Insurance Journal West 2014-12-15 by Insurance Journal

WEST Utah Lawmaker Wants Ridesharing Regs Appeal Filed by 49ers Fan Who Sued NFL 8-in-10 Americans Believe in Climate Change

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Inside This Issue

On The Cover

Special Report: The Charity Issue

December 15, 2014 • Vol. 92 No. 24 • West

NATIONAL COVERAGE

WEST COVERAGE

IDEA EXCHANGE

10 Smaller Firms Showing Interest in Cyber Coverage: Aspen’s Vitale

W1 Appeal Filed by 49ers Fan Who Sued NFL and Lost

26 International Insider: Environmental Liabilities in Europe

12 P/C Direct Premium Written Up 4.6%: Demotech

W1 Utah Lawmaker Working on Ridesharing Regulations

16 10 Things to Know About Charitable Giving

W1 Former Washington Adjuster Pleads Guilty to $135,000 Theft

17 Special Report: The Spirit of Life: P/C Insurance Industry Helps Find a Cure for Cancer

W4 Survey Shows 8-in-10 Americans Believe in Climate Change

18 Special Report: How Agents & Brokers Help Communities Worldwide

28 Making Giving Work: How to Get the Most From Charitable Donations 31 Growing Your Property Casualty Agency: Alan Shulman 32 Minding Your Business: Catherine Oak & Bill Schoeffler 34 Closing Quote: Evolving Regulation and Insurers’ M&A Strategies

20 Special Report: Hometown Agency Heroes 23 Special Report: Getting Local with the Insurance Industry Charitable Foundation

4 | INSURANCE JOURNAL-WEST December 15, 2014

DEPARTMENTS W2 11 11 14 30

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NATIONAL COVERAGE

Opening Note Competition Ahead for Insurers

.S. property/casualty insurers have cause for celebration as carriers reported higher overall earnings and premium levels in the 2014 third quarter versus the same period a year ago. Yet, at the same time Moody’s Investors Service said in a new report that competition and winter storms could slow that momentum in the months ahead. Moody’s-rated U.S. property/casualty insurers produced earnings during the quarter that landed 6 percent higher than the 2013 third quarter, thanks to mild weather and a boost in investment income. Companies also generated a 4 percent jump in net premiums written in Q3 versus the same period last year, due to steadily rising insurance rates and exposures. Moody’s noted, however, that competition is slowing those rate increases, particularly on the commercial lines side. Rates climbed an average of 4.1 percent compared to 4.6 percent in Q2 and 5.6 percent in the first quarter of 2014. It seems that commercial property rates had the biggest impact on the rate slow-down, according to the report. “Generally, carriers reported slowing rate increases as insurers emphasized greater retention of more seasoned, ‘Barring significant catastrophes, rate-adequate we expect increasing pressure on business,” Moody’s commercial property rates into noted in its report. next year given rising competition “Commercial property rates saw the most and lower reinsurance pricing.’ downward pressure…as favorable reinsurance pricing and increased capacity have boosted appetite for large and middle-market accounts.” Not to be forgotten, small commercial market accounts generated “relatively higher rate increases,” Moody’s said, and there was relative improvement compared to 2013 in casualty, workers’ comp and professional liability line rates. Another gain: rate increases in commercial auto, something that has not always been profitable for carriers. Expect market rivalry to keep the heat on in the commercial lines sector, assuming major storms avoid the U.S. in the coming winter season, Moody’s predicted. “Barring significant catastrophes, we expect increasing pressure on commercial property rates into next year given rising competition and lower reinsurance pricing,” the Moody’s report said. Moody’s pointed out that personal lines rates continue to climb, but competition will slow those increases, particularly as direct writers gain market share. “Competition in the personal lines space remains intense,” Moody’s said. “Direct auto raters continue to outpace agency writers in the push for personal auto policies.” That means there will be even more personal lines competition in the months ahead, “given improved Andrea Wells underwriting profitability and carriers’ renewed appetite for new business growth.” Editor-in-Chief

6 | INSURANCE JOURNAL-NATIONAL December 15, 2014

Publisher Mark Wells | mwells@wellsmedia.com EDITORIAL Editor-in-Chief Andrea Wells | awells@insurancejournal.com V.P. Content Andrew Simpson | asimpson@insurancejournal.com East Editor Young Ha | yha@insurancejournal.com Southeast Editor Michael Adams | madams@insurancejournal.com South Central Editor/Midwest Editor Stephanie K. Jones | sjones@insurancejournal.com West Editor Don Jergler | djergler@insurancejournal.com International Editor Charles E. Boyle | cboyle@insurancejournal.com Senior Editor Susanne Sclafane | ssclafane@insurancejournal.com ClaimsJournal.com Editor Denise Johnson | djohnson@claimsjournal.com MyNewMarkets.com Associate Editor Amy O’Connor | aoconnor@mynewmarkets.com Columnists David Barr, John Graham, Grace Vandecruze Contributing Writers Kathleen Ellis, Catherine Oak, Bill Schoeffler, Alan Shulman SALES V.P. Sales & Marketing Julie Tinney (800) 897-9965 x148 | jtinney@insurancejournal.com West Dena Kaplan (800) 897-9965 x115 | dkaplan@insurancejournal.com South Central Mindy Trammell (800) 897-9965 x149 | mtrammell@insurancejournal.com Midwest Lauren Knapp (800) 897-9965 x161 | lknapp@insurancejournal.com Southeast Howard Simkin (800) 897-9965 x162 | hsimkin@insurancejournal.com East Dave Molchan (800) 897-9965 x145 | dmolchan@insurancejournal.com New Markets Sales Manager Kristine Honey | khoney@insurancejournal.com Classifieds, Jobs, Agencies Wanted/For Sale Ly Nguyen (800) 897-9965 x125 | lnguyen@insurancejournal.com MARKETING/NEW MEDIA Marketing Administrator Gayle Wells | gwells@insurancejournal.com Advertising Coordinator Erin Burns (619) 584-1100 x120 | eburns@insurancejournal.com New Media Producer Bobbie Dodge | bdodge@insurancejournal.com DESIGN/WEB V.P. of Design Guy Boccia | gboccia@insurancejournal.com V.P of Technology Joshua Carlson | jcarlson@insurancejournal.com Audience Development Elizabeth Duffy | eduffy@wellsmedia.com Marketing Director Derence Walk | dwalk@insurancejournal.com Web Developer Jeff Cardrant | jcardrant@insurancejournal.com Web Developer Chris Thompson | cthompson@insurancejournal.com IJ ACADEMY OF INSURANCE Online Training Coordinator Barbara Whiffen | bwhiffen@ijacademy.com ADMINISTRATION Chief Executive Officer Mitch Dunford Chief Financial Officer Mark Wooster | mwooster@wellsmedia.com

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By Russ Banham

Nary a day passes without news about another large company victimized by hackers, its employees’ or customers’ personally identifiable information stolen, and the

Small and midsize businesses accounted for

61%

of all targeted attacks in 2014

organization confronting punitive privacy regulations, intense media scrutiny and possible reputational damage. But big companies aren’t the only victims of cyber attacks. According to a survey last year by the National Small Business Association, 44 percent of small businesses have been subject to at least one cyber attack, costing each an average of $8,700 per breach.1 A 2014 study by Symantec paints an even more dire picture, noting that small and midsize businesses (SMBs) with fewer than 250 employees accounted for 61 percent of all targeted attacks in 2014, up 11 percent from the prior year.2 Despite this heightened risk of a data breach, few small companies are aware of

11%

from 2013

the threat or have simply chosen to ignore it, according to a recent Advisen report sponsored by The Hartford.3 A case in point—very few SMBs have developed clear and stringent security rules that prohibit employees from clicking on seemingly innocuous email links allowing a malicious file to infect the corporate network. As any large company would attest, such phishing scams are potentially devastating.

MIDSIZE AND SMALLER BUSINESSES PRIME TARGETS OF CYBER ATTACKS.

Prepare. Protect. Prevail.

The reason for the lax cyber security

report introduced data indicating that

appears to be the widespread belief among

cyber-related incidents affecting SMBs have

SMBs that hackers are only gunning for the

been on an upward trajectory since 2004, with

big guys. Wrong. Hackers have SMBs in their

SMBs currently representing 60 percent of

crosshairs. Small and midsize businesses are

all incidents.

the easiest prey, if for no other reason than the companies lack financial resources to fend off the attacks—a fact well known to hackers. Large businesses, on the other hand, have more sophisticated IT security systems. As the Advisen report affirmed, “SMBs frequently present the better opportunity.”

Try telling that to the owner of a

Small businesses that choose to ignore the facts are in for a sorry surprise. With nearly

44%

of small businesses have been subject to at least one cyber attack.

small company, however. According to

half of SMBs failing to have an adequate

The Hartford’s 2014 Small Business Success

security budget, according to a study by the

Study of companies with fewer than 100

Ponemon Institute,6 and 87 percent without

full-time employees and annual revenues

a formal written Internet security policy for

of $100,000 or more, more than a quarter

employees, a study by the National Cyber

(27 percent) stated that a data breach does

Security Alliance7 discovered, chances are

not represent a risk to their business. Nearly

when hackers strike, the doors will be open.

Cyber-related incidents affecting small and midsize businesses have been on an upward trajectory since 2004.

Obviously, no business—no matter its size— is immune to the threat of a cyber incident. Indeed, it is not a matter of if an SMB will be attacked, it’s a matter of when. With the will and skill of hackers on the uptick, SMBs must first take the risk of a cyber

a third (31 percent) commented that there

attack seriously, and then do something about

would be no impact to the company if it

it. The Advisen report introduced several

experienced a data breach.

cyber security practices and post-incident risk

Such views are shortsighted and

mitigation tactics to deal with the after-effects

misguided, given the rising prevalence of

of a data breach. The number one piece of

cyber attacks against SMBs. The Advisen

advice: Be prepared.

To steer clear of what the report equates to a “digital pandemic,” readers are advised to visit THEHARTFORD.COM/CYBER for a copy. 1 “2013 Small Business Technology Survey,” National Small Business Association, (December 2013) 2 “2014 Internet Security Threat Report,” Symantec, (2013 Trends, Vol. 19, April 2014) 3 “Cyber Exposures of Small and Midsize Businesses,” Advisen, (October 2014)

4 “Cyber Exposures of Small and Midsize Businesses,” Advisen, (October 2014) 5 “2014 Small Business Success Study,” The Hartford, (October 2014) 6 “The Risk of an Uncertain Security Strategy: Study of Global IT Practitioners in SMB Organizations,” Ponemon Institute, (November 2013) 7 “2012 National Small Business Study,” National Cyber Security Alliance and Symantec

Business Insurance Employee Benefits Auto

42524B

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NATIONAL COVERAGE

News & Markets Smaller Firms Showing Interest in Cyber Liability Coverage: Aspen’s Vitale By Andrew Simpson

um and smaller firms also tracks with their increased awareness of their own vulnerability. yber liability insurance isn’t just for Almost one-third of U.S. small large corporations anymore. businesses surveyed by the Demand for cyber liability insurance is Ponemon Institute had a cyber now coming from middle-sized and small attack in the previous year, accordbusinesses, according to an insurance CEO ing to a study sponsored by The who believes the market potential is Hartford Steam Boiler Inspection tremendous. and Insurance Co. Nearly “Now we see many, many what I would three-quarters of those businesses were not call medium-sized companies interested in able to fully restore their company’s comor purchasing the coverage, and even the puter data. The study found many of the smaller risks are, too,” said Mario Vitale, small employers suffered multiple breaches. CEO of specialty insurer Aspen Insurance A recent Advisen report found that Co., in a recent video interview with Wells smaller companies are increasingly being Media Group at the Professional Liability targeted because they often have less sophisUnderwriting Society (PLUS) meeting in ticated security and, in some cases, can act Las Vegas. as a conduit to larger companies. Advisen “What Aspen has done is evolve from just found that while the smallest companies a large-account specialty cyber-risk provider had previously viewed cyber risk less serito now middle-market and smaller risk, ously than their largest counterparts, this too. There, I think, the growth potential is gap is closing. almost unlimited.” A more recent survey by Partner Re and Advisen this past August of 500 insurMarket Research ance carrier executives, brokers and risk Vitale’s experience tracks with others’ managers found that the vast majority of predictions and recent market research. respondents indicated Lloyd’s of some growth in demand London CEO ‘[T]he insurance industry Inga Beale has to get better at both risk for cyber liability. Respondents offered recently said management and at creating supporting commentary, she expects products and services…’ saying they are observthe market for ing that the sales cycle cyber insurance has shortened since two years ago and to surge after hackers attacked JPMorgan that instead of binding one out of every 10 Chase & Co. and Home Depot Inc. “It’s quotes, they are now binding one out of going to grow dramatically with all the every five. high-profile hacking incidents,” she said in a Aspen Insurance has been insuring cyber Bloomberg TV interview. liability for some time but the company is A report by insurance broker Marsh this hardly alone today. The PartnerRe-Advisen spring found a significant increase in interreport estimates there are 35 insurers writest for coverage and new business in 2013 ing cyber insurance as a stand-alone prodcontinued and even accelerated in 2014. uct in the United States, and many more Marsh has projected that the U.S cyber are providing it as an endorsement. Vitale insurance market that generated $1 billion thinks the total number of insurers in the in gross written premiums last year could market could be as high as 75. reach as much as $2 billion this year even as “[I]t was only 15 years ago when this parrates remain stable. ticular product line really came into its own The rising interest in cyber risk by medi-

