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January 11, 2021 • Vol. 99 No. 1

Contents

News & Markets

Special Report

Idea Exchange

Insurers Not Quitting on Cyber Even as Risks Mount

Minding Your Business: Extreme Systemization and Stratification of Agency Operations

Special Report: Rates, Retentions Up in Employment Practices Liability Market

Is It Covered?: The Final Word on COVID-19 and Insurance?

Introducing the 2020 Insurance Fraud Hall of Shame

Lloyd’s Moves to End Insurance and Investments in Coal for Climate Sustainability

28 Special Report:

Agents of the Year

Social Inflation Lesson: Not Settling Cost Insurer Millions in Suit by Excess Insurer

2021 Meetings & Conventions Directory

4 | INSURANCE JOURNAL | JANUARY 11, 2021

Can Insurance-Related Firms Compel Employees to Get COVID-19 Vaccination?

How to Deal with a New Set of Risk Priorities

Closing Quote: Heavy Burden on Fleet Owners

Directors & Officers Risk Landscape Shaped by Insolvencies, COVID, Activism

Departments 6 Opening Note

Special Report: Employment Practices Insurance in the Age of COVID

10 Declarations

10 Figures

22 People

24 Business Moves

27 My New Markets

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Opening Note Write the Editor: awells@insurancejournal.com

Insurance Company M&As to Continue in 2021

nsurance mergers and acquisitions (M&A) rebounded from COVID-19 challenges in the second half of 2020. The trend should continue well into 2021 as companies unload non-core assets and purse cost-effective advancements in technology, PwC said in a new report. The firm noted 222 announced transactions from the end of June through mid-November worth nearly $11 billion in total. Among one of the more noteworthy deals: Allstate’s $3.7 billion acquisition of National General Holdings Corp. The report also tracked life insurance acquisitions, including Great-West Lifeco’s acquisition of MassMutual’s retirement services business. Expectations are that the M&A trend will continue into 2021 as carriers divest non-core business and compete for distribution targets, PwC said in its report. Another driver: the hardening of specialty property/casualty insurance markets and “significant levels of deployable capital.” Low interest rates are a key element that PwC said will keep the M&A train running strong. “A ‘lower for longer’ interest rate environment will continue to put pressure on investment returns and profits, especially for carriers managing capital intensive segments or blocks of business,” PwC said. “As these companies re-assess their core portfolios, we expect further divestitures, particularly within the life and annuity sub-sector.” Beyond divesting non-core assets, carriers are increasingly seeking to digitize their operations. Rather than do it themselves, acquiring an insurtech is a viable option that will fuel another leg of M&A activity in the months ahead, according to PwC. “Opportunities in innovation insurtech continues to present attractive investment and acquisition targets for large insurance companies, particularly for those without the technological expertise or agility to develop their own digital platforms,” PwC said. PwC noted “significant investment” in insurtech companies in the 2020 third quarter, which it said pointed to strong demand for both M&A and ownership stakes in the sector. Insurtechs have other options, too – in particular, more may eye initial public offerings (IPO), PwC said. PwC’s full report is “Insurance deals insights: 2021 outlook.”

‘Opportunities in innovation insurtech continues to present attractive investment and acquisition targets for large insurance companies, particularly for those without the technological expertise or agility to develop their own digital platforms.’

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 Contributors: Mark Hollmer, Bryan Johnson, Samuel Licker, Gary Pearce, Jim Sams, Jason Schaufenbuel Columnists: Catherine Oak, Bill Wilson

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 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 Web Team Lead Nathan Huebner | nhuebner@insurancejournal.com Ad Ops Specialist Jeff Cardrant | jcardrant@insurancejournal.com Web Developer Terrance Woest | twoest@wellsmedia.com Web Developer Ryan Kleshinski | rkleshinski@wellsmedia.com Web Developer James Wagoner | jwagoner@wellsmedia.com New Media Producer Bobbie Dodge | bdodge@insurancejournal.com

ACADEMY OF INSURANCE

Director Patrick Wraight | pwraight@ijacademy.com Online Training Coordinator George Jack | gjack@ijacademy.com

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Andrea Wells Editor-in-Chief 6 | INSURANCE JOURNAL | JANUARY 11, 2021

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News & Markets Insurers Not Quitting on Cyber Even as Risks Mount By Mark Hollmer

t could go down as one of the most significant cyber attacks yet. Russian hackers breached a number of U.S. government agencies and dozens of private businesses through a tainted update downloaded for network-monitoring software made by SolarWinds. Potentially significant breaches hit the Pentagon and the Department of Homeland Security, according to media reports. While the attacks will hurt on multiple levels, cyber ultimately remains insurable, experts and insiders say. Still, the risk remains a challenge to cover. Risk management approaches are ripe for improvement and coverage must be adapted continually to accommodate emerging threats, the experts add. “Cyber risk is definitely still insurable. To suggest otherwise is analogous to saying property risks are not insurable after a bad hurricane season,” said Meredith Schnur, Marsh’s U.S. & Canada Cyber Brokerage leader. “The cyber insurance market continues to evolve and expand to meet the changing nature of the risk.” Schnur noted that cyber coverage adapted to numerous changes from the mid-2000s onward, from new federal and state privacy laws to credit card exposure and PCI risk. “The market worked it out. Underwriters learned how to underwrite and price for that risk,” she said. “We are experiencing the same thing now with the proliferation of ransomware. Underwriters

are using third-party vendors to assist in underwriting their insureds’ control environment, which in turn will lead to better risk selection. Just like we have done for the past 20 years, we will ride the waves and work with the underwriters to create a sustainable market for cyber insurance.”

Can Handle Risks

Catherine Mulligan, global head of Cyber for Aon’s Reinsurance Solutions business, added that in 20 years, standalone cyber insurance has matured into a $7.5 billion sector that can respond to a variety of claims. “The insurance industry has a longstanding commitment to addressing emerging risks, [and] technology is an essential

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fabric of society and business, so the insurance industry should continue to invest in risk management and risk transfer of the cyber peril,” Mulligan said. Mulligan said risk management and cyber coverage are successful only if both are designed with cooperation from multiple parties. As with any complex risk, the solutions will require cooperation among the public and private sectors, technological tools to support underwriting and pricing risks, and data on threats and claims to support stable, long-term capacity, she added.

Perspective

Oliver Brew, head of client services at cyber risks ana-

lytics InsurTech CyberCube, observed that the Russia/ SolarWinds breaches appeared to be more political than targeting businesses. “Many thousands of companies around the world of all sizes and industries buy cyber insurance,” Brew said. “The breaches highlighted... impact some U.S. federal governmental entities as well as potentially many private companies. At this stage, the motive appears to be espionage rather than financial, and it is not clear if any data has been destroyed or exfiltrated.” Brew said insurers continue to have the ability to address cyber attacks as well as any other disaster situation. “Insurers are financially stable and prepare for potential

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disaster scenarios where multiple companies are impacted by a single vulnerability (in this case a software update that contained malware) or failure of technology,” he said. While the types of losses triggered by this latest malware attack aren’t yet fully known, there are steps Brew said can be taken to minimize damage and reduce their exposure. “This includes installing the Hotfix update released by SolarWinds, as well as work with a forensic team to identify any indicators of compromise,” Brew said. “By vigilant monitoring of systems, the impact of this event can be minimized.”

Room for Improvement

Cyber insurance currently functions well in a variety of ways and has the ability to evolve quickly, according to

Mulligan. “Cyber insurance can and does respond to a variety of first- and third-party exposures, and the (re)insurers that stand out are those who have invested in specialty attention to the space,” she said. “The insurance industry has responded to 20 years of evolving cyber threats. The products have transformed, technology has been introduced to support individual risk assessment and aggregation management, and the insurance industry has continued to provide risk management insights and support to insureds of all sizes.” Still, there is always room for improvement. Mulligan noted the U.S. government’s Cyberspace Solarium Commission, for example, is calling for deeper analysis to improve datasets. “This would buttress work that is ongoing in the private sector,” Mulligan said, adding that public and private institutes should continue conversing about ways to improve. She said Aon is recommending a government study about the potential scope of a cyber terrorism event in order to support the industry in building capacity. In the end, cyber attacks won’t go away, and they continue to evolve quickly in their approach and scope. Mulligan acknowledged this, but said risks can still be minimized. “While perfect prevention is unlikely, awareness and consistent cyber hygiene will support a company’s ability to respond to threats,” she said.

Hollmer is editor of CarrierManagement.com, where this article was originally published. INSURANCEJOURNAL.COM

Introducing the 2020 Insurance Fraud Hall of Shame

he year 2020 would not be complete without a recap of America’s worst insurance fraud crimes. Homeless New Yorkers targeted in a $31.7 million slip-and-fall ring. A sober-home mogul trades sex for drugs. A billionaire insurance mogul attempts to bribe a state insurance commissioner. These are among the newest members of the Insurance Fraud Hall of Shame inducted by the Coalition Against Insurance Fraud:

• Slip ring stumbles. Bryan Duncan hired hundreds of

homeless people to fake $31.7 million of painful injuries from setup falls against businesses in New York City. Many had unneeded surgery. Federal sentence: 80 months. • Fired up, watered down. Dozens of old houses were burned and flooded in a $1.7-million scheme by Patrick Wayne Bronnon’s ring in Texas. They also insured fake possessions. State sentence: 78 years in state prison, though Bronnon died in July 2020. • Stolen Valor. Richard Meleski claimed he was a Navy SEAL wounded in Beirut, Lebanon. Yet the Pennsylvania man never served in the military. He invented the heroics to steal more than $300,000 of federal disability money. Federal sentence: pending. • Food folly. Tainted food sickened Jacqueline Masse, the New Hampshire woman said. She filed nearly $400,000 of false claims against innocent restaurants and grocery stores. Masse also stole her children’s identities for claims. State sentence: 18 months. • Bribery boondoggle. Billionaire insurance mogul Greg E. Lindberg tried to bribe North Carolina’s insurance commissioner $2 million to ease state regulation of his firms. Instead, Insurance Commissioner Mike Causey and the FBI wired Lindberg’s bribery attempt. Federal sentence: seven years. • Sex, drugs, betrayal. Christopher Bathum traded sex for drugs to addicted women at his rehab facilities in a $175-million insurance scam. The Los Angeles-area man also gave patients drugs so they’d relapse for more expensive rehab. State sentence: 52 years. • Skin-deep scam. Dr. David Morrow billed uninsured beauty surgery as medically essential in a $50-million scam. The Beverly Hills surgeon charged tummy tucks as hernia repairs, and nose work as fixing deviated septums. Federal sentence: 20 years. • Rapper fraud racket. Would-be Chicago rapper Qaw’mane Wilson had his mother shot for life insurance and her savings to flaunt money and build up his fan base. State sentence: 99 years.

JANUARY 11, 2021 INSURANCE JOURNAL | 9

Figures

$ 2 MILLION $114,000 That’s the fine following an investigation into the COVID-19 deaths of two workers at a Washington farm that found dozens of safety and health violations. The Washington state Department of Labor & Industries cited Gebbers Farm Operations LP in Brewster and issued one of the largest workplace safety and health fines in state history.

A former New York City Transit subway conductor has been charged with grand larceny and other crimes for allegedly stealing approximately this amount in workers’ compensation payments from NYC Transit. Giovanni Seminerio, of Alva, Fla., was arraigned before Brooklyn Supreme Court Justice Dena Douglas on a 22-count indictment in which he was charged with second-degree grand larceny, first-degree offering a false instrument for filing, first-degree falsifying business records and related charges.

Declarations App Shakeup

Once-in-a-Decade Impact

— Los Angeles Mayor Eric Garcetti hailed the city’s earthquake alert app, which was retired on Dec. 31 in favor of the statewide MyShake app.

— New Jersey Transit President and CEO Kevin Corbett said regarding the lengthy recovery process for the tri-state region’s transportation systems after Superstorm Sandy hit eight years ago. Some projects lack needed federal funds, while others had money available but were delayed by internal conflicts and inefficiency. Billions of dollars in projects to protect transit infrastructure from future flooding remain unfinished, as transit agencies face the parallel challenge of continuing to operate amid gaping budget holes caused by the pandemic.

“Los Angeles leads the nation in earthquake resilience and ShakeAlertLA showed how we can harness technology to provide critical warning before an earthquake hits.”

10 | INSURANCE JOURNAL | JANUARY 11, 2021

“It seems like at least once a decade, you’re going to get something that has a major impact on the transportation network.”

Insurer of First Resort

“Over the past 18 months, Citizens has become the insurer of first resort. This is not its statutory mission and we must take steps immediately to reverse this trend and protect Floridians who are ultimately on the hook if Citizens is unable to pay claims.”

— Florida’s Citizens Property Insurance Corp. Chairman Carlos Beruff on the continued growth of the insurer’s policy count thanks to the state’s strained private insurance market. Beruff made his comments at the Citizens’ December board of governors meeting. The board opted to delay final action on its proposed 2021 rates and instead directed Citizens’ staff to work with the state regulator on how Citizens can bring its rates, which are capped by a statutorily mandated glide path of 10% a year, more in line with the private market.

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The number of managers fired from a Tyson Foods Inc. plant after an investigation into allegations that the former managers took bets on how many employees would catch COVID-19. The independent investigation, led by former U.S. Attorney General Eric Holder, came in response to a lawsuit filed by the son of a worker at a Tyson facility in Waterloo, Iowa, who died in April of complications from the virus. The lawsuit claimed that plant managers misled workers about COVID-19, bet on workers catching the virus and allowed sick employees to continue working.

Slow Hurricane Recovery

“Adjusters are being changed on a regular basis. Some people are going through four, five, and six adjusters. They lose track” of the information they’ve provided and received.

— Lake Charles Sen. Mark Abraham, a Republican, one of the many lawmakers who criticized the insurance industry’s handling of claims from Hurricanes Laura and Delta, describing slow responses, low-balled damage estimates and drones — instead of people — used to assess destruction during a Dec. 16 meeting of the Louisiana House and Senate insurance committees. Lawmakers said people are struggling to rebuild and that insurance companies are making recovery harder. Among the problems cited in the hearing involved high turnover and inexperience of insurance adjusters.

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$20,000

The maximum grant amount that could be available to Miami Beach homeowners to help cover the cost of floodproofing their properties under a program being considered by the city. The program, which could be up and running in late 2021 or early 2022, would help residents adapt to climate change that is causing sea level rise in the region by offering matching grants for projects to cut down on flooding like installing flood panels, swapping out a driveway for permeable pavement or planting absorbent landscaping. The money would come from the Miami Beach Resilience Fund and would be the first proposal of its kind that offers city money to homeowners as a grant.

Can’t Win for Losing

A Big Deal

— David Clough, Maine director for the National Federation of Independent Businesses, refers to a planned lawsuit against a Maine venue that hosted what became a COVID-19 “superspreader” wedding reception. Clough said costly litigation related to COVID-19 can bankrupt small businesses that don’t have deep pockets. Hundreds of negligence lawsuits have been filed across the country, with mom-andpops most fearing the prospect of litigation that could put them under.

— Anthony Schutz, an associate law professor at the University of Nebraska, comments on the ruling requring the federal government to pay some landowners along the lower Missouri River for flooding damage caused by changes the Army Corps of Engineers made to the river to protect endangered species. The ruling affects land along the river from Sioux City, Iowa, to St. Louis, Mo.

“They can end up losing even if they win a lawsuit.”

“This is a big deal. … The potential liability could be in the hundreds of millions of dollars depending upon how many people are included.”

JANUARY 11, 2021 INSURANCE JOURNAL | 11

News & Markets Lloyd’s Moves to End Insurance and Investments in Coal for Climate Sustainability

By L.S. Howard

he Lloyd’s market is moving to end its insurance cover for coal and oil sands businesses while at the same time ceasing investments in such carbon-producing assets by Jan. 1, 2022. As part of its plan to accelerate the transition to a more sustainable insurance and reinsurance marketplace, Lloyd’s has developed a market-wide strategy that aims to align with the United Nations’ Sustainable Development Goals and supports the principles included in the Paris Agreement on climate (which marked its fifth anniversary in December 2020). A major part of its sustainability strategy 12 | INSURANCE JOURNAL | JANUARY 11, 2021

is to ask Lloyd’s managing agents to phase out new insurance cover for thermal coalfired power plants, thermal coal mines, oil sands or new Arctic energy exploration activities from Jan. 1, 2022. The strategy also includes ending new investments in these areas by Lloyd’s market participants and by the Corporation of Lloyd’s from Jan. 1, 2022, according to Lloyd’s first Environmental, Social and Governance Report 2020. Existing investments in companies with business models that derive 30% or more of their revenues from these carbon-producing activities will be phased out by the end of 2025. To enable the market to support

customers during the transition period, the target date for phasing out the renewal of existing insurance cover for coal and oil sands facilities and activities is Jan. 1, 2030 (including for companies with business models which derive 30% or more of their revenues from any of these activities). Existing investments in companies with business models that derive 30% or more of their revenues from such carbon-producing assets will be phased out by the end of 2025. Other insurers and reinsurers such as Allianz, AXA, AXIS Capital, Chubb, Generali, Hannover Re, The Hartford, Liberty Mutual, Munich Re, QBE, SCOR, Swiss Re and Zurich Insurance INSURANCEJOURNAL.COM

have already cut their insurance and/or investments in carbon-producing fossil fuel businesses and activities.

More Urgent Action Needed

The Insure Our Future climate action group said Lloyd’s is taking a step in the right direction with its move to stop providing new insurance cover for coal and oil, but more urgent action is needed. “[T]he policy should take effect now, not 2022. Additionally, the target date for Lloyd’s to phase out existing policies should be January 2021 for companies still developing new coal and tar sand projects. Lloyd’s 2030 deadline is not justified by climate science and the urgent need for action,” said Lindsay Keenan, European Coordinator for Insure Our Future, in an emailed statement. Insure Our Future is a global coalition of non-governmental organizations and social movements pressuring insurance companies to get out of the coal, oil and gas business and support the transition to clean energy.

