Long Term Care Start Date: Any Time Location: All States Category: Life, Health, Benefits Designation: CIIP- Certified Insurance Industry Professional Course: Underwriting Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: CIIP- Certified Insurance Industry Professional Organization: International Risk Management Institute, Inc. (IRMI) Contact: Millie Workman Email: millie.w@irmi.com Address: 12222 Merit Dr., Ste. 1450 Dallas, TX 75251 Phone: 800-827-4242 ; Fax: 972-371-5120 Web: www.IRMI.com/CE Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: no Course: Construction Risk and Insurance Specialist (CRIS®) Start Date: Any Time Location: All States Category: Risk Management & Safety, Sales/ Marketing Designation: CRIS® - Construction Risk & Insurance Specialist Course: Management Liability Insurance Specialist (MLIS®) Start Date: Any Time Location: All States Category: Sales/Marketing, Prof. Liability, D&O, EPL and Fiduciary Liability exposures Designation: MLIS® - Management Liability Insurance Specialist Course: General Insurance CE Start Date: Any Time Location: All States Category: Commercial & Personal Lines, Life & Health

N26 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

Organization: International Society Of Workers Compensation Specialists Contact: Bill Reynolds Email: bill@isowcs.org Address: 6688 Joliet Rd., Ste. 253, Indian Head Park, IL 60525 Phone: 312-286-1956 ; Fax: 708-401-0755 Web: www.isowcs.org Educational Offerings: Professional Ins. Designation Programs Online Courses: yes Correspondence Courses: no Course: Certified Injury Prevention Specialists Start Date: Any Time Location: All States Category: Workers’ Compensation Course: Certified Claim Mgmt. Specialists Start Date: Any Time Location: All States Category: Workers’ Compensation Course: Certified Premium Audit Specialist Start Date: Any Time Location: All States Category: Workers’ Compensation Organization: Kaplan Financial Education Contact: Rebecca Ray Email: Rebecca.Ray@kaplan.com Address: 1900 Ballpark Way Arlington, TX 76006 Phone: 800-824-8742 Web: www.kpsTexas.com Educational Offerings: Insurance & Securities Courses/Programs (Accredited) Online Courses: yes Correspondence Courses: yes Course: Professional License Courses Start Date: Any Time Location: TX Category: Other Designation: Various Course: Real Estate Courses Start Date: Any Time Location: TX Category: Other Designation: Various Course: Inspection Courses Start Date: Any Time Location: TX Category: Other Designation: Various

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Organization: Missouri State University Contact: Dr. Stan Adamson Email: stanleyadamson@missouristate.edu Address: 901 S. National Springfield, MO 65897 Phone: 417-836-6686 ; Fax: 417-836-6224 Web: www.missouristate.edu/academics/details. aspx?id=81570 Educational Offerings: Undergrad Ins. Courses / Programs (Accredited) Online Courses: yes Correspondence Courses: no Course: INS 313 - Commercial Insurance Start Date: Aug 2012 Location: Springfield, MO Category: Commercial Property Casualty Designation: CPCU – Chartered Property Casualty Underwriter Course: INS 211 - Insurance Start Date: Spring or Fall each year Location: Springfield, MO and Online Category: Personal Property Casualty Designation: Intro to Insurance Course: INS 415 - Risk Management Start Date: Jan 2012 Location: Springfield, MO Category: Risk Management Safety Designation: ARM – Associate in Risk Management Organization: National Flood Insurance Program - NFIP/FEMA Contact: L. Savino Email: NFIPS2@aol.com Address: P.O. Box 210, Adelphia, NJ 07710 Phone: 732-625-TEACH Fax: 732-625-0828 Website: www.NFIPS.com Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: no Course: FEMA Flood Course Start Date: Call or Email to Schedule Location: All States Category: Property Casualty Insurance Designation: Continuing Education Credits

