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Report: Building and Retaining Talent: Salaries, Benefits, Culture Matter but That’s Not Always Enough
Special Report: 2025 Agency Salary Survey: Salaries, Total Income Jump Again in 2024 But Satisfaction Continues to Decline
Report: 2024 Agents of the
Spotlight: Farmers Turn to Airbnb, Corn Mazes to Outlast Agricultural Downturn
US Chicken, Pork Plant Workers Face Higher Health Risks, USDA Studies Confirm
Reviewing Historic Predictions
Takeaways from 2024 to Build a Better 2025 and Beyond
Emerging Risks to Watch: Social Inflation, Electric Trucks, Virtual Currencies
Minding Your Business: Developing Leaders in Insurance Agencies
Marketing Connection: Insider Secrets: Creating High-Converting Sales Funnels for Insurance
Closing Quote: California Wildfire Claims Ignite IndustryWide Credibility Crisis
Opening Note
Why Soft Skills Matter
This issue reveals data and compensation insights gathered from Insurance Journal’s annual Agency Salary Survey. For the third year in a row in the survey’s 16-year history, salary averages and total compensation averages (including additional compensation such as profit sharing, bonuses, and other income) reported were higher than ever before. (See page 20 for the full report.)
This trend is good for agency employees, producers, and agency owners, but talent shortages and hiring demands have not eased for the independent agency sector. Agency owners are struggling to keep pace as the industry’s ongoing talent war continues. Competition is fierce for experienced top talent, especially in the service roles, the experts interviewed for this report say.
“Client-facing support people are really valuable,” Kevin Stipe, partner and CEO of Reagan Consulting, told Insurance Journal.
Competitive pay, job stability, and flexibility have become table stakes for companies looking to hire top-tier candidates in this sector. But those who exhibit top-level experience along with what Stipe called “soft skills” will become even more valuable in the future.
As artificial intelligence (AI) tools play a larger role in independent agencies, the technical skills that are also part of the service role job are going to become more commoditized, Stipe predicts. That’s because with these innovative tech tools agencies can equip employees with answers those technical questions much more effectively, he explained. But what AI can’t do (yet?)— is deliver to clients the service they need with “emotional IQ.” And that emotional service will become a much more valuable skill in insurance brokerage client support going forward, he said.
“We’re in a world where the soft skills are going to get more valuable,” Stipe said. “The ability to empathize with clients, display emotional IQ, that is the kind of stuff that a computer is never going to be able to do.”
It’s those soft human skills that are essential for agencies to have happy clients, he added.
“Soft skills are as important now as they will be in the future,” agreed Mary Newgard, partner and senior search consultant for Capstone Search Group, a national recruiting firm dedicated to the insurance industry.
‘We’re
in a world where the soft skills are going to get more valuable.’
“There is no technology that can replace parts of the process that require human interaction,” she added. “Some interactions can be automated, but when it comes to building relationships, working through conflict, and addressing complex needs, I don’t think AI can replace people." This rings true for many facets of an agency, from selling to and servicing clients to recruiting and retaining top talent, Newgard said.
For more, check out this issue’s special report on page 20.
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146 results for ‘bars & breweries’
News & Markets
Sica Fletcher Index: Total Agency-Broker M&A Revenue Down 26% in 2024
The 22 acquirers that make up the Sica Fletcher Index were involved in 533 agent-broker deals in 2024,
down 6% from 2023.
Members completed 146 acquisitions during the fourth quarter of 2024. This was
11% less than a year ago.
Total agency-broker revenue acquired in 2024 was $1.6 billion, a 26% decrease compared to 2023. The average agency size in revenue was about $3.1 million—about 21% lower than in 2023.
Sica Fletcher, an insurance industryfocused advisory firm, said the year’s final tally reflects “a recalibration in the market as buyers prioritize smaller, strategic acquisitions and reassess valuations amid evolving financial conditions,” as the volume of sub-$1 million deals in 2024 “continues to outweigh the volume of larger deals.”
The firm said its Agency & Broker Buyer Index captured 65% of all 2024 agent-broker deal activity, which is down from the usual 70%. The drop indicates more activity by newer market entrants.
Private equity-backed BroadStreet Partners led the SF index with 85 deals in 2024. That’s 24 more deals than last year. Hub International and Inszone Insurance were next with 62 and 48 deals, respectively.
Private equity made more than 88% of SF Index transactions in 2024. Gallagher led public companies with 45 deals in 2024.
News & Markets
Global Commercial Insurance Rates Drop in Q4 for 2nd Consecutive Quarter: Marsh
By L.S. Howard
Global commercial insurance rates fell 2% in the fourth quarter of 2024 following a 1% decline in Q3 2024—marking the second consecutive quarterly decrease following seven years of rising rates, according to the Global Insurance Market Index published by insurance broker Marsh.
Marsh said the result continues the moderating rate trend first seen in its index in Q1 2021, which is being driven by intensified competition in commercial property insurance, a moderation of casualty rate increases, stabilizing pricing in financial lines, and accelerated rate reductions for cyber risks.
The UK and the Pacific regions again experienced the largest composite rate decreases during Q4, at 5% and 8%, respectively, while US rates were flat, following a 3% increase in Q3 2024. Asia saw 3% composite rate decreases. Europe and Canada both recorded declines of 2%, while Latin America and the Caribbean (LAC) and India, Middle East, and Africa (IMEA) experienced increases of 1%.
“The softening of rates across property, financial lines, and cyber are a positive development for clients, while the challenges in other areas of the market, particularly in US casualty, are acute,” said John Donnelly, global head of Placement, Marsh, in a statement.
Global product line trends, Q4 2024
Property rates declined 3% globally during Q4 2024, following a 2% decline in the prior quarter. The Pacific region experienced the largest decrease, at 8%. In the US, property rates declined 4%, compared to a drop of 1% in the prior quarter. The UK rate decrease of 4% was level with Q3 2024, while Canada saw average decreases of 3%, compared with 1% in the prior quarter. Property rates were flat in Europe, continuing a moderation in the pace of increases. IMEA experienced a 3% increase in Q4, while LAC recorded a decline of
property insurance rates of 1% (versus a 3% hike in Q3 2024), marking the first decrease in 25 quarters. Asia’s property insurance rates declined 3%, level with the previous quarter.
Marsh said the global property market remains sensitive to loss events, particularly the ongoing Los Angeles wildfires, which will likely affect aggregate catastrophe losses in 2025.
Casualty insurance rates again were the only major coverage line to show an increase globally, rising 4% in Q4 2024, compared to an increase of 6% in the prior quarter. US casualty rates saw the largest increase at 7%, driven largely by excess/umbrella rates (versus an increase of 10% in Q3 2024). Latin America and the Caribbean experienced a 5% increase, while all other regions ranged from 2% declines to 1% increases.
Financial and professional rates decreased by 6% globally (versus a drop of 7% in Q3 2024). This marked the 10th consecutive quarter of FINPRO rate decreases.
Q4 rate declines were recorded in every region as a result of robust competition and available capacity.
Cyber insurance rates decreased 7% globally, following a 6% decline in the previous quarter. Every region saw rate decreases driven by strong competition among incumbent and new insurers as well as continued improvements in cybersecurity at many companies, Marsh said.
The Marsh report came out a week after USI Insurance Services reported that the commercial property insurance market in the US is showing signs of stabilizing.
USI's 2025 Commercial Property & Casualty Market Outlook noted that accounts with unfavorable loss experience will likely see rates increase by 5-15% in the first half of 2025, compared to 10-20% increases in the second half of 2024.
* Note: References to rate and rate movements in this report are averages. We have rounded percentages on rate movements to the nearest whole number.
Global and US composite insurance rate changes
Global product line trends, Q4 2024
Four cornerstones of a healthy insurance market
Mark Berven, President and COO, Nationwide Property & Casualty
hen I graduated from college, I didn’t anticipate a career in the insurance industry. Thirty years later, I couldn’t be more grateful for where my journey led me. Whether it’s helping a homeowner rebuild after a hurricane, supporting a businessowner with unique risks or helping a farmer improve grain-bin safety, I’m part of a company that makes a difference in people’s lives — and that never gets old.
Something else that’s kept me energized all these years is the belief that insurance benefits society as a whole. A healthy insurance market is an integral part of a healthy economy and healthy communities. As risks become more complex, and severe weather intensifies, we have a responsibility to protect the long-term health of the industry we love.
In my view, there are four cornerstones of a healthy insurance market for consumers: protection, affordability, resilience and partnership.
Protection
At its core, the purpose of insurance is to protect customers and help them mitigate their unique risks. Traditionally, our industry has had a “repair and replace” mentality focused on helping customers when they have a claim. This is still a critical part of what we do, but we can add more value by offering proactive tips and solutions to help customers avoid claims in the first place. For example, telematics devices can provide real-time feedback on a customer’s driving habits, and sensors can spot potentially dangerous electrical issues in their home or business. As part of this shift to a “predict and prevent” mindset, carriers partnering with distribution professionals need to develop tailored solutions that make it easier for clients to find the specialized protection that’s right for them.
Affordability
Providing specialized protection isn’t enough. The solutions we offer must fit into consumers’ budgets, which continue to be squeezed by economic factors such as inflation. To ensure that customers can manage the costs of the coverage they need, our industry must continue to invest in technology and innovations that simplify the end-to-end insurance process. We also need to make it harder for bad actors to abuse the legal system through “nuclear verdicts” that deepen the pockets of billboard attorneys and shadow investors while driving up costs for consumers.
Resilience
According to AccuWeather, the historic 2024 Atlantic hurricane season resulted in a staggering $500 billion in damages and is one of the most expensive ever recorded. As severe weather risks rise, including more frequent tornadoes and wildfires, we have a responsibility to make homes, businesses and communities more resilient. Research from leading organizations such as the Insurance Institute for Business & Home Safety (IBHS) shows that one of the most effective ways to achieve this goal is to modernize building codes across the country. It’s been encouraging to see a growing number of industry leaders, distribution professionals and policymakers join the call for stronger building codes, and I’m hopeful that our collective voices will drive positive change.
Partnership
A healthy insurance market can be achieved only through strong partnerships between carriers, distribution professionals, policymakers and customers. As risks become increasingly complex, the collaboration between carriers and distribution professionals is especially important. That’s why Nationwide has sharpened our appetite and developed the tailored offerings and risk expertise that allow our distribution partners to meet their clients’ specialized protection needs.
Nationwide founder Murray Lincoln said:
“We can accomplish more together than we can alone.”
This statement has never been truer than it is today. We look forward to working with you to support your clients and ensure a healthy insurance market for all.
$4.5 Billion
The amount 2024 pet insurance premiums are expected to total when all the numbers are crunched from last year, according to AM Best’s new market segment report, Mixed Early Pet Insurance Results but Inland Marine Remains Strong.
The number of mopeds towed, impounded, or seized last year in Boston. The city is considering permit and insurance regulations for food delivery services and other third-party drivers, including mopeds, e-bikes and scooters. The permit would require companies to have liability insurance coverage for all drivers using their platform. The ordinance is meant to address growing resident public safety complaints.
85.3%
The increase in U.S. natural disaster property and casualty claims, which hit to $217.8 billion in 2024, an 85.3% increase from 2023 according to Aon PLC.
$4.88 Million
The record-high average cost of a data breach reached in July 2024 — a 10% increase from the prior year and the highest increase since the pandemic, according to the July 2024 IBMPonemon Cost of a Data Breach study.
Declarations
Los Angeles County Fires
“We’re seeing total losses. We’re going out there and there’s really nothing to see. We’re maybe measuring the perimeter of a building trying to figure out a little bit what the structure looked like, if there’s any personal property left — that kind of thing.”
— Thomas Carstens, vice president, U.S. property/casualty for Crawford, speaking about assessing properties damaged by January’s Los Angeles County wildfires. At the end of January, preliminary data show insurance companies had already paid out more than $4 billion for losses from the biggest two of the Los Angeles-area wildfires that swept through the region and destroyed tens of thousands of homes. Insured loss estimates currently range from $8 to $20 billion.
Funding Recovery in North Carolina
“If we don’t have projects in the pipe, our contractors will leave. They’ve said it out loud. And if they leave, honestly, with eastern recovery, we will not have the ability to put it back together.”
— North Carolina Office of Recovery and Resiliency leader Pryor Gibson describing ongoing struggles with retaining a reliable base of contractors due to a lack of funds. Gibson called the situation a “double jeopardy” that could only be solved by “dependable money” rather than piecemeal funding from the legislature. The state is still struggling to recover from the devastating impact of Hurricane Helene in September 2024.
Electric Vehicle Pushback
“We’re determined not to be left behind.” — Plug Zen CEO Q Johnson in response to the new federal administration’s pushback against electric vehicles. Johnson’s Detroitbased company focuses on EV charging capabilities for companies that have fleets of cars and trucks. Johnson said he’s taking a “wait and see” approach,” but that he regularly works with people in the Michigan EV industry, and said he doesn’t expect them to dramatically change direction.
Measuring Methane
“There’s no consistency. We’re talking about an industry that’s incredibly diverse, hundreds and hundreds of companies in the U.S. alone that are engaged in oil and gas development. Each one may have a different voluntary program (to reduce methane emissions) that they’re implementing with different technologies, and so it’s really hard to have an apples-toapples comparison.”
— Jon Goldstein, vice president of energy transition at the Environmental Defense Fund in response to various reports citing lower methane levels released from certain oil and gas equipment and oil wells in 2023.
Reagan’s Challenging Airspace
“You definitely are bringing your A-game when you fly in and out of Reagan.”
— Former long-time commercial airline pilot Kathleen Bangs. Pilots who fly in and out of Washington D.C.’s Reagan Washington International Airport have long said the congested airspace can be challenging and even dangerous to maneuver. In January, the airport was the site of a collision between a commercial aircraft and military helicopter that resulted in 67 deaths.
Pollution Regulation
“If you’re allowing the polluter to determine how the cleanup and the notification is done, you’re bound to run into some problems. It is essential that the state has the authority to regulate these types of releases and these types of facilities, because we can’t expect them to hold themselves accountable.”
— Zachary Ogaz, general counsel for the New Mexico Environment Department. The state is in an ongoing battle regarding environmental clean-up of per- or polyfluoroalkyl substances (PFAS) from Cannon Air Force Base. A separate battle over Cannon’s culpability is a bellwether case in national litigation over the federal government's liability.
News & Markets
Chubb Posts Record P/C Underwriting Income for Q4 and 2024
By Chad Hemenway
Chubb posted record property/casualty underwriting income of about $1.6 billion, up 3.8% during the last quarter of 2024.
Fourth-quarter net income was down 22% to about $2.6 billion compared to the same period a year ago, but the Whitehouse Station, New Jersey-based insurer finished the fourth quarter with a combined ratio of 85.7
Chubb said the drop in Q4 net income was due to a tax benefit last year of more than $1 billion from enactment of a tax law in Bermuda.
Pretax Q4 catastrophe losses were $607 million compared to $300 million a year ago. Hurricane Milton alone caused $309 million in Q4 catastrophe losses, Chubb said. Global P/C growth in net premiums was 6.7% for Q4 2024.
CEO Evan G. Greenberg in a statement acknowledged the California wildfires as a “terrible tragedy” and added that the
insurer was on the ground, “endeavoring to assist our policyholders who have lost property, been displaced from their homes and businesses, and had their lives severely disrupted.”
He said the initial estimate of Chubb’s
catastrophe losses from the fires, to be recorded in Q1 2025, is about $1.5 billion.
P/C underwriting income for all of 2024 was also a record, according to Chubb. Underwriting income came in up 7.1% compared to last year at about $5.9 billion, and the insurer posted a combined ratio for the year of 86.6.
Chubb said net income for 2024 was also a record at about $9.3 billion, up 2.7%.
Pretax catastrophe losses were higher at about $2.4 billion compared to about $1.8
billion for 2023.
Chubb finished 2024 with global P/C net premiums written up 9.6%.
‘Overall market conditions are quite favorable, and we see really good growth opportunity for over 80% of our global P/C business, commercial and consumer, as well as our life business.’
