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April 15, 2019 • Vol. 97 No. 8

Contents News & Markets

Idea Exchange

Special Report

Commercial Auto Forecast Improves, But Not Much: A.M. Best

Closer Look: ‘Young Agents Are People, Too’

The Wedge: The 8 Deadly Mistakes Killing Growth

Renewable Energy Industry Sees Uptick in Claims

Special Report: 2019 Young Agents Survey

Embracing the MultiGenerational Workforce

Feds Issue Proposal to Ease Franchisor Liability

Spotlight: P/C Direct Premium Written Up 4% in 2018

Minding Your Business: Why Agencies Should Invest in People

Claims Journal: Insurers Are Curious, Cautious When It Comes to Chatbots for Claims

Closing Quote: The Industry Must Embrace Change

10 12 15

Students from Eight Colleges Participate in Virtual Agency Competition

Spotlight: New Atlanta-based Multicultural Women’s Group

Spotlight: What Companies May Not Know About an Exclusion Hiding in D&O Policies

Departments 6 Opening Note 18 4 | INSURANCE JOURNAL | APRIL 15, 2019

Business Moves

20 Declarations

20 Figures

22 People

46 My New Markets

INSURANCEJOURNAL.COM

OUT-THINK verb

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AGRIBUSINESS

A V I AT I O N

C A S U A LT Y

PROFESSIONAL & EXECUTIVE LIABILITY

CONSTRUCTION

PROPERTY

ENERGY

R E A L E S TAT E

E N V I R O N M E N TA L

T R A N S P O R TAT I O N

H E A LT H C A R E

LIFE SCIENCE

W O R K E R S ’ C O M P E N S AT I O N

RT BINDING

Opening Note Write the Editor: awells@insurancejournal.com

What Young Agents Think

his issue of Insurance Journal features exclusive results from the 2019 Young Agents Survey where young agents nationwide shared their views on the insurance industry and their experience as an agent (see page 30 for the full report). This issue also highlights the unique personalities of young agents by asking them important questions, such as the color of their office, what they would be doing if they weren’t an agent, and the stupidest thing they’ve ever done in their job. Don’t miss it. (see page 24). But most importantly, this year’s report found once again that the vast majority of young agents are happy with their career choice and the industry. Year-after-year, they cite the freedom and challenges that come with the job of an independent agent as perks of the job. However, there are some things young agents would change about the insurance industry or their career if given the chance. Here are two top 10 lists of what young agents like MOST and LEAST about being an independent insurance agent taken from the 2019 Young Agents Survey:

What Young Agents Like MOST

1. Freedom and flexibility of insurance sales, so many opportunities and products. 2. Relationships that you build along the way. 3. The security that comes with working within this industry. 4. Freedom of markets and client selection. 5. Helping people, making friends, problem solving. 6. Work/life balance. 7. I’ve met some of the brightest, most ambitious and kindest people in this career. 8. Great compensation. 9. What I like the most about being an independent agent is the ability to help. 10. The entrepreneurial aspect of running a business.

‘What I like the most about being an independent agent is the ability to help.’

What Young Agents Like LEAST

1. The stress of constantly having to meet a sales goal. 2. Too much service work put on salespeople. 3. It seems dated. 4. Manual underwriting - the time and lag from submission to quoting. 5. Lack of control in the outcome of claims. 6. The “good ole boy” network. 7. What I like least is the pushback from the older generation in teaching us the ins and outs. Other than that, I enjoy being an agent. 8. Slow to change. Systems are slow. Hesitance in everything and the loyalty to the old, inefficient way. 9. Perception. I know I bring value to my prospects and clients, but it is sometimes difficult to overcome other people’s perception of an insurance broker. 10. That people think I am too young.

Andrea Wells Editor-in-Chief

6 | INSURANCE JOURNAL | APRIL 15, 2019

Publisher Mark Wells | mwells@wellsmedia.com Chief Executive Officer Joshua Carlson | jcarlson@insurancejournal.com

ADMINISTRATION / CIRCULATION

Chief Financial Officer Mark Wooster | mwooster@wellsmedia.com Circulation Manager Elizabeth Duffy | eduffy@wellsmedia.com Staff Accountant Sarah Kersbergen | skersbergen@wellsmedia.com

EDITORIAL

Chief Content Officer Andrew Simpson | asimpson@insurancejournal.com Editor-in-Chief Andrea Wells | awells@insurancejournal.com East Editor Elizabeth Blosfield | eblosfield@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 & Contributors Columnists: Catherine Oak, Randy Schwantz Contributors: David Coon, Andrew Flynn, Jana Schellin Foster, Scott Jones, William Schoeffler, Daniel Wiessner

SALES / MARKETING

Chief Marketing Officer Julie Tinney | jtinney@insurancejournal.com West Sales Dena Kaplan | dkaplan@insurancejournal.com Romeo Valdez rvaldez@insurancejournal.com South Central Sales Mindy Trammell | mtrammell@insurancejournal.com Southeast and East Sales (except for NY, PA, CT) Howard Simkin | hsimkin@insurancejournal.com Midwest Sales Lisa Whalen | (800) 897-9965 x180 East Sales (NY, PA and CT only) Dave Molchan | (800) 897-9965 x145 Sales & Marketing Coordinator Ashley Berg | aberg@insurancejournal.com Advertising Coordinator Erin Burns | eburns@insurancejournal.com Insurance Markets Manager Kristine Honey | khoney@insurancejournal.com Senior Strategist Pam Simpson | psimpson@insurancejournal.com Social Media Manager Ly Short | Lshort@insurancejournal.com Marketing Administrator Gayle Wells | gwells@insurancejournal.com Marketing Director Derence Walk | dwalk@insurancejournal.com

DESIGN / WEB / VIDEO

V.P. of Design Guy Boccia | gboccia@insurancejournal.com V.P. of Technology Chris Thompson | cthompson@insurancejournal.com Ad Ops Specialist Jeff Cardrant | jcardrant@insurancejournal.com Web Developer Terrance Woest | twoest@wellsmedia.com Web Developer Ryan Kleshinski | rkleshinski@wellsmedia.com New Media Producer Bobbie Dodge | bdodge@insurancejournal.com Videographer/Editor Ashley Waldrop | awaldrop@insurancejournal.com

ACADEMY OF INSURANCE

Director Patrick Wraight | pwraight@ijacademy.com Online Training Coordinator Nathan Granitz | ngranitz@ijacademy.com

SUBSCRIPTIONS:

Call (855) 814-9547 or visit ijmag.com/subscribe Outside the US, call (847) 400-5951

Insurance Journal, The National Property/Casualty Magazine (ISSN: 00204714) is published semi-monthly by Wells Media 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 per special issue copy, $195 per year in the U.S., $295 per year all other countries. DISCLAIMER: While the information in this publication is derived from sources believed reliable and is subject to reasonable care in preparation and editing, it is not intended to be legal, accounting, tax, technical or other professional advice. Readers are advised to consult competent professionals for application to their particular situation. Copyright 2019 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. POSTMASTER: Send change of address form to Insurance Journal, Circulation Dept, PO Box 708, Northbrook, IL 60065-9967 ARTICLE REPRINTS: Contact (800) 897-9965 x125 or visit insurancejournal.com/reprints

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News & Markets Commercial Auto Forecast Improves, But Not Much: A.M. Best

‘Years of inadequate pricing and woefully inadequate reserving’ have left the sector with a premium base ‘unable to keep pace with deteriorating loss frequency and severity trends.’

.M. Best maintains its negative outlook for the U.S. commercial auto insurance market even though its analysts believe it should improve somewhat in 2019. That forecast stems from commercial auto insurers having taken steps to address their most problematic exposures, while previous years’ loss reserves are still adversely affecting current calendar results, A.M. Best said. “The rated commercial auto insurers report that they have implemented myriad measures aimed at addressing the issues they considered the most problematic relative to exposures to commercial auto losses, risk management, underwriting and pricing,” the A.M. Best report noted. 8 | INSURANCE JOURNAL | APRIL 15, 2019

“Unfortunately, based on industry profit and loss results, these enhanced underwriting pricing measures have yet to improve rate adequacy.” Those actions, in part, have included multiple years of rate increases. The U.S. commercial auto combined ratio was 112.9 through Q3 2018. A.M. Best said this compared to 111 in 2017 and 110.4 in 2015. The sector hasn’t had a combined ratio under 100 since 2010, when it hit 97.9. A.M. Best blames in particular “years of inadequate pricing and woefully inadequate reserving” that have left the sector with a premium base “unable to keep pace with deteriorating loss frequency and severity trends.”

With these factors in mind, A.M. Best predicts more problems in 2019. The ratings agency sees more deterioration in the net combined ratio through 2018 (data is available through Q3), which should lead to companies pushing for more rate increases in 2019. The added rate hikes should “bring the line closer to rate adequacy amid the ongoing escalation in current-year loss costs,” A.M. Best said. Even with rate hikes, A.M. Best’s report, “U.S. Commercial Auto Results Continue to Deteriorate,” sees U.S. commercial auto being challenged by more vehicles traveling more miles boosting accident frequency, the poor shape of U.S. roadways and distracted driving. INSURANCEJOURNAL.COM

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News & Markets Renewable Energy Industry Sees Uptick in Claims

As construction firms have come under pressure to build projects more efficiently and in shorter timeframes, less experienced personnel are being used to handle increasingly complex equipment, resulting in a higher frequency and severity of claims.

he frequency and severity of insurance claims in the U.S. renewable energy market have significantly increased over the last five years, meaning insurers and asset owners must reset their benchmark for renewable energy risks, according to an insurer that specializes in the renewable energy market. According to California-based GCube Insurance, the claims burst can be attributed to component vulnerability, defective designs and changing original equipment manufacturer (OEM) warranties, along with extreme weather damage. GCube said that at its recent Advisory Council meeting, asset owners and risk managers in the U.S. renewable energy market raised concerns about the impact of cost pressures, both on the integrity of assets and on sustainable insurance pricing. In particular, accelerated build times have caused an unusual amount of material damage during construction. As construction firms have come under pressure to build projects more efficiently and in shorter timeframes, less experienced personnel are being used to handle increasingly complex equipment, resulting in a higher frequency and severity of claims, attendees were told. 10 | INSURANCE JOURNAL | APRIL 15, 2019

At the same time, component failure has meant higher costs. The increased complexity of components makes them harder to replace in isolation. In wind energy, with newer blades, any component damage may mean replacing the entire blade, which raises operation and maintenance costs, the insurer said. Also, design issues in some uncertified models are resulting in equipment failure. While this issue may be resolved over time, both wind and solar projects remain vulnerable to mechanical and electrical breakdown in this period of continued technical innovation in the sector, the insurer said. A recent focus on cost-cutting and efficiency has also led to diminished OEM warranty strength. Due to increased losses and financial pressure, the quality of OEM guarantees has been reduced, GCube said, meaning that asset owners may end up without sufficient OEM support when equipment fails. These challenges have been further exacerbated by extreme weather risk, with wildfires, hurricanes and tornadoes now occurring out of season and accounting for 15 percent of all claims in 2018. For 2019 GCube expects continued high levels of

extreme weather losses, including continued wildfire claims in California, tornado damage in the Southeast and hurricanes. At the meeting, Jatin Sharma, president of GCube, discussed how the renewable energy industry has changed. “The renewables market has started to outgrow subsidies and with that comes a whole new level of competition. This pressure often has unforeseen results: apart from anything, increased M&A activity means you might end up with a project with a loss history that isn’t factored into calculations,” he said. He stressed the value of dialogue between insurers and insureds as a way to tackle these issues collectively. “We cannot overstate the benefits of open discussion between insurers, asset owners and investors. There are concerns within renewables that as the industry has matured, the insurance market has not kept up. Frankly, if we want to protect our future renewables growth, we collectively need to accept that it’s not the same industry as it was five years ago,” he said. “Increased price competition and a rush to acquire developer pipelines mean that some areas of the industry pose a much higher risk than before,” he said. INSURANCEJOURNAL.COM

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News & Markets

Feds Issue Proposal to Ease

Franchisor Liability By Daniel Wiessner

he U.S. Department of Labor issued a proposal that would make it more difficult to prove companies are liable for the wage law violations of their contractors or franchisees, a top priority for business groups. If adopted, the rule would help fastfood companies and other franchisors that have been sued by workers in recent years for wage-law violations by franchisees. The department in 2017 had already repudiated legal guidance issued by the Obama administration that had expanded the circumstances in which a company could be considered a so-called joint employer under the federal Fair Labor Standards Act (FLSA). Labor Secretary Alexander Acosta in a statement said the proposal would reduce litigation under the FLSA and provide clarity to businesses and courts. The FLSA mandates that workers be paid the min12 | INSURANCE JOURNAL | APRIL 15, 2019

imum wage and overtime, among other requirements. Publication of the rule kicked off a 60-day public comment period. Under the proposal, companies would be considered joint employers only if they hire, fire, and supervise employees, set their pay, and maintain employment records. That would likely exclude many franchisors and companies that hire contract labor. The Obama administration’s guidance included several other factors, such as the nature of the work being performed and whether workers were integral to a company’s business. That definition of joint employment had rankled the business community, which said it threatened the franchise business model and would lead to a spike in lawsuits. Matt Haller, vice president at the International Franchise Association, said the Obama-era rule had led to frivolous lawsuits and changed the way franchisors

interacted with franchisees. “Through this proposal, the Department of Labor has the chance to undo one of the most harmful economic regulations from the past administration,” he said. The Obama-era regulation was not legally binding, but the April 1 proposal would be if it is adopted. That would make it more difficult for future administrations to undo, but also open it up to legal challenges. The proposal comes as the National Labor Relations Board is moving to roll back a separate Obama-era standard for determining joint employment under federal labor law, which governs union organizing and workers’ rights to advocate for better working conditions. Under a rule the NLRB proposed in September, companies would have to possess direct control over working conditions to be considered the joint employer of franchise or contract workers.

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News & Markets Students from Eight Colleges Participate in Virtual Agency Competition By Elizabeth Blosfield

ollege students from eight universities recently formed teams and spent a month running a simulated insurance agency as part of a virtual online competition developed by PriSim War Games, a provider of computerized business simulation games. The competition, hosted by InVEST and the Big “I” Diversity Council, was designed to teach students the basics of entrepreneurship, insurance agency management and business operations. Students entered their agency’s business decisions into PriSim’s agency management platform, taking responsibility for strategy, carrier and customer management, source management, staffing, sales and financial statements, according to a press release issued by Independent Insurance Agents & Brokers of America. “The competition throws the students into the deep end of the pool in running an agency business,” David Semb, partner at PriSim Business War Games and competition mentor, told Insurance Journal. “The experience for the students was intense, but full of opportunities for ah-ha moments.” Professors, insurance agents, a corporate partner and Semb mentored each team in the competition to understand real-world issues such as how to read a profit and loss statement, the impacts of staffing, market segmentation and more, the release stated. “The students have the opportunity to work with an agency mentor who actually manages an agency,” said Steve Danielson, market executive at ONI Risk Partners and mentor to Indiana State University’s team. “This working relationship provides the mentor an opportunity to see first-hand how the students work as a team and understand the leadership dynamics for future consideration when the students graduate.” InVEST and the Big “I” Diversity Council announced Indiana State University, Ohio State University and the University of North Texas as the winning INSURANCEJOURNAL.COM

From left to right: Indiana State students participating in the competition were team leader Christopher Graman, Jak Kramer, Seth Payton, Erika Perry and Evan Rogers. teams, with Indiana State University taking first place. “The competition was a unique hands-on learning opportunity for our insurance and risk management students,” said Rebecca Wray, director of the Networks Financial Institute at Indiana State University. “Each student on the team contributed valuable advice throughout the competition and increased their knowledge of how to own and operate an insurance agency.” Most students who participated are majoring in insurance and plan to pursue a career in the industry once they graduate. “This competition provided wonderful contacts all over the industry and gave me a great idea in what to look for when analyzing a successful agency,” said Evan Rogers, a senior insurance and risk management major at Indiana State University who plans to begin his career in excess and surplus lines when he graduates this May. Seth Payton, a senior insurance and risk management and accounting major at Indiana State University, agreed it was a great learning experience. “I had never considered all of the decisions that go into running an agency and how each one can have a large effect on the bottom line of the business,” he said. “I do plan to pursue a career in insurance.

