Insurance Journal West 2018-12-17 by Insurance Journal

WEST REGION California Firenado Explained Cannabis Coverage in California Comp Insurer Return on Net Worth

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Contents December 17, 2018 • Vol. 96 No. 24 • West

West

W1 Deadly California ‘Firenado’ Explained in New Study

W1 DEADLY CALIFORNIA ‘FIRENADO’

EXPLAINED IN NEW STUDY

W4 Chiropractor in California Pleads Guilty in $150M Workers’ Comp Fraud Scheme

National 8 9 Month Results Show Big Profit for P/C Insurers: A.M. Best 10 Commercial Lines Insurance Prices Up Slightly in 3Q 2018 Over 2017

W4 Report: Return on Net Worth for California Workers’ Comp Insurers Rose

10 Insurance Fraud Hall of Shame Inducts 9 Scammers 13 Pros and Cons of the Rise of Online Insurance Platforms: Geneva Association

Idea Exchange

10 COMMERCIAL LINES INSURANCE PRICES

UP SLIGHTLY IN 3Q 2018 OVER 2017

W3 Covering Cannabis in California 30 The Wedge: Should You Hire an Appointment Setter?

14 Closer Look: State Specialist P/C Insurers Identified for 2018 16 Special Report: Pink Agenda Wins Big When Broker Exec Laces Up for His First Marathon

33 Take Corporate Citizenship to the Net Level with Coalitions

17 Special Report: Insurance Educator Shares BBQ Talents with Firefighters, Friends and Neighbors

37 Minding Your Business: The 12 Days of Good Personnel Management

18 Special Report: Annual IICF Week of Giving Puts ‘Face on Insurance’

38 Closing Quote: Core Beliefs in a Rapidly Changing Industry

20 Special Report: A Desire to Leave the World Better Than He Found It: C.V. Starr 22 Special Report: The Charity Issue – Photos of Giving

Departments W2 People 9 Declarations

INSURANCE EDUCATOR SHARES BBQ TALENT WITH FIREFIGHTERS, FRIENDS AND NEIGHBORS

4 | INSURANCE JOURNAL | WEST DECEMBER 17, 2018

9 Figures 11 Business Moves 35 MyNewMarkets INSURANCEJOURNAL.COM

HUMAN SERVICES PROTECTION NON - PROFIT/ FOR PROFIT

MILLIONS OF PEOPLE SERVED. 1 SHARED RESPONSE.

PHLY helps ensure that our Human Services customers continue to gain positive feedback from the millions of people they serve. We offer customizable package policies, along with superior customer service, and a free risk management plan toolkit to help meet the ever growing needs of non-profits.

A.M.Best A++ Rating Wardâ&#x20AC;&#x2122;s Top 50 2001-2018 96.2% Claims Satisfaction 100+ Niche Industries

Call 800.873.4552 Or visit ThinkPHLY.com/HumanService Non-Profit /For Profit Human Services I Mental Health I Substance Abuse I Home Health Care I Home Medical Equipment Philadelphia Insurance Companies is the marketing name for the property and casualty insurance operations of Philadelphia Consolidated Holding Corp., a member of Tokio Marine Group. All admitted coverages are written by Philadelphia Indemnity Insurance Company. Coverages are subject to actual policy language.

OPENING NOTE

Write the Editor: awells@insurancejournal.com

Why We Give Back

Publisher Mark Wells mwells@wellsmedia.com

EDITORIAL

SALES

Editor-in-Chief Andrea Wells awells@insurancejournal.com

West Sales Dena Kaplan (800) 897-9965 X115 dkaplan@insurancejournal.com

East Editor Elizabeth Blosfield eblosfield@insurancejournal.com

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Chief Content Officer Andrew Simpson asimpson@insurancejournal.com

Southeast Editor/MyNewMarkets Amy O’Connor aoconnor@insurancejournal.com South Central Editor/ Midwest Editor Stephanie K. Jones sjones@insurancejournal.com West Editor Don Jergler djergler@insurancejournal.com International Editor L.S. Howard lhoward@insurancejournal.com Columnists Catherine Oak, Randy Schwantz

Chief Marketing Officer Julie Tinney (800) 897-9965 X148 jtinney@insurancejournal.com

South Central Sales Mindy Trammell (800) 897-9965 X149 mtrammell@insurancejournal.com Southeast and East Sales (except for NY, PA and CT) Howard Simkin (800) 897-9965 X162 hsimkin@insurancejournal.com Midwest Sales Lisa Whalen (800) 897-9965 X180 lwhalen@insurancejournal.com East Sales (NY, PA and CT only) Dave Molchan (800) 897-9965 X145 dmolchan@insurancejournal.com Advertising Coordinator Erin Burns (619) 584-1100 X120 eburns@insurancejournal.com

Contributing Writers

Barry Koestler II, Jeff Menary, Rachel Schoeffler, Brad Whatley

Insurance Markets Manager Kristine Honey (619) 584-1100 X132 khoney@insurancejournal.com

IJ ACADEMY OF INSURANCE Director Patrick Wraight pwraight@ijacademy.com

Social Media Manager Ly Short (619) 890-7735 Lshort@insurancejournal.com

Associate Director Nathan Granitz ngranitz@ijacademy.com

ADMINISTRATION

Chief Financial Officer Mark Wooster mwooster@wellsmedia.com

MARKETING

Marketing Director Derence Walk dwalk@insurancejournal.com Marketing Administrator Gayle Wells gwells@insurancejournal.com

NEW MEDIA

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DESIGN/WEB

Chief Technology Officer/ Chief Innovation Officer Joshua Carlson jcarlson@insurancejournal.com V.P. of Design Guy Boccia gboccia@insurancejournal.com Senior Web Developer Chris Thompson cthompson@insurancejournal.com

New Media Producer Bobbie Dodge bdodge@insurancejournal.com

Web Developer Jeff Cardrant jcardrant@insurancejournal.com

Videographer/Editor Ashley Waldrop awaldrop@insurancejournal.com

Web Developer Terrance Woest twoest@wellsmedia.com

nce a year, Insurance Journal editors have the pleasure of publishing the very best news in the industry – the news about good deeds given to the community by dedicated insurance industry professionals. We have enjoyed pulling together this special issue of Insurance Journal – The Charity Issue — that is filled with stories of charitable efforts by agents, brokers, wholesalers, carriers and other industry partners. It’s always a difficult task to narrow down the stories to a number we could fit in this report, but it was a welcome challenge. While the insurance industry financially supports many worthy causes year-round, insurance professionals often give much more than dollars. Sharing of money and time is not only important to the charity but also to the giver, says Bill Ross, CEO of the nonprofit IICF. “At the end of the day, giving back drives change within a community, and giving back to a community also drives change within an organization and the industry as well,” said Ross (see article on page 18). “We learn about a community, we see what their needs are, and we learn how to put our focus on that.” Industry professionals participated in hundreds of volunteer events in 2018. They spent thousands of hours volunteering for education, at-risk women, children and youth, the homeless and food insecure, adults and children with disabilities, military veterans, pet rescues, cancer research, health and human services, and other charitable causes. There are countless stories of good deeds done by insurance professionals and organizations, a number that goes well beyond those printed in pages of this special issue. Our web site InsuranceJournal.com will feature additional photos and stories of charitable deeds in the coming days and weeks. Please check it out. We hope you will be inspired like we have been by the industry’s generosity and kindness. We encourage all of our readers to give so that others who might be without this FOR QUESTIONS time of year enjoy a happier holiday season REGARDING SUBSCRIPTIONS: Call: 855-814-9547 and are blessed with renewed hope for a betOutside the U.S., call 847-400-5951 or you may subscribe or change your address online at: ter new year. insurancejournal.com/subscribe To all of you who have given and will give, Insurance Journal, The National Property/Casualty Magazine (ISSN: 00204714) is published semi-monthly by Wells Media thank you. Group, Inc., 3570 Camino del Rio North, Suite 200, San Diego, CA 92108-1747. Periodicals Postage Paid at San Diego, CA and at additional mailing offices. SUBSCRIPTION RATES: $7.95 per copy, $12.95 Best wishes for a happy holiday and a per special issue copy, $195 per year in the U.S., $295 per year all other countries. DISCLAIMER: While the information in this pubhealthy and prosperous new year … to all. lication is derived from sources believed reliable and is subject

‘We hope you will be inspired like we have been by the industry’s generosity and kindness.’

to reasonable care in preparation and editing, it is not intended to be legal, accounting, tax, technical or other professional advice. Readers are advised to consult competent professionals for application to their particular situation. Copyright 2016 Wells Media Group, Inc. All Rights Reserved. Content may not be photocopied, reproduced or redistributed without written permission. Insurance Journal is a publication of Wells Media Group, Inc.

CIRCULATION

Circulation Manager Elizabeth Duffy eduffy@wellsmedia.com

Andrea Wells Editor-in-Chief

6 | INSURANCE JOURNAL | NATIONAL DECEMBER 17, 2018

POSTMASTER: Send change of address form to Insurance Journal, Circulation Department, PO Box 708, Northbrook, IL 60065-9967 ARTICLE REPRINTS: For reprints of articles in this issue, contact: Kelly De La Mora at 1-800-897-9965 ext. 125 or kdelamora@wellsmedia.com Visit insurancejournal.com/reprints/ for more information.

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National

9 Month Results Show U.S. P/C Insurance Pivot to Big Profit: A.M. Best

he U.S. property/casualty insurance industry’s net underwriting income has so far swung from a massive loss in 2017 to substantial profit, according to an A.M. Best report. Carriers booked $3.5 billion in net underwriting income for the first nine months of 2018, A.M. Best said, versus a $21.2 billion underwriting loss over the same year-ago period. A.M. Best based its conclusion on companies’ nine-month 2018 interim statutory statements received as of Nov. 19, 2018. The data also covers 97 percent of total P/C industry net premiums written.

What drove the growth? A number of factors helped, including a jump in net premiums written of 11.3 percent versus the same period last year, plus flat loss and loss adjustment expenses, A.M. Best said. Premium increases also outpaced the growth in incurred losses and expenses, and the combined ratio improved by nearly seven points compared to the same period in 2017. The biggest factor in the U.S. P/C industry’s improved underwriting income: Catastrophe losses were at more normal rates in the first nine months of 2018,

8 | INSURANCE JOURNAL | NATIONAL DECEMBER 17, 2018

accounting for 5.1 points of the nine-month 2018 combined ratio. They took up 9.9 points over the same period in 2017, A.M. Best said. Net investment income also helped shape the U.S. P/C industry’s nine-month 2018 results, jumping $6.2 billion compared to the same period a year ago. Net industry income hit $49.1 billion for the first nine months of 2018, up $27.1 billion compared to the year-ago period. The full report is “A.M. Best First Look – Nine-Month 2018 Property/Casualty Financial Results.” INSURANCEJOURNAL.COM

Figures

$2.7 BILLION

$34

The total amount — $2.2 billion of which came from the federal government — that Texas has doled out to 71 state agencies to facilitate recovery from 2017’s Hurricane Harvey, according to a report released by the state Senate Finance Committee on Nov. 30.

Declarations PG&E Safety

“To operate the grid in a safe manner, PG&E must be able to sign contracts and raise capital.” — Michael Picker, president of the California Public Utilities

Commission, said utilities must be able to borrow money cheaply to properly serve ratepayers. His comments came as the regulator ordered the utility to implement safety recommendations while it investigates the cause of the Camp Fire, which some have feared could be linked to PG&E equipment.

Clean Water Protection

“People deserve access to clean drinking water, and this order is a significant step in our ongoing effort to protect North Carolina communities and the environment.” — North Carolina Department of Environmental Quality

Secretary Michael S. Regan. The state has proposed a consent order calling on Chemours’ North Carolina plant to reduce emissions of a potentially harmful chemical that has been found in drinking water, as well as pay a $12 million penalty.

$15,842.50

Arkansas Bus Accident

“On behalf of all Memphians, our hearts and prayers go out to the Orange Mound children and their families involved in this morning’s tragic bus accident in Arkansas.”

MILLION

— Memphis, Tennessee, Mayor Jim Strickland said in a state-

ment after one child was killed and at least 45 other people were injured when a charter bus carrying Tennessee’s Orange Mound Youth Association youth football team crashed before sunrise on Dec. 3 in central Arkansas, near Benton. The football team was traveling home after playing in Dallas.

Construction Falls

The amount a jury awarded 51 current and former residents of a Southern California mobile home park they say is rife with problems including sinkholes, sewage backups and rats.

$14 MILLION The settlement amount in a lawsuit filed by the family of Northern Illinois University student David Bogenberger, who was found dead in November 2012 at Pi Kappa Alpha, following a hazing event in which he and other pledges were forced to drink liquor. Bogenberger’s family sued the fraternity and sorority members present at the party. Nearly two dozen Pi Kappa Alpha members pleaded guilty to criminal charges in connection with his death. INSURANCEJOURNAL.COM

The amount in fraudulent workers’ compensation benefits that Jeffrey Smalt of Bath, N.Y., has been charged with collecting after claiming he was out of work due to an injury while continuing to work at his family’s farm. Employed by Bath Electric, Gas & Water when he was injured on the job in July 2017, he left the utility and began collecting workers’ comp. However, from December 2017 to May 2018, Smalt worked for his family farm while still collecting benefits, New York workers’ comp authorities said.

$7.6 MILLION The amount a West Virginia man was ordered to pay in damages to the family of a pedestrian killed in a hit-and-run accident. A jury issued the verdict in a civil suit against the 22-year-old driver, who was drunk and drove his pickup truck onto the sidewalk in Morganton, W. Va., killing a 20-year-old female college student.

“Falls are the leading cause of fatalities in the construction industry.” — James Mulligan, director of the Occupational Safety and

Health Administration’s (OSHA) Braintree, Mass., office, said after Northeast Framing Inc., a contractor based in Lunenberg, Mass., was cited for exposing workers to falls and other hazards following an employee’s fatal fall at an east Boston worksite in May 2018. The company faces $311,330 in penalties.

Distracted Driving

“This study helps to highlight that there is a need to improve traffic safety and road management.” — Phil Renaud, executive director of The Risk Institute at The

Ohio State University Fisher College of Business, commented following the release of a new study showing road design modifications can reduce the frequency and severity of distracted driving crashes. Researchers Zhenhua Chen and Youngbin Lym, assistant professors in city and regional planning at Ohio State, found that even the length of a roadway or number of lanes had an impact on the frequency of distracted driving crashes.

InsuranceJournal.com

Poll

How many paid volunteer services hours does your organization offer? 54.17% None, my company does not offer paid volunteer service hours 22.22% 1-8 hours are paid per year 12.5% 1-16 hours are paid per year 6.94% 1-24 hours are paid per year 1.39% 1-40 hours are paid per year 2.78% More than 40 hours are paid per year

DECEMBER 17, 2018 INSURANCE JOURNAL | NATIONAL | 9

NATIONAL | News & Markets

Insurance Fraud Hall of Shame Inducts 9 Scammers

Commercial Lines Insurance Prices Up Slightly in 3Q 2018 Over 2017

ommercial insurance prices in the U.S. increased by more than two percent in the third quarter of 2018, according to the Willis Towers Watson Commercial Lines Insurance Pricing Survey (CLIPS). The survey compared prices charged on policies written during the third quarter of 2018 to those charged for the same coverage during the third quarter in 2017. Price changes for most lines were similar to those reported last quarter. Three lines — commercial auto, commercial property and excess/ umbrella liability — showed material price increases. Workers’ compensation reported ongoing price reductions in contrast to all other surveyed lines. When comparing the survey results by account size, price changes were once again positive and of similar magnitude across

all segments. Mid-market and large account price adjustments caught up to the recently larger increases reported for small accounts. “A second quarter of meaningful price increases may signal a reaction to the much talked about emergence of unfavorable loss trends beyond auto,” said Ben Williams, director, Insurance Consulting and Technology, Willis Towers Watson. “As in the past, and perhaps not surprisingly, increases in small accounts seem to have acted as a leading indicator: Middle market and large accounts are catching up with larger increases this quarter.” CLIPS analyzes data from participants that represent a cross section of U.S. property/casualty insurers that includes many of the top 10 commercial lines companies and the top 25 insurance groups in the U.S.