– Evan G. Greenberg, CEO, Chubb
Greenberg in a statement said Chubb’s results for the full year were “the best in our company’s history." He added: “Overall market conditions are quite favorable, and we see really good growth opportunity for over 80% of our global P/C business, commercial and consumer, as well as our life business.”
Net Income at Selective Insurance Drops on Unfavorable Casualty Reserve Development
By Chad Hemenway
Selective Insurance Group reported a 24% drop in fourth-quarter 2024 net income as its chief executive admitted the year did “not meet expectations.”
Fourth-quarter net income was $93.2 million compared to $122.5 million a year ago. Net income for the year was down 44% to $197.8 million from $356 million for 2023.
CEO John J. Marchioni said Branchville, New Jersey-based Selective took “meaningful actions to strengthen casualty reserves in response to social inflation.”
Selective recorded $100 million in unfavorable prior year reserve development in casualty during Q4, driven by recent accident years in general liability and excess and surplus lines. Most of the unfavorable reserve development was in
commercial lines—$100 million in general liability offset by favorable development of $25 million in workers’ compensation. This added 8.5 points to the Q4 combined ratio in commercial lines, which came in at 100.2 compared to 93.1 during the same period in 2023. Net premiums written (NPW) in the standard commercial lines segment were up 9% for the last quarter of 2024 and up 11% for the year.
Selective, the holding company for 10 P/C insurers that offer standard and specialty commercial and personal insurance products via independent agents, reported an overall Q4 combined ratio of 98.5, up 4.8 points from the period a year ago.
For the year, the combined ratio was 103 compared to 96.5 in 2023.
Selective’s E&S segment, which represents 14% of total NPW, saw the Q4 combined ratio shoot up to 93.1 from 76.2 a year ago. Prior year reserve development on casualty lines of $20 million added 14.2 points compared to no adverse reserve development a year ago. New business in E&S grew 29% in Q4. Net premiums written were up 27% to $152.6 million in Q4, and were up 29% to $567.2 million for the year.
In the standard personal lines segment, net premiums written in Q4 decreased 3%. Retention was down and new business was cut in half during the period due to “deliberate profit-improvement actions,” Selective said. The combined ratio for the segment improved to 91.7 from 116.9 for Q4 and to 109.3 in 2024 from 121.7 in 2023.
Travelers Posts 28% Increase in Q4 Net Income
By Chad Hemenway
The Travelers Cos. said fourth-quarter 2024 and full-year net income increased 28% and 67%, respectively, on strong underlying underwriting results.
Travelers posted fourth-quarter net income of about $2.1 billion compared to about $1.6 billion during the last quarter of 2023. Full-year 2024 net income was nearly $5 billion compared to about $3 billion for 2023.
The New York-based insurer’s combined ratio improved 2.6 points to 83.2 for Q4 2024 and was up 4.5 points to 92.5 for the full year.
Catastrophe losses of $175 million in Q4 2024 were mostly the result of Hurricane Milton as well as an adjustment in losses from Hurricane Helene in the third quarter. Catastrophe losses were about $3.3
billion for all off 2024—about $344 million higher than the prior year—due primarily to Helene and wind and hailstorms in multiple states.
The consolidated underwriting gain at Travelers was about $1.8 billion in Q4 2024 compared to $1.4 billion in Q4 2023. Underwriting profit was up more than $2 billion to nearly $3 billion for full-year 2024.
Underwriting results for the last quarter
and full year also included favorable prior year reserve development of $262 million and $709 million, respectively.
Underwriting income in Travelers’ business insurance and personal insurance segments were nearly identical ($808 million and $807 million) for Q4 2024.
For the year, the personal lines segment reversed a 2023 loss of $817 million by recording underwriting profit of $827 million for 2024.
Travelers said Q4 2024 net written premiums in business insurance of about $5.4 billion increased 8% over Q4 2023 on strong renewal premiums and retention. In personal insurance, NPW for the last quarter were about $4.3 billion, up 7% on renewal premium changes.
Business Moves
National
Waner Pacific, Acrisure
General agency Warner Pacific, based in Westlake Village, California, acquired five general agencies from broker and fintech specialist Acrisure.
The five Acrisure General Agencies moving under Warner Pacific include Employee Benefit Risk Management, Oak Brook, Illinois; Group Benefit LTD, Urbandale, Iowa; Professional Group Marketing, Brewster, New York; National United Brokers, Westerville, Ohio; and Mature Health Services, Palatine, Illinois.
East
Renaissance, Consolidated Insurance Agents Inc.
Independent insurance agency network Renaissance acquired the agency network business of Consolidated Insurance Agents Inc. (CIA), based in Buffalo, New York. Carl Maranto is president of CIA.
Marsh McLennan Agency, Acumen Solutions Group LLC
Marsh McLennan Agency (MMA) acquired Acumen Solutions Group LLC, a Melville, New York-based insurance agency.
Acumen provides personal insurance, customized commercial insurance programs and administrative services. Acumen employees, including President Tony D’Elia, will join Marsh McLennan Agency and continue to operate out of Melville.
Union Bay Acquisition LLC, Loyalhanna Insurance Group
Union Bay Acquisition LLC, an aggregator of insurance agencies based in Lansdale, Pennsylvania, acquired Loyalhanna Insurance Group of Latrobe, Pennsylvania. Union Bay Acquisition LLC owns property/casualty insurance agent Union Bay Risk Advisors LLC.
Hub International Ltd., Byrnes Agency, Inc.
Insurance broker Hub International Ltd, headquartered in Chicago, acquired the assets of Byrnes Agency, Inc., located in Dayville and Norwich, Connecticut. The Byrnes Agency team of more than 25 associates will join Hub New England. Byrnes Agency will be referred to as Byrnes Agency, a Hub International company.
Relation Insurance Services acquired the assets of Forest Insurance Agency in Forest Park, Illinois. Dan Browne, president of Forest, will continue managing that office as a part of Relation.
WalkerHughes Insurance, headquartered in Indianapolis, Indiana, acquired Independent Brokers Agency LLC (IBA), a St. Louis, Missouri-based insurance agency. IBA represents WalkerHughes’ first acquisition outside of Indiana. Heather
Wessels, Principal of IBA, and Mike Swatske, Partner of IBA, will continue managing the St. Louis, Missouri office, assuming local leadership and continued business development roles as regional directors.
South Central
Clyde & Co, Tillman Batchelor LLP
Law firm Clyde & Co announced its merger with Dallas law firm Tillman Batchelor LLP. Mark Tillman and Colin Batchelor have joined Clyde & Co’s Dallas office as partners. Tillman Batchelor LLP served the litigation needs of domestic and international insurance carriers and their insureds, along with numerous other business entities on a direct representation basis throughout the U.S.
Southeast
ALKEME,
Professional Benefits Consultants
ALKEME, headquartered in Ladera Ranch, California, acquired Professional Benefits Consultants, based in Canton, Georgia. PBC offers a range of benefits and insurance coverage, including Medicare solutions, group health and compliance and administrative functions.
The Andrew Agency, Garriques, Lloyd & McMahon
The Andrew Agency, headquartered in Glen Allen, Virginia, acquired Garriques, Lloyd & McMahon (GLM) in Richmond, Virginia. Founded in 1963, GLM Insurance is a third-generation family-owned agency providing personal and commercial insurance throughout Virginia and North Carolina. The Andrews Agency is an independent agency serving the Mid-Atlantic region.
Ryan Specialty, Velocity Risk Underwriters
Ryan Specialty, headquartered in Chicago, plans to acquire Nashville-based Velocity Risk Underwriters, with a closing date early this year. Velocity Risk, providing coverage for catastrophe-exposed properties, is a managing general
underwriter that has been a part of Oaktree Capital Management. Velocity will become part of Ryan Specialty Underwriting Managers. As a component of this transaction, subject to regulatory approval, Velocity’s excess and surplus carrier, Velocity Specialty Insurance Company (VSIC), will be acquired by commercial property mutual insurance company FM, formerly FM Global.
Strate Insurance Group, Main Street Insurance Group
Strate Insurance Group in Morristown, Tennessee, is merging with Main Street Insurance Group, a 127-year-old agency with locations in North Carolina. The merged firm will operate as Strate Insurance Group, a Main Street Insurance Group Partner. All team members will remain with the new operation. Katherine Strate Smith will serve as partner and owner in Main Street, while Tom Strate will serve in an advisory role.
King Risk Partners, Bruce Hendry Insurance
King Risk Partners, based in Gainesville, Florida, acquired Bruce Hendry Insurance (BHI) in Immokalee, Florida. BHI has been in business for 45 years, serving much of the state, offering coverages through Nationwide, Travelers, Progressive, Mercury and other carriers.
West
Trucordia, Boulder Insurance Solutions
Trucordia, headquartered in Lindon, Utah, acquired the insurance business of Boulder Insurance Solutions in Colorado, a full-service brokerage serving small- to mid-sized companies. Trucordia was formerly PCF Insurance Services.
Heffernan Insurance Brokers, Green Financial
Heffernan Insurance Brokers, headquartered in Walnut Creek, California, acquired Green Financial in Kirkland, Washington. Fred Green, president of Green Financial, and his team have joined Heffernan Insurance Brokers’ small business division, HeffDirect.
Hub International Ltd.,
Woods Insurance Services, Inc.
Hub International Ltd., headquartered in Chicago, has acquired the assets of Woods Insurance Services Inc. in Farmington, New Mexico.
Owner and President Lyle Love and the Woods Insurance Services team will join Hub Southwest.
Woods Insurance Services will be referred to as Woods Insurance Services, a Hub International company.
Lincoln-Leavitt Insurance, headquartered in Lakeport, California, acquired Pyorre Insurance Agency. The Pyorre Insurance Agency’s Lakeport office will relocate to Lincoln-Leavitt Insurance’s location in Lakeport. Its Fort Bragg location will remain open. Leavitt Group is a privately held insurance brokerage with more than 90 agencies and 250 locations across 27 states.
Navion Insurance Associates Inc., Pegasus Capital & Insurance Services Inc.
Navion Insurance Associates Inc., headquartered in Yorba Linda, California, acquired Pegasus Capital & Insurance Services Inc., specializing in commercial insurance. Navion Insurance Associates is a retail insurance agency providing commercial and personal insurance products and services nationwide.
SageSure, headquartered in Jersey City, New Jersey, acquired GeoVera Advantage Insurance Services LLC in Fairfield, California. SageSure is a managing general agent specializing in catastrophe-exposed residential and commercial property insurance. GeoVera Nova Holdings oversees the growth and management of GeoVera Insurance Co., GeoVera Specialty Insurance Co., Coastal Select Insurance Co. and SafePort Insurance Co.
Arthur J. Gallagher & Co., Murray Gardner Insurance Agency Inc.
Arthur J. Gallagher & Co., headquartered
in Rolling Meadows, Illinois, acquired Tustin, California-based Murray Gardner Insurance Agency Inc., dba BMR Insurance. Gary Arch and his team will remain in their current location under the direction of Scott Firestone, head of Gallagher’s Southwest region retail property/casualty brokerage operations.
World Insurance Associates LLC, Business Contractors Insurance Services
World Insurance Associates LLC, headquartered in Iselin, New Jersey, acquired the business of Business Contractors Insurance Services (BCIS) in Santee, California. BCIS provides insurance services to individuals and businesses.
Hub International Ltd.,
Jackson Hole Insurance LLC
Hub International Ltd., based in Chicago, acquired the assets of Jackson Hole Insurance LLC in Wyoming. Evan Molyneaux, president, and Geoff Whitaker, senior sales executive, will join Hub Mountain. Jackson Hole Insurance will be referred to as Jackson Hole Insurance, a Hub International company.
Hub International Ltd.,
Great Basin Insurance Inc.
Hub International Ltd. also acquired the assets of Great Basin Insurance Inc. Agency Partners Dana Loreman and Bill Gilmore Jr. and their team will join Hub Northwest. Great Basin Insurance will be referred to as Great Basin Insurance, a Hub International company. Great Basin Insurance has locations in Klamath Falls and Springfield, Oregon.
International
Guy Carpenter, Carpenter Turner
Guy Carpenter, headquartered in New York City, acquired a 51.5% stake of Carpenter Turner, an Athens-based regional leader in the reinsurance broking and advisory business.
Carpenter Turner’s CEO, Alexander Turner, becomes CEO, Guy Carpenter Greece, reporting to Julian Enoizi, CEO, Guy Carpenter Europe. The agency is now operating as Guy Carpenter Greece.
People
National
AM Best, headquartered in Oldwick, New Jersey, appointed Kenneth J. Johnson as senior managing director and chief ratings officer. Stefan Holzberger became executive vice president and chief operating officer at AM Best Rating Services.
strategy, a new leadership role. Jack Jenner was promoted to a new role as managing director, international insurance.
Zurich
president of California. Sara Evans was named regional president for the Mountain West region.
Starr, headquartered in New York City, named Peter Hirs as chief financial officer, succeeding Howard I. Smith, who is retiring after more than 40 years at Starr and related entities.
The National Association of Mutual Insurance Companies (NAMIC) promoted Tony Cotto to assistant vice president and counsel for federal and political affairs.
Resilience, headquartered in New York City, named George Kotsiopoulos as president, insurance. The company named Gavin Reed as head of underwriting for North America.
Sarah Thompson is now global head of sales
Nor th America, headquartered in Schaumburg, Illinois, appointed Kristen Bessette as chief data officer. She most recently served as senior vice president and chief actuary for commercial insurance at Liberty Mutual Insurance in Boston.
Francisco Saldaña, a recent addition to Inszone, will serve as regional president for the Midwest.
Plymouth Rock Assurance, headquartered in Boston, named Ethan Tarby as president and CEO of Plymouth Rock Assurance Corporation. Tarby served as interim president and CEO since June 2024. He will lead Plymouth Rock’s Independent Agency Group.
East
Mark J. McDonnell as CEO. McDonnell replaces outgoing CEO and current board chair, Daniel C. Bridge. Brody N. Gilbert was named executive vice president and chief operating officer (COO).
NFP, an Aon company headquartered in New York City, named Patrick O’Neill as head of its Financial Institutions Group. He succeeds Lauren Kim, who was named the company’s regional managing director for P&C in the Northeast.
Inszone Insurance Services, headquartered in Sacramento, appointed Chris Tracy as regional
The governing committee of the Automobile Insurers Bureau of Massachusetts (AIB) appointed William H. Scully as president. Scully served as interim president, succeeding Kim A. Barber, who retired in April 2024. Scully served as vice president and chief actuary since 2020.
DeCotis Specialty Insurance, headquartered in Providence, Rhode Island, hired Chris-Michael Carangelo as a commercial lines broker.
Vermont Mutual, headquartered in Montpelier, Vermont, named company president
The MEMIC Group, headquartered in Portland, Maine, promoted Kaila McCracken to vice president of business intelligence and analysis. McCracken previously served as director of financial planning.
Harford Mutual Insurance Group, headquartered in Bel Air, Maryland, hired Shane Crockett as vice president and chief underwriting officer. Bryan Yekstat was named assistant vice president, claims. Matthew Summerell was promoted to assistant vice president, business development. Craig White joined Harford Mutual as director of information security.
Vermont Governor Phil Scott named Sandy Bigglestone as acting commissioner of the state’s Department of Financial Regulation.
Protecdiv, headquartered in Philadelphia, appointed Steve
Stefan Holzberger
Peter Hirs
George Kotsiopoulos
Sarah Thompson
Gavin Reed
Jack Jenner
Kristen Bessette
Patrick O'Neill
Lauren Kim
Sara Evans
Chris Tracy
Francisco Saldaña
William Scully
Chris Carangelo
Mark McDonnell
Kaila McCracken
Sandy Bigglestone
Skowronski as executive vice president and chief financial officer.
XS Brokers, headquartered in Quincy, Massachusetts, hired Annie Dawson as senior vice president to head national carrier relations and strategy. XS Brokers also named Scott Burns as senior vice president of its newly created product division for cyber liability.