I am looking to start on the wholesale brokerage side of the industry, so seeing how an independent agency operates was extremely beneficial for me.” Instructors for the competition were tasked with catalyzing the students’ understanding of the insurance industry, particularly agency operations, Semb said. Each team ran the agency in competition with seven other teams for four simulated years. The teams determined which customer segments to target and how to manage and operate their agency. But what set the winners apart? “In an extremely competitive marketplace, three teams maximized their company performance,” Semb said. “Some of the keys to their success were that they had very focused missions and strategies and were very clear about the customer segments they were targeting. In addition, they chose performance metrics that were tightly aligned to their strategies.” Danielson added the Indiana State students in particular spent a lot of time in the beginning to understand the terminology and data. “Having this knowledge was a great foundation for them to make winning strategic decisions early in the competition without having to change their strate-

continued on page 16 APRIL 15, 2019 INSURANCE JOURNAL | 15

News & Markets continued from page 15 gy much during the four-week period,” he explained. In between the competitive rounds, instructors recorded and posted video-lectures on strategy, finance and financial ratios for the students to view and learn from the prior to the next round, while also functioning as coaches and consultants, answering questions and holding 15-30 minute consulting sessions with the

teams, Semb said. In addition, a real-world agency mentor team from a nearby agency was assigned to each team as a resource to participate with the team and to support learning. Payton said the main challenge in the competition was choosing the correct metrics that his team would eventually be graded on. “This took a lot of time and discussion between team members and our agency

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mentor,” he said. “In the end, we worked together and were confident in our decision.” Rogers added that one of the best parts of the competition was deciding which niches to focus on and how to reach set goals. “It was an amazing experience to try and run a simulated agency,” he said. The PriSim War Games technology simulates the workings and dynamics of insurance agencies competing in a marketplace for profit and market share, Semb said. The information used to design the Brokerage Challenge simulation is taken from real-world agencies operating in the marketplace, allowing the students to improve business skills, test new ideas and practice business strategy in a riskfree environment, he added. “Participants are better prepared to apply the lessons learned, and to improve their performance, when they enter the workplace and make real-world business decisions,” he said. Indeed, many students from Indiana State University’s team agreed. “This competition has allowed me to make connections with others in the industry and is providing me an opportunity to learn as a young business professional,” said Erika Perry, a junior insurance and risk management major at Indiana State University. Christopher Graman, a senior insurance and risk management major at Indiana State University who is planning to begin his career as a personal lines/farm underwriter after graduation, added: “It was interesting to see five different ideas come together to form one entrepreneurial spirit.” Because of funding provided by participating Big “I” Diversity Council company sponsors, the winners of the competition will receive a trip to the Big “I” Legislative Conference May 8-10, 2019. “This competition was a huge success across the board and winning was just a bonus,” Payton said. “Outside of my internships, I learned more in the four weeks of this competition than I could have in a classroom or reading a book.”

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Business Moves

National NSM, Embrace Pet Insurance

Program specialist NSM Insurance Group has acquired Embrace Pet Insurance, a Cleveland-based national provider of pet health insurance for dogs and cats. Embrace offers an accident and illness insurance plan that is underwritten by American Modern Insurance Group in all states except Florida, where policies are underwritten by American Southern Home Insurance. Embrace’s current management team will continue to operate the business from its headquarters in Cleveland, under the existing Embrace Pet Insurance brand. Embrace has more than 100 employees. NSM Insurance Group is a subsidiary of White Mountains Insurance Group.

Marsh & McLennan, Jardine Lloyd Thompson

Marsh & McLennan Cos. completed its $5.6 billion acquisition of Jardine Lloyd Thompson Group plc. The deal was first announced in September 2018. 18 | INSURANCE JOURNAL | APRIL 15, 2019

Many of JLT’s top executives have been named to leadership positions at Marsh & McLennan, Marsh, Guy Carpenter and Mercer including former JLT CEO Dominic Burke, who joins Marsh & McLennan as vice chairman and a member of the executive committee. The JLT name will largely be absorbed into Marsh except it will be used for a new unit, Marsh-JLT Specialty, which was formed by combining the specialty teams of both firms. In addition to becoming vice chairman of Marsh & McLennan Cos., Burke is now chairman of Marsh-JLT Specialty. Lucy Clarke, former CEO of JLT Specialty, is now president of Marsh-JLT Specialty.

East Brown & Brown Insurance Agency of Virginia, LRS&C

Brown & Brown Insurance Agency of Virginia Inc., a subsidiary of Brown & Brown Inc., has acquired substantially all of the assets of LRS&C. Following the acquisition, the LRS&C team will join Brown & Brown’s existing Manassas, Va., office and will operate

under the leadership of Brown & Brown Insurance Agency of Virginia President Bill Strachan. Brown & Brown Inc. is an insurance brokerage firm providing risk management to individuals and businesses. LRS&C provides a variety of personal and business insurance products and services to clients in the Mid-Atlantic region of the U.S.

Brown & Brown Metro, Smith Insurance Associates

Brown & Brown Metro LLC, a subsidiary of Brown & Brown Inc., has acquired substantially all of the assets of Smith Insurance Associates Inc. Smith Insurance is a family owned agency with more than 35 years of experience, providing a variety of business insurance products to its customers with a focus on multifamily residential, hospitality and commercial structures. Following the acquisition, the Smith Insurance team will continue to operate from its office in Spring House, Penn., as a branch office of Brown & Brown’s Mt. Laurel, N.J., office, which is led by Brown & Brown Metro Vice President Billy Roberts. Roberts reports to Rich Knudson, INSURANCEJOURNAL.COM

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News & Markets AAIS Expands Cannabis Businessowners Insurance Policy to Colorado

he American Association of Insurance Services has expanded its Cannabis Businessowners Policy (CannaBOP) program with a new filing in Colorado. CannaBOP debuted in California last year and now AAIS is bringing the program to other jurisdictions that have legalized recreational use of marijuana, beginning with the well-established Colorado cannabis industry. AAIS first introduced its cannabis

program in California at the request of the state insurance commissioner. Like most standard businessowners programs, CannaBOP provides a package policy containing both property and liability coverage for qualifying cannabis dispensaries, storage facilities, distributors, processors, manufacturers, and private cannabis testing facilities and laboratories. The CannaBOP program comes includes rules and loss costs.

During development, AAIS partnered with Merlinos & Associates Inc., the actuarial consulting group, to help analyze market exposures and develop rating guidelines specific to the cannabis industry. AAIS is also working on several CannaBOP enhancements, including the addition of equipment breakdown, product recall, open use, special event, errors and omissions, motor truck cargo, warehouse liability and commercial auto coverage endorsements. The Colorado CannaBOP program has a proposed effective date of Aug. 1. AAIS is a national nonprofit advisory organization governed by its member insurance carriers and serving the property/casualty insurance industry.

FEMA Accused of Wrongly Releasing Data of California Wildfire Victims

he Federal Emergency Management Agency wrongly released to a contractor the personal information of 2.3 million survivors of devastating 2017 hurricanes and wildfires, potentially exposing the victims to identity fraud and theft, a government watchdog reported. The Homeland Security Department’s Office of Inspector General found the breach occurred when FEMA was working with a contractor that helps provide temporary housing to those affected by disasters. FEMA is one of Homeland Security’s many agencies; the sprawling 240,000-person department also includes immigration enforcement, and the U.S. Secret Service. FEMA officials said that since the discovery of the issue, the agency was no longer sharing unnecessary data with the contractor and has conducted a detailed review of the contractor’s information system and has found no indication to suggest data has been compromised. The agency said in a statement it is working with the contractor to remove the data from its system and has instructed staff to complete additional privacy training. Some information, like names, last W2 | INSURANCE JOURNAL | WEST APRIL 15, 2019

four digits of a Social Security number and how many people live in a household are required to confirm eligibility and locate housing for victims. But FEMA also provided the contractor with bank names electronic funds transfer numbers and bank transit numbers that were not required by the contractor. The 2.3 million people lived through California wildfires and Hurricanes Harvey, Irma and Maria.

The watchdog said that FEMA violated both federal privacy laws and also Homeland Security policy by giving the extra data to the contractor, whose name was redacted in the report made public. The contractor also knew that FEMA was providing too much personal data but didn’t inform the disaster relief agency. Copyright 2019 Associated Press. All rights reserved.

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News & Markets Cal/OSHA Cites Contractor After Workers Hospitalized for Valley Fever

al/OSHA has issued serious health and safety citations to Underground Construction Co. Inc. of Benicia, Calif., after two of its employees contracted Valley Fever. The workers were reportedly exposed to the fungal disease while using hand tools to dig trenches in Kings, Fresno and Merced counties — areas where the soil is known to contain harmful spores that cause the infection. “When soil is disturbed by activities such as digging, driving, or high winds, Valley Fever spores can become airborne and potentially be inhaled,” Cal/OSHA Chief Juliann Sum said in a statement. “Without the proper training, protection and mitigation procedures, workers are likely to be exposed and get sick.” Cal/OSHA was notified in September 2018 that the employees were hospitalized after being diagnosed with Valley Fever, also known as Coccidioidomycosis. Symptoms of the disease are similar to the flu and include fatigue, shortness of

breath and fever. Severe cases can cause serious lung problems. The workers were tasked with digging trenches up to 5½ feet deep to allow access to gas pipelines for maintenance. Dust was not controlled, and the workers did not wear any respiratory protection, Cal/OSHA found. Exposure to the disease could have occurred in any one of the three counties where the fungal spores are known to be endemic. Cal/OSHA’s investigation found that Underground Construction did not evaluate the hazard of performing digging work in areas known to contain the coccidioides fungal spores. The employer did not suppress or control harmful dusts and failed to provide employees with respiratory protection.

Cal/OSHA issued three citations to the employer with $27,000 in proposed penalties. Since 2017, Cal/OSHA has cited 12 businesses for work-related Valley Fever.

Synergy Professional Associates Expands Lawyers PL Program to 3 New States

ynergy Professional Associates, in partnership with Tokio Marine HCC – Professional Lines Group, has expanded its lawyers professional liability programs focusing on small law firms into Colorado, Florida and New Jersey. The new facilities target small law firms from one to 35 attorneys. The

W4 | INSURANCE JOURNAL | WEST APRIL 15, 2019

programs are written by U.S. Specialty Insurance Co., an admitted carrier, in Colorado, Florida and New Jersey. The program is also available in Arizona and Texas. Limits available up to $5 million/$5 million with deductibles starting at $1,000 per claim. The policy features coverage for disciplinary proceedings, as well as subpoena assistance, public relations reimbursement, and network security and privacy liability sub-limits. Synergy writes lawyers professional liability on both a standard and surplus lines basis. Synergy Professional Associates Inc. is a program manager, managing general agent and surplus lines broker specializing

in professional liability working with producers throughout the United States. Synergy operates on an open broker basis with duly appointed producers. Tokio Marine HCC is the marketing name used to describe the affiliated companies under the common ownership of HCC Insurance Holdings Inc., a Delawareincorporated insurance holding company. Headquartered in Houston, Texas, Tokio Marine HCC is a specialty insurance group with offices in the United States, the United Kingdom and Continental Europe. Tokio Marine HCC is a member of the Tokio Marine Group. The Professional Lines Group, a member of Tokio Marine HCC, provides protection against claims arising from professional negligence, which can lead to financial losses, expensive litigation and staggering jury awards. The group offers miscellaneous professional liability for all kinds of professionals, businesses and consultants. INSURANCEJOURNAL.COM

CHANGE IS HARD. CHANGE IS GOOD. The road to change is often long and not always easy to follow. But we’ve started down that road and have a clear vision of where we’re going. We hope you notice the big changes happening at State Fund and, better yet, let us show you where we’re headed. It’s a good thing.

News & Markets Nationwide Expands Small Business Insurance Direct Platform

By Mark Holmer

ationwide said it has expanded 24-hour access to more types of small business for its Commercial Digital Direct online commercial insurance platform. Now, 30 different business types can access the platform. Businessowners can typically get a quote in less than 10 minutes, according to Nationwide. The types of office, service and retail businesses that can now use the platform include business consultants, legal practices, beauty/barber salons, photographers, coffee shops and clothing stores. Right now, Commercial Digital Direct is

available to business owners in Illinois, Arkansas, Connecticut and Indiana, and Nationwide said it expects to add additional states through the 2019. Nationwide said that many of its business owner-clients expect low-cost customization when purchasing commercial insurance direct versus tailored coverage and services while working with a trusted agent. Mark Berven, president and chief operating officer of Nationwide Property & Casualty, explained in a recent Carrier Management article that Nationwide

tries to anticipate small business needs through both avenues, giving them options for direct access via digital platform or the ability to work with independent agents. “We are investing in technology that allows a customer to research their insurance needs and purchase direct if they so choose,” Berven said. “But we also have trusted advisers and agency partners across the country who can provide guidance and advice if the customer wants that.” Berven also noted that Nationwide now serves more than 1 million small businesses, which it defines as those with fewer than 50 employees, less than $20 million in total insured value and less than $20 million in sales. These clients also tend to have less than $2 million in payroll and under 20 vehicles, he said. In terms of expanding the Commercial Digital Direct option, Nationwide touts the platform as having a number of speedy and self-service features, which Nationwide said it found in a recent study were important to both small and micro business owners. Those options include completion of an online commercial policy purchase within minutes using pre-fill data and automated underwriting; easy bill-payment options that integrate into business software; policy information and document lookup and certificate of insurance request.

'We are investing in technology that allows a customer to research their insurance needs and purchase direct...'

Oregon Confirms Data of 1.6M Residents Exposed in Breach

he Oregon Department of Human Services says that a data breach may have exposed the personal information of the 1.6 million residents the department serves. The department said last month it isn’t sure exactly how many people had their information exposed after nearly 2 million employee emails were made vulnerable to unauthorized persons. Those W6 | INSURANCE JOURNAL | WEST APRIL 15, 2019

emails could have contained sensitive client information, including full names and Social Security numbers. The breach occurred in January after nine employees opened a phishing link that compromised their email boxes.

DHS says it hired an outside investigator to uncover how many records were impacted and how the information was used. Individuals whose information was exposed will be notified. DHS manages a number of welfare agencies in the state. Copyright 2019 Associated Press. All rights reserved. INSURANCEJOURNAL.COM

Protect Yourself Against the #1 Natural Disaster in the U.S. Aimee Bernadicou, M.J. Hall Broker

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News & Markets

Americans Still Donâ&#x20AC;&#x2122;t Trust Autonomous Vehicles, Reuters Poll Shows By Paul Lienert and Maria Caspani

alf of U.S. adults think automated vehicles are more dangerous than traditional vehicles operated by people, while nearly two-thirds said they would not buy a fully autonomous vehicle, according to a new Reuters/Ipsos opinion poll. In the same poll, about 63 percent of those who responded said they would not W8 | INSURANCE JOURNAL | WEST APRIL 15, 2019

pay more to have a self-driving feature on their vehicle, and 41 percent of the rest said they would not pay more than $2,000. The poll results outline the challenges that face car and truck makers, delivery companies, technology companies and ride services operators such as Uber Technologies Inc. and Lyft Inc. All are plowing capital into developing self-driving vehicles and related hardware.