10 | INSURANCE JOURNAL | NATIONAL DECEMBER 17, 2018

he Insurance Fraud Hall of Shame has inducted nine new members. The Coalition Against Insurance Fraud, a group of insurance, consumers and government organizations, reported the following inductees: Burning desire. Two firefighters died when a brick wall fell on them as they fought an arson fire. Thu Hong Nguyen set the blaze to burn her nail salon for insurance money in Kansas City, Mo. Driven to steal. A vast fraud ring run by Felix Filenger stole fully $23 million for bogus whiplash injury claims from real and setup car crashes in South Florida. Bribes for blood. The largest doctor bribery scheme in U.S. history saw chiropractor David Nicoll stealing more than $100 million. He bribed at least 38 corrupt doctors for false testing of blood samples in Parsippany, N.J. Toddler killer. Erica White poisoned her blind and deaf toddler Tyrael McFall to death for $50,000 of life insurance in the Atlanta area. Maladjusted adjuster. Public adjuster Jorge Fausto Espinosa burned and flooded dozens of homes for $14 million of inflated claims in South Florida. Damage was rigged to look like electrical problems, kitchen accidents and faulty water lines. Home arsonist floored. Firefighter Patrick Wolterman died when he fell through a seared floor while combating an insurance arson set by Billy Lester Parker and Billy Tucker in Hamilton, Ohio. Pain for profit. Homeless people were inflicted with painful and unneeded spinal injections. Detroitarea streets also were flooded with more than 4 million painkillers in a $300-million Medicare plot by Dr. Mishiyat Rashid. Unsober sober homes. Yury Baumblit ran unsafe flophouses that housed homeless people and addicts in the New York City area. He pushed many into unneeded drug rehab, forced some to take drugs, and evicted anyone who didn’t cooperate. Money addiction. Kirsten Wallace co-owned a corrupt sober home that stole the identities of addicts to overbill insurers in a $175-million insurance crime. While much of insurance fraud goes unreported, at least $80 billion in fraudulent claims are made annually in the U.S., the CAIF estimates.

INSURANCEJOURNAL.COM

West

Deadly California ‘Firenado’ Explained in New Study

rare fire tornado that raged during this summer’s deadly Carr Fire in Northern California was created by a combination of scorching weather, erratic winds and an ice-topped cloud that towered miles into the atmosphere, according to a study released at the beginning of December. The churning funnel of smoke and flame killed a firefighter as it exploded in what already was a vast and devastating wildfire in July on the edge of Redding, about 250 miles north of San Francisco. The wildfire claimed eight lives and destroyed more than 1,000 homes before it was contained on Aug. 30. The study in the Geophysical Research Letters journal used satellite and radar data to suggest how a monstrous “firenado” the size of three football fields developed on July 26. It said the firenado was formed in much the same way as a regular tornado, which INSURANCEJOURNAL.COM

differs from the “fire whirls” that are formed only by heat from a wildfire. The only other documented case of such a “firenado” was during the 2003 Canberra fires in Australia, according to the study. A key factor was the development of a cloud generated by the fire itself that was ice-topped and grew quickly, doubling in length in just 15 minutes. It reached as high as 39,000 feet, according to the study, which was published on Nov. 21. The development of that pyrocumulonimbus cloud “helped stretch the underlying column of air, concentrating the rotation near the surface” and causing tornado-strength winds that reached 143 mph, according to the study. “This paints a clear picture of the sequence of events leading to the vortex development and intensification,” said Neil Lareau of the University of Nevada, Reno, who co-authored the paper. Other factors included record high tem-

peratures, low humidity and a “near-surface cyclonic wind shear zone,” according to the study. A wind shear occurs when the wind speed or direction suddenly changes, so that the wind actually is blowing in two opposite directions. The wind shear near the ground set up the spin that developed the fire tornado plume, Lareau said. “These observations may help forecasters and scientists identify, and potentially warn, for future destructive fire-generated vortices,” according to the study. Lareau is an assistant professor in the Physics Department of the College of Science. The article was co-authored by Nicholas Nausler of the Storm Prediction Center in Norman, Oklahoma, and John Abatzoglou from the Department of Geography at the University of Idaho in Moscow, Idaho. Copyright 2018 Associated Press. All rights reserved.

DECEMBER 17, 2018 INSURANCE JOURNAL | WEST | W1

WEST | PEOPLE

Marcus D’Anna

Tami Singer

NAS Insurance Services LLC has expanded its senior management team with several new appointments, including naming Marcus D’Anna chief financial officer. D’Anna’s appointment as CFO comes after five years of service as a leader in the NAS accounting team. D’Anna is located in NAS’ Los Angeles Headquarters. Daniel Mogelnicki assumes national leadership for the specialty product underwriting group, while Jeff Jacobs will be responsible for leadership of all underwriting operations for the firm. Mogelnicki operates out of the New York office and Jacobs operates out of NAS’ Chicago office. NAS is a specialty insurance underwriting manager.

WSS has named Tami Singer senior vice president

Joelle Margolin

Dean Cameron

of the commercial lines department. Singer will work out of the Sherman Oaks, Calif. office. She has more than 30 years of insurance experience with a focus on E&S. She has been commercial lines manager at Burns & Wilcox for the past 14 years. WSS is headquartered in Plano, Texas, with employees also located in California. WSS is part of XPT, a specialty insurance distribution company.

Woodruff Sawyer has named Joelle Margolin its Northern California employee benefits practice leader. Margolin has nearly 20 years of experience, and is a former employment lawyer and long-term HR professional. She was previously vice president of human resources at Woodruff Sawyer. Prior to joining Woodruff Sawyer, she held human resources leadership roles at Jaguar and Autodesk. San Francisco, Calif.-based Woodruff Sawyer is an active partner of Assurex Global and International Benefits Network. Dean Cameron, director of the Idaho Department of Insurance, has been elected secretary-treasurer of the National Association of Insurance Commissioners.

Cameron is the first Idaho commissioner elected to NAIC leadership. He and his fellow NAIC leaders, elected at the organization’s recent Fall National Meeting, officially take office on Jan. 1, 2019. Joining Director Cameron on the new NAIC governing body are: President Eric Cioppa, Maine Bureau of Insurance superintendent; President-Elect

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Raymond G. Farmer, director of the South Carolina Department of Insurance; and Gordon I. Ito, commissioner of the Hawaii Insurance Division. Cameron was appointed to his current state post by Governor C.L. “Butch” Otter in 2015. He previously served 25 years in the Idaho State Senate, including eight terms as Chair of the Senate Finance Committee, and co-chair of the state’s budget committee. The NAIC is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators form the 50 states, the District of Columbia and five U.S. territories. USG has named Larry Sewell business development assistant vice president in the Irvine, Calif. branch. Sewell will support the overall effort to expand USG’s Southern California footprint. He will also be a part of USG’s agency relationship management team, where he will serve as a liaison between the agency and all of USG’s divisions. Sewell has more than 20 years of experience marketing in the insurance industry, mostly recently as marketing director at BTIS. USG Holdings Inc.’s divisions are USG Insurance Services Inc., a national wholesale/MGA operation, Brokers Financial Services, a premium finance company, BFS Inspections, an inspection company, Allied American Underwriters, a program manager and specialty division, Into Innovations, a marketing, advertising, and technology provider for the industry, and Aureate Technology Solutions, an information technology company. Planck Resolution, an AI-based data platform for commercial insurance, has hired Leandro DalleMule as general manager for North America. DalleMule was previously chief data officer and head of information management at American International Group. He joined AIG in 2013 to lead the data management function for the P/C insurance business. In 2016 he became AIG’s enterprise CDO. Prior to joining AIG, DalleMule was with BlackRock, Citi as senior director of global analytics and Deloitte Consulting. Planck Resolution offers an artificial intelligence driven data platform to streamline the commercial underwriting process. The startup announced its first funding round of $12 million in July 2018. The round was led by Arbor Ventures and included Viola FinTech and Eight Roads. Planck has offices in New York and Tel Aviv. INSURANCEJOURNAL.COM

Idea Exchange

Cannabis Coverage

Covering Cannabis in California

By Benjamin J. McKay

Most of the action on insuring legal cannabis in California is in the surplus lines marketplace.

he legalization of cannabis in California created many opportunities for insurers to get in on the ground floor in covering this new product. At this point, however, most admitted insurers and even some in the surplus lines space are taking a pass. The Surplus Line Association of California is seeing tremendous interest from our members in insuring cannabis. In fact, there has been so much interest that the SLA plans to offer a continuing education course on cannabis in 2019. It is a constant, ongoing discussion in our industry. Our members want to know about the pertinent regulations and rules, the unique risks posed by the industry, and how to insure what is still largely a cash-based business — due to the uncertainties about how the federal government will treat bank deposits for an indus-

try that is still illegal at the federal While it’s not a complete list, level. Another reason this issue here are just some of the is so widely discussed is because markets covering this product it’s highly complex. There are in California: numerous facets, all requiring • AIG their own coverage: the plants; • Berkshire Hathaway the buildings; the transportation; Breckenridge Insurance Services • and many other links in the chain. • Colony Specialty (Argo Group) There is also the question of Complete Access Insurance Services • the legal status for recreational • Conifer Insurance Company cannabis, given that it remains Evergreen Insurance Managers • illegal under federal law. The SLA • Founders Professional receives no shortage of questions Hallmark Specialty Insurance • about what that means for insurers Company that might want to cover one or Hannover Re • more facets of the business, and • Hartford Steam Boiler there have been some delays on Hull & Company (Brown & Brown) • implementing regulations in some • James River localities. There is a lot of ambiKinsale Insurance Company • guity, which means, as a result, a • Markel Specialty slower development of the market National Fire & Marine (Berkshire • than might have been expected. Hathaway) Between the need to determine • Next Wave (CannaGen Insurance) appropriate pricing for cannabis • Old Republic Insurance Company coverage and the uncertainty • Patriot Underwriters, Inc. inherent in the product remain• Penn National ing illegal at the federal level, PPIB (Canopius U.S. Insurance) • getting multiple standard admit• State Compensation Insurance Fund ted insurers into this arena has (California) been elusive, despite the best • Surety One, Inc. efforts of California Insurance • TMKS—Syndicate 510 Commissioner Dave Jones. There • United National (State National) are a few exceptions, such as United Specialty • Golden Bear Insurance Co., but as • Validus Specialty—Talbot a rule, commercial cannabis covXL/Catlin • erage is largely being written in Source: Industria Risk and surplus lines. Insurance Services That said, coverage for all facets are already placing a substantial amount of this lucrative of insurance for all facets of the cannabis industry — whether it be business in the state. the product itself, the distribution process or the Some of the offerings, such as errors and omissions, directors and officers, and employees involved at every stage of the cultiva“key employee” coverage, which covers a tion and sales process — can be found in business in the event that it loses crucial the surplus lines market where a number personnel, are being driven by the investment community. of insurers are already making inroads. continued on page W4 Many surplus line brokers in California

‘The Surplus Line Association of California is seeing tremendous interest from our members in insuring cannabis.’

INSURANCEJOURNAL.COM

DECEMBER 17, 2018 INSURANCE JOURNAL | WEST | W3

WEST | News & Markets continued from page W3

Chiropractor in California Pleads Guilty in $150M Workers’ Comp Fraud Scheme

Los Angeles, Calif., chiropractor has pleaded guilty to taking part in a $150 million workers’ compensation fraud scheme. Paul Turley of Granada Hills pleaded in early December to conspiracy to commit insurance fraud, mayhem, insurance fraud and unlawful patient referral He’s facing up to eight years in prison. Prosecutors say Turley was among a dozen people who allegedly billed insurance companies for phony or unnecessary

surgeries, prescriptions, tests and office visits. Authorities say the scheme involved paying lawyers and others as much as $10,000 a month to illegally refer patients to medical workers taking part in the scam. Authorities say some surgeries were performed by a physician’s assistant who never went to medical school, and some patients were left scarred or in need of additional surgeries. Copyright 2018 Associated Press. All rights reserved.

Report: Return on Net Worth for California Workers’ Comp Insurers Rose

new report shows the average return on net worth for California workers’ compensation insurers rose to 9.9 percent in 2017, the fourth consecutive increase. The report comes from the National Association of Commissioners and was summarized in an analysis issued earlier this month by the California Workers’

Compensation Institute. The report ranks California in a tie with Arkansas at 18th out of the 45 states for which data were reported, according to CWCI. The rate of return in 2016 was 8.7 percent. It was 7.9 percent in 2015, 5.8 percent in 2014 and it fell in 2013 to 3 percent. The 10-year average return for California workers’ comp insurers was 6.3 percent, the report shows.

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Increasingly, coverage options are available for equipment breakdown, theft and crime for the extraction community. Although there is no comprehensive list available at this point, the SLA does have information from its brokers on some of the markets that are insuring legal cannabis in the state. There are currently dozens of options for legal cannabis coverage of which the SLA is aware. There are several key things to keep in mind in finding insurance coverage for cannabis business. First and foremost, there is no “blanket” or all-perils policy that will cover all facets of the cannabis business: General liability, workers’ compensation, property, auto (including distribution, certainly, but also vehicles like company cars that aren’t involved in distribution), and increasingly, cyber policies. Secondly, it is important to find an insurance broker who thoroughly understands the cannabis business and can identify where the potential coverage gaps may be.

Third, watch for exclusions. For example, a number of workers’ comp policies exclude cannabis. Working with an insurance professional who knows the business can help in this regard as well. It is crucial to be certain that every link in the chain, from growers all the way down to retail sellers and everything in between, is covered. If anything goes wrong, there is potential liability to anyone involved in that chain. A knowledgeable surplus lines broker can help you identify an insurer that meets your coverage needs. McKay is the CEO and executive director of the Surplus Line Association of California. INSURANCEJOURNAL.COM

Business Moves | NATIONAL The Hartford, Y-Risk

The Hartford has purchased Y-Risk, a managing general underwriter that specializes in serving sharing and on-demand economy risks, from Allstar Financial Group. Allstar is an Atlanta-based holding company with multiple specialty managing general agencies across the country. Unionville, Conn.-based Y-Risk’s customer mix includes transportation-network companies, car-sharing platforms, on-demand-services platforms and space-sharing platforms. Y-Risk offers its insurance through wholesale brokers and retail agents. It offers tailor-made coverages and usagebased pricing for commercial auto, general liability, property, inland marine, cyber and professional liability products. Terms of the deal were not disclosed. The Hartford said the purchase price will not have a material impact on its financial results. Y-Risk was founded in 2016. Among Y-Risk’s offerings is an online hub, gig.protect.com, that lets freelancers and independent contractors purchase products and access investment choices typically offered by employers, such as healthcare coverages, life insurance, professional insurance, and general liability. Y-Risk will now become part of The Hartford’s Strategy & Ventures group’s portfolio, which is focused on innovation. Y-Risk will keep its brand name, remain located in Unionville and operate independently of The Hartford’s core businesses. CEO Horovitz will report to INSURANCEJOURNAL.COM

Wilcox. The Hartford said it has hired all of the Y-Risk’s employees.