10 | INSURANCE JOURNAL-NATIONAL December 15, 2014

but there were very few buyers. Everybody talked about it, but there weren’t enough losses falling through to spur, if you will, client demand,” he said. “Jump forward 15 years to today. All you have to do is open any newspaper, anywhere in the world, any day, and you hear about a cyber attack including, of course, what’s been happening with the large retailers like Target, which get access to millions of customers’ financial information. It’s really quite concerning. The demand is now really strong.” Growing Risk Vitale suggests that demand for protection will continue to grow because hackers are growing. This places more pressure on insurers to come up with solutions. “[T]he hackers are getting more sophisticated. They’re getting better at what they do,” he said. Thus, he said, the insurance industry has to get better at both risk management and at creating products and services including for cyber-related business interruption, which he said is “probably the hardest to underwrite.” “You have a brand reputation part of it, the restoration process, and of course, the next part of it is business interruption. As an industry, we’re still all struggling to put our arms around that and how we can find some creative solutions for our clients,” Vitale said. Web Resource: To watch the video interview with Mario Vitale, CEO of Aspen Insurance Co., visit: http://www.insurancejournal.tv/videos/11611/ www.insurancejournal.com

WEST COVERAGE

News & Markets Appeal Filed by 49ers Fan Who Sued NFL and Lost

San Francisco 49ers fan who sued the NFL, the Seattle Seahawks and Ticketmaster because he was barred from buying playoff tickets has appealed a judge’s order to dismiss the case. John Williams III of Las Vegas filed the $50 million lawsuit in federal court in

April, claiming the practice of limiting ticket sales to people who only live in certain geographic areas violates the Federal Consumer Fraud Act. Williams claimed tickets to the Jan. 19 NFC Championship Game between Seattle and San Francisco were limited to people with credit cards in the states of Washington, Oregon, Montana, Idaho, Alaska and Hawaii. The NFL said the suit should be dismissed, arguing it was not involved. The Seahawks said they had no obligation to ensure all fans have ticket access. On Oct. 31 a judge dismissed the case. Williams filed an appeal in late November with the 9th U.S. Circuit Court of Appeals. Copyright 2014 Associated Press.

Former Washington Adjuster Pleads Guilty to $135,000 Theft

ormer Nationwide Insurance claims associate Fariborz Romeo Rahrovi, 40, in November pled guilty in King County Superior Court in Washington to two counts of theft, criminal conspirRomeo Rahrovi acy and money laundering related to the theft of an accident victim’s $525,000 insurance settlement. Rahrovi is scheduled to be sentenced at on Dec. 19 in King County Superior Court. He faces up to 12 months in prison. He was charged after an investigation by Insurance Commissioner Mike Kreidler’s Special Investigations Unit. Rahrovi allegedly worked in cahoots with Seattle private law attorney Edward Joseph Callow, who represented the victim. Nationwide paid Callow’s client a $25,000 advance and a $500,000 settlement in 2010. Callow allegedly altered documents to www.insurancejournal.com

show his client that Nationwide paid a $250,000 settlement, of which the client agreed to pay 33 percent in attorney’s fees. Ultimately, Callow paid his client roughly one-third of the total settlement, according to the investigation. Rahrovi pocketed $135,000 for his role in the scam, according to court documents. Callow kept the remaining $225,000. Nationwide fired Rahrovi in November 2012. He was charged in December 2013 and pled not guilty to the charges in January. Callow pled guilty to five felonies and in August was sentenced to 24 months in prison and ordered to pay $167,500 in restitution to the victim. Callow has been in jail since March, when he was detained after fleeing to Taiwan in December 2013 following charges being filed. Callow has since been disbarred and is serving his sentence in King County.

Utah Lawmaker Working on Ridesharing Regulations

Utah lawmaker is working on a bill proposing statewide regulations for ridesharing companies like Uber and Lyft. Some say the smartphone app-based companies should follow the same rules as taxi drivers, including background checks and insurance. But the companies say their services are different from taxis and too much red tape would make it impossible for their part-time drivers. Rep. Dan McCay of Riverton said he wants to find a middle ground. The Republican’s proposal came days after Salt Lake City adopted new rules for the services that that make ridesharing legal. Though drivers are already operating in the city, some had been slapped with warnings and fines of up to $6,500. While the city council eliminated a 30-minute wait period for limousines and a $30 minimum charge at the companies’ request, it required drivers to have background checks, vehicles to undergo inspections and ridesharing cars to carry $1.5 million liability insurance. The companies said those regulations duplicate their efforts and they won’t follow them. Ridesharing services are different than taxis, they argue, more like neighbors or friends offering to pay for gas in exchange for a lift. The Uber and Lyft apps allow people looking for rides find available drivers, and the company keeps 20 percent of the fare. McCay said his bill may have different standards than those adopted by Salt Lake City, though the details are still being worked out between the companies and local governments, he said. If the Legislature adopts statewide rules, they could override or change Salt Lake City’s newly adopted regulations. The new legislative session opens Jan. 26, but exactly when McCay’s ridesharing bill might be introduced depends on agreement between the companies and the governments. Copyright 2014 Associated Press. December 15, 2014 INSURANCE JOURNAL-WEST | W1

WEST COVERAGE

People Lindene Patton

Jackie Robinson

Data and analytics provider CoreLogic has named Lindene Patton global head of hazard product development for its insurance and spatial solutions business. Patton will lead development and research analytics for natural hazard and climate risk products and solutions for the Irvine, Calif.-based firm. Patton has 27 years of experience, including a range of experience in insurance and risk management, global climate research and analysis, environmental science and legal affairs. In 2013, she co-authored Climate Change and Insurance, published by the American Bar Association. Prior to CoreLogic Patton was chief climate change product officer for Zurich Insurance Group, for which she also previously served in roles as divisional head of risk management and legal counsel. She serves on numerous government and non-governmental advisory boards, including the National Academy of Science Committee on Risk-Based Methods for Insurance Premiums of Negatively-Elevated Structures in the National Flood Insurance Program. Patton has been a member of the Executive Secretariat of the third U.S. National Climate Assessment Development and Advisory Committee. CoreLogic is a property information, analytics and data-enabled services provider. Lovitt & Touché, an Arizona-based insurance brokerage and benefits solutions provider, has hired Jackie Robinson as a sales executive specializing in property/ casualty risks and employee benefits within the human services and healthcare industries. She is based at the company’s Tempe office. Robinson has more than 16 years of experience in the insurance industry, most recently serving as a sales executive in the senior healthcare industry. She has also worked for a global insurance provider in numerous roles, including risk management, claims, customer service and account management. Robinson is licensed to sell Arizona property/casualty insurance, and Arizona life and health insurance. Lovitt & Touché reports roughly 200 employees and more than $300 million in total annual premiums. York Risk Services Group has named Bijan Bijarchi vice president of risk management practices. Bijarchi will be based in Orange, Calif. York’s risk management practices division specializes in custom claims and risk management solutions for commercial self-insured and loss-sensitive clients. Bijarchi will oversee strategic growth initiatives, including new product development, diversifying and growing

W2 | INSURANCE JOURNAL-WEST December 15, 2014

the company’s overall service offerings, and expanding York’s position in select target industries. Prior to York, Bijarchi held a variety of leadership positions in claims, managed care and account management at national third party administrators and managed care companies. Parsippany, N.J.-headquartered York is a national provider of risk management, claims handling, specialized loss adjusting, managed care, pool administration, loss control and other insurance services. Integro announced it’s adding to its aviation practice sector specialist Leslie DeWald as managing principal. DeWald and her team of four will be based in Park City, Utah. They specialize in aviation and aerospace insurance. DeWald previously worked as president of SterlingRisk of Utah. New York, N.Y.-based Integro is an insurance brokerage and risk management firm that operates from offices in the United States, Canada, Bermuda and the United Kingdom. The Property Casualty Insurers Association of America has named Hilary Segura and Logan McFaddin as the latest additions to its state government relations team. Segura and McFaddin will take over regional staff duties overseeing states in the Midwest and the Southeast. Segura will manage Indiana, Iowa, Minnesota, Missouri and Tennessee for PCI, while McFaddin will handle Alabama, Florida and Georgia. Segura replaces Ann Weber while McFaddin is replacing G. Donovan Brown. Previously, Segura worked for Illinois Gov. Patrick Quinn as the associate director of Government Services, Legislative Affairs. Prior to working for Gov. Quinn, Segura served as senior policy advisor for the director of the Illinois Department of Insurance. Before working in state government, Segura managed government relations for American Family in several Midwest states and Georgia. McFaddin spent several years in the Florida state government, most recently as the director of the Office of Legislative Affairs for the Florida Department of Financial Services. McFaddin has worked for Florida Chief Financial Officer Jeff Atwater since 2011. Prior to working for the Florida CFO, McFaddin was the legislative affairs director for the Florida Agency for Persons with Disabilities. PCI represents more than 1,000 property/casualty insurance companies. www.insurancejournal.com

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News & Markets Survey Shows 8-in-10 Americans Believe in Climate Change By Don Jergler

ore than eight-in-10 Americans now believe the climate is changing — although they place that concern beneath issues like global political instability, economic crisis or a pandemic. Munich Re America’s inaugural 2014 Climate Change Barometer survey released earlier this month shows that 83 percent of the 1,000-plus Americans surveyed believe climate change is occurring, and 63 percent are concerned about changes in the frequency and intensity of natural disasters, such as floods, hurricanes and tornadoes. The survey shows Americans living in the Northeast are the most concerned about climate change. More than three-quarters of Northeast residents are concerned about changes in the severity of weather events, more than the West (65 percent), while concern in the Midwest (60 percent) and South (59 percent) followed. With opinions on climate change in Europe known to be strong, Ernst Rauch, one of the heads of Munich Re’s geo risks department, said the survey is important to the international carrier to get a handle on how Americans feel about it. “We conducted this survey in order to understand where American people stand in response to climate change and adaptation to climate change and mitigation of climate change,” Rauch said. “We realized when we talked to people in different parts of the world that every nation has its own perception and understanding of climate change.” In Europe, for instance, climate change is part of a mainstream debate, while in other countries there is no debate at all. The U.S. was perceived to be somewhere in between, he said. “It has changed and this is one of the most interesting outcomes of this survey,” Rauch said, adding that in the past most Americans were believed to be reluctant in accepting the position that climate change is real. “This survey to us was a surprise.” W4 | INSURANCE JOURNAL-WEST December 15, 2014

Seventy-one percent of Americans believe that to most effectively slow down climate change a greater emphasis should be placed on using alternative energy, while 66 percent of those surveyed support government-backed tax incentives to drive business or consumer behavior, the survey shows. More than six-in-10 believe education initiatives about ways households can reduce their carbon footprint would be most effective, according to the survey. Asked what they plan to do about it, 63 percent plan to fortify or have already fortified their homes to protect themselves from future severe weather events, and 47 percent have purchased or plan to purchase an additional insurance policy, such as flood or earthquake insurance. Nearly half (47 percent) would consider moving away from hazard-prone areas, the survey shows. Despite increased awareness of climatic issues and the long-term risks of change associated with them, the survey found that Americans are least concerned about climate change compared with other potential crises. Only 14 percent were concerned about climate change when compared to global political instability (31 percent), an economic crisis (27 percent) or a pandemic (22 percent). Paired with evidence that shows Americans are starting to care more about climate change, those results presented a sort of paradox for the survey authors. “Obviously now climate change is part of the American mainstream thinking, but it when it comes to the question ‘What is a concern to you?’ climate change ranks in a

lower place,” Rauch said. Rauch surmised that the rise in awareness and concern over climate change among Americans is due to the extreme weather events that have hit the U.S. in that last two decades — Hurricane Katrina, Superstorm Sandy, the ongoing drought in the West. “I think the broader public realized extreme weather patterns are now affecting them, and this could be a driver in the change of perceptions,” Rauch said. While there are no immediate plans to start on another survey, Rauch said there are a few next questions to ask. “To me the next logical question is to ask a bit more concrete questions about adaptation,” he said. He’d also like to have survey participants field a few questions on how they acquire knowledge about climate change. “How do you get informed on a more constant basis about climate change, about the science, about the means of adaptation? Is it from the news, or social media?” he said. The results of survey are based on a national probability sample of 1,008 telephone interviews conducted among adults 18 years of age or older (502 males and 506 females) living in private households in the continental United States. Since insurance-related risk management focuses on how atmospheric changes affect losses caused by severe weather events regardless of cause, the survey did not ask specifically about human-made global warming, but about significant change in the measures of climate, according to the authors of the survey. www.insurancejournal.com

NATIONAL COVERAGE

FIGURES

DECLARATIONS

300

$139 Million

The approximate number of pothole damage claims that have been filed with the Ohio transportation department by drivers so far in 2014. The number is nearly triple the 110 claims filed in 2013. The state allows drivers to file claims for damage caused from potholes, but they must prove that the Ohio Department of Transportation maintains the road and that the state was aware of the hazardous road conditions.