Developers of the technology are making progress, but polls indicate the industryâ&#x20AC;&#x2122;s efforts to build public trust and commercial demand lag behind. The findings are similar to those in a 2018 Reuters/Ipsos poll. They are consistent with results in surveys by Pew Research Center, the American Automobile Association and others. In March 2018, after the 2018 Reuters/Ipsos

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News & Markets continued from page W8 poll, an Uber vehicle operating in self-driving mode struck and killed a pedestrian in Arizona. Relatively few U.S. residents have seen or ridden in a self-driving vehicle, and experts said suspicion of unknown technology can give way to acceptance once it

becomes more familiar. “People are comfortable with things they know,” said investor Chris Thomas, co-founder of Fontinalis Partners and Detroit Mobility Lab. “When everybody understands the game-changing attributes of automated vehicles, how they can give you back all that time to read or work or

sleep, they will start to ask about the value of that recaptured time.” For companies investing in autonomous vehicles, public mistrust and the unwillingness to pay for self-driving systems are an increasingly urgent problem. But widespread deployment of fully self-driving vehicles is some years away, industry officials and experts said. Alphabet Inc.’s Waymo unit has deployed a small fleet of self-driving vans to provide rides for customers in Arizona, and other companies have self-driving vehicles on public streets in test fleets.

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“At the moment, those responses are largely based on zero knowledge and zero experience, so it’s mostly a visceral reaction to something they read about, like the (2018) Uber crash in Arizona,” said Dan Sperling, director of the Institute of Transportation Studies at the University of California, Davis, and the author of several books on future transportation. Autonomous vehicle companies have been trying for more than two years to get the U.S. Congress to enact legislation that would give a regulatory green light to self-driving cars. So far, opposition has bottled up the industry friendly bills. The National Highway Traffic SafetyAdministration meanwhile has yet to act on proposals to exempt autonomous vehicles from conventional vehicle safety standards. Two-thirds of survey respondents said self-driving cars should be held to higher government safety standards than traditional vehicles driven by humans. “Somebody needs to be held accountable,” said survey respondent Carla Ross, 62, a teacher from Norfolk, Virginia. “Those cars shouldn’t even go on the road until they can guarantee a certain percentage of safety.” The poll’s findings that most consumers would not pay for self-driving vehicle

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News & Markets continued from page W10 capability underscores concerns within the vehicle industry about the high costs of the technology, such as lidar sensors and high-powered onboard computers. Lidar is similar to radar but uses laser light instead of radio waves. “I’m concerned that even when we get the technology absolutely right, we will not have the business,” said investor and corporate adviser Evangelos Simoudis, managing director of Synapse Partners, which invests in autonomous vehicle technology startups. Self-driving expert Bryant Walker Smith, a law professor at the University of South Carolina, said a number of companies “don’t actually want to sell people these cars — they want to rent us these services. They want us to pay every month, every trip.” For many Americans, “$2,000 is a lot of money,” he said. “If you’d asked people if they’d pay $15,000 for an advanced safety

package or even $10,000 for a luxury trim package, the answer in a lot of cases is going to be no.” The challenges of turning over critical safety systems to robots are now a central issue in the debate over how regulators should respond to a pair of deadly crashes involving Boeing 737 MAX airliners. Investigators trying to determine the causes of crashes in Indonesia and Ethiopia are focusing on evidence that an automated flight control system on the jets put the planes into nose dives, and pilots were unable to override the systems. “If there’s one (airplane) crash a year, it creates huge backlash — and airplanes are

far, far safer than cars,” said Sperling. The Reuters/Ipsos poll surveyed 2,222 people online in English across the United States and it has a credibility interval, a measure of precision, of 2 percent. (Reporting by Lienert in Detroit and Caspani in New York) Copyright 2019 Reuters. All rights reserved.

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regional president of Brown & Brown. Brown & Brown is an insurance brokerage firm providing risk management to individuals and businesses.

Alera Group, Broad Reach Benefits

Alera Group, a national insurance firm, has acquired Broad Reach Benefits LLC, effective February 1, 2019. Broad Reach Benefits, headquartered in Madison, N.J., offers a range of employee benefits services and assists its clients by overseeing the employee benefits process. The firm focuses on bringing actuarial analysis, reporting metrics throughout the year and technology to middle market and small employers. Following the acquisition, all Broad Reach Benefits employees will continue operating out of the firm’s existing locations in New Jersey and Tennessee under the name Broad Reach Benefits, an Alera Group Agency LLC. Alera Group was formed in early 2017 and is based in Deerfield, Ill.

South Central Corvus Insurance

Boston-based Corvus Insurance, an artificial intelligence (AI)-driven insurtech company offering smart commercial insurance policies, has opened an office in Dallas. The Dallas office is the company’s first in the southern U.S. The announcement comes three months after Corvus established its first west coast office, which was announced in January. The company now has locations in New York City, Los Angeles and Dallas, in addition to its headquarters in Boston, Massachusetts. Corvus Insurance is an insurtech managing general agency (MGA) offering smart commercial insurance policies paired with easy-to-use tools to reduce risk, prevent claims and improve the commercial insurance experience. Smart cyber insurance policies are distributed by Corvus in partnership with Hudson Insurance Group. The company’s smart cargo insurance INSURANCEJOURNAL.COM

policies are distributed in partnership with Argo Insurance Group. Policies are distributed through major insurance brokerage firms across the United States.

Midwest Seeman Holtz Property & Casualty, Prey Insurance Services

Florida-based Seeman Holtz Property & Casualty announced the asset acquisition of Prey Insurance Services LLC, headquartered in Shawano, Wisconsin. Led by Mike Prey and his team, Prey Insurance Services has been serving the state of Wisconsin for more than 20 years. Prey Insurance offers personal and commercial insurance, from home and life insurance to auto and theft. Seeman Holtz Property & Casualty said the acquisition strengthens its foothold in the Midwest under its Vincent Urban, Walker division. Seeman Holtz Property & Casualty continues to target high-quality independent agencies for geographic expansion and continued growth throughout the U.S.

Southeast Hub International, M.B.I. Group

Hub International Limited (Hub), a global insurance brokerage, has acquired the assets of M.B.I. Group, LLC. Terms of the transaction were not disclosed. M.B.I. Group is an independent insurance firm based in Flowood, Mississippi, offering personal insurance products, including real estate, auto, umbrella and life insurance products. Michael Bishop, president and sole owner of M.B.I. Group, will join Hub Gulf South. Bishop will report to Shaun Norris, president of Hub Gulf South. Headquartered in Chicago, Illinois, Hub International Limited is a leading full-service global insurance broker providing property and casualty, life and health, employee benefits, investment and risk management products and services.

West Marsh & McLennan, Lovitt & Touché

Marsh & McLennan Agency LLC has acquired Phoenix, Ariz.-based Lovitt & Touché. Charlie Touché, Lovitt & Touché CEO since 1998, will lead MMA’s operations in Arizona and the firm will operate as Lovitt & Touché, a Marsh & McLennan Agency LLC company. Following the transaction, Lovitt & Touché will add 181 colleagues to MMA from its Phoenix, Tucson and Las Vegas, Nevada, offices. Lovitt & Touché provides commercial property and casualty, personal lines and employee health and benefits solutions. Marsh & McLennan Agency LLC is a subsidiary of Marsh established in 2008 to serve as a platform for the middle market. MMA offers commercial property, casualty, personal lines and employee benefits.

Tokio Marine, NAS

Tokio Marine HCC has acquired Encino, Calif.-based NAS Insurance Services LLC. The acquisition of NAS represents the continuance of a partnership between NAS and the Tokio Marine Group. Tokio Marine HCC and its sister company, Tokio Marine Kiln, have worked with NAS since 1975, and Tokio Marine Kiln had owned 49 percent of NAS since 2014. Tokio Marine HCC will combine NAS with its existing professional lines group. Richard Robin, who serves as CEO of NAS, will become president of Tokio Marine HCC’s professional lines group. He reports to Thomas Harmeyer, who will continue to serve the professional lines group as executive chairman. NAS is a Lloyd’s coverholder. The business produced reported gross written premium of $176 million in 2018. NAS employs roughly 180 people and has offices in California, New York, Chicago and Atlanta. Tokio Marine HCC is the marketing name to describe the companies under the common ownership of HCC Insurance Holdings, Inc., a Delaware-incorporated insurance holding company. APRIL 15, 2019 INSURANCE JOURNAL | 19

Figures

$700,000

The amount in damage a federal jury awarded a Hawaii man who sued a hospital, saying staff injected him against his will with anti-psychotic drugs that left him incapacitated for months. The jury unanimously concluded that Wilcox Memorial Hospital emergency room staff intentionally or recklessly inflicted emotional distress on Cameron Raymond of Kauai while he was a patient at the hospital in 2013.

$2 Million

The amount a Baltimore, Md., jury awarded to a man who has permanent brain damage from being exposed to lead paint as a child. Savon Johnson, 24, lived at a Baltimore residence operated by City Homes in 1996. His lawyer says while living there, Johnson’s blood lead level spiked to 15 micrograms per deciliter, an amount considered a concern for lead poisoning.

Declarations Disaster Insurance

“Allowing the state to invest in an insurance policy will provide predictability and limit taxpayers’ risk of increasing disaster costs.” —California state Sen. Bill Dodd, D-Napa, said legislation that he introduced could lead the state to consider buying insurance in the private market to cover rapidly increasing costs of fighting wildfires due to climate change. Senate Bill 290, the California Disaster Insurance Act, cleared a key committee vote in late March.

Cosmetic Surgery Clinics

“What we found is that many of these clinics, someone will die at one of their clinics, and the next day they’ll open back up and take new patients as if nothing happened.” —Florida State Senator Anitere Flores, who is co-sponsoring legislation that would require stricter regulation of cosmetic surgery clinics. The bill would require facilities and doctors to demonstrate financial responsibility to pay out claims when deemed at fault for serious injury, among other regulations. Current Florida law doesn’t require cosmetic surgery clinics to have medical liability insurance.

Workplace Hazards

“Employees have the right to report workplace safety or health hazards without fear of retaliation from their employer.” —Philadelphia Regional Administrator Richard Mendelson for OSHA, announcing that the U.S. District Court for the Eastern District of Pennsylvania ordered Blown Away Dry Bar and Salon to pay a $40,000 settlement to a fired hairstylist. OSHA investigators determined the defendants retaliated against the employee when her husband reported workplace safety and health hazards.

$755,000

The amount-plus that 74-yearold Odis Aubrey King of Edmond, Oklahoma, admitted to embezzling from his employer, Oklahoma City-based Den-Con Tool Co. King admitted in a plea agreement that he wrote more than 200 company checks to himself from 2009 to 2015, forging the owner’s signature. He also admitted to filing false tax returns by failing to report the money as income. In addition to paying restitution and more than $115,000 in back taxes, King faces up to 13 years in prison and $350,000 in fines at sentencing.

Holding Them Responsible

“We have been working with state and federal partners to hold ITC responsible for the damages.” —Harris County, Texas, Chief Executive Lina Hidalgo said regarding a suit filed jointly by the county and the state of Texas against Mitsui & Co’s Intercontinental Terminals Co. (ITC) following an explosion and fire at the Houston-area petrochemical plant run by company. The disaster sent tons of noxious chemicals into the air and local waterways; schools were closed and visits to area hospitals and clinics spiked.

$112 MILLION

The amount Duke University is expected to pay to settle a whistleblower lawsuit alleging a Duke research technician faked data to land millions of dollars in federal grants. Federal prosecutors said the Durham, N.C.-based private university submitted dozens of research grants that contained falsified or fabricated information to receive funds from the National Institutes of Health, the Environmental Protection Agency and other federal agencies. Former Duke employee and whistleblower Joseph Thomas first filed the suit in 2015.

Michigan Auto Insurance Fee

“Michiganders deserve to know why they are being forced to shell out hundreds of dollars in additional fees for car insurance.” —Michigan Gov. Gretchen Whitmer ordered an audit of the Michigan Catastrophic Claims Association, a state-created entity that reimburses insurers for personal injury protection benefits, after the MCCA announced the annual per vehicle fee motorists pay to cover those costs would rise to $220 on July 1. The annual assessment currently is $192.

People National

American International Group has named Carla Ferrara as head of communications for AIG’s Investments organization. Ferrara will be based in New York and report to Elaine Rocha, chief operating officer of AIG Investments. Ferrara brings 25 years of experience in the global insurance and financial services industry to this role. She joined AIG in 2018, serving as director of Internal Communications for AIG’s Finance, Internal Audit, Enterprise Risk Management and Global Legal Compliance & Regulatory functions. Prior to her tenure with AIG, Ferrara served as director of Data Communications for XL Catlin. Prior to that, she was vice president of Corporate Communications & Branding for QBE North America. She also previously worked for Chubb North America. Morgan Shrubb has joined AXA XL Insurance as underwriting manager for

War, Terrorism & Political Violence insurance. Shrubb joins AXA XL from Ironshore International, where she served as a production specialist charged with growing the company’s war, terrorism and political violence book of business on the West Coast. She began her underwriting career at Hiscox USA. In her new role at AXA XL, Shrubb will be based in Atlanta and will be responsible for the management, marketing and underwriting of specialized War, Terrorism and Political Violence insurance including standalone U.S. terrorism policies, active assailant insurance, and chemical, biological, radiological and nuclear (CBRN) coverage.

East

Beazley has expanded its healthcare management liability team with the appointment of Jack Sheehan as an underwriter based in Boston, Mass. Sheehan brings 15 years of financial Jack Sheehan lines insurance experience in both broking and underwriting to this role. He previously held the positions of vice pres22 | INSURANCE JOURNAL | APRIL 15, 2019

ident of management and professional liability at Marsh and professional liability underwriter at The Hartford. Beazley plc is the parent company of specialist insurance businesses with operations in Europe, the U.S., Canada, Latin America and Asia. Portland, Mainebased workers’ compensation specialist The MEMIC Group promoted Ben Delcourt to underBen Delcourt writing manager and Shae-Li Fendler to underwriting analyst manager. Delcourt joined MEMIC in 2012 as an account analyst and was promoted to associate underwriter in 2014, underwriter Shae-Li Fendler in 2015 and underwriting supervisor in 2016. Fendler joined MEMIC in 2013 as an account analyst and was promoted to underwriting analyst in 2014, team leader in 2015 and underwriting analyst supervisor in 2016.

South Central

Adam Glenn has joined Alliant Insurance Services in Dallas as vice president. In this role, Glenn will provide insurance products and services to clients across the Southwest as Alliant continues to expand in the region. Prior to joining Alliant, Glenn was a commercial insurance agent with one of Texas’ largest independent insurance agencies. Houston-based benefits consultant Dan Cotuno also has joined Alliant Insurance Services as vice president within the company’s Employee Benefits Group. Cotuno will provide integrated, data-driven benefits to clients as Alliant continues to grow its Texas benefits team. Prior to joining Alliant, Cotuno was vice president within the Houston office of a national insurance brokerage and employee benefits consultant. Baton, Rouge, Louisiana-based workers'

compensation insurer, LWCC, welcomed back David White as vice president and chief internal auditor. White previously held the position of vice president of internal audit for LWCC from 2007–2012. He brings more than 40 years David White of audit experience in the insurance, reinsurance, telecommunications and retail industries to his new role. Most recently, White served as vice president of internal audit for Hannover Life Reassurance Co. of America. Prior to this role, he served as second vice president and audit unit manager with Gen Re. USG Insurance Services Inc., a national wholesaler and managing general agent (MGA), promoted Jodi Berger to regional manager, Jodi Berger based in Arlington, Texas. Berger joined USG in 2002 as a senior underwriter and was promoted to branch manager of the Arlington branch in 2007. In her new role as regional manager, Berger will oversee USG Arlington and USG Houston, work to expand USG’s Texas footprint and assist in corporate team development projects.