HMS Agency Inc., Adirondack Family Insurance Services

HMS Agency Inc., a family owned and operated insurance agency based in Albany, N.Y., has acquired Adirondack Family Insurance Services of Saratoga Springs, N.Y. The purchase agreement was finalized on July 1, 2018, and represents the fifth acquisition by HMS since 2014. HMS is a full-service agency that specializes in all lines of commercial and personal insurance, in addition to offering employee benefits. HMS Principal Stephen Mather explained that each acquisition bolsters the firm’s entry into new and adjacent markets, allowing it to expand its geographic reach into the Saratoga county and surrounding areas. HMS is a long-time member agency of the Satellite Agency Network Group Inc., an alliance of independent insurance agencies in the Northeast.

Risk Strategies, Arkin Youngentob Associates

Risk Strategies, a privately held, national insurance brokerage and risk management firm, has acquired Arkin Youngentob Associates, a full-service employee and executive benefits firm headquartered in Bethesda, Md. Terms of the deal were not disclosed. Founded in 1981, Arkin Youngentob has expertise in creative design and alternate funding structures for benefit plans. Arkin’s focus industries include real estate services,

construction firms, technology companies and government contractors, associations and nonprofit organizations. In addition to employee benefits, Arkin Youngentob focuses on the design of executive benefits, including multi-life disability and life, key person, company-owned life insurance, carve outs, business succession funding and corporate-sponsored retirement plans. The acquisition of Arkin Youngentob adds to Risk Strategies’ employee benefits specialty practice. In 2018, Risk Strategies acquired wholesale benefits services specialist Benefits Network Insurance Agency in Ohio, as well as full-service employee consulting and benefits brokerage firms Craford Benefit Consultants in Oregon and Costello Benefits Group in Massachusetts. As a U.S. insurance broker, Risk Strategies offers risk management advice as well as insurance and reinsurance placement for property and casualty, healthcare and employee benefits risks. The

broker serves commercial companies, nonprofits, public entities and individuals.

Hub International Ltd, Insurance Management Associates Inc., TAMRAC Group

Global insurance brokerage Hub International Ltd. has acquired the assets of Insurance Management Associates Inc. (IMA) Terms of the transaction were not disclosed. Based in Annapolis, Md., IMA is a full-service commercial and personal insurance agency. IMA President Randall Bieber will join Hub MidAtlantic and report to Hub Mid-Atlantic President Norman Breitenbach following the transaction. Hub International aims to organically and through acquisitions expand its geographic footprint and strengthen industry and product expertise, according to the company. Headquartered in Chicago, it provides property and casualty, life and health, employee

continued on page 12

DECEMBER 17, 2018 INSURANCE JOURNAL | NATIONAL | 11

NATIONAL | Business Moves continued from page 11 benefits, investment and risk management products and services. Hub International has also acquired The TAMRAC Group Inc. Terms of the transaction were not disclosed. Headquartered in Hunt Valley, Md., TAMRAC specializes in personal insurance and commercial insurance. It provides insurance products for businesses in the automobile service and repair, cannabis, food and hospitality industries. Following the acquisition, TAMRAC President Keith Erdman will join Hub MidAtlantic and report to Hub Mid-Atlantic President Norman Breitenbach.

Arch Capital Group Ltd., McNeil & Co.

Arch Capital Group Ltd., a Bermudabased provider of insurance, reinsurance and mortgage insurance, has entered into an agreement to acquire McNeil & Co., a provider of specialized risk management and insurance programs.

McNeil & Co. is headquartered in Cortland, N.Y. Terms were not disclosed. The transaction is expected to close this quarter and is subject to closing conditions, including regulatory approvals, clearances and relevant jurisdictions. McNeil will remain a standalone affiliate of Arch after the acquisition. Building on a 17-year partnership, this acquisition will provide mutual benefit to both parties, according to McNeil. With more than $11 billion in capital, Arch will provide McNeil with new opportunities to achieve scale and grow its business through additional products and resources, delivered through McNeil’s existing platform and distribution system. Sherman & Company LLC was financial advisor to Arch on the transaction.

Scott Molino Agency, Smith & Leavitt Insurance Services Scott Molino Agency in Grove City,

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Ohio, has affiliated with Smith & Leavitt Insurance Services and will now do business as Leavitt Group Midwest-Smith, Molino & Sichko. The agency will continue to offer Nationwide insurance products. The affiliation will not affect customer policies, and the same personnel will continue to serve clients from the agency’s location in Grove City. The Scott Molino Agency has been serving central Ohio for over 50 years. Leavitt Group provides clients with greater insurance market access and a wide range of value-added services and resources. Clients receive employee benefits solutions, property and casualty insurance, risk management and other services.

Resource Alliance, Higginbotham

Resource Alliance, a human resources and employee benefits firm serving Georgia’s multifamily residential industry, has merged with Higginbotham, an insurance and financial services firm serving mid-market companies. Resource Alliance will draw on Higginbotham’s capabilities to expand its services into commercial property/casualty insurance, risk management and broader employee benefits. Higginbotham is an independent broker based in Texas. It is widening its footprint by partnering with professional services firms. It offers in-house human resources services for employee benefits clients. The partnership will bolster those services and give Resource Alliance a means to offer comprehensive insurance services. Resource Alliance CEO Dennis Weyenberg, Chief Operating Officer Andy Weyenberg and Chief Human Resources Officer Scott Mastley will continue leading Resource Alliance with its existing 51-person workforce in Alpharetta, Ga. Resource Alliance is a national human resources company based in Alpharetta that provides outsourced and insourced human resources services, payroll administration, employee screening and employee benefit plans. The firm caters to the multifamily residential industry and serves clients with 50 to 1,250 employees in more than 30 states. It opened in 2001.

12/4/18 8:15 PM

INSURANCEJOURNAL.COM

News & Markets | NATIONAL

Pros and Cons of the Rise of Online Insurance Platforms: Geneva Association

nline platforms can foster insurance market transparency and reduce both transaction costs and information asymmetries, factors typically associated with increased competition and societal welfare. However, online insurance platforms also give rise to challenges concerning consumer protection and competition that should be addressed by policymakers, according to a research report from insurance think tank The Geneva Association. The reports analyzes opportunities and challenges posed by platforms like digital comparison tools, peer-to-peer insurance; those that allow self-organization and self-administration of insurance; advertising services from search engines and social media platforms such as Google and Facebook. The importance of platforms in insurance is likely to increase, according to the report, as Google, Amazon and Alibaba enter into agreements with insurance companies or consider entering the insurance space. While online platforms “provide an opportunity for insurers to differentiate themselves” in the market, there is also a risk that insurers could “become increasingly dependent on a relatively small number of platforms that may try to exploit a INSURANCEJOURNAL.COM

data-driven competitive advantage.” The report "Virtual Competition: Online Platforms, Consumer Outcomes and Competition in Insurance" indicates that increased transparency via online platforms may help overcome behavioural biases against the purchase of insurance, as well as assist consumers in comparing complex insurance products and helping them find those that best meet their needs. “Moreover, through the use of big data analytics, artificial intelligence and cloud computing, online platforms could enable the role of insurance to develop from one primarily concerned with loss indemnification to a broader advisory service for insureds on how to prevent, mitigate and manage risks,” the report says. While online platforms offer benefits for consumers, they also introduce potential risks. For instance, consumers need to be assured that the information provided by online platforms is in their best interests. Over-simplification and biased information would imply that search results, rankings or other information generated by online platforms may not necessarily reflect individual user preferences. Additionally, the use of large amounts of personal data by online platforms raises concerns about intrusiveness, fairness and

discrimination, according to the rport. “The need to reassess trade-offs between benefits and risks raises important policy questions,” said Anna Maria D’Hulster, secretary general of The Geneva Association. As an example, she cited the responsibilities and rights of consumers regarding the purchase of insurance, versus whether online platforms should be subject to regulatory transparency and fairness requirements similar to those advanced in the European Union.

Public Policy

Online platforms create new challenges in the areas of consumer protection and competition. Network effects and data-driven economies of scope may lead to large platforms that act as a gateway for consumers and such platforms could abuse their position by charging excessive prices or extending their dominant position to adjacent markets. “In order to ensure a thriving and competitive marketplace, policymakers should consider the role of data as a production factor and data itself as a potential barrier to market entry when assessing market power and potential anti-competitive conduct,” the report advises. The report highlights also the question of how insurance-specific market conduct requirements can be ensured when insurance is provided within complex digital ecosystems where different players perform different roles in the value chain.

DECEMBER 17, 2018 INSURANCE JOURNAL | NATIONAL | 13

NATIONAL | Closer Look | State Specialists

State Specialist P/C Carriers Identified for 2018

By Barry J. Koestler II

he Demotech Company Classification System categorizes insurers into one of 11 categories created by Demotech based on the analysis of data reported by companies to the National Association of Insurance Commissioners (NAIC). The 11 categories are Nationals, Near Nationals, Super Regionals, Regionals, State Specialists, Coverage Specialists, Strategic Subsidiaries, Risk Retention Groups, Surplus Lines Carriers, Reinsurers, and companies with less than $1 million in direct written premium.

To be categorized as a State Specialist, a carrier must be an individual, active company reporting data to the NAIC using the property/casualty annual statement format at year-end 2017. The company must report at least $1 million in direct written premium at Dec. 31, 2017, with 90 percent or more written in one state. Further, it cannot be a surplus lines company, risk retention group or reinsurance company. In total, 724 companies were categorized as State Specialists for 2018. This is 28.3 percent of the 2,559 companies that were classified based on Dec. 31, 2017, data. This group wrote nearly $90.7 billion of direct written premium, which was 14.3 percent of the industry’s direct written premium in 2017. Examining the geographic distribution of the 2018 State Specialists reveals that just over half of them specialize in one of six states. Texas had the most State Specialists with 90. Florida was next with 74; New York had 68. California had 51, New Jersey 49 and Pennsylvania 37. These 369 companies accounted for more than $61.5 billion of direct premium

written, or nearly 68 percent of the State Specialists’ total. State Specialists’ largest lines of business by 2017 direct written premium were private passenger auto (51.6 percent), homeowners multiple peril (21.0 percent), and workers’ compensation (10.2 percent). Space limitations precluded an enumeration of each of the 724 State Specialists. The accompanying list includes the 262 State Specialists that were not affiliated with a group as of year-end 2017. A full list of State Specialists is available from Barry Koestler at bkoestler@demotech.com. State Specialists are often an independent agent’s most reliable and consistent market. These companies are focused on a specific geographic area and consistently strive to understand and serve it. Koestler II, CFA, is the chief ratings officer of Demotech Inc., a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers. Since 1985, Demotech assigns accurate, reliable and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurers and Title underwriters. Website: demotech.com.

2018 State Specialist Property/Casualty Insurers Company Name

State Compensation Insurance Fund Texas Mutual Insurance Co. Pinnacol Assurance Consumers County Mutual Insurance Co. SAIF Corp Medical Liability Mutual Insurance Co. Wawanesa General Insurance Co. Security First Insurance Co. American Transit Insurance Co. American Integrity Insurance Co. of Florida St. Johns Insurance Co. Inc. Idaho State Insurance Fund People's Trust Insurance Co. Farm Bureau Mutual Insurance Co. of Arkansas Inc. Pioneer State Mutual Insurance Co. Missouri Employers Mutual Insurance Co. Indiana Farmers Mutual Insurance Co. Chesapeake Employers' Insurance Co. Nuclear Electric Insurance Limited CompSource Mutual Insurance Co. Louisiana Workers' Compensation Corp. Rural Mutual Insurance Co. Hospitals Insurance Co. Inc. Ranchers & Farmers Mutual Insurance Co. Montana State Fund Bear River Mutual Insurance Co. Kentucky Employers' Mutual Insurance Authority Safepoint Insurance Co. GoAuto Insurance Co. Louisiana Farm Bureau Mutual Insurance Co. Homeowners of America Insurance Co. Alinsco Insurance Co. Olympus Insurance Co. Country-Wide Insurance Co. Kingstone Insurance Co. Inc.

State of Specialty

CA TX CO TX OR NY CA FL NY FL FL ID FL AR MI MO IN MD DE OK LA WI NY TX MT UT KY FL LA LA TX TX FL NY NY

14 | INSURANCE JOURNAL | NATIONAL DECEMBER 17, 2018

2017 TOTAL DWP (000s Omitted)

$1,360,106 $992,073 $620,980 $541,839 $498,522 $410,623 $406,077 $391,404 $333,608 $292,352 $276,642 $248,731 $239,576 $237,847 $235,259 $233,294 $225,801 $213,885 $204,774 $202,126 $201,870 $201,150 $182,695 $172,686 $172,299 $162,757 $156,662 $151,455 $146,606 $146,291 $143,075 $142,008 $136,755 $136,448 $121,575

Company Name

State of Specialty Redpoint County Mutual Insurance Co. TX FL Southern Fidelity Property & Casualty Inc. Southern Oak Insurance Co. FL New York Schools Insurance Reciprocal NY Avatar Property & Casualty Insurance Co. FL CEM Insurance Co. TX American Steamship Owners Mutual Protection/Indemnity Assoc. NY Ascendant Commercial Insurance Inc. FL Auto Club South Insurance Co. FL Wisconsin Mutual Insurance Co. WI Florida Specialty Insurance Co. FL American Capital Assurance Corp. FL Erie and Niagara Insurance Association NY Hawaii Employers' Mutual Insurance Co. Inc. HI Colorado Farm Bureau Mutual Insurance Co. CO Underwriters at Lloyd's, London IL Granada Insurance Co. FL Sterling Insurance Co. NY Farmers Union Mutual Insurance Co. ND New York Municipal Insurance Reciprocal NY Service Lloyds Insurance Co. TX Dryden Mutual Insurance Co. NY American Alliance Casualty Co. IL Prepared Insurance Co. FL Germantown Mutual Insurance Co. WI RAM Mutual Insurance Co. MN Farmers Mutual Fire Insurance Co. of Salem County NJ Underwriters at Lloyd's, London KY Woodlands Insurance Co. TX Discovery Insurance Co. NC Normandy Insurance Co. FL Security Mutual Insurance Co. NY Alabama Municipal Insurance Corp. AL Access Home Insurance Co. LA American Risk Insurance Co. Inc. TX

2017 TOTAL DWP (000s Omitted)

$105,584 $101,373 $96,108 $94,082 $91,811 $88,635 $85,589 $82,164 $80,910 $79,835 $75,873 $75,867 $75,294 $72,655 $70,901 $69,597 $68,176 $67,711 $66,823 $65,841 $65,407 $63,973 $60,441 $54,758 $53,597 $53,384 $50,084 $49,472 $47,157 $44,824 $42,936 $42,530 $42,254 $41,117 $40,907