The MEMIC Group, headquartered in Portland, Maine, promoted Matt Holbrook to vice president of data and analytics.
Holbrook most recently served as senior director of data, analytics and technology.
West
Front Row
Insurance Brokers LLC, headquartered in Vancouver, British Columbia, hired film insurance broker Tony “Anthony” Baratta to its Los Angeles office. Baratta joins Front Row after a 16-year career at Gallagher Entertainment, where he served as area senior vice president.
Washington State Insurance Commissioner Patty Kuderer hired members for her executive team at the Office of the Insurance Commissioner, including Andrew Davis, deputy commissioner for consumer protection; Tanya Lavoy, deputy commissioner for public affairs; Larry Robinette, tribal liaison; Tom Zuvela, chief financial officer; Sam Gutierrez, external communications manager and Alissa Julius, executive assistant to the commissioner.
The California Insurance Wholesalers Association (CIWA), promoted Yana Connors of CK Specialty to president from her previous role as vice president. Other promotions include Garett Kaneko of Amwins as vice president, Sarah Sloan of Paragon Insurance Holdings steps to the treasurer, and Aimee Bernadicou of Wholesure as secretary. John Donahue, also of Wholesure, transitions to the role of immediate past president. David Klayman of Seneca and Jack Else of Nationwide were named new board members.
Paige Maisonet to chief people officer. Maisonet oversees talent acquisition, people operations and employee experience.
Aspire, headquartered in Rancho Cucamonga, California, named Isaac Adams the vice president of product. Adams most recently served as Aspire’s chief marketing officer.
The Pacific Association of Domestic Insurance Companies (PADIC), headquartered in Auburn, California, elected Anisha Basi, general counsel for Pacific Specialty Insurance Company, to serve as PADIC president.
Midwest
Grange Insurance Company, headquartered in Columbus, Ohio, promoted Mike Hickman to vice president, national underwriting and business operations, a role serving on the company’s commercial lines leadership team.
Southeast
Justin Davis joined Alliant Insurance Services, headquartered in Irvine, California, as a producer within its employee benefits group.
Boston Mutual Life Insurance Company, headquartered in Canton, Massachusetts, appointed Bill Neely as regional sales director for North Florida in its distribution and business development department.
Brooks Insurance, a wholly owned subsidiary of Venbrook Group LLC headquartered in Los Angeles, hired Tiffani Ann Garabedian as senior vice president of underwriting.
Newfront, based in San Francisco, promoted
Grange Insurance Company, headquartered in Columbus, Ohio, promoted Mike Hickman to vice president, national underwriting and business operations.
Canopius, headquartered in Chicago, appointed Laura Burke as U.S. head of cyber and technology. Burke assumes the role after serving as executive vice president, cyber and technology, since joining the company in 2020.
Bradley Cassidy, based in Fort Myers, Florida, joined Alliant Insurance Services as vice president within its Alliant Americas division. Alliant is based in Irvine, California.
South Central
BenefitMall, headquartered in Dallas, appointed Tim Kealamakia to its team
as the new benefits sales executive for the Mountain West region.
Tokio Marine HCC, based in Houston, Texas, appointed Brendan Gaine to the new role of head of North American distribution. TMHCC also appointed Stuart Heath as head of distribution – international. Heath previously served as TMHCC’s head of delegated property
Steve Skowronski
Annie Dawson
Scott Burns
Matt Holbrook
Tony Baratta
Tiffani Garabedian
Paige Maisonet
Isaac Adams
Mike Hickman
Laura Burke
Tim Kealamakia
Special Report: Agency Salary Survey
Building and Retaining Talent: Salaries, Benefits, Culture Matter but That’s Not Always Enough
By Andrea Wells
Independent agency owners, producers, and support staff continue to report higher pay, according to Insurance Journal’s national online Agency Salary Survey results. But for the second year in a row, survey respondents report a decline in satisfaction when thinking about their compensation.
“When I hear from insurance professionals that they aren’t
happy with compensation, typically that is a symptom of something else,” said Mary Newgard, partner and senior search consultant for Capstone Search Group, a national recruiting firm dedicated to the insurance industry.
Newgard, also the author of Insurance Journal’s Ask the Insurance Recruiter monthly column, said when employees think about leaving, their dissatisfaction may be coming from other things built around compensation—not just money.
“Is the employee challenged in their role? Are there career advancement opportunities? Are they happy with the people
that they work with?”
Newgard said employees also may decide to leave out of concern for the future of the agency. Is the agency stable? Do the agency owners make good decisions? Does the employee enjoy the agency’s culture?
In today’s fast-paced, hard-market conditions, employees may feel overworked. “‘Do they just keep dumping on me more without recognizing where I'm at?’ These are the same kinds of secondary factors that are tied to compensation that employees consider important outside of compensation,” she said. Newgard said that years
ago these soft benefits were “wellness programs, gym memberships, increased benefits, and volunteer time off.”
“These things get bubble wrapped around compensation to make somebody a very happy employee and a retained employee,” she said.
Today, employees value a flexible work schedule, opportunities for career advancement, and culture. So, while compensation alone will make a few insurance professionals make a job change, more often employees leave when they feel an imbalance between comp, career opportunities, and agency culture, Newgard said.
“That’s when agencies see a lot of turnover, too,” she noted. “It might be easy for some agencies to change comp, but just changing comp alone is not usually good enough to correct retention issues.”
Finding balance between those key issues is important to retaining and maybe even attracting new talent, Newgard added.
Service Roles in High Demand
The hard insurance market—and the need to remarket accounts as a result—is pushing the demand for service roles even more than last year, according to Art Betancourt, founder and CEO of AEBetancourt, a national professional placement and executive recruiting firm for the industry.
Betancourt told Insurance Journal that in 2023, his firm saw recruiting efforts focused about 50/50 on service staff and producers. In 2024, his firm spent about 60% of its recruiting on service positions alone.
“We’re seeing a lot of agencies, especially with the hard market, with a huge need for service,” he said. He expects that need to continue to increase in 2025. “Even though we’ve seen an increase in employees in the sector, it is still nowhere close to enough to meet the demand, especially with all the retirements that continue to happen as the industry ages. Service is definitely a huge need.”
Newgard always tells her clients that the biggest role—and most frequent position to hire for—will always be the client service professional or account manager. Agencies compete with other firms, maybe even just across the street, for experienced talent.
“The job descriptions for account managers at those agencies is basically the same,” she said. It’s mostly a lateral move. “So, you have to ask the question: ‘What is it that’s going to attract somebody at my competitor’s office to come do that same role and that same function for me?’”
It’s a stronger compensation plan that builds in “different variables,” she said. Compensation “plus the other things wrapped around it will create the trifecta that every agency should be striving for,” she added. “Because if they strive for that trifecta of career advancement within the position itself, a very strong culture—however you choose to define that—and a strong, multifaceted compensation plan, then that helps you not only attract that talent but retain it.”
Some good news, according to Betancourt, is while service role salaries in independent continued on page 22
How Agencies Base Compensation Incentive Plans
Average Agency Salaries by Experience
Average CSR Salaries by Region
Average CSR Salaries by Region
Special Report: Agency Salary Survey
Average CSR Salaries
What Strategies Agencies Implemented
What Strategies Agencies Plan to Implement in 2025
What Benefits Agencies Offer
Changes to Health Insurance Plan
continued from page 21
agencies are not trending down, the upward pressure is not as aggressive as two years ago.
“Comp is still growing—we still see it trending up—but we’re not seeing as much of the crazy ‘we’ll pay anything’ type numbers, especially from the large national brokers,” he said. “We’re not seeing big comp packages as the reason people leave as much as we have in the past.” But he agrees that more movement is happening in service positions because of undesirable agency culture or when employees feel overworked. “People are willing to buckle down and get work done with limited resources, but they have to know that leadership is working to solve it.”
Skills Matter
Client-facing support people are extremely valuable in today’s hard market as agencies have seen increased workloads over the past several years.
Technical skills and insurance coverage knowledge will always be valued skillsets for customer support, but softer skills such as the ability to interact with clients—in a human way—could make account managers and CSRs even more valuable in the future, according to Kevin Stipe, partner and CEO of Reagan Consulting.
The price to hire a high-quality account manager or CSR has gone up nationwide as agencies compete for the best talent in a remote working world, he said.
“California and New York agencies were going into the heartland and offering people the opportunity to work remotely, and that bid up the compensation levels,” he said.
“But I think the thing that’s most interesting to me right
now is how AI is going to play into this.”
Artificial intelligence (AI) technologies are making big leaps in agency productivity on many fronts, Stipe said, but clients will always want a human. “So, the soft skills of client-facing support [people] are going to get more valuable as the technical skills that are also part of that job become more commoditized,” he predicted. “You can equip people with AI to be able to answer questions more effectively than before,” he said. But a computer is never going to be able to do what a human can do, Stipe said. “You want to trust a human being. You want empathy from a human being. You want a human being that can read the tone of your voice and respond,” he said.
“Customer service reps in our industry—really good ones—fuse together that empathy, emotional IQ, with technical knowledge and the ability to answer questions and adapt to situations and make sure things get done,” Stipe said. “I think what we’re going to see with AI is some of those technical skills, AI can handle, but AI can’t handle the emotional IQ stuff.” And those “soft human skills are so essential to have happy clients,” he said.
Newgard added that soft skills are as important now as they will be in the future.
“Agencies have thought about efficiency for a long time,” she told Insurance Journal. “It’s one of the reasons we see so many outsource policy administration to third-party companies.”
But as AI forces agencies to think about division of duties in different ways, it’s important to understand that technology will never be a solution for everything, she added.
“There is no technology that can replace parts of the process that require human interaction,” she said. There are elements within insurance that are transactional. “Some interactions can be automated, but when it comes to building relationships, working through conflict, and addressing complex needs, I don’t think AI can replace people.” This applies to many facets of an agency, from selling to and servicing clients to recruiting and retaining top talent, Newgard said.
Average CSR Salaries by Gender
Special Report: Agency Salary Survey
Survey Reveals How Work From Home Changed
Salaries, Total Income Jump Again in 2024 But Satisfaction Continues to Decline
By Andrea Wells
Insurance agency owners, producers, and support staff on average made more money in 2024, but for two years in a row, satisfaction with their compensation declined, according to the latest Agency Salary Survey, published annually by Insurance Journal. Changes in overall salary and total income rose again in all categories in 2024. Management/agency owners/ principals and producers/ sales both saw large increases in total income change from 2023 to 2024, while the support staff/CSR/account executives category revealed a slight increase in total income change compared to the previous year. (See chart on page 21.)
Surprisingly, satisfaction with compensation declined for the second year even though salaries and total income rose on average in all three categories.
Satisfaction with compensation fell in this year’s survey to an average of 3.27 (2024) from 3.36 (2023) last year. This is a
steady decline in the average satisfaction index scores of 2022 (3.61) and 2021 (3.41) Note: The Agency Compensation Satisfaction Index is based on a scale of 1-to-5 where “5” equals “most satisfied.” (See Agency Compensation Satisfaction Index chart, page 21.)
• Management/agency owners/agency principals reported a compensation satisfaction score of 3.76 in 2024, down slightly from 3.76 in 2023.
• Producers/sales reported satisfaction of 2.96 in 2024, down from 3.12 in 2023.
• Support staff/CSR/account executives reported a satisfaction score of 3.08 in 2024, down from 3.16 in 2023.
The score for overall satisfaction was higher when agencies offered employee benefits—both hard benefits (such as group health, life/ disability, dental, profit sharing, 401(k) plans, ESOPs, IRAs, and flexible savings accounts) and soft benefits (such as child care/day care, education reimbursement, pet insurance, and paid family leave). (See
Employee Benefit Satisfaction Index, page 24.)
Employee benefit satisfaction ranked highest when agencies offered added benefits such as child care/ day care (3.8), education reimbursement (3.76), profit sharing (3.76), stock options (3.62), and paid family leave (3.59). The survey found that in nearly all employee benefit categories queried, employees showed more satisfaction with overall compensation when those benefits were offered. The one exception this year was a slight decline in satisfaction when offered pension plans, perhaps due to limited
options of this benefit.
As noted, the survey revealed an upward trend in total compensation for all agency positions this year.
Producers/sales positions saw the highest increases in total compensation, according to this year’s survey.
The 2025 Agency Salary Survey, based on more than 500 responses nationwide, revealed that total income changes, which includes salary plus additional compensation such as profit sharing, bonuses, and other income, were:
• Agency owners, principals, and management total income increased 17.9% for 2024,
compared to a 16.1% increase in total income in 2023.
• Producers/sales total income increased the most in 2024 to 20.8%, compared to a 12.6% increase in 2023.
• Agency support staff total income showed a 11.3% increase for 2024, compared to a 9.6% increase for 2023.
Salaries only (excluding bonus and incentive income), also rose again in 2024, and at a higher rate than the previous year, according to this year’s survey results:
• Salaries for agency owners, principals, and management rose 15.8% in 2024, compared to 13.8% in 2023.
• Producers/sales reported average increases in salary of 17.9% in 2024, compared to 11.9% in 2023.
• Salaries for agency support staff rose 11.0% in 2024, compared to 8.0% in 2023.
Insurance Journal’s Agency Salary Survey collected about 500 responses from agency owners and employees nationwide via an online survey in January 2025. Paul Osbourne, senior analyst at Demotech Inc., assisted with analysis of this year’s survey results. For more information, contact Andrea Wells at: awells@insurance journal.com.
continued on page 26
Special Report: Agency Salary Survey
continued from page 25
News & Markets
Viewpoint: How Will the California FAIR Plan Fare? What’s Next for Independent Agents?
If there is a single bright spot to be found in the aftermath of the costliest wildfire in California’s history, it is that both the property/casualty insurance industry and the independent agents who serve as its personal point of contact with insureds now have a golden opportunity to remind consumers just how effective they can be when disasters occur.
By Rene Swan
Call to Action
Independent agents face an enormous call to service at a time when the state’s insurance market faces great uncertainty. The latest wildfires could not have come at a worse time for California, which has been beset by an insurance availability crisis as multiple carriers with considerable market share in the state have exited—in large part due to their inability to achieve rate adequacy through the state’s department of insurance.
2025, the department has already issued nonrenewal bans on more than 100 ZIP codes. The California Department of Insurance is also urging consumers to begin the claims process by contacting their insurer or agent to try and settle claims before contacting a public adjuster or an attorney.
In the weeks and months to come, claims adjusters will be tasked with assessing insured losses among more than 18,000 structures destroyed or damaged in the Eaton and Palisades fires. Each case requires the same degree of professionalism and care.
While it’s often tempting to paint a catastrophe of such magnitude in broader strokes (for example, insured losses likely ranging between $20 and $45 billion, the destruction spanning acreage three times the size of Manhattan), our focus must remain on serving those who put their trust in our hands.
Insureds need our industry to respond quickly and efficiently, and independent agents must once again rise to the challenge.
Now, however, is neither the time for semantics nor for pointing fingers. Rather, it is a time for solutions—and a new way forward.
Most recently, California Insurance Commissioner Ricardo Lara issued an emergency declaration allowing unlicensed claims adjusters to work— overseen by a qualified licensed adjuster, qualified manager, or insurer—to share the load in expediting the claims process. Carriers will still use their own adjusters or even contract with independent adjusters in handling the deluge of claims.
In the aftermath of any wildfire declaration of emergency by the governor, the commissioner is permitted to impose a one-year moratorium on non-renewals and cancellations in affected areas. For
The need for patience and empathy among independent agencies and their customer-service reps must be kept top of mind as the claims process mounts. Sincere empathy is the hallmark of any successful agency, but it must be consistently maintained—and members of those agencies, from the principal to the CSRs, must be cognizant of their own emotional well-being under tense conditions as the claims count grows, and agency staff have multiple conversations with insureds on one of the worst days of their lives.
Agency owners would do well to discuss this challenge with team members and keep an open dialogue with their agency-owner contemporaries to share best practices in claims handling.