Organization: New Level Partners Contact: Nancy Langton Email: nlangton@newlevelpartners.com Address: 100 Overlook Center, 2nd Fl Princeton, NJ 08540 Web: www.newlevelpartners.com

Organization: Professional Liability Underwriting Society Contact: Deb Ropelewski Email: dropelewski@plusweb.org Phone: 952-746-2580 ; Fax: 952-746-2599 Website: www.plusweb.org

Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: no

Educational Offerings: Professional Liability Ins. Designation Programs Online Courses: no Correspondence Courses: no

Course: Commercial Lines Insurance Basics (25 course series) Start Date: Any Time Location: All States Category: Commercial Property Casualty Course: Personal Lines Insurance Basics (12 course series) Start Date: Any Time Location: All States Category: Personal Property Casualty Designation: New hire training Course: Business Skills for Account Managers (12 course series) Start Date: Any Time Location: All States Category: Customer Service Designation: New hire training Organization: North American Training Group Contact: Fred Wharton Email: fwharton@fraudeducation.com Address: 1293 Beacon Circle Wellington, FL 33414 Phone: 888-884-6284 ; Fax: 561-282-6969 Website: www.fraudeducation.com Educational Offerings: Professional Liability Ins. Designation Programs, Individual Courses Online Courses: Yes Correspondence Courses: no Course: Workers’ Compensation Fraud Start Date: Any Time Location: All States Category: Insurance Fraud Course: Auto Insurance Fraud Start Date: Any Time Location: All States Category: Insurance Fraud Course: State Fraud Compliance Training Start Date: Any Time Location: All States Category: Insurance Fraud

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Course: Registered Professional Liability Underwriter Start Date: Any Time Location: All States (Self-study) Designation: RPLU; RPLU+ Course: PLUS International Conference Start Date: Nov 7-9, 2012 Location: Chicago, IL Category: Other Course: D&O Symposium, MLP Symposium Start Date: Check website for dates & locations Category: Other Organization: Quest CE Contact: Jessica Kruse Email: jkruse@questce.com Address: 10850 W. Park Pl., Ste. 1000 Miwaukee, WI 53224 Phone: 877-593-3366 ; Fax: 414-375-3449 Website: www.questce.com Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: yes Course: Life Insurance Today Start Date: Any Time Location: All States Category: Life, Health, Benefits Designation: Chartered Financial Consultant, Chartered Life Underwriter, CFP & Insurance Course: A Professional Guide to Ethical Decision Making Start Date: Any Time Location: All States Category: Ethics, Life, Health, Benefits Designation: Chartered Financial Consultant, Chartered Life Underwriter, CFP & Insurance Course: Introduction to Suitability & the Senior Protection Model Regulation Start Date: Any Time Location:All States Category: Life, Health, Benefits Designation: Chartered Financial Consultant, Chartered Life Underwriter, CFP & Insurance

April 16, 2012 INSURANCE JOURNAL-NATIONAL REGION | N27

Education and Training Directory Organization: Sandi Kruise Insurance Training Contact: Robert Kruise Email: kruise@kruise.com Address: P.O. Box 786, Bonita, CA 91908 Phone: 800-517-7500 ; Fax: 619-421-8171 Website: www.kruise.com Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes Course: Unlimited CE Subscription, $39.95 Start Date: Any Time Location: All States Category: Commercial & Personal P&C, Property Casualty Insurance, Ethics, Life/ Health/Benefits, Risk Management & Safety, Surplus Lines Designation: No Designation Course: Long Term Care Partnership Start Date: Any Time Location: All States Category: LTCP, Life/Health/Benefits Designation: No Designation Course: Ethics and the Insurance Agent (meets Ethics requirement) Start Date: Any Time Location: Many States Category: Ethics, Commercial & Personal P&C, Life/Health/Benefits Designation: No Designation Organization: SNL Center for Financial Education Contact: Maureen Hollar Email: center@snl.com Address: P.O. Box 2016 Charlottesville, VA 22902 Phone: 434-951-7786 ; Fax: 434-984-8038 Website: www.snlcenter.com Educational Offerings: Individual Courses Online Courses: no Correspondence Courses: no Course: Life and P&C Insurance Statutory Accounting & Reporting Start Date: Various throughout the year Location: New York, NY Category: Agency Management, Finance Course: Financial Analysis of Life and P&C Insurers Start Date: Various throughout the year Location: New York, NY Category: Agency Management, Finance