Midwest

Cincinnati, Ohio-based Great

American Insurance Group has promoted Anthony (Tony) J. Mercurio and David L. Thompson Jr.

to executive vice presidents of its property/casualty group. Mercurio will continue to serve as president and CEO of National Interstate, a position he has held since 2016. Since joining National

Anthony Mercurio

David Thompson

INSURANCEJOURNAL.COM

Interstate in 1997, he has held a variety of leadership positions within the organization. Thompson has served as senior vice president of Great American’s P&C Group since 2016. He joined the company in 2006. Thompson recently served as senior reporting officer with responsibility for six property and casualty businesses, oversight of the P&C Group’s Predictive Analytics function and the Dempsey and Siders Agency. Appleton, Wisconsin-based

Integrity Insurance added Matt Sharp

to its Integrity Leadership Team (ILT) as AVP and Matt Sharp senior finance officer. Sharp is responsible for the strategic financial oversight and reporting for Integrity. He succeeds Brent Hammer, who has accepted the position of AVP and innovation officer for Grange Enterprise. In a separate move, Integrity Insurance has also added Becky Monfre as business development manager. In this new position for Integrity, Monfre is responsible for driving growth and visibility, in addition to managing a territory in Wisconsin. Monfre brings nearly 14 years of agency and insurance carrier experience. She also serves on the Integrity management team. Wichita, Kansasbased insurance brokerage, IMA

Financial Group Inc., promoted Luke Proctor to president of IMA Companies,

Luke Proctor

a newly created position to oversee all IMA Financial Group subsidiaries. Proctor will report to IMA Financial Group Chairman and CEO Robert Cohen. IMA Wichita President Kyle Orndorff will continue to lead his local team of nearly 200 associates. The companies under Proctor’s management include IMA Inc., a retail insurance broker; IMA Select, a small-business and personal insurance broker; INSURANCEJOURNAL.COM

Towerstone Inc., a wholesale insurance broker; Eydent Insurance Services, a managing general underwriter specializing in niche insurance products; CORnerstone Risk Solutions, an alternative risk services company; and IMA Wealth, an SEC- registered investment advisory firm. IMA Chief Financial Officer Mike Benson has been hired to fill Proctor’s former position. Benson is based in Denver and previously held positions with KSE Sports & Entertainment in Denver. He was most recently chief operating officer and chief financial officer for GROUP360 in St. Louis, Missouri.

Southeast

Charlotte, N.C.-based AmWINS Group Inc., a global distributor of specialty insurance products and services, has formed a new railroad practice group. Led by Darron Johnston, the practice focuses on property coverage and is based out of AmWINS Brokerage of Georgia in Atlanta. AmWINS has specialized in the railroad space for nearly 15 years, with nearly 500 accounts bound annually across all lines. Johnston began his career in the facultative reinsurance division of Aon Benfield, where he specialized in technical risks. He joined THBi, an AmWINS Group company, in 2013. Johnston moved to AmWINS Brokerage of Georgia in 2015. Atlanta, Ga.-headquartered

Breckenridge Insurance Group has appointed David A. Jordan as president and CEO of the wholesale insurance brokerage, programs and financial services company. Jordan succeeds founder and former CEO Tracey Carragher. Jordan has nearly 40 years of experience in the industry and previously held senior positions with W. R. Berkley Corporation, AIG and Atlantic Mutual Companies. Before joining David Jordan Breckenridge, he was with Vela Insurance of W.R. Berkley Corporation for a decade as president and CEO.

West

Willis Towers Watson has made three appointments for its Western region in North America. Linde Hotchkiss will lead its regional large account strategy for the West, where she will oversee its global client advocate community. Nicole Johnson was named corporate risk and broking leader for Phoenix, Ariz. She was previously vice president at Lovett and Touché. Willis Towers Watson has also created a new tech center for the West region, which will be led by George Haitsch, a global client advocate. Roseville, Calif.-based ISU Insurance Agency Network has named Jorge Martinez vice president of carrier relations. Martinez will report to Dan McCarthy, ISU’s chief operating officer. He has 10 years of experience in the industry, including holding positions at Prospect General. ISU Insurance Services is a privately owned independent insurance firm and is part of the ISU network. San Diego, Calif.-based Cavignac & Associates has named Bree Schuman as an account manager in the company’s commercial department. Among other duties, Schuman is responsible for endorsement processing, billing and cancellation issues, reconciling audits and contract review. Schuman has 10 years of experience in the insurance industry. She was previously with Marsh & McLennan Insurance Agency LLC, where she last held the position of client managBree Schuman er. Risk Strategies has appointed William Holden to oversee its Western region-

al operations, which include offices in California and Oregon. Holden will be based in Burlingame, Calif. In his prior roles, Holden developed and trained sales teams to grow in specialized lines of business. He started as an underwriter in the executive risk department of Chubb Group. APRIL 15, 2019 INSURANCE JOURNAL | 23

Closer Look: Young Agents ‘Young Agents Are People, Too' Journeying beyond their jobs to uncover their personalities Insurance Journal set out to reveal the personalities of some of today’s young agents by asking them probing questions about important matters. For example, what would they be if they weren’t an insurance agent? How do people react when they reveal they are an insurance agent? What is the stupidest thing they have said or done in their job? Perhaps, most important, if they could choose any color to paint their office, what color would they choose? And more.

Tanner Eldredge Utah’s Eldredge Embraces Dad’s Legacy in Construction in P/C Career

A broker for The Buckner Co. in Salt Lake City, Utah, has been in the business for five years, yet he has become convinced this property/ casualty agency is for him. Tanner Eldredge became interested in insurance as a missionary for the Church of Jesus Christ of Latter-day Saints after talking to his mission leader, who owned an agency specializing in employee benefits. “That got me interested in insurance in general,” he said. After returning home, he researched careers in the life, benefits and property/ casualty industries. “I realized that commercial P/C was the life for me,” he said. Eldredge intended to follow in his father’s footsteps as a contractor. However, when his father died when Eldredge was 15, he began looking for other career paths. “I definitely would have worked for him had he not passed away,” he said. He hasn’t given up his passion for construction. He specializes in dealing with contractors. “Construction’s my bread and butter,” he said. 24 | INSURANCE JOURNAL | APRIL 15, 2019

It was a construction company owner who gave him one of his funniest moments in the business. “I was asked, ‘If I punch someone in the face, will I be covered?’” he said. “He was half kidding, but half serious.” He has experienced extremes in reactions when people find out he is an insurance agent. “The best reaction is people telling me how great the industry is,” he said. “The worst reaction is people telling me I’m a fraud.” Eldredge understands some people hate insurance because they don’t understand it. “They think that I handle the claims,” he said. “It’s mainly people that have had a bad claims experience.” The stupidest thing he’s done since

'I realized that commercial P/C was the life for me.' becoming an agent? Eldredge said last year, he accidentally bound coverage for a policy on the wrong effective dates. “I didn’t double-check the policy,” he said. Eldredge split the cost of the settlement with his agency. “I just did it because it was the right thing to do,” he said.

– D. Jergler INSURANCEJOURNAL.COM

Cassie Scism

International Travel, Developing Strategies Among Her Favorite Things

If she weren’t an insurance agent, Cassie Scism might be involved in strategic planning or work in a business development role. “I love developing strategies and finding new ways to help things succeed!” she says. The young agent finds people often are uncertain how to react when they learn what she does for a living. While some do ask questions about her work and how she finds creative ways to help clients with their insurance needs, others simply change the subject. “It’s not a typical job for people my age, and I don’t think I fit the stereotypes,” says Scism, an account executive at Thrive Insurance in Oklahoma City. Scism makes a point to keep her professional and personal lives separate. “In order to be most productive, I have to have down time and be able to turn it ‘off.’” Reading, watching television and playing with her dog are some things she likes to do outside of work, but when the opportunity arises, international travel is what Scism really loves. “I also volunteer with international students at a local university, a cultural non-profit, and with college students at my church,” Scism wrote in an email to Insurance Journal. INSURANCEJOURNAL.COM

'I love developing strategies and finding new ways to help things succeed!'

Recalling a situation at work that she wishes might have gone differently, Scism said while researching new markets for one of her agency’s target segments, she “mystery shopped a competitor. It was only after hanging up the phone that I realized I called from my work line, rather than my personal phone!” Like many agents, Scism would like to see improvements in her agency’s computer-based management system. “Management systems should have a cleaner interface, more metrics and more

flexibility. I’ve used several management systems, and I feel like they all require a lot of work to get a simple answer.” If she could paint her office any color? “Probably a light gray and/or soft blue. The colors feel calming and fresh!”

– S. Jones APRIL 15, 2019 INSURANCE JOURNAL | 25

Closer Look: Young Agents Tim Davis Missouri’s Davis Learns Alligator Lesson, Laments Agency Tech Dinosaurs

Once, at the beginning of his career, Tim Davis was asked to find workers’ compensation insurance coverage for an alligator farm in Florida. It didn’t go well. Davis, who currently serves as director of Operations for Powers Insurance & Risk Management and its sister company, Valley Insurance Agency Alliance in St. Louis, says as a new producer, he often made the mistake of telling people he could help when it might have been better “to just steer them in a different direction to the right person that could actually help them.” That experience was with the first agency he worked for. It was an online agency, “so we got work comp leads from all over the country and definitely saw some of the most unique, unusual accounts that I have ever seen in my career.” At the opposite end of the spectrum was the call he got after he was fully entrenched in his career. It was a $20 million revenue company with half a million dollars a year in premium asking if he’d be interested in helping them. The catch was they were calling a day before their renewal effective date. That has since become one of his largest accounts. “I offered to help them and fortunately was able to land the account,” Davis said. Davis has been with Powers for about a year and a half. The agency was a traditional brick and mortar agency. Now, it is into a “digital transformation,” using social media and digital marketing. “That’s constantly evolving,” he says. So is his job. In March, Powers created an emerging risks division focusing on “cyber, technology, cannabis and renewable energy verticals,” using social media, a website, Facebook and press releases in 26 | INSURANCE JOURNAL | APRIL 15, 2019

the marketing. “We’re now less than two weeks in and our producers are already limiting who they’re working with ... because of the volume that’s come into the agency within the past 15 days,” Davis said. Davis is frustrated with the technology options available to agencies today. He would like “a single source solution so that when you get that first lead that goes into your system and it stays in your system for everything you do. Most agencies currently are using, gosh, anywhere between five to 10 different products to try and help do everything you need to do as an agency for sales and customer service.” Davis says he’s baffled there’s not an agency system to provide for all of a modern agency's needs. “I’ll take the chal-

lenge, if somebody thinks they can stack up,” he said. A St. Louis Cardinals baseball fan, Davis says if he could repaint his office any color, he’d choose Cardinals colors. “I would probably go with something like that just to feel more homey when I’m here.”

– S. Jones

'I offered to help them and fortunately was able to land the account.'

INSURANCEJOURNAL.COM

Tim Dunleavy Internship Changed ABD’s Dunleavy’s Mind; Now He Changes Minds of Peers

Tim Dunleavy, vice president of ABD in San Mateo, Calif., finds he has a lot of explaining to do to his peers about his choice of a career in insurance. “The typical reaction from my peer group is a dull one, with the assumption that I go door-to-door trying to sell my friends a life insurance policy they don’t want/need,” the 29-year-old said. “Once I explain that we work to protect the executives of some of the coolest technology companies in the country, their initial preconception quickly changes.” Dunleavy’s been changing young minds since he got into the business at age 21

Nicholas Lewis

Pennsylvania’s Lewis Pursues Internship to Ownership Dream

After receiving an internship at an insurance agency in college at the encouragement of a family friend, Nicholas Lewis

'It has been a lot of work so far, but I think it will definitely be worth it.' INSURANCEJOURNAL.COM

through an internship in New York with Liberty International Underwriters in the summer of 2011. It was an experience that sold him on insurance. Prior to joining ABD, he was a middle-market technology underwriter for The Hartford. Among ABD’s specialties are technology and life sciences companies. He estimates roughly a quarter of the customers he’s initially dealing with are junior financial executives in their early 20s and 30s with whom he’s able to relate. “Our role is to get slower moving, oldschool insurance companies up to speed and comfortable with our clients, who are looking five years out,” he said. Had he not gone into a career in insurance? “I would have worked to become a

district attorney like my dad,” he replied. “Or I would have pursued a career coaching basketball.” Besides explaining insurance to peers and catering to tech clients, he spends a lot of time on social media. “I am on LinkedIn constantly monitoring not only prospective clients, but our own clients as well,” he said. “It is a great way to keep up with everything happening with the hypergrowth companies we support.” – D. Jergler

ended up not only pursuing a career with the same agency after he graduated, but now has a goal of owning his own agency. Lewis is currently an account executive at Bowman’s Insurance Group, an independent insurance agency based in Palmyra, Penn. During his six-year tenure at Bowman’s, Lewis says customer service has been a priority, as he wants to continue building his client base and providing valuable coverage. In fact, one of his favorite moments speaking with a future client is when they couldn’t wait to have him look at their insurance. “I ended up saving them some money while offering them better coverage,” he said. Lewis said the funniest client question he’s ever been asked is: “Do you think you could insure any of my body parts because I hear about these celebrities doing that, so maybe I should think about doing that too?” Joking aside, Lewis believes insurance

offers opportunities for young agents as the workforce transitions. “Most of the workforce is older so they are going to be looking for the young guns to come in and take over for them,” he said. Indeed, one change Lewis is spearheading at his agency is a switch to a new computer management system. “It has been a lot of work so far, but I think it will definitely be worth it,” he said. Lewis is optimistic the skills he’s developed will assist him in the future. “I would like to eventually transition into owning my own agency, individually or with a partner/partners, and continue to provide great coverage and great service to all of our clients,” he said. If he owns an agency, however, one consideration is what color to paint his new office. “I would probably choose some relaxing neutral tones,” he said. “Although a nice bright red or orange could be a little off the wall idea.” – E. Blosfield

'I had a blast that summer working for Liberty Mutual.'