Fate of the FAIR Plan
A large percentage of the insured losses from the Palisades and Eaton fires will
continued on page W4
STRENGTHENING OUR EXPERTISE
Congratulations, Kevin Chuc!
At the Surplus Line Association of California, we prioritize continuous learning and industry expertise to better serve our members. We’re proud to announce that Kevin Chuc, a key member of our Data Analysis team, has earned his California P&C insurance license, joining colleagues Yusuf Mayet and Paul Cruz in achieving this distinction. Their accomplishments play a key role in reinforcing trust and confidence in the surplus lines marketplace.
Congratulations, Kevin, on this milestone in your career!
VP, Legal Compliance
Kevin Chuc AVP, Data Analysis
Paul Cruz Insurance Analyst Manager
Yusuf Mayet
News & Markets
continued from page W2
be in homeowners. It’s estimated that roughly 22% and 12% of the structures destroyed in the Palisades and Eaton fires respectively are covered under the FAIR Plan.
‘Insureds need our industry to respond quickly and efficiently, and independent agents must once again rise to the challenge.’
Bear in mind that because FAIR Plan policies are limited to $3 million in coverage for dwellings, some homeowners will discover how much they might end up paying out of pocket when increased demand causes rebuilding costs for labor and materials to skyrocket. What’s more, the FAIR plan’s standard policy language limits coverage to actual cash value—basically, the depreciated value of the home.
Delays in rebuilding will also cause payouts to rise for displaced residents forced into long-term housing arrangements. Increased demand for such housing is already causing rental prices to swell, which will lead to higher additional living-expense claims for carriers—some of which may be limited by policy contractual language.
Yet, the larger question remains: What happens if the insured losses exceed the FAIR Plan’s resources?
It’s worth noting that the FAIR Plan was never intended to be a state-sponsored insurance fund. Firas Saleh, director of product management at Moody’s, noted in a blog the plan’s exposure in L.A. County was $112.2 billion with year-overyear growth of 53%, and that L.A. County exposure represents about 23% of the plan’s portfolio.
FAIR Plan President Victoria Roach recently reported that the plan has a surplus of nearly $377 million available for claims and expenses not yet incurred. Its total cash on hand is $1.4 billion, with the approximate $1 billion difference reserved for current outstanding liabilities such as loss reserves and expenses, commissions payable, and other incurred expenses. The plan does have reinsurance treaties in place, with payouts tied to losses exceeding the first $900 million.
Should the FAIR Plan prove unable to meet its compensatory obligations, California insurers are required to help pay those losses through assessments proportionate to their prior market shares, going back two years.
For the first $1 billion in personal lines and $1 billion in commercial lines assessments, insurers could seek to recoup half their share of the assessments through fees billed to policyholders. At the moment, it remains uncertain just what the plan’s total financial responsibility will be. While the plan has nearly $6 billion in exposure to potential loss from the Palisades Fire, for example, the plan recently estimated that its total losses might be closer to $3.75 billion—not a small number, but within its current ability pay, Roach has stated.
Balancing Act
Speculation also continues as to whether the insured losses incurred from the wildfires will put more pressure on an insurance market with coverage-availability issues. Without substantial regulatory actions, insurers will require incentives to write more property in the state. In 2023 and early 2024, major homeowners insurers including State Farm Mutual Insurance Co., Allstate, and Farmers either pulled back on or limited new business in California, raising questions about insurance availability for property—particularly in areas at high risk for wildfire, such as the wildland urban interface.
As 2024 ended, Lara announced a catastrophe modeling and ratemaking regulation to enable insurers to employ the models in their rate formulations. In return, carriers must increase their number of policies in wildfire-exposed areas equivalent to no less than 85% of their statewide market share.
If insurers can both utilize catastrophe models and pass along the cost of reinsurance, in theory it will make it easier for them to write more business in riskprone areas. Plus, if insurers can recoup
some or all of the cost of purchasing reinsurance, they could then buy more of it, enabling them to assume more wildfire exposures. Which, admittedly, is a lot of “if”s.
Time will tell if insurer appetite and legislative or regulatory action can be brought into balance over the next several years. If they cannot, it will prove increasingly difficult—and expensive—to obtain coverage in California.
Sparking Subrogation
While the causes of the fires have not yet been determined, those answers will help insurers determine whether they can subrogate claims.
Southern California Edison, which was found at fault for both the 2017 Thomas fire and Woolsey fire in 2018, is under scrutiny for its possible involvement in sparking the Eaton fire. Reports show residents saw flames at the base of a tower perched above Eaton Canyon, visible in photos and videos shared online. If the utility’s equipment is found to have caused the blaze, California law requires that the utility pay for the wildfire damages and recover its costs through a regulatory process.
On the Front Lines
In the meantime, California’s independent agents will continue to serve as the human face and friendly ear of our industry to those who have lost so much. Agencies that are members of a network have a competitive advantage in this area, as they have more opportunities to communicate across ZIP codes and learn what’s working for their fellow members in serving clients affected by this unfolding tragedy.
All agents with insureds affected by the devastation, however, have one thing in common: in the months to come, they have the opportunity to show just how compassionate and effective they can be in helping families navigate the slow road to resuming a life of relative normalcy.
And that is no small thing.
Swan is regional executive vice president/West for Renaissance, a network of independent insurance agencies.
My New Markets
Restaurants
Market Detail: Pacific Excess Insurance
Marketing is a wholesaler/ general agent with a specialty in restaurants and access to many standard, surplus lines and workers’ compensation markets. Highlights of Pacific Excess’s offerings include higher commissions; fast quotes; no premium volume requirements; markets for unique risks. Has pen; appointment required. Available Limits: Not disclosed
available), direct bill and flexible payment options; risk management tools; generous commissions. Available Limits: Umbrella limits up to $10 million (additional layers available).
Carrier: Admitted, rated A by AM Best States: Available in all states plus the District of Columbia.
Contact: Christa Van Zant; christa. vanzant@minico.com; 800-447-8383.
Defend the Shield Law
Enforcement
Liability Insurance
Market Detail: Offered by Waters Insurance Network and created specifically for law enforcement officers, Defend the Shield Law Enforcement Liability Insurance offers liability coverage and defense costs, as well as paycheck protection and Death in the Line of Duty coverage. Personal and portable. $1,500 maximum premium; $500 minimum premium; has pen.
Available Limits: Not disclosed.
Carrier: Various, both admitted and non-admitted.
States: Available in Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin.
Contact: Barry Colburn; submissions@ pacificexcess.com; 800-222-5582.
Nonprofit Social Services Insurance
Market Detail: MiniCo Insurance, a leading source for insurance solutions and nonprofit intelligence for brokers and advisors, offers insurance coverage for nonprofits social services. We understand that nonprofits do not live in a vacuum; they follow their mission and rely heavily on the expertise and support of their insurance advisor. MiniCo has been a value provider in creating tailored insurance programs for nonprofits for over 30 years. It’s our mission to keep the needs of our brokers, advisors and their nonprofit clients satisfied, therefore providing peace of mind and security for many years.
Program features: Over 300 eligible classes; exclusive A.M. Best “A” rated admitted paper; separate limits for abuse and molestation; wide array of coverages tailored for nonprofits and social services; includes primary coverage for employed medical doctors; very competitive pricing; dedicated and flexible underwriting; umbrella limits up to $10 million (additional layers
Family Entertainment Centers
Market Detail: Bolton Street Programs’ Family Entertainment Center Safety Association (FECSA) Insurance Program has been providing comprehensive insurance products and solutions to the entertainment and leisure industry for over 25 years. This program provides robust insurance protection to many different types of family entertainment and related attractions, including motorized, movement, games and sport centers. The focus of this program is small to medium size location-based family entertainment centers, indoor and virtual golf, axe throwing, bowling alleys, ice skating rinks, roller skating rinks, miniature golf, batting cages, go-kart facilities, outdoor driving ranges, movie theaters, ride simulators, escape rooms, indoor laser tag, and arcades for building, personal property, and business income. All mobile equipment can be included under our inland marine coverage, such as inflatable rides, concessions, bumper cars, and go-karts. Coverage highlights: Property business income; general liability — $1 million per occurrence / $2 million products, completed operations; excess liability; $1 million employee benefits liability; workers’ compensation; minimum premium $3,500.
Available Limits: General liability — $1 million per occurrence / $2 million products, completed operations; $1 million employee benefits liability.
Carrier: Not disclosed.
States: Available in all states plus the District of Columbia.
Contact: Robert Sperber; rsperber@ sterlingrisk.com; 516-417-5107.
Carrier: SOPAC; non-admitted; not rated. States: Available in all states plus the District of Columbia.
Solutions offers transportation workers’ compensation coverage. Specialty Comp is a national workers’ compensation facility specializing in underwriting for middle market, hard-to-place, high hazard risks in various industries. Its team of skilled and experienced underwriters have access to a broad appetite and underwriting authority, providing leverage in accounts with more difficult underwriting conditions and environments. Underwriters are matched with industry leading safety, loss control and claim service professionals, as well as licensed in-house claim advisors and premium audit experts. Has pen; appointment required.
Available Limits: Not disclosed.
Carrier: Admitted; rated A by AM Best. States: Available in all states plus the District of Columbia.
Contact: Steven Math; steve.math@ specialtycompins.com; 214-453-2964.
Idea Exchange: The Competitive Advantage
Reviewing Historic Predictions
Back around 2013 (the copy I have is not dated, so I might be off a year), McKinsey & Company published a study that caused some angst within the industry. The study, “Agents of the Future: The Evolution of Property and Casualty Insurance Distribution,” posited that agents had long been local, and by inference, small.
By Chris Burand
Then they became controversial in the opening paragraph by noting how carriers and consumers no longer value, at least to the same extent, the historic benefits of the local agent who knew their customers well and generally provided good advice. Knowing customers well had served carriers and consumers well for 100 years.
From a carrier’s perspective, the upfront underwriting these agents provided was literally invaluable when done well. From a customer’s perspective, quality advice
and placing them with the right carrier was also invaluable although less visible.
McKinsey states on the first page this local knowledge had diminishing value because carriers were developing predictive modeling, an early form of AI in many ways, so they didn’t need the upfront underwriting and, therefore, didn’t need to pay for it. And consumers were effectively conditioned that insurance, particularly auto insurance, which is the largest line, was nothing more than a commodity.
The report suggested changes should have already happened, but the authors were seeing signs the changes were accelerating. They stated the following:
“Within five to 10 years:
• Most personal lines and small commercial customers will interact with their agents and carriers across the full range of channels: in-person, through mobile devices, and by phone, Internet and Video conference.
• Carriers will continue to use technology to increase their direct interaction with
the primary customer, delivering more consistent service at a lower cost.
• Agents will be compensated only for the unique value they deliver to the customer and the carrier.
• Carrier agent management models in both the IA and Exclusive channels will focus resources on those agents that deliver profitable business.
• Winning agents will deliver tailored and relevant expertise and excel at multichannel marketing, while increasing their scale and operational efficiency.”
If the authors were surprised these changes haven’t already occurred, they should be floored because the last three outcomes haven’t come close to happening in the 10-year window they forecast!
I don’t possess any true facts showing most personal lines and small commercial customers interact across the full range of channels. It seems to me most people like two channels, not three and not one, and preferences vary materially. I don’t have
any facts to prove I’m right, just anecdotal evidence in working with agents every day. Because preferences vary materially, agents need to be able to work across all modes, but any given customer doesn’t communicate using all modes.
Use of Technology
Carriers are definitely using more technology. Whether the use of such technology is delivering more consistent service at a lower cost is highly debatable. Similarly, whether carrier predictive modeling systems work is also debatable.
To prove the former point, per AM Best’s Aggregates & Averages for the year 2012, the P&C industry’s underwriting expense ratio excluding commission expense was 18.0%. The commission expense was 10.2%. Rent/Equipment was 1.8%, and All Other expense was 4.8%. (I don’t know whether predictive modeling costs are in Equipment or All Other.)
The same report for 2023 (published in 2024) states that underwriting expense excluding commission expense was 14.2%. This is a huge decrease. Commission expense increased to 10.8%. Rent/ Equipment expense decreased to 1.6%, and All Other expense decreased to 3.4%.
Carriers have become, other than commission expense, much more efficient. But has predictive modeling improved loss ratios? Per the McKinsey report, much of the focus on predictive modeling would be personal auto. The five-year private passenger auto liability loss ratio was 68.2% in the year ending 2023. The five-year average ending in 2012 was 65.2%! It’s a good thing carriers saved so much money so they could afford the higher loss ratio.
Predictive Predictions
Two key points McKinsey made have not come to fruition. Predictive modeling is not making the industry’s largest line more profitable from a loss ratio perspective. This is likely due to multiple factors including how the industry rarely manages to make an underwriting profit because of price competition. What may have occurred is that predictive modeling has worked to minimize rate increases. More likely what has happened—and
the evidence is strong for this—is that a handful of carriers have built predictive modeling software that works so well they don’t really need underwriters or agents. But most carriers have failed to do the same. The results I analyze in detail, carrier by carrier, show the ones who have the systems are eating the others’ lunches.
Second, carriers still believe in paying all agents the same regardless of the agent’s true financial contribution. In fact, it is obvious they are paying some distributors even more now, and yet many of those distributors’ value proposition has deteriorated. They’re just large enough to demand more money, and the carriers may pay because they haven’t developed quality systems which otherwise would have met McKinsey’s forecast.
Slow Mo
Another aspect is just how slowly this industry moves. The world may be moving faster and faster, but not this industry. Part of the reason might be how carrier boards of directors are designed and chosen, especially at the mutual carriers. The pace of change may be accelerating now because so many mutuals got caught with their pants down when interest rates increased almost simultaneously with the realization that they should never have been offering property reinsurance—much less property reinsurance with little geographic diversification. But maybe this acceleration is best described as we are now simply moving at a faster turtle’s pace.
And while 10 years later, McKinsey’s fifth bullet point hasn’t really been fully realized, undoubtedly, the winning strategy for traditional agents and brokers is still to be a professional who knows their customers and provides solid, educated advice. I do recommend changing the compensation model so the client pays you rather than the carrier. Note though: if the distributor is a roll-up acquirer, the traditional model is too expensive, which creates an even more lucrative opportunity for the traditional agent with patience.
Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719-4853868. E-mail: chris@burand-associates.com.
2024 AGENTS of the Year
Welcome to Insurance Journal’s Agents of the Year report. This report features 23 agents who defined what it meant to be a successful independent agent in 2024 These agents are more than top sellers. While they have achieved impressive success in sales and demonstrated laudable business intelligence and entrepreneurial skills, they also have shown they have a passion for what they do and a commitment to professionalism and, in many cases, specialization. For them, being an insurance agent is more than a job. Insurance Journal’s Agents of the Year come from all regions of the country, live and work in cities or towns big and small, and know the importance of giving back. Information included in this report was voluntarily submitted online by agents and was supplemented by other public information sources. There are many more agents who deserve mention than are profiled. For more information, contact Andrea Wells at awells@insurancejournal.com.
Curt Zimmerman DiBuduo & DeFendis Insurance Brokers Fresno, California
Curt Zimmerman began his insurance career making phone calls to solicit expiration dates and quote policies in a direct sales role for a small agency in 1998. Today, he manages a book of business with more than $1 million in revenue—and he continues to grow his book at a 12% rate with his team.
Zimmerman is a vice president of Fresno-based DiBuduo & DeFendis Insurance Brokers. When asked what has contributed to his success, Zimmerman explained that he has a systematic approach that starts with a proactive service plan to retain his existing clients. This approach, along with a dynamic service team that supports those clients, helps to grow his book, he said.
“I treat my clients as if I’m a part of their management team and part owner of their business,” he said, “so we’re not a ‘transactional’ business but rather an integral part of their overall operation.” This mindset has helped Zimmerman create long-term relationships, retain clients, and pull in referrals. Prioritizing continuous education also helps him understand coverage—and gaps in coverage—and stay on top of the ever-changing insurance business.
Zimmerman’s proudest professional moments come from disputing audits or claims and having success in helping his clients avoid overpaying on premiums and getting claims paid when justified.