The amount the Los Angeles Unified School District agreed to pay to settle lawsuits by sexual abuse victims of a former third-grade teacher whose 2012 arrest sparked criticism of how allegations of abuse were handled at schools in the district’s poorest, mostly Latino neighborhoods.

The amount in legal costs that New York City incurred in the past fiscal year that ended June 30, according to the city comptroller’s annual report released in October.

“New GM was not born innocent.”

— Arizona Attorney General Tom Horne wants civil penalties of $10,000 for each of the hundreds of thousands of GM vehicles sold in the state in violation of consumer-fraud law. Arizona became the first state to join the wave of litigation against GM over faulty ignition switches.

A Double Standard

“There’s clearly a double standard.”

100,000 $732 Million

Innocence Lost … Again

The estimated number of vehicles that are stolen in Texas each year, according to the Insurance Council of Texas. Another 250,000 are burglarized annually. It is estimated that half of the vehicles stolen had the drivers’ keys left in the ignition and/or unlocked doors.

— Michael Solomon, president of the Taxi Taxi cab service in the Raleigh area, told North Carolina lawmakers that drivers for Uber, Lyft and similar services should be required to obtain commercial license plates and pay for commercial insurance that covers them around the clock. State legislators are studying digital services that allow people to sell car rides through a smartphone app or rent out rooms to travelers. No legislation is currently proposed on the businesses.

Getting to Know Them

“If it gets crowded down there we won’t be in there long. … You’ll get to know your neighbors pretty well.”

— James Trudeau, of Bourbonnais, Ill., says that since he buried a storm shelter in his yard, each of his neighbors has secured the promise of a spot if a tornado heads their way. The storm shelter was manufactured in Arkansas. It has shelves, seating, a breathing vent and steps to its underground confines.

Paint and a Crime Scene

“We can tell the location by the different variations of paint.”

— Oklahoma State University Ph.D student Collin White, who uses a computer to compare spectral paint to the paint of automobiles using algorithms as part of a national effort to identify criminals using a sample of automobile paint taken from a crime scene.

$31,500 The amount in damages a jury awarded an Alabama woman after she accused a jeweler of swapping a family heirloom diamond she wanted to re-purpose into an engagement ring for her son with a stone of lesser value. The Montgomery County jury awarded DeeDee Nolan $6,500 in compensatory damages and $25,000 in punitive damages in her suit against Marquirette’s Exquisite Jewelry. The jeweler denied Nolan’s allegations.

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Cyber Networks

“New York’s National Guard has a unique role to play in protecting our cyber networks.”

— U.S. Sen. Kirsten Gillibrand, D-N.Y., in her Nov. 17 letter to Army National Guard’s Acting Director Major General Judd Lyons. In her letter, Gillibrand urged for swift approval of a proposal allowing the New York and New Jersey Army National Guards to form a joint cyber protection team focused on addressing the growing cyber security threats to the region’s infrastructure and networks.

December 15, 2014 INSURANCE JOURNAL-NATIONAL | 11

NATIONAL COVERAGE

News & Markets P/C Direct Premium Written Up 4.6 Percent

irect premium written (DPW) for property/casualty insurance companies continues to increase gradually. At year-end 2013, nearly $545 billion of DPW was reported, a record-high for the industry. For 2013, total DPW for all P/C insurers increased 4.1 percent over 2012, an increase of nearly $22 billion. Through Q3 2014, the industry’s By Douglas A. Powell growth trend has continued, as DPW for all P/C insurers aggregately increased 4.6 percent over DPW reported through Q3 2013. For the nine months ending Sept. 30, 2014, P/C companies comprising the top 25 insurers in terms of DPW growth increased their DPW 13.2 percent over the first nine

months of 2013. This continues the top 25 insurers’ impressive display of premium growth and financial stability. The top 25 accounted for nearly 50 percent of the growth in the P/C industry’s DPW. The remainder of the industry reported an increase in DPW of 2.8 percent, or $9.3 billion year-over-year. While increasing DPW, P/C companies have aggregately maintained a sufficient level of policyholders’ surplus (PHS). One measure that indicates P/C companies are conservatively leveraged is the DPW-to-PHS ratio. A DPW-to-PHS ratio is indicative of premium leverage on a direct basis, without considering the effect of reinsurance. Since 2010, this ratio for P/C companies has been stable at approximately 70 percent. Although the market shows signs of

firming and DPW continues to increase, P/C insurers should not expect a traditional hard market in the near future. It is possible that the double-digit premium growth experienced in the historical hard market cycles may have created unrealistic premium growth expectations for this recovery. It is more realistic that expectations should relate to gradual, stable growth. There is always a fair amount of uncertainty in making projections based on third-quarter data, but if the industry holds to its 10-year historical pattern, growth in 2014 would result in the highest level of year-end DPW ever reported by the P/C industry. Powell is a senior financial analyst with Demotech Inc., Insurance Journal’s official research partner. Email: dpowell@demotech.com.

Top 25 Property/Casualty Companies Based upon dollar amount of direct premium written (DPW) growth Year-to-date results Sept. 30, 2014 versus Sept. 30, 2013 Company Name

DPW 09/30/2014

DPW 09/30/2013

$ Growth

% Growth

State Farm Mutual Automobile Insurance Co. American Bankers Insurance Co. of Florida Allstate Fire and Casualty Insurance Co. State Farm Fire and Casualty Co. GEICO Casualty Co. LM General Insurance Co. Wesco Insurance Co. CGB Insurance Co. USAA General Indemnity Co. State Compensation Insurance Fund Allstate Vehicle and Property Insurance Co. Arch Insurance Co. Tokio Marine America Insurance Co. Ohio Security Insurance Co. GEICO General Insurance Co. Continental Casualty Co. National Liability & Fire Insurance Co. Liberty Insurance Corp. National Fire & Marine Insurance Co. GEICO County Mutual Insurance Co. Technology Insurance Co. Inc. USAA Casualty Insurance Co. Standard Guaranty Insurance Co. Zurich American Insurance Co. United Specialty Insurance Co. Top 25 by DPW Growth All Other P/C Companies Total

$25,580,599,478 $1,992,152,425 $4,507,281,437 $14,317,624,026 $2,076,271,232 $1,435,897,605 $1,120,170,948 $389,504,178 $1,709,888,245 $1,131,656,901 $670,650,620 $1,335,347,566 $286,148,458 $650,320,846 $5,560,823,143 $4,302,249,643 $475,231,877 $1,840,655,041 $391,234,282 $212,171,691 $740,179,069 $3,729,155,996 $562,473,150 $4,361,073,415 $330,684,748 $79,709,446,020 $347,713,990,738 $427,423,436,758

$24,320,959,255 $1,220,238,138 $3,907,355,857 $13,744,641,281 $1,589,710,197 $1,022,952,028 $724,201,075 -$1,344,458,646 $778,166,268 $320,546,538 $1,039,701,535 $2,221 $365,081,769 $5,284,126,220 $4,039,279,767 $238,599,285 $1,619,041,964 $177,627,445 -$36,176 $530,615,095 $3,522,223,618 $361,604,329 $4,161,400,341 $132,368,882 $70,444,865,578 $338,393,763,269 $408,838,628,847

$1,259,640,223 $771,914,287 $599,925,580 $572,982,745 $486,561,035 $412,945,577 $395,969,873 $389,504,178 $365,429,599 $353,490,633 $350,104,082 $295,646,031 $286,146,237 $285,239,077 $276,696,923 $262,969,876 $236,632,592 $221,613,077 $213,606,837 $212,207,867 $209,563,974 $206,932,378 $200,868,821 $199,673,074 $198,315,866 $9,264,580,442 $9,320,227,469 $18,584,807,911

5.18% 63.26% 15.35% 4.17% 30.61% 40.37% 54.68% -27.18% 45.43% 109.22% 28.44% -78.13% 5.24% 6.51% 99.18% 13.69% 120.26% -39.49% 5.88% 55.55% 4.80% 149.82% 13.15% 2.75% 4.55%

Data Source: The National Association of Insurance Commissioners, Kansas City, Mo., by permission. Information derived from an SNL product. The NAIC and SNL do not endorse any analysis or conclusion based upon the use of its data. 12 | INSURANCE JOURNAL-NATIONAL December 15, 2014

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NATIONAL COVERAGE

Business Moves

EPIC, Greyling EPIC Insurance Brokers and Consultants, a retail property/casualty insurance brokerage, has acquired Greyling Insurance Brokerage & Risk Consulting Inc., a specialty insurance broker and risk management consultant based in Atlanta, with locations in St. Louis, Mo., and Tampa, Fla. Founded in 2005 by David Collings and Gregg Bundschuh, Greyling serves four industry sectors across the country: architects and engineers, contractors, environmental firms and law firms. Terms of the deal were not disclosed. The firm will operate as Greyling Insurance Brokerage — a division of EPIC. Headquartered in San Francisco, EPIC partnered with The Carlyle Group in December 2013. Since then, EPIC has completed six acquisitions/purchases, adding nearly 300 employees in 12 new locations across the United States. FBinsure, Gramlich Insurance Agency FBinsure, an independent insurance agency based in Taunton, Mass., announced its acquisition of Gramlich Insurance Agency, an independent agency in New Bedford, Mass. Terms of the transaction were not disclosed. Ray Gramlich, president of Gramlich 14 | INSURANCE JOURNAL-NATIONAL December 15, 2014

Insurance Agency, will be staying on with FBinsure to run New Bedford operations, manage the transition of Gramlich Insurance Agency to the FBinsure brand, and continue to work with his 1,400 clients. With the addition of Gramlich Insurance Agency, FBinsure has seven locations throughout Massachusetts’ Bristol and Plymouth counties including offices in Taunton, Attleboro, Middleboro, Dighton, Rehoboth, East Freetown, and New Bedford. FBinsure is an independent insurance agency, partnered with Bristol County Savings Bank, that provides personal and commercial insurance services. FBinsure has 80 employees and a client base of more than 20,000 personal and commercial clients. USI, Holmes Murphy USI Insurance Services has acquired the Saint Louis, Mo., operation of Holmes Murphy. The business and its employees will join USI’s Saint Louis office. Terms of the deal were not disclosed. The acquired business was established in 1995 and was followed in 1996 with the acquisition of Corporate Benefit Strategies, a locally owned insurance broker. The practice provides employer insurance benefits and property/casualty programs for personal and commercial customers. This acquisition strengthens USI’s presence as a leading middle-market insurance brokerage and consulting firm in the Midwest region, and complements USI’s range of commercial property/casualty, employee benefits, personal risk services and retirement consulting offerings, the firm stated. In total, USI Insurance Services has more than 140 offices throughout the United States.