‘Sustainable, Responsible Underwriting’

With its ESG strategy, Lloyd’s said it is announcing for the first time “publicly accountable targets for responsible underwriting and investment.” Bruce Carnegie-Brown, chairman of Lloyd’s ESG committee and chairman of Lloyd’s, commented that the strategy “represents an important milestone on the journey towards building a more sustainable future.” “We have the opportunity to play our part in building back a braver, more resilient world. We recognize that the targets we are setting will be challenging, but will also bring new opportunities,” he added. “We will work closely with our market and customers to help them plan for these changes as we implement a long-term managed programme towards sustainable, responsible underwriting.” Lloyd’s ESG strategy includes a commitment to continue diversity and cultural change within the market, driven, in part, by setting regularly measured targets. These include a phase-one target of 35% female representation in leadership INSURANCEJOURNAL.COM

positions across the market (to be achieved by Dec. 31, 2023), and new targets for Black and Minority Ethnic representation in leadership positions to be announced in 2021. (Editor’s note: these cultural changes were first initiated in 2019, after reports surfaced in the press of rampant sexual harassment in the Lloyd’s market.) Additional ESG commitments set out in the report include the following: • A range of initiatives in support of the global transition to net zero, including the allocation of 5% of Lloyd’s Central Fund for impact investments by 2022. (Editor’s note: In order to meet the 1.5°C/7 °F long-term temperature target within the Paris Agreement on climate, global carbon emissions should reach net zero by mid-century.)

• Lloyd’s is setting a target for 2% of premium income to be derived from innovative and sustainable insurance products by 2022. • Lloyd’s will develop a new risk center, to be launched in 2021, and will undertake research into new insurance products to protect society from systemic risks, including climate risk. • Lloyd’s will publish a road map that will set out how the corporation will become net zero in its operations by 2025, and will work with the market to support its own implementation of net zero emission plans. • The report also sets out a range of existing and new initiatives in support of the global transition to net zero, including the allocation of 5% of Lloyd’s Central Fund for impact investments by 2022.

Social Inflation Lesson: Not Settling Cost Insurer Millions in Suit by Excess Insurer By Jim Sams

he defense team for Chubb Group’s Ace American Insurance Co. was confident that no jury would award more than $2 million in a wrongful death lawsuit filed by the family of Mark Braswell, who died on May 16, 2014, when his bicycle collided with a trailer behind a parked landscaping truck. After all, there was some evidence that the truck owned by the Brickman Group was legally parked along the road. Also, Braswell’s helmet was cracked down the middle and the injury was to the top of his head, indicating he had his head down at the time of the accident and wasn’t looking where he was going. Nevertheless, a Houston-area jury awarded about $28 million to Braswell’s widow, mother and two children. The family agreed to settle the case for less than $10 million to avoid an appeal, but that was still enough to blow through the $2 million in primary coverage available through Ace and eat up most of the $10 million in excess coverage available through a policy issued by American Guarantee and Liability Insurance Co. A December ruling by the U.S. 5th Circuit Court of Appeals makes Ace liable for the entire amount of the settlement and provides another lesson to insurers about the cost of social inflation. Under Texas law, a primary insurer can become responsible for damages far beyond the policy limits if it fails to protect an excess insurer by refusing to accept a reasonable settlement offer. The appellate panel found that Ace had violated its “Stower’s duty” — named after a 1929 Texas appellate court decision — in rejecting an offer by Braswell’s family to settle the case for $2 million. “Considering all the trial circumstances, an ‘ordinary and prudent insurer’ in Ace’s position would have realized that the ‘likelihood and degree’ of Brickman’s

continued on page 14

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News & Markets continued from page 13

‘potential exposure to an excess judgment’ had materially worsened since the trial’s inception,” Circuit Judge Edith H. Jones wrote for the three-judge panel, citing previous case law. According to a report in the Houston Chronicle, Braswell was a 43-year-old captain in the Houston Fire Department when he crashed into the trailer owned by Brickman, which is now known as BrightView. There were no witnesses, but an attorney for his widow and children told the newspaper that testimony indicated the truck had stopped abruptly and had dangerously parked on a busy four-lane road to unload equipment. The family sued Brickman for damages and made three settlement offers to Ace before and during the trial. In the final offer, Branswell’s family asked for $2 million, according to the 5th Circuit opinion. Ace’s counsel estimated the case was worth $1.25 to $2 million. A claims manager for the excess insurer, AGLIC, initially thought the case should settle for within the primary insurance limit of $2 million. The attorneys also conducted jury research and determined it would be important to prove that the Brickman truck did not stop abruptly in front of Braswell and was parked legally. Things did not go well for the insurers in Harris County District Court. The trial judge, S.K. Sandhill, was known to be “plaintiff friendly,” according to the circuit court’s opinion. Sandhill excluded evidence that the Brickman truck was parked legally. He also allowed the widow, Michelle Braswell, to testify that 14 | INSURANCE JOURNAL | JANUARY 11, 2021

a Brickman employee had told her the truck's driver had “stopped short” in front of her husband, though defense counsel objected that the statement was hearsay. Michelle was allowed to testify that the accident had caused severe psychological trauma to the couple’s daughter, who had attempted suicide and was admitted to a psychiatric hospital. Two former fire chiefs testified about Braswell’s commitment to service, bravery and love of family. He had once rescued a double amputee from a burning building. The jury heard testimony that the Brickman crew did not place safety cones around their vehicle while it was parked, despite a company policy. The driver of the truck gave inconsistent testimony about how long he had been parked. AGLIC’s case manager told Ace that because of the evidentiary rulings, a verdict in excess of $2 million was possible. A defense attorney suggested that Ace settle for that amount. Nevertheless, Ace refused when the Braswells, after the case went to the jury, offered to settle for $2 million. The jury found in favor of the Braswells and awarded damages of $39,960,000 million, but deducted 32% to reflect Mark Braswell’s share of liability for the accident. The family later accepted a settlement of $9,750,000 to avoid appeal. AGLIC paid $7,750,000 of that, plus $50,000 for a supersedeas bond to protect Brickman on appeal. AGLIC then sued Ace seeking to recoup that money. The U.S. District Court in Houston found in AGLIC’s favor and awarded AGLIC $7,935,034.33 in damages. Judge Keith P.

Ellison wrote in his findings and conclusions of law that Ace’s primary interest was to settle the case below the primary policy limits. He said the insurer rejected advice from experts who warned that most South Texas juries would be reluctant to find a fire captain at fault for such an accident. Ace said the evidence at trial “increased the known sympathy factor and attendant chance of large soft damages.” “A reasonable insurer would thus have determined that an offer at the top of the original range suggested by defense counsel was proper given the enhanced possibility of a verdict well above $2 million,” Ellison’s findings state. On appeal, the 5th Circuit panel rejected Ace’s arguments that it had no duty to accept the settlement offer because it was not clear if Michelle Braswell would equitably share the settlement with her children, a circumstance that in the past had persuaded some Texas courts to refuse to accept settlements. The court said Ace had failed to raise that “novel legal theory” at trial, so was barred from using it on appeal. “The evidence placed before the district court is sufficient to support that Ace violated its Stowers duty by failing to reevaluate the settlement value of the case and accept the Braswells’ reasonable offer,” the 5th Circuit’s decision concludes. The ruling is: American Guarantee and Liability Insurance Co. v ACE American Insurance Co.

Sams is editor of ClaimsJournal.com, where this article was originally published. INSURANCEJOURNAL.COM

News & Markets Directors & Officers Risk Landscape Shaped by Insolvencies, COVID, Activism

hile the COVID-19 pandemic presents risks for directors and officers (D&O), it is far from the only force these insureds and their insurers will be dealing with in the year ahead. Rising insolvency exposures, growing cybersecurity threats and persistent securities class action activity are among the other key risks where executives of companies could be held liable, according to a new report, Directors and Officers Insurance Insights 2021, from Allianz Global Corporate & Specialty (AGCS). In 2021, companies will also need to be on guard against “event-driven litigation” caused by inaction on diversity, poor sustainability performance or for underestimating or misrepresenting COVID-19 related risks. The report contends these factors will exacerbate an already-strained D&O insurance market. Growth in the number of lawsuits, as well as rising claims frequency and severity, has already resulted in a difficult environment for the D&O insurance sector in recent years. Underwriting results have been negative in many markets around the world, including Australia, the UK, the U.S.

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and parts of Europe. While the market was correcting itself at the beginning of 2020, it was then hit by the current pandemic and economic crisis. “Many insurers are still digesting the effect of previous pricing inadequacy and exposure and loss trend increases from prior-year policies,” says Shanil Williams, global head of Financial Lines at AGCS. “This is also at a time of great uncertainty around forward-looking exposure assessments, in particular the impact of COVID-19 on the economy in general and on specific industries.” Williams said these conditions, when combined with climate change, cyber risks or ESG (environmental, social or governance) factors, create a “lot of nervousness” in this sector.

Top Concerns

The sector will also be watching insolvencies, which are a key cause of D&O claims as insolvency administrators usually look to recoup losses from directors. According to Euler Hermes, the bulk of insolvencies is still to come through the first half of 2021, with its global insolvency index likely to hit a record high for bankruptcies, up 35% by end of 2021, and with

top increases expected in the U.S., Brazil, China and core European countries such as the UK, Italy, Belgium and France. “We expect markets to remain fragile in view of the recent extreme bullish reaction to positive COVID-19 vaccine news,” said David Van den Berghe, global head of Financial Institutions at AGCS. “Further, the tech war between the U.S. and China, and the end of the Brexit transition period, will remain top of mind as well, and adds to an overall high level of economic uncertainty.” Companies also face a constantly evolving landscape of cybersecurity threats as ransomware attacks and data breaches continue to be on the rise, while the shift to remote working due to COVID-19 is believed to have generally increased security vulnerabilities. Investors view cyber risk management and adequate security standards as a critical component of a board’s oversight responsibilities, the authors note.

Class Actions and COVID Cases

New U.S. securities class actions filings were pacing about 18% behind rates seen in 2019 during the first half of 2020,

continued on page 16

JANUARY 11, 2021 INSURANCE JOURNAL | 15

News & Markets continued from page 15 according to Cornerstone Research, largely due to the disruption of business and court activity caused by the pandemic. Nonetheless, the report says, the frequency of court filings is on track to match rates in 2017 and 2018 and will be well in excess of every year prior to those. The percentage of new filings in 2020 targeting foreign-domiciled, U.S.-listed companies has been nearly twice the average in recent years, with around half of these against Asia-domiciled companies. Outside of the U.S., securities class actions are being filed in record numbers and the threat of facing an action has increased in many jurisdictions, as highlighted in a recent AGCS and Clyde & Co report. New initial public offerings (IPO) dramatically increased as 2020 was coming to a close, suggesting the potential for a wave of new IPO-related securities litigation. Approximately 20% of U.S. IPOs launched between 2009 and 2018 gave rise to securities class action suits within four years of the offering. Shareholders have filed the first class action lawsuits directly related to COVID-19. These include suits against cruise ship lines that suffered COVID-19 outbreaks, as well as litigation regarding the business impact of the pandemic on companies’ financial performance or operations and misrepresentations about coronavirus-related therapies. Another threat looming on the horizon comes from the return-to-office steps taken by businesses. “Such decisions are fraught with peril, with regard to shareholder derivative actions, but also in relation to other forms of litigation stemming from employees or customers,” Williams warns. The report adds companies that are slower to recover from the pandemic

16 | INSURANCE JOURNAL | JANUARY 11, 2021

compared to their competitors could face litigation from shareholders and consumers claiming underperformance.

‘Current and future D&O underwriters need to be aware of ongoing global ESG matters — from activist investor campaigns to social justice protests or money laundering schemes — in order to adequately assess potential perils.’ ESG and Private Company Issues

Beyond financial performance and shareholder value, so-called “soft” management topics are increasingly triggering what is known as “event-driven litigation” against boards: diversity, climate change or ESG concerns are increasingly seen as opportunities to bring class actions or to force settlements. For example, Oracle, Facebook and Qualcomm are among the technology companies that have been subjected to diversity derivative lawsuits. In such cases, shareholders typically allege that directors violated their fiduciary duties by their inaction on diversity issues including remuneration or nomination of new black board directors. While the financial impact of such lawsuits remains to be seen, there will be legal defense costs involved in their settlement and this growing threat may further drive U.S. securities class actions, the authors warn. Also in the area of ESG, climate change, water management, biodiversity degradation, exploitation in supply chains and corporate governance are some of the topics companies and boards will be

expected to focus on in 2021 with regard to disclosure and internal risk management, according to the report. Corporates — particularly in Europe — and boards are increasingly being challenged by investors and stakeholders with climate change concerns and allegations that companies have failed to adjust business practices in line with changing climate conditions. “Current and future D&O underwriters need to be aware of ongoing global ESG matters — from activist investor campaigns to social justice protests or money laundering schemes — in order to adequately assess potential perils,” notes Joana Moniz, global head of Commercial Financial Lines at AGCS, in the report. “Ultimately, underwriters must assess how these matters may develop into a litigation trend and/ or impact a company’s risk management practices.” While publicly listed companies are generally more highly exposed to D&O risks, the situation of private companies also is aggravating and, the report contends, often understated. While the majority of private company lawsuits are employee-related matters, a private company’s officers can also be sued over the sale of a company, anti-trust claims or regulatory actions, including securities regulations for alleged misrepresentations to prospective investors and others. The report notes that the COVID-19 pandemic is currently placing private companies and their executives under considerably higher litigation risk. D&Os of privately held companies are typically closely involved in business decisions, which can become even more challenging than usual in a crisis environment such as COVID-19. The business decisions will also have a long-term impact on these organizations, according to the report.

INSURANCEJOURNAL.COM

Special Report: Employment Practices

By Andrea Wells

verall trends for the past 30 years in the employment practices liability insurance market have been influenced by society and culture. As concerns over racial and disability discrimination, sexual harassment, gender inequality, wage-and-hour enforcement, and now COVID ebb and flow, EPLI responds. Jordan Kurkowski, vice president and professional lines broker with AmWINS Brokerage in Grand Rapids, Mich., believes an employer’s risk today is heightened by both increased public intolerance for harassment and instant, worldwide distribution of news through social media. “This year has been a whammy of layoffs, severance packages, furloughs along with the riots of Black Lives Matter and the #MeToo movement,” Kurkowski said. “It’s an underwriter’s nightmare.” EPLI claims often follow large changes 18 | INSURANCE JOURNAL | JANUARY 11, 2021

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in workforce, including reductions, promotions and demotions. “There is more of that happening during this time period with massive unrest in our country,” he said. “We’ve seen political and religious beliefs trigger some of these claims, too.” Now the COVID vaccine and potential vaccine mandates will add a new element. While it’s too early to know the full impact on the EPLI line, Kurkowski said, “it’s an interesting time in this space.” Employers are now facing the second wave of risk management concerns related to COVID. “Initially, prior to the vaccine, the insurance industry was concerned about employers making the decision on whether or not to force people to come into work, or if they sent employees home, who do you bring back or who do you furlough?” according to Alan D. Goodrich, of HMK Insurance, an Alera Group company based in Bethlehem, Pa. Furloughs and layoffs often bring risks of wrongful termination and employment practices litigation, he added. While these concerns remain, Goodrich said, COVID is ushering in a new round of employment related risks as the vaccine becomes available to the broader population. The questions now revolves around what should employers do? “Can they require them? Or should they encourage people to get them? And what happens if certain groups refuse to take the vaccine?” asks Goodrich. “These are all things that employers are wrestling with and I think the long-term effects of COVID as it relates INSURANCEJOURNAL.COM

to insurance issues, including employment practices, has yet to be written.” While the recently released guidance from the Equal Employment Opportunity Commission (EEOC) does say that employers can mandate the COVID vaccine, there are other possible scenarios to consider. The EEOC’s current guidance on the responsibilities and rights of employers and employees related to the COVID-19 vaccine, including cases where employers require employees to be vaccinated, states that if an employee cannot get vaccinated for COVID-19 because of a disability or a “sincerely held religious belief, practice, or observance,” and there is no “reasonable accommodation” possible, then it would be lawful for the employer to exclude the employee from the workplace. However, this does not mean the employer may automatically terminate the worker. Employers will need to determine if any other rights apply under the equal employment laws or other federal, state, and local authorities. The EEOC guidelines are not necessarily the final word because they do not analyze other federal laws or other federal rules that might reach another conclusion, according to Wade E. Ballard, attorney and certified specialist, employment and labor law at Ford Harrison LLP in Spartanburg, S.C. It is also unclear whether employers should mandate a COVID vaccine given the Food and Drug Administration’s current position on emergency use authorization. “That very well could change

in the coming months when there’s been final approval of the vaccine, but right now, you have uncertainty,” said Rachel Ziolkowski Ullrich, also an attorney specializing in Labor & Employment Law who is part of Ford Harrison’s Coronavirus Taskforce.