“I enjoy the constant challenge that comes with the insurance business, from securing coverage for business owners to navigating the markets, working with underwriters, and keeping a positive environment with my support team as we manage our client’s needs,” he said.
Jonathan Sage RJS Truck Insurance Services Laguna Niguel, California
Jonathan Sage’s children may not understand the nuances of insurance, but when their dad leaves for work each morning, they know he’s off to save trucks.
Sage is an independent agent with RJS Truck Insurance Services in Southern California.
For the past seven years, his book has been filled exclusively with commercial trucking clients.
The trucking industry is one that he and three generations of his family have been honored to serve for more than three decades.
“Without the industry’s men and women that take up the long days and far miles, our world would look totally different,” Sage said. “These folks need a partner they can trust and that has a deep understanding of their complex needs to take on all that comes our way.”
Sage obtained his P/C license, and joined the family business.
Training from his grandmother showed him the meaning behind “insurance is all about relationships,” he said.
His commitment to his work has yielded success.
Truckers don’t operate 9-5—so neither does Sage.
He’s always on the clock, and he’s confident that his agency’s growth can be attributed to the expertise, honesty, transparency, and care each person receives through RJS.
The agency has had record years in the hardest of times for the market, Sage said.
“The most satisfying part of my job is taking on each new prospect and insured to help them find a solution for the long haul,” he said.
2024 AGENTS of the Year
Rick Neyman Patriot Growth Insurance Services
West Palm Beach, Florida
Five years ago, Rick Neyman met a frustrated CEO who had typical insurance complaints.
Rising premiums. Last-minute surprises. Unfulfilled promises by national brokers. Her claims averaged $1.2 million annually for a fleet of more than 400 sprinter vans. As Neyman explained how he could help, she waved her hand dismissively and said coldly, “I think all you insurance sales people are full of [it]. You all come in and say it will be different, and it never is.”
Three years later, after implementing cameras, telematics, proprietary claims handling processes, and creating a captive, the same CEO thanked Neyman with tears in her eyes at her renewal, which showed a pro forma savings of $1.5 million.
“She told me that I was now part of her team, as in an extension of her executive committee,” Neyman said. “The trust we now enjoy with this once cynical client is one of the most validating experiences I’ve ever had as a professional.”
At Patriot Growth Insurance Services, Neyman specializes in large and complex risks, which represent more than 75% of his book’s revenue. These clients usually average annual insured losses of seven figures — even while excelling at risk management and workplace safety.
He started his career making cold calls and selling $1,500 BOPs. In time, Neyman evolved into a business consultant who specializes in helping great companies manage and finance risk.
“Don’t look for opportunities to sell; look for opportunities to help,” Neyman said. “To make a meaningful impact that can be quantified and communicated clearly.”
Trae Vaughan
Oakbridge Insurance Agency
Chattanooga, Tennessee
Trae Vaughan built his expertise while working with the folks who build up the world.
Vaughan, a partner at Oakbridge Insurance Agency’s office in Chattanooga, dedicates much of his time to serving the insurance and bond needs of contractors, real estate developers, private equity, and other middle-market companies that require high levels of service.
He came to Brock Insurance Agency in July 2009 from Travelers Insurance Company, where he specialized in contractor’s insurance and risk management. In 2021, Vaughan played an integral part in BIA’s merger with Oakbridge, a top 50 regional brokerage business primarily doing business in the Southeastern U.S.
Vaughan also leads BIA’s captive management and consulting practice, where he’s taken a keen interest in helping clients navigate the benefits of alternative risk financing. He was appointed to Oakbridge’s executive advisory board in 2022 and the corporate board of directors in 2024.
“Utilizing resources provided through Oakbridge, including proactive service and claims management expertise, has allowed me to move up market and significantly increase my average customer size,” Vaughan said. “In order to scale a book, you have to be willing to let go of the small stuff and delegate to those who are better suited and more knowledgeable to successfully complete the task at hand.”
He spoke highly of the value of mentorship, saying it is “the most valuable asset in growing in your career. Study your business, align yourself with those you look up to, and emulate the way they work.”
LFG Insurance Services
Des Moines, Iowa
Vance Whitwer has dedicated his life to serving others and protecting their interests.
He’s been a first responder. He spent years as incident commander of a security team for a church. And for more than two decades, he’s helped safeguard lives through his work as an insurance agent.
“I lost my father at the age of 3 from an airplane accident,” Whitwer said. “And after spending years as a firefighter medic and seeing countless accidents, I have no reservations to protect clients from the unexpected.”
Whitwer is the owner of LFG Insurance Services in Des Moines. When asked what has helped his business grow, he pointed to discipline, value assessment, and the importance of building trust and connection with clients.
He also highlighted the SMART goal system, which emphasizes certain criteria to increase the likelihood of achieving goals. Whitwer flies planes in his free time, and his passion for aviation has taught him the importance of careful planning, attention to detail, and a strong commitment to safety.
As an agent, following his system ensures he addresses every insurance need for clients. This led to his proudest on-the-job moment. Years after placing life coverage for a client, she was diagnosed with a serious medical condition. That client called Whitwer before surgery to thank him for the peace of mind he gave her, knowing that her daughter would be provided for financially.
“The most satisfying part of my job is making relationships and [the] sense of accomplishment for hitting goals,” Whitwer said.
Vance Whitwer
2024 AGENTS of the Year
William Denbo
Commercial Insurance Associates
Nashville, Tennessee
As a former college track athlete, Commercial Insurance Associates (CIA) President William Denbo knows the race is won with preparation and determination.
“I take the great sprinter Usain Bolt’s recommendation to heart: ‘I trained 4 years to run 9 seconds, and people give up when they don’t see results in 2 months,’” Denbo said.
“It’s a great takeaway about the power of persistence and patience,” he said. “To succeed in the insurance business, you have to be willing to go the hard yards to make something great happen. I try to remember that every day. It’s also good advice for a new agent entering the business.”
Denbo has been an agent for 18 years, starting as a broker with Besso Limited, then moving to CIA as a principal. He became a managing partner in 2016 before being named president in 2023.
A deep understanding of the industry and the freedom of an independent agency help him build trust with clients. Nashville-based CIA has 30 years of experience delivering risk management services and insurance placement for recyclers, waste haulers, landfills and treatment facilities and vendors.
“I focus on relationships; not transactions,” Denbo said.
In the end, he said, life is about paying it forward.
“I’m committed to building the kind of innovative and dynamic work environment where people can find opportunity and growth,” he said. “If I played a meaningful role in their success, that makes any of my achievements that much sweeter.”
Edward Nagel II Acrisure
Addison, Texas
Edward Nagel II tells younger producers to “stop selling insurance.”
“Instead, focus on the [other] 364 days of the year, meaning the behavior and culture that are negatively affecting the one day of the year [they] focus on, meaning the renewal date,” said Nagel, the energy and marine practice leader at Texas-based Acrisure.
Nagel began his insurance career in 1989 as a medical malpractice underwriter. Seven years later, he moved to the DallasFort Worth Metroplex, where he focused on risk management. There, he changed how he partnered with clients and began providing more consultative services to inform decisions that impacted a company’s risk profile—rather than just focusing on annual renewal premiums. This has allowed Nagel to create out-of-the-box solutions that assist clients proactively.
“By not focusing on selling insurance, it allows more in-depth conversations from the contract clients [we] work under,” he said. “Making sure we have contractual compliance to making sure we have a comprehensive contractual risk transfer program in place allows us to present a better risk to the carrier that provides greater coverage and pricing.”
The most satisfying part of Nagel’s job is twofold: The first is helping clients navigate stressful situations and providing solutions that resolve issues. The second is the mentoring and training he does countrywide to show producers that “when we focus on a consultative approach based in risk management instead of a number, we create greater value for our partnered clients,” he said.
Griffin WHA Insurance
Eugene, Oregon
Jeff Griffin, CEO of WHA Insurance in Eugene, Oregon, does more than insure fire departments, first responders, and other public safety organizations. He joins their communities, advocates for their safety, and partners with them for positive change.
“The best advice I’ve ever received is to never lose sight of the human element in this business,” Griffin said.
“Insurance is about protecting people, their families, and their livelihoods, and that requires empathy, patience, and a genuine commitment to service,” he said.
“A mentor once told me, ‘Success comes when you stop selling and start solving.’ That principle has shaped how I approach every client interaction and how I’ve built lasting relationships.”
Griffin works in risk management consultation for fire departments and other public safety organizations across the region, partnering with departments to improve fleet maintenance safety, fire department ground operations, and firefighter health and wellness. He served as executive director of the Oregon Fire Chiefs Association, division secretary of the Western Fire Chiefs Association, and lead division secretary of the International Association of Fire Chiefs.
He has grown his book of business with a focus on those relationships and truly understanding the unique needs of his clients.
“By specializing in industries like first responders and public entities, I’ve been able to offer tailored solutions that go beyond standard insurance coverage, addressing critical areas like workers’ compensation, employee benefits, and risk management,” said Griffin.
Jeff
2024 AGENTS of the Year
Brian Riemer
Riemer Insurance Group Hallandale Beach, Florida
Brian Riemer and the team at Floridabased Riemer Insurance Group don’t just work with real estate professionals.
“We are deeply immersed in the industry, living and breathing it every day,” he said. “This hands-on expertise enables us to deliver tailored strategies and a higher level of service to our real estate clients.”
Real estate accounts for approximately 50% of his book of business. As CEO, Riemer oversees strategic growth, operations, and a team of more than 80 employees. Riemer Insurance Group has more than $100 million in premiums under management.
Riemer earned his MBA from The Wharton School at the University of Pennsylvania, where he focused on real estate and entrepreneurship. He graduated cum laude from Harvard College with a bachelor’s degree in economics. His professional background includes successful tenures at Audax Group and Peter J. Solomon Company.
The most helpful factor in growing his book has been the mentorship and support from the incredible team around him, Riemer said, adding that he’s been fortunate to learn from his father, Stephen, and his brother, Paul, whose leadership and industry knowledge have been invaluable.
The best advice he’s received is to always put the client first and to build relationships based on trust and genuine care.
“I believe I am a top agent because I always put my clients first,” Riemer said. “Whether it’s tailoring solutions to meet their unique needs or advocating for them every step of the way, my clients know they can trust me to act in their best interests.”
“Much like a quarterback has no option but to get back out on the field after throwing a pick six, producers have to jump right back on the horse after hearing ‘no’ time and time again,” said Casey Parisoff.
“Brush all the ‘nos’ off until you get to a ‘yes.’”
This simple philosophy—and the daily goal of outworking his competitors—has long been the successful strategy for growth for Parisoff, chief surety officer of the construction division at POWERS Insurance & Risk Management in Clayton, Missouri.
Parisoff graduated with a finance degree in 2005 and was recruited by a regional bond company to underwrite “main street” construction. With his experience, he grew the surety department at an independent insurance agency, bought the Kansas City operations, and started his own agency.
Within five years he and his team had quadrupled in revenue, winning Kansas City’s Fast 100 Award. In 2019, Parisoff sold his interest and joined POWERS.
Parisoff has held every officer position within the Surety Association of Kansas City including president in 2016. He is also a member of Contractor Resource Partners, which helps small, disadvantaged businesses become better business owners.
“The proudest moment I have as an agent is any time I hear what our involvement meant to our client,” he said.
“Watching a company grow from sweating our ability to get their $200,000 bonded job to a no-sweat approval on a $20 million bond is why I do what I do.”
Cheryl Durham
Ashton Insurance Agency, LLC
Saint Cloud, Florida
In her previous career working in landscape maintenance and design, Cheryl Durham was frustrated by the process of securing builders risk coverage.
“That experience opened my eyes to the gaps in the industry and the need for knowledgeable, customer-focused insurance professionals,” Durham said. She moved into insurance in 2012, and in 2019 she established her own agency, Ashton Insurance Agency, LLC, in Saint Cloud, Florida.
Today, Durham specializes in construction management, builders risks, and contractors liability insurance, including comprehensive coverage for project delays, property damage, liability exposures, and specialized endorsements for large-scale construction projects.
Running her own agency allows Durham to prioritize the needs of her clients without compromise.
“What sets me apart is my commitment to educating clients and simplifying the complexities of insurance, ensuring they feel confident and secure in their coverage decisions,” Durham said. “My success is rooted in forming lasting relationships with my clients and peers, treating every interaction as an opportunity to make a positive impact.”
Advice she received as a new agent helped form her philosophy: “Don’t be afraid to save a client money. It pays off in the end.”
Durham said, “By focusing on their needs and finding ways to provide real value—whether through cost savings or better coverage options—I’ve earned their loyalty and built a reputation for being a caring and dedicated agent.”
Nothing great comes without risk. It’s a lesson Chris Sullivan learned early in his career, and one he passes on to the agents he mentors.
“I understand calculated risk as a prerequisite to any great achievement and feel it is my call to empower others in strategic execution of their dreams,” said Sullivan, commercial practice leader at POWERS Insurance & Risk Management in Clayton, Missouri.
Sullivan initially intended to go into financial services. But he graduated college in 2009, during the 2008 economic crash, and instead took a job in property and casualty insurance with a captive writer. That temporary solution became a discovery of passion.
Four years later, he joined POWERS as a commercial risk advisor, focusing on the agency’s hospitality practice.
“The Powers family took a risk on me,” Sullivan said.
After five years of mentorship from agency principal JD Powers, Sullivan was ready to launch his own practice and established the agency’s cannabis division in 2019.
As POWERS hires advisors and launches satellite offices across the U.S., Sullivan now finds the most rewarding part of his job is developing his sales team. He invests the support, energy, and opportunity he received into the next generation of professionals.
“By helping them achieve their goals, I’m not only fostering their growth but also nurturing a culture of collaboration and success,” Sullivan said. “Witnessing their progress and accomplishments is truly my proudest moment as an agent.”
Christalyn DeLouise
American Insurance Brokers Inc.
Mandeville, Louisiana
Christalyn DeLouise, an agent, office manager, and sales manager with American Insurance Brokers, Inc., started working at the agency almost 15 years ago as a customer service representative. But she quickly set her sights on sales.
After a year, DeLouise was promoted to the renewal department and started a small department for boat insurance. After two years in renewals, she moved to new sales and has consistently been the top leading sales producer.
The Mandeville, Louisiana-based agency is small but has endured for almost 40 years, specializing in commercial trucking.
“The insurance industry is constantly changing as well as the markets and pricing,” she said. “We truly get to know our customers and learn even the smallest details in the industry so that we can be most helpful.”
DeLouise has grown most of her business by referrals and word of mouth.
“The best advice I could ever give is just stay sharp and be kind,” she said. “People will remember the ones who helped them and helped guide them.”
Guiding customers through the insurance process to improve their lives and work is what makes DeLouise love the industry.
“Some of our clients will call in and not know a thing about the industry, and I truly help them understand and guide them,” DeLouise said.
“It’s so fulfilling when they call later on and thank me for helping them, or they were able to help someone else because of me.”
Bar and Restaurant Insurance Phoenix, Arizona
David DeLorenzo isn’t afraid to get his hands dirty if it means better serving his clients.
The CEO and owner of Bar and Restaurant Insurance has not only focused his career on restaurant and bar insurance for over 25 years but has also owned 13 restaurants and is a silent investor in four restaurants in the Phoenix metro area.
“I am very dedicated not to just insurance but the craft of hospitality and the community of it,” DeLorenzo said. “I have built relationships for 25 years with clients and now friends.”
DeLorenzo has built a reputation for serving the best interests of his clients in both insurance price and coverage. Working with restaurant owners as an investor gives him the inside track on the changing needs and gaps in the coverages for the hospitality industry.
“Be authentic, always,” he said. “If you don’t know the answer, don’t pretend to know. Go learn the answer and come back to the person asking. Always work on educating yourself to understand the marketplace and what is hot and not for the products you are selling.”
DeLorenzo credits working with his father and his mentorship for helping him build his success. “At 50 years old, I feel I’m just getting started!”