INSURANCEJOURNAL.COM

Company Name

Citizens United Reciprocal Exchange Nations Insurance Co. Lawyers' Mutual Insurance Co. MDAdvantage Insurance Co. of New Jersey Crusader Insurance Co. Care West Insurance Co. Southern Vanguard Insurance Co. Direct Auto Insurance Co. Commonwealth Casualty Co. Aventus Insurance Co. Bremen Farmers Mutual Insurance Co. Maidstone Insurance Co. Idaho Counties Risk Management Program Center Mutual Insurance Co. Marysville Mutual Insurance Co. Farmers Insurance Co. of Flemington Housing and Redevelopment Insurance Exchange Farmers Union Mutual Insurance Co. League of Wisconsin Municipalities Mutual Insurance Mt. Morris Mutual Insurance Co. Responsive Auto Insurance Co. Maya Assurance Co. Star Casualty Insurance Co. Allied Trust Insurance Co. US Lloyds Insurance Co. Peachtree Casualty Insurance Co. N.C. Grange Mutual Insurance Co. Texas Lawyers' Insurance Exchange Seven Seas Insurance Co. Inc. Aspire General Insurance Co. Conventus Inter-Insurance Exchange Illinois State Bar Association Mutual Insurance Co. Leatherstocking Cooperative Insurance Co. Fairmont Farmers Mutual Insurance Co. Upland Mutual Insurance Inc. West Virginia Mutual Insurance Co. First Benefits Insurance Mutual Inc. Farm Credit System Association Captive Insurance Co. Sutter Insurance Co. Michigan Professional Insurance Exchange Manufacturing Technology Mutual Insurance Co. Otsego Mutual Fire Insurance Co. Northern Mutual Insurance Co. Sterling Casualty Insurance Co. Wayne Cooperative Insurance Co. Harbor Insurance Co. Farmers Fire Insurance Co. Park Insurance Co. Florida Lawyers Mutual Insurance Co. SU Insurance Co. Casualty Corporation of America Inc. Capacity Insurance Co. WEA Property & Casualty Insurance Co. Cities and Villages Mutual Insurance Co. Kensington Insurance Co. Medical Alliance Insurance Co. New Jersey Physicians United Reciprocal Exchange Midstate Mutual Insurance Co. Farmers Mutual Fire Insurance Co. of Marble, Pennsylvania USA Insurance Co. Farmers Mutual of Tennessee Frontier - Mt Carroll Mutual Insurance Co. Excalibur National Insurance Co. Synergy Comp Insurance Co. Victory Insurance Co. Inc. West Virginia Insurance Co. NHRMA Mutual Insurance Co. Finger Lakes Fire and Casualty Co. USPlate Glass Insurance Co. Healthcare Providers Insurance Co. McMillan-Warner Mutual Insurance Co. Oklahoma Attorneys Mutual Insurance Co. Farmers Mutual Fire Insurance Co. Associated Mutual Insurance Cooperative Centauri National Insurance Co. Preferred Auto Insurance Co. Inc. Municipal Property Insurance Co. Coastal American Insurance Co. Chautauqua Patrons Insurance Co. Union Mutual Insurance Co. Halifax Mutual Insurance Co. Casualty Underwriters Insurance Co. Kansas Mutual Insurance Co. Retailers Insurance Co. Reamstown Mutual Insurance Co. Nazareth Mutual Insurance Co. Central Co-operative Insurance Co. Oswego County Mutual Insurance Co. North Country Insurance Co. Ohio Bar Liability Insurance Co. Inspirien Insurance Co. Texas Hospital Insurance Exchange Broome Co-operative Insurance Co. Agents Mutual Insurance Co. National Direct Insurance Co. Health Care Insurance Reciprocal United Business Insurance Co. (A Mutual Captive) Lawyers Mutual Insurance Co. of Kentucky Seaview Insurance Co. ARECA Insurance Exchange Districts Mutual Insurance and Risk Management Services West Virginia National Auto Insurance Co. Bedford Grange Mutual Insurance Co. Maple Valley Mutual Insurance Co.

INSURANCEJOURNAL.COM

State of Specialty

NJ CA CA NJ CA CA TX IL AZ TX KS NY ID ND KS NJ PA MT WI WI FL NY FL TX TX FL NC TX FL CA NJ IL NY MN KS WV NC CO CA MI MI NY MI CA NY OK PA NY FL IA OK FL WI WI NY IL NJ NY PA MS TN IL LA PA MT WV IL NY FL MS WI OK OK NY LA TN WI MS NY OK NC UT KS MI PA PA NY NY NY OH AL TX NY AR NV MN GA KY CA AK WI WV PA WI

2017 TOTAL DWP (000s Omitted)

$40,350 $39,383 $38,585 $38,533 $38,393 $37,383 $36,822 $36,227 $35,698 $33,272 $31,130 $30,987 $30,555 $30,344 $30,220 $29,668 $28,453 $27,532 $26,937 $26,574 $26,244 $25,842 $25,406 $23,313 $23,192 $22,796 $22,162 $22,013 $21,600 $21,452 $21,188 $20,723 $20,553 $20,468 $20,180 $20,148 $19,676 $19,340 $19,158 $18,977 $18,920 $18,782 $18,434 $18,081 $17,046 $16,981 $16,833 $16,652 $16,222 $15,842 $15,530 $14,888 $14,876 $14,076 $13,840 $13,460 $13,235 $13,121 $13,075 $13,069 $12,856 $12,836 $12,721 $12,640 $12,500 $12,329 $12,298 $12,175 $11,884 $11,486 $11,440 $11,284 $11,212 $11,044 $10,377 $10,330 $10,239 $10,091 $9,963 $9,902 $9,638 $9,572 $9,429 $9,415 $9,207 $9,099 $9,019 $8,756 $8,629 $8,584 $8,220 $8,156 $7,998 $7,995 $7,685 $7,612 $7,311 $7,307 $7,147 $7,113 $7,039 $6,969 $6,950 $6,686

Company Name

State of Specialty

Business Alliance Insurance Co. CA PrimeOne Insurance Co. MI Farmers Mutual Insurance Co. WV Bell United Insurance Co. NV Callicoon Co-operative Insurance Co. NY Farmers Mutual Fire Insurance Co. of McCandless Township PA Arrow Mutual Liability Insurance Co. MA Genesee Patrons Cooperative Insurance Co. NY Hartland Mutual Insurance Co. ND Ethio-American Insurance Co. Inc. GA Juniata Mutual Insurance Co. PA First Mutual Insurance Co. NC Ontario Insurance Co. NY Madison Mutual Insurance Co. NY United Frontier Mutual Insurance Co. NY Dealers Choice Mutual Insurance Inc. NC SteadPoint Insurance Co. TN Heartland Mutual Insurance Co. MN Wisconsin Municipal Mutual Insurance Co. WI German American Farm Mutual TX USA Underwriters MI Gem State Insurance Co. ID Health Care Mutual Captive Insurance Co. GA Midrox Insurance Co. NY CBIA Comp. Services Inc. CT Wisconsin Lawyers Mutual Insurance Co. WI Alaska Timber Insurance Exchange AK California Mutual Insurance Co. CA Petroleum Marketers Management Insurance Co. IA Laundry Owners Mutual Liability Insurance Association PA Sawgrass Mutual Insurance Co. FL Briar Creek Mutual Insurance Co. PA Fulmont Mutual Insurance Co. NY Trans City Casualty Insurance Co. AZ Farmers and Merchants Mutual Fire Insurance Co. MI Mound Prairie Mutual Insurance Co. MN Ellington Mutual Insurance Co. WI Farmers Union Mutual Insurance Co. AR Missouri Valley Mutual Insurance Co. SD Hay Creek Mutual Insurance Co. MN Baldwin Mutual Insurance Co. Inc. AL Great Lakes Mutual Insurance Co. MI Bloomfield Mutual Insurance Co. MN Little Black Mutual Insurance Co. WI Alamance Farmers' Mutual Insurance Co. NC Spartan Insurance Co. TX Vasa-Spring Garden Mutual Insurance Co. MN Carolina Farmers Mutual Insurance Co. NC U.S. Insurance Co. of America IL Centre County Mutual Fire Insurance Co. PA Community Insurance Co. PA Wilmington Insurance Co. DE Century Mutual Insurance Co. NC Friends Cove Mutual Insurance Co. PA Panhandle Farmers Mutual Insurance Co. of West Virginia WV Whitecap Surety Co. MN Gulf States Insurance Co. LA Farmers Mutual Insurance Co. KS Transit Mutual Insurance Corp. of Wisconsin WI Tank Owner Members Insurance Co. TX Workers Compensation Exchange ID Western Mutual Fire Insurance Co. MN Freedom Advantage Insurance Co. PA Pennsylvania Professional Liability Joint Underwriting Association PA Washington County Co-op Insurance Co. NY Mower County Farmers Mutual Insurance Co. MN Safe Insurance Co. WV Integra Insurance Inc. MN National Heritage Insurance Co. Inc. IL Piedmont Mutual Insurance Co. NC CA Pacific Pioneer Insurance Co. Keystone Mutual Insurance Co. MO United Casualty and Surety Insurance Co. MA Farmers Mutual Insurance Co. of Michigan MI Otsego County Patrons Co-Operative Fire Relief Association NY Doctors Direct Insurance Inc. IL Healthcare Professionals Insurance Co. Inc. NY MFS Mutual Insurance Co. IA Farmington Mutual Insurance Co. WI Benefit Security Insurance Co. IL Eagle Point Mutual Insurance Co. WI Northwest Farmers Mutual Insurance Co. NC Professional Insurance Exchange Mutual Inc. UT Grange Mutual Fire Insurance Co. PA Wall Rose Mutual Insurance Co. PA Yel Co. Insurance FL Farmers & Mechanics Mutual Insurance Assoc. of Cecil County Inc. MD Physicians Insurance Mutual MO

2017 TOTAL DWP (000s Omitted)

$6,664 $6,618 $6,567 $6,487 $6,404 $6,329 $6,258 $6,059 $6,059 $5,839 $5,835 $5,738 $5,609 $5,603 $5,520 $5,515 $5,477 $5,425 $5,402 $5,353 $5,316 $5,254 $5,250 $5,224 $5,199 $5,189 $5,126 $4,924 $4,795 $4,792 $4,747 $4,699 $4,604 $4,579 $4,479 $4,443 $4,409 $4,356 $4,227 $4,224 $4,210 $4,206 $4,128 $4,049 $3,968 $3,880 $3,852 $3,812 $3,692 $3,547 $3,532 $3,487 $3,364 $3,353 $3,338 $3,298 $3,227 $3,222 $3,219 $3,124 $3,043 $3,027 $3,013 $2,960 $2,939 $2,901 $2,879 $2,780 $2,766 $2,751 $2,451 $2,422 $2,314 $2,288 $2,199 $1,815 $1,788 $1,659 $1,607 $1,599 $1,561 $1,543 $1,510 $1,417 $1,402 $1,198 $1,156 $1,010

Source: The National Association of Insurance Commissioners, Kansas City, Mo., by permission. Information derived from an S&P Global product. The NAIC and SNL do not endorse any analysis or conclusion based upon the use of its data. DECEMBER 17, 2018 INSURANCE JOURNAL | NATIONAL | 15

NATIONAL | Special Report | The Charity Issue

Pink Agenda Wins Big When Broker Executive Laces Up for His First Marathon By Andrea Wells

hile the more than 4,000 employees and leaders of Charlotte, N.C.-based wholesale broker AmWINS are involved in various charitable efforts all year long, this year their efforts to support one nonprofit that targets breast cancer research received special attention from a novice marathoner. Supporting organizations focused on breast cancer is not new for AmWINS employees. Several groups of employees have participated in breast cancer walks for years because of personal relationships with people affected by the disease. But this year Audrey (Rogers) Johnston and her colleagues felt they could do more. “We wanted to make a bigger impact, so we researched organizations and we found The Pink Agenda,” said Johnston, vice president, client relationship manager for AmWINS in the Atlanta office. The Pink Agenda is a not-for-profit 501(c)(3) organization committed to raising money for breast cancer research and care, as well as awareness of the disease among young professionals. The Pink Agenda

finds, funds, and partners with people and programs that are improving the lives of those suffering from breast cancer and conducting the groundbreaking research. There wasn’t a local chapter of The Pink Agenda in Atlanta until a few years ago when Johnston and her colleagues decided to create one. They reached out to everyone they knew: competitors, carriers, retailers. “Everyone took to it with open arms,” she said. Through its annual gala and other events hosted in Atlanta by a committee of young professionals, The Pink Agenda’s Atlanta Chapter has raised nearly $600,000 for breast cancer research since its inaugural event in 2013. “AmWINS has been our title sponsor from the beginning,” she said. “We raised $124,000 in 2018 – our largest event ever for breast cancer research.” AmWINS President James Drinkwater has been one of the biggest supporters. “He was always a huge supporter in honor of his wife’s battle with breast cancer and his daughter, Katie, who now serves on The Pink Agenda’s Leadership Council,” Johnston said. But this year, Drinkwater’s

Left to right: AmWINS employees Marley Roos, Audrey Johnston, Katie McGregor Holcombe at the 6th Annual Gala for Atlanta’s The Pink Agenda. 16 | INSURANCE JOURNAL | NATIONAL DECEMBER 17, 2018

James Drinkwater, president of AmWINS raised $64,500 for The Pink Agenda running the TCS New York City Marathon. commitment to raising funds involved a much more personal challenge. Running a marathon has long been on Drinkwater’s ‘bucket list.” Last year, motivated by his desire to raise funds for The Pink Agenda in honor of his wife, he decided to take the plunge and trained extensively to run in the TCS New York City Marathon. Drinkwater helped raise $64,500, the third highest amount ever raised for a charity via the New York City Marathon. Two other AmWINS employees ran the marathon as well in support of the organization: Peggy Marron raised $4,100 and Robert Balogh raised $3,725. Drinkwater said that the training and race were difficult (he’s not a regular marathon runner) but also incredibly rewarding. “It’s such a great charity and very personal to me and my family,” Drinkwater said. He’s grateful to those who supported his journey: colleagues, clients, carrier partners and even his competitors. But mostly, he applauds the good work of Johnston and her colleagues who have been the driving force behind the Atlanta chapter. Drinkwater says the insurance industry provides a great deal of charitable support to many good causes. “We want to give back to our communities,” he said. “It’s really important.” INSURANCEJOURNAL.COM

NATIONAL | Special Report | The Charity Issue

Insurance Educator Shares BBQ Talent with Firefighters, Friends and Neighbors By Patrick Wraight

hen we think about giving, we think about people and organizations going all out and making big splashes around the world. Yet, many in the insurance world, do their giving quietly and in their neighborhood. That’s the case with one professional in particular. David Thompson, insurance educator with the Florida Association of Insurance Agents (FAIA), focuses on giving back to his neighborhood. As a second-generation Army officer, Thompson is no stranger to sacrifice and helping others. Yet, it was his early involvement with his local ambulance company and a life-long connection with the fire department that has colored his giving at this stage of his life. He learned early about the bonds that form in people who serve in stressful and dangerous situations and he’s never really lost that bond. As an insurance educator, travelling around the state of Florida (and the United States), he began to enjoy the different barbecue traditions around the country. Eventually, he invested in his own equipment and started smoking meats at his home. A hobby that most people use to prepare dinners for their families, he has turned into a way to give back to the people that have been there in his life. On a recent Saturday, he fired up his smoker and smoked 124 pounds of meats. To put that in perspective, a family of four might smoke four to six pounds of chicken breasts or a five-pound Boston butt (pork shoulder) for a dinner. He smoked 25 times that. Where a family might smoke one or two meats in a session, he had five types of meat (Boston butt, pork tenderloin, chicken wings, chicken breasts, and salmon) on the smoker that day. What did he do with it? He kept enough for lunch and dinner, but he packaged up the rest to give away. With his affinity for firefighters, he tries INSURANCEJOURNAL.COM

to call his local fire station (only two miles down the road) and tells them to come by hungry around lunch time. A crew of firefighters can eat, but that day there were only three of them, so the rest had to go somewhere. The list of lucky barbecue recipients includes: • His friend that cuts his grass when Thompson is traveling. • Some neighbors who helped him out when Hurricane Michael came through. • Other neighbors and friends that have

helped him out when he has needed it. • Sometimes, he even invites insurance people over for smoked meats and a few laughs. The most important thing in his mind is that we all should be giving to other people. He has friends who bake. His mother still makes up snack mix bags to give to family friends and other people every week. The key is to find those gifts and talents that you have and use them to be a blessing to others.