York Risk Services, RMPG York Risk Services Group Inc., a Parsippany, N.J.-based provider of claims management, managed care, risk management and specialized loss adjusting services, has acquired Risk Management Planning Group (RMPG) in Mineola, N.Y. The terms of the transaction were not disclosed. RMPG provides claims and risk management services for workers’ compensation and also offers a disability benefits insurance program. York Risk Services Group said RMPG’s focus on construction, healthcare, real estate and hospitality — along with its strong presence in the New York marketplace — would support York’s effort in providing customized services to specialty markets. York Risk Services Group is a provider of risk management, claims handling, specialized loss adjusting, managed care, pool administration, loss control and other insurance services. York provides risk management and managed care services to a variety of strategic partners, including insurance carriers, self insureds, brokers, wholesalers, MGAs, programs, risk pools and public entities. North Risk Partners, Thune Insurance Network St. Paul, Minn.-based independent insurance brokerage, North Risk Partners, has merged with Thune Insurance Network, located in Northwest Minnesota with offices in Thief River Falls, Roseau and Baudette. The merger has resulted in North Risk Partners’ growth to more than 150 employees and approximately $400 million in annual written premiums. Headquartered in Thief River Falls, Thune Insurance Network is a 40-year-old, independent agency employing 25 insurance professionals. The agency offers an array of personal and business risk management products, including commercial, home, auto, farm, health, life, disability, dental, vision, long term care, and more. North Risk Partners is a privately held, www.insurancejournal.com

150-employee insurance brokerage based in St. Paul, Minn. The brokerage has four independently operated agencies: St. Cloud-based Apollo, Rochester-based C.O. Brown, St. Paul-based Johnson McCann and Thief River Falls-based Thune. North Risk Partners also has multiple satellite locations across the state, including offices in Baudette, Roseau, Alexandria, Albany, Melrose, Monticello, Lake City, Mankato, Red Wing and Hastings. The firm provides risk management solutions in the areas of business insurance, employee benefits, and personal insurance, with additional support in the areas of human resources, loss control and wellness. AmTrust Financial Services, CorePointe Insurance Co. AmTrust Financial Services Inc. has entered into a definitive agreement to acquire Birmingham, Mich.-based CorePointe Insurance Co., a wholly owned subsidiary of CorePointe Group LLC. The

cash transaction is subject to regulatory approval. Established in 1964 CorePointe is a specialty property/casualty insurance company that markets commercial package insurance products primarily to automobile and motorcycle dealerships and auto repair shops. The majority of CorePointe’s insurance products and services are distributed through managing general agencies that have had long-standing business relationships with CorePointe. In 2013, CorePointe profitably generated $53.7 million in net earned premium. AmTrust Financial Services Inc., a multinational insurance holding company headquartered in New York, offers specialty property/casualty insurance products, including workers’ compensation, commercial automobile, general liability, and extended service and warranty coverage through its primary insurance subsidiaries rated “A” (Excellent) by A.M. Best.

Victor O. Schinnerer, SeaFire Insurance Services Victor O. Schinnerer & Co. announced an agreement to acquire SeaFire Insurance Services, a Kansas-based managing general underwriter focused on providing property/ casualty solutions for the auto dealership and auto repair market. All of SeaFire’s leadership and employees will join Schinnerer and will remain in their current Overland Park, Kan., location. Dennis Kane, president of SeaFire, will continue to lead the business. SeaFire’s product offering includes garage liability, property, pollution, auto physical damage and umbrella liability written through several insurers. The acquisition is part of Chevy Chase, Md.-based Schinnerer’s broader strategy to continue growing its specialty P/C portfolio, which already includes solutions for oil and gas contractors, loggers, and public entities, in addition to specialty products like builders risk, the firm stated.

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SPECIAL REPORT

10 Things to Know About Charitable Giving Young, single women without a religious affiliation give twice as much to charity as their unaffiliated male peers. — Women Give 14; Women’s Philanthropy Institute, Lilly Family School of Philanthropy, Indiana University

Americans gave $335.17 billion to charities in 2013, a 4.4 percent increase from 2011. — National Philanthropic Trust

In 2013, 98.4 percent of high-net-worth households donated to charity, compared to 95.4 percent in 2011. — 2014 U.S. Trust® Study of High Net Worth Philanthropy, in partnership with the Indiana University Lilly Family School of Philanthropy

Thirty-five- to 44-year-olds are most likely to volunteer (30.6 percent); 20- to 24-year-olds are least likely to volunteer (18.5 percent). — U.S. Bureau of Labor Statistics

Volunteers — both men and women — spent a median of 50 hours on volunteer activities during the period from September 2012 to September 2013. — U.S. Bureau of Labor Statistics

Individuals were the largest source of charitable giving in 2013 ($241.32 billion or 72 percent of total giving), the average annual household charitable contribution was $2,974. — National Philanthropic Trust The average dollar amount given to charity by wealthy donors rose 28 percent, from $53,519 in 2011 to $68,580 in 2013. — 2014 U.S. Trust® Study of High Net Worth Philanthropy, in partnership with the Indiana University Lilly Family School of Philanthropy

Young, single women (44 and under) without a religious affiliation give two-and-a-half times more money to charity than middle-age and older, single women who are religiously unaffiliated. — Women Give 14; Women’s Philanthropy Institute, Lilly Family School of Philanthropy, Indiana University

The volunteer rates for both men and women (22.2 percent and 28.4 percent, respectively) declined the year ending in September 2013. However, women volunteered at a higher rate than did men across all age groups, educational levels and other major demographic characteristics. — U.S. Bureau of Labor Statistics

16 | INSURANCE JOURNAL-NATIONAL December 15, 2014

Nineteen percent of social media users say they would likely donate money to a charity if they saw a friend’s post about a recent donation. Only 3 percent say social media is an effective way for a charity itself to request a donation. — American Red Cross Holiday Poll; Survey date — Oct. 16-19, 2014

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The Charity Issue The Spirit of Life: P/C Insurance Industry Helps Find a Cure for Cancer By Andrea Wells

year’s honoree, Steve DeCarlo, CEO of AmWins Group Inc. The Spirit of Life Award dinner, held Sept. 12, 2014 in Atlanta — the night before the start of the National Association of Professional Surplus Lines Offices annual conference opened in Atlanta — garnered more than $2.7 million in funds. The 2013 event raised $2.1 million while the 2012 event raised $984,000.

he past year will be remembered as a special year for the City of Hope and its insurance industry supporters. The industry, which has been supporting the cancer treatment and research center for 36 years, broke all fundraising records in its annual dinner for the City of Hope this year — reaching $2.7 million in funding. For more than 100 years, the City of Hope has led the way in medical breakSteve DeCarlo, CEO, AmWins Group Inc., accepting the Industry Support throughs for the treatment of tuberculosis, 2014 City of Hope Spirit of Life Award. The support of AmWins — and cancer, diabetes, HIV-AIDS and other cer six years ago. “Every one of us has been DeCarlo — were instrumental in the suclife-threatening diseases. Today, City of touched by cancer in some way so it’s deficess, Birkett said. Hope stands as one of only 41 comprenitely a cause that everyone can get behind,” “It wasn’t just one guy or one company hensive cancer centers in the nation as he said. but it was an entire group coming together designated by the National Cancer Institute It helps that giving is rooted in AmWins’ as a whole,” he said. “We were sold out a for its role as a leader in patient care and corporate culture as well. DeCarlo says that month and half before the dinner and that’s research. employees participate in many charitable unheard of.” Patients, doctors, researchers, fundraisers fundraising efforts year-round — from $1 DeCarlo credits the record raised at this and volunteers are all united by a desire to donations for blue jeans or flip-flops on year’s Spirit of Life Award dinner to the save lives. “Every discovery we make and Fridays (which the company matches) to more than 3,000 employees at AmWins and every new treatment we create gives people golf tournaments, bowling and basketball his partners in the insurance industry who the chance to live longer, better and more events to community-oriented grassroots rallied behind him to support the cause. fully,” the group says. charity events — all of which are support Today, in addition to its big dinner, In 1978, a group of insurance industry ed by top leaders. NIIC organizes other fundraisers across executives set out to develop City of Hope’s DeCarlo, a 33-year-veteran of the insurthe country including Hoops for Hope in National Insurance Industry Council ance industry, has led AmWins since 2000. five cities (Los (NIIC). Through Under DeCarlo’s leadership, AmWins has Angeles, Chicago, the NIIC, the grown to become one of the largest propSan Francisco, insurance industry erty/casualty insurance wholesalers in the Des Moines and joined more than United States since its formation in 1998. Philadelphia) and 20 other industry The firm has more than 100 locations across the Strike Out groups supporting 18 countries, including 78 in the U.S. Cancer Bowling the City of Hope in “We are lucky enough to be in an indusEvents in Atlanta its quest for cures. try that thrives through recessions and proand Tampa, Fla. In its 36-year hisvides great jobs,” DeCarlo said. “And we are Giving is part tory, the NIIC has lucky enough to realize that we should give of the DNA of raised more than Researchers at the City of Hope in Duarte, Calif. back in many different ways.” AmWins and suc$24 million. The The NIIC is comprised of representatives cess is in the DNA of an insurance broker, Spirit of Life Award dinner is the center of of prominent life, property/casualty compaaccording to DeCarlo. the NIIC’s annual fundraising efforts. nies, law firms, brokers, accounting firms, “We are sales professionals and it’s in our This year’s annual Spirit of Life Award reinsurers, executive placement firms and DNA that when you do it, you do it well,” dinner broke records in campaign donaactuaries in the insurance industry. With he said. “We are not afraid to ask because tions, according to Ken Birkett, director of active Midwest, Dallas and Atlanta commitwe are brokers.” development, City of Hope. “It was the best tees and council members from across the The mission of City of Hope is also close year in the history of the NIIC,” he said. U.S., the NIIC spans the nation. to DeCarlo’s heart. He overcame throat canThe success was in large part due to this www.insurancejournal.com

December 15, 2014 INSURANCE JOURNAL-NATIONAL | 17

SPECIAL REPORT

The Charity Issue How Agents and Brokers Help Communities Worldwide Jeans Fridays

The Charity Challenge: Marsh Minneapolis

Indiana-based Black & Ramer Insurance supports a program called Jeans Friday. On Fridays, employees wear jeans and donate to a different charity each month. The owners then match what employees donate for the month. They love to keep it local and recently helped paint a home with other volunteers for one of the agency’s clients.

Each summer, Marsh & McLennan Agency’s Minneapolis office challenges its carriers to donate to Children’s Hospitals & Clinics of Minnesota and College Possible. In 2014, the office added St. David’s Center for Child and Family Development to the mix. Employees donate as well. All donations receive a 30 percent match from Marsh & McLennan.

Cal’s Angels Illinois-based Crum-Halsted Insurance contributes in many ways but one special annual effort supports an organization founded by one of its own employees. After Tom Sutter, Crum-Halsted’s vice president of sales, lost his 13-year-old son to cancer in August 2006, his amily started a pediatric cancer organization, called Cal’s Angels, to grant the wishes of kids fighting cancer and to financially assist their families. The agency is also a partner with the Feed My Starving Children Program, where employees spend time packing and shipping food.

Specialty Insurance Managers Inc. Austin, Texas-based Specialty Insurance Managers Inc. employees assist in everything from serving meals at Angel House Soup Kitchen and Ronald McDonald House, participating in the Susan G. Komen Race for the Cure, collecting donations for troop care packages, performing annual random acts of kindness and adopting grandparents who could use an extended family.

Chicago: Alper Services Chicago’s Alper Services LLC has been committed to many organizations since 1966. In 2014, the staff supported the Susan G. Komen Foundation, Lambs Farm, Chicago Gateway Green, Leland School, UCAN, La Rabida Children’s Hospital, Orchard Village and New Hope Center. For the first time in 2014, Alper sponsored its own team in the Avon Walk for Breast Cancer on Mother’s Day. This was the fourth year that Alper collaborated with insurance carrier Chubb to prepare Thanksgiving turkeys and gift baskets for families from two nonprofits. As the year drew to a close, Alper partnered with its client Weinstein Meats in collecting toys for 300 school children at George Leland Elementary School.

18 | INSURANCE JOURNAL-NATIONAL December 15, 2014

The Family Place: South & Western Brighton, the South & Western Mascot, is seen here sitting proudly in front of employee-donated Christmas gifts for the Family Place, in Dallas in 2013. The Family Place provides victims of family with safe housing, counseling and skills that create independence while building community engagement and advocating for social change to stop family violence. www.insurancejournal.com

Philadelphia Day of Giving

Wine & Wishes in Massachusetts

More than 800 members of Greater Philadelphia’s insurance and risk management communities dispersed across the city and suburbs on Oct. 15, 2014, in the name of public service as part of the Insurance Society of Philadelphia (ISOP) and the Insurance Industry Charitable Foundation (IICF)’s second annual Philadelphia Day of Giving. Volunteers worked with more than 20 organization including the Red Cross, Cradles to Crayons, Habitat for Humanity, Manna on Main, the Food Trust, Girls Scouts of New Jersey, the Ronald McDonald House and the Police Athletic League. ISOP teamed up with the Philadelphia Fire Department to install smoke detectors in one of the sections of the city. Over the past two years, ISOP has raised more than $100,000 to purchase the smoke detectors.

For the second year in a row, the Young Agents Committee of Massachusetts Association of Insurance Agents & Trusted Choice has sponsored Wine & Wishes, a fundraiser for Make-A-Wish MA & RI. Wine & Wishes, a wine and spirits tasting event, brings together young professionals from the Boston area to raise money and learn more about the Make-A-Wish mission. This year’s event brought together 180 people and raised $45,000 — enough to grant six wishes to children with life-threatening illnesses in the coming year.