“I love being a niche broker who has made great waves in not just the insurance industry but the hospitality industry,” DeLorenzo said. “Helping two giants be able to serve each other and work together. I am also working on starting my own insurance company as well. The sky is the limit!”
David DeLorenzo
2024 AGENTS of the Year
Jacqueline Morgan
The Castle Insurance Agency
Warrenton, Virginia
Last summer, Jacqueline Morgan decided it was time.
Eleven successful years at GEICO showed her the insurance industry ropes. And in August, she made the leap and launched The Castle Insurance Agency in Warrenton, Virginia.
Morgan is passionate about making insurance simple and tailoring it to her customers’ needs. She implements a concierge-style approach to support smalland medium-sized business owners in risk management.
“Experience in sales, service, and underwriting allows me to better counsel customers [and] develop strategy for 95+% retention as we continue to scale and grow, as well as provide customers with peace of mind,” Morgan said.
She explained that her experience is rooted in property protection, particularly homeowners and commercial, which make up 90% of her book of business. Within commercial, she focuses on lessor’s risk, owned buildings, contracting classes, and overall risk management for small business owners.
At her agency, choosing the right network gave Morgan the ability to partner with insurance carriers she knows and has worked with for years.
“Carrying this product knowledge forward into this journey has been critical in my success for counseling my customers, providing expert guidance, and putting retention at the forefront of the agency’s growth,” Morgan said.
Jeff Gloriod Higginbotham
Ft. Worth, Texas
Jeff Gloriod’s secret to success? Pick a niche and become an expert.
“Don’t try to know everything about insurance; focus on a specific segment and learn everything you can about that subject,” said Gloriod, who specializes in private client personal lines. “Be willing to put in the work and be consistent.”
Gloriod has been an agent for 22 years and currently serves as a managing director at Higginbotham in Fort Worth, Texas. He got his start at Iscential, a Higginbotham partner, while still in college.
“I trusted the process and had great leaders in Leash Yu and Warren Barhorst to mold me into the agent I am and grew to the agent I have become…hungry, ready to build, and at this point older but experienced.”
His role has grown exponentially over the last two decades.
“We opened virtual locations in 25 states, and I am now licensed in 40 states with the idea that if I am going to target a niche, I need to be ready for anything,” Gloriod said. “I learn everything I can to advise my clients and gain the confidence of my clients.”
Building trust comes from experience and the connections he has built on both sides of every relationship, Gloriod said.
“(I know) my customers are insured with private client carriers and so have some of the best coverage available and some of the top carriers in the industry.”
Kelly Rulon C3 Insurance
San Diego, California
If Kelly Rulon could offer 24/7 office hours, she would.
“My most satisfying part about my job is my clients,” Rulon said. “I truly enjoy working with them day in and day out, and if given the opportunity, I would hang out with them on the weekends and in my free time.”
“The relationships that come with insurance is a special thing,” she said.
Rulon now leads the retail and apparel division for C3 in San Diego. She started in personal lines for high net worth but “soon realized that commercial insurance is where all the action is at," she said.
She moved to C3 last March.
The key to success has been advocating for her clients, Rulon said.
“I understand how difficult it is to own and operate your business, and I stand up for my clients in all dealings with the insurance carrier,” she said.
“What often times seems like chump change to a large Fortune 500 carrier is a huge line item on my company’s P&L.”
She also supports other women in the industry.
“The insurance industry is a very male-dominated industry, and for so long I have often been the only female at the table, which I have been okay with,” Rulon said. “It is my goal to foster and help grow strong women in the industry but also in my day-to-day dealings.”
2024 AGENTS of the Year
Mike Lane
Reagan Companies
Marcellus, New York
Mike Lane has seen all sides of the insurance industry and found his space in captive insurance.
Lane started his career as a workers’ compensation adjuster about 15 years ago. Five years later, he moved to the independent agent side, but he went back to claims after four years.
One year later, he missed the clients’ side and took an opportunity with Reagan Companies in Marcellus, New York.
“With the mentorship of our CEO Ned Reagan, I was able to get traction focusing on captive solutions and larger employers, and transitioned to full-time production three years ago with tremendous success.”
Lane was named a Risk & Insurance Power Broker in 2022 and a CNY Business Journal 40 under 40 honoree in 2023.
His expertise brought him the proudest moment of his career with Reagan.
“I was able to get an experience rating revision for a client of ours and the Rating Board actually changed the rule for this particular claim scenario, meaning my work was actually precedent setting.”
Lane attributes his success to Reagan’s mentorship, being given the time to develop as an agent, and working for an agency that is disciplined in pursuing the right clients.
“We know what we’re good at, we direct our resources in that direction, and we compete well for those clients,” Lane said. “It allowed me to be focused and targeted in my prospecting and confident we could deliver a good result for those prospects.”
Ryan Steinberg
Texas Prime Insurance Agency Bellaire, Texas
When Hurricane Harvey tore into Texas in 2017, the natural disaster brought sustained winds of 130 mph and dumped feet of rain on the Houston area. Ryan Steinberg lost power both at home and his office during the catastrophe.
But that didn’t stop him from being a light for his clients.
The Liberty Company Insurance Brokers Woodland Hills, California
For Steve Rivera, insurance is about the joy of helping others.
“I love serving and problem-solving for others,” he said. “There is an immense amount of joy and excitement that I feel knowing that I can help make a difference in someone else’s life.”
Steinberg, the sole owner and agent at Texas Prime Insurance Agency in Bellaire, worked remotely from family members’ homes to assist clients in filing claims, reviewing policy details, and simply being a shoulder to lean on. He was there for them again when Hurricane Beryl hit in July.
“I feel proud in what I provided for my clients during one of their most difficult times,” he said.
Steinberg specializes in servicing clients with high-value properties and bundling custom policy packages for them. Highvalue clients represent roughly 75% of his personal lines business. He said his agency is also knowledgeable when it comes to assisting small businesses.
“I provide knowledge, expertise, and a truly personal and custom experience with the top level of service,” Steinberg shared. “There is a reason we beat out our competition time and time again, and that is the level of care my clients feel when they work with me and Texas Prime Insurance.”
The best advice Steinberg has received is that insurance is a tough industry, and success cannot be achieved overnight. Through hard work and dedication, “you will be able to develop and achieve your goals over time,” he said.
Rivera, a partner at The Liberty Company Insurance Brokers, Inc., in Woodland Hills, California, has had a 20-year career as a producer. Today, he specializes in private client placements, commercial, and life insurance.
The keys to success? Having the right team, staying organized, and being transparent.
“Transparency is huge, and proactive communication with clients about industry changes that affect them are also important to keeping service levels high,” he said.
Rivera said he is also always reachable.
“In our job, we are often needed during a time of crisis, whether it is a routine car accident, a devastating home insurance claim, or the death of a family member,” Rivera said. “I answer my phone, always, or at least let clients know that I will call them back within a given time frame, even after hours.”
“Being able to deliver solutions, comfort, and care during these times is the best part of our jobs,” Rivera said. “Being able to help rebuild someone’s home, deliver a life insurance check to a grieving family, or helping someone get their vehicle repaired.”
“There are few things on this earth that rival the feeling of being able to serve a client/family during a difficult time of need,” he said.
Steve Rivera
2024 AGENTS of the Year
Cameron Annas Granite Insurance Granite Falls, North Carolina
Success in the insurance industry takes hard work and persistence, but it can also be fun and games, said Cameron Annas.
Annas is CEO of Granite Insurance in Granite Falls, North Carolina, and leader of the agency’s adventure and entertainment division.
“When you think of insurance, this truly is the fun and exciting side of insurance,” Annas said. “Each day, I get to strategically help organizations in the adventure and entertainment world achieve their goals and dreams.”
The division was founded in 2014 and now serves more than 400 adventure and entertainment clients across the U.S.
“Helping other people or organizations be successful is a passion of mine,” he said.
“As a leader and entrepreneur, my goal in every situation is to surround myself with a team of highly capable individuals who are continually pushing the envelope to create unique solutions.”
Annas’s best words of advice?
“Specializing until you are special!”
“Specialize, specialize, specialize!” Annas said. “If you can’t articulate what makes you different from 32,000 other independent agents, then you’re just another insurance agent stopping the business owner from working on/in their business.”
Specialization helps you bring more value to clients—not just through insurance but because you are knowledgeable about their industry, the latest news, trends, and opportunities. That depth of knowledge makes your relationship and guidance more valuable, Annas said.
“We don’t just broker solutions, we create solutions,” he said.
Rebecca Cooper Harbour Insurance Naples, Florida
As a Florida insurance professional, Rebecca Cooper is ready to roll with the weather.
The day before Hurricane Ian hit in 2022, her team flew to Nashville to work as the storm made impact. They raced home after three days when power was restored.
“Most of my clients live on or next to open water,” she said. “It was devasting.”
However, Hurricane Irma (2017) had prepared her team to work under rough conditions after a tornado tore off the agency’s roof.
“We were out of our building for 10 months,” Cooper said. “We did not miss a day of work. We just kept moving forward every day.”
Cooper has been in the industry for 25 years and is now a partner at Harbour Insurance in Naples, Florida, focusing on high-net-worth families.
“I understand the needs of the affluent, and I give lots of consulting advice to protect my clients,” she said. “My clients view me as part of their family team who helps them achieve their goals.”
Cooper helps clients with coverage for nannies, flood exposure on barrier islands, fine arts exposure, and travel. She once set up a wedding policy for clients whose big day was disrupted by a hurricane. The coverage allowed them to quickly move a 250-person wedding to Pittsburgh and rent a 30-person private plane to get there.
Cooper’s advice to young agents is to be open-minded and listen.
“Go to as many meetings with company reps, other mentor agents, and conferences as possible and listen,” she said. “You just never know [if] what you learn will help you as you develop.”
Richard Costante Responsive Insurance Naples,
Florida
Richard Costante knows it’s OK not to have an answer.
He also knows it’s not OK to not know where to find the answer.
“For new agents, I tell them to ask questions,” said Costante, an agent at Florida-based Responsive Insurance. “I don’t know what you don’t know until you ask me a question.”
Costante specializes in coastal homes and homes on Marco Island, the largest of the Ten Thousand Islands off the coast of Southwest Florida. His referral network has grown organically since he joined Responsive Insurance in 2019. He began with a few realtors, and that led him to become an affiliate member of the local board of realtors.
“From there, I sponsored classes and got in front of as many realtors as possible,” Costante said.
He was named the Realtor Affiliate of the Year in 2020, and in 2023, Costante was honored as the board’s unsung hero. He has since begun expanding to other local realtor associations and sponsoring classes while continuing to grow referral partners with multiple realtors.
Costante loves knowing that when clients hang up the phone with him, they have more knowledge of insurance and trends that will make them smarter consumers.
“For the mid-market agency (still an important part of the independent agency landscape and valuable to insurance consumers), Rich works very well bringing a producer mindset to serving the middle market,” said Matt Nance, owner and principal agent of Responsive Insurance.
“He helps lead our personal lines sales team and is a great resource internally.”
Spotlight: Agribusiness Farmers Turn to Airbnb, Corn Mazes to Outlast Agricultural Downturn
By Heather Schlitz
Adead-end dirt road cutting through rural Wisconsin leads to a pasture dotted with shaggy-coated Highland cattle, fluffy Icelandic sheep, and a vintage Airstream trailer that farmer Brit Thompson turned into an Airbnb to capitalize on an explosion of urbanites looking to spend time in the countryside.
Her guests, mostly Chicagoarea professionals, offer a steady flow of income in an increasingly unstable agricultural economy.
Thompson, who also raises animals for meat at her farm, Pink River Ranch, is one of many farmers turning to the $4.5 billion agricultural
tourism industry, according to US Department of Agriculture (USDA) data, and offering activities and overnight stays as consumer demand for rural experiences grows and farm income declines.
Farmers whose crops are used to make food, feed livestock, and produce vegetable oils are struggling to turn a profit after corn and soy prices sank to four-year lows in 2024.
Revenue from Thompson’s Airbnb has helped her endure volatile commodities markets and far outpaced what she made from selling beef and lamb to restaurants and directly to consumers, she said. Free-roaming tabby cats on her property are now accustomed to the sound of guests’ tires crunching on the gravel
driveway and come running toward those bringing in the extra income—and the extra affection.
The guests arrive nearly every weekend during her peak season, drawn by the area’s spring-fed and trout-rich streams, forested hiking trails, and unpolluted night skies. Thompson’s bookings soared as nearby cities shut down during the pandemic.
Agritourism boomed during COVID as people chose to vacation on farms and in rural areas, drawn by the promise of socially distanced fun in the countryside. The industry has continued to grow since, driven by increasing numbers of city dwellers seeking peace and solitude and farmers seeking additional ways to infuse their
farms with much-needed cash.
“Now that we’re back to normal, people are still remembering those experiences, and they’ve brought those activities into their family traditions,” said Suzi Spahr, director of the International Agritourism Association.
Nationally, about 7% of farms offer agritourism opportunities, which also includes sales of farm products to visitors, said Lisa Chase, an extension professor at the University of Vermont. Many increased their revenue by $25,000 to $100,000 per year through agritourism enterprises, and some farms can make upward of $1 million a year from running bed-andbreakfasts, pick-your-own apple orchards, and other farm
experiences, she said.
The number of farmstays, an accommodation at a farm, listed on short-term rental platforms in the US increased by 77% over the past five years—roughly twice the increase in overall listings, data firm AirDNA said. Airbnb, as well as popular campsite booking websites HipCamp, Harvest Hosts, and The Dyrt, also said their platforms have seen substantial increases in farmstay listings over the past few years.
Lean Times
Agritourism dollars are a welcome boon in the face of low crop prices, high interest rates, and steep costs for seeds, fertilizer, and labor, farmers and industry experts said. Farm income has dropped 23% from 2022 in one of the biggest declines in history, according to the USDA, and the American Farm Bureau says the agricultural economy is in a recession.
While US farm income is expected to improve this year, the upturn is largely due to federal government aid. Income from selling crops has continued to decline.
This year could bring further financial pain for farmers if trade wars with Canada, Mexico, and China are prolonged. President Donald Trump announced tariffs on goods from the three countries on February 1 but later offered a 30-day reprieve to Canada and Mexico after those countries offered some concessions.
“We’re able to weather some of these tighter or negative margin years because we’ve diversified the way we earn money,” said Kaylee Heap, 35, co-manager of Heap’s Giant Pumpkin Farm, a sprawling
corn and soybean farm in Illinois.
“It’s the reason we diversified. If we just focused on row crops, we’d be having a different conversation.”
In the fall, Heap’s customers can pick sunflowers, mums, and pumpkins; bump along on hayrides; and wander through a corn maze. The farm also produces commodity corn and soy, often for international export.
Not all farms are suited for tourism. Some have inaccessible locations or owners who are unwilling to open their property to strangers. Insurance and compliance with government regulations can also be costly. But income from recreation and tourism can help families
maintain ownership of their farms, pay off debt, and provide jobs to younger generations, who sometimes prefer curating Airbnbs and building websites over monitoring soil moisture and grain futures prices, farmers said.
“You cannot survive as a family farm only farming,” said Catherine Topel, 56, a North Carolina hog producer who hosts an Airbnb cabin and campsites through HipCamp.
“The cabins, the camping—it makes you sustainable and resilient in hard times, and it gives you flexibility to enter into other enterprises instead of toeing the line of what your dad did and what your dad’s dad did.”
The desire to raise children
in a rural setting and share their agricultural lifestyle with visitors also motivates farmers to open their property to the public, farmers said.
Thompson, 33, says she enjoys teaching guests about sustainable grazing, as well as fishing from her riverbank with her five-year-old daughter, who reels in fat catfish with a miniature hot-pink fishing rod.
“The younger generation finds the farm doesn’t have to be this long litany of depression and bad prices,” said Ryan Pesch, an extension educator at the University of Minnesota.
“They say: ‘Why don’t we do this other thing?’ They see opportunities and entrepreneurship,” he said.
Copyright 2025 Reuters.