APRIL 15, 2019 INSURANCE JOURNAL | 27

Closer Look: Young Agents Heather Rogers Virginia’s Rogers Wants Community to Know Her Name for Helping

Heather Rogers was working at a local country club when a member called and asked her if she had ever thought about a career in insurance. “To be honest, I told him no and that I knew nothing about insurance. Fast forward almost 14 years, and I’m fully emerged in insurance as my career,” she told Insurance Journal. That phone conversation was with the current vice president of Hanckel-Citizens Insurance, an independent agency in Charlottesville, Va., where Rogers is now a commercial insurance producer. “I didn’t choose a career in insurance,” she said. “Insurance chose me!” Now Rogers says that her long-term goals in the industry include “becoming the person that when my name is mentioned, someone in the community says, ‘Yes, she helped me with our insurance and still is our agent today.’” While protecting clients’ assets is a job Rogers takes seriously, she indicated ensuring everyone’s needs are covered has its humorous moments as well. She said the funniest question a client has ever asked her is, “Would you cover bird poop that stained the paint on my car?” “And yes, it was a covered claim,” Rogers added. Rogers joked that if she weren’t an insurance agent, she has often thought about owning and managing a restaurant in a tropical location. “Some friends and family of ours have decided that when we win the lottery or ‘make it big,’ we are going to open a fun restaurant,” she said. 28 | INSURANCE JOURNAL | APRIL 15, 2019

'Yes, she helped me with our insurance and still is our agent today.' Even as an insurance agent, Rogers has that tropical location on her mind. If she could paint her office any color, it would be “a light blue, turquoise tropical color.” On a serious note, one hope she has is for agency management systems to become more up-to-date so there isn’t so

much manual entry. “If insurance companies can pull so much information from a person’s name and VIN (vehicle identification number), then why can’t the agency management system do the same?” Rogers said. – E. Blosfield INSURANCEJOURNAL.COM

Patrick Stephens If Florida’s Stephens Were Not a Broker, He’d Find Another Job in Insurance

Being a young insurance broker in Florida is never boring for Patrick Stephens, who started in the industry three years ago. Florida’s penchant for storms keeps the commercial lines broker for Hull & Co. in Ft. Lauderdale, Florida, occupied. He says while there isn’t much he dislikes about insurance, the thing he enjoys least is handling claims after big loss events. “Insurance exists to make people whole again, but suffering a loss is never a good time,” he said. He also is accustomed to responding to customers’ requests for coverage as a hurricane approaches the state. “I have seen

Danielle Moscinski Florida’s Moscinski Values Getting Clients to Value Coverage Over Price

Danielle Moscinski says she has come a long way since she joined the insurance industry in 2006. Among her most important and earliest lessons was understanding she doesn’t know the answers to everything. In particular, it’s important to take time to research, particularly when it comes to carriers. “[I assumed] that all carriers are the same,” she said, looking back. Moscinski has been with the same agency since joining the industry 13 years ago. She got her start in the mortgage department of the financial institution that owns INSURANCEJOURNAL.COM

many variations of ‘What do you mean I can’t buy insurance now?’ when we are under a hurricane warning with 48 hours until projected landfall,” he said. Stephens finds it so rewarding to be in the industry that if he weren’t an agent, he says he would still be part of the insurance world in some capacity, either with a carrier or in enterprise risk management. “I love the industry and proudly wear the title of being a nerd for insurance,” he said. Stephens majored in risk management and insurance and went from college to working full time as a wholesale broker. He knows not everyone feels as positively as he does about the industry and some people’s eyes “glaze over” when he talks about what he does. He also hears stories from people having a claim denied or other trouble they have had with the industry. “But my favorite reactions are when I am having a night out or traveling and meeting someone

else that is in the industry,” he said. “It is always a good time to make an industry connection and swap stories.” He said he wishes people better understood insurance. “I believe a lot of the dissatisfaction with the insurance industry comes from insureds having an incorrect idea of how insurance is supposed to work and making incorrect assumptions about the claims process because of it,” he said. He thinks young agents are bringing change to the industry, particularly with technology. “As the market continues to evolve and insurtech continues to grow, I believe a familiarity with technology is going to become more important moving forward,” he said. “Also, technology is allowing younger entrepreneurs and business owners, and young agents are working to make insurance and risk management more accessible to them all the time.”

her agency and decided to try something different. “Insurance intrigued me, so they hired me on as their administrative assistant, and it has been a fun ride ever since!” she said. One thing she enjoys most is educating people on the importance of having adequate insurance. She said she wishes more people understood not everyone in the industry is here to scam them. “There are times when people only care about price, but when you break it down and help them understand what they have at the time of a claim, they truly have a newfound appreciation,” she said. “I have many tenured customers because of this.” Moscinski says while young agents are generally more adept at technology and are

challenging insurance carriers and agency management systems to do better, there is still more everyone can learn, including her. She created a Facebook page for the agency in 2011, but the agency didn't work at it. So, she hired a social media specialist to boost its online presence and offer educational resources to clients. She would like to see improvements to her agency’s management system to provide better communication with clients, such as being able to email the entire client base when a hurricane is approaching with tips on how to prepare. “We pay a lot of money for our agency management system, and it definitely does not have all the bells and whistles it should to substantiate the price tag,” she said. She finds her job satisfying when clients are appreciative not only when she saves them money, but also when she provides better coverage and service. “[It’s the best] seeing when they understand I am here to help them in any way I can,” she said. – A. O’Connor

– A. O’Connor

APRIL 15, 2019 INSURANCE JOURNAL | 29

Special Report: Young Agents Survey

30 | INSURANCE JOURNAL | APRIL 15, 2019

INSURANCEJOURNAL.COM

Profile of Young Agents By Andrea Wells

oung agents don’t always feel supported by their elder peers. They say training sometimes lacks for newbies in the agency world. They don’t see enough diversity in leadership roles. And they continue to say that technology inside the industry lags well behind others. However, the young professionals that do make their way to the agency world love the opportunities a career provides. They love the freedom, flexibility and even the day-today challenges that come with their job. Most would recommend the job to other young people, too. That’s according to Insurance Journal’s 2019 Young Agents Survey, which asks young agents for their opinions on the industry, their agencies and their careers as an independent agent. Some 86% of young agents, those who are 40 years or younger, report they consider their job to be a permanent career choice and 84% would recommend it as a career

choice to another young person, the survey revealed. But there are some things young agents want to change. “I’d love to see the more seasoned / senior level members try and reach out to employees under 40; see what the pain points are and to gain perspective,” one survey respondent wrote. “A lot of what I’ve experienced has been ‘...this is how we’ve always done things.' I think it’d be a breath of fresh air for upper management to not only let [the] younger generation try their hands at leading, but to foster and grow these junior members.” Another young agent wrote: “I would like to see less ‘looking down’ upon in regard to younger agents. Some older agents may not intentionally condescend younger agents, but it is a big challenge in gaining trust of clients and shouldn’t be an even bigger challenge to gain trust/respect from their co-workers.” The survey also found that young agents would like to see more people that look like themselves in leadership roles.

continued on page 32

What Young Agents Earn Under $30,000

5.4%

$31,000 to $50,000

26.3%

$51,000 to $75,000

25.4%

$76,000 to $100,000

11.7%

$101,000 to $125,000

9.2%

$126,000 to $150,000

6.8%

More than $150,000

15.1%

INSURANCEJOURNAL.COM

Older Side of Young 60.5% are 31 to 40 years old; 39.5% are 30 and under. Career Choice 86.6% consider insurance to be a permanent career choice; 12.1% are unsure; 84.0% would recommend career choice to another young

person but 10.1% are not sure they would while 5.8% wouldn’t recommend being an agent.

Experience 19.6% have less than three years in insurance; 27.5% have three to five years; 28.3% have six to 10 years; 18.8% have 11 to 15 years; 5.8% have more than 15 years. Education 64.4% have a college degree; 7.8% have a master’s, doctorate or other advanced degree; 60.0% have completed or are working on an insurance designation. 67.3% have an insurance agent mentor.

Family Affairs 61.7% work in family-owned agencies. 25.1% are members of the family that own the agency. Size 57.0% work for agencies generating $1 million to $25 million in

P/C premium volume; 24.7% work for agencies generating more than $50 million in P/C premium; 88.2% are privately held.

Employment Status 89.3% are independent agents; 6.4% presently are sole owners of an agency; 17.0% share ownership with partner(s) Ownership Dreams 76.7% do not presently own an agency; of these, 47.9% would like to own someday and 23.9% of those feel very confident ownership dreams will come true – but 40.7% don’t believe it will happen.

Book of Business 68.1% target mostly commercial lines; 31.9% target mostly personal lines. Gender ID 59.3% Male 40.7% Female 46.0% Describe their political affiliation as Republican 17.3% Democrat 2.1% Other What Young Agents Do 64.3% attend local business or community meetings; 64.3% volunteer in my community; 14.9% get involved in local politics; 74.5% use Facebook; 76.2% use LinkedIn; 22.1% use Twitter; 15.3% write a blog; 60.4% utilize insurance coverage or other checklists; 70.7% take insurance courses on the internet.

APRIL 15, 2019 INSURANCE JOURNAL | 31

Special Report: Young Agents Survey continued from page 31 That includes diversity in ethnicity and gender, and seeing younger leaders in various roles. While more than one-third of young agents responding to the Insurance Journal survey were female, less than 15% were from ethnic backgrounds considered non-white or Caucasian. Of the total respondents, just 5.9% were Hispanic/ Latino, 3.8% were Black; 2.5% identified as Asian; and less than 1% noted they were from Native American descent. “I would love to see more people that look like me in leadership positions,” wrote one young Latino/Hispanic agent in the survey. One agent said if they could change the insurance world it would be by adding more female owners. Another added they would like to see more female agents, too.

Young agents also believe technology is an area that could use some improvement. “Technology has to improve, and the industry can’t be so slow to respond to changes in the world,” one said. One respondent complained about too many tech systems not working together. “I’d love to see a system created for the full independent agency experience. There should be a way to streamline everything under one system, not merge 10 different systems together to make it work,” the young agent wrote. “I wish it was WAAAYYY more techy. I went to school for IT and it (insurance) is light years behind,” another young agent explained.

Training Matters

For 30-year-old Jeffrey Sanders, a client advisor at Gulfshore Insurance in Naples,

Young Agents’ Outlook on Their Career

Outlook on the Future of the Independent Agency System

3.0%

25.9%

58.9%

Independent Agents’ Ability to Grow Personal Lines Market Share

3.8%

Very Optimistic

12.3%

Florida, the agency’s training Gulfshore Insurance was the program solidified his decitraining program. “Gulfshore sion to join the agency after is fairly unique in that they a previous career have a pretty robust in the hospitality training program. industry managing And I was really the private golf clubs. pilot person for it.” Two years ago, Gulfshore Sanders decided had made a few to make a career hires in the past change. “In the that just hadn’t hospitality indusworked out, try, you work Sanders explained. Jeffrey Sanders every weekend, “So I think they you work every were looking to do holiday and that can be tough something a little bit different as I started looking forward to and really invest in the young starting a family and getting agents they were going to married,” he said. bring in.” That meant creating He began exploring other a pilot training program and careers that he thought would Sanders was one of the first to maybe suit his “people” skillgo through it. set. “It came down to really Gulfshore paired Sanders two career paths for me, either up with a senior partner at the private wealth management or agency. But not just any partner — a partner who ended up insurance,” he said. What sold him on the being the ideal fit for Sanders. “He’s a bit of a younger guy,” insurance agency world and

Optimistic

17.0%

Very Optimistic 44.1%

Cautious Not Optimistic

Young Agents’ Outlook on Keeping Current Job

Optimistic

9.3%

Optimistic

Cautious 35.2%

Not Optimistic

Agency’s Ability to Attract Quality Talent

Cautious 43.2%

27.7%

4.2%

Very Optimistic

11.5%

Cautious

Believes 2019 Income Will Be Greater Than 2018

Cautious

32.1% 36.8%

23.3%

Optimistic Cautious Not Optimistic

32 | INSURANCE JOURNAL | APRIL 15, 2019

34.3%

Optimistic Cautious

46.2%

Not Optimistic

Independent Agency Channel’s Ability to Advance in Technology Use 3.8%

Very Optimistic Optimistic

17.8%

28.4%

Cautious 39.8%

Very Optimistic

36.0%

2.5%

Very Optimistic 58.9%

Not Optimistic

Outlook on U.S. Economy in 2019

6.4% 8.1%

13.6%

Optimistic

Not Optimistic

26.7%

Very Optimistic

19.7%

Optimistic 63.0%

Not Optimistic

Independent Agents’ Ability to Grow Commercial Lines Market Share

1.7% 7.7%

Very Optimistic

25.0% 22.5%

Not Optimistic

50.0%

Very Optimistic Optimistic Cautious Not Optimistic

INSURANCEJOURNAL.COM

What Young Agents Think he said, just 38 years old (now 40). “He’s still actively selling, not sitting behind the desk all day and just letting business come to him. He is very active in selling, so it was a great training ground for me.” Sanders spent just about every day with him. “I worked on his book, I worked with his clients, I went to all of his meetings for the better part of a year, and in the meantime, I would sort of work off of his prospect list while developing my own prospect list,” Sanders explained. That meant calling on those prospects, trying to set meetings for both of them, and really practicing the trade. “I would handle most of the busy work behind the scenes, and he would do most of the talking early on and I would follow his lead.” Over the next 12 months, Sanders slowly began taking the reins. “It worked out so nicely for somebody like me who’s trying to develop their book,” he said. Commissions were split on any business they sold as a team. “If I generated it, if I created the initial meeting and it led to business, we would split that new business commission right down the middle,” he said. “If it came from his prospect list, ultimately, that client would remain in his book. But if it was a brand new one that I had discovered and it was my prospect, he would help me sell it, we’d split the first year commission, and then that prospect or that client would go onto my book.” Sanders said the training and help he received has been an “awesome” experience. In insurance, the learning curve is huge, so the right training makes all the difference. “If you don’t have an insurance INSURANCEJOURNAL.COM

Basically True

Basically False

As a younger agent, I have to work harder to gain the confidence of clients.

70.0%

24.6%

I fear that my career will be hurt by a merger or sale of my agency.

33.9%

48.1%

I wish I could specialize more than I am now permitted to do.

26.8%

58.6%

I have one or more areas of specialization

76.0% 30.1%

17.7% 59.4%

During my career, I have worked for more than one agency.

36.1%

62.2%

While in my present position, I have been offered a job with another agency.

63.2%

33.5%

Success in this business is mostly about building relationships.

95.0%

2.1%

Success with 40 and younger clientele is built first by relationships online.

29.0%

53.8%

Efficiency and effectiveness are more important than relationships to succeed in this business.

25.1%

16.3%

I propose new ideas but our firm rarely seems to get to them.

30.7%

56.3%

The agency ranks could use more women and minorities.

39.3%

34.3%

I wish my agency would expand into new markets.

31.8% 73.0% 77.0% 32.2%

48.1% 19.0% 15.9% 54.4%

I would like to increase the time I spend on sales versus servicing or administrative tasks.

65.3%

23.4%

Insurtech will have an overall positive effect on the insurance industry.

38.7%

15.6%

The industry has been too slow to adopt new technology.

68.1%

19.8%

In 25 years, the independent agency system will be stronger than it is now.

57.1%

22.3%

Much of my production supports older producers in the agency.

I think my compensation is fair. I think my agency's management is fair. I believe advancement is based on relationships more than performance.

background, it’s like learning Latin. You just have no idea.”