DECEMBER 17, 2018 INSURANCE JOURNAL | NATIONAL | 17

NATIONAL | Special Report | The Charity Issue

Annual IICF Week of Giving Puts ‘Face on Insurance’ By Don Jergler

The IICF’s annual Week of Giving in October brings insurance industry professionals together for a week-long series of volunteer projects to serve local nonprofits and charities in their own communities. This includes volunteer events designed to support at-risk women, children and youth, the homeless, those with disabilities, senior citizens, military veterans and other areas of focus for IICF divisions. The year’s Week of Giving was held from Oct. 13 to Oct. 20 and included 560 volunteer projects in the five IICF divisions – Western, Southeast, Midwest, Northeast and United Kingdom – and involved 135 companies and 11,270 volunteer hours in 243 cities, 40 states and two countries. The projects put people in the community together with employee and executive volunteers, so these insurance professionals aren’t merely writing checks for charity, according to Ross. “They’re putting a face on insurance,” he added. The aforementioned Week of Giving event in the Midwest involved 600 volunteers attending the Gamma Iota Sigma

munity, and giving back to a community also drives change within an organization and the industry as well,” Ross said. “We learn about a community, we see what their needs are, and we learn how to put our focus on that.”

undreds of volunteers attending an insurance conference in Chicago, Ill., took a chunk of their free time writing thank you notes to servicemen and women and well-wishes notes to children living in low-income situations. It’s the thought that counts, and that’s the spirit that drives the annual Insurance Industry Charitable Foundation’s Week of Giving, according to Bill Ross, CEO of the nonprofit IICF. Each year, the IICF Week of Giving seems to be breaking participation records from previous years, and it’s that participation – not the millions of dollars the group raises for charity – that Ross believes is so Midwest IICF: The IICF Week of Giving from Oct. 13-20 important for the industry and the in the Midwest included 200 volunteers helping with community. Cradles to Crayons Chicago, which provides assistance “At the end of the day, giving to local children living in poverty back drives change within a com18 | INSURANCE JOURNAL | NATIONAL DECEMBER 17, 2018

West IICF: More than 100 projects were part of the Week of Giving in the Western Division. Many supported food banks throughout the Western states of Alaska, Arizona, California, Colorado and Washington. Other volunteer events included an Early Literacy Initiative project with the Children’s Bureau in Los Angeles, where 1,250 IICF Book Buddies storybooks were donated to the organization. INSURANCEJOURNAL.COM

International Conference in Chicago and spending a day writing hundreds of thank you notes and well-wishes notes to servicemen and women and low-income children. IICF Midwest also hosted several large volunteer projects, including the IICF Literacy Fair at Breakthrough in Chicago and events at Cradles to Crayons Chicago over a three-day period, where nearly 200 volunteers from numerous insurance companies donated essential items for children living in poverty. Volunteer projects in the Northeast included building homes, serving meals to the homeless and working with students on interviewing skills. The folks in the IICF Southeast hosted their annual clean-up, maintenance and beautification project at the National

Northeast IICF: IICF Week of Giving in the Northeast from Oct. 13-20 included building homes, serving meals to the homeless and working with students on interviewing skills. Through a partnership with Books for Kids, all of the children participating in the IICF Literacy Fair were gifted books while insurance professionals assisted with literacy activities, and Elmo was on hand to engage the children as part of IICF’s Every Day is a Reading and Writing Day program partnership with Sesame Workshop. INSURANCEJOURNAL.COM

Cemeteries in Dallas-Fort Worth and Houston in honor of veterans. More than 100 projects were part of the Week of Giving in the Western Division. Projects included the Early Literacy Initiative with the Children’s Bureau in Los Angeles, where 1,250 IICF Book Buddies U.K. IICF: More than 200 U.K. volunteers, representing 20 companies, storybooks were contributed 500 hours of volunteer service in giving 23 projects involving donated to the 16 nonprofits in four cities across the country. organization to complement the volunteer project. More than 200 U.K. volunteers representing 20 companies contributed 500 hours of volunteer service in giving 23 projects involving 16 nonprofits in four cities across the country. Now completing its 25th year in existence as an organization, the IICF has continued to grow the annual Week of Giving program to record highs each of the last three years, according to Ross. The number of industry volunteers also grew in 2017 from the previous year. Last year, some 10,200 insurance professionals volunteered in 173 cities across the United States and the U.K. Ross said giving is just part of the insurance Southeast IICF: The Southeast Division Board and Houston industry’s make up. “The reason that we can Chapter of IICF again hosted their annual IICF clean-up, maintenance and beautification of the National Cemeteries in Dallasexceed goals is because Fort Worth and Houston in honor of veterans. The more than 430 this industry supports philanthropic work,” Ross IICF supporters and industry professionals included representatives from 29 companies between the two projects. said. DECEMBER 17, 2018 INSURANCE JOURNAL | NATIONAL | 19

NATIONAL | Special Report | Charity Issue

A Desire to Leave the World Better Than He Found It: Acts of Generosity from AIG’s Founder C.V. Starr By L.S. Howard

ornelius Vander Starr had many identities, including American entrepreneur, successful businessman, salesman, fearless world traveler and business pioneer. As the founder of what is now American International Group, he also was a firm believer in corporate social responsibility long before CSR was a buzzword. C.V. Starr believed in giving back personally and corporately — and here’s a bit of his story for Insurance Journal’s charity issue. After selling a small insurance agency in San Francisco, Starr decided to seek his fortune in Asia. When he was just 27 years old in 1919, he stepped off a steam ship in Shanghai and quickly identified a gap in the insurance market. Western insurers were almost entirely overlooking the local Chinese population for insurance sales, which Starr saw as a massive opportunity, said Bill Coffin, director and senior editor for AIG. Although China had been through some pretty turbulent times, Starr saw that life expectancy was rising and thought, “These people need life insurance, and I’m going to sell it to them.” That’s how Starr start-

ed American Asiatic Underwriters, which ultimately would become a global insurance empire. Coffin said that Starr was a natural salesman who would chat with everyone. “He would go out and beat the bricks and sell people insurance.” It obviously worked, because by 1939 — when his operation relocated its headquarters from China to New York because of World War II — Starr had built a successful

business with offices throughout Southeast Asia. He had a branch in Cuba and had already launched American International Underwriters (AIU) in the United States. After World War II, AIU entered Japan and Germany, initially selling insurance to the American military. The company became known as AIG in 1967. Starr was always on the move, always traveling. “When he saw an opportunity to introduce himself, he always took it,” Coffin said. It was one such encounter in 1951 that changed a Japanese man’s life, and Starr’s as well. Starr was now a wealthy man and, by all accounts, a generous man. Some of his friends described him as “generous to a fault.” Coffin said he was simply

keen to give back — and did in a massive way for Chiharu “Chick” Igaya, whom he met on a skiing trip in Japan. An avid skier, Starr had been chatting with the owner of a Japanese ski shop when Igaya walked into the store. Starr discovered that Igaya was a competitive skier who was heading to the 1952 Winter Olympics in Oslo, Norway, but he couldn’t afford to stay in Olso to train ahead of the competition. On the spot, Starr offered to pay for Igaya and his teammates’ travel and training expenses. “Even though Igaya didn’t win a medal in that Olympics, that didn’t stop their relationship,” Coffin said. “He ended up competing in several more Olympics ... He actually won a silver medal in the 1956 Olympics and became quite a

C.V. Starr attends Chiharu Igaya's graduation from Dartmouth College in 1957.

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well-known skier.” Starr continued to support Igaya after the Olympics and paid for his tuition to attend Dartmouth College. Determined to show his gratitude, Igaya joined AIG in Japan and stayed with the company for 49 years, rising to honorary chairman of his division before retiring in 2008. “The generosity that Starr showed him blossomed into a wonderful friendship, and a professional relationship as well,” Coffin said. “Igaya had this immense respect for Starr and worked for him for close to half a century. He never forgot that act of generosity that Starr showed him.” Coffin said that such generosity was very common for Starr. “If he saw that a person had a real desire to reach far and to work hard, but something was blocking their way, he would swoop in and say, ‘What can I do to help?’” Starr also liked to gather people around him who held similar values. “He wanted to see the same values in the lieutenants he gathered to run his organization, so that spirit of generosity was really not confined just to Starr,” Coffin said. As Starr’s business prospered, he wanted to spread that tradition beyond his own personal giving to make sure his organization also exhibited a similar degree of generosity, which is now called “corporate citizenship,” Coffin said. In 1953, Starr led an industry effort to provide disaster relief donations for Holland after a historic flood inundated the country and caused massive damage. He not only

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persuaded the U.S. insurance industry to donate money for the recovery efforts, but Starr, through his company, donated $10,000, which is nearly $100,000 in current dollars. “It was one of the largest cash donations made by an

‘It’s a desire to leave the world better than you found it, and to recognize that wherever you do business, you’re also a member of that community and you have an obligation to help it whenever you can.’ American business firm in that relief effort,” Coffin said, noting that these are just two of the many examples of Starr’s corporate citizenship. “Even though these two acts of generosity are fairly different in size, scope and direction, they both come from the same place,” Coffin said. “It’s a desire to leave the world better than you found it, and to recognize that wherever you do business, you’re also a member of that community, and you have an obligation to help it whenever you can.” Coffin and his team are gathering these stories of AIG’s corporate citizenship to get ready to celebrate the company’s 100th anniversary next year — 100 years after C.V. Starr stepped off a steam ship in Shanghai and began sowing the seeds to create a global company. And 50 years after his death in 1968, Starr’s legacy continues.

Chiharu Igaya downhill skiing in the 1950s.

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NATIONAL | Special Report | The Charity Issue

South & Western General Safety National Safety National proudly supports Variety the Children’s Charity of St. Louis, an organization that has been helping children with physical and developmental disabilities for more than 80 years. In 2018, Safety National donated more than $10,000 to support the organization’s various programs, including Variety’s Adventure Camp and theater production as well as other events. In November, Safety National employees participated in Variety’s Annual Bike Build Event, which brings people together to build bicycles for children with disabilities.

ITC Once a quarter, volunteers from ITC cook lunch or dinner for the families staying at the Ronald McDonald House in Dallas. The Ronald McDonald House relies 100 percent on donations to operate its facilities and on volunteers to serve three meals per day to the residents. Volunteers decide the menu, buy ingredients, prepare and serve the food, and clean up.

The Higginbotham

The Higginbotham Community Fund started in 2011 with a mission to engage employees in philanthropy. To date, employees have pledged more than $2 million, $1.39 million of which has been granted to local nonprofits. At the end of each quarter, the board asks employees to nominate nonprofits they support. This year, when leukemia took the life of commercial supervisor Tracy Jackson, employees chose to donate $110,000 to the Higginbotham Community Fund to support her favorite charities.

South & Western is in its second year of supporting Texas Little Cuties, a 501(3)(c) non-profit dog and cat rescue located in Dallas, Texas. Employees enjoy creating and attending several fundraising events throughout the year. More events are scheduled to bring much needed supplies and funds to this small, all-volunteer charity that brings a second chance at life for shelter animals.

Bouchard Insurance Ramsburg Insurance Agency

Ramsburg Insurance Agency celebrated its 2nd Annual First Responders lunch this year. Agency owners Chris and Tim Ramsburg wanted to support first responders in their community with the event, which offers a BBQ food truck and corn-hole games. Local volunteer fire, police, maintenance crews and local leaders are invited. Last year, the agency donated $10 per person to a police officer that had been shot in the line of duty. This year, it gave donations to a service company that supports local fire fighters at the scene of a fire or catastrophe.

Ansay & Associates LLC

Ansay & Associates has a passion for giving back to the communities it serves. In addition to sponsoring and supporting community events, Ansay also provides all employees the opportunity to volunteer their time. Each year, associates receive four paid volunteer days to use as they choose. Ansay & Associates commits time and donations to the following charities and community groups: The Humane Society, Big Brothers Big Sisters, Habitat for Humanity, United Way, Junior Achievement, Toys for Tots, Portal Inc. and other local community organizations.

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Sick Children's Trust

Father and son Paul and Harry Jardine talk to Deborah Leonard the manager of Stevenson House, located at The Royal London Hospital – east of the City, one of The Sick Children’s Trust’s 10 ‘Homes from Home’ across the UK. Paul Jardine is chairman of The Sick Children’s Trust, and he and his son Harry, associate director at Capsicum DA, have worked tirelessly every year to raise money for the charity that provides free ‘Home from Home’ accommodation to families with seriously ill children in hospitals.

Bouchard's Be Involved committee coordinates activities with local community organizations throughout the year, and each employee is given one PTO day per year for a volunteer opportunity of their choice. Some of the organizations supported are: Adopt-a-Highway, Clothes to Kids, Paint Your Heart Out Clearwater, The Arc of Tampa Bay, Eckerd, Tampa Bay Watch, Metropolitan Ministries, and Habitat for Humanity. The annual Bouchard Insurance 5K in Safety Harbor, Fla., benefits the Gramatica Family Foundation. Last year, it raised $20,000 toward its mission to build mortgage-free homes for combat wounded veterans in the Tampa Bay area. INSURANCEJOURNAL.COM

MJ Insurance

New Jersey Surplus Lines Association Molyneaux Insurance

In 2001, Molyneaux hosted the first Trumps & Tricks to raise money for a local charity. This friendly euchre tournament attracted 52 players and raised $3,300. Trumps & Tricks is an annual event that has raised more than $254,000. Since the owners completely underwrite the event, 100% of the funds are donated to the beneficiaries. Molyneaux and its staff have inspired clients, insurance company partners, and local businesses to join them in supporting 18 local charities.

The New Jersey Surplus Lines Association (NJSLA) held its second annual charity event in October. Oktoberfest 2018 raised $14,000 for The Community Foodbank of New Jersey. This organization helps those 900,000 food insecure residents in New Jersey.

Broker Builder Solutions

Broker Builder Solutions hosts a local single parent family every Christmas, purchasing gifts for families and delivering the presents a week or two before Christmas.