US Chicken, Pork Plant Workers Face Higher Health Risks, USDA Studies Confirm
By Tom Polansek
Workers in US chicken and pork plants face higher risks than other manufacturing workers for musculoskeletal disorders such as carpal tunnel syndrome, according to two studies the US Department of Agriculture issued in January.
The findings highlight health concerns for employees who often perform repetitive tasks and use dangerous equipment, including sharp knives, to process meat for consumers. Those roles are disproportionately filled by immigrants and undocumented workers.
More than half of all US meatpacking workers are immigrants, compared with
about 17% of the entire workforce, according to the Center for Economic and Policy Research, a think tank.
A USDA-funded study of 1,047 poultry workers at 11 plants operating at faster processing speeds found that 81% of employees were at increased risk of musculoskeletal disorders. Researchers compared their risk for carpal tunnel syndrome to another study of 4,321 manufacturing workers.
Poultry workers who handled more chicken per minute faced higher risks than those who worked at a slower rate, though there was not an association with faster continued on page 48
Idea Exchange: Is It Covered?
Logic & Language and Forms & Facts Words Matter
In my September 2020 column, I wrote an article called “Is It Covered?
The Unimpeachable Case of What ‘Are’ Is.”
By Bill Wilson
The article was about a claim involving a Property Not Covered category for damage to vehicles in ISO’s CP 00 10 Building and Personal Property Coverage Form.
The primary learning point of that article was that coverage can hinge on the meaning and context of a single word. In the claim addressed in that column, coverage, in fact, hinged on the tense of a verb. Over the years, I’ve had scores of claims where coverage depended on the meaning of one word in an insurance policy. But, as best as I can recall, that was the first time I had gotten an inquiry about that particular policy provision in the ISO CP 00 10 … until recently.
A couple of months ago, I received an email from an agent about a claim denial he believed was improperly denied. The agency insures a trailer manufacturer. They receive an assembled chassis from a third party and then assemble the tires, wire the electrical, etc. The unassembled trailers are stored outside their building until the assembly process begins.
Several of the unassembled trailers were damaged by Hurricane Helene. The unassembled trailers were insured as business personal property under an ISO CP 00 10 10 12 - Building and Personal Property Coverage Form, and the attached covered perils include windstorm. However, the independent adjuster denied the damage based on this provision in the Property Not Covered section of the CP 00 10:
Vehicles or self-propelled machines (including aircraft or watercraft) that:
(1) Are licensed for use on public roads; or
(2) Are operated principally away from the described premises.
This paragraph does not apply to:
(a) Vehicles or self-propelled machines or autos you manufacture, process or warehouse;
(b) Vehicles or self-propelled machines, other than autos, you hold for sale;
(c) Rowboats or canoes out of water at the described premises; or (d) Trailers, but only to the extent provided for in the Coverage Ex tension for Non-owned Detached Trailers…
The first cardinal sin of this denial is the failure of the adjuster to explain WHY the
damage is not covered. Simply listing an exclusionary provision is not an adequate, nor proper denial, unless the adjuster also explains HOW such insurance contract language serves to exclude coverage given the facts and circumstances of the occurrence. California has codified this premise under Title 10, §2695.7 – Standards for Prompt, Fair and Equitable Settlements where paragraph (b)(1) of this regulation says [emphasis added]:
Where an insurer denies or rejects a first par ty claim, in whole or in part, it shall do so in writing and shall provide to the claimant a statement listing all bases for such rejection or denial and the factual and legal bases for each reason given for such rejection or denial which is then within the insurer’s knowledge. Where an insurer’s denial of a first party claim, in whole or in part, is based on a specific statute, applicable law or policy provision, condition or exclusion, the written denial shall include reference thereto and provide an explanation of the application of the statute, applicable law or provision, condition or exclusion to the claim. Every insurer that denies or rejects a third party claim, in whole or in part, or disputes liability or damages shall do so in writing.
The second issue with this denial involves the adjuster’s apparent lack of understanding of how exceptions in a contract work. For example, exclusions in a policy don’t matter if the insuring agreement to which the exclusion applies is never triggered. That’s what defeated most COVID-19 business income claims. It didn’t matter that there was no specific exclusion for alleged viral contamination because coverage was never triggered when the insured could not prove that the alleged contamination involved direct damage to tangible property.
A corollary to this when it comes to insurance contracts is that a cover-
age-granting exception to an exclusion is not triggered unless the exclusion itself applies. In the present case, the adjuster pointed out that the (d) exception to the exclusion did not grant coverage because it applied to nonowned trailers only. However, that was immaterial to the claim because the vehicle exclusion was never triggered in the first place. Note that the exclusion only applies to vehicles that:
(1) Are licensed for use on public roads; or (2) Are operated principally away from the described premises.
The trailers in question were not licensed for road use, nor were they operated at all on or away from the described premises. Therefore, the exclusion was not triggered and, as a result, exception (d) was immaterial. That sends us back to the primary insuring agreement in the policy for business personal property.
The vehicles are simply the insured’s stock in trade or raw material in their assembly process. If you look at the insuring agreement for Your Business Personal Property in the CP 00 10, you’ll find that it includes “stock,” which is defined in the form as:
“Stock” means merchandise held in storage or for sale, raw materials and in-process or finished goods, including supplies used in their packing or shipping.
In almost every claim, there is a learning opportunity. In the present case, in addition to the premise that exceptions to policy provisions don’t matter unless the provision itself applies, another learning point is something I harp on repeatedly: Insurance is NOT a commodity.
For example, consider the following two definitions, the first from ISO’s CGL policy and the second from a non-ISO CGL policy [emphasis added]:
“Coverage territory” means…All other parts of the world if the injury or damage arises out of…Goods or services made OR sold by you in the territory described in a. above;
“Coverage territory” means…All other parts of the world if the injury or damage arises out of…Goods or services made AND sold by you in the territory described in a. above;
Note that there is a difference of only one word between these definitions, but that one word makes a huge difference in coverage.
Words matter.
Wilson, CPCU, ARM, AIM, AAM is the founder and CEO of InsuranceCommentary.com and the author of six books, including “When Words Collide…Resolving Insurance Coverage and Claims Disputes,” which BookAuthority ranks as the #1 insurance book of all time. Email:Bill@InsuranceCommentary.com.
MANAGE RISK. CHOOSE A WSIA MEMBER.
Some decisions are too precarious to take on alone. Sometimes you need a partner who can help you create the right solution for your client’s risk, while minimizing yours. In fact, it’s so cost-effective that a recent analysis by Conning, Inc. concludes that wholesale distribution does not increase the cost to the insured. That’s a good decision.
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Idea Exchange: Agency Management
Reflections and Observations: 5 Takeaways from 2024 to Build a Better 2025 and Beyond
Last year seems like ancient history. Most people seem to have adjusted to the daily whirlwind of information, activity, and change peppering our businesses and lives. But, with all that activity, it has become difficult for many to find the time to simply think about what transpired during the last 12 months.
By Tony Caldwell
It is the reflection on our experiences and the harvesting of the lesson within those experiences that allow us not only to accelerate the speed of what we do but the effectiveness of how we do it.
As I reflect on 2024, I have five distinct observations to share.
1. Some things last longer than you think.
All my career I’ve heard prognosticators say some version of “it won’t last long.” First, it was the near depression my part of the country—the Southwest—experienced during the 1980s and 1990s. Later, the tech boom hit and seemed like it would go on forever. Most recently, it has been the hard market in property insurance and particularly personal lines.
Back in the middle of 2022, insurance carrier executives, large distribution leaders, and even some agents predicted the tough market would be over by the end of that year. I disagreed. I felt alone in my thinking as I considered how slowly carriers, regulators, and balance sheets adapt to dramatically changed circumstances.
Unfortunately, I was correct, and the market troubles not only lasted into 2023 but continue to hamper us as we enter 2025. Despite my conservative approach, I failed to see just how long, dramatic, and persistent this market cycle would be.
What I’ve learned is that those who adapt to changing circumstances thrive, while those who do not fail. This seems obvious, but I have watched several
agencies rack up record sales and profits in the same period where we have also seen large numbers of agency owners admit defeat and shutter the business.
I cannot predict when the hard market will end, but I do know that it will change. Agency principals should be prepared to pivot to new carriers, sales tactics, and operational ideas to take advantage of whatever the broader economy holds for us.
2. Communication is critical to resilience. The hard market has been tough on everyone. Consumers are frustrated, angry, and scared. For what may be the first time
in my career, I read regularly about the impact insurance costs are having on the inflation rate. The price increase is at a different level than any other time I can remember.
At the same time, agency employees’ frustration levels have never seemed higher. It’s not just the daily deluge of calls from agitated customers, but perhaps even more, their feelings of helplessness to respond.
The teams at our carrier partners have their share of difficulties to navigate as well. It gets old hearing nothing but bad news. No one enjoys cutting loose agency relationships that in some cases are
decades old, and no one wants to worry about their job.
Despite all of this, our teams keep coming to work. And they continue to search for solutions while we support each other. I have seen amazing resilience, and I have never been prouder of the people who make up our industry.
Our success lies in communication. We have focused efforts on communicating the big picture to every constituency while also working to inform each party on options. The natural optimism with which our industry is imbued is the icing, helping us to keep teams motivated, partners interested, and clients comfortable.
3. Nimbleness is essential to respond to life’s unpredictable nature.
While our industry has had challenges, the larger economy, the political climate, and even world affairs have seen an unusual level of volatility in the past year. It’s been a wild political year; consumer sentiment has been largely negative, and it seems like a new war is in the offing nearly every week. It seems that nothing is settled.
‘What I’ve learned is that those who adapt to changing circumstances thrive, while those who do not fail.’
This volatility is deeply unsettling to many people. However, I have seen the calming effect of conversations with employees, partners, and others when they are reminded that our industry, and what they do in it, is critical and stable. They may feel nervous or worried until they understand their job is valued and secure.
This is a message we as leaders need to repeat as a mantra. The truth is when things are unsettled, people need our industry more than ever. That is what I think it really means to be a “trusted advisor.”
4. Agencies are and remain incredibly valuable.
There is always an inverse relationship between income or EBITDA multiples, which tend to drive business valuation, and interest rates. As rates rose a couple of years ago, I expected the high-water marks we had seen in agency transactions to recede significantly. While there have been fewer transactions, agency valuations have remained higher than expected.
This is true because there are fewer sellers, but also because agency short-term income and profit outlooks have been driven higher by the hard market. Adding to the agent value proposition has been the fact that investors continue to see security and safety in our repeatable sales and client relationships.
As rates drift lower (I think the floor
might be reminiscent to pre-2008 levels), values should remain high as it becomes easier for investors to pay more and business fundamentals remain strong. Agency principals must invest in growth. You will net not only an income increase but an increase in asset value as well.
5. Planning has never been more important.
It’s easy in volatile times to think business planning is a futile task. After all, plans are often based on assumptions, and those assumptions are often less reliable in turbulent periods. But successful companies show us that effective planning allows the team to think through contingencies and prepare for them. As waves rock the boat, the team knows how to navigate the stormy seas.
In 2024, I observed that businesses with thoughtful business plans, coupled with creative thinking, enjoyed a stronger year than some of their most optimistic counterparts.
Agency principals should double down on planning as we continue to navigate uncertain times. My column last month took a deeper diver into how agency principles can do just that.
A Year in Review
So, I’ve learned some things over the last year about planning, patience, pivots, people, and even perpetuation.
The writer of scripture’s Book of Ecclesiastes said thousands of years ago, “There is nothing new under the sun.” For me, much of what I learned in business in 2024, I already knew. In some cases, I may have had to re-educate myself. In others, I just needed to remember what I had learned in the past. But as I look to the future, I think it’s useful to reflect on another line in that ancient verse, “What has been will be again.” With that in mind, I’m thinking now about how to use what I learned in 2024 to improve results in 2025. I hope you’ll join me.
Caldwell is an author, speaker, and mentor who has helped independent agents create more than 250 independent insurance agencies. Website: www.tonycaldwell.net. Email: tonyc@oneagentsalliance.net.
Idea Exchange: Emerging Risks
3 Emerging Risks to Watch:
Social Inflation, Electric Trucks, Virtual Currencies
The business environment is constantly evolving, with each new development and innovation offering a unique variety of potential risks and rewards. Broad, systemic challenges may sometimes create unexpected obstacles, while technological transitions and advancements can often create as many hurdles as they do opportunities.
By Lee Shavel
The systemic implications of social inflation, in addition to the potential risks posed to businesses by the shift toward electric vehicles and virtual currencies, are three of the emerging risks we’re focused on this quarter.
A Social Dilemma
Social inflation often refers to the rising costs of insurance claims that exceed economic inflation or similar economic drivers. It often encompasses the impact of rising litigation costs as well as broader definitions of liability and more plaintiff-friendly legal decisions.
According to one report, the annual rate of social inflation rose by more than 5% every year between 2017 and 2022, outpacing standard economic inflation, which grew by 3.7% in that same stretch of time.
In 2024, Verisk collaborated on a report with the RAND Corporation exploring whether empirical trends in litigation rates, trial awards, and insurance claim payments are consistent with the expected effects of social inflation. Looking at insurance claim payments from Verisk’s ISO data, in addition to analyzing litigation rates and trial awards from court data through 2019, the report found compelling insights:
• Tort case filings per capita increased about 10% between 2012 and 2019.
• Plaintiff win rates in cases that reached verdict increased from 53% to 64% between 2010 and 2019.
• Trial awards per plaintiff in Personal Injury and Wrongful Death (PI/ WD) cases grew 7.6% annually, after adjusting for inflation, between 2010 and 2019.
The use of third-party litigation funding (TPLF) is widely believed to be one of the main catalysts of social inflation. Having first gained traction in the U.S. around 2010, this practice of third parties or “funders” who are not a party to a lawsuit—often hedge funds, small investors, and foreign entities, to name a few—has grown into a more than $15 billion industry in the U.S. And though no federal rules explicitly require the disclosure of TPLF funders, some states have been more active in addressing this issue.
Our recent research found that legislation enacted at the state level generally addresses three potential concerns related to TPLF: consumer protection, disclosure, and funder restrictions. Indiana lawmakers, for example, enacted a law in 2023 requiring claimants to provide written notice that they have entered into a TPLF agreement, absent a court order.
Notably, more than half of all U.S. states institute caps on punitive damages in tort-related cases, according to the NAIC, ranging from some states implementing a 1:1 cap on payouts exceeding the compensatory damages to other states permitting awards up to three times the baseline compensation amounts.
Verisk is engaging with the National Association of Mutual Insurance Companies (NAMIC) and other industry stakeholders to develop a strategy to help address TPLF.
“Given that third-party litigation funding can serve as rocket fuel for legal system
abuse that drives up costs for insurers and policyholders alike, NAMIC initiated a discussion with Verisk to address the issue,” said NAMIC President and CEO Neil Alldredge. “Verisk’s efforts in fast-tracking development of a coverage solution are poised to introduce more transparency around TPLF so it operates less in the shadows.”
Hauling Risks: The Rise of Electric Trucks
The global automotive transition to electric vehicles (EVs) has not been isolated to private passenger-type automobiles. U.S. electric truck deployment increased fivefold between 2022 and 2023, impacting commercial auto insurers.
Policymakers at the state and federal levels have taken steps in recent years to promote a more rapid electrification of commercial vehicles like trucks, buses, and vans. For instance, the National Electric Vehicle Infrastructure (NEVI) Program requires states to develop plans for
charging stations every 50 miles to expand the charging infrastructure for electric vehicles, including heavy-duty vehicles like semitrailers and buses. In California, policymakers have mandated that all new medium- and heavy-duty truck sales be 100% zero emission by 2036.
These initiatives face a number of potential challenges, such as charging and range issues, increased battery weight, and lingering concerns over EV-related fires. Battery weight considerations could, for example, force shipping companies to reduce the number of goods commercial EVs can transport, possibly increasing the number of trucks necessary to transport goods and increasing operational costs.