Second Career

For 38-year-old Renee Licata, insurance is a second successful career in sales and marketing. After several years, in sales for a comput-

er software and technology company, Licata, currently the director — Collegiate Division, at Syracuse, N.Y.-based Haylor, Freyer & Coon Inc., decided she wanted to tackle a new challenge — insurance. A friend recommended the agency during a time that she

was considering a change in careers, she said. “The timing actually couldn’t have been better because they were looking for a new director of the collegiate department,” she said. “I thought it would be a great fit.”

continued on page 34

APRIL 15, 2019 INSURANCE JOURNAL | 33

Special Report: Young Agents Survey continued from page 33

tivity,” she said. Licata could see Licata says that there was room support made all for growth and she the difference. In just three years, her knew insurance was always in book of business demand. “I defigrew so fast that nitely saw a need she became the top and knew it was a producer in 2017 market [that was], and 2018 at Haylor, in my opinion, not Freyer & Coon, Renee Licata overly saturated.” which ranks as No. Plus, her “go-get58 on Insurance ter” personality is a good fit for Journal’s Top 100 list of independent agencies nationwide, an insurance agent. The next step was simple, she said. “I generating $114,033,368 million in total revenue in 2018. had to learn about the indus Licata’s past tech experience try,” she said. Haylor offered her the help has been helpful as well. “I she needed. “They fostered have been able to put to use some of my past technology support for me as I got up and running with my book of knowledge for this type of business. Not only by having position that I think may be advantageous not only for me people show me the ropes so but for Haylor, too,” she added. to speak but just through posi-

She admits it’s not easy moving to a new industry and building a new book of business from the ground up. But it’s her biggest accomplishment to date. “As silly as it sounds, really proving to myself that I could do it” was rewarding, she said. Licata hopes her success story sets an example, not only for her own 13-year-old daughter, but for other young women entering the industry. “Reach for whatever you want to be in life,” she said. “Be strong, be independent and reach for the stars.”

‘Natural’ Relationships

While young agents may have a tech-edge on some of their older counterparts, they are not blind to how relationships — and sales — are built

Young Agent Opinions on Current Employer Excellent

Good

Fair

Poor

Quality of agency technology in general

21.9%

49.8%

22.8%

5.5%

Quality of agency management system

26.7%

42.0%

25.0%

6.4%

Quality of laptops, phones and other devices

34.8%

44.9%

14.8%

5.5%

Mobile technology capabilities for customers and employees

21.2%

31.8%

30.1%

17.0%

Quality of rating and quoting system(s)

21.7%

44.7%

26.8%

6.8%

Quality of management

45.3%

37.7%

10.6%

6.4%

Use of social media

15.7%

33.5%

30.1%

20.8%

Use of technology tools to help with sales, marketing and prospecting

19.1%

36.0%

25.0%

19.9%

Agency website capabilities

20.3%

36.9%

27.5%

15.3%

Employee compensation and benefits

33.6%

40.0%

20.0%

6.4%

Opportunities for advancement

32.2%

34.3%

22.5%

11.0%

Administrative support

28.4%

40.3%

21.6%

9.8%

Opportunities for educational improvement

46.2%

36.9%

12.3%

4.7%

Telecommuting/flexibility with work-life balance

39.0%

29.2%

22.0%

9.8%

34 | INSURANCE JOURNAL | APRIL 15, 2019

in the industry. According to the Young Agents survey, 95% believe that success in this business is mostly about building relationships. Eric Weiser, 31, vice president at his family-owned agency Weiser Insurance based in Houston, understands the value of face-to-face interactions when networking with prospects. He doesn’t use LinkedIn or Facebook to network and has built a nearly $2 million book of business the old-fashion way, by focusing on “natural” relationships. “The best victories that I’ve had and the best relationships that I’ve had have been referral business,” Weiser says. “It’s meeting people the natural way and just doing the right thing instead of just being a salesperson and trying to slam something down their throat.” Weiser says middle market buyers are not looking Eric Weiser for their next broker or relationship online. “They’re looking through their trusted network whether it’s a CPA, an attorney, their payroll guy … that’s where they’re getting sound, good advice,” he said. “Building relationships with those type of people and delivering, always delivering when they bring you in on an account is where you really grow your book in this industry.” After seven years in the family business, he admits the first two years are challenging but advises young agents to not give up. “You have to have the ability to hear ‘no’ a hundred INSURANCEJOURNAL.COM

times,” he said. “But if you stick through it and just do all the right things for all the right reasons, and keep trying to build true, trusting relationships you will succeed in this business. There’s enough buyers that want do business with good people.” And don’t think youth is a disadvantage in the sales game, he adds. “I use the fact that I’m young,” he says. He lets prospects know he can be their trusted advisor for the next 30 years. “A lot of people like the young guy, they want to help someone succeed.” But, he says, never let that replace knowledge. “Understand insurance

What Young Agents Think About the P/C Industry Excellent

Good

Fair

Poor

Customer service

24.7%

60.4%

13.2%

1.7%

Public image

10.2%

40.9%

35.3%

13.6%

Treatment of employees

21.3%

60.9%

13.6%

4.3%

Professionalism

30.2%

57.5%

11.1%

1.3%

Ethics

25.1%

52.3%

19.2%

3.4%

Career attractiveness to young professionals

14.0%

26.7%

34.8%

24.6%

Use of technology

13.7%

38.5%

34.2%

13.7%

Marketing and advertising

17.0%

46.0%

28.9%

8.1%

because when you're young that’s a really quick way to level the playing field,” he said. “When I open my mouth in a meeting, I’m very educated on

the topic so that immediately brings validation.” Then focus on the relationships. “It’s really helped drive my success.”

The Young Agents Survey 2019 polled 250 young agents nationwide on their opinions about the industry, their agency, and on being an insurance agent.

Higginbotham University Strives to Be ‘Best in Texas and Beyond’

ike Bateman, man- employee benefits. Bateman says the time aging director, and money it takes to facilSales, for Dallasitate the Higg University is based Higginbotham has worth it in today’s competiinvested a lot of time and money into making the tive insurance world. “It’s not only taught our firm’s “Higg University” producers the a reality. insurance busiLaunched ness and all the in 2016, the complexities of University is the coverages, but it’s agency’s training ground for also taught our new recruits and culture, processes new hires. and makes for It’s robust, really well-rounded producers,” he says Bateman. said. Producers Mike Bateman The value far spend nearly outweighs what half a month in classes for six months. After the agency would receive they graduate, each produc- from insurance compaer is assigned a mentor in the ny training programs or firm — for three years. third-party education ven Higginbotham’s own dors, he said. And it’s the culture that’s in-house professor teaches the courses in both properbeen most beneficial to ty/casualty insurance and David Fishel, 31, managing

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director- Business Insurance, at Higginbotham. “The culture at Higginbotham is very much a team atmosphere and from the very first few days, they kind of ingrain that in you,” Fishel said. “You work as a team to go out and win business, and then keep business. After graduating college in 2010, Fishel joined Teach for America and became a high school teacher for two years. “I really enjoyed it, but knew I always wanted to get into business so went back to school for a master’s of business administration degree to bridge the gap.” During that time Fishel visited with a friend’s father who was a principal at a smaller regional agency. He joined the team but three months later the agency was acquired by Higginbotham.

That was a good thing, Fishel says. “The start of my insurance career really is at Higginbotham,” he said Fishel says there’s “no secret sauce” to finding success as a young agent. “I think it’s just old-fashioned hard work.” But Higginbotham’s culture has helped. His advice to other young agents: “Be the first one at the office. Be the last one to leave. And work your butt off the entire day,” Fishel says. “Don’t be afraid to ask questions because everyone is constantly learning and the more ‘at bats’ you get, the more success you’re going to have,” he said. “It's not an overnight success, but it’s a steady success if you’re willing to be diligent, and put in the time, and work hard. And it’s an incredible career.”

APRIL 15, 2019 INSURANCE JOURNAL | 35

Spotlight: Top 25 P/C Carriers P/C Direct Premium Written Up 4% in 2018

irect premium written (DPW) for property/ casualty insurance companies continues to increase, albeit gradually. At yearend 2018, nearly $670 billion of DPW By Douglas A. Powell was reported, a record high for the industry. For 2018, total DPW for all P/C insurers aggregately increased approximately 4 percent over 2017, an increase of $33.3 billion. More than 38% of this premium growth is attributed to the Top 25 P/C

insurers in terms of growth. For the 12 months ending Dec. 31, 2018, P/C companies comprising the Top 25 insurers in terms of DPW growth increased their DPW approximately $12.8 billion, or 10.7% over 2017. This continues the Top 25 insurersâ&#x20AC;&#x2122; impressive display of premium growth and financial stability. In contrast, the remainder of the industry reported an increase in DPW of $20.5 billion, or approximately 4% year-over-year. Although the market continues to exhibit signs of firming and DPW continues to increase, P/C insurers should not expect a traditional hard market in the near future.

More importantly, it is possible that the double-digit premium growth experienced in the historical hard market cycles may have created unrealistic premium growth expectations for this current recovery. It is more realistic that expectations should relate to gradual, stable growth. If the industry continues to hold to its 10-year historical pattern, growth in 2019 would again result in the highest level of year-end DPW ever reported by the P/C industry. Powell is a senior financial analyst with Demotech, Inc. Email questions and comments to dpowell@ demotech.com.

Top 25 Property/Casualty Companies Based upon dollar amount of direct premium written (DPW) growth.

DPW 12/31/2018

Company Name Allstate Fire and Casualty Insurance Co. GEICO General Insurance Co. Allstate New Jersey Property and Casualty Insurance Co. Progressive County Mutual Insurance Co. National Fire & Marine Insurance Co. GEICO Casualty Co. State Farm Mutual Automobile Insurance Co. Progressive Direct Insurance Co. USAA Casualty Insurance Co. Government Employees Insurance Co. Allstate Vehicle and Property Insurance Co. American Family Insurance Co. Progressive Select Insurance Co. USAA General Indemnity Co. GEICO Advantage Insurance Co. United Services Automobile Association GEICO Indemnity Co. Progressive American Insurance Co. United Financial Casualty Co. Ohio Security Insurance Co. GEICO County Mutual Insurance Co. Progressive Express Insurance Co. Farmers Insurance Exchange Attorneys' Liability Assurance Society Ltd., A Risk Retention Group Factory Mutual Insurance Co.

$9,141,218,022 $10,375,071,578 $635,682,691 $3,054,513,537 $1,799,474,760 $4,951,835,030 $40,650,851,921 $3,555,490,902 $6,823,101,542 $6,421,224,589 $2,812,560,929 $1,858,073,547 $2,325,565,372 $4,437,763,288 $1,911,178,781 $8,326,156,807 $6,161,637,766 $2,179,755,897 $1,824,153,034 $2,353,697,848 $2,097,316,261 $835,975,776 $4,806,465,139 $354,044,641 $3,040,575,111

DPW 12/31/2017 $8,277,250,581 $9,564,314,407 $0 $2,422,567,591 $1,179,056,283 $4,342,507,846 $40,077,551,346 $2,982,913,169 $6,292,183,641 $5,890,464,910 $2,300,977,709 $1,363,079,347 $1,832,528,902 $3,948,737,002 $1,426,871,113 $7,853,691,472 $5,736,188,790 $1,774,915,269 $1,420,210,660 $1,960,424,525 $1,707,917,549 $458,059,900 $4,439,787,852 -$2,699,271,004

$ Growth

% Growth

$863,967,441 $810,757,171 $635,682,691 $631,945,946 $620,418,477 $609,327,184 $573,300,575 $572,577,733 $530,917,901 $530,759,679 $511,583,220 $494,994,200 $493,036,470 $489,026,286 $484,307,668 $472,465,335 $425,448,976 $404,840,628 $403,942,374 $393,273,323 $389,398,712 $377,915,876 $366,677,287 $354,044,641 $341,304,107

10.44% 8.48% -26.09% 52.62% 14.03% 1.43% 19.20% 8.44% 9.01% 22.23% 36.31% 26.90% 12.38% 33.94% 6.02% 7.42% 22.81% 28.44% 20.06% 22.80% 82.50% 8.26% -12.64%

Top 25 P/C Companies by DPW Growth $132,733,384,769 $119,951,470,868 $12,781,913,901 10.66% All Other P/C Companies $536,886,894,672 $516,374,059,919 $20,512,834,753 3.97% Total $669,620,279,441 $636,325,530,787 $33,294,748,654 5.23%

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

36 | INSURANCE JOURNAL | APRIL 15, 2019

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Claims Journal Insurers Are Curious, Cautious When It Comes to Chatbots for Claims By Jim Sams

he insurance industry is slowly recognizing the potential of chatbots to free up resources and improve customer service, even as it recognizes the potential of the technology to sour relationships with customers, according to a report released by research firm Novarica. “Chatbots in Insurance: Overview and Prominent Providers,” profiles 13 technology vendors. Four offer chatbots specifically targeted to insurers; nine sell products that are designed for a broad variety of functions but can be put to use by carriers. Jeff Goldberg, executive vice president of research and consulting for Novarica, said chatbots offer a low-cost way for insurers to expand the way they interact with their policyholders and agents. At the same time, carriers need to recognize the limits of the technology and be mindful of the stressful conditions under which many customers contact them. “At this point, for most of insurers that are using chatbots, mostly it represents a very small percentage of their customer interactions,” Goldberg said. “When you dig in, you find that it’s a pilot that hasn’t been put to widespread use.”

Chatbot Opportunity in Claims

Nonetheless, those pilots are being put to use not just by insurance tech startups, but also by established carriers, he said. Chatbots are often used for interaction with agents, but increasingly, they are moving into the claims sphere, specifically for first reports of loss and claims triage, according to the report. Novarica said insurers are seeing chatbots as an opportunity for high-volume, low-transaction claims that require mostly routine data gathering. But the report INSURANCEJOURNAL.COM

warns insurers to be discerning about where the technology is used. Often, a consumer’s claim is triggered by a traumatic life event such as a car crash or fire. Goldberg said most consumers may remember interactive voice protocols that were infamous for sending customers around in circles. He said some chatbots are equipped with a sentiment analysis function that will pass a customer along to a human if it detects that the

person is upset. Chatbots can be useful for customers who simply want to acquire information about the status of a claim, according to the report. Novarica noted that in previous research, it found that millennials prefer self-guided research and would prefer to talk to an agent only as a last resort.

AVA, Hi Marley

The report profiled two instances in which carriers have put chatbots to use fielding customers’ claims inquiries. Metromile, a pay per mile insurer, launched an app-based claims assistant called AVA that walks consumers through the process of filing a first notice of loss and filing an auto claim. The company

said that 70% to 80% of its claims are approved immediately. Merchants Insurance Group selected insuretch startup Hi Marley to allow customers to communicate with claims adjusters by sharing photos and receiving updates and notifications. The system is now live for all personal and commercial lines, the report said.