Florida Association of Public Insurance Adjusters

Insurance Council of Texas K&S Insurance Agency

The Last Well is a faith based organization headquartered in Rockwall, Texas. Its mission is to provide access to safe drinking water to Liberia by 2020 and offer the gospel to every community it serves. Todd Phillips, founder and president of The Last Well, recently completed a fundraising event where he lived on a 20x22 foot barge 24/7 until $2.3 million was raised. Phillips' water supply came from lake water filtered by the Sawyer water filters they are supplying families in Liberia. K&S Insurance Agency is a supporter of The Last Well and was a sponsor of the Hope Floats initiative. It helped raise over $77,000. INSURANCEJOURNAL.COM

ICT's Education Foundation is a 501(c) (3) that awards academic scholarships to support students enrolled in insurance and risk management courses in Texas. The Education Foundation was formed to support the next generation of insurance professionals. In 2018, the Education Foundation honored 20 students studying insurance and risk management with $31,000 in scholarships. ICT scholarship recipients at Baylor University were Sam Bode, Savannah Bass, Nathan Preston, Ryan Hebdon, Heather Hansen, Madeline Dixon, David Bennett and Maggie McBride.

MJ Insurance's associate volunteer service hours and charitable donation matching programs are designed to reinforce and encourage a culture of giving back to the community. Every two years, MJ Insurance chooses two charitable organizations â&#x20AC;&#x201D; one in Indianapolis and one in Phoenix â&#x20AC;&#x201D; to focus its time and resources. The agency also features a "Charity of the Month" to bring awareness to other local organizations or charitable events that associates participate in throughout the year.

Chas. H. Bilz Insurance

Chas. H. Bilz has become a closer family by assisting with the needs of the Emergency Shelter of Northern Kentucky in Covington, K.Y. The agency has collected clothing, blankets and other necessities, as well as cooked and served many dinners. Earlier this year, the agency won a contest with Safeco Insurance that awarded the shelter $10,000.

The Florida Association of Public Insurance Adjusters Community Affairs Committee, chaired by Karen Schiffmiller, launched the Public Adjusters Pay It Forward campaign several years ago where members can donate monies and/or volunteer their time for community events. FAPIA has supported: Joe DiMaggio's Children's Hospital, Boca Helping Hands food bank, JAFCO Children's Ability Center and helped Gigi's Playhouse Down Syndrome Achievement Center break ground in Tampa, Fla. Members have helped build multiple homes through Habitat for Humanity, and last month, FAPIA members raised $16,500 for the Jessica Junes Children's Cancer Foundation.

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NATIONAL | Special Report | The Charity Issue

Soules Insurance Agency LP, A Dean & Draper Company

GND Resources United Valley Insurance Services

United Valley Insurance Services Inc. supports local non-profits with corporate giving and through UV Cares, an employee led group that raises funds and volunteers for local non-profits. In August, the team presented funds to the Central California Food Bank and the Animal Compassion team (ACT). In September, the team raised funds for the 2018 Fresno-Clovis Walk to End Alzheimer's, and in October, helped pack 15,000 meal boxes at the Community Food Bank warehouse in Fresno, Calif.

In September, GND Resources joined 20 other insurance company teams and about 100 individuals for the 4th annual Covenant House Re/Insurance Sleep Out. The Covenant House provides shelter and support for thousands of homeless youths across Canada, the U.S. and Latin America. The group then spent the night sleeping on the blacktop outside Covenant House's midtown Manhattan facility in a show of support for its residents and efforts. The event raised about $400,000.

Black Hills Insurance Agency

Black Hills Insurance Agency participated in the annual clothing drive for the homeless and those in need program in Rapid City, S.D. Each year, the community adds scarfs and hats to the towns presidential statues during the cold winter months for the homeless or those in need to take. The project draws awareness to the homeless population and inspires community support for those less fortunate. Pictured: Elizabeth Brown, Carrie Maguire, and Everett Strong.

Fisher Brown Bottrell Insurance Inc.

Insure My Food Mack Insurance Group

Every year, Mack Insurance Group selects a local charity to support by donating time, talent or treasures. It tries to do this through walks, bowling events or sponsoring birthday parties. During its annual Chocolate for Charity event, employees collect office supplies, personal hygiene items and/ or food items. In 2018, Mack also began a charity-based referral program where $10 is donated to a designated charity for every referral the agency quotes. As a result, in 2018, the agency donated $930 to Aid to Victims of Domestic Abuse and $470 to the Women's Center of Brevard.

After hurricane Harvey, Insure My Food raised $6,000 from its partners and insureds to help provide hot meals to affected communities and emergency shelters. The funds were spread out to meet needs for the first week, and then again after the first month when other organizations left. The agency's customers who own food trucks donated their truck and time, and the funds were used to pay for the food cost.

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Employees at Soules Insurance Agency LP, a Dean & Draper Co., put in countless hours and support for the agency's local community. One charity it supports is the Montgomery County Food Bank. This year, the agency is collecting food items again and recently made a donation that will provide 2,500 meals toward Montgomery County Food Bank's Holiday Food Drive. Pictured: Matt Bottorff, Allison Hulett, Stephen Smith and Lindy Johnson.

Turner Surety and Insurance Brokerage Inc.

Each year, Turner Surety and Insurance Brokerage Inc. (TSIB) dedicates a day to local charities. Its Paramus, N.J., office spent the day at the New Jersey Veterans Memorial Home. The home's mission is to serve military veterans, their spouses and Gold Star Parents by providing long term healthcare to its residents. TSIBâ&#x20AC;&#x2122;s Trumbull, Conn., office partnered with Valley United Way and helped build a garden in Seymour, Conn. The garden will feed up to 100 people.

Giving back to the community is near and dear to the employees of Fisher Brown Bottrell. One annual tradition is during Halloween week, associations alongside other companies volunteer at the YMCA in Pensacola, Fla. This is an event for special needs children, allowing them to dress up in their costumes and enjoy trick-or-treating. This year, Fisher Brown Bottrell was recognized as the most spirited group with their live from Disney's Red Carpet theme.

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Atlas General Insurance

Haylor, Freyer & Coon Inc. Alliance & Associates Insurance

The staff at Alliance & Associates has recently taken on two challenges to benefit the children and families of North Florida. With the holidays just around the corner, employees are committed to collecting gifts for Toys for Tots. This is a passion project for a few staff as they remember their childhood Christmases that were made possible by the generosity of others.

NFP Private Client Group

NFP Private Client Group purchased 200 turkeys for a turkey giveaway in Winter Haven, Fla., hosted by professional boxer Andre Berto. Each year, Andre Berto reaches out to the less fortunate through a community initiative aimed at inspiring and uplifting the community in which he was raised. As part of his initiative, he hosts a turkey giveaway where he personally handouts out whole turkeys to families in need during the Thanksgiving season. One of NFP Private Client Group's employees, Jason Polynice, is the coordinator of the event.

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Supporting the community is part of Haylor, Freyer & Coon's core values. In addition to ongoing small scale projects, the agency picks a project that can involve the entire staff to be completed over several days. This year, the agency's Community Service Days were spent at Vankeuren Square, an affordable housing complex which needed its community room updated to make the children and parents gathering space more inviting and enjoyable.

Each year, Atlas General Insurance participates in several local charity initiatives as a company. This year, Gowrie Group one effort helped collect mass Every year between November and amounts of food for the San Diego December, Gowrie Group, a Connecti- Food Bank. This year alone, Atlas cut independent insurance agency, General collected 1,950 food items. challenges its local community to raise money for The Shoreline Soup Kitchens & Pantries (SSKP). This year, Gowrie has set a goal of raising $200,000. On Nov. 1, Gowrie Group launched this yearâ&#x20AC;&#x2122;s challenge with a $30,000 matching gift. Gowrie Group is committed to help end hunger along the Connecticut shoreline. Since the Gowrie Challenge began 14 years ago, Gowrie has raised more than $1.5 million to benefit the SSKP.

Soarella Inc.

East Harlem Insurance Brokerage

The East Harlem Insurance Brokerage supports its community by volunteering with Girl Scouts and runs four troops showing young women they can do anything they want in life.

C&S Specialty Underwriters LLC

C&S devotes time to give back to the community both as a company and as individuals. Its main focus is the Atlanta Mission, a non-profit organization founded in 1938 to serve Atlanta's metro area homeless population. Semi-annually, the C&S staff volunteers at the Atlanta Mission to prepare lunches for residents, clean and organize closets and the day care space, load and unload delivery trucks, and more. In addition, the staff is involved in other outreach organizations on an individual level.

Soarella Inc. employees have a passion for education because they are teachers, too. Soarella employees are educators of insurance! The company's community outreach events include visiting schools that have unique year-round programs to serve a specific population (the autistic and the deaf community). Employees collaborate with each school to fulfill the wish lists of teacher(s) or programs (art/science). They also plan interactive team-building exercises and goofy games with the purpose of brightening the day for those who are passionate about learning.

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NATIONAL | Special Report | The Charity Issue

Aspen

Oklahoma Agents Alliance Verreos Insurance Agency

One way that Verreos Insurance Agency gives back is by supporting and serving as the chair for the Golden Gate District Scouting For Food, an event that has contributed over 140 tons of food to the San Francisco-Marin Food Bank for the past 32 years. All food is collected by Cub Scout families, Girl Scouts, and Boy Scouts.

OAA makes it a priority to support the community in many ways throughout the year, but the crowd-favorite is its Annual Toy Exchange and Food Drive. Every year, OAA team members draw a name of another member and buys a children's toy to reflect that person's personality or interests. A few weeks later, staff gather with toys and non-perishable goods. As each person unwraps their gift they hear why it was chosen for them. All the new, unwrapped toys and non-perishable goods are then donated to a local charity that provides gifts and dinner baskets to families in need.

Insurance Licensing Services of America

Since 2007, ILSA has supported the Relay for Life for the American Cancer Society. An ILSA team of volunteers annually offers a variety of fundraisers â&#x20AC;&#x201C; including a version of a popular baking competition show and getting the local sheriff to kiss a goat. The finale is a Pie in the Face Auction. This year, when an employee lost a close family member to cancer, ILSA employees decided to dedicate Pie in the Face proceeds to supporting her and her family.

Georgia Agency Partners, Inc.

Abbate Insurance Agency Pacific Specialty Insurance Company

At Pacific Specialty, there is always an underlying drive to give back to our community. This year, claims team member Malia Schild took the initiative to figure out where resources would be best served and discovered that the Sacramento Food Bank was in need of food items for the holiday season. A friendly office competition led to a collection of 10 bins of food to donate to the food bank.

In 2015, Mary B. Pursell, president of Abbate Insurance Agency, started her own nonprofit called Linens of Love. The charity provides sheets, pillows, blankets, toiletries, and other household items to community organizations that service homeless men, women, children, and veterans. Linens of Love's central drop off location for donations is located at Abbate. Each employee volunteers to make deliveries and organize donations at least once a month.

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Aspen recently sent eight employees as first-time Adara Ambassadors to Nepal. The group traveled with Adara representatives to Kathmandu and Ghyangfedi to learn about projects that Aspen supports. The Adara Group works with communities and local partners to improve the health and education for women, children and communities living in extreme poverty. Since Aspen's partnership with Adara began in 2007, the company has donated almost $3 million and its employees have undertaken countless fundraising events, raising more than $1 million.

Garceau Insurance Agency

Garceau Insurance Agency has Jean Day Friday. Employees pay to wear jeans every Friday throughout the year. The agency matches what's raised in the jean fund, and shops for 5-10 local families who need a little extra Christmas cheer.

Georgia Agency Partners Inc., held their 3rd Annual Charity Poker Tournament to benefit The ALS Association of Georgia and The Emory ALS Center. Georgia Agency Partner associates joined its carriers, brokers and vendor partners to play a great night of poker and raise money for a great cause. GAP and partners raised $53,000 for these great causes, an increase of $10,000 over last year's event. GAP underwrites the cost of the event entirely, which means that all donations from carrier/broker/vendor partners and agencies go directly to the cause. The 2018 Winner was Mark Gromek with Builders Insurance Group.

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Kaplansky Insurance Agency

NAS Insurance Services Appalachian Underwriters

Appalachian Underwriters Inc. is in its fourth year of supporting the Smoky Mountain Children’s Home through a holiday angel tree. Members select a child’s ornament from the tree, which includes a wish list of items. Volunteers then deliver the gifts and a meal to the children days before Christmas. Located in Sevierville, Tenn., the Smoky Mountain Children’s Home is a private, faith-based, not-for-profit agency that provides professional care and treatment for boys and girls referred due to emotional, behavioral, and life situations.

NAS has been committed to the initiatives of social, environmental, and educational well being through its generous gifts to and support of several worthwhile causes and organizations for 20-plus years. In 2017, NAS instituted a charitable committee comprised of employees. Together, the committee researches and coordinates community events to engage employee participation in volunteering. In its inaugural year, NAS raised more than $15,000 in support of the Breast Cancer Research Foundation. NAS has cleaned up local beaches, planted and watered trees in local mountains and volunteered at Children's Hospital LA.

The Hartford

The Hartford partnered with the Hartford Fire Department to host a fire safety day for children in kindergarten through fourth grade during National Fire Prevention Week. Students met local firefighters from the Hartford Fire Department, toured their fire truck and tried on gear. The event is part of a three-year commitment, announced in 2017 as part of The Hartford’s Junior Fire Marshal Program, which will provide $2 million in grants and educate 1.5 million children in the 100 cities with the highest home fire risk in The Hartford’s Home Fire Index.

USI Insurance Services

Morris & Garritano Insurance Hugh Cotton Insurance

For several years, Hugh Cotton Insurance has partnered with an organization founded by a local radio DJ. The Baby DJ program collects toys for economically disadvantaged children. Hugh Cotton collects toys every holiday season, and just before Christmas drops the toys off at the Baby DJ warehouse for distribution.

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Beyond simply providing financial donations, Morris & Garritano Insurance also gets involved and participates in various events that make California’s Central Coast such a unique and wonderful place to live and work. One of our employees’ favorite annual activities is donating gifts to Big Brothers Big Sisters of SLO County and to the Boys & Girls Club of Santa Maria. This is an opportunity where employees get to spread some love to the littlest community members. Each year the list of kids in need grows, and each year the agency fills it up in record time.

The Kaplansky team donated over 100 gifts to Christmas In The City's holiday party. Each year, Christmas in the City brings holiday magic to thousands of kids and their families in the Boston area who've been experiencing homelessness and the stress of poverty. Kaplansky believes that these children and their families deserve a day that's all about being welcomed and cherished, joyful, and worry-free.

Charles J. Sellers & Co. Inc.

Meeting needs of its local community is important to Charles J. Sellers & Co. The agency consistently support causes affecting their community. This includes collecting food for the Martin Luther King Day of Service; collecting items to donate to the International Institute of Buffalo which helps survivors of human trafficking and domestic violence; spending the day painting and fixing the Buffalo Peace House which shelters asylum seekers and refugees; and participating in St. Luke's Mission of Mercy's Adopt-A-Family program for the holidays.

USI has created a corporate social responsibility program called USI Gives Back. USI conducts a yearly nationwide campaign in which more than 6,000 associates across the country come together to give their time, talent and treasure back to their local communities. Since the program’s inception in 2014, more than 80,000 volunteer hours have been logged, impacting more than 1 million lives. USI offices participated in 317 local community service events across the U.S. in 2018 alone, volunteering at food banks and depositories, animal rescue shelters, senior centers, women’s crisis shelters, Title 1 schools, homeless rescue missions, local zoos, and public parks to name a few.

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NATIONAL | Special Report | The Charity Issue

AmWINS Brokerage of Florida, AmWINS Access (Jacksonville) AmWINS Brokerage and Access employees visited the Florida Panhandle in early November to help families recover from Hurricane Michael. They partnered with the Florida Association of Insurance Agents to collect and donate a truckload of supplies. The team helped families by cleaning up debris and recovering their belongings. Some of the victims were employees of Hutt Insurance Agency, a longtime partner of the office.