Course: Fundamentals of Insurance Company Credit Analysis Start Date: Various throughout the year Location: New York, NY Category: Agency Management, Finance Organization: Society of Insurance Research Contact: Ed Budd Email: sir.mail@comcast.net Address: 631 Eastpointe Dr. Shelbyville, IN 46176 Phone: 317-398-3684 Website: www.sirnet.org Educational Offerings: Individual Courses Online Courses: no Correspondence Courses: no Course: 2012 Spring Seminar Start Date: Apr 23, 2012 Location: University Club - Chicago, IL Category: P&C and Health Designation: Research Course: 42nd Annual Conference Start Date: Oct 14, 2012 Location: Pittsburgh, PA Category: P&C and Health Designation: Emerging Issues & Research

Organization: Success Continuing Education Contact: James Burch Email: JBurch@SuccessCE.com Address: 2 Corporate Plaza Dr., Ste. 100 Newport Beach, CA 92660 Phone: 949-706-9453 ; Fax: 949-706-9439 Website: www.SuccessCE.com Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: yes Course: Personal Lines Total Coverage Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: P&C Insurance Agents Course: Homeowners & Automobile Ins. Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: P&C Insurance Agents Course: Surplus Lines Compliance Course Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: P&C Insurance Agents

Organization: Sterling Education Services, Inc Contact: Elizabeth Kramer Email: ses21@sterlingeducation.com Address: P.O. Box 3127 Eau Claire, WI 54702 Phone: 715-855-0495 ; Fax: 715-835-5132 Website: www.sterlingeducation.com

Organization: The Agency Trainer Contact: Vickie Morgan Email: vmorgan@agencytrainer.com Address: P.O. Box 11551, Pueblo, CO 81001 Phone: 719-924-9454 ; Fax: 888-840-1250 Website: www.agencytrainer.com

Educational Offerings: Individual Courses Online Courses: no Correspondence Courses: no

Course: Workers’ Comp Law & Practice Start Date: Multiple Dates Location: Many States Category: Risk Management & Safety Designation: Continuing Education

Course: Applied Systems Training Start Date: Any Time Location: All States Category: Agency Management Designation: Other

Course: Advanced Workers’ Compensation Start Date: Multiple Dates Location: Many States Category: Risk Management & Safety Designation: Continuing Education

Course: Training Assessments, One-on-One Training, Refresher Training and more! Start Date: Any Time Location: All States Category: Agency Management Designation: Other

Course: Fundamentals of Workers’ Comp Start Date: Multiple Dates Location: Many States Category: Risk Management & Safety Designation: Continuing Education

N28 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

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Organization: The National Alliance for Insurance Education & Research Email: alliance@scic.com Address: 3630 North Hills Dr. Austin, TX 78731 Phone: 800-633-2165 ; Fax: 512-349-6194 Website: www.TheNationalAlliance.com Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: no Course: School for Producer Development Start Date: Oct 9-21, 2011 Location: Dallas/Ft. Worth, TX Category: Commercial Property & Casualty, Sales/Marketing Designation: No Designation Course: Dynamics Sales Training Start Date: Any Time Location: Many States Category: Insurance Sales, Sales Mgmt Designation: No Designation Course: Certified Insurance Service Representatives (CISR) Online & Classroom Start Date: Any Time Location: Internet/All States (1200+ per year) Category: Agency Mgmt, Commercial P&C, Customer Service, Personal Residential & Auto Designation: CISR – Certified Insurance Service Representative Course: Certified Risk Managers (CRM) Online & Classroom Start Date: Any Time Location: Internet/Many States (80+ per year) Category: Risk Management & Safety Designation: CRM – Certified Risk Manager Course: Certified Insurance Counselors (CIC) Start Date: Any Time Location: All States (300+ per year) Category: Agency Mgmt, Commercial P&C, Personal Lines, Life & Health Designation: CIC – Certified Insurance Counselor Course: Certified School Risk Managers (CSRM) Online & Classroom Start Date: Any Time Location: Internet/Many States (60+ per year) Category: Risk Management & Safety Designation: CSRM – Certified School Risk Manager