‘This year has been a whammy of layoffs, severance packages, furloughs along with the riots of Black Lives Matter and the #MeToo movement. It’s an underwriter’s nightmare.’ Employers will need to work through the process set forth by the EEOC’s guidance, but the question remains whether an employer can or should mandate at this juncture, she said. From an EPLI perspective, Ullrich expects to see an uptick in vaccine-related claims for disability or religious discrimination, resulting from allegations of an employer’s failure to accommodate when employees refuse to take the vaccine. “At this point, I think it’s going to be very important for employers to start training their supervisors on how to handle accommodation requests,” Ullrich said. Rick Warren, partner at Ford Harrison who specializes labor and employment law and serves on the firm’s Coronavirus Taskforce, expects that the insurance industry will continue to see OSHA-related complaints against employers. Warren said he has been handling dozens of OSHA complaints against employers,

many of them in the healthcare industry, but not exclusively. The complaints alleged the failure of employers to provide a safe and healthy work environment under the general duty clause of OSHA, or alleged violations of specific OSHA standards. “Whether such claims are covered by EPLI, I suppose depends on the policy itself but there have been thousands of OSHA or state OSHA complaints filed nationwide this year dealing with COVID and alleging unsafe working conditions,” Warren said.

Reasonable Accommodation

According to Ballard, one question that will be asked is: Can employers accommodate? He says the same issue arises every year with the flu and hospitals that decide to mandate the flu vaccine. “Our hospital clients get all sorts of religious requests for exemption,” he said. To make accommodations, most facilities will allow workers to continue working by mandating the use of a mask, he added. Ullrich believes that another question employers might face is why they can’t provide accommodations for those employees unwilling or unable to get a vaccine. “We’ve spent the last eight months making accommodations — masking, social distancing, hand-washing and working from home,” she said. So why isn’t that same protocol a reasonable accommodation now? “Or if the job can be done remotely, why not allow, as a reasonable accommodation, someone to continue to work from home since you’ve allowed them to work from

continued on page 20

JANUARY 11, 2021 INSURANCE JOURNAL | 19

Special Report: Employment Practices continued from page 19 home thus far?” Warren asked. If employers decide not to mandate COVID vaccines for employees could they face additional risk? According to Warren, if employers follow guidance from governmental health agencies, whether they decide to mandate or not, there should not be additional exposure. However, if the guidance is that employers can now safely mandate COVID vaccines and they choose not to, then that may be a different story, he said. “The flip side of that is if you mandate the vaccine and someone has a severe reaction, that very well could be covered by workers’ compensation,” he said, adding that much will depend on the individual state’s workers’ comp system.

Employer Steps

What can employers do to protect themselves? “Start looking at your accommodations policy and start training your employees and your managers on how to handle accommodations, either religious or disability requests when it comes to the vaccination,” advised Ullrich. If an employer mandates that employees be vaccinated, then it is important to also have employees sign a “carefully drafted consent form,” Ballard said. Ullrich said employers should make sure consents

forms are written in the language spoken most often by the employee so that the employee understands their consent. Ballard also suggested employers may want to create incentives for employees to get vaccinated. “You can provide some financial benefit or incentive to people, give them a paid day off [to get the vaccine] or provide a small bonus. If there is a way to provide incentives, employers can do that to get people to take vaccines,” he said.

Insurance Market Trends

In the view of AmWINS’ Kurkowski, EPLI claims stemming from the pandemic are blending. “For example, someone is let go or demoted and then we have a retaliation claim on top of discrimination or harassment,” he said. That might be age discrimination related, which is the leader in EPLI claims, he said. “These private companies that I look at every day, they can hire a

25-something for half the cost of their 55-year-old,” he said. “That happens.” Market conditions in the EPLI segment are hardening even more than just a year ago, according to AmWINS’ “Employment Practices Liability: #whatstrending” report written by Kurkowski. Today, EPLI rates are increasing anywhere from 10% to 50% for many classes of business. Steeper increases are seen in problematic classes, such as healthcare and hospitality, as well as problematic states, such as Florida, Illinois, New York, and Texas. California, in particular, has seen significant hardening, with some underwriters increasing retentions dramatically in the state or pulling out of the market altogether. “Clearly, folks are way more conservative with restaurants, hospitality, transportation, anything that’s really been impacted by the lockdown,” Kurkowski said. “We saw a three-month period when COVID started, where people froze their books and were not writing anything new.”

‘Start looking at your accommodations policy and start training your employees and your managers on how to handle accommodations, either religious or disability requests when it comes to the vaccination.’ Changed Market

Two or three years ago, many EPLI accounts were still seeing zero retentions and very low premiums, according to Kurkowski. Today the market is seeing $10,000, $25,000 retentions and that is continuing to creep up. That’s in addition to the much higher rate environment today. He believes these trends are a combination of COVID along with #MeToo and he believes the EPLI market is also influenced by what is happening in the directors and officers liability market. He noted that EPL coverage is packaged with D&O, which is the “hardest piece to write right now in the management liability package.” “When you talk to underwriters, they predict 2021 will be a tough year economically with a lot of bankruptcies, so that triggers D&O. And if they are writing EPLI, fiduciary and crime, too,

it’s going to trigger the EPLI because there’s going to be layoffs,” he said. “And when people get desperate, there is more employee theft that happens.” When taking a holistic view of the EPLI market it’s important to have a conversation about those other lines of business as well, he noted. Kurkowski sees underwriters asking “COVID questions” at renewals. “If there were layoffs, how many people? Were lawyers consulted? Were there severance packages offered? Did you hire the people back? How many people? All of that stuff.” In his view, EPLI carriers don’t seem to be exiting the market entirely but instead are exiting certain classes of business. There were other markets shying away from new EPLI business, too, he said. If there’s a deep recession this year as some carriers are forecasting, things will harden even further. He sees the EPL market dependent upon what happens with D&O and the economy. “I see a D&O hard market for the next three to five years and I would put EPLI in the two to four year hard market bucket,” he said. There are other coverage trends. On the management liability package, Kurkowski says there will be first party liability but that normally does not extend to third party. “It’s not going to have the wage and hour, or privacy violation,” he said. Another coverage trend: the immigration investigation extension. “It’s going to be a very bland third-party liability piece and, the coverage piece isn’t going INSURANCEJOURNAL.COM

to go really past discrimination or harassment, and it may even be more restrictive than that,” he said. Manny Cho, executive vice president for Executive Lines, at RPS, agrees there’s tighter underwriting. But while there has been talk about COVID exclusions or pandemic exclusions that so far hasn’t happened. “What we saw is actually underwriters going back to underwriting,” he said. “COVID questions and hire or rehire questions and I’m sure there will be some questions coming around the vaccines, and thoughts about reopening in 2021 because that’s clearly going to be the biggest potential exposure.” He agrees that underwriting will continue to be tied heavily to D&O as underwriters on EPL risks want to understand the financial stability of companies before they’ll put out quotes. “It’s definitely changing and I think 2021, with all lines of business, there’ll be a lot more underwriting, especially in the higher hit classes of business such as hospitality, restaurants, and the travel industry,” he said. EPLI has been one of the “harder markets” this year, he added. “We anticipate 2021 to be continue its harder market trend with increasing retentions in more volatile areas.” Despite those conditions, there’s still interest in EPLI from new underwriters, according to Cho. “We have seen a couple new carriers come into the market, which is interesting,” he said. That means that rates are probably where they should be, he added. “Or at the very least projected to be pretty good.”

Rates, Retentions Up in Employment Practices Liability Market: Report

n its annual survey of the employment practices liability insurance (EPLI) market, The Betterley Report found that rates are continuing their trend upward, in part because commercial rates in general are on the rise but more specifically thanks to COVID-19 and ongoing #MeToo concerns. The report is published by Richard Betterley, president of Betterley Risk Consultants Inc. “Compared to 2019, we see the rate increases accelerating and much more widespread retention increases,” Betterley said. Of the 20 EPLI carriers responding to the survey, 15 reported rate increases for the line ranging from 5% to 35%. The other five insurers surveyed for the report did not report on their rate trends. Betterley said that increases are sometimes across the board but increasingly they are a function of the insured’s characteristics. “Increases may be more likely in certain jurisdictions, industry classes, size, and mass claims exposures,” he said in the report. “This, of course, makes sense, as these characteristics already affect their rates and retentions. What we are seeing more recently is that these characteristics are playing a bigger role for insureds that share one or more of these characteristics.” EPLI has been a mature market for many years, with growth averaging 10.2% over the last four years in the United States, according to the report. The volume of business (gross written premium) for 2019 was $2.9 billion by MarketStance’s most recent estimates that cite steady employment growth in the United States, modest increases in take-up rates, and recent upward rate pressure for the growth. MarketStance foresees annual premium rising above $3.1 billion due to firm rate trends and increased middle-market penetration, with the majority of premium growth occurring in 2021 as COVID-19-related economic headwinds abate. One disappointing trend, according to Betterley, is EPLI insurers seem less willing, or able, to offer robust preventative value-added services. Perhaps a bit healthier profit margin might make it easier to keep providing them, he said. He said preventative services have moved more to a self-service format, rather than with actual risk management vendors. “I’m saddened by that because self-service isn’t always effective,” he said. “There’s nothing wrong with online training, as long as it’s done right. As opposed to here’s some stuff you can read it if you want.” The “Employment Practices Liability Insurance Market Survey” by The Betterley Report was first published in the mid-1990s. JANUARY 11, 2021 INSURANCE JOURNAL | 21

People National

Regine Fiddler has been

appointed as chief marketing officer for insurer Hiscox in the U.S. Fiddler, who previously served as the chief marketing officer and head of Product at BankMobile, will report to and succeed Russ Findlay, who was promoted to the role of group chief marketing officer earlier this year. Fiddler will be based in New York. Prior to working at BankMobile, Fiddler served as vice president of Product Development and Brand Management at Higher One before it was acquired by BankMobile. She started her career at Newell Rubbermaid, a consumer packaged goods company.

Arch Insurance North America

Stephen Ruschak announced that Stephen Ruschak has been hired as executive vice president of Surety. Ruschak most recently was CEO of The Guarantee Company of North America. In this role, Ruschak will have responsibility for Arch’s Surety business and will report to Rich Stock, chief underwriting officer for Large Account Casualty, Surety, and Warranty/Lender Solutions for Arch Insurance North America. Arch Insurance North America, part of Bermudabased Arch Capital Group Ltd., includes Arch’s insurance operations in the U.S. and Canada.

East

Johnstone Partners has

expanded its national risk management and claims adjusting practices with the hire of Andrew Friedman in New York. Friedman joins Johnstone Partners as an adjuster with six years of claims experience. He will bring his expertise to client matters related to recall/contamination, product liability, event cancellation, film and entertainment and all other complex claims. He joins a team led by Bill Johnstone, who has worked as an executive in international claims management for three decades and established Johnstone Partners in 2015. Johnstone Partners, a boutique claims adjusting firm, specializes in product recall/ contamination, product liability, film and entertainment, event cancellation, political risk, errors and omissions/ directors and officers and third party administrator services.

James Reiss has been appointed as president of International Bond & Marine Brokerage Ltd. (IB&M), a

brokerage providing risk management solutions to the international trade industry. The brokerage was recently acquired by Intact Insurance Specialty Solutions, a brand of Intact Financial Corporation. In his new role, Reiss will now report to Peter Weightman, senior vice president and chief underwriting officer of Specialty Solutions, North America. Reiss brings more than 15 years of experience to his role as president, including 10 years at IB&M. Most recently, he served as the company’s controller and vice president of Finance and previously led the IB&M

22 | INSURANCE JOURNAL | JANUARY 11, 2021

marine and sales operations. Throughout the U.S., Intact Insurance Specialty Solutions’ underwriting companies offer a range of specialty insurance products through independent agencies, regional and national brokers, wholesalers and managing general agencies. Each business is managed by a team of specialty insurance professionals focused on a specific customer group or industry segment. Targeted solutions include group accident and health, commercial and contract surety, entertainment, environmental, excess property, financial institutions, financial services, inland marine, management liability, ocean marine, public entities, technology and tuition refund.

Southeast

Clearwater, Fla.-based technology and product distribution company Ensurem has hired Jamie Needham as chief marketing officer (CMO). As CMO, Needham is responsible for the vision, strategic direction and performance of all Ensurem marketing and communication activities. With experience spanning insurance, financial services and telecommunications industries, her expertise includes leading business and brand strategy, strategic communications, integrated, multi-channel marketing and media, digital monetization and web analytics. Needham is a marketing and communications executive with a history of developing and leading strategies and teams for Fortune 500 organizations and international brands operating in regulated industries. Before Ensurem, Needham

held marketing and communications roles with H&R Block, Sprint (T-Mobile), Assurant and American Century Investments.

The Tennessee Department of Commerce & Insurance (TDCI) has promoted

Jonathan Habart to

Jonathan Habart

the role of Captive Insurance Section assistant director. As a TDCI team member since 2016, Habart recently served as a TDCI Captive Insurance specialist, which included work monitoring, analyzing and examining the financial status and regulatory compliance of captive insurance companies, among other duties. Captive insurance is an option for companies to self-insure certain aspects of their business. The captive insurance sector has an estimated economic impact in Tennessee of $31 million in direct annual spending and employs more than 100 fulltime professionals, according to a TDCI press release. Habart has been employed by the state of Tennessee since 2014 when he worked as an accountant for the Tennessee Department of Finance & Administration. His previous experience included working for Gaylord Opryland Resort and Convention Center.

South Central

Innovative Risk Management (IRM), a specialty program management firm based in Dallas and established in 1991, has added four new partners.

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Chris Lovisone has held the role of chief operating officer since 2014. Brian Ricci has been the director of Marketing since 2011. Lisa Hamman joined IRM in 1992 and currently serves as vice president of Operations. Jeff Bromberg has been IRM’s general counsel since 2010. These four join the ownership team with IRM’s founder, president and CEO, Stuart Stagner. IRM administers both captive and specialty insurance programs from its headquarters in Dallas.

Midwest

SECURA Insurance, based in

Neenah, Wis., promoted five company leaders: Amy DeHart, senior vice president and chief actuary; Dan Ferris, chief legal Amy DeHart officer; Tripp Humston, regional vice president of Sales; Tim O’Brien, vice Dan Ferris president and controller; and Brett Purcell, regional vice president of Sales. Tim O’Brien DeHart joined SECURA’s actuarial team in 2000 as an actuarial Tripp Humston consultant. In 2013, she was promoted to vice president-Actuarial services before Brett Purcell taking on her current role as vice president and INSURANCEJOURNAL.COM

chief actuary in 2018 where she oversees the company’s pricing, reserving, strategic planning, enterprise services and related functions. Prior to joining SECURA, DeHart worked as an actuary for John Deere Transportation Insurance, a specialty writer of long-haul trucking. Ferris joined SECURA in 1990 as the corporate attorney. In 1996, he also assumed the role of SECURA’s assistant secretary. In 2006, Ferris was named vice president and general counsel, and he assumed the role of corporate secretary in 2011. Before joining SECURA, Ferris was a partner at a law firm in Washington, D.C. Humston joined SECURA in 2014 as a market manager before becoming regional sales director for Indiana, Kentucky and Michigan in 2018. Prior to joining SECURA, he worked for Liberty Mutual as a territory manager for 10 years. O’Brien joined SECURA in 2002 as an accounting manager and has held various roles in finance, including his most recent position as controller. Prior to joining SECURA, O’Brien worked for Midwest Security Insurance and Engelson and Associates. Purcell joined SECURA in 2012. In 2018, he was promoted to director of Sales, where he oversees a team of sales managers in Arizona, Colorado, Kansas and Missouri. Prior to SECURA, he worked for State Auto Mutual Insurance and Universal North America Insurance Co. The promotions are effective Jan. 4, 2021.

and CEO, effective Jan. 1, 2021. Rawlins will succeed current President and CEO Matt Moore, who will retire in June 2021. Upon Mr. Moore’s retirement, Rawlins will lead Shelter Mutual as well as each of its subsidiary and affiliate companies. Paul LaRose has been promoted to executive vice president at Shelter, and Stacye Smith has been named vice president of Shelter’s Human Resources Operations. Both appointments are effective Jan. 1, 2021. Rawlins began her career at She lter 2002 as general counsel. She assumed the role of secretary of Shelter and its board of directors in 2006 before being promoted to senior vice president in 2016. In 2018, she was promoted to her current role as executive vice president and became a member of Shelter’s board of directors. LaRose began his Shelter career in 1990 as a corporate attorney in the law department, where he advanced to associate general counsel before assuming his current role as vice president of Shelter’s Human Resources operations in 2012. Smith began her Shelter career in 1987 and has held several positions in Underwriting, Training, and Human Resources. She has been in management since 2005, where she has held the positions of manager of Sales Training, Human Resource Programs and Human Resources. On Jan. 1, 2020, she became Shelter’s first director of Inclusion and Engagement.

Shelter Insurance, based

West

in Columbia, Mo., appointed Randa Rawlins as president

La Jolla, Calif.-based Palomar Holdings Inc. has

named Angela Grant as chief legal officer. Grant will oversee all in-house and corporate counsel duties and will play a role in regulatory, compliance and strategic matters. She has more than 30 years of operational and legal experience in the insurance industry. Grant most recently served as chief legal and innovation officer at CSE Insurance Group. She was head of compliance and legal at Hippo Insurance before that. Her past leadership roles include roles at Esurance, Kemper and GEICO.

Insurance Office of America has added Mike Riggs as a

commercial property/casualty risk advisor specializing in the agriculture and food industries. Riggs joins IOA’s team in its Western region, serving out of the Pleasanton branch location. Before joining IOA, he was a principal at Newfront Insurance. He has more than 25 years of agriculture and food industry risk management and insurance experience. Lockton Pacific has added Dan Urias as a vice president and producer to grow its commercial insurance presence in the Orange County and Inland Empire regions of Southern California. Urias is part of Lockton’s Pacific region, which encompasses eight offices throughout the Western U.S. Urias is based in Lockton’s Irvine office. Urias was most recently a producer at Marsh & McLennan Agency–West, where he led the construction practice group in Orange County and Los Angeles. Lockton is a privately held insurance brokerage headquartered in Kansas City, Mo.