Data Management

SmallTalk, a San Francisco-based technology provider, is among the 13 vendors profiled in the Novarica report. Its claim to fame was a customer acquisition chatbot for Next Insurance that allowed physical trainers and photographers to sign up for business insurance using Facebook Messenger. That system, launched in May 2017, has since been taken off line because Next Insurance was concerned about “data handling,” said Josh Salwen, cofounder of SmallTalk and its executive vice president for technology. Salwen said data management is one of the chief challenges facing chatbot technology. Businesses have trouble trusting the data that is gathered through chatbots. He said the insurance and financial services sectors are especially cautious because of privacy concerns. But Salwen said he is confident that insurers will recognize the value of the technology. “The one area where bots are good at, they know when they are stumped,” he said. “They will route you to a person. They tend not to give the wrong information. They give the right information, or they say, ‘I don’t know,’” he said. “I would be shocked if eventually bots weren’t helping with almost everything.” Sams is editor of ClaimsJournal.com. APRIL 15, 2019 INSURANCE JOURNAL | 37

Spotlight: Diversity New Atlanta-Based Multicultural Women’s Network to Tackle Industry

Leadership Gap By Amy O’ Connor

fter 25 years in the insurance business both as an agent and consultant, Mernice Oliver has heard a consistent theme from the women she has worked with and coached: there are no leadership initiatives or groups focused on the challenges for women who want to grow in the industry, particularly for minority women. She decided that issue needed be addressed and created a network focused on women and helping them grow in the industry, according to Oliver. The group — the National Association for Advancement of Women in Insurance, or NAAWI for short — started in February with the goal of becoming the “premier organization for multicultural women in insurance,” the Atlantabased Oliver said. “We really focus on helping women of color and multicultural women develop

themselves as leaders so that they are able to advance their careers in the insurance industry,” she said. Oliver noted that less than 1% of major leadership roles in the insurance industry are held by women, and that number is even less when it comes to women of color. “I believe it’s such a viable opportunity for any young woman thinking about ‘what am I going to do with my life,” she said. “But the problem is [the insurance industry] has not fully developed women at all … And so they choose an industry that they perceive as more glamorous or as more lucrative for themselves, when that’s not it at all. It’s just that we’ve lacked representation in terms of the leadership. Our goal is we want to change that.” Oliver’s own career in the insurance industry has transitioned from a fraud investigator to a recruiter to now

running her own consulting and professional development firm, where she helps women agency owners with leadership skills, staff training, sales and business development. “I’ve always been one who

She said NAAWI, which operates as an online professional membership association, will focus on the “four pillars of excellence” — leadership, diversity, community and growth. It will work to support women throughout the industry and grow the number of multicultural women through several initiatives, including an online leadership academy that will offer trainings; an executive roundtable series; networking events where women can meet each other and share best practices; a speaker series; trainings on how to be a speaker; and an annual leadership summit. Oliver said NAAWI will also have an annual “Disruptor Award” for women who have shown growth and change throughout the year. Although the group is aimed at being “multicultural,” Oliver said it is not exclusive to women of color, but rather is open to any woman who is looking for leadership development and support in business. “I think that really the myth when we say multicultural is that means we want to be exclusive. But we want to be inclusive, and that means everybody,” she said. “I’ve reached across the aisles and even invited women who are outside of the insurance industry because the goal is that if you are a woman in business and are looking for

‘We really focus on helping women of color and multicultural women develop themselves as leaders so that they are able to advance their careers in the insurance industry.’ wanted to see other women win and help them grow,” she said. “The niche kind of just found me … I’ve been able to help women navigate inside the insurance industry.” Oliver started with State Farm where she worked for 15 years investigating arson fires, which she called “the best job,” but she said she always wanted to be an entrepreneur. She later opened her own agency with Allstate and then went to work for American Family as an agent. She eventually became a corporate agency recruiter with Farmers Insurance, where she stayed until she opened her consulting firm in 2014.

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a place to grow and develop … then NAAWI is where you want to be.” Oliver said there are no requirements to join — just a desire to develop leadership skills and support women in business. The group also isn’t exclusive to insurance agents; it’s open to claims reps, underwriters, actuaries or any woman “currently navigating that life of being inside the insurance industry and/or are just looking to grow and up level their professional profile.” The group made its debut in February at an event in Georgia and is working on its first organizational initiative of growing the founding membership to 100 women. Oliver said the initiative, coined #NAAWI100, is aimed at recruiting women across the country who can join NAAWI for $100 in the first 90 days and forever be one of the group’s “founding members.” The cost to join for women outside the founding members is $199 a year, with a monthly payment plan of $33 a month offered. The NAAWI online leadership academy launched in March with its first training held on March 20. Members will also have access to a monthly personal development and a professional development training. The first executive roundtable will be held in late May or early June. Although the group has kicked off in Atlanta, Oliver plans for NAAWI to be in communities nationwide by its second year. Oliver said NAAWI will expand throughout the Southeast in the first year — starting in Nashville, INSURANCEJOURNAL.COM

Mernice Oliver, founder of National Association for Advancement of Women in Insurance Tenn., then into Charlotte, N.C., Birmingham, Ala., and Mississippi. Oliver said they are looking for women to become ambassadors for each region they expand into. The leadership team consists of women leaders in the Atlanta area insurance industry, including her own mentor – Rebekah Ratliff, who is the president of the Atlanta Association of Insurance Professionals, a local chapter of the National African-American Insurance Association. Oliver said while NAAWI will not specifically offer job connections, the group will help women find mentors in the industry who can help them reach their goals in the industry. “I’m a product of being

mentored well and really being encouraged to think outside of the box, to challenge the way we always do things and find solutions and a way to do them different,” she said. “We’ll provide an opportunity for [women] to find a mentor who can then hopefully help them find opportunities within their own specific companies and organization.” Oliver says one of her main objectives for NAAWI is to help move the insurance industry forward by giving women leaders opportunities they wouldn’t have had otherwise. “Having navigated in this industry for 25 years, my fear is we’ve not really reached out to the generation that’s coming behind us —we’ve kind of

lost them because we haven’t grown, we haven’t embraced new technology,” she said. “It is more male dominated — it is old men, but they’re dying off. What happens to the industry if we don’t reach out and pull the people along behind us?” The group plans to host a brunch this year for women between the ages of 18 to 24, where they can hear other women share their experiences of “why this is a great industry.” She predicts that in the next 10 years there will be a shift for women in the industry. “You’re going to see a lot more women in leadership opportunities, leading big, major companies and organizations just because right now we’re finally finding, I think, our magic,” she said.

APRIL 15, 2019 INSURANCE JOURNAL | 39

Spotlight: Directors & Officers What Companies May Not Know About an Exclusion Hiding in Their D&O Policies

any private companies believe that procuring a directors and officers liability (D&O) policy ensures that their executives By Scott C. James are covered. But, does the D&O policy really protect their C-Suites? The answer to that question often depends on the presence of the so-called “conand Andrew T. Flynn tract exclusion” contained in many D&O policies, how insurance carriers apply the contract exclusion, and how courts interpret the contract exclusion. While procuring a D&O policy is a critical part of a company protecting its officers, it is equally important that companies, and their

40 | INSURANCE JOURNAL | APRIL 15, 2019

agents or brokers, understand the risks associated with exclusions contained in the policy. It is well established that D&O policies do not cover breach of contract claims because parties entering into contracts voluntarily undertake the associated risk and potential for liability. To address this principle, D&O policies routinely contain exclusions, for example, “the insurer shall not pay loss in connection with any claim based upon, arising from, or in any way related to any actual or alleged liability under any contract or agreement, provided that this exclusion shall not apply to the extent that liability would have been incurred in the absence of such contract or agreement. The critical language contained in the contract exclusion that creates uncertainty is “arising from, or in any way related to …”.

Recently, insurers have applied an increasingly broad reading of this language to deny coverage for claims that many businesses reasonably expect to be covered. As an example, here is an excerpt from a recent coverage disclaimer from a large insurer:

Recently, insurers have applied an increasingly broad reading of this language to deny coverage for claims that many businesses reasonably expect to be covered.

An exclusion precluding insurance coverage for claims arising from a contract not only applies to claims sounding directly in contract but also to claims sounding in tort as long as they flowed from or had their origins in the breach of the contract. The insurer in that particular case drew support for this position from an Eighth Circuit Court of Appeals opinion applying Missouri law, Spirtas Co. v. Federal Ins. Co. The Spirtas court determined that

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the contract exclusion barred coverage for the tort claims of conversion and unjust enrichment, rationalizing that those claims were “arising from” contractual liability. Insurers rely on the Spirtas decision as a basis for disclaiming coverage for a wide variety of tort claims, such as tortious interference with a contract, negligent misrepresentation and fraud based on the Eighth Circuit’s statement that, “the term ‘arising from’ is construed broadly such that an exclusion precluding insurance coverage for claims arising from a contract not only applies to claims sounding directly in contract but also to claims sounding in tort as long as they ‘flowed from or had their origins in the breach of the contract.’” Several other courts have taken a similarly broad view of the contract exclusion to uphold coverage denials. There is, however, a growing body of authority providing that the contract exclusion does not apply to pre-contract wrongful acts. Courts have held that the contract exclusion does not exclude coverage for the tort claim of intentional misrepresentation where the misrepresentation was made before the transaction and the transaction was generated by and was a consequence of the misrepresentation. Determining when the claim arises in these cases is a critical aspect of distinguishing between tort and contract claims for coverage analysis. The contract exclusion can render a D&O policy illusory, leaving the company’s c-suite at significant risk of facing liability with no coverage. Understanding the danger presented by the seemingly benign words “arising from, or in any way related to” is imperative to evaluating the risk. It is best to procure a D&O policy that does not contain this expansive language. If a D&O policy does contain this type of language, the company should push to modify the language of the contract exclusion to eliminate “arising from, or in any way related to” and replace it with “based upon any actual or alleged liability under any contract or agreement.” If a business repeatedly utilizes the same form contract, the business should consider including specific language in its D&O policy providing coverINSURANCEJOURNAL.COM

age for liability arising from that specific contract. In any circumstance, careful review of the D&O policy is necessary before a claim arises. Consultation with legal counsel and/or the insurance broker regarding the scope of the contract exclusion in the D&O policy is helpful. As with

“

all insurance issues, the time to review the policy is before the claim. James and Flynn work in the insurance practice at Denver-based law firm Moye White. Flynn is a cofounder of the firm’s Insurance Coverage and Recovery Group. James specializes in insurance coverage and recovery, construction, and business law.

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APRIL 15, 2019 INSURANCE JOURNAL | 41

Idea Exchange: The Wedge The

Deadly Mistakes Killing Growth in Your Agency

he difference between where your agency is today and where it’ll be in five years is directly relatBy Randy Schwantz ed to your ability to develop your sales team. If you can create a sales culture that helps your producers improve the way they prospect, sell and retain business, you will experience massive growth. Imagine what type of agency you would have if you had a proven system that helped your producers double their book of business every three-to-four years. You’d have a lot of happy producers earning a lot of money, and you’d also be increasing the value of your agency. It’s a legitimate win-win for you and your producers. However, there are eight main mistakes that stand in

your way to this bigger and better future. If you can overcome them, you’ll transform your agency into a profit generating machine. If you can’t, you’ll continue to struggle with anemic growth. It’s now more important than ever to address these mistakes because of the state of the industry. Kevin Stipe of Reagan Consulting said: “The gentle tailwinds we’ve had in commercial P&C for the last few years are going away. They’re becoming headwinds again, and if we can’t build a sales culture to give us a stronger growth and push into these headwinds, then we’re going to be in trouble.” So, if you want to avoid the trouble Stipe refers to, make solving these mistakes your number one priority.

MISTAKE #1: Half-Hearted Commitment

Thinking you can create a growth culture without fully committing to it, is a mistake. Every firm is a mirror image of its leaders. If you’re not 100% committed to growth, your producers will see it and know that it’s not really the main priority. This is why I say most agencies do not have a producer problem; they have a leadership problem. Real producers are the type of people who will test your resolve. They want to know if you truly are committed, determined and have a clear plan of action. If you are, they will gladly follow you. If you aren’t, they will throw more obstacles at you than you can manage!

MISTAKE #2: Failing to Differentiate

Assuming you can create worthwhile differentiation without a strategy and working on it daily is a mistake. Many firms spend a lot of money searching for the Holy Grail of competitive advantage. Some agencies believe that when they buy or rent a tool, or hire a resource, they have competitive advantage, however, true advantage comes from superior utilization, and that’s a function of commitment. When you commit to a daily regimen of defining, and refining, your

differentiation – and when you actually implement your tools and resources – then you’ll have a huge impact on producer confidence. It’ll show in your retention rates and new business log.

MISTAKE #3: Creating Corporate/ Impersonal Goals

Many agencies make the mistake of thinking corporate goals are more important than a producer’s personal goals. Often times, this isn’t intentional. Typically, the owner never thought about how much more motivated their producers would be if they could help them connect their daily sales activity to their own personal longterm goals. The only sustainable motivation is that which comes out of the producer’s personal desire. Agencies miss a huge opportunity by not making a direct correlation to a producer and their activity, their new business, their book growth, their savings ability and the ability to become financial-

ly independent, maybe even wealthy.

MISTAKE #4: Failing to Understand What Motivates Your Team

Another common mistake owners make is failing to understand what really motivates people. For example, if you don’t think your producers are motivated by pride, ego, recognition, money and material things, you’re missing out on ways to truly motivate your team. Doing a once a year, off-site goal setting event with no follow up and no accountability is a mistake. Not having a means to connect pride, ego, recognition, money and material things to day-to-day activities is a mistake.

MISTAKE #5: Not Having a Clearly Defined Sales Process

Many agency owners say: “The reason we don’t have a standardized sales process is because everyone has their own way of selling. And we just like to leave them alone to do what they do best.” This mentality is dangerous to the health of your agency! It’s dangerous, because this passive attitude toward selling kills the growth in your agency. It allows producers to stay within their comfort zones, and it never challenges them to become the best version of themselves. Not challenging their comfort zones, not growing their prospecting and sales skills and not challenging their knowledge is a mistake that hurts you and your team.

MISTAKE #6: No Regular Training

Athletes have practice, students have homework and manag-

ers have coaching. So why would producer development be any different? Are they superhumans who are able to improve their skills without any practice or training? Or is their path to mastery the same as the rest of us? The truth is, they will not improve without proper training and accountability. They must be taught and tested and pushed to new levels of production, or they will always remain stuck right where they are.

MISTAKE #7: Low Standards

Thinking producers don’t want accountability and boundaries and that they will leave your firm if you institute these is a mistake! The truth is, real producers expect higher standards, because they will want to rise to meet them. Remember, they are competitors, go-getters, the type of personality who wants to win and outperform others. Therefore, when you shy away from high standards, you fail to unlock the true potential that resides in your most ambitious people. So, turn it up! And don’t be afraid to set higher standards.

MISTAKE #8: Failing to Make Agency Growth The #1 Priority

One of the worst mistakes agency owners make is thinking other things are more important than growth. There are a thousand different things that compete for your attention and focus as an owner. And it’s your responsibility as the leader to set the agenda and to say NO to all the little things, so you can say YES to what’s most important. It’s about adopting an essentialist mindset to growth, so you start to do fewer, but more profitable, things in your agency. However, if you don’t make this a priority, nobody else will. This is your job as a leader. You’re the captain who needs to steer the ship. Prioritizing anything above agency growth is a mistake! Schwantz is founder of The Wedge Group. the author of five books, including Agency Growth Machine: Transform Producer Potential into Agency Growth & Profit. Email: randy@thewedge.net. Phone: 214-4463209. Website: www.thewedge.net APRIL 15, 2019 INSURANCE JOURNAL | 43

Idea Exchange: Talent Embracing the

MultiGenerational Workforce A

s Generation Z enters the workforce, five generations are working side-by-side for the first time in history. Insurance By David E. Coons organizations face the challenge of motivating and engaging individuals that span from Gen Z (born after 1997) to Traditionalists (born before 1945), while avoiding generational conflict. Although research has been done on generational differences for years, we’re currently experiencing a unique shift within the talent landscape. Millennials (born between 1981 and 1996) are poised to quickly become the largest generation in the workforce. At the same time, members of this group, along with Gen Xers (born between 1965 and 1980), are moving into senior lead-

ership positions. Traditionalists and Baby Boomers (born between 1946 and 1964) are working well past the age of 65 and potentially taking a vast amount of knowledge with them upon retirement. Each of these generations is unique and offers different perspectives, stemming from varied experiences, backgrounds and life stages. And, each one deals with its own set of misconceptions and stereotypes. Whether or not true, these labels — along with different skill gaps, communi-

cation styles and expectations — can lead to conflict in the workplace. Rather than simply mitigating this conflict, organizations can cultivate a generationally diverse workforce and harness a multitude of strengths. A number of studies highlight the value of diversity in effective decision-making and innovation. Multiple perspectives create more robust conversations that enable teams to better tackle problems and arrive at more thorough and well-thought-out solutions. Companies must celebrate and encourage diversity to achieve more effective and agile teams that more accurately reflect their customer bases. Break down stereotypes. Managers and other leaders can help dispel stereotypes by removing the use of generational labels and focusing on individual employees. In fact, it’s possible that the generations are much more similar than some may think. An IBM study found that Millennials’ career goals and expectations are similar to other generations and include making a positive organizational impact, helping solve challenges and working with diverse groups of people. Millennials, Gen Xers and Baby Boomers also provided the same top reason they would change jobs: the opportunity for more money and a more creative workplace. Members of all generations value family, seek respect (which they may define in different ways) and want leaders they can trust, among other similarities, according to research by the Center for Creative Leadership. It’s possible that many of the more prominent differences across generations may be due to age or career stages. This mindset of dispelling stereotypes needs to extend across the company and

include interactions with potential candidates. Human resources teams and hiring managers should be trained to recognize if they are unknowingly pre-judging a candidate based on a graduation date or picture. This begins with education and awareness around unconscious bias and the unintentional barriers that may exist among individuals of different generations. Focus on similarities. There are many common denominators teams can focus on that are not generation-specific. For instance, all employees can rally around a sense of company purpose and pride. This could also mean bonding over the mutual goal of providing quality customer service or developing process improvements. Or, it could be a shared passion for philanthropy or a corporate charity event. By focusing on team building and individual interests and workstyles, rather than generational labels, companies can build a greater sense of camaraderie and community.