Mary’s Kitchen, Veteran’s Administration The Insurance Professionals of Orange County (IPOC) works all year to collect donations (money and goods) for Mary’s Kitchen in Orange and Long Beach VA Hospital. Members collect and donate toiletries, gently-used clothing, sleeping blankets, backpacks and other items. The IPOC collects items from insurance agencies and companies for a Dec. 15 delivery to both charities.

Arrowhead General Insurance Agency Haiti Orphan Project Shortly after the catastrophic earthquake that devastated Haiti in January 2010, founder and president of the Keane Insurance Group, John Keane, traveled to the areas hardest hit to see how he could help. What he found among the rubble was thousands of orphaned children. John created the Haiti Orphan Project (HOPE) as a way of helping these children. Since 2010, the HOPE foundation has built an orphanage, a school, a clean water well, and a medical clinic all on the same property, called “Village de Vie” (Village of Life). The project was funded by HOPE but was built by Haitians, giving them meaningful work and an income. Keane Insurance Group regularly makes trips to Haiti with employees and others. The firm’s next initiative is to develop industry that will provide Haitians training for job skills as well as income.

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San Diego-based Arrowhead General Insurance Agency Inc. and sister company American Claims Management Inc. teamed up in late 2013 to form a Charity Committee designed to get employees involved in community volunteering. Through the committee’s efforts, employees have cooked meals, cleaned up beaches, organized clothing drives and held bake sales, and taken trips around the globe to help rebuild devastated communities.

Fresh Water in Uganda California-based Alonzo & Small Insurance Agency has been on two mission trips in recent years to Uganda, helping to dig wells for villages that previously had diseased water.

December 15, 2014 INSURANCE JOURNAL-NATIONAL | 19

NATIONAL SPECIAL COVERAGE REPORT

News & Markets The Charity Issue Hometown Agency Heroes Good Samaritan Saves a Life

nsurance agents are known for protecting the lives of their clients by making sure they have the right insurance coverage when disaster strikes. But not many insurance agents can say that they literally saved a life. Geoff Sterner, owner of Genesis Insurance Group Inc. based in Fort Worth, Texas, part of Goosehead Insurance (formerly TWG Insurance), witnessed a woman choking and no one was doing anything about it. “It was a situation that required immediate action, and for some reason others were just watching instead of jumping in,” Sterner said. Sterner was attending a fundraising

event for the local association of REALTORS at the Fort Worth Stock Show and Rodeo when Leigh York, a broker with CENTURY 21, began choking. Someone in the crowd screamed Sterner’s name. “That is what initially got my attention. Why they thought of me as the person that could remedy this I will never know,” Sterner said. “I am just thankful I could be in the position to help at a time of need.”

“Lots of people were staring at me and pointing but no one was helping,” York said. “It was very surreal. I was at the point where my brain was telling me that I was losing consciousness when I felt someone reach around me and lift me up. Geoff did save my life.” York began breathing and Sterner walked away. “I didn’t see his face until almost an hour later. I had to ask someone else who it was that saved me. I found him and now we’re friends,” York said. Sterner attributes his knowledge of the Heimlich manuever to his third grade class. “For whatever reason it stuck.”

Heffernan serves as a board member for Vision of Hope, Collective Impact (a nonprofit he founded to serve underprivileged middle school kids living in public housing in San Francisco), as well as PreCare, Patra, the Scudder Roofing Advisory Board, and the Heffernan Foundation. In 2006, he launched Heffernan Foundation to serve nonprofits that provide direct services in the areas of shelter, food, education and the preservation of the environment. Annually, Heffernan employees volunteer 5,000 hours to community causes and are also offered employer-matching of charitable contributions. Heffernan gave more than 10

percent of profits to charity in 2013. New to 2014, Heffernan sponsored a “Family Give Back Saturday,” where all offices have the opportunity to participate with their families in a park or beach cleanup. There’s also the “Dollars for Do-ers” program (volunteer 50 or 25 hours for a nonprofit, and Heffernan will donate $500 and $250, respectively).

Heffernan: Giving Back

alnut Creek, Calif.-based Heffernan Insurance Brokers has been involved in the community since its inception in 1988. In 2013, Heffernan donated more than 10 percent of its profits to charity and averaged $1,650 in donations per employee. Heffernan’s charitable efforts start at the top. F. Michael Heffernan, president and CEO, is a firm believer in giving back. He formalized the agency’s Charitable Giving Program in 2002. The program incorporates volunteerism, funding and education. He has been named as a Top Corporate Philanthropist every year since 2003. “By providing employees with the chance to participate during the work week, he consistently sends a positive message. We are a fortunate group of people who are encouraged and nurtured in the workplace and have a chance to pay it forward,” wrote one employee at Heffernan. At the suggestion of a co-worker and in light of the success of Bat-Kid SF, this year Heffernan began a new endeavor – Make-aWish for Children.

20 | INSURANCE JOURNAL-NATIONAL December 15, 2014

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Rich & Cartmill: Secret Santa & More

ulsa, Okla.-based Rich & Cartmill Inc. supports its community in many ways. Two of the most prominent examples include its support of Joy in the Cause and serving as a Secret Santa for needy families at an elementary school for more than a decade. Joy In The Cause provides care, compassion, and joy through one personal act of kindness at a time, according to director, Lisa Bain. The nonprofit delivers care packages daily to patients with life altering illness or special needs. “Rich & Cartmill Inc. have truly been heroes in every sense of the word to some very special kids that we work with,” Bain said. Bain’s charity partners with a Tulsa nonprofit Tulsa called Little Lighthouse, a tuition-free Christian developmental center for children with special needs, ages birth to six years old. Every month Joy In the Cause volun-

teers visit these children and bring a special therapy dog named Mavis Pearl. She is a tutu-wearing English Bulldog the kids love. Mavis Pearl has her very own stuffed Mavis Pearl blessing dog with handmade outfits. These dogs are sponsored and sent out to patients. In the last year Rich & Cartmill employees have not only volunteered to help Joy In the Cause make stuffed dog outfits on their lunch breaks, but also sponsored a stuffed Mavis dog to be delivered to every child at Little Lighthouse. “The smiles and joy these little stuffed dogs brought to these kids was indescribable,” Bain said. “They also helped Joy In

the Cause bring a Christmas celebration to these special kids. They sponsored a special book and stuffed animal for each child.” Bain said: “We are truly overwhelmed with their giving and support. They are hands on! They help in the smallest of ways and the biggest. From dressing a little stuffed dog to sponsoring so each student could receive a gift....they are givers and heroes in every sense of the word.”

Larrabee, communications specialist at The IMA Financial Group Inc. Clarkson recently decided that she wanted to do more to help children. As a result and against challenging odds, she was recently approved to adopt another son — a 10-year old boy from Linyi, China. Shen Jie, who was given the American name of Joshua Lawrence Shen, “Josh” for short by his four siblings, was born with a treatable form of spina bifida called Meningocele. Adopting another child meant time away from work. For Clarkson’s boss, missing a few days at the job didn’t matter. “We have all hired people through the years that we feel can make a difference with our clients,” said Mike Whipps, president of IMA. “I think it is much harder to find a person who can truly make a difference in some-

one’s life. Or in this case, multiple lives!” In Clarkson’s view, she’s the real winner. “What’s really amazing is that these great kids continue to have hope even after starting life with nothing,” she said. “I think I am the luckiest woman in the world to be given the chance to be their mom and watch them grow. It is the best thing that has ever happened to me.”

IMA’s Jan Clarkson

an Clarkson, an account executive in the professional liability practice at Kansas City-based IMA Inc., has more in her life than insurance. A lot more. Clarkson is a mother — a 60-year-old single mother of five adopted children. She had been raising three daughters (Joy Lee, 14; Julia Lin, 12; and Jennifer Lian, 10), and a few years ago adopted again — a 7 year old boy (Joseph Louis Cheng, now 10) with physical disabilities. All of Clarkson’s children were adopted from China and arrived in the states without being able to speak any English. “Jan worked tirelessly with her children to help acculturate them to their new country, and she devotes all her time and energy to them — ensuring that any setbacks or disabilities are not a hindrance to their development and ability to lead full and happy lives,” wrote Erin

continued on page 22 www.insurancejournal.com

December 15, 2014 INSURANCE JOURNAL-NATIONAL | 21

SPECIAL REPORT

The Charity Issue continued from page 21

Celedinas: Supporting Autism

n June 2014, a CDC study reported that 1 in every 68 children living in the United States has autism spectrum disorder (ASD). This study served as an eye-opener to just how many individuals and families are affected by autism on a daily basis. One of those individuals was Celedinas Insurance Group’s Kyle Henderson. After his son, Foster, was first diagnosed with ASD in 1999, Henderson decided to do everything in his power to enhance the life of his son and others affected by the disorder. That’s when he became involved in the Autism Project of Palm Beach County (APPBC), a parent-driven organization striving to not only provide the tools and services for children and families directly affected by ASD, but also heighten public awareness and inform their opinions.

member of the board of directors. Henderson’s involvement with APPBC led him to enrolling his son and sitting on the board of the Renaissance Learning Center while Foster was still in middle school. During that time he helped open the Renaissance Learning Academy in 2009, a local charter school for grades 9-12 dedicated to education, job training and tailored therapy programs for young adults with At the time, the APPBC had only been in existence for three years and the local ASD community was still lacking a centralized location for education, support and service necessary for these children and families. Henderson became involved in the organization, co-chairing the Annual Food & Wine Festival, creating golf tournaments, and he continues to help grow the organization as a

ASD. Whether he’s in a wetsuit helping children catch a wave with Surfers for Autism, swinging a club at the Els for Autism golf challenge series, or throwing on his sneakers for a 5K supporting the Rooney Foundation, on the weekends, Henderson is actively supporting the cause.

Crescent Cove Children’s Hospice

he need for hospice care for children in Minnesota prompted one employee of Minneapolis-based Hays Cos. to help his wife develop a non-profit dedicated to building a place for the families of children with life-limiting conditions. “Families of children with life-limiting conditions are thrown into extremely challenging situations that were never expected. Their lives are changed forever,” says Katie Lindenfelser, executive director of Crescent Cove, a nonprofit dedicated to building a children’s hospice home. Matt Christensen, a property/casualty marketing technician in the Minneapolis office, assisted his wife, Katie with founding Crescent Cove in 2009. Katie and Matt established the organization after Katie spent time in Melbourne, Australia, at a children’s hospice and recognized what a gift this place was for children with life-limiting conditions and their families. Crescent Cove — while still in the 22 | INSURANCE JOURNAL-NATIONAL December 15, 2014

development fundraising stage — will be a family-focused place of short respite breaks beyond the traditional hospital or home environment to offer physical and emotional respite. It will offer therapy rooms and family suites. It is designed so that families may stay together while enjoying a temporary vacation from the constant demands of caregiving. It will be the first of its kind in the Midwest and only the fourth to be built in the United States. There are about 40 hospice homes for children in the world, while there are more than 4,700 to serve adults. With the support of the Harmon Killebrew Hospice Home for Kids Fund, Crescent Cove is now close to its fundraising goal and closer to making this dream a

reality for the Minnesota community. Today, outside of his time at Hays Cos., Matt spends 15 hours a week as Crescent Cove’s secretary of the board and assisting with business operations, running financial reports, building the network, interviewing board members and helping to fundraise. Hays Cos. supports Crescent Cove. It is one of the top corporate sponsors at the annual Crescent Cove Galas and handles the the organization’s insurance. www.insurancejournal.com

Getting Local with the Insurance Industry Charitable Foundation

he Insurance Industry Charitable Foundation (IICF), established in 1994, helps communities by uniting the collective strengths of the industry to provide grants, volunteer service and leadership. Since its inception, IICF has contributed more than $23.5 million in grants to local community nonprofits across the nation. In addition, IICF volunteers have contributed nearly 200,000 volunteer hours to hundreds of community nonprofit organizations through its annual Week of Giving. Here’s a look at what IICF’s regional divisions are doing to make a difference in local communities nationwide.