JANUARY 11, 2021 INSURANCE JOURNAL | 23

Business Moves

East

World Insurance Associates, DanaherSkewes & Associates, Fairways Insurance

World Insurance Associates LLC has acquired Danaher-Skewes & Associates Inc. of Manassas, Va., on Nov. 1, 2020. Established in 1963, Danaher-Skewes is an independent insurance agency, serving residents and businesses in Alexandria, Va., Manassas, Va., Fredericksburg, Va., and surrounding areas. In a separate transaction, WIA acquired Fairways Insurance Inc. of Cinnaminson, N.J., on November 1, 2020. Fairways is a full-service insurance agency serving clients throughout New Jersey, Pennsylvania and Delaware. WIA is headquartered in Tinton Falls, N.J., and is a full-service insurance brokerage providing asset and lifestyle protection with risk management, insurance and benefit consulting services for individuals and businesses. Since its founding in 2012, WIA has completed 81 acquisitions and serves its customers from 72 offices in 15 states and Washington, D.C.

Hudson Insurance Group, Allegheny Group

Specialty insurer Hudson Insurance Group has agreed to acquire the Allegheny Group Inc. and its subsidiaries from its private shareholders. Hudson, by acquiring Pennsylvaniabased AGI, will own Allegheny Surety Co., a Pennsylvania insurance company, and Allegheny Surety Agency, the affiliated managing agency. Allegheny Surety serves independent agents in the mid-Atlantic 24 | INSURANCE JOURNAL | JANUARY 11, 2021

region. Pending the approval of the Pennsylvania Insurance Department and other regulatory approvals, the acquisition is expected to close within the next 60 days. AGIâ&#x20AC;&#x2122;s management team and key employees will join Hudson and continue to operate out of Pittsburgh and Philadelphia offices, reporting to Andrew Dickson, senior vice president and head of Hudson Surety. Paul Read, chairman and CEO of AGI, said joining with Hudson will allow AGI to expand its reach beyond Pennsylvania as well as better serve its existing clients. Headquartered in New York City with offices throughout the U.S. and in Vancouver, Canada, Hudson underwrites specialty primary and excess insurance on both an admitted and non-admitted basis. Hudson Insurance Group is the U.S. insurance division of Odyssey Group Holdings, which is owned by Fairfax Financial Holdings. AGI serves as an insurance holding company, with its headquarters in Pittsburgh. Allegheny Surety Co. and Allegheny Surety Agency are wholly-owned subsidiaries of AGI.

Arthur J. Gallagher & Co., Warner Benefits

Arthur J. Gallagher & Co. has acquired Wayne, Penn.-based JP Warner Associates Inc., doing business as Warner Benefits. Founded in 1997, JP Warner Associates is a traditional employee benefits consultant with offices in Wayne and Lehigh Valley,

Penn. The team offers group benefit plan and human resource consulting services, as well as individual coverages, primarily to clients across Philadelphia suburbs and the Lehigh Valley region. Jonathan P. Warner and his team in Wayne will continue to operate from their current locations under the direction of Tom Belmont Jr., head of Gallagherâ&#x20AC;&#x2122;s Atlantic region employee benefit consulting and brokerage operations. Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Ill. The company has operations in 49 countries and offers client-service capabilities in more than 150 countries around the world through a network of correspondent brokers and consultants.

Midwest

Oswald Cos., RCM&D, Unison Risk Advisors

Oswald Companies, based in Cleveland, Ohio, and RCM&D, headquartered in Towson, Md., have agreed to strategically merge and launch Unison Risk Advisors. Both firms will maintain independent brands, operations and management, while merging under the umbrella of Unison Risk Advisors, doing business as The JBO Holding Co., to expand service capabilities and specialty practice areas. Oswald Companies, founded in 1893, is independent and employee owned. Independent and privately held RCM&D was founded in 1885. With the merger, Unison Risk Advisors will be 100% employee owned and will rank among the 30 largest brokerage firms. It will feature a combined workforce of more than 650 employee owners in 12 office locations throughout the MidAtlantic and Midwest. Oswald and RCM&D serve clients in the core service areas of employee benefits and health insurance, risk management, commercial property/casualty insurance, personal and life insurance and retirement plan services. Robert J. Klonk is chairman and CEO of the Oswald Companies. Bob Cawley is INSURANCEJOURNAL.COM

president and CEO of RCM&D. Both are active leaders of Assurex Global, a partnership of insurance agents and brokers, and the Council of Insurance Agents and Brokers.

Alera Group, Todd Associates

Alera Group, an employee benefits, property/casualty, retirement services and wealth management firm based in Deerfield, Ill., has acquired Todd Associates Inc., headquartered in Beachwood, Ohio. Todd Associates, founded in 1939 and operated by Ned Hyland since 1978, also has an office in Port St. Lucie, Fla. The firm provides property/casualty, professional and management liability and employee benefits products and services, with specific expertise in financial institutions, public entities, construction, manufacturing and real estate. The Todd Associates team will continue serving clients in their existing roles.

South Central

DOXA, Marine Underwriters of America

DOXA Insurance Holdings LLC has acquired Conroe, Texas-based Marine Underwriters of America, a niche agency serving the marine industry with specialized insurance policies for ocean marine, inland marine and related property for commercial and recreational marine customers. Marine Underwriters of America will continue its operations under the leadership of President Mike Hartley and his staff from the company’s home in Conroe. The company will retain the Marine Underwriters of America name. DOXA Insurance Holdings, a holding company that acquires specialty niche-focused insurance distribution companies such as managing general agencies, wholesale brokers, and program administrators, is headquartered in Fort Wayne, Ind. MarshBerry served as financial advisor to MUA on this transaction.

Hull & Company, South & Western

Hull & Company LLC, a subsidiary of Brown & Brown Inc., has acquired substanINSURANCEJOURNAL.COM

tially all the assets of Addison, Texas-based South & Western Inc. and all issued and outstanding shares of its affiliate, S&W Premium Finance Company Inc. With roots dating back to 1974, South & Western is a managing general agency for retail insurance agents placing insurance for businesses and individuals primarily in Texas, Arkansas, Louisiana, Mississippi, Oklahoma and Tennessee. The firm specializes in personal lines, farm and ranch/agribusiness, commercial transportation, and specialty commercial property/casualty insurance products. South & Western also offers insurance premium financing through S&W Premium Finance Company. Following the transaction, the South & Western team will continue doing business under the leadership of JJ Horan from their Addison, Texas, and Memphis, Tenn., locations as a new stand-alone operation within Brown & Brown’s Wholesale Brokerage Segment.

Arthur J. Gallagher, PIATX

Arthur J. Gallagher & Co. has acquired San Antonio-based employee benefits broker PIATX LLC. Founded in 2009, PIATX is an employee benefits broker and consultant focused on delivering responsive and innovative coverages and services to businesses across Texas. The team will add to Gallagher’s existing benefits capabilities in San Antonio and expand its footprint in the Texas small group benefits space. Edward King and his associates will relocate to Gallagher’s existing San Antonio office, led by Walter Sprang, under the direction of Robby White, head of Gallagher’s South Central region employee benefits consulting and brokerage operations. Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Ill. The company has operations in 49 countries and offers client-service capabilities in more than 150 countries around the world through a network of correspondent brokers and consultants.

Southeast

Oakbridge Insurance Agency

Four retail insurance brokers – Founders Insurance, Hutchinson Traylor Insurance, McGinty-Gordon & Associates, and Waites & Foshee – have signed definitive agreements to combine to form Oakbridge Insurance Agency LLC, a new insurance brokerage firm serving clients across Georgia and the Southeast U.S. As part of the transaction, Corsair Capital LLC, a private equity firm focused on business and financial services, has made a strategic investment in Oakbridge. Robert C. Smith, a veteran insurance executive with experience holding senior leadership roles at firms including Hamilton Dorsey Alston in Atlanta, MHBT in Dallas, and Reagan Consulting, will become CEO of the newly created agency. Oakbridge plans to grow organically through investments in new talent, client-focused infrastructure and through strategic acquisitions. Oakbridge sees future expansion opportunities in the Southeast through the strategic and geographic growth of each firm’s specialty practices, as well as by attracting similarly cultured firms committed to broadening their businesses and capabilities. Oakbridge’s approximately 175 employees will work across 15 existing office locations throughout the state of Georgia. Each firm will maintain its current trade names and branding and will operate under the umbrella brand of Oakbridge Insurance Agency LLC upon the close of the transaction. Hutchinson Traylor, based in LaGrange, Ga., is a regional provider of risk management, insurance services, and employee benefits services to clients throughout the Southeast, operating from seven offices throughout the state of Georgia. Established in 1969, Waites & Foshee Insurance Group serves the state of Georgia with eight offices throughout the state. McGinty-Gordon & Associates specializes in property and casualty coverages for families and businesses with a specialty in hard-to-place properties that have coastal exposures.

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Business Moves continued from page 25 Founders Insurance is headquartered in Woodstock, Ga., and serves clients throughout Georgia and the southeast. Marsh, Berry & Company, Inc. acted as financial advisor to the four agencies in the transaction and Maynard, Cooper & Gale, P.C. acted as legal advisor. Dowling Hales acted as financial advisor to Corsair Capital and Simpson Thacher & Bartlett LLP and Chapman & Cutler LLP acted as legal advisor. Founded in 1981, MarshBerry serves the insurance brokerage industry, including insurance agents and brokers, specialty distributors, private equity firms, banks and credit unions and insurance carriers, through industry-specific services that include: merger and acquisition advisory, debt and equity capital raising, organic growth consulting, intellectual capital and connect–peer exchange network.

The Hilb Group, Plan Benefit Services

The Hilb Group, LLC has acquired South Carolina-based Plan Benefit Services Inc. The transaction became effective on Dec. 1, 2020. Plan Benefit Services Inc. is an employee benefits consulting, management and brokerage firm independently owned and operated since 1986. As a part of the transaction, Branford Armstrong and the PBSI associates will join THG’s Southeast operations and continue to work out of their existing location in West Columbia, S.C. The Hilb Group is a property and casualty and employee benefits insurance brokerage and advisory firm headquartered in Richmond, Va. THG is a portfolio company of The Carlyle Group, a global investment firm. The company has more than 100 offices in 20 states.

BKS-Partners, Tanner, Ballew & Maloof

Baldwin Krystyn Sherman Partners LLC, the middle-market indirect subsidiary of BRP Group, has entered into an agreement to acquire substantially all assets of Tanner, Ballew & Maloof Inc., an Atlanta, Ga.-based provider of commercial property/casualty insurance to middle market companies and individuals. 26 | INSURANCE JOURNAL | JANUARY 11, 2021

The partnership, BRP Group’s nomenclature for a strategic acquisition, is expected to significantly bolster BRP Group’s presence in the Atlanta market. TBM specializes in commercial insurance and has a 28-year history. TBM’s industry specialization is in the multi-family real estate industry, while also providing insurance and risk expertise to the broader middle market, including the technology, real estate, hospitality, private equity, manufacturing and distribution industries. According to John Valentine, chief partnership officer of BRP Group, the acquisition of TBM boosts its P&C and risk capabilities, particularly in multi-family, and gives it an opportunity to provide complementary employee benefit and professional risk management solutions to the Atlanta market. Reagan Consulting Inc. and its wholly-owned subsidiary, Reagan Securities, Inc. acted as financial advisor to TBM in the transaction. BRP Group Inc. is an independent insurance distribution firm delivering tailored insurance and risk management products.

Constellation Affiliated Partners, Coastal Insurance Underwriters, Cybercom Constellation Affiliated Partners has acquired Florida-based MGU Coastal Insurance Underwriters and Cybercom. Coastal Insurance Underwriters, founded by President and CEO Charles Bushong in 2007, is an insurance program administrator providing products to the community association marketplace. Coastal underwrites property, general liability, crime, directors and officers, golf and country club, equipment breakdown, workers’ compensation, inland marine, umbrella, small business and private flood insurance products. Coastal currently underwrites insurance in Florida, California, Alabama, Texas, Georgia, Kentucky, and Tennessee. Coastal, based in Ponte Vedra Beach, Fla., currently insurers 8,000 homeowners and condominium associations. Cybercom currently provides technology development services to Coastal and third-party clients throughout the country.

Coastal acquired the assets of Cybercom on January 2, 2020. According to Bushong, being part of the Constellation portfolio of companies will help it continue to grow and diversify its programs, as well as expand its footprint throughout the U.S. Through the acquisition of Coastal and Cybercom, Constellation will continue to expand its product offerings to the condominium association and homeowner’s association marketplace. Bill Goldstein, CEO of Constellation, said the new business classes complement its existing programs and will provide increased product access to clients. Additionally, Constellation will utilize the web-based platform designed by the team at Coastal subsidiary company Cybercom. The tool quotes, underwrites, binds and issues insurance policies to agents in real-time, Bushong said. Constellation Affiliated Partners is a New York-based insurance consolidator platform that specializes in acquiring MGA, program administrator and wholesale companies in the U.S. and Canada. Constellation is backed by RedBird Capital Partners, a private investment firm focused on building high-growth companies with flexible, long-term capital.

West

Sompo, W. Brown & Associates

Sompo International Holdings Ltd. has acquired W. Brown & Associates Insurance Services in Irvine, Calif. Brown has been a managing general underwriter for Sompo International since 2016. The W. Brown operations will remain intact, leveraging the MGU’s management and underwriting expertise, distribution platform and service capabilities. W. Brown will become a wholly owned subsidiary of Sompo International. Sompo International is a Bermudabased specialty provider of property/ casualty insurance and reinsurance. Brown provides general aviation insurance products and services for both airborne and ground based exposures. INSURANCEJOURNAL.COM

My New Markets Professional & Management Liability

Market Detail: Worldwide Facilities (www.

wwfi.com) specializes in management and professional liability coverage. Coverage is available for D&O, EPL, crime, fiduciary, management liability, executive liability, public company D&O, nonprofit D&O, healthcare D&O, professional liability, architects & engineers, lawyers, real estate agents E&O, title agents E&O, insurance agents & brokers, consultants, construction managers, cyber, technology and more. Available limits: As needed Carrier: Unable to disclose States: All states Contact: Shane White at 678-502-1277 or e-mail: swhite@wwfi.com

Multiple Level LTC Campus Professional and General Liability Insurance

Market Detail: Magnolia LTC Management

Services (www.magnolialtc.com) is the exclusive program manager and responsible for the daily operations of Continuing Care Risk Retention Group (CCRRG), a mutual insurance company that offers PL & GL Insurance for LTC facilities. This is a member owned program with broad coverage and competitive rates. New brokers welcome – if you don’t have a broker agreement on file, your submission can be looked at while you complete the necessary forms – a LTC book of business would assist for initial appointment. Coverage highlights include: general and professional liability package policy; two GL & PL policy form options available – claims made forms, claims paid – typically less expensive and exclusive to CCRRG brokers; standard liability limits of $1 million/$3 million – $2 million/$4 million limits subject to U/W approval, lower limits may be available upon request; deductible and SIR options available; per location aggregate – subject to U/W approval; prior acts available; competitive INSURANCEJOURNAL.COM

rates; new ventures considered with appropriate prior experience; accounts with a “shock loss” considered with acceptable documentation; sexual misconduct (no-sublimit); no joint and several liability; defense outside the limits – subject to underwriting approval; risk management service provided – including onsite risk assessment visits. CCRRG members have exclusive access to Magnolia Analysis Risk System (MARS) that offers tools, policy and procedures and other information for LTC facilities, including 53 hours of approved continuing education (administrator; LVN/LPN, CNA/ NA for employees’ licensure requirements at no additional cost). Coverage available in all states upon underwriting approval. Available limits: As needed Carrier: Continuing Care, a Mutual Insurance Company States: All states Contact: Steve Ottenbrite at 707-571-7430 or e-mail: sottenbrite@magnolialtc.com

Insurance for Nonprofit, Social and Human Services

Market Detail: Gateway Specialty Insurance (www.gatewayspecialty.com) is a market that specializes a wide variety of nonprofit organizations including, but not limited to: art organizations - such as art galleries, choirs, orchestras and theaters; business associations - such as booster clubs, chamber of commerce and foundations; community association - such as townhouses, cooperatives and condo associations; membership organizations such as a fraternal clubs, hobby clubs and ethnic clubs; houses of worship - such as churches, mosques, temples and synagogues; social services - such as community services, food banks, hospices and thrift stores; sports - such as baseball, basketball, soccer and volleyball. Coverage can include: abuse and molestation; accident; auto; crime; directors and officers; employee benefits; employee practices; general liability; professional liability;

property; umbrella; workers’ compensation. Get a quote three ways: 1. Call 877-474-7868 to quote over the phone; 2. Quote online; 3. Email applications or ACORDS to submissions@gatewayspecialty.com In addition to nonprofit organizations, Gateway specializes in writing allied healthcare and technology accounts. Low minimum premiums, no contract or premium commitment and account management. Agency bill and direct bill is available with several admitted markets. Available limits: As needed Carrier: United States Liability, Alliance of Nonprofit, GuideOne and more States: All states Contact: Anthony Vellutatto at 877-9774474 or e-mail: avellutato@gatewayspecialty.com

Auto Dealer Cyber Coverage

Market Detail: DealerPlus Property &

Casualty’s (www.dealerplusinsurance. com) cyber policy is tailored for franchised and non-franchised auto dealerships and can be quoted in minutes. Policy includes: multimedia liability; security and privacy liability; network asset protection; privacy regulatory (defense and penalties); privacy breach expenses (credit monitoring, customer support, customer notification); and cyber extortion. Email submissions to gharrison@fhsinsurance.com or get a quote over the phone by calling 251-342-5669. Available limits: Minimum $500,000, maximum $1 million Carrier: Unable to disclose, non-admitted available States: All states except N.J., N.Y., and Texas Contact: Garrett Harrison at 251-342-5669 or e-mail: gharrison@fhsinsurance.com