Create an environment of support. An environment that encourages support and idea-sharing at all levels cultivates trust and understanding. This might mean creating cross-generational project teams or committees. It could expand into mentoring and reverse mentoring programs, where ideas and knowledge can be shared among employees. Weekly huddle meetings can also provide an opportunity to share historic experiences, brainstorm solutions and collaborate on projects. Listen to your employees. While Millennials are one of the most talked about generations, it’s important to find a balance that also takes into account the needs of more seasoned workers, which still are the majority at many insurance organizations. For example, Millennials are often thought to value collaboration, but open work environments might not be the right option for all teams. Even more drastic is “hoteling” where employees claim a desk for the day instead of hav-

ing a more permanent workspace. This may be a trend and an ideal situation for some employees, but others may feel like they’ve lost their sense of place and identity. By listening to all employees — whether through in-person conversations, surveys or other means — firms can find solutions that blend the needs of multiple groups and make everyone as comfortable and engaged as possible.By cultivating mutual respect, trust and understanding among members of each generation, insurance organizations are primed to benefit from diversity of thought and perspectives. Listening to employees and recognizing their needs as individuals, while encouraging a collaborative and a supportive environment results in a more engaged and effective workforce. Coons is senior vice president of The Jacobson Group, a provider of talent to the insurance industry. Phone: 800-466-1578. Email: dcoons@jacobsononline.com.

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APRIL 15, 2019 INSURANCE JOURNAL | 45

My New Markets Diplomatic Entities

Market Detail: NSM Insurance Group’s

(www.nsminc.com) Global Coverage Program offers insurance coverage for foreign reverse flow businesses and diplomatic entities operating in the United States. The program insures many types of diplomatic entities including embassies and permanent missions in all 50 states, as well as the U.S. subsidiaries of foreign-owned parent companies, known as “reverse flow businesses.” Coverages include: reverse flow coverage; diplomatic entities coverage; property, general liability coverage; inland marine; automobile; and umbrella liability. Available limits: As needed Carrier: Unable to disclose, admitted States: All states Contact: Kevin Cornell at kccornell@ nsminc.com

Earthquake Coverage

Market Detail: Pacific Specialty Insurance Co. (www.pacificspecialty.com) has a new stand-alone residential earthquake program that’s affordable, flexible and right for more homeowners. Coverage can be placed alongside a Pacific Specialty residential policy or provided on a standalone basis. Low deductibles, competitive pricing, complete coverage. Available limits: As needed Carrier: Lloyd’s Syndicate 4242 States: Calif. Only Contact: Customer service at 800-3035000

Residential Flood

Market Detail: Prospect General’s (www. prospectgeneral.com) Flood Guard coverage is an admitted alternative to the National Flood Insurance Program (NFIP). With no elevation certificate requirement and no waiting period, Prospect General’s residential flood product is simple and provides coverage quickly. Coverage is written by Palomar Specialty Insurance Co. Flood Guard key features also include: dwelling limits up to $5 million; personal property up to $1 million; and loss of use up to $50,000. Coverage can be issued without payment (mortgagee - bill only); Department of insurance (DOI) admitted 46 | INSURANCE JOURNAL | APRIL 15, 2019

product (not affiliated with NFIP). Available limits: Maximum $5 million Carrier: Palomar Specialty States: Ariz., Calif., Ill., Ind., Nev., Ore., Pa., and Utah Contact: Cameron Conboy at 619-597-1276 or e-mail: cjc@palomarspecialty.com

Workers' Comp & EPLI

Market Detail: Applied Underwriters (www.auw.com) offers workers’ comp, EPLI, and workers’ comp plus. For 15 years, Applied Underwriters has been providing workers’ compensation options to customers throughout the United States and is part of the Berkshire Hathaway family of companies. Most classes are eligible. Competitive commissions offered. Appointment required in N.Y. only, not required in all other states. Available limits: As needed Carrier: Unable to disclose, admitted and non-admitted available States: All states except Alaska, Ala., Fla., La, Miss., and Texas Contact: Sheila Gallagher at sales@auw.com

Used Car Dealers

Market Detail: National Indemnity Co.’s (www.nationalindemnity.com) offering for used car dealers targets non-franchised dealers whose primary sales are private passenger autos or light trucks. Coverages include: liability, physical damage, uninsured motorist coverage (UM) and underinsured motorist coverage (UM); medical payments; and garagekeepers. High liability limits available, including up to $5 million in some cases. Regulatory filings for businesses that require federal or state authority to operate may be available upon request. Available limits: As needed Carrier: Unable to disclose, admitted and non-admitted available States: All states except Hawaii, Mass., N.J., and N.Y. Contact: Customer service at 402-916-3000

Boat | Watercraft | Yacht

Market Detail: Midlands Management

Corp’s (www.midlandsmgt.com) exclusive Watercraft Program provides broad coverage, claims handling and competitive pricing. Eligible classes include: yachts; runabouts; ski boats; bass boats; pontoons; high performance boats; sailboats; personal watercraft; jet boats; catamarans; jet skis; center console; charter; sport fish; cruiser; houseboat; and wave runners. Coverage includes: enhanced medical payments up to $100,000; emergency veterinary expenses; personal property coverage up to $100,000; underinsured and uninsured watercraft liability; environmental damage and pollution; consequential damage; occasional six pack charter and captain/crew coverage available; towing and assistance; and water sport liability. Features of coverage include: competitive pricing and commissions; multiple policy discounts; fast turnaround; watercraft up to 85 feet; houseboats up to 110 feet; broad market reach; hull values up to $5 million; liability limits up to $2 million; coverage available nationwide including Alaska and Hawaii; older vessels considered up to 50 years (survey may be required); claims handling, service and benefits. Available limits: As needed Carrier: Unable to disclose States: All states Contact: Mandee Wilson at mwilson@ midman.com

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Idea Exchange: Minding Your Business

Good Training: Why Agencies Should Invest in People

mployees should have continual training. They should be trained in “conflict resolution, hospitality and emoBy Catherine Oak & tional intelligence,” according to Richard Branson of Virgin Cos. Employees need to truly understand the customer’s perspective to resolve William Schoeffler issues and not push the problems or issues up the chain. As an entrepreneur, how can you bring people together to solve problems and build their trust in each other? Have question and answer sessions with employees to ensure the owner addresses concerns. This is the first step in building bonds between front-line staff and senior managers, which helps create open communication. Executives and managers 48 | INSURANCE JOURNAL | APRIL 15, 2019

need to get to know employees and identify skill sets.

Employees Should Solve Problems

Employees need to be able to solve problems on their own. Employees need the confidence and skills to do so, as they are on the frontline. Handling customer complaints teaches employees the issues and how to handle them. If not, they need to speak up and learn. This also helps managers by reducing time spent on dealing with customer complaints. Most often, the issue is not having enough information. Reduce limits to access on databases and invest in new information technology. Do what it takes to make sure employees can seize the initiative on their own. The best organizations do not silo information. Good training is good business. Investments in staff should be at the top of the list. As a consultant, I always wonder when I see a company that pays little in the education expense category. How do those employees feel?

If owners and managers are good to their employees, they will attract some of the best people in the business, and they will help the firm stay ahead of competition. The best way to train employees is to have them spend time at the desks of other employees in the firm. Also, they should go on sales calls with top notch sales people, so they can see what the firm is up against. That way, even if they are in customer service, they understand the concerns and needs of the firm’s clients and what is expected by the people the firm serves or wants to serve. Once training is complete, find ways for employees to hone skills. Allow transfers to different departments or positions. Allow people to move up in the organization rather than always hiring from outside of the company. Work on solutions to better training, ask the staff what they need. When management increases staff skills, loyalty, motivation and experience are also increased. Owners are setting the company up as one of the best in the business. The owners are looked at as the best employers and market leaders. Turnover is diminished in these firms.

Take Care of Employees’ Needs

Other types of outside training should be discussed on how to improve people’s interpersonal skills, such as leadership camps, meditation, stress reduction, financial planning, etc. Again, it is good to discuss with employees what would be helpful. A good time for this discussion is at employee review time. Many people should be able to work from home so they can spend more time with their families and less time on the road. Commute times in many cities have become unbearable, i.e. in parts of California, New York and many big cities. Mass transit can also be crowded and uncomfortable. Some employees are now working flex-hours and even four-day work weeks. Be flexible to focus on employee needs. Allow people to have a good work-life balance. It may also be a good idea to help pay for childcare for employees and gym memberships. Employee bonuses can be days off instead of additional money. Ask employees what is most important to INSURANCEJOURNAL.COM

them. If management seems to care about them and does more to make their lives easier, they are more likely to have longterm employees.

the competition. This will also make the firm a great place to work.

Training is not a one-off thing. Make it an important part of the firmâ&#x20AC;&#x2122;s budget. Employees must stay on top of market developments and have additional training and refresher courses to stay ahead of

Oak is the founder of Oak & Associates, and Schoeffler is a financial analyst and junior consultant of the firm. The firm specializes in financial and management consulting for independent insurance agencies, including valuations, mergers acquisitions, clusters, sales and marketing planning as well as perpetuation planning. Phone: 707-935-6565. Email: catoak@gmail.com.

April 15, 2019

LifeSecure Insurance Company 10559 Citation Drive, Suite 100 Brighton, MI 48116

Aventus Insurance Company 6801 Calmont Avenue Fort Worth, TX 76116

The above company has made application to the Division of Insurance to transact Life, Accident and Health Insurance in the Commonwealth of Massachusetts.

The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 02118-6200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

April 15, 2019

United Life Insurance Company 118 Second Avenue SE Cedar Rapids, IA 52401

United Healthcare Insurance Company of Illinois 200 East Randolph Street, 5300 Chicago, IL 60601

The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Life, Accident and Health Insurance in the Commonwealth of Massachusetts.

Summary

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April 15, 2019 State National Insurance Company Inc. 1900 L. Don Dodson Drive Bedford, TX 76021 The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts. Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 02118-6200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

Advertisers Index Abram Interstate www.abraminterstate.com W12 Access Home Insurance www.accesshomeinsurance.com SC5; S3 AIG www.aig.com/business 11 Applied Underwriters www.auw.com 2, 3, 52 California Earthquake Authority mvp.earthquakeauthority.com W3 EZLynx www.ezlynx.com 13 Golden Bear Insurance www.goldenbear.com W9 IICF www.iicf.org 47 InsurBanc www.insurbanc.com 41 M.J. Hall & Company www.mjhallandcompany.com W10 Midlands Management Corporation www.midlandsmgmt.com SC4 Monarch E&S Insurance Services www.monarchexcess.com W1 Pacific Gateway Insurance Services www.pgiainsurance.com W11 Philadelphia Insurance Companies www.phly.com 9 Regions Bank www.regions.com 14 ReSource Pro www.resourcepro.com 43 Ryan Specialty Group www.ryansg.com 5 Smart Choice Agents Program www.smartchoiceagents.com 51 State Compensation Insurance Fund www.statefundca.com W5 Summit www.summitholdings.com SC3; S1 Texas Mutual www.texasmutual.com SC1 The Hartford Insurance Group www.thehartford.com 7 United Fire Group www.ufgsolutions.com 17 WSIA- Wholesale & Specialty Ins. Assoc. www.wsia.org 45

APRIL 15, 2019 INSURANCE JOURNAL | 49

Closing Quote Why the Industry Must Embrace Change

By Jana Schellin Foster

My dad used to always say 'a hungry dog fights best.'

hange is a great way to build, personally and professionally. If we want to stay relevant in our industry, we have to learn how to embrace change. Today, we are changing at the fastest pace our industry has ever seen. Generation Z is hot on the trail of the millennials, and to think, this up and coming group of young professionals have never known a life without technology. The digital age of insurance is here. Buckle up - more change is coming. Along with the daily changes in the tech movement, many agencies are changing from the inside out. For example, the definition of “professional” is evolving. Do your daily work clothes define your professionalism? Some would argue yes. Some young agency principals would disagree and say that their fast and efficient customer service is what sets the bar for their professionalism. Right or wrong, the message remains, customer service is key. Most likely, at the

end of the day, the consumer will choose the agent that has best serviced them, not the best dressed. As independent agents, we pride ourselves on that customer connection. What makes a young independent agent more attractive? What pushes that consumer to come your direction? Very simply, your story. What are you doing day-to-day in your agency to provide top notch customer service, provide purpose to your employees and help your community, all while showing each customer just how important they are? Consumers are enticed by a good story. What is your story, what do you sell, how do you better your community and then how do you get it out there for people to see? I recently had a "duh" moment while sitting in a keynote speech at a conference. “If customers are confused about what you offer, they’ll look past you for somebody who can say it clearly. The human brain is drawn to clarity and away from confusion.” Donald Miller, the CEO for StoryBrand, dropped this knowledge bomb on me last month at ELEVATE, and it could not be more right on. Get your story out there. Humanize yourself! Our goal as a young agent committee of the

Independent Insurance Agents & Brokers of America is to help encourage and launch the next generation of independent agency system leaders. We work throughout the year to build involvement in and activism for the legislative issues vital to the future of the insurance industry. We hold a variety of events which provide our members with education and networking opportunities with industry peers. Our hope is that through these events, our agents will develop relationships with industry leaders and learn valuable interpersonal and leadership skills. Moreover, as an agency principal, allowing a young agent in your office to participate in state and/or national level activities provides that agent with a priceless forum for sharing with peers who have the same types of challenges and successes. As a result, they will gain a broader and fresher perspective that they can bring back to your agency and help the bottom line. As a committee, this year we grew, changed, and most importantly, learned a lot. We have always been a strong group of business

professionals, and this year, we looked to broaden our connections, educate our members, give to our communities and grow our membership. We had a successful year, and we are constantly looking to the next level. More members, greater options for education, improvements in our grassroots efforts, larger success in our philanthropic efforts; we always need and want more. My dad used to always say “a hungry dog fights best.” If we have no more success to gain, no more battles to win, wouldn’t we just throw in the towel? The future belongs to the young agents. The future is the independent agent. I would encourage young agents to embrace change, get uncomfortable, tell your story, and most of all, stay hungry. Schellin Foster is the owner/producer of the Nevada Insurance Agency Company and also serves on the National Young Agents Committee. (2017-2019). Email: Jfoster@niacnv.com.

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