IICF West Loves Elmo, Reading and Helping The IICF has a long history on the West Coast and the charitable group says it has plans to continue to expand in size and influence in coming years. Next year through its 2015 Community Grant Awards IICF will be awarding $254,000 to 29 nonprofits across the Western region. Grants range from $5,000 to $25,000. The 2015 goal is a 27 percent increase over this year, and it’s a great deal more than the first year of grants in 1994, when $20,000 was raised for charities in the West, according to the group. The eventual goal is to grow that to closer to a half million dollars over the three to five years, representatives of the IICF Western division say. “It is truly impressive to have witnessed the growth and expansion of IICF,” said Melissa-Anne Duncan, executive director of IICF’s Western division. “What started as a small, local grassroots efforts has become a united, national movement. IICF has grown substantially in industry awareness, participation, and community impact and over the past few years.” IICF’s Western division has thrown its weight behind “Every Day is Reading and Writing Day,” a partnership between IICF and Sesame Street Workshop, the nonprofit organization behind Sesame Street. www.insurancejournal.com

teams of insurance industry Earlier this year the volunteers provide threegroup staged an event at plus hours of volunteer the Central Library in service at neighborhood and downtown Los Angeles to community nonprofit orgaencourage local parents to nizations. read to and talk to their Upcoming IICF events children. The effort is in 2015 in the West include: in response to the wide Arizona Fundraising gap in literacy rates that Event – Feb. 19; Club100 prevails between children Dinner, Los Angeles of high and low-income – March 19; Colorado families, according to the Bowling Tournament – groups. April 9; CAPP Educational The Insurace Industry Forum, Walnut Creek, Charitable Fund was Calif. – April 16; Central first established in San Volunteers from the IICF’s Western Francisco in 1993. Ten years Division came out in record numbers for Valley Golf Tournament Week of Giving 2014. More than 1,700 – April 17; Casino Night, later it had grown to be volunteers across Arizona, California, San Francisco – May 14; the Insurance Industry Colorado and Oregon took part in a variety of projects ranging from a beach ITC Golf Tournament, Charitable Foundation. clean up to sorting donations at a local Orange County – Sept. 22 In 2008 the California food bank. Twenty employees from G.J. Sullivan Co. spent an afternoon plan(tentative); and San Diego division became the ning a vegetable garden and beautifying Bowling Tournament – Oct. Western division with the grounds of Seneca’s Canyon Acres 1 (tentative). Wells Fargo as the founder. Ranch, a therapeutic facility assisting neglected and emotionally troubled “Giving back to our local The Colorado chapter was children and their families. communities is the core of founded in 2011, and in 2012 IICF’s work,” Duncan said. “As such, we conthe Arizona chapter was founded. tinue to work towards even larger awards in Within California, IICF’s Western division the coming years.” — Don Jergler has a multitude of fundraising groups and steering committees. Those groups include the San Diego Steering Committee, the Newest IICF Division – Texas Insuring the Children Program in Orange Southeast – Sets Record in Annual County, the Central Valley Steering commitFundraising tee and the Child Abuse Prevention Program The newest division of the IICF — the in the East Bay. Texas Southeast Division — is breaking There’s also the associate board, a group records after just two years in operation. of roughly 30 emerging professionals that Launched in 2012, the Dallas-based diviis split between Northern California and sion serves Texas and the Southeast region of Southern California. The board holds its own the United States. fundraising events and projects throughout Each division determines its own grant the year, as well as supports larger IICF focus areas, grant guidelines, events and goals. volunteer activities. The Texas Southeast In the Western division giving is focused Division targets its grants program toward on education, child abuse prevention, disascharities that support at-risk children, educater preparedness and health and human tion and veterans. services. The division’s signature event, Lone Star The group’s Week of Giving is an eight-day Legends Benefit Dinner, set to take place industry-wide volunteer event during which continued on page 24 December 15, 2014 INSURANCE JOURNAL-NATIONAL | 23

SPECIAL REPORT

The Charity Issue continued from page 23 Joining together as Feb. 5, 2015 at the Omni an industry in the Texas Hotel in Dallas, is already Southeast region is helping breaking fundraising insurance industry donors records thanks to this “get the most bang for our year’s honoree — President buck in our local commuGeorge W. Bush, says Sarah nities,” Henry says. Conway, executive direc “When we get together tor, IICF Texas/Southeast as an industry and pool Division. our resources we can be “We are honored to have a much more meaningful former President Bush join contributor to local charius as a special guest. The ties,” he says. “It’s one thing generosity of the industry to write a check for $1,000 and our sponsors will conas MHBT to a charity; it’s tribute to this being the As part of IICF Week of Giving, volunteers in the Texas-Southeast Division at another thing to write a most successful dinner to the Oak Cliff Branch of the Dallas Public check for $50,000 to a local date. We have already triLibrary engaged in activities including charity as IICF.” — Andrea pled our fundraising efforts puppet-making, reading, bookmark making, writing letters, and computer Wells from the last two years, games with over 500 children from raising about $750,000 so far low-income families. Industry volunteers showed kids that reading could be through sponsorships and IICF Northeast Has fun while exposing them to new words and ideas. table sales for the dinner.” Awarded Over $4.5M All proceeds from the in Grants Since 2007 event go directly to charities, and as of press The IICF Northeast Division got started time, the dinner had only 28 tables left. in New York City in late 2007 as IICF’s first Each year, the division awards eight to 10 expansion outside the West Coast. Since grants, but Conway says this year’s fundraisthen, the division has endeavored to improve ing efforts will enhance the grant program in communities in the Northeast through 2015. “We are really excited about that.” grants, volunteer services and leadership. Behind the fundraising effort is a “giving” The IICF Northeast Division’s primary board of directors, Conway added. fundraiser is its annual benefit dinner. At the helm is Board Chair Bill Henry, This year, the event was held Dec. 10 at the president of McQueary Henry Bowles Troy Waldorf Astoria Hotel in New York City LLP. Henry has served as the board chair and was on track to pull in more than $1.2 since its launch in 2012. million. The dinner “celebrates the collective Today, the IICF Texas Southeast Division good work of the insurance industry,” said includes 26 board members consisting of Lisa Tepper, chair of the Northeast Division industry leaders from agencies, carriers and board and regional president, Downstate associations, as well as an associate board New York/New Jersey, at Travelers. of younger industry professionals. It just “It offers one more chance this year for us launched a new chapter in Atlanta, as well. to help others,” said Tepper. Henry says starting a new division of IICF Last year’s dinner provided nearly $1 milhas been extremely gratifying. “To see how lion in grant funding to charities. generous the industry is and to see the hearts The event features celebrities who speak of our industry not only coming together to on behalf of charities they personally supgive money but to get out and work together port. CBS Evening News anchor and 60 on some of these projects over the last three Minutes Correspondent Scott Pelley, former years makes me really proud,” Henry says. New York Yankee Bernie Williams and The fact that donations raised through actress Bridget Moynahan are a few of this the division stay local is important. “We are year’s speakers. trying to give back to our local communities.” Since 2007, the Northeast Division has 24 | INSURANCE JOURNAL-NATIONAL December 15, 2014

awarded more than $4.5 million to charities in the New York-New Jersey-Connecticut tristate region and plans to award $839,000 in additional grants in January. The Northeast Division’s grant focus areas are education, health for at-risk children, disaster preparedness and the environment. All of the grants are at least $50,000. The division also continues to expand. It started with 15 board members and now has 41. They represent insurance companies, brokers, reinsurers, companies that serve the industry and industry nonprofits. The division launched its first chapter in Boston two and a half years ago and that now has 26 board members and many other volunteers, said Elizabeth Myatt, executive director of the Northeast Division. The Northeast Division saw a big turnout for the Week of Giving this past October with more than 2,200 volunteers in the Northeast, with 900 of those volunteers coming out from Philadelphia, said Myatt. In addition, the division started an associate board of younger professionals in New York this year and will start an associate board in Boston in January 2015. Tepper, chair of the Northeast Division board, said that last August, IICF also hosted its first New York City insurance intern networking event. “The goal of the IICF Northeast Division volunteers leant a hand at the Somebody Come event was to and Play exhibit at the New York Public give the interns Library for the Performing Arts exhibit celebrating Sesame Street’s 45th annibetter inforversary. mation about careers in the industry and to provide them with networking opportunities,” said Tepper. In June 2015, IICF will hold its Women in Insurance Global Conference in New York. This conference series began in 2013 in New York and drew more than 425 attendees from organizations across the world. The IICF organized four separate Women in Insurance Regional Forums this past June in Chicago, Los Angeles, New York and Dallas. — Young Ha www.insurancejournal.com

IICF’s Midwest Division Aiding 25 Local Non-Profits The IICF has been blazing a trail in the nation’s heartland since the launch of its Midwest division in Chicago in 2011. It also has a chapter in Cleveland. Kimberly Saccaro, executive director said the Midwest division’s focus is on education, safety and health. Specifically, the Midwest group supports educational organizations that ensure high school grads are prepared to earn college degrees, charities working to end homelessness and programs to assist victims of domestic abuse. They also target programs that promote access to healthy food and that offer ways for people to get active. The Midwest chapter has supported more than 75 non-profits since its inception, Saccaro said. In 2014, the foundation chapter will grant funds to 25 charities. While each division holds its own annual fundraising dinners on a different date, the

goals of each division are one and the same — dollars raised in each division are distributed via grants to charities in the region. The Midwest division’s annual event — Blazing the Trail — focuses on fundraising for its grant program. Each year the group follows a decade in the history of the Midwest. The next event to be held on March 12, 2015, will be the fourth and will be held at the House of Blues in Chicago. This year, the chapter launched an associate board. “It’s for professionals that have been in the industry for about 10 years, generally speaking, that are up and coming leaders in their organizations,” Saccaro said. “The idea is that we can start to get them comfortable with philanthropy, working with philanthropy and understanding the value of it so when they become executives within their respective companies they can carry that forward.” The associate board has its own fundrais-

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The IICF Midwest Division raises funds for four local nonprofits at the second annual Rock for Charity Battle of the Insurance Bands.

ing and awareness building events to encourage those in the industry to be philanthropic and to volunteer or donate. In 2015, the chapter will encourage board member companies to volunteer throughout the year with the Early Literacy Initiative started by the IICF. In addition, the IICF plans to host another national women’s conference in 2015 that focuses on leadership development. — Denise Johnson

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December 15, 2014 INSURANCE JOURNAL-NATIONAL | 25

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International Insider Environmental Liabilities in Europe: Changing Times

istorically, U.S. companies doing business in Europe weren’t likely to list environmental litigation among their major concerns. While the United States has boasted a robust regulatory environment for some time, Europe has traditionally been perceived as lagging behind — but that appears to be changing. Recent environmental legislation by the European Union (EU) and increased By Kathleen Ellis & enforcement among its member states means that U.S. businesses would be well-advised to stay abreast of European environmental trends and consider steps to help protect themDavid Barr selves against potential claims, which could be financially devastating. In April 2004, the EU adopted legislation known as the Environmental Liability Directive (ELD), designed to protect the environment by holding businesses responsible for both preventing and remedying environmental damage. The ELD recognizes three types of environmental damage: damage to protected species and natural habitats, water damage, and land damage. The underlying principle of the ELD is that “the polluter pays.” By 2010, all EU-member states had officially signed on to the legislation and incorporated it into national law. Although there have been a number of prosecutions under the ELD, we have not yet seen a dramatic uptick in enforcement action. This is partly due to the relatively recent implementation of the ELD, but also because in some countries such as the United Kingdom, there was already an established framework of environmental legislation, under which regulators have

continued to take enforcement action, required to compensate for damages by rather than under the ELD. improving an alternate location or habitat, The ELD is perhaps of most significance which is known as “complementary remeto those companies (referred to as operadiation.” tors) that are engaged in certain relatively For example, if a chemical spill pollutes hazardous activities that are listed in the a stream, the company held responsible ELD, particularly those situated close to may be tasked with bringing the stream protected habitats and species. Such activiback to its pre-spill (or baseline) condities can include: tions. If that isn’t possible, the company • Waste management; might have to move the remaining fish to • The manufacture, handling or transa nearby stream or undertake some other portation of hazardous chemicals; and works of equivalent environmental value. • Business operations subject to emis Companies may also be required to comsion control legislation as well as pensate for the temporary loss of resources those involved in handling and transand/or services as a result of the damage portation of genetically-modified — providing drinking water to residents organisms (GMOs). after groundwater has been polluted, For those operators, for example — and to the ELD applies on a In the U.K., landowners cover the assessed cost “strict liability” basis “interim losses” sufmay be held responsible of — it is not essential fered by the environment for the cost of cleaning until remediation is fully to establish whether the operator has been accomplished (known as up pollution that they negligent or at fault. did not cause, including “compensatory remediaHowever, all compaacts of vandalism or the tion”). nies, irrespective of the In fact, cases have negligence of tenants. already been brought nature of their activities, may well be strictagainst companies in ly liable for cleaning up pollution under Europe. In 2009, for example, the British other local, environmental legislation. company United Utilities was held respon For example, in the United Kingdom, sible for water pollution that killed an landowners may be held responsible for estimated 6,000 fish and damaged a threethe cost of cleaning up pollution that they mile stretch of a waterway in the northdid not cause, including acts of vandalwest of England. The Environment Agency ism or the negligence of tenants. And of fined United Utilities £14,000 (about course, even where environmental pro$22,000) and, under the ELD, required the tection procedures appear to be adequate, company to repair the damage and also incidents can still happen. undertake compensatory remediation — Under the ELD’s “precautionary prinwhich could prove far costlier than the ciple,” companies are required to be profine. active with respect to environmental risk U.S. companies can help protect themmitigation. A company can be held liable if selves against this and other types of its actions create an “imminent threat” of environmental liability by considering the environmental damage and it hasn’t put in following steps. place procedures to prevent that damage. If a company damages the environment, Keep abreast of developments. it is legally required to remediate it. If It’s important to have an understanding the environment can’t be brought back to of potential environmental liabilities under baseline conditions, the company may be the ELD, but it’s even more crucial to be