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News & Markets California State Fund Declares 10% Dividend for 2020 Policy Year

for our policyholders and we’re glad we can continue to support them with this dividend declaration,” State Fund President and CEO Vern Steiner said in a statement. “We took a number of actions during 2020 to help our policyholders, including accelerating the delivery of our 2019 dividend payments and providing more than $40 million in COVID-19 safety support grants. This latest declaration continues that support — all qualifying State Fund policyholders now know they can expect another dividend payment next year.” State Fund is California’s not for profit provider of workers’ compensation and is funded solely by premiums and investment income.

alifornia's State Compensation Insurance Fund in early January announced plans to distribute a $39 million dividend to its qualifying policyholders with policies that took effect between Aug. 27 and Dec. 31, 2020. The dividend equals roughly 10% of the estimated annual premium reported during that time period. The announcement follows State Fund’s August declaration of a roughly 10% mid-year dividend that applied to all policies incepted between Jan. 1 and Aug. 26, 2020. The dividend distribution for the entire year amounts to nearly $114 million. Through 2020, State Fund reported roughly $1.13 billion in premium. “This has been a very challenging year

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Farms Were the Deadliest Workplaces in Montana Last Year

n annual report made public by the Montana Department of Labor and Industry has shown that 2019 was slightly more deadly than the previous year in workplaces, with farming the most dangerous industry. The Census of Fatal Occupational Injuries showed the state had 38 work-related fatal injuries last year, a 35.7% increase over the prior year. It also showed 16 of the deaths, or 42%, occurred on farms. The state reported that between 30 and 40 work-related deaths a year is average in Montana. The lowest number of workplace deaths occurred in 2018, 2014 and 2013 with 28. The highest occurred in 1992 with 65. “The data clearly shows that too many workers are being killed and face dangerous working conditions on the job,” Montana AFL-CIO Executive Secretary Al Ekblad said. The U.S. Bureau of Labor Statistics reported that there were 5,333 fatal work injuries recorded in the country last year, a 2% increase from 2018. It noted this was the largest annual number since 2007 and that a worker died every 99 minutes from a work-related injury during the year, officials said. Montana State Fund President and CEO Laurence Hubbard said the number of workplace deaths this year is just 9% higher when looking at a 10-year average, but that it is more than just the data. “We’re talking about human lives, and it’s tragic to lose that many Montana lives each year needlessly,” Hubbard said. The Montana State Fund is the state’s largest workers’ compensation provider. Copyright 2021 Associated Press. INSURANCEJOURNAL.COM

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2020 AGENTS of the Year Welcome to Insurance Journal’s Agents of the Year report. This report features 25 agents who define what it means to be a successful independent agent today. These agents are more than top sellers. While they have achieved impressive success in sales and demonstrated laudable business intelligence

and entrepreneurial skills, they also have shown they have a passion for what they do and a commitment to professionalism and, in many cases, specialization. For them, being an insurance agent is more than a job. Insurance Journal’s Agents of the Year come from all regions of the country, live

and work in cities or towns big and small, and know the importance of giving back. Information included in this report was voluntarily submitted online by agents and was supplemented by other public information sources. There are many more agents who deserve mention than are profiled here.

Trent Tillman TrueNorth Cedar Rapids, Iowa A producer with TrueNorth in Cedar Rapids, Iowa, Trent Tillman’s book of business is 100% transporation focused, covering all modes of trucking across the country, including many of the top 100 motor carriers. In total, transportation business accounts for 40% of the firm’s overall revenue. Tillman began his career at TrueNorth in 2003 after graduating from the University of Northern Iowa. He started by carrying the briefcase for the agency’s since-retired CEO and its lead transportation producer, who now serves as CEO. Focused on learning transportation, insurance, client experience and business development, Tillman became a producer on Jan. 1, 2005, and hit the ground running. Tillman says he had success out of the gate. In 2011, he had the honor of being invited to join the agency’s ownership group and became a practice leader at that time. Promoted to executive vice president of the Transportation Division in 2017, Tillman earned the status of growth leader for the firm in 2020. “Even though I have taken on significant executive responsibilities over the past few years, I have maintained my book of clients and continue to be out in front with our producers, focused on earning new clients,” Tillman says.

Dan Berry Woodruff Sawyer San Francisco, California Dan Berry decided early on in his career that he would best serve clients by not trying to be all things to all companies. Therefore, he focused his energy and expertise on being the boutique solution for venture capital and private equity firms in the middle market. Now, Berry is a senior vice president and Private Equity & Venture Capital Group leader at Woodruff Sawyer in San Francisco. By being hyper-focused on providing that area of expertise, targeted directly to the middle market, Berry and his team have been able to build a platform that suits their clients' needs. Berry has developed expertise in general partner liability, directors and officers liability, due diligence/ transactional risk and special purpose acquisition company (SPAC) risk management and insurance. His expertise is in management liability risks, including D&O liability, and he has worked directly with private equity and venture capital firms and their portfolio companies for more a decade. “In addition to leading the group, I work closely with my clients to provide guidance on risk mitigation and risk management solutions, including insurance. I negotiate directly with insurance carriers to customize and place insurance programs that meet the risk transfer needs of my clients,” Berry says. Prior to joining Woodruff Sawyer, Berry was a sergeant with the United States Marine Corps. He earned his Bachelor of Science degree at the University of California, Davis.

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2020 AGENTS of the Year Sarah Washburn Wilson, Washburn & Forster Miami, Florida Sarah Washburn is a third generation insurance agent, following in the footsteps of her father and grandfather. She has 16 years of experience in the insurance industry and currently serves as president of Wilson, Washburn & Forster Insurance, a boutique commercial insurance agency with a niche industry focus. Wilson, Washburn & Forster Insurance specializes in 10 niche markets, including marine, religious organizations/nonprofits, aviation, manufacturing, food, distributors, educational facilities, life science, healthcare facilities and retail establishments. Washburn’s leadership team has more than 80 years of combined insurance experience, and the service staff has an average tenure of more than 20 years. She says her main focus is mentorship of the producing staff while also taking the agency to the next level. In 2005, along with a few other agents, Washburn started the Young Agents Committee in Miami to encourage insurance agents under 40 years of age to network within their industry. Community engagement and professional development are also important components of her professional life. In the past, she has chaired community events such as the Taste of Pinecrest, an event that focuses on raising funds for local public schools.

Kristy Longfellow Hobson Insurance Hobson, Montana Kristy Longfellow has been in the insurance industry for 20 years. She currently serves as co-owner of Hobson Insurance, which is based in Hobson, Montana, and specializes in national program businesss for sporting goods, shoe retailers, archery shops and ranges, gun stores and ranges, durable medical equipment, clothing stores, hardware and variety stores. Hobson’s staff serves businesses nationwide. Longfellow obtained her certified insurance counselor designation after obtaining her license. She is licensed in every state but Alaska and Hawaii. She has served as president of the Montana Independent Insurance Agency Association, president of Montana Insurance Education Foundation and president of Montana Young Agents. She has also served on the local Chamber of Commerce and Wells Fargo Community Bank Board in Hobson. “The only way I have been able to grow is having the best team in the industry behind me,” Longfellow says. “My partner in the business is my sister Misty Kriskovich, who is an award winning CPCU, CIC, and manages the commercial lines department.” Next to having a good team to service clients is an excellent reputation in the industry, Longfellow said, adding the agency is endorsed by many other national buying groups and associations.

John Gaynier RogersGray Kingston, Massachusetts John Gaynier, who’s now with RogersGray in Kingston, Mass., began his insurance career at Gulfshore Insurance in Florida in 2006. During his time in Florida, Gaynier says he was fortunate enough to participate in MarshBerry’s MAPLYT Program, which was a mentorship program for emerging young leaders in the industry. While in that program, he met Mike and Dave Robinson of RogersGray. He eventually joined RogersGray in 2010, working his way up and quickly growing a sizable book of business. In 2018, he achieved partnership status. “My book of business has risen through my tenure at RG to a size larger than I ever expected and spans throughout the country,” Gaynier says. Gaynier sits on the board of directors of the Plymouth Boys & Girls Club, and holds the AAI professional designation.

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2020 AGENTS of the Year Marcus Eagan Eagan Insurance Agency Metairie, Louisiana Marcus Eagan specializes in the areas of risk management and insurance placement with emphasis on large property risks, marine and construction clients. Eagan’s book of business for each specialty is about 25% for marine, 60% real estate and 15% other. Eagan is the fourth generation to join the Eagan Insurance Agency. He earned his degree in Business Administration from the College of Charleston in 2002, at which time he joined the family business. He later earned the CIC and CRM designations and is a past president of the board of the Insurance Agents of Greater New Orleans (IIAGNO). Eagen is a five time recipient of the Maurice F. Eagan, Sr. award for the Top Producer for Eagan Insurance Agency. In his spare time, Eagen is a member of Bay Waveland Yacht Club and Southern Yacht Club. As an avid sailor, he is a three-time Collegiate All-American and has won numerous other sailing awards on both a national and international level. He is also heavily involved in his community by supporting and participating in many local events such as Catch a Lift Fund, Gary Sinise Foundation, Wounded War Heroes and the Michael J. Fox Foundation. What has been the most helpful in growing his business is the ability to be an advisor to clients and not just an agent, Eagan says. “I truly see myself as part of the clients’ team and work with them to mitigate the risks and exposures to their business,” he says.

Chase Carlisle Carlisle Insurance, an Acrisure Partner Corpus Christi, Texas Specializing in coastal property insurance along the Gulf Coast, the bulk of Chase Carlisle’s book of business is in the public entity sector — schools, cities, counties and ports. The public entity portion accounts for 80% of his book. Carlisle began his career in the insurance industry as a property adjuster for Travelers. Twelve years ago, he switched directions and came home to work for his family agency, where he now serves as vice president. “I have obtained my CIC, CPCU, and CMIP all before turning 35 years old,” Carlisle says. He has served as president of the local chapter of the Independent Insurance Agents of Texas (IIAT) association. Carlisle holds the position of treasurer of a local non-profit, Foster Angels, which serves needs of foster kids in his community.

Chris Walters IMA Inc. Denver, Colorado While primarily focusing on public directors and officers business, Chris Walters book of business also includes the cannabis, biopharm/biotech, real estate and technology industries. He anticipates that the public D&O portion of his book to be around $1.55 million for 2020. Walters started his professional career as a physical therapist and later worked as a medical practice administrator. He transitioned to insurance in 2008, following his mother, who was a nurse initially, and his father, who still has his own insurance brokerage in his hometown outside of Chicago. From 2008 to 2012, Walters held the position of vice president at Network Insurance Services and has served as a vice president at IMA for the past eight years. “Outside of my professional career, I am very happily married to my wife, April, of 11 years, and we have two young children, Sophia, 9, and Quin, 6. Aside from my faith and family, skiing, mountain biking and live music are my passions,” Walters says.

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2020 AGENTS of the Year Brett Cutchin Lipscomb & Pitts Insurance LLC Memphis, Tennessee With real estate accounts of all types across the country, real estate is the largest segment in Brett Cutchin’s book of business. Habitational risks represent about half of his real estate book. He also handles construction related accounts, Cutchin says. A third area of concentration is tough to place accounts. Cutchin graduated from Florida State University with a degree in risk management and insurance. While at FSU, he was president of the insurance society and also won the George Nordhouse scholarship. He began working at Lipscomb and Pitts in January 1994. Cutchin is currently the agency’s commercial lines president, as well as its largest producer. “The most helpful thing in growing my book of business was the decision to be an expert in understanding the policies we help clients purchase,” Cutchin says. “I learned to embrace the fact that I am an insurance nerd and not a typical relationship insurance salesman. Clients gravitate to me due to my technical expertise in my ability to convey information to them in an efficient, easy to understand format.”

Robert Weiland Kapnick Insurance Company Troy, Michigan A University of Michigan graduate, Robertr Weiland went to work for Johnson & Higgins in its Detroit office in 1979. The company had a training program at that time and sent him to the College of Insurance for a full semester. He studied insurance contracts and fundamentals, and worked in J&H's New York office, which he said provided him an “exceptional foundation to my understanding of the insurance industry fundamentals.” He later returned to the J&H Detroit office working in the property department and began working as a producer. “I was learning by handling some of the department’s largest accounts and working to develop new business opportunities of my own,” he said. Three years later, he joined Protection Mutual in Detroit, where he met his mentor, Doug Kapnick, working on many of his placements with PM. From there, he moved to a small agency in Detroit as an equity partner, and his role as a producer quickly expanded. “My success was determined by my own initiative and creativity,” he said. Weiland said four years later his “dream job” became available thanks to Kapnick, who offered him the opportunity to open a Detroit office for Kapnick Insurance Group, where he now focuses on manufacturing. “Thirty years later, I’m doing what I love the most, leading great service teams to provide exceptional service to a broad variety of clients and enjoying the opportunity to expand our book of business to new accounts,” he said.

Cheryl Forman Rightsure Insurance Group Tucson, Arizona Cheryl Forman began her career in the insurance industry working as an agent assistant and later took a job as an insurance agent at another company, where her commitment to her clients led to her recognition as employee of the month. In 2008, she joined RightSure Insurance Group, where she continues to be a top agent in the agency. In 2019, Forman was awarded the Award of Distinction as producer of the year from Safeco Insurance, where she was one of 150 agents nationwide to receive the award. Forman attributes part of her success to Rightsure and its easy to use technology that helps service clients. “Our agency principal, Jeff Arnold, has really done a top notch job in making sure we have all the tools we need to sell and service our clients,” she says. “I love helping clients and providing solutions for their insurance needs."

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2020 AGENTS of the Year Michael Cosgrove Professional Concepts Insurance Agency Brighton, Michigan

Michael Cosgrove specializes in professional liability insurance and business insurance coverages for professional firms, including architects and engineers, CPA, law and technology firms. An independent agent for more than 20 years, Cosgrove’s insurance career began in high school doing administrative tasks as an account administrator, which he says helped him choose his career path. He later received a Bachelor of Arts degree in business at Olivet College with a risk management and insurance concentration. “I worked my way through the ranks at PCIA from account administrator to account manager to account executive then president, later acquiring the agency and operating as president and CEO [from] 2013-present,” Cosgrove said. Cosgrove has a reputation as a hands-on problem-solver for his clients’ insurance and risk management needs. “I am active in my clients’ professional membership associations, which allows me to stay current on their industry trends,” he says. “I donate my time to better serve them through chairing committees, contributing editorials on risk issues, and presenting at professional development events.” Ryan Moss Higginbotham Friendswood, Texas Ryan Moss specializes in energy, marine and construction placements for mid-market business, servicing a vertical he says requires experience in contract and claims review. He started an insurance firm in 1997, and sold the firm to Higginbotham in 2010. He currently serves as a managing partner for its South Texas region. With the Higginbotham team, Moss says he is able to execute on these visions and provide superior service support. “I believe my team and myself represent a great product in the marketplace which has been proven to grow year over year for 20 plus years.” Moss added that establishing expertise in a vertical and striving to be the best in that particular silo has been most helpful throughout his career as an agent. “Customers start and end with trust which is the most important element in my insurance practice,” he says. “Without trust, you can’t be looked to as a leader and advisor.”

Chad Huneycutt The Huneycutt Group Wilmington, North Carolina Chad Huneycutt has been an independent agent since 2010. Prior to that, he was an agent with State Farm. His insurance agency, The Huneycutt Group, specializes in the homeowners market, specifically new homes, working with several builders in the Wilmington, N.C., community. Huneycutt says the agency has grown 15% to 20% every year since becoming an independent agent. “We have built our agency by working with other real estate professionals in our area. From real estate agents, loan officers, builders and other community influencers,” he says. “This has worked well for us and we will continue this strategy as our area is positioned to experience several more years of growth.”

Gregory Deems RogersGray Inc. Kingston, Massachusetts Gregory Deems has worked as an agent for almost 10 years, having worked for RogersGray during that entire time. “I have loved my time with RogersGray and have been able to build a strong book of business throughout New England,” Deems says. Prior to that, he worked for a company that taught hands on crash prevention and sold that to agencies. He said when it was time to make a change, joining the agency world seemed like a great move, and RogersGray was at the top of his list. He followed a partner down the road of construction early on because of RogersGray’s expertise in the area, its dedicated construction service team, a group of people Deems says he enjoyed working with, and a market segment that needed help. “RogersGray is focused on keeping track of the new players in the marketplace, and we have been very successful using those tools to provide something different for clients,” Deems says. “Moving forward, I am focusing a lot of energy on continuing to grow my captive business to continue the trend of offering something new that benefits clients.” 32 | INSURANCE JOURNAL | JANUARY 11, 2021

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2020 AGENTS of the Year Kathy Post Post Insurance & Financial Inc. Port St. Lucie, Florida

Post Insurance was founded in 1979, and today, second-generation owner Kathy Post leads a business model focused on growth and innovation. She has held leadership positions on insurance advisory councils to shape the future of Florida’s insurance industry and spearheaded an initiative to mentor agents around the state. Post Insurance’s Commercial Department specializes in small business, main street, construction and non-profits. Its Personal Lines Department specializes in homeowners and educating them in the insurance marketplace in Florida. Kathy also spends time volunteering and giving back to her community in Port St. Lucie, Fla. She has volunteered to promote essential, free healthcare offered by the Volunteers in Medicine (VIM)/HANDS Clinic, she co-created the Gems of STEM Awards Luncheon to bring together women in science, technology, engineering and math to inspire girls in St. Lucie County to explore these fields, and she volunteered to join the Sunrise Theatre Revitalization Board, in which she and other volunteers raised hundreds of thousands of dollars to return the theatre to its original, 100-year-old glory.