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Organization: The Wedge Group Contact: Marja van Oijen Email: marja@thewedge.net Address: 5729 Lebanon Rd., Ste. 144 Box 410, Frisco, TX 75034 Phone: 214-446-3209 ; Fax: 972-999-0970 Website: www.thewedge.net

Organization: The Institutes Contact: Customer Service Email: cserv@TheInstitutes.org Address: 720 Providence Rd., Ste. 100 Malvern, PA 19355 Phone: 800-644-2101 Website: www.theinstitutes.org

Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: no

Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: no Course: Associate in General Insurance Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: AINS - Associate in General Ins. Course: Associate in Commercial Underwriting Start Date: Any Time Location: All States Category: Commercial Property Casualty Designation: AU - Associate in Commercial Underwriting Course: Chartered Property Casualty Underwriter Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: CPCU - Chartered Property Casualty Underwriter Course: Accredited Adviser in Insurance Start Date: Any Time Location: All States Category: Agency Management Designation: AAI - Accredited Adviser in Insurance Course: Associate in Claims Start Date: Any Time Location: All States Category: Claims Designation: AIC - Associate in Claims Course: Associate in Risk Management Start Date: Any Time Location: All States Category: Risk Management Safety Designation: ARM - Associate in Risk Management

Course: iWin: Leader in Fully Integrated Sales Training & Management Solutions Start Date: Any Time Location: All States Category: Agency Management, Sales Managers /Producers, Property Casualty/Risk Mgmt, Employee Benefits, Sales/Marketing Designation: No Designation Course: 3-in-1 Workshop - Million Dollar Producer™, The Wedge®, Red Hot Intros™ Start Date: Any Time Location: All States Category: Agency Management, Sales Managers /Producers, Property Casualty/Risk Mgmt, Employee Benefits, Sales/Marketing Designation: No Designation Course: iWin Train the Coach - How To Run effective CRISP™ Sales Meetings Start Date: Any Time Location: All States Category: Agency Management, Sales Managers /Producers, Property Casualty/Risk Mgmt, Employee Benefits, Sales/Marketing Designation: No Designation Organization: United Insurance Educators Contact: Toni Amell Email: mail@uiece.com Address: 8213 352nd St. East Eatonville, WA 98328 Phone: 800-735-1155 ; Fax: 253-846-7536 Web: www.uiece.com or www.CheapCE.com Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes Course: Dollars and Sense Start Date: Any Time Location: Online or through home-study Category: Life and financial planning Designation: No Designation Course: FEMA National Flood Ins. Program Start Date: Any Time Location: Online or through home-study Category: Flood (PC) Designation: No Designation

April 16, 2012 INSURANCE JOURNAL-NATIONAL REGION | N29

Education and Training Directory Course: Partnership Long Term Care Policies Start Date: Any Time Location: Online or through home-study Category: Long-term care selling requirement Designation: No Designation

Organization: Van Wyhe Group, LLC Contact: Angela Lingle Email: angela@insurancece.com Address: P.O. Box 4130 Waukesha, WI 53187 Phone: 800-326-4741 ; Fax: 800-476-2945 Website: www.insurancece.com Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes

Organization: Vale Training Solutions Contact: Tonya Magalei / Ami Thompson Email: registrations@vale-ts.com Address: 2424 E. Randol Mill Rd., Arlington, TX 76011 Phone: 817-633-4800 ; Fax: 817-633-2922 Website: www.vale-ts.com Educational Offerings: Individual Courses Online Courses: no Correspondence Courses: no Course: Property Adjusting Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: No Designation

Course: Self Defense: Documentation Start Date: Any Time Location: On-Line Category: Property Casualty Insurance Course: Problems When Insuring Condos Start Date: Any Time Location: On-Line Category: Property Casualty Insurance

Organization: WISE Education, Inc. Contact: Carla Coats Email: wise.education@verizon.net Address: 1501 Cobblestone Ct. Thorofare, NJ 08086 Phone: 800-577-9888 ; Fax: 856-384-8414 Website: www.wiseeducation.com Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: no Course: Atlantic City “Blitz” Start Date: Oct 18 & 19, 2012 Location: Caesar’s – New Jersey Category: Commercial Property Casualty, Ethics, Risk Mgmt & Safety

Course: Ethics In Insurance Start Date: Any Time Location: On-Line Category: Property Casualty Insurance

Course: Residential Estimating Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: No Designation Course: Casualty Adjusting Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: No Designation

N30 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

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In This Yearโ s Top 100? Join J oin the the rranks anks of of the the iindustry ndustry leaders leaders among among privately-held retail independent insurance agencies. Now, three ways to qualify: รท 7RS 2YHUDOO ,QGHSHQGHQW $JHQFLHV รท 7RS &RPPHUFLDO /LQHV ,QGHSHQGHQW $JHQFLHV รท 7RS 3HUVRQDO /LQHV ,QGHSHQGHQW $JHQFLHV 7R KDYH \RXU DJHQF\ FRQVLGHUHG MXVW FRPSOHWH our short survey by June 1.

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Advertisers Index Readers, browse, contact, or do product searches on any of our full page advertisers at: http://www.insurancejournal.com/adshowcase/ E: East, M: Midwest, N: National, SC: South Central, SE: Southest, W: West

Abacus Insurance Brokers, Inc. www.abacus.net W63 Abram Interstate www.abraminterstate.com W26 Agent Support Network of America www.asnoa.com W3, M3 Anderson & Murison, Inc. www.andersonmurison.com N17 Applied Underwriters www.applieduw.com W64, SC52, SE52, E52, M52 Arrowhead General Insurance Agency www.arrowheadgrp.com W13 Astonish Results www.astonishresults.com W12, SC12, SE12, E12, M12 Burns & Wilcox Ltd www.burnsandwilcox.com W17, SC7, SE7, E7, M7 California Earthquake Authority www.calquake.com W7 Century National www.cnico.com W21 Chubb Corporate www.chubb.com W11, SC11, SE11, E11, M11 CRC Insurance Services www.crcins.com W2, SC2, SE2, E2, M2

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Demotech www.demotech.com N5 Driven Solutions www.driven-solutions.com N8 FAIA www.faia.com SE16 FEMA www.agents.floodsmart.gov/ij W19, SC13, SE13, E13, M13 First American Specialty Insurance Company www.firstam.com W23 Gateway Specialty Insurance www.gatewayspecialty.com W14, SC14, SE15, E14, M14 General Star www.generalstar.com E3 IBA of San Diego www.ibasandiego.com W29 IICF www.iicf.org W30, SC17, SE18, E17, M17 Insurbanc www.insurbanc.com N3 ISU Group www.joinisu.com N6, N7 M.J. Hall & Company, Inc. www.mjhallandcompany.com W22