26 | INSURANCE JOURNAL-NATIONAL December 15, 2014

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aware of trends in the implementation of the legislation. Keep in mind that individual countries are permitted to enact stricter regulations than those laid-out in the ELD. Find out what regulations are in place in the country or countries in which the insured is operating and whether those regulations are likely to be enforced. Consider environmental liability insurance. In Europe, general liability policies typically provide very limited insurance protection for pollution incidents and no insurance for habitat damage under the ELD. Companies need to assess their potential environmental exposures; consider the legal and public relations expenses they may incur should a claim arise; and work with their agents or brokers to determine whether to purchase an environmental liability insurance policy. A good policy should extend to gradual pollution and include insurance for losses triggered by the ELD, including emergency and preventative measures that may need to be taken and procedures, like pollution prevention, to avoid or reduce environmental damage reporting and response, to make sure that that has not yet occurred, but the threat of they are adequate to prevent incidents of it happening is imminent. environmental damage. Environmental Companies should also work with their risk managers should be insurance broker to ensure U.S. companies operating in working closely with that their Europe must make a diligent other departments such as finance and facilities environmental liability insur- effort to protect themselves management, especially if improvements are going ance program against potentially costly to necessitate significant complies with environmental claims. expenditures or site disrupEU-member tion. In addition, corporate counsel should states legislation, including the use of be familiar with EU environmental laws, local policies in countries where non-adincluding the ELD and the specific regulamitted insurance is not permitted. Such tions of the country or countries in which an approach also offers the benefit of business is being conducted. accessing local underwriting expertise and claims-handling services. Consider the community. One of the least predictable compoLook broadly at potential environnents of risk, and often the most difficult mental exposures. to manage, is a company’s relationship Given the risks involved, it’s crucial that with the local community, especially in a company’s environmental risk manager high-profile operations — such as land(or any employee with those responsibilfills, incineration facilities and other waste ities) examines the company’s existing management activities. Under the ELD, environmental risk management processes www.insurancejournal.com

affected communities, as well as citizens and environmental groups, have legal standing to request that the authorities pursue companies causing environmental damage. Even where adequate controls are in place to reduce environmental risks, nearby communities may still perceive the risks to be high, potentially increasing concerns. That makes it essential to be aware of any local concerns and to establish lines of communication with neighbors before problems escalate into claims. For now, some European regulators have tended to take a pragmatic, rather than a punitive, approach to environmental issues. That, of course, could change at any time, which makes it critical that U.S. companies operating in Europe make a diligent effort to protect themselves against potentially costly environmental claims. Ellis is the multinational solutions manager at the Chubb Group of Insurance Cos. Email: Kellis@ chubb.com. Barr is European manager for Chubb Environmental Solutions in London. Email: dbarr@chubb.com.

December 15, 2014 INSURANCE JOURNAL-NATIONAL | 27

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The Charity Issue Making Giving Work: How to Get the Most From Charitable Donations

ost companies want to support charitable and civic organizations and causes. At the same time, the stream of donation requests can be overwhelming, particularly because no one likes saying no. Plus, the pressure comes from all sides — customers, politicians, employees, friends and associates. Everyone seems to By John Graham have a favorite charity. And businesses are the most visible targets for support. Like any other aspect of a business, when charitable giving isn’t managed, it goes out of control. To avoid this, here are five ideas to make in-kind and cash charitable contributions work for both worthy projects and organizations and your company. 1. The value of strategic giving. Making random donations is a recipe for disaster. With this type of giving, your company is “lost in the crowd,” one of often hundreds of donors. Although most businesses are concerned about the number of checks they write and the total amount of annual donations, they don’t assess the value of making random donations, often considering it a business necessity. While making a number of smaller donations may be necessary, there’s a more effective way to benefit from charitable support, and that’s by treating it as you would any other business investment — doing it strategically. One way to start is by forming a small group of employees that has an interest in the company’s community support, starting by sharing with them the company’s current amount of cash and in-kind charitable support. You can point out that you want to be sure the company uses its resources wisely when it comes to contributions, just as it does with all its funds.

One of the most effective ways to accomplish this is by aligning your business with a primary charitable partner that reflects your company’s values and resonates with your customers. There’s an important step to take before making a commitment, and that’s vetting the potential nonprofit recipient to make sure it’s a responsible organization and a good fit. Having found a good match, you may want to become its primary sponsor so that when someone thinks of “The Great Kids Club,” they think of you. When this occurs, the charity becomes more involved with your company and you become more engaged with it. Your employee committee can help with this task by talking to and researching various organizations and then evaluating the findings. In the process, these employees become “ambassadors” by communicating their interest to others in the company. The committee may narrow the search to perhaps three possibilities and then meet with the employees, share their findings,

28 | INSURANCE JOURNAL-NATIONAL December 15, 2014

and then have everyone vote on which one would be most deserving of the company’s support. The organizations that are being considered will undoubtedly want to win your support and will make an effort to put their best foot forward by indicating what they would do to help make the company’s support as worthwhile as possible. Because these groups know the value of publicity, they will let you know how they can use public relations to carry your company’s message to their members and the public. 2. Establish a written charitable giving policy. Because management is responsible for every aspect of the business, that includes your donations. It’s up to you to put a process in place that lets you manage the company’s gifts effectively. Your charitable giving policy might include a statement about your commitment to the community, the types of projects and organizations you support, when and how you go about making deci-

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sions, what you expect from those who are requesting a donation, and the amounts of typical gifts. It’s helpful to have this posted on your website so inquiries can be directed to it. In addition to cash contributions, think about how you can leverage in-kind services utilizing your company’s resources, which can include giving your employees the opportunity to take part in charitable projects and events, such as road races, serving on charitable boards, tutoring school kids, helping to prepare and serve meals for those in need, transporting senior citizens and others to events, along with dozens of other possibilities in the community. Make sure you provide participants with career wear-type clothing that identifies your business. Because tax deductibility is one of the benefits of making charitable donations, you want to be sure that your gifts qualify. This means a nonprofit organization must have been granted 501c3 status by the IRS. Otherwise, your contributions will not be tax-deductible. The laws are complex and benefits vary by corporate structure, so be sure to consult with your accountant before proceeding with a major commitment. 3. Make your giving process known. Sharing how you go about making donations indicates that you take charitable and community support seriously. Always ask for written proposals so you’re totally clear about each request. The employee committee can review requests and make recommendations. Thank everyone making requests immediately, letting them know your process or telling them that the request is outside your charitable focus. Then, prepare a plan for making known your giving policy to employees, customers and the community through your marketing and sales efforts. Don’t be shy about it. You want charitable organizations to make their needs known. 4. Build a relationship with your giving partners. Sending a check can be meaningful, but taking a sustained interest in a charitable www.insurancejournal.com

organization is even more valuable and can play an even more effective role in helpsends a clear message that your company ing to meeting community needs. really cares. Needless to say, this view of charitable By “getting involved,” you and your giving won’t make much sense to those who employees will find ways, other than giving believe that a company’s donations are a money, to be of help, such as providing matter that rests in the hands of those who management advice, run the business and bringing a new voice Sharing how you go about who literally “hand to agency issues and making donations indicates out the checks.” plans, etc. — in in a that you take charitable and time ofHowever, other words, by ever increasbecoming a valuable community support seriously. ing transparency, resource. Today, the more and more custalk is about “partnering.” Many times, it’s tomers want to be confident that the comjust meaningless corporate jargon. However, panies they do business with have a genuine you can give genuine meaning to “partner” sense of community responsibility. To put by making it your goal to act like one. it bluntly, customers see through pompous, self-serving business behavior. They want 5. Create your own non-profit. to believe that companies they do business At some point you may want to take yet with are motivated to make charitable another step in community support by setdonations out of a genuine commitment to ting up your own nonprofit. This requires the quality of life in the communities they going through the process of obtaining serve. 501c3 status from the IRS. In this way, you can make requests for support that are Graham of GrahamComm is a marketing and sales tax-deductible for those causes you feel best consultant and business writer. He publishes a free represent your business values. monthly eBulletin, “No Nonsense Marketing & By managing the growth of your corpoSales.” Contact him at johnrg31@me.com, 617-774rate responsibility programs, your business 9759 or www.johnrgraham.com.

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NATIONAL COVERAGE

MyNewMarkets Alarm Companies Market Detail: AMIS Alliance Marketing and Insurance Services (www.amisinsurance.com) offers general and professional liability coverages including: bodily injury; personal injury; property damage; blanket additional insureds; waiver of subrogation; theft; errors and omissions; and lost key coverage. Coverage is available for any size account including one-man operations, national risks, new businesses and established accounts. Available limits: Minimum $300,000, maximum $5 million Carrier: Unable to disclose, non-admitted States: All states Contact: Sean Nowell at 800-843-8550 or email: snowell@amiscorp. com

Oil & Gas Pipeline Inspection Tools Coverage Market Detail: Transpac Managers Inc.’s (www.transpacmgrs.com) pipeline inline inspection tool insurance covers the replacement cost of scheduled tools while they are inside the pipeline during a pre-approved pipeline inspection. The tools can be covered for loss or damage while inline during an inspection. Inspection tools main loss event is damage due to tools becoming stuck in the pipeline.

Available limits: As needed Carrier: Unable to disclose, admitted States: All states Contact: Customer service at 214-346-1512

Non-Profit Human Services Market Detail: Empire Pacific Sovereign LLC (www. SovereignBrokers.com) offers all lines for this class, including: property; general liability; D&O; commercial auto; and workers’ comp. Available limits: As needed Carrier: First Nonprofit States: Ariz., Colo., Idaho, Mont., N.M., Nev., Texas and Wash. Contact: Gary Hargis at 503-968-6300 or gary.hargis@empirepac.com

When you need coverage for a client’s specialty risk, Safehold has your solution. Whether it’s builders’ risk or a sports venue, insuring special risks requires extensive experience, knowledge, and a commitment to helping you succeed. At Safehold Special Risk, we’ve brought the best of the specialty insurance world together to better serve our clients, and we represent some of the most respected, “A” rated, admitted carriers in the industry, as well as excess and surplus carriers. We focus on building cost-effective, customized solutions for a wide range of niche markets. From quoting to binding and issuing a policy, our process is accurate, quick, and done with the highest level of personal service.

Visit us at www.safehold.com or call us at 1-800-842-8917 and see how we can help you succeed. Products and services are offered through Safehold Special Risk, Inc., dba Safehold Special Risk & Insurance Services, Inc. in California, a non-bank insurance agency affiliate of Wells Fargo & Company. Coverage is provided by unaffiliated insurance companies, with the exception of crop and flood insurance, which may be underwritten by Safehold Special Risk, Inc.’s affiliate, Rural Community Insurance Company. © 2014 Safehold Special Risk, Inc. All rights reserved. WCS-1215717 (09/14)

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30 | INSURANCE JOURNAL-NATIONAL December 15, 2014

10/21/14 11:02 AM

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Growing Your Property Casualty Agency It’s Time to Think and Act Like a Startup — Again

t’s almost the New Year and that means a fresh start for every independent agent. But it’s not just the calendar that needs to begin again; your agency needs to as well. It needs to reimagine itself as a startup business, with all of the enthusiasm, creativity, and energy that it By Alan Shulman entails. Stay Hungry Continuous renewal commissions are the building blocks of the agency business, but they can also mask the need for unceasing motion. Agencies must keep prospecting, selling and renewing to stay alive. Being satisfied with your current volume and your present income isn’t the pathway to growth, it’s a direct line to retirement. Instead of passively living off renewals and referrals, stay just hungry enough to do what’s necessary to keep your business actively growing. There are many ways to accomplish this, including using an asset that every agent possesses, his or her occupational imagination.