Peter Berg TrueNorth Cedar Rapids, Iowa Peter Berg says he likes to joke that he started as an intern at TrueNorth in May 2007 and never left. It was through the Risk Management & Insurance program at the Universtiy of Iowa that he was introduced to TrueNorth. He later accepted a position as a specialist coordinator with the company and says in that time, he got first-hand experience in the logistics industry, received technical insurance training and “learned how TrueNorth creates values for its clients.” In 2010, he started as an account executive focused on standardizing client experience and service, and in 2013, he accepted a production position focused on business development and enterprise sales. In 2018, he was appointed as a practice leader and offered ownership in various transportation-related books of business. During his more than 13-year career, he has specialized in wheels-based transportation, including the development of a micro-niche in final/last mile logistics. “This is a high-growth industry driven by technology, e-commerce and consumers buying more goods (appliances, furniture, groceries, etc.) online,” he said. “The novel coronavirus pandemic has only fueled growth in this industry.” Berg said final/last mile makes up approximately 50% of his $2.5 million book of business and has grown in just four years to a $4 million final/last mile practice with a forecasted 20% annual growth.

Robin Barlow PeopleFirst Property & Casualty Easton, Pennsylvania Robin l. Barlow has been actively engaged in insurance sales and consultation since 1997. She is the senior vice president at PeopleFirst, an Acrisure partner agency. She was previously senior vice president, director for NFP P&C and president of ADP Barlow Insurance. She specializes in sales, consulting and renewal of insurance products and services for condominium, homeowners associations, active adult resort communities and apartments in Pennsylvania, New Jersey, New York, Connecticut, and North and South Carolina. Prior to joining ADP, Barlow worked as a vice president with Brown & Brown Insurance (through the acquisition of Bowers Schumann and Welch) where she was named as a top female agent nationwide. Barlow says it’s important to get to know the client before the sale in an effort to “pre-qualify.” She says part of her success is due to her commitment to education. She was the administrator to the Managers Insurance Council where she coordinated specialty insurance services to their clients, including a Risk Management Seminar for more than 100 managers in Central New Jersey. In March of 2003, she was one of the first in the country to receive the Community Insurance and Risk Management Specialist (CIRMS) designation. She is also committed to mentoring women in sales. Barlow boasts a 98% retention rate year-over-year.

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2020 AGENTS of the Year Eric Harden Insuramax Louisville, Kentucky Eric Harden started his career in insurance as an intern while attending the University of Kentucky. Before graduating in 2005 with a B.A. in marketing and management, he obtained his property/casualty license during the summer of 2004. He now has more than 15 years of experience in the insurance industry and is currently a partner at Insuramax, specializing in fast food restaurants. For the last three years, he has served as the vice president of Commercial Lines. Harden says his expertise is in helping businesses identify their key exposures, designing an insurance and risk management program that meets their objectives and working to ensure their program is the best it can be while containing costs. During the last three years, Harden has been involved with a National Fast Food Restaurant Program that has helped grow his book of business. “I believe the most valuable resource that I, along with our entire program team, provide to our clients is the proactive quarterly service claims calls,” he says. During these calls, his team discusses clients’ current open and closed claims. “This allows our team to provide our clients with a proactive service as well as grow our business relationship and friendship. “

Ryan Andrew The Andrew Agency, Glen Allen, Virginia Ryan Andrew started The Andrew Agency after spending years as a claims adjuster, working side-by-side with clients and helping them recover from the unexpected. He says his goal is to help clients find the best combination of coverage, discounts and price and to help them customize an insurance policy specifically to their needs and budget. He does this by comparing plans among national, regional and locally recognized insurance companies and then recommending the best option. Andrew specializes in personal lines coverages such as home, auto, life, health and flood and private client services and business solutions such as general liability, professional liability, directors and officers, workers’ compensation and transportation.

Nick Warren Parker, Smith & Feek Portland, Oregon Nick Warren entered the commercial insurance industry during his junior year of college through an internship with Marsh in downtown Seattle while studying finance at the University of Washington. Prior to joining Parker, Smith & Feek in August of 2016, he spent 14 years working in three of Marsh’s U.S. offices — in Seattle, New York and Portland. He became a principal, one of 38 owners, of Parker, Smith & Feek in 2018. He assumed the role of Oregon regional vice president in January 2020, leading the Oregon operations of 24 employees and revenues of just more than $5 million. Warren specializes in mid- to large-sized companies in the construction, manufacturing, real estate, technology and food and beverage industries. His book is made up of 40% owners and contractors in the construction space, 40% in the manufacturing/food and beverage space, and the remaining 20% in the real estate, technology and professional services industries. Warren loves to network and connect good people with other good people. “People want to work with people they like and enjoy being around, and the more you can connect like-minded people together, the more your network, friends, clients, and overall happiness (both personally and professionally) grows,” he says. Warren has always been heavily involved in the community where he lives. In Portland, he enjoys volunteering and supporting local charities and organizations with his time and talents.

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2020 AGENTS of the Year Gregg Knepper Integrated Coverage Group Plainview, New York Gregg Knepper began his career at a large national insurance brokerage firm. After working at this firm for several years, he went out on his own and started Integrated Coverage Group. He started the agency from scratch and has built it up to service both individuals and business in several states. The agency specializes in workers’ compensation and pay-as-you-go, with the approximate revenue size of its workers’ compensation pay-as-you-go book of business being around $400,000. “My relationships have played the greatest role in growing my book of business,” Knepper says. “Both on the client side as well as the carrier side, relationships are the key to being a top agent.” Going forward, Knepper predicts that relationships will become more and more important.

Brett Nilsson Buckner Company Salt Lake City, Utah Brett Nilsson began his carrer in insurance in 1979 and has been an agent and surplus lines broker ever since. He joined Buckner Company in Salt Lake City, Utah, in 2006. He specializes in manufacturing, construction, short-term rental, railroad and habitational and has experience in foreign policy writings and risks in England, Europe, China, Mexico and Australia. In 1982, he was asked to be on the Big I state board of directors, eventually advancing through the chairs and becoming president of Big I Utah. Shortly after, he was elected to the national board, on which he served for nine years as finance chairman and professional liability chairman. He was then elected to the executive committee and eventually became president of the Independent Insurance Agents and Brokers of America. Later, he was asked to serve on the Board of the WFII (World Federation of Insurance Intermediaries). Nilsson says his book of business has grown primarily through contacts from clients and community. “I value my customer relationships and most of them are good personal friends,” he says. “I know their families and their interests.”

Jarrett Willson K&S Insurance Rockwall, Texas

Jeffery Mentel AssuredPartners Saint Louis, Missouri

Jarret Willson joined K&S Insurance in 2011 and was appointed as partner in 2017. Before joining K&S, Willson was driving a route truck for Pepsi and had maxed out his pay scale and territory opportunities. K&S wasn’t hiring at the time, but that didn’t stop him. “I wanted the job, so I took my solicitors test on the side and passed,” he says. “As a result, they gave me an opportunity to go into production.” K&S Insurance and Willson’s book of businesses focuses on heavy construction and surety, writing large accounts, with average clients spending between $150,000 and $2 million on their annual premiums. “It’s not easy handling the daily grind of making calls and gaining the trust of prospective clients, but I enjoy making the extra effort and having the expertise it takes to properly put a deal together and differentiate,” Willson says. An important element to his success as an agent was K&S’s mentor program. “When I started, the owners would go out with me on meetings and help me underwrite, gather submission information, and develop a marketing strategy,” he says. The agency’s new business marketing department is critical as well, he adds. “This helps our clients navigate risk as they enhance their business.”

Jeffery Mentel specializes in captives, construction and private equity/M&A accounts with AssuredPartners in Saint Louis, Mo. He began his insurance career in a family-owned agency in 1984, then worked for regional brokerages from 1992-2011 when his firm was sold to AssuredPartners. Mentel says his key to success in growing new business year-over-year has been partnering with another highly professional and successful agent whose book is almost identical. “We have built our combined books from $1 million in 2014 to well over $5 million,” Mentel says. Mentel attributes their success to building a quality team that provides top level service and advanced technical abilities. INSURANCEJOURNAL.COM

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Idea Exchange: Minding Your Business

Extreme Systemization and Stratification of Agency Operations

few years ago, Catherine had a total knee replacement by an By Catherine Oak excellent orthopedic surgeon in Fremont, Calif. Dr. John Dearborn was recommended by two of our insurance clients that have had incredible success. This surgeon implemented “systematic processing” of his business, which we also call staff stratification, and it is very similar to the works of Michael Gerber of “The E Myth.” The E Myth concept is working “on” the business and not “in” the business. The systemization of work processing is unlike what we see many insurance professionals doing today. Many do a lot of the work themselves, then wonder why they burn out, are workaholics and don’t have enough fun doing what they want to do each day of their lives. This doing the job of others also causes staff morale problems. From the initial meeting with the doctor to the postoperative work, every step of the way had been systemized. Initially,

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Catherine met with Dr. Dearborn to find out whether or not the surgery was necessary and what techniques made him ahead of the pack in technology, why she should choose him instead of a local doctor, how recovery works and more. A surgery date was set, and then she did personal planning for the handling of clients and travel for a period of time. Then, the processes went into play from Dr. Dearborn’s office. These same processes and procedures could be applied to work in an insurance agency office as well. Simply substitute an experienced owner/producer for orthopedic surgeon and substitute account executive for physician assistant and substitute office support personnel for account managers/ CSRs.

The Best Process

The doctor sent a binder (similar to a client proposal) about two weeks before surgery that outlined everything to know before, during and after surgery. It also listed all of the appointments scheduled the week before surgery, the day of surgery and follow-up visits. Then the week before the surgery, Catherine went to the doctor’s office to have all of the X-rays and coaching

done, and went to the hospital nearby for tests, such as an EKG. This ended with a mandatory afternoon class with the nurses and physical therapists that would provide all of the information she needed to know in order to prepare, have peace of mind and comfort. This was all taught in a group setting. These processes saved the physician and his team so much time. The physician delivered everything through the use of a very well written binder, in a group setting, by the people responsible for the different parts of the process. The binder answered basic questions in a very readable format, laid out well with tabs. This saved the nurses and doctors valuable time. Plus, the people who educated the group specialized in these processes. These specialists, who earn less than the doctor, performed all pieces of the puzzle. The other key is that all of these people were acknowledged and praised by their boss. Dr. Dearborn stated how they were integral parts to the process and all very good at what they did. It was by far the most efficient organization we have ever seen. This whole system allowed for the doctor to perform up to 10 surgeries in a day. The system in place let the surgeon walk into a surgery with the patient totally prepped, do the intricate part of the surgery and walk out with his assistants able to finish up with the client. The doctor came out after surgery and greeted each family to discuss how the surgery went. At least one time, post surgery, the doctor came to visit his patient with his team. The physician assistants (not doctors) came to visit as well. The joint replacement patients recovered in the doctor’s own building behind the hospital, were well taken care of and were not around sick people. We had our own team of people working with us on coaching and walking right away the next day and then we attended two or three physical therapy classes. In Catherine’s first follow-up visit (two weeks after surgery), there was always camaraderie formed in the lobby, which helped everyone mentally through the process. INSURANCEJOURNAL.COM

Catherine also received a customer service survey to complete about the job they had done and asked for recommendations for improvement. It was very thorough, with a strong emphasis on customer service.

Relevance to Agency Operations

Consider the agency’s client proposal the same as the initial instructions given by the doctor and his team in the pre-surgery meeting. Replace a client insurance binder containing the insurance policies, summary of the services provided, description of the firm’s policies and procedures and service team (AM/CSR assigned, claims and loss control people), for the patient’s guide to their replacement surgery. In this scenario, the owner/producer gets a referral and screens this prospect over the phone using a prospect qualification list of key questions. If the prospect qualifies for the agency model, then the producer and the account executive visit the prospect and gather the appropriate data. Back at the agency, the account executive puts the ACORD forms together in conjunction with the CSR or marketing person that markets the account. The CSR or the CSR assistants type up the proposal, and the account executive and producer review it. Together, they present it to the prospect. If the prospect agrees that the coverage will be bound, then the account executive does the appropriate work to get the policies placed. When the policy comes, the CSR first checks it over, then either sends the policy to the client or an account exec delivers it to the insured. As service calls come in, the AE or CSR do the work. The producer only gets involved if there is a serious problem or at the next renewal for a visit with the account executive. We recommend the agency set-up seminars for networking

of clients and prospects. Often, the agency can present such topics as risk management, loss control or providing unique coverages such as business interruption, employment practices liability insurance (EPLI) or cyber insurance. Prospects will enjoy mingling with clients and gain insight on the quality and professionalism of the agency and its producers.

‘By systemizing the business, owners and producers can concentrate more on what they do best, which is usually sales. The roles, systems and procedures can be streamlined and handled by qualified, but less expensive people.’

Summary

By systemizing the business, owners and producers can concentrate more on what they do best, which is usually sales. The roles, systems and procedures can be streamlined and handled by qualified, but less expensive people. Owners and producers can make more money and employees will feel empowered if they are properly trained to follow the agency’s systemized processes. This is the epitome of what we call staff stratification, which is delegation of service to the least costly, qualified employee. Oak is the founder of the consulting firm, Oak & Associates, based in Northern California and Central Oregon. Oak & Associates specializes in financial and management consulting for independent insurance agencies, including valuations, mergers acquisitions, sales and marketing planning as well as perpetuation planning. Phone: 707-935-6565. Email: catoak@ gmail.com.

Idea Exchange: Is It Covered? Logic & Language and Forms & Facts The Final Word on COVID-19 and Insurance?

ince this is an insurance coverage column, it’s perhaps fitting to initiate the new year with a look back at the biggest coverage issue of the past year and probably the past couple of By Bill Wilson decades. In 2001, the coverage question was whether the terrorist strike at the World Trade Center was one or two occurrences. The coverage issue today is whether business income insurance covers pandemics, in this case, the COVID-19 SARS-CoV-2 viral pandemic. As I write this article in early December 2020, according to attorney Roy Mura, of the almost 1,400 COVID-19 lawsuits, about 80 insurer motions to dismiss (MTDs) have been the subject of summary judgment so far. Two-thirds of the cases have been heard in federal court and one-third in state court. Overall, decisions have favored insurers 75% of the time. That percentage in federal courts is over 90%, whereas insurers have a 50/50 chance of prevailing in state courts. 38 | INSURANCE JOURNAL | JANUARY 11, 2021

The first case that appears to actually be going to trial is Cajun Conti LLC et al. v. Certain Underwriters at Lloyd’s et al., which was reportedly the first COVID-19 lawsuit filed in the country. It will be interesting to see the logic behind the ruling at this New Orleans trial court, but that won’t be the end of the litigation. In October, fittingly on Halloween, I published my fifth book, this one entitled “Why Insurance Doesn’t Cover the COVID-19 Pandemic.” My goal in this month’s column is to condense the 164 pages and 50,000-plus words in that book down to a couple of pages and less than 1,500 words. The industry-standard policy language for business income coverage comes from the Insurance Services Office (ISO) form CP 00 30 - Business Income (And Extra Expense) Coverage Form. There may be eight edition dates of this form in the marketplace, along with some proprietary insurer forms and an unknown number of variations on the ISO language. In the ISO form, there are two major sources of business income coverage. The first, primary coverage is triggered by “direct physical loss of or damage to prop-

erty” caused by a covered peril to property on the declared premises. Secondarily, a time-limited (two to four weeks) coverage extension is provided when access to the premises and a specific geographical area is prohibited by an order of civil authority due to damage to property away from the declared premises by a covered peril under certain conditions. If this sounds complicated, that’s because it is. That’s especially true for the “civil authority” coverage extension because the language in that policy provision was significantly revised by ISO in 2007. In my view, there are three main reasons why this and similar business income forms do not cover COVID-19 claims: (1) there must be demonstrable “direct physical loss of or damage to” property, (2) the same requirement applies to the civil authority coverage extension plus, in the majority of forms in the marketplace, an area-wide prohibition of access must apply, and (3) insurance doesn’t cover potentially catastrophic losses that can impact virtually every insured almost simultaneously. The vast majority of legal jurisdictions have held that “direct physical” loss or INSURANCEJOURNAL.COM

damage requires some material alteration, usually of a permanent nature, to tangible property. This interpretation is supported by the definition of “period of restoration” in the form which governs the amount of recovery under the policy until the insured relocates or the property has been “repaired, rebuilt or replaced.” Even if the SARS-CoV-2 virus exists at a premises, according to the experts its surface presence can be remediated by cleaning with a household disinfectant. A restaurant manager would not hand an employee a spray can of Lysol or a Clorox wipe and instruct him or her to “rebuild” the table tops in the dining area. That’s a ludicrous premise, as supported by recent and past case law.