InsuranceTrak Services

InsuranceTrak Services has a soft spot for rescue animals as its CEO rescued a little chihuahua named Balthazar last year. He has even become a company mascot. Since Balthazar was adopted, the company has made every effort to give back to those charities that support rescuing animals as they have brought the CEO's family, and even the staff at InsuranceTrak, so much joy. This holiday season, InsuranceTrak Services decided to support the local Pet Stop Here Rescue in Rochester, N.Y., by placing a donation box at the front desk.

Bolton & Company Bolton has a long history of supporting nonprofit organizations. The Bolton Foundation, a nonprofit that operates as a component fund of the Pasadena Community Foundation, is driven by employees through internal fundraising campaigns and events. Employees receive volunteer time to take part in charitable efforts. Contributions are provided through yearround fundraising efforts of Bolton & Co., The Bolton Foundation and its partners. This includes the “Throw Down” event, a cornhole tournament held at the Rose Bowl in Pasadena.

Philadelphia Insurance Companies

Nearly 18,000 children are diagnosed with type 1 diabetes each year. Philadelphia Insurance Cos. employees voted to support American Diabetes Association Camps to help empower kids living with the disease. Through a year-long campaign, PHLY employees raised more than $175,000 and volunteered 1,110 hours to promote diabetes awareness. PHLY matched every dollar for $350,000 in donations to the ADA Camps program, which delivers education and camp fun to kids in a medically safe environment.

28 | INSURANCE JOURNAL | NATIONAL DECEMBER 17, 2018

Frank Winston Crum Insurance Company Pacific Interstate Insurance Brokers

On Oct. 9, 2017, wildfires raged across the Sonoma County, thousands of homes and buildings were destroyed by the fire. Pacific Interstate Insurance Brokers wanted to help fire victims with money and necessities. With help from its affiliates, PIIB raised $16,000. Member agents donated a total of $7,200 and PIIB donated $8,800. We were able to provide 150 care packages for agencies and their clients who were affected by the Sonoma Fires.

Frank Winston Crum Insurance, a Clearwater, Fla.-based independent insurance company, started the FrankCrum Golf Invitational in 2007 to benefit Trinity Cafe in Tampa. The annual event has since raised more than $1 million for the hungry and homeless. FWCI employees volunteer regularly at Trinity Cafe, and donate $1 each week for the privilege of wearing jeans on Fridays. FWCI’s founder, Frank Crum Jr., sits on the Trinity Cafe Board and has supported the Tampa Bay area community for decades.

AmWINS Brokerage of California, AmWINS Access (Woodland Hills) TMNA Services

TMNA Services offers many ways for employees to give back to charitable organizations each year. In celebration of National Disability Employment Awareness month, TMNAS hosted a Lunch and Learn with a guest speaker from Special Olympics Pennsylvania. In 2018, TMNAS was the presenting sponsor of the annual Special Olympics PA Leprechaun Run in Philadelphia for the third year. TMNAS presented a check for $10,000 and employees raised an additional $2,179.

On Aug. 22, the Woodland Hills, Calif., office comprised of more than 70 AmWINS Access and AmWINS Brokerage of California employees, arrived at the Golden Heart Ranch for their Summer of Service project. The 22-acre property is being designed as a life-long residential community for young adults with special needs. AmWINS employees built a gazebo by the pool, fenced around the tortoise run, landscaped walkways and common areas, assembled shelving in the tool shed, restacked wood and cleaned out the Club House and Art Center.

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Insurance Office of America

USLI AssuredPartners

AssuredPartners supports local communities throughout its 185+ offices. Many offices host food and toy drives at the holidays in addition to fundraising efforts throughout the year such as charity runs, serving at homeless shelters, delivering food for Meals on Wheels among other efforts. They partnered with Habitat for Humanity of Metro Denver for several years in the Annual Women’s Build event, which provides those in need with a tangible donation and empowers women to get involved in manual volunteer labor.

USLI gives back in many ways. The USLI mindset is that it's never too late to help others and always be prepared to fulfill their needs. One USLI initiative supports Breastcancer.org, a nonprofit located in the Greater Philadelphia Area. This nonprofit allows women and families affected by breast cancer to access medical information, prevention information and more. USLI donates 1 percent of its new business premium to Breastcancer.org during the month of October, and hosts an annual online auction getting its customers, law firms and vendors involved as well.

SIAA

SIAA, Strategic Insurance Agency Alliance, is an organization dedicated to the creation, retention, and growth of the independent insurance agency. Over the last two years, SIAA has also raised over $310,000 for charities benefiting people in communities throughout the country. For Veteran’s Day and to support those who served, SIAA raised more than $30,000 for the Wounded Warrior Project. Since they first started working with Wounded Warrior Project two-and-ahalf years ago, SIAA has raised more than $187,000 for the organization.

Just days after Hurricane Irma hit Florida, home to over 20 Insurance Office of America locations, Hurricane Maria hit the island of Puerto Rico and left behind an unprecedented path of destruction. IOA’s leadership helped by donating $50,000 to United for Puerto Rico, a nonprofit set up to benefit the residents of Puerto Rico impacted by natural disasters. The company encouraged its employees to do the same, and used its billboards on Interstate 4 to raise awareness and support.

Networked Insurance Agents Woodruff Sawyer Gulfshore Insurance

The Gulfshore Humanitarian Foundation determines the charities it will support in the upcoming year based on votes cast by associates, agency-wide. In 2018, the Soak The Sales Team event, brainchild of Kim Ovaitte, senior vice president, raised more than $10,000 for Naples-based Avow Hospice. Donations "poured" in from all over Florida and nationally from Gulfshore associates, clients, carrier partners and local businesses.

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Through its community service arm, CARE, Woodruff Sawyer employees have raised over $50,000 and collected 1.5 tons of donated food for charitable organizations throughout the country — all spearheaded by employees. Employees in the San Francisco CARE have put together a charity program that spanned a range of organizations in 2018. Activities included: Backpack Drive to Benefit Hamilton Families, an organization that helps support homeless families in San Francisco and a volunteer day at the SF-Marin Food Bank where employees helped with preparing food for the more than 225,000 people.

First Insurance Company of Hawaii Ltd.

First Insurance Company of Hawaii and its employees support many nonprofits each year. One prominent example is FICOH's support of the American Red Cross of Hawaii and its life-saving "Sound the Alarm" campaign. In May 2018, the ARCH surpassed its goal of installing more than 1,000 smoke alarms in Hawaii homes at no charge. They did so with the help of FICOH volunteers, who donated their time on several occasions, and the leadership of Hawaii campaign chair and FICOH CEO Jeff Shonka.

The historic Camp Fire that destroyed the town of Paradise, Calif., was less than 75-miles from Networked Insurance Agents' headquarters in Grass Valley. Due to extreme hardship of those affected, Networked wanted to help this holiday in a small way. Several families of its employees were affected so for this year's annual Adopt-a-family gift drive, Networked connected with three families from Paradise who are relatives of Networked employees. The compass shown above is the only item left from one home that burned in the fire. It was a wedding gift from a woman to her husband. Networked hopes this year's gift drive will provide a glimmer of joy and normalcy for these families during Christmas time.

DECEMBER 17, 2018 INSURANCE JOURNAL | NATIONAL | 29

Idea Exchange

The Wedge

Should You Hire an Appointment Setter?

By Randy Schwantz

ne of my mentors, Dan Sullivan, says: “All progress starts with telling the truth.” Is it true that you don’t spend enough time prospecting to have a pipeline of real opportunities that you can win? And that by winning them, you can continue to grow your book, grow your personal income and your personal wealth? Another great mentor, Stephen Covey, the author of “The 7 Habits of Highly Effective People,” said: “Begin with the end in mind.” I encourage you to move all the way out to the day you decide to hang it up, to quit selling insurance … the day you retire. How much money do you want in your retirement account? Financial advisors will tell you that you need approximately 22 times your annual living expenses in your retirement account. That means that to have a $100,000 lifestyle at retirement, you need $2.2 million in your retirement account. I have asked several thousand producers: “Do you know how much money you need, and are you making that deposit annually?” Most producers are deluding themselves: They are way underfunding their future. Before talking about hiring an appointment setter, which could be a perfect strategy to enable you to reach your income

goals, it makes sense to get clear on why. The why comes in the form of how much money you need to enjoy a great lifestyle today, while also funding your future. Most families with two kids should be saving at least $45,000 a year to pre-fund for two cars, two university tuitions and one great retirement. Further research tells me most are saving less than $15,000 a year. Net result: they are underfunding their future by approximately $30,000 a year. That’s good information to know to make a plan for how to grow your book, income and wealth. By the way, yours truly got on this plan 23 years ago and it’s worked very well. This is not hypothetical malarkey; this is real stuff. Are you underfunding your future? Do you want to hang it up someday with a lot of jingle in your retirement account? If so, all you have to do is figure out how to get there. That is one reason why you might want to hire an appointment setter.

Figure out if it makes sense to hire someone to compensate for one of the biggest gaps that is killing your growth: not enough prospecting effort. Hunters, Trappers, Skinners

Producers an be categorized as hunters, trappers or skinners. Here is the obvious distinction. A hunter is willing to prospect, even though it is uncomfortable. They are also good at closing the business. So, a hunter, by this definition, is the primo producer. They have the fullest pipelines, they write more new business annually, and they have the biggest books. A trapper is a little different. They prospect occasionally, but they are opportunistic. Prospecting is not really in their vocabulary. But, if you put a trapper in front of a

30 | INSURANCE JOURNAL | NATIONAL DECEMBER 17, 2018

good prospect, the prospect won’t get away without buying. It’s one of those ironies that is difficult to figure out. A trapper can sell but is not much of a prospector. Slim pickings on the pipeline front. A skinner is neither a prospector nor a seller, but will retain an account for a lifetime. The problem is clear, there are only a few hunters in most agencies. And if they are true hunters, they’ve built a big book of business, even to the point where prospecting becomes a secondary activity. The trappers never were good prospectors, and the skinners are, by this definition, fake producers. With this said, you should do some math. Figure out if it makes sense to hire someone to compensate for one of the biggest gaps that is killing your growth: not enough prospecting effort.

Cost - Benefit Analysis

Think of this as a math problem first and foremost. Determine the economics of hiring an appointment setter to see if it makes sense. Suppose you hire an appointment setter and pay them $500 each for a new business appointment. Is that a good deal? It depends, doesn’t it? If you can close 50 percent of the time, the cost of a sale becomes $1,000 each. As a producer, you get 40 percent new and 25 percent renewal. That means you get paid $2,000 in commission for selling the account. You paid $1,000 in appointment-setting cost. Net income first year: $1,000. On renewal, you get 25 percent on a $5,000 deal or $1,250 annually, and you will probably keep the account five years; that’s $6,250 in your pocket on the renewal and $1,000 from writing it for a net commission earned of $7,250. If you don’t hire an appointment setter, there is a good chance your appointment count is going to be significantly lower. If you rely on your own ability, the difference could be significant. How many first time, INSURANCEJOURNAL.COM

new business appointments do you set annually (if you told the absolute truth)? Is it five new business appointments, or maybe even 10? If you had an appointment setter, it could easily be three-to-four per month or 35-to-50 annually. The effect on your growth and personal income is significant over a five-year period. It’s probably the difference between writing $35,000 to $50,000 annually if you continue to do it on your own. If you hire an appointment setter, you could increase that to $100,000, maybe even $200,000, of new business annually.

No Shame, No Blame

Dan Sullivan, the strategic coach, once said: “You can’t make $100,000 a year doing $12 per hour work.” It’s just as true that you can’t make $500,000 a year doing $50 per hour work. Sometimes, the No. 1 thing you should do is delegate tasks that others can do, so you can do $500 per hour work. Meeting with prospects and closing the INSURANCEJOURNAL.COM

deal is $500 per hour work. That is your unique skill, and you should spend as much time as possible in that role if your goal is growing your income and developing your personal wealth. Dialing for dollars is also a unique skill. If you can pay someone to do that for you so you can do what you are great at, and it brings in an enormous amount of money, then do it.

Time, Talent, Fear and Phobia

There are a lot of ways to justify having an empty pipeline. Here are just a few. Time. If you’re a successful producer, you know how much time it takes to manage a book of business. Depending on the make-up of the book, it can be overwhelming at times. When it is, setting up a call block on your calendar and dialing for dollars is the last thing on your mind. When that happens, the pipeline dries up and with it, your potential to grow your income diminishes, unless you’re lucky or have a great network of referral sources

pumping opportunities your way. If time is your problem, the smart thing to do is to delegate activities. Setting appointments could be your No. 1 opportunity. Talent. There are some people that are good on the phone and some that are not. If you are the latter, then delegate this part of your job to someone who is good. Pay them well to queue up opportunities for you. Fear and Phobia. Some people, even successful salespeople, have a negative visceral reaction to making cold calls. It scares them. Yes, it’s irrational for an adult to get scared picking up the phone and calling someone (it’s impossible to get hurt physically), but you could get crushed emotionally, and that’s enough to keep a lot of good people from making the dial. I had the same problem when I started my business. For whatever reason, when I started dialing on the phone, I imaged the buyer looked like Telly Savalas - a bald man with big fat sagging cheeks, a stogie in his

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DECEMBER 17, 2018 INSURANCE JOURNAL | NATIONAL | 31

Idea Exchange continued from page 31 mouth and a deep, harsh sounding voice. It got worse. I could almost hear him screaming at me, “What do you want?” I’d get nervous and would have this awful feeling in my gut. There were many times that I would quit dialing, get up and go to the bathroom, get a cup of coffee, come back in the office and start writing a letter instead. Irrational, yes, but real in my mind. Fortunately, I ran into Tony Robbins, did some pseudo psychological reframe work on the problem, and it went away. Had I not, it would have been a huge obstacle to my success. If you suffer from cold call reluctance, there are places to get help. If you don’t, your paycheck will suffer along with your self-esteem. There is no shame in admitting this is tough, but don’t sit and suffer. Do your research and find help. It could be worth several million dollars in income.

Know Your Numbers

If you want this to work really well, you have to be realistic. Optimism could be a fatal mistake. There is a ratio of dials, conversations, appointments. There is a good chance that the ratio of dials to appointments is much worse than you’d anticipate. You need to know what they are over a long enough period to set and maintain expectations. Like most things, this is more difficult than it looks. But it could be a life-changer if you can master it.

The Wedge You want to know if leaving a voicemail will make your numbers better. Does sending an email or a series of emails improve appointment conversion? The other big variable is the “punch” the first thing your appointment setter says to gain the prospect’s attention. This is critical. If it’s not loaded with a compound benefit/pain statement, there is a high chance that the buyer will go into automatic response syndrome and end the call without hearing a word. The four big variables are your list (who you are calling), your punch (the bold statement used to get their attention), your voicemail strategy (think of it as marketing messages) and your email strategy (designed to gain attention before the call). You need to test all of these to hone-in on the most successful pattern.