Current federal regulations grant EVs an additional 2,000-pound weight limit allowance, which could potentially lighten the burden of added battery weight. However, one University of California study estimates that electric semitrucks could be up to 5,000 pounds heavier than diesel semitrucks.
Vehicles with higher weight ratings could also receive a potentially higher weight classification under a rule in the ISO Commercial Lines Manual, according to Verisk analysis.
Virtual Currencies, Real Concerns
Virtual currencies, also known as
cryptocurrencies, appear to be basking in a post-election surge in value. But speculative manias are nothing new in the virtual currency market, where values have fluctuated wildly in the past. And with so much real money flowing through virtual currencies, commercial property insurers may want to consider some of the concerns associated with their meteoric rise.
The IRS has maintained since 2014 that virtual currencies are “property” rather than “currency” for the purposes of federal income tax collection. It’s a view that has been relied upon by some courts as well. Yet, virtual currencies are also subject to some unique risks that may not always be applicable to tangible property—or coverages designed to address them.
The extreme volatility of virtual currency values, for instance, may make them less predictable than tangible properties like commercial real estate, which has historically experienced more predictable patterns in valuation during periods of strong price growth and decline. The same cannot be said of virtual currencies. Take, for example, bitcoin: In a single year, it saw value drops of 45% and 47%. In an eight-week period in 2022, the value of bitcoin plunged by 36%.
Virtual currencies pose some potential underwriting challenges for commercial property and other lines of insurance as well. Thousands of U.S. companies already transact in bitcoin, and according to one report, businesses may hold approximately $40 billion in the currency (as of Q4 2024). These valuable assets—which may be stored on company servers or
third-party servers—could be exposed to theft or tampering, potentially leading to possible commercial property claims by the impacted companies.
Virtual currencies also require physical hardware to create or “mine.” Underwriting experts note that companies in the business of mining virtual currencies may have a unique risk profile distinct from that of similar businesses—such as data center operators—including increased fire risk.
The power-hungry nature of mining additionally means that these facilities may be co-located near power plants, including idle plants in more remote areas where it may take longer for fire departments to access. Due to the nature of virtual currency mining, firms may also opt for cost savings by eschewing backup power—leaving the operations more vulnerable to possible disruption during an outage.
While there’s much excitement—and rapid growth—around EVs and virtual currencies, they present unique risks that insurers need to be aware of. Meanwhile, as social inflation challenges persist, positive action around TPLF transparency is emerging.
Shavel is president and chief executive officer of Verisk, a data analytics and technology partner to the global insurance industry. He brings nearly 30 years of experience advising and leading publicly traded companies to Verisk.
Idea Exchange: Minding Your Business
Developing Leaders in Insurance Agencies
Understanding the strengths and weaknesses of your team is crucial—especially for insurance ag owners. Recognizing personal limitations allows leaders to strategically delegate tasks and fill talent gaps with the right employees, ultimately strengthening the entire organization.
Specialization Is Key
By Catherine Oak
Humans excel when they focus on what they do best. Consider H lutionary approach: by training workers to specialize in one task, Ford dramatically increased his factory’s output. He never installed car parts himself—not because he couldn’t but because his time was best spent elsewhere. Similarly, as a leader, one doesn’t need to master every task. Instead, focus on high-impact areas while trusting capable employees to handle the rest.
Strengths and Weaknesses
Small business leaders often dive into minor operational details when problems arise, which can distract from more strategic priorities. One effective
way to avoid this trap is by writing a personal job description that outlines both strengths and weaknesses. While it might be uncomfortable to acknowledge shortcomings—such as limited analytical skills, computer proficiency, or sales training—this self-awareness is essential. Recognizing these gaps allows one to identify where new hires or existing employees an add value.
A well-run agency is one where the owner’s presence is not a constant necessity. Achieving this requires hiring and training top talent, viewing new employees as future leaders rather than just task completers. Relying on inexperienced or marginal workers can lead to romanagement, stifling innovation and growth. Instead, empower your staff with independence, fostering an environment where delegation drives success.
Cultivating Leadership Within
To nurture leadership within the agency, begin by inspiring new hires with a clear, optimistic vision that reflects the company’s unique strengths—whether that’s exceptional customer service or innovative programs. From there, identify individuals who embody these qualities and challenge them with tasks that require independent
decision-making. Allowing employees the freedom to develop their own solutions not only builds confidence but also encourages them to take ownership of their work.
True leadership grows when employees are trusted to navigate challenges on their own. Encourage them to re-examine and improve established processes, reinforcing the idea that innovation and thoughtful risk-taking are valued within the company.
Leveraging Talent Through Mergers & Acquisitions
Mergers and acquisitions often bring together competing processes and philosophies. The key is to integrate the best elements of each approach, fostering an environment of continual improvement. Similarly, hiring seasoned professionals from other agencies can inject fresh perspectives and valuable insights into your operations. Tapping into this pool of talent can lead to refinement in the company’s practices and overall innovation.
Recognizing and Rewarding Excellence
An open, positive work culture is one where employees feel empowered to suggest improvements and challenge the status quo. Recognizing and rewarding such contributions is vital. While monetary incentives are important, consider offering benefits that align with today’s workforce priorities: flexible schedules, additional time off, health club memberships, childcare support, remote work options, four-day work weeks, company outings, and more.
Engage employees during performance reviews to understand which rewards matter most to them. Tailored rewards not only boost morale but also reinforce a culture of excellence and innovation.
Oak is the founder of Oak & Associates, a consulting firm based in Bend, Oregon, and Northern California. Her expertise spans financial and management consulting for independent insurance agencies, including valuations, mergers and acquisitions, sales and marketing planning, and perpetuation planning. Phone: 707-935-6565. Email: catoak@gmail.com.
Idea Exchange: The Marketing Connection
Insider Secrets: Creating High-Converting Sales Funnels for Insurance
Having a well-defined sales funnel is crucial for effectively attracting and converting potential clients. For insurance professionals, understanding and implementing a robust sales funnel strategy can significantly enhance client acquisition and retention efforts.
A sales funnel is a systematic process that guides prospects through stages of awareness, interest, decision-making, and, ultimately, conversion into clients. Here’s what you need to know to streamline your prospecting efforts, optimize your marketing strategies, and ultimately grow your insurance business with precision and effectiveness.
Understanding the Stages of a Sales Funnel Awareness Stage. Attracting the attention of potential clients who may not yet be aware of their insurance needs.
Strategies:
• Content Marketing: Provide valuable content such as blogs, articles, and videos that address common insurance concerns and industry trends.
• SEO Optimization: Ensure your content is discoverable through relevant search queries.
• Social Media Engagement: Share insights and interact with your audience on platforms like LinkedIn and Twitter.
Interest Stage. Cultivating interest among prospects who are actively seeking insurance solutions.
Strategies:
• Lead Magnets: Offer free resources like e-books, guides, or webinars in exchange for contact information.
• Email Campaigns: Nurture leads with targeted emails that provide further education and highlight your expertise.
• Webinars and Workshops: Host interactive sessions to showcase your industry knowledge and solutions.
Decision Stage. Helping prospects evaluate and choose your insurance services
over competitors.
Strategies:
• Consultative Selling: Offer personalized consultations or assessments tailored to the prospect’s needs.
• Case Studies and Testimonials: Share success stories and client testimonials demonstrating your expertise and reliability.
• Competitive Comparisons: Highlight unique selling points and benefits that differentiate your services.
Action Stage. Converting leads into clients by facilitating a smooth transition from interest to commitment.
Strategies:
• Clear Calls-to-Action (CTAs): Direct prospects to take specific actions such as scheduling a consultation or requesting a quote.
• Simplified Conversion Processes: Streamline paperwork and application processes to reduce friction and encourage quick decisions.
• Follow-up and Persistence: Continue to engage with leads who have shown interest but have not yet converted, ensuring no opportunity is missed.
Steps to Creating an Effective Sales Funnel
1. Define Your Ideal Client Persona. Understand your target audience’s demographics, pain points, and motivations
to tailor your funnel accordingly.
By Kristen Nevins
2. Map Out Your Funnel Stages. Clearly outline each stage of the funnel (Awareness, Interest, Decision, Action) and identify key touchpoints and content types for each stage.
3. Create Compelling Content. Develop high-quality, informative content that resonates with your audience at each stage of their journey.
4. Implement Marketing Automation. Utilize tools and platforms to automate lead nurturing, email campaigns, and customer relationship management (CRM) to scale your efforts effectively.
5. Measure and Optimize. Monitor key metrics such as conversion rates, lead quality, and customer acquisition cost (CAC). Based on data insights, adjust your strategies to improve performance.
6. Align Sales and Marketing Efforts. Foster collaboration between your sales and marketing teams to ensure seamless transitions and consistent messaging throughout the funnel.
A well-designed sales funnel is not just a series of steps; it’s a strategic framework that guides prospects from initial awareness to becoming loyal clients. By understanding the unique challenges and needs within the insurance industry and applying these tailored strategies, insurance professionals can build effective sales funnels that drive growth, enhance client relationships, and differentiate themselves. Implementing a sales funnel requires dedication, strategic thinking, and a commitment to ongoing optimization. By leveraging these principles, insurance professionals can confidently navigate the complexities of client acquisition and position themselves for sustained success.
Nevins is the director of marketing and operations at Direct Connection Advertising & Marketing. Website: directconnectionusa.com.
Spotlight: Agribusiness
continued from page 39 processing line speeds, the study found.
Meat companies are improving processes and equipment to reduce injuries, said the Meat Institute, an industry group that represents producers such as Tyson Foods and JBS USA.
“It is possible to maintain worker safety standards while operating at increased line speeds,” the institute said.
In pork plants, 46% of 574 evaluated workers were at high risk for muscu-
Advertisers Index
Amalgamated Insurance Underwriters
www.aiu-usa.com 29 Applied Underwriters
www.auw.com 2, 3, 52
Exdion
www.exdion.com 23 Ironpeak
www.ironpeak.com 5
Monarch E&S Insurance Services
www.monarchexcess.com W1
Nationwide Mutual
www.nationwide.com 10, 11
Surplus Lines Association of California www.slacal.com W3
TRM Specialty Insurance Company 15 Independence Blvd, Suite 430 Warren, NJ 07059
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
loskeletal disorders, and the effect of inc reased line speeds varied between establishments, according to another USDA-funded study.
Several workers expressed concerns about reporting pain to their supervisor due to the risk of retaliation or out of frustration that their problems would not be helped, the study said.
“Ever yone works in pain and is afraid to speak out,” one pork worker said, according to the study.
February 24, 2025
Puritan Life Insurance Company of America 7272 East Indian School Road, Suite 100 Scottsdale, AZ 85251
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Life, Accident, and Health Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
February 24, 2025
Atlanta Life Insurance Company 600 Peachtree Street NE, Suite 2350 Atlanta, GA 30308
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Life, Accident, and Health Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
Dangers go beyond the musculoskeletal injuries detailed in USDA’s reports, said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union, which represents more than 15,000 poultry workers.
“Poultr y workers toil in cramped, cold conditions, slicing up birds thousands of times per hour as chickens rush down the line,” he said.
Copyright 2025 Reuters.
February 24, 2025
Essent Title Insurance Company
Two Radnor Corporate Center
100 Matsonford Rd Radnor, PA 19087
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Title insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
February 24, 2025
Palisades Insurance Company 581 Main Street, Suite 400 Woodbridge, NJ 07095
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
February 24, 2025
Cronus Insurance Company
370 Las Colinas Blvd W., Suite 108 Irving, TX 75039
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
February 24, 2025
HDI Global Select Insurance Company
161 N. Clark Street, 48th Floor Chicago, IL 60601
The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
February 24, 2025
Phenix Mutual Fire Insurance Company 471 E. Broad Street Columbus, OH 43215
The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
February 24, 2025
Greenwood Insurance Company c/o CSC 2595 Interstate Drive, Suite 103 Harrisburg, PA 17110
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
February 24, 2025
Farmers Mutual Hail Insurance Company of Iowa 6785 Westown Parkway West Des Moines, IA 50266
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
February 24, 2025
Bridge City Insurance Company 120 Fifth Avenue Pittsburgh, PA 15222
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Life, Accident, and Health Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
February 24, 2025
Alaska National Insurance Company 7001 Jewel Lake Road Anchorage, AK 99502
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
February 24, 2025
Motor Club Insurance Company 110 Royal Little Drive Providence, RI 02904
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Life, Accident and Health Insurance and Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
February 24, 2025
Palomar Specialty Insurance Company 7979 Ivanhoe Ave., Suite 500 La Jolla, CA 92037
The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.
Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.
Closing Quote
California Wildfire Claims Ignite Industry-Wide Credibility Crisis
By Grace Vandecruze
As someone who lost everything in a devastating fire—from cherished family photos to irreplaceable heirlooms—I understand firsthand the profound impact of both fire destruction and an insurer’s response. That personal tragedy ultimately led me to a career in insurance, driven by a deep conviction that our industry must serve as a bedrock of support during life’s most challenging moments. The California wildfires are a stark reminder that we must never lose sight of this mission.
According to a J.D. Power 2023 Property Claims Satisfaction Study, customer satisfaction with property claims in California has declined significantly, with the state scoring 836 on a 1,000-point scale, below the national average of 855.
Specifically for wildfire-affected regions, customer satisfaction dropped by 22 points compared to the previous year.
The numbers tell a sobering story. With wildfire losses between $28 billion and $35 billion based on projections from Verisk, insurers have been forced to make difficult decisions about coverage and claims handling. While financially necessary, these actions are increasingly viewed by the public as evidence of an industry prioritizing profits
over policyholder protection.
The emotional trauma of losing everything is compounded when insurance fails to provide the security promised. Social media has amplified this sentiment, with viral videos of denied claims and coverage cancellations generating millions of views. Local news coverage frequently features emotional interviews with homeowners who feel betrayed by their carriers, further damaging industry credibility.
The insurance industry’s reputation crisis is not a modern phenomenon. It’s a century-old challenge rooted in the fundamental tension between being both a profit-driven business and a social safety net. Our industry makes promises that will not be tested for years or decades, and when they are, it’s often during someone’s worst moments.
This trust deficit carries serious implications for insurers’ long-term viability in the California market. Negative media coverage of insurers’ claim-handling practices fuels policyholder anger and incentive lawsuits. Additionally, social inflation exacerbates
these challenges. With growing distrust and dissatisfaction among policyholders, the frequency and severity of lawsuits have surged.
Rebuilding trust in insurance requires both immediate action and generational commitment. In the short term, we must revolutionize our transparency—imagine if we invested as much in explaining coverage as we do in selling it. We need to transform claim payments from adversarial transactions into moments of brand validation. But the longer-term challenge is far more fundamental: We must evolve from being perceived as claim gatekeepers to becoming proactive risk partners.
The insurance industry must fundamentally rethink its relationship with customers. We can no longer view insurance as a transactional product but as a comprehensive risk management partnership that requires transparency, innovation, and a commitment to serving communities.
The path forward requires a collaborative approach between private and public sectors, including:
• Development of a publicprivate partnership framework to create sustainable coverage solutions.
• Establishment of a statebacked reinsurance program to help maintain market stability in high-risk areas.
• Creation of standardized wildfire resilience requirements and incentives.
• Streamlined claims processes with enhanced transparency.
• Investment in risk mitigation efforts supported by both government and insurers.
Of particular concern is the growing protection gap—the difference between economic losses and insured losses—which has widened dramatically in recent years. Current estimates suggest up to 40% of wildfire-related losses in California remain uninsured or underinsured, creating devastating financial consequences for affected communities.
The stakes couldn’t be higher. As climate change continues to escalate wildfire risks, the industry’s ability to maintain public trust while managing increasing losses will determine its future in the California market. Having experienced both sides of this equation—as a devastated homeowner and now as an industry insider—I can attest that bridging the protection gap and restoring trust isn’t just good business; it’s a moral imperative that defines our industry’s very purpose.
Vandecruze is the managing director of Grace Global Capital LLC, an advisory firm focused on mergers and acquisitions in the financial services industry. Email: gv@graceglobalcapital.com.