‘The vast majority of legal jurisdictions have held that “direct physical” loss or damage requires some material alteration, usually of a permanent nature, to tangible property.’ Policyholder attorneys have pointed to a minority of cases finding coverage for surface or atmospheric contamination by asbestos, ammonia and even cat urine. Aside from the “cleaning” argument above, another critical point distinguishes those cases from most COVID-19 cases … the asbestos, ammonia and urine actually existed. To my knowledge, there is no evidence in any of the 80 MTD cases thus far that the SARS-CoV-2 virus was actually present at any premises. In fact, in almost 80% of the 80 MTD cases, the presence of the virus was not even alleged to exist at any insured’s business. Most likely, the reason for this is that the coverage most policyholder attorneys are hanging their hats on is the order of civil authority coverage extension. The problem with that argument is that, in the ISO CP 00 30 forms prior to 2007, the insuring agreement of this coverage required “direct physical loss of or damage to” property. The “direct physical” requirement was later dropped by ISO so that the 2007 INSURANCEJOURNAL.COM

and 2012 editions of the form only require “damage” to property. However, those two most recent editions of the form require damage by a covered peril and the ISO Causes of Loss forms are only triggered by “direct physical loss.” Some policyholder attorneys argue that “loss of” (vs. “damage to”) property includes “loss of use of” that property. I counter that argument on the premise that, if the contract language had intended coverage for “loss of use of” property, it would say “loss of use of” and not just “loss of.” To coin a phrase (or at least borrow from one used by statisticians), “Torture policy language and it will confess to anything.” The phrase “loss of” is inarguably distinguishable from the phrase “loss of use of.” To demonstrate that point, take a look at the definition of “property damage” in the ISO CG 00 01 (CGL) policy, which addresses three types of loss to property, two of them specifically being “loss of use of” that property. The same cannot be said of the CP 00 30 form also drafted by ISO. However, aside from this issue, given that most CP 00 30 forms in the marketplace are likely the 2007 or 2012 editions, civil authority coverage is only triggered if the civil authority: “… prohibits access to the described premises, provided that both of the following apply ... Access to the area immediately surrounding the damaged property is prohibited by civil authority as a result of the damage, and the described premises are within that area but are not more than one mile from the damaged property.” The problem is that the vast majority, if not all, of governmental orders thus far have not prohibited access to premises (the property owners can still conduct some operations), nor have any of the

orders to my knowledge prohibited access to an entire geographical “area.” This type of prohibition is common following, for example, a tornado or hurricane, but not a virus. If we’re really being honest with each other, the reality is that the rationale for these governmental orders is prevention of disease transmission, not remediation of property damage. Finally, as I wrote in my book “When Words Collide: Resolving Insurance Coverage and Claims Disputes,” when a judge hears an insurance coverage case, the first order of business when examining the language of the insurance contract is to seek to determine the intent of the policy language. I contend that it is not the intent of ANY property insurance policy to cover losses that can impact virtually every insured almost simultaneously. The very essence of insurance is that the transfer of risk from a multitude of insureds to an insurer is enabled by the ability to spread the risk of loss among the insureds. If that’s impossible because every insured can be impacted at the same time, then the risk is uninsurable. The purely economic losses created by a pandemic, and perhaps arguably exacerbated by questionable and equally uninsurable decisions by governmental authorities, is not an insurance issue. It’s a societal issue which no single industry should or could be expected to solve. Here’s hoping that the judicial system will review insurance contract language in its clear and unambiguous meaning as intended and that 2021 will be a return to prosperity by all. Wilson, CPCU, ARM, AIM, AAM is the founder and CEO of InsuranceCommentary.com and the author of six books, including “Why Insurance Doesn’t Cover the COVID-19 Pandemic.”

Quote of the Month: “In times like these, it’s always good to remember that there have always been times like these.” – Paul Harvey JANUARY 11, 2021 INSURANCE JOURNAL | 39

Idea Exchange: Legal Can Insurance-Related Firms Compel Employees to Get

COVID-19 Vaccination?

he long-awaited and highly anticipated COVID-19 vaccine is here. The first to arrive on the scene, from Pfizer-BioNTech, received emergency use authorization from the Food and Drug Administration By Bryan Johnson and several days ago. On the heels of that, Moderna’s version got the official nod. No doubt, this is great news for a nation fighting the grips of such an uber infectious and Samuel Licker potentially deadly disease. Even so, the introduction of these immunizations begs several questions — within the insurance industry and otherwise — concerning distribution plans, efficacy, and the timing of widespread availability. Also on the minds of insurance professionals beyond “should I or shouldn’t I” is whether they can compel their employees to be inoculated against the novel coronavirus.

The Short Answer Is Yes

We are all entering new territory with respect to COVID-19 vaccinations. In the wake of Operation Warp Speed, the Pfizer and Moderna products have an unknown record of effectiveness, and the extent of their side effects is not entirely clear, which could leave some a bit tentative about being injected. Nevertheless, from a legal perspective, there is little preventing a private employer in the insurance space from imposing a vaccination requirement on its employees. Indeed, vaccine skeptics and those on the fence when it comes 40 | INSURANCE JOURNAL | JANUARY 11, 2021

to the Pfizer and Moderna offerings may not be happy to hear that in most cases companies can mandate that their employees receive COVID-19 vaccinations, once available, as a condition of new or continued employment. Whether compulsory vaccination in the insurance-related workplace should be implemented is another question altogether. To be clear, this discussion applies to private businesses only (both in and out of the insurance sector), and not to federal, state and local government employers subject to constitutional restrictions that may limit their ability to implement COVID-19 vaccination requirements.

on, the job. This is true unless employees opposed to immunization demonstrate that a medical disability or sincere religious belief exempt them from a vaccine mandate, in which case reasonable accommodations must be made for them, if possible and as explained below.

Exemptions and Reasonable Accommodations

Employees may refuse to be vaccinated if they suffer from medical conditions covered by the Americans with Disabilities Act or hold closely held religious beliefs under Title VII of the Civil Rights Act. Considering the severe health and economic impact COVID-19 has had here in the U.S., the bar is quite high for employees looking to trigger either exception to their employer’s mandatory vaccination policy. Nevertheless, it is incumbent upon employers to advise employees of their rights to request a vaccine exemption under federal, state or local law. If an employee refuses a COVID-19

Basis of a COVID-19 Vaccination Mandate

For years, employers have been legally authorized to require their workforces to get an annual flu vaccine in order to continue working. Consistent with this view, the U.S. Occupational Safety and Health Administration has long taken the position that while employers are not forced to compel employees to be vaccinated, they may do so. Still, OSHA has imposed a couple of limitations upon such an employer mandate: (1) where there is a reasonable belief that an employee has a medical condition that could cause a real danger of serious illness or death in the event of inoculation, and (2) if the employee maintains privately held religious beliefs that are inconsistent with taking vaccines. When it comes to the newly approved COVID-19 vaccines, the federal government’s position seems largely unchanged. In fact, the U.S. Equal Employment Opportunity Commission updated its COVID-19 guidance last month, explaining that employers can require employees to receive a COVID-19 vaccine (once eligible) in order for them to return to, or remain INSURANCEJOURNAL.COM

vaccination because of a medical disability contemplated in the ADA, the employer must provide a reasonable accommodation for that employer in lieu of termination. Such an accommodation cannot result in an undue hardship to the employer (read: significant difficulty or expense), and includes the opportunity for the dissenting employee to work offsite, when possible. To be sure, certain circumstances would not allow for telecommuting — for instance, retail and hospitality jobs. In any event, the ADA remains a deterrent to COVID-19 vaccine mandates, and the law requires that such directives be job-related, consistent with business necessity, and no more intrusive than necessary. Similarly, and according to the EEOC and Title VII, a reasonable accommodation must be made for employees whose sincerely held religious beliefs, practices, or observances prevent them from taking the COVID-19 vaccine. Again, however, an employer would not be obligated to provide a reasonable accommodation if

doing so poses an undue hardship, which requires even less of a showing under Title VII. Exceptions aside, the EEOC has made clear that if an unvaccinated employee presents a threat to the health and safety of other employees or, more broadly, the workplace, and if that threat cannot be eliminated through reasonable accommodation, the employer can exclude the non-vaccinated employee from the workforce.

Should Your Business Institute a Vaccination Mandate?

Setting aside the question of legality, employers in the insurance world face a tough decision whether or not to implement and enforce mandatory vaccination protocols. As mentioned, the COVID-19 vaccine does not have a proven record of safety or efficacy, which means employers should anticipate significant pushback from at least some employees that are forced to be immunized. Depending upon

your business and circumstances, a logical compromise might be to require onsite workers to receive vaccines, while allowing dissenters to work remotely. It is important to understand that while legal, vaccine policies may lead to lawsuits filed by disgruntled employees who either do not want to be vaccinated or experience adverse reactions to inoculations. This is but one of the potential downsides of a vaccine requirement, along with the impact such a mandate could have upon employee relations in light of widespread individual skepticism that might spark workplace tension. But negative consequences such as these must be weighed against the overwhelming public health benefit and business continuity that is sure to come if and when workforces nationwide are immunized against COVID-19.

In Closing

For its part, the EEOC advises that best practice is to encourage employees to receive COVID-19 vaccines on a voluntary basis, rather than mandate it. That being said, each employer must do what it believes is best for its business. Whatever the case may be, it is widely recommended that insurance employers provide proper education relating to COVID-19 protocol, vaccinations in general, and the rights of employees to refuse a vaccine under the ADA and Title VII. Likewise, you should — and in some instances must — continue practicing safe exposure control to prevent the spread of the novel coronavirus; provide paid sick leave to employees to reduce the pressure of reporting to work onsite when sick; and make it easy for employees to receive inoculations to fend of COVID-19, even when not mandated. Johnson is a partner, and Licker is an associate, both of Michelman & Robinson, LLP, a national law firm with offices in Los Angeles, Orange County (California), San Francisco, Chicago, and New York City. Johnson has forged a particular expertise in handling matters arising out of COVID-19, including PPP compliance. Email: bjohnson@mrllp.com. Phone: 312-706-7762. Licker specializes in corporate law and matters pertaining to COVID-19. Email: slicker@ mrllp.com. Phone: 310-299-5500.

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2021 Insurance Industry Meetings & Conventions Directory Welcome to Insurance Journal's 2021 Insurance Industry Meetings and Conventions Directory. The information in this directory is taken from a larger database containing additional information on these and other meetings, including industy-related seminars, conferences and workshops. The online Insurance Journal events database can be found at: www.InsuranceJournal.com/events Meeting planners are invited to add new meetings, conventions and seminars to the databse free of charge, all year long. Self-Leadership: Tips for Navigating the Quarantine Jan 8 Society of Insurance Trainers & Educators https://us02web.zoom.us/webinar/register/ WN_P-BeAjpuRLeuTUiVu0-S1g

2021 Gamma Iota Sigma Regional Conference Series

Jan 22-29 VFairs virtual event platform Gamma Iota Sigma https://web.cvent.com/event/b65fb4dddd27-4efc-add3-034b2ba70f11/summary?RefId=GISRC2021

WSIA Surplus Lines Management

Feb 1-4 WSIA https://www.wsia.org/wcm/Education/ Surplus_Lines_Management/wcm/Education/ SURPLUSLINESMGMT/Home.aspx?hkey=e4adfd76-8c68-4568-970c-c54bd0afb13a

IIAT 58th Annual Joe Vincent Management Seminar

Feb 1-3 Independent Insurance Agents of Texas https://www.iiat.org/edu-and-events/events/ joe-vincent-seminar

Windstorm Insurance Network Virtual Conference

Feb 1-4 Windstorm Insurance Network http://events@windnetwork.com

RIMS Chicago Chapter 2021 Chicagoland Risk Forum

Feb 3 Virtual Conference RIMS Chicago Chapter http://chicagolandriskforum.org

42 | INSURANCE JOURNAL | JANUARY 11, 2021

NAMIC Claims Conference

Feb 9-11 Omni Orlando Resort at ChampionsGate Orlando, FL National Association of Mutual Insurance Companies (NAMIC) https://www.namic.org/edu/claims

IICF Fat Tuesday

Feb 16 Insurance Industry Charitable Foundation https://give.iicf.org/ge/iicffattuesday21

KAIA 2021 Mid-America Insurance Conference

Feb 28-Mar 2 Embassy Suites KCI Airport Kansas City, MO Kansas Association of Insurance Agents https://members.kaia.com/events/ Details/2021-mid-america-insuranceconference-163170?sourceTypeId=Website

2021 WSIA Underwriting Summit

IIABA Los Angeles I-Day 2021

Mar 9 TBD Los Angeles, CA Independent Insurance Agents & Brokers of Los Angeles https://iiaba-la.com/events/

Big I Oregon 2021 Education Symposium

Mar 11-12 Inn at Spanish Head Lincoln City, OR Independent Insurance Agents & Brokers of Oregon https://www.iiabo.org/Education/Pages/ EdSymposium/Education%20Symposium. aspx

MAIA Small Agency Conference

Mar 18-19 Holiday Inn Columbia Columbia, MO Missouri Association of Insurance Agents https://www.moagent.org/Events/Pages/ SmallAgency/default.aspx

Mar 1-3 Virtual Summit Wholesale & Specialty Insurance Association https://wsia.org/wcm/Networking/wcm/ Networking/Underwriting_Summit/2021/ Registration.aspx

Mar 29-Apr 1 Wholesale & Specialty Insurance Association https://wsia.org/

MAIA Day at the Capitol

9th Annual CEU Seminar & Cook-Off

NAMIC Commercial Lines Seminar

IIAB I-Day San Diego 2021

Mar 2 Capitol Plaza Hotel Jefferson City, MO Missouri Association of Insurance Agents https://www.moagent.org/Events/Pages/ Capitol/default.aspx

Mar 3-5 Renaissance Chicago Downtown Hotel Chicago, IL National Association of Mutual Insurance Companies (NAMIC) https://www.namic.org/edu/commercial-lines

WSIA Insurtech Conference

Apr 1 Sheraton Orlando North Maitland, FL Orlando Claims Association http://orlandoclaimsassoc.com/cookoff_info. html

Apr 6 Town & Country Convention Center San Diego, CA Independent Insurance Agents & Brokers of San Diego http://www.iiabsandiego.com/upcoming-events/ INSURANCEJOURNAL.COM

NAIC Spring Meeting

Apr 10-13 Gaylord Texan Hotel Dallas, TX National Association of Insurance Commissioners https://www.naic.org/meetings_events.htm

SIR Spring Workshops 2021 - \Social Distancing Silver Linings ‚Äî New Techniques for the New World of Work\"."

Apr 15-29 The Society of Insurance Research https://www.sirnet.org/SIR/Events/SIR/ Events/Events_List.aspx?hkey=b0062165-f2954e2b-a962-6f08b70da57e

RIMS 2021

Apr 18-21 TBD Chicago, IL The Risk Management Society https://www.rims.org/rims2021/rims-2021save-the-date

The IAIABC Forum 2021

Apr 20-29 International Association of Industrial Accident Boards and Commissions http://www.iaiabc.org/forum

NIIA Annual Tradeshow 2021

Apr 21 TBD Nevada Independent Insurance Association https://www.niia.org/Products/Pages/ NIIATradeshow/default.aspx

PLUS D&O Symposium

Apr 28-29 Virtual Professional Liability Underwritering Society https://plusweb.org/Events/Upcoming

The BIG 20/20 Vision Convention

Apr 30-May 2 Ontario Convention Center Ontario, CA INSURANCEJOURNAL.COM

BIG Independent Group https://www.biginsusa.com/events/the-big20-20-vision-convention-agents-brokers-onlyregistration/

IIABCal Blue Ribbon Conference

May 2-6 Mauna Beach Resort Kohala Coast, HI Independent Insurance Agents & Brokers of California https://www.iiabcal.org/Events/Blue-RibbonConference

2021 TMPAA Mid-Year

May 3-5 Tampa Marriott Water Street Tampa, FL TMPAA http://www.targetmkts.com

BigIOK 2021 Conference

May 5-6 Embassy Suites Norman, OK Independent Insurance Agents of Oklahoma https://www.bigiok.com/events/pages/annualconf/default.aspx

PLUS Cyber Symposium

May 5-6 Virtual Professional Liability Underwriting Society https://plusweb.org/Events/Upcoming

IIAW InsurCon 2021

May 10-11 Kalahari Resorts Wisconsin Dells, WI Independent Insurance Agents of Wisconsin https://www.iiaw.com/page/insurcon

PLUS Healthcare & Medical PL Symposium

May 11-12 Virtual Plus Liability Underwriting Society https://plusweb.org/Events/Upcoming

IRMI AgriCon

May 17-19 International Risk Management Institute https://www.irmi.com/conferences/agribusiness-conferences

Accelerate, powered by NetVU

May 18-Jun 29 NETVU http://www.netvu.org

IIANC InsurExpo 2021

May 20-21 TBD Winston Salem, NC Independent Insurance Agents of North Carolina https://www.iianc.com/IIANC/Events/ InsurEXPO2021/IIANC/Event/EXPO2021.aspx?hkey=1e694953-1822-4d13-a33b-16528c6062ee

IIAG Annual Meeting, Convention, & Trade Show & YAC Annual Conference

Jun 3-6 Omni Amelia Island Resort Fernandina Beach, FL Independent Insurance Agents of Georgia https://www.iiag.org/annual-event/

NIIA Annual State Convention

Jun 6-8 Carson Valley Inn Minden, NV Nevada Independent Insurance Agents https://www.niia.org/Products/Pages/convention/default.aspx

PLRB 2021 Claims Conference & Insurance Services Expo Jun 13-16 McCormick Convention Center Chicago, IL PLRB http://www.plrbclaimsconference.org

JANUARY 11, 2021 INSURANCE JOURNAL | 43

2021 Insurance Industry Meetings & Conventions Directory AIIA 125th Annual Convention & Trade Show

Jun 13-15 Grand Hotel Golf Resort & Spa Point Clear, AL Alabama Independent Insurance Agents https://www.aiia.org/aiia-convention-tradeshow/

IIAM 2021 Annual Convention & Trade Show

Jun 13-16 TBD Independent Insurance Agents of Mississippi https://www.msagent.org/Events/Pages/ IIAMAnnualConventionandTradeShow.aspx

AWIA 87th Annual Convention and Trade Show

Communications Association (IMCA)

https://www.imcanet.com

IIAT InsurCon

Jun 23-25 Kalihari Resort Round Rock, TX Independent Insurance Agents of Texas https://www.iiat.org/edu-and-events/events/ insurcon/recordings

IIAND Summer Classic

Jun 27-28 TBD Independent Insurance Agents of North Dakota https://www.iiand.org/Events/Pages/default. aspx

IIAM & PIA Montana Insurance Symposium

Jul 21-23 Fairmont Hot Springs Resort Anaconda, MT IIAM & PIA Montana https://www.iiamt.org/Events/Pages/ Convention/default.aspx

MAIA Missouri Agents Connection (MAC) Summit Jul 21-23 Margaritaville Lake Resort Osage Beach, MO Missouri Association of Insurance Agents https://www.moagent.org/Events/Pages/ MACSummit/default.aspx

AIIA Young Agents Conference

Jun 15-17 Ramkota Hotel Casper, WY AWIA Association of Wyoming Insurance Agents https://www.awia.com/Events/Pages/ Convention/default.aspx

APCIA National Flood Conference

FAIA's 117th Anniversary Convention and Education Symposium

Jun 27-29 Hilton Nashville Downtown Nashville, TN Big I Arkansas https://www.iiaar.org/Events/Pages/Conv/ default.aspx

Aug 2-4 Hyatt Regency Orange County Garden Grove, CA Combined Claims Conference http://www.combinedclaims.com

IIAV Annual Convention 2021

Aug 10-12 Vermont Captive Insurance Association https://www.vcia.com/Events/ AnnualConference/tabid/87/Default.aspx

Jun 16-18 Rosen Shingle Creek Resort Orlando, FL Florida Association of Independent Insurance Agents https://www.faia.com/convention2019

2021 IIABL Convention

Jun 20-23 TBD Destin, FL Independent Insurance Agents & Brokers of Louisiana https://www.iiabl.com/Events/Pages/ Convention/default.aspx

IMCA 2021 Annual Conference Jun 21-23 Omni Championsgate Orlando Orlando, FL Insurance Marketing and

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Jun 27-30 TBD American Property Casualty Insurance Association https://www.apci.org/events/conferences/

IIAAR 119th Annual Convention

Jun 27-29 Marriott Virginia Beach Oceanfront Virginia Beach, VA Independent Insurance Agents of Virginia https://www.iiav.com/Events/Pages/ IIAVConvention/default.aspx

TSLA 2021 Mid-Year Meeting

Jul 18-21 Four Seasons Resort Vail, CO Texas Surplus Lines Association Inc. http://www.tsla.org.