Efficient and Effective

If you haven’t read Jeb Blounts’ book, Fanatical Prospecting, it’s time to pick up a copy. Be prepared, he’ll hit you in the nose with his blunt comments. One of the many things he lays out in his book is the formula: Efficient + effective = performance. (Efficient is the number of dials made during a call block. Effective is the ratio between dials and appointments set.) The point is simple: For this to be a successful, ongoing venture, you need an efficient method for your appointment setter to get through a lot of dials during a call block. If your appointment setter is working with spreadsheets, the traditional off-the-shelf CRM system, sticky notes or anything that wasn’t designed for efficiency, it’s going to cost you. The other piece is effectiveness. If someone can make 60 dials but can’t convert them into appointments, then what difference does it make? That is why your appointment setter needs a strong “punch” to open the call and get the prospect’s attention. Combine that with a compelling story and a simple line to close the appointment and you can develop someone into an effective appointment setter. Combine your efficiency with effectiveness and you’ll get the result you desire — appointments with the right buyer.

32 | INSURANCE JOURNAL | NATIONAL DECEMBER 17, 2018

Caveat Emptor: Buyer Beware

As in all things, there are numerous telemarketing firms vying for your business that say they have the ability to set appointments on your behalf. Some can, most can’t. If you consider a service of this type, do your homework. Find out how they train their personnel. Many firms are bottom feeders, meaning they hire $15 per hour people and give them a basic script. Unfortunately, they sound like teenagers reading a script. The only people that respond are those that would entertain a quote from anyone (bottom feeders). In most cases, they are not your best prospects.

There is a good chance that the ratio of dials to appointments is much worse than you’d anticipate. If you retain this type of firm, you’ll probably go through three phases: Euphoria, disappointment, then anger. In the beginning, you’ll be glad you have someone else dialing for you (euphoria). But when they set appointments with people that want to email you the dec sheet from the policies and expect a quote, you’ll be disappointed. Generally about four-tosix months into the relationship, you’ll acknowledge it was a mistake, and you’ll get angry that you wasted time and money. So, do your homework. Ask tough questions. Find out who will be making dials on your behalf. If you don’t, it could be an ugly and expensive ending. Your other option is to do it yourself. There are places you can find talent, such as Upwork or Fiverr. These are job boards where you can post your job and see who responds. The bottom line is you should determine who you are (hunter, trapper or skinner), what you want (financial freedom or financial chaos) and take action to get it. Schwantz is founder of The Wedge Group. Email: randy@thewedge.net. Phone: 214-446-3209. Website: www.thewedge.net. INSURANCEJOURNAL.COM

Idea Exchange

Corporate Social Responsibilty

Take Corporate Citizenship to the Next Level with Coalitions

By Brad Whatley

nterest in corporate social responsibility (CSR) has grown substantially in recent years. What used to be just a recommended business practice is now a mandate for organizations across all industries. Employers clearly see the business benefits of CSR, working to maximize their environmental and social impact within an enterprise framework. Companies that demonstrate their commitment to local communities continue to see increased profitability, as well as enhanced employee recruitment and engagement. As a result, corporate citizenship has become much more than a strategic public relations exercise. Insurers form internal committees and hold strategic discussions to improve their involvement in the public sphere. Now, companies are taking their social commitments to the next level by partnering and forming coalitions with like-minded organizations for various social causes. CSR coalitions have grown in number and diversity as organizations and stakeholders already aware of the business case for corporate citizenship have started to look for additional outlets. By forming coalitions, member organizations find opportunities for their senior management teams and leading professionals to build personal networks and gain the confidence of key industry leaders. Active participants bring insurers closer to their key markets, INSURANCEJOURNAL.COM

attracting more investors and business partners, and generating additional business opportunities. Devoted engagement in CSR coalitions also yields better results in employee recruitment. By now itâ&#x20AC;&#x2122;s no secret a robust corporate citizenship program makes a company more attractive to potential employees. According to Cone Communications, 58 percent of people consider a companyâ&#x20AC;&#x2122;s social and environmental commitments when deciding where to work. Actively participating in CSR coalitions on top of existing internal efforts ensures candidates are more aware of their potential employersâ&#x20AC;&#x2122; devotion and contribution to social causes. Enterprise commitment to CSR coalitions can be a decisive influencer on employee retention. The survey found 74 percent of employees feel their job is more fulfilling when they are provided opportunities to make a positive impact on social and environmental issues. Much of the corporate world, including insurance, already has its own internal corporate citizenship committees and initiatives. While these may satisfy the current employee demand for employer social commitment, CSR coalitions are an opportunity for forward-thinking insurance organizations to

set themselves apart and lead the industry as an employer-of-choice. Coalitions also provide participating organizations substantial employee training opportunities. Employers can intentionally choose their own representatives for CSR coalitions. By doing so, representatives can improve their leadership capabilities and network base. It also provides a chance for successors to introduce themselves to other industry leaders and start building a foundation for future external business partnerships. There is no good reason not to engage in CSR coalitions. Insurers not yet active in CSR coalitions should consider whether they can continue to afford missing out on the extensive benefits. There is a limit to what individual companies can do on their own to increase the engagement and outreach of their efforts. Joining relatable coalitions, or even founding one, can help member insurers stand as model employers that identify and disseminate good practices. Organizations looking to involve themselves with these humanitarian partnerships should start off by identifying appropriate leaders within their ranks to represent the business and lead the agenda. Ideal representatives are talented social entrepreneurs who understand the

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DECEMBER 17, 2018 INSURANCE JOURNAL | NATIONAL | 33

Idea Exchange continued from page 33 necessity of corporate citizenship and are prepared to devote time and resources to engage with other organizations. It is advisable to select energetic, passionate executives who are not afraid to be exposed

Corporate Social Responsibilty to media and possess the ability to broker between businesses and stakeholders. The appointed executives should hold discussions with internal leaders and actively reach out to other like-minded organizations or existing coalitions. The

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34 | INSURANCE JOURNAL | NATIONAL DECEMBER 17, 2018

involved parties can hold regular meetings to align their interests and plan the right initiatives. Inviting local governments and institutions to join the meetings can also help organizations identify relevant social issues and learn valuable first-hand knowledge. The meetings may also be utilized to exchange progressive ideas about how to encourage more responsible businesses to take public advocacy positions.

Now companies are taking their social commitments to the next level by partnering and forming coalitions with like-minded organizations for various social causes. Successful CSR coalitions open their memberships to professionals of all levels. Participating organizations should invite employees to participate regardless of their levels or positions. A coalition benefits most from fostering an environment where multiple generations take part in testing solutions and sharing actionable insights under a unified mission. Having diverse perspectives when setting the future agenda is crucial in tackling the timely social and environmental problems local communities are facing. In today’s market reality, founding or joining business-led CSR coalitions is a practical next step for forward-thinking organizations that already understand the value of corporate citizenship. Organizations participating in these coalitions will realize positive results in talent management and a competitive advantage in capturing business profits. Organizations not yet involved should appoint suitable leaders to interact with industry peers and experts and support the founding or entrance into an appropriate coalition. Through rigorous interaction with local communities and social causes, insurers will expand their business while recruiting and retaining top talent. Whatley is senior vice president of The Jacobson Group. Phone: 800-466-1578. Email: bwhatley@ jacobsononline.com.

11/19/18 11:07 AM

INSURANCEJOURNAL.COM

MyNewMarkets | NATIONAL

Campgrounds

Market Detail: K&K Insurance

Group Inc. (www. kandkinsurance.com) offers coverage for campgrounds, including private and franchised campgrounds with ancillary activities such as waterslides, amusement devices and motorized boating. Day camps are also eligible for coverage. Coverage available: general liability, property, commercial auto, excess liability, and workers’ compensation (in select states). Eligible risks should have three or more years of management experience, and risk should be restricted to occupancy. Available limits: Minimum $5,000 Carrier: Scottsdale, Ariz. States: All states Contact: Tracie Reith at 877-355-0315 or email: KK.CampCgrdResort@ kandkinsurance.com

Tailored Community Association Plan Market Detail: U.S. Risk

Insurance Group LLC (www. usrisk.com) offers a community association insurance program for condominium, townhome and single-family community INSURANCEJOURNAL.COM

associations, called Tailored Community Association Plan. Available limits: As needed Carrier: Unable to disclose, admitted States: All states Contact: Bill Rinker at 800232-5830 or email: bill.rinker@ usrisk.com

Inflatables

Market Detail: Prime

Insurance (www.primeis.com) writes commercial and specialty excess and surplus insurance products. Coverages include: general liability, special events liability, liquor liability, product liability, parades, passenger liability, assault and battery, fireworks liability and excess general liability. Available limits: As needed Carrier: Prime Insurance Co., Lloyd’s paper also available States: All states Contact: Barbara Malkowski at 800-456-4576 or email: Barbaram@primeis.com

Public Auto Program Market Detail: The 5Star

Specialty Programs (www.5starsp.com) Public Auto Program is an auto liability driven program for public livery risks nationwide.

Expertise extends to charter buses, sightseeing buses, entertainer coaches, contract school buses, airport shuttles, limousine services, taxis and more. Breakdown service is also available. Available limits: As needed Carrier: Unable to disclose, admitted States: All states except Massachusetts. Contact: Customer service at 321-421-6777

Healthcare Professional Liability

Market Detail: Sullivan Brokers Wholesale Insurance Solutions (www.sbwis.com) can cover virtually any healthcare risk — any class, any hazard group, and any exposure — regardless of loss history or limits required. Available limits: Minimum $500,000, maximum $25 million Carrier: Unable to disclose, admitted and nonadmitted States: All states Contact: Pete Germain at 213833-6186 or email: germainp@ sbwis.com

JH Pro-Care

Services’ (www.jhinsurance. com) JH PRO-CARE program will consider any long-termcare risk, including skilled nursing, assisted living, intermediate or independent living facilities from single location, organizations to large chains, for-profit or not-for-profit, start-ups or insureds who have had previous claims issues. Maximum primary limits $2 million per occurrence; $4 million per location. Zero deductible, defense outside and defense inside available. Available limits: Maximum $12 million overall policy aggregate Carrier: Lloyd’s of London States: All states Contact: Chris Harris at 207374-5979 or email: chris. harris@jhinsurance.com

Workers Compensation

Market Detail: StateFund First (www.statefundfirst.com) is an approved access partner offering access to the California State Fund for Workers Comp. There are no fees. The online submission process is fast and easy. Available limits: As needed Carrier: California State Compensation Insurance Fund States: Calif. only Contact: Erica Bro at 415-5368422 or email: erica_bro@ statefundfirst.com This section brought to you by Insurance Journal’s sister website: www.mynewmarkets.com

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Idea Exchange

Minding Your Business

The 12 Days of Christmas – Good Personnel Management On the fourth day of Christmas, the agency owner said to staff:

“I want each of you to bring to the meeting three things that could be done to make your job better and more efficient.” On the fifth day of Christmas, the agency owner said to staff: By Catherine Oak and

“You sit in the desks and talk to the customers, so you really know what we need to do to make them happy and beat the competition.” On the sixth day of Christmas, the agency owner said to staff:

“The person with the best idea of improving the agency will get to bring their spouse and travel on the insurance company trip to Costa Rica with my wife and I.” Rachel Schoeffler

n the first day of Christmas, the agency owner said to staff:

“Our growth was phenomenal this year, thanks to you.” On the second day of Christmas, the agency owner said to staff:

“Everyone will get a percentage bonus based on their contribution.”

On the third day of Christmas, the agency owner said to staff:

“Our annual planning meeting will be held offsite at a beautiful resort.” INSURANCEJOURNAL.COM

On the seventh day of Christmas, the agency owner said to staff:

“The service staff will start to get cross-sell bonuses by introducing new coverages to the client on their own (business interruption, umbrellas, cyber, etc.).” On the eighth day of Christmas, the agency owner said to staff:

“We have Joan’s retirement coming up in commercial lines, if the current staff can handle Joan’s load, you will each get an increase.”

On the ninth day of Christmas, the agency owner said to staff:

“Any person who introduces a new hire that we need and

approve of will get a $1,000 bonus.” On the tenth day of Christmas, the agency owner said to staff:

“I want you to know that I am not intending to sell this agency. I will work with the key people here to find a way to internally perpetuate.” On the eleventh day of Christmas, the agency owner said to staff:

“We are implementing a new performance review form where you evaluate yourself and your goals and needs for working here. All management needs to do is read over your thoughts and add comments to help you get to where you want to go here.” On the twelfth day of Christmas, the agency owner said to staff:

“I am so proud and respect this team. I want you to know we could not have the growth and prosperity of this agency without you.”

Oak is founder and president of Oak and Associates. Schoeffler is a financial analyst and junior consultant. Phone: 707-935-6565. Email: catoak@gmail.com.

Advertisers Index Aon Affinity www.affinityhcp.com 34 Applied Underwriters 2, 3, 40 www.auw.com Nonprofits' Insurance Alliance Group www.niac.org 12 PersonalUmbrella.Com www.personalumbrella.com 39 Philadelphia Insurance Companies www.phly.com 5 Texas Mutual www.texasmutual.com SC3 United Fire Group www.ufgsolutions.com E5

DECEMBER 17, 2018 INSURANCE JOURNAL | NATIONAL | 37

Closing Quote

Strong Core Beliefs in a Rapidly Changing Industry More Important than Ever

By Jeff Menary

here’s nothing like a life-changing event to crystallize what’s truly important. It happened to me in September 2017 when I was diagnosed with West Nile virus. Just a few months before, I was to become CEO of the company where I had worked for nearly 40 years. I lost the ability to walk and to even speak. Since then, I’ve learned several lessons, but two things stand out. First, it’s essential for people to have a strong core philosophy about what’s important in life. Things like appreciat-

ing the value of family and friends, having a purpose of helping others and leaving a legacy really mean something. Major adversity brings out true character, and having a set of bedrock principles to live by will help you see through the toughest of times. Second, these core beliefs are essential for business organizations. After being admitted to the world-renowned Craig Rehabilitation Hospital in Englewood, Colo., I knew immediately the hospital was special. I also knew that Craig has been ranked as one of the top rehabilitation hospitals in the country by U.S. News & World Report for 27 consecutive years. Still, I was amazed at how every single person — from the doctors to the custodians — was so positive, focused and helpful. I wanted to learn more about Craig because I’m interested in business cultures. I began research while on a ventilator. I couldn’t speak, so I wrote my

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questions on a white board: “How long have you worked at Craig?” “How did you come to work here?” “Craig seems to have a unique culture. Tell me about the culture and why it is so special.” It only took a few conversations with staff to know I was on to something. Not only were they willing to share their answers, they went into deep detail about their professional journeys. They told me why they chose to work at Craig and what made it a special place. Virtually everyone said it was the best organization they’d ever worked for, and that they intended to remain at Craig until retirement. Craig has extraordinary technology and medical equipment, of course. But the value its people place on caring and service is its real secret sauce. That serves as a daily reminder for me now that I’m back at work and serving as CEO in a rapidly-changing industry. Yes, we know there’s an evolving consumer land-

scape served by new and formidable competitors. Yes, we know that technology is transforming our industry — and we’re investing in a lot of it. At the end of the day, though, I’m reminded of my experience at Craig that demonstrates that a commitment to genuine caring and great service has a lasting effect. Like Craig, insurance carriers and their agents and mutual partners serve people when they’re most vulnerable. Walking the walk of service-first core values every day, with one patient — or customer — at a time, is what builds trusted relationships in trying times. Those trusted relationships are a crucial part of leaving a meaningful legacy in this industry. Menary is president and CEO of Grinnell Mutual, a property-casualty company located in Grinnell, Iowa. He began his career with the company in 1980 and became CEO in March 2018. INSURANCEJOURNAL.COM

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