Monarch E & S Insurance Services www.monarchexcess.com W27 Norman-Spencer www.norman-spencer.com N18 Pacific Interstate Insurance Brokers www.piib.com W16 Partners Specialty Group www.psgins.com N14 PersonalUmbrella.Com www.personalumbrella.com W5, SC5, SE5, E5, M5 PULIC - Professional Underwriters Liability Insurance Company www.pulic.com N19 RiskMeter.com www.riskmeter.com N15 Specialty Insurance Managers www.simtexas.com SC15 State Compensation Insurance Fund www.statefundca.com W15 The Sullivan Group www.gjs.com N9 Universal North America www.uihna.com W25, SC3, SE3

April 16, 2012 INSURANCE JOURNAL-NATIONAL REGION | N31

IDEA EXCHANGE

Closing Quote

A Marriage of Modernity and Tradition By Tim Carroll

milestone in the modernization of the London insurance market was reached on March 5, when the electronic processing of endorsements using ACORD data messages was extended to all classes of business. The endorsements initiative is part of a market-wide program aimed at modernizing the way business is processed — from placing, through accounting and settlement, into claims — to ensure that London remains the market of choice for global customers. The value offered by London in terms of coverage, security and price is unrivalled. This has to be reinforced by continuing to improve customer service. In recent years, we have improved the way we work. Electronic processing has more than halved the time to process the average claim. The way money moves between counterparties to settle premiums has been streamlined. “Contract certainty” has enhanced the quality and timeliness of policy documentation received by the end insured. We want to create similar improvements in the way insurance is agreed to augment customer service with increased transparency and speed, and reduced cost. It will eradicate paper-based processes, duplicative data entry and manual hand-offs between trading partners and service-providers. Contract Changes Our starting point has been to introduce smarter technology support for the agreement of contract changes —

N32 | INSURANCE JOURNAL-NATIONAL REGION April 16, 2012

endorsements. A marine business pilot commenced in October 2010; property, professional indemnity and specie was added in July 2011. The stages allowed us to build consensus around the use of process improvements, which is challenging in a market of more than 250 independent organizations and where the subscription placement still dominates. Despite the challenges, all Lloyd’s managing agents are signed up with 16 of the top 20 brokers and 24 members of the company market — a critical mass of London market businesses. We also are turning to the bigger prize of the original placement. Our intention is to use processes, compliant with ACORD international data standards, for the submission of risk details, the agreement of terms, and contract formation for all risk placements and amendments in the London market. Two things are important. First, although the message standards and process are agreed at market level, the technology by which brokers and insurers generate, receive and process data is up to them. Secondly, the process enhances the value of the negotiation between the broker and underwriter, it does not replace it. They can be more selective about when to negotiate face-to-face, thus using their time more productively. Trading becomes less time-consuming and location-dependent, allowing more efficient operating models to develop. London remains a relationship-based market, but we hope to enhance those relationships by removing time-consuming administrative tasks. Another value of starting with endorsements has been that it has allowed firms to evaluate the possible benefits, such as the delivery of better data more swiftly during the placement process, without large investment. Firms are starting to see the possibility of further competitive advantage, and as confidence develops and the process is adopted more widely for endorsements and then for placing, this will drive investment in workflow and the integration of data into back office systems. Future Market London deals with complex risks that will always need faceto-face broking. Yet for catastrophe business, much of the modelling will take place before the broker visits the underwriter to discuss the risk. The meeting will hammer out a deal, and the underwriter will electronically agree to accept a line, triggering the exchange of structured data and documents to confirm the contract. The data and documents will flow into back-office systems, be enhanced as needed by the broker or insurer, then support the movement of premium and future handling of claims. So many of us undertake personal business online — shopping, banking, personal insurance — but we don’t embrace modern technologies at work. Our electronic endorsements initiative is taking 21st century technology allied with ACORD data messages and using them to support London’s established face-to-face method of trading. The perfect marriage of modernity and tradition to service our customers. Carroll is a non-executive director of Chaucer Syndicates, Samsung F&M Europe and Tawa plc. www.insurancejournal.com

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