Be Imaginative Get Fired Up The power of imagination has kept the Sure, insurance is a conservative business. agency system intact for more than a cenBut this doesn’t mean you have to be overly tury. The sales and marketing creativity of conventional. Startups seldom act this way the independent agent is truly stunning. and neither should you. Start the new year What makes it so amazing is that there is thinking of new ways to add new business. no product to display Look for undersold to potential buyers, insurance products and offer The sales and marketonly a promise. So, them to new classes of prosing creativity of the other than the obvious pects. Target your marketing ethical, legal, and errors independent agent is efforts instead of being a truly stunning. and omissions (E&O) quote-anything generalist. considerations, resist Cross-sell and upsell what’s imposing limits on your office’s promotional needed by your current insureds to help activities. This limit-free attitude is how them — and yourself. startups drive themselves forward. Evaluate the vitality and drive of your staff. Inspire and train them in new techThink Like a Startup – Again niques and technologies. Keep them fresh and motivated just like the employees of Independent agencies compete against startups. Explore new compensation formultiple rivals, every day, and for nearly mulas so they can share in the growth they every renewal. It’s why you need to think help to spawn. and act like an imaginative, newborn entity. Re-examine your carrier representation. Startups are the essential drivers of Work with companies that financially and change. These brand new enterprises, while emotionally support your marketing and mostly small, have grandiose dreams. They sales efforts. Reconsider representing those imagine fresh ways to solve existing probwho actively compete against you. lems (using technology and other tools) and Pay heed to the growth of digital comfrequently do so on a shoestring or crowdmunications, marketing and service. Make sourced budget. Such nascent operations sure your website is contemporary and are seldom satisfied until they achieve their goals, even if they are unrealistically optimobile-friendly. Consider the value of buying a mobile app. Kick-up your social media mistic. presence. These firms characteristically charge ahead, using all of the resources and per Don’t just limit yourself to the digital sonal connections at their disposal, to toolset. There are other effective ways to prospect, to open new doors, to build stand out in today’s endlessly competistrong proposals, and to close more sales. tive marketplace. Don’t feel archaic if you enjoy using the traditional and tangible. The tools you use to market and sell are never as important as the results. It’s how startups succeed and how grown-ups continue to grow. Shulman is the publisher of Agency Ideas, a subscription-only sales and marketing newsletter. He is also the author of the many tools posted on the Agency Ideas Instant Download Store. Phone: 800-724-1435. Email: alan@agencyideas.com. Website: www.agencyideas.com.

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December 15, 2014 INSURANCE JOURNAL-NATIONAL | 31

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Minding Your Business Do You Need an Agency Manager?

Your first inclination ongratulations! You are an excellent might be to promote that salesperson and your business is growseasoned CSR to manage ing. You first hired a customer service reprethe staff. Sometimes that sentative (CSR) to support you as you added works. But usually, the new business. You might have brought on agency’s best CSR is now a part-time bookkeeper. Sales continued to not working with clients, grow. Next, you hired but instead handling a personal lines agent management duties and to close those sales administrative work (and calls that keep coming usually becomes frusin. You close your eyes, trated). Often, the mantake a deep breath agement of the business and all of a sudden will still not be handled you have five, seven, By Catherine Oak & unless you do it. Or you or even 10 or more might dump all the manemployees. You have agement onto the bookkeeper to handle. a thriving business. Unfortunately, they usually don’t have the What now? same passion for the business that you have. You still like sales. There comes a time when you need to You enjoy the interachire someone to focus on the management of tion with your clients. the entire business — an agency manager. It is still enjoyable An agency manager is someone that will when a marketing rep Bill Schoeffler oversee all of the strategic functions of the tries to schmooze you. agency, such as the management of the firm’s Although frustrating, finances, oversee the in-house office operayou get a sense of accomplishment when the tions, supervision of employees, manage and underwriter sees things your way. track the sales team, assist in implementing But wait. Are you already stretched too agency marketing plans, oversee IT and all thin handling your own clients and cannot business operations in accordance with stanfind the time to effectively manage your dard business practices. agency? What about picking a 401(k) plan administrator? An agency manager The agency manager Remember to notify the state is someone that will works with and supports the agency principals to about the new employee. define priorities, develops Why can’t those salespeople oversee all of the teamwork among members, manage themselves? Do your strategic functions and helps lead the agency eyes glaze over when you are of the agency. in fulfilling its mission of looking at your business’s serving the insurance and risk management financials? Do you feel like you are just putneeds of your clients. The agency manager ting out fires and not actually “managing” will systemize the management of your your business? business, so that you will be able to manage There might come a time in the lifecycle more with less effort and in less time. The of your agency when either the size and agency manager handles the management complexity of your agency are beyond your roles that the owners do not have the time capability, or you just are not that good at or desire to handle. managing a business. It is OK. You are not expected to do it all. There comes a time Who is an Ideal Agency Manager? when you will need professional help to First, they should have experience workmanage your business. 32 | INSURANCE JOURNAL-NATIONAL December 15, 2014

ing in an insurance agency. It does not matter the role, but they need to have seen what goes on in an insurance agency. Next, they need to have great (not OK) time-management. Time is more valuable than money and they leverage their time exceptionally well throughout each day. This means they have attention for detail, while keeping their eye on the big picture. They focus on the staff and customers. They know it is not about them. They understand people and what motivates them. A great manager will take the time to learn about the people on their team and their values. The bottom-line is that they have great interpersonal skills and great communication skills. It is important that they are effective delegators. They cannot try to do it all themselves, or, dump it all onto the staff. Instead they delegate with a proactive thought process that is empowering for staff members, while reserving the true management tasks for themselves. They are consistent in how they handle issues. They do what is right each and every time. Employees become rightfully indignant when a manager applies varying sets of rules. This behavior caused low morale and employees will push to be the exception to the rule. A great agency manager will be clear and consistent in their management approach. www.insurancejournal.com

Agency Manager Role

he role of the agency manager can include:

Financial Management • Oversee the agency bookkeeping. • Establish and maintain fiscal responsibility for annual budget. • Establish and maintain systems and procedures to provide accounting controls over assets, liabilities, revenue and expenses. • Approve expense accounts and spending. • Enforce agency credit terms. • Approve expenditures. • Provide leadership in developing organizational and financial plans with the agency principals. Operational Management • Develop standards, procedures, guide Finally, agency managers must have a solid understanding of the financial aspects of the business. They must appreciate and establish appropriate financial objectives that are consistent with the agency’s overall profitability goals. They also must be able to set and monitor budgets, monitor and document progress, and implement changes as needed. It is not easy to find such a person. It’s important not to look at where a candidate has been, or what roles they had. Instead, focus on their personality and their skills. Look at their character traits. It is better to have someone with the ideal temperament and let them learn on the job than to have someone with the “right” experience, but poor execution of the job. Other Options In some cases, it might make sense for the owners to still retain some of the management and bring in a part-time agency manager. The agency might not be big enough to justify hiring a full-time person to run the business. Oak & Associates has developed a program called Virtual Agency Manager, www.insurancejournal.com

lines for effective processing of all lines of business. • Establish policies and procedures to provide administrative support services in an economical, uniform and timely manner. • Develop and maintain a high-caliber management staff to ensure continuity of effective agency operations in a natural progression for all key positions. • Develop a staff and producer training plan, including authorizing staff to attend seminars and classes for knowledge and skill development. • Hire, promote and fire agency employees. • Approve agency payroll increases with standards and guidelines. • Coordinate and control all bulletins to producers and staff. • Approve job charter and organizational changes. • Oversee personnel operations with the which is a service to provide guidance and prioritization to managing your business. This service focuses on the agency management tasks that would otherwise slip through the cracks in your agency.

support of agency’s human resources consultant to maintain state and federal compliance. Improved Automation Usage • Supervise onsite computer network consultant. • Streamline use of computers so that the service and sales staff use similar functions. • Improve reports and their usage. Sales Management • Assist with market relationships and placement of business. • Oversee producer activity and sales results. • Create sales activity and performance reports. • Develop an operating plan with market analysis forecast/budget and objectives for improvement and continuing analysis of the agency. tasks. The astute business owner will recognize the point where they need assistance in managing the business. So, in order to be successful, you might find you will need to do less management and hire someone else to fill in the gaps.

Summary As a business owner, you should focus on what you do best. Most owners are the firm’s best producers and growth is also very important. The key is in order to run your business, like a business, you need to have qualified people handling all the various

Oak is the founder and Schoeffler is a consultant for Oak & Associates, an international consulting firm specializing in valuations, financial management, and mergers and acquisitions for the insurance brokerage industry. Email: catoak@gmail.com. Phone: 707-935-6565. Website: www.oakandassociaties.com.

Advertisers Index

Readers, browse, contact, or do product searches on any of our full page advertisers at: www. insurancejournal.com/adshowcase/ Applied Underwriters www.auw.com Burnett & Company www.bcoinc.com CoreLogic www.corelogic.com CSUF Center for Insurance Studies www.centerforinsurancestudies.com Heffernan Insurance Brokers www.heffins.com IICF www.iicf.org Insurance Technologies Corp. www.insurancewebsitebuilder.com

2, 36 SC7 25 W3 29 35 13

MyPath www.theinstitutes.org 3 PersonalUmbrella.Com www.personalumbrella.com 5 Safehold www.safehold.com 30 South & Western www.southandwestern.com SC5 Texas Mutual Insurance Company www.texasmutual.com SC2,SC3 The Hartford www.privatecompanyinsurance.com 8, 9 The Institutes www.theinstitutes.org 7

December 15, 2014 INSURANCE JOURNAL-NATIONAL | 33

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Closing Quote

Evolving Regulation and Its Impact on Insurers’ M&A Strategies

I By Grace Vandecruze

t appears that the insurance industry is having an easier time emerging from the financial crisis than entering the new regulatory environment, particularly as it relates to nonorganic growth. With increasingly healthy balance sheets, insurers face what may historically be the most dramatic changes in regulation and regulatory authorities. These changes are having a profound impact on the strategic and operational initiatives of the industry. Regulatory changes are widely regarded as the largest uncertainty that overhangs the industry, impacting valuation as well as strategic and operational decisions of insurers. Verging on Radical Transformation For nearly 150 years, states essentially regulated the U.S. insurance industry. The status quo was dealt a major blow with the 2010 Dodd-Frank law, which ushered in an unrelenting pace of regulatory changes, including federal and international regulators asserting greater levels of oversight for the industry. The Dodd-Frank Law created the Financial Stability Oversight Council (FSOC) with authority to identify nonbank financial institutions whose failure “could pose a threat to the financial stability of the U.S.” The International Association of Insurance Supervisors, a vol-

34 | INSURANCE JOURNAL-NATIONAL December 15, 2014

untary membership organization of insurance supervisors and regulators from more than 200 jurisdictions in nearly 140 countries, is developing a risk-based global Insurance Capital Standard (ICS) to be implemented by 2019. The FSOC has applied the “systemically important financial institutions” (SIFIs) classification to AIG, Prudential and MetLife. Dodd-Frank also empowers the Fed to regulate certain insurance companies that own savings and loan institutions. Consequentially, the central bank is positioned to become the consolidated regulator of some of the nation’s largest insurers. There is competition among state and federal regulators vying for hegemony of the regulatory oversight of the insurance industry. As the balance of regulatory powers shift from state to federal and international authorities, and insurance regulations mirror more bank-centric capital requirements, insurers are adjusting to the increased compliance cost and higher levels of required capital. So what might the oversight battle mean for insurers? Several themes are emerging from the changing landscape, including a post-crisis aversion climate, low equity market valuations and additional powers for regulators. Post-Crisis Aversion Climate Merger and acquisition transactions are generally viewed as one of the more risky strategic initiatives. Consequently, there is a much longer gestation period for transactions as insurers look closely at strategic fit as well as regulatory and integration issues during the due diligence process. Low Equity Market Regulatory changes are Valuations widely regarded as the Property/casualty insurers and life insur- largest uncertainty that ers are trading at 1.23x overhangs the industry. and .99x book value, respectively, according to SNL. These low valuation levels, with little catalyst for higher stock price performances, remain a significant obstacle to consolidation activity. Additional Powers for Regulators The Dodd-Frank law extends the responsibilities of regulators to include: anti-money laundering, fair lending and the issue of deceptive practices. The insurance industry emerged from the financial crisis relatively unscathed, yet the aftershocks still reverberate, resulting in increasing regulation and a chilling effect on large-scale M&A activity. Vandecruze is a founder and managing director of Grace Global Capital LLC, an advisory firm to insurance regulators and companies.

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Save the Date! IICF Women in Insurance Global Conference returns to New York City, June 17 – 19, 2015

Empowered to Change – Women in Insurance Global Conference 2015 In June 2013, the Insurance Industry Charitable Foundation (IICF) launched the Women in Insurance Conference Series with the first multi-day global conference directed to women in the insurance industry. In June 2014, IICF hosted four one-day regional women’s forums. Over 1,300 professionals representing 33 states and over 200 companies attended. The response has been overwhelming, and the series continues.

Explore, Network, Enrich...and Grow

www.womensconference.iicf.org

Expect big things in workersâ&#x20AC;&#x2122; compensation. Expect to save a third of your clients 30% or more. Most classes approved, nationwide. For information call (877) 234-4450 or visit auw.com/us. ÂŠ2014 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best. Insurance plans protected U.S. Patent No. 7,908,157.