Jul 30-Aug 1 Hilton Pensacola Beach Pensacola Beach, FL Alabama Independent Insurance Agents https://www.aiia.org/young-agents-conference/

Combined Claims Conference

VCIA Virtual Annual Conference

NAIC Summer Meeting

Aug 14-17 Greater Columbus Convention Center Columbus, Ohio National Association of Insurance Commissioners https://www.naic.org/meetings_events.htm

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IIABAZ's 87th Annual Convention & Trade Show

Aug 18-19 Renaissance Phoenix Glendale Hotel & Spa Glendale, AZ Independent Insurance Agents & Brokers of Arizonahttps://www.iiabaz.com/Events/ Pages/AnnualConv/default.aspx

ICT 29th Annual Property & Casualty Insurance Symposium

Sep 1-2 Hyatt Regency Austin Hotel Austin, TX Insurance Council of Texas https://www.insurancecouncil.org/

FAIA Sales & Leadership Conference Florida Young Agents

Sep 1-3 TBA Orlando, FL Florida Association of Insurance Agents https://www.faia.com/salc

PLRB 2021 Central Regional Adjusters Conference

Sep 8-9 Greater Columbus Convention Center Columbus, OH PLRB http://www.plrbregionalconferences.org

PLUS University

Sep 13-14 TBD Chicago, IL Plus Liability Underwriting Society https://plusweb.org/Events/Upcoming

RIMS Chicago Chapter 2021 Chicagoland Risk Forum

16-Sep The Old Post Office Chicago, IL RIMS Chicago Chapter http://chicagolandriskforum.org

INSURANCEJOURNAL.COM

WSIA 2021 Annual Marketplace

BigIOK 2021 Young Agents Conference

Sep 19-22 Manchester Grand Hyatt San Diego, Marriott Marquis San Diego Marina San Diego, CA Wholesale & Specialty Insurance Association https://wsia.org/

Oct 6-7 TBD Independent Insurance Agents of Oklahoma https://www.bigiok.com/Events/Pages/ YoungAgentsConf/default.aspx

IIANM 2021 Convention

Oct 10-12 Eagle Crest Resort Redmond, OR Independent Insurance Agents & Brokers of Oregon https://www.iiabo.org/Events/Pages/ AnnualConv/default.aspx

Sep 21-23 Isleta Resort & Casino Albuquerque, NM Independent Insurance Agents of New Mexico https://iianm.org/events/

ICT 2021 Workers' Compensation Conference

IIABO 92nd Annual Convention

WSIA U40 Annual Meeting

23-Sep Omni Austin Southpark Hotel Austin, TX Insurance Council of Texas https://www.insurancecouncil.org/

Oct 10-12 Sheraton Austin at the Capitol Austin, TX Wholesale & Specialty Insurance Association https://wsia.org/

2021 American Agents Alliance Conference & Expo

PLUS University

Sep 23-26 JW Marriott Desert Springs Resort & Spa Palm Desert, CA American Agents Alliance https://agentsalliance.com/conference/

NHAIA Annual Convention

Sep 27-29 TBD New Hampshire Association of Insurance Agents https://www.nhaia.com/Events/Pages/ AnnualConvention/Annual%20Convention. aspx

RIMS Canada Conference

Oct 4-7 TBD Ottawa, Canada The Risk Management Society http://www.rimscanadaconference.ca

Oct 11-12 TBD Los Angeles, CA Professional Liability Underwriting Society https://plusweb.org/Events/Upcoming

Insurors Tennessee 128th Annual Convention

Oct 16-19 TBD Florence, AL Insurors of Tennessee https://www.insurors.org/IOT/ Convention/2020ConventionHome.aspx

The Society of Insurance Research 2021 Annual Conference and Exhibit Fair

Oct 17-19 The Westin Cincinnati Cincinnati, OH The Society of Insurance Research https://www.sirnet.org/SIR/Events/2021_ Annual_Conference/SIR/Events/2021_ Annual_Conference/Event_Collector.aspx?hkey=b2237221-b849-47a1-8b91-b0dd2642154c

JANUARY 11, 2021 INSURANCE JOURNAL | 45

2021 Insurance Industry Meetings & Conventions Directory 21st TMPAA Annual Summit

2021 Big I CT Mid-Year Convention!

PLRB 2021 Large Loss Conference

Big I Connecticut https://www.bigict.org/Events/Pages/MidYear/default.aspx

Oct 18-21 Westin Kierland Resort Scottsdale, AZ TMPAA http://www.targetmkts.com

Oct 27-29 JW Marriott Tampa Water Street Hotel Tampa, FL PLRB http://www.plrblargeloss.org

IIANC YADC21

Oct 28-29 TBD Raleigh, NC Independent Insurance Agents of North Carolina https://www.iianc.com/IIANC/Events/Young_ Agents_Development_Conference_New/ IIANC/Event/YADC19_Video_Recap.aspx?hkey=00c5704c-dc8f-46d2-b311-e8603d901766

Nov 18 Aqua Turf Plantsville, CT

NAIC Fall Meeting

Dec 13-16 San Diego Convention Center San Diego, CA National Association of Insurance Commissioners https://www.naic.org/meetings_events.htm

APCIA Annual Meeting

Oct 31-Nov 2 TBD American Property Casualty Insurance Association https://www.apci.org/events/conferences/

PLUS Conference

Nov 8-10 TBD Dallas, TX Professional Liability Underwriting Society https://plusweb.org/Events/Upcoming

TSLA 2021 Annual Meeting

Nov 14-15 Four Seasons Hotel Austin, TX Texas Surplus Lines Association Inc. http://www.tsla.org.

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Idea Exchange: Risk Management How to Deal with a New Set of Risk Priorities

hree risk management alerts arrive in a CEO’s inbox. Which one gets the most attention?

1. Umbrella liability insurance renewal costs are expected to increase by 30% to 50%. 2. Unfavorable workers’ compensation trends will materially impact earnings this quarter. 3. A well-known victims’ lawyer is alleging egregious misconduct by a field manager and threatening to go to the press. In most companies, the misconduct allegation will be dealt with first and will be the only item among the three that the CEO feels a personal stake in.

Organizations with an unfavorable workplace culture are at unprecedented risk. The potential consequences, such as board of director dissatisfaction, reduced market capitalization and a social media backlash are greater than ever. The CEO’s job could even be endangered. This shift in risk priorities reflects a change in the relationship between organizations – particularly large public companies – and society at large. It is By Gary Pearce the manifestation of a pushback against institutions that seem more powerful and unaccountable than ever before. Many of the people involved in this pushback are employed by the same organizations they are speaking out against. Perhaps there was a time when employee and customer loyalty was a given, but now it is often replaced by emotional distancing, if not hostility, with no belief that the interests of each party are inherently aligned. Sometimes, there is a temptation to automatically take the other side of whatever seems to be in the organization’s best interests. INSURANCEJOURNAL.COM

In this environment, once the incident report arrives on the CEO’s desk, it is too late. The time for action is before the event occurs. Given this profound and lasting shift, which is both symptomatic of and often driven by changes in technology, organizations face a new and more complex portfolio of risks at the same time that cost pressures are as high as ever. Yet, in most cases, the risk management function is reactive and still organized around yesterday’s priorities. The risk management organization will either adapt and be part of the solution or be relegated to a lower-significance staff function under continuous threat of

downsizing or reorganization. Here are some steps to ensure that the former, not the latter, occurs.

Act Before Events Happen

Emphatic and sincere action can minimize the damage of an inappropriate act, but it would be far more effective to preemptively take the steps to make sure the event never happens in the first place. To reach this level, organizations need tools to understand what is happening throughout their business. An important aspect of this is to not wait for people to raise issues, but rather, take the initiative

continued on page 48 JANUARY 11, 2021 INSURANCE JOURNAL | 47

Idea Exchange: Risk Management continued from page 47 to preemptively gain insight into workplace experiences and observations. Another essential aspect is not just giving people the tools to communicate, but rather, establishing a climate where people feel safe in escalating adverse situations, in promoting a culture that rejects inappropriate behavior in all its forms and taking decisive action when events occur.

Attach Action to External Trends

A common objection to preventive initiatives is that events of the type being prevented have not occurred within the organization or don’t represent a significant cost. But in the new climate, trailing or expected values aren’t a sufficient indicator of risk. The dialogue needs to be converted from an analysis of loss history to a discussion about consequences if such an event did take place. How, in light of the experiences of others, can there be a credible belief that the organization is not similarly exposed?

Risk Speaking Out

The organization’s perception of risk priorities, and mitigation possibilities, probably won’t change unless some initiative is taken. The risk manager needs to be willing to raise new issues, link future action to societal trends, and sometimes, get out of their personal comfort zone.

Get Educated

There isn’t a single forum or resource that can train risk managers in everything they need to know. But, in virtually every significant area of exposure, there is a wealth of information available to those who go seek it. The risk manager can add tremendous value by distilling this information down to its essentials while making it relevant to the organization and its leadership.

Embrace Technology

It’s not possible to effectively manage the entire palette of risk exposures without appropriate enabling technologies. Sorting through the many types and categories of tools, establishing a broad technology game plan and articulating why such tools

are essential is now a high priority for any risk management function. An appropriate deployment will integrate with critical data sources, collaborate with (or replace) multiple existing tools, provide the foundation for analytical insight and give visibility to risk conditions before adverse events occur.

‘Given this profound and lasting shift, which is both symptomatic of and often driven by changes in technology, organizations face a new and more complex portfolio of risks at the same time that cost pressures are as high as ever.’ Don’t Wait for the Future

Most societal trends don’t arise overnight. It’s not necessary to have all the answers, but it is extremely important to build awareness over time of what such trends could mean for an organization’s risk exposures. Valuable insights can and do arise from high-level dialogue with organizational leadership, while support is built for timely and insightful action.

A Final Thought

We are witnessing a set of social trends that, as recently as five years ago, mostly either didn’t exist or were not a prominent discussion subject. Those trends include COVID-19, #MeToo, Black Lives Matter, data privacy, cyber breaches, the shift to a gig economy and grievances arising from further skewing in the distribution of personal income. It seems likely that although these issues will still be discussed five years from now, they will be joined by a new set of priorities. Though these future particulars are unclear, it is most doubtful that current social trends will utterly reverse, that the risk landscape will be simpler rather than even more complex or that the risk manager no longer needs to adapt to ongoing change. This new reality needs to be the foundation for every risk management practice. For the risk manager, investing in the future of risk is a permanent high priority and a strategic imperative. Pearce is the chief risk officer at Aclaimant. Aclaimant provides safety and risk management services to businesses covering light industrial staffing, commercial construction, real estate, and hospitality industries, as well as empowering insurance brokers and agents with value-added tools for their commercial customers.

January 11, 2021

Progressive Casualty Insurance Company 6300 Wilson Mills Road Mayfield Village, OH 44143

Funeral Directors Life Insurance Company 6550 Directors Parkway Abilene, TX 79606

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.

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

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

Advertisers Index Applied Underwriters www.auw.com 2, 3, 52 Cypress P&C www.cypressig.com S1 Golden Bear Insurance www.goldenbear.com 5 M.J. Hall & Company www.mjhallandcompany.com W1 Monarch E&S Insurance Services www.monarchexcess.com W4 Nationwide Mutual www.nationwide.com 17 Pacific Gateway Insurance Services www.pgiainsurance.com W3 Surplus Lines Association of California www.slacal.com W2

January 11, 2021

BrickStreet Mutual Insurance Company 400 Quarrier Street Charleston, WV 25301

Pacific Guardian Life Insurance Company, Limited 1440 Kapiolani Boulevard, Suite 1700 Honolulu, HI 96814

Accendo Insurance Company 3148 West 3500 South West Valley City, UT 84119

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.

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.

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.

January 11, 2021

SummitPoint Insurance Company 400 Quarrier Street Charleston, WV 25301

PinnaclePoint Insurane Company 400 Quarrier Street Charleston, WV 25301

NorthStone Insurance Company 400 Quarrier Street Charleston, WV 25301

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.

INSURANCEJOURNAL.COM

JANUARY 11, 2021 INSURANCE JOURNAL | 49

Closing Quote Heavy Burden on Fleet Owners

he sharply rising cost of fleet insurance over

the past several years has placed a heavy burden on fleet By Jason Schaufenbuel owners. Last year, the American Transportation Research Institute reported that insurance costs rose 12% from 2017 to 2018, the second fastest year-over-year growth rate. Greatly outpacing inflation, the increased rate of insurance costs for fleets among all other costs – repair and maintenance, permits and licenses, tolls and driver wages – was second only to increases in fuel costs. On the other side of this equation are insurance companies scrambling to find a balance between the industry’s rising costs, protecting clients and maintaining profitability. There are three principal drivers of these cost increases: high-cost legal cases that can result in huge payouts, traffic accidents and the overall cost of vehicles. Over the past several years, there has been a steady rise of

multimillion-dollar legal cases involving fleet collision. Along with an increase in the number of these so-called “nuclear verdicts” has come an increase in the size of verdicts and settlements. This trend leaves insurance companies exposed to considerable losses, forcing them to increase costs. Additionally, fleet vehicles are always at high risk for being involved in severe accidents and carry high liability limits due to their size and the length of time spent on the road, even if the fleet driver is not at fault. Factors such as weather, heavy traffic and the driving habits of others are unpredictable and unavoidable. The National Safety Council reported 13.5 million crashes in 2018 with 4.5 million medically consulted injuries. Those accidents can be expensive. According to a 2019 Motus Driver Safety Report, vehicle crashes cost businesses $57.9 billion in 2018, compared to $47.4 billion in 2013. These trends lead to greater costs for insurance companies, which in turn, result in the increasing rates we’re seeing across the industry regardless of sector or fleet size. And while overall traffic flow

lessened a bit during the first few months of the pandemic this year thanks to public health guidelines restricting travel and gatherings, traffic is now back up to about 90% of what it was before COVID-19 struck. Finally, the increasing value of all vehicles also contributes to rising insurance costs. More expensive vehicles can mean higher claims related to physical damage. Of course, the larger the vehicle, the higher the cost to buy, own, operate and insure it. Ultimately, all of these cost-drivers are beyond the control of fleet owners and insurance companies. However, there are some proactive measures fleet owners can implement to mitigate risk and lessen potential damages. First, promoting safety and best practices that lower risk accidents is the most direct way to help offset rising insurance costs. This means implementing sound driver recruitment, selection and retainment processes to ensure a fleet is being operated by the best personnel available. Additionally, investing in and leveraging the latest safety technology and telematics can

go a long way to lowering risk of accidents. The extensive GPS, vehicle sensor and engine data that telematics provide are invaluable not only to managing fleet maintenance and avoiding collisions proactively, but also in the event of an accident to defend drivers and document that safety rules and best practices were followed. Another important step fleet owners can take to meet expectations of insurers and help reduce premiums is to build and maintain detailed safety records. This includes documenting all safety policies, including documentation that drivers have been fully trained and meet appropriate qualifications. Safety records should also be maintained with updated analytical measurements, such as through telematic data, goals and results. It is also helpful to include a disaster plan that outlines how a fleet will be managed in the event of a natural disaster or crisis situation like a global pandemic, floods, wildfires and civil disobedience. New research shows that amid the pandemic, almost 80% of owner-operators and small fleets do not have any plan in place for managing operations during times of crisis. While the drivers of cost increases to fleet insurance plans may be uncontrollable, fleet owners and managers can take steps to mitigate the risk of accidents that can ultimately help save on costs. Schaufenbuel, PhD, CSP, is assistant vice president, loss control, at Argent, a division of West Bend Mutual Insurance Company.

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â&#x20AC;&#x153;Insurance Journal is my go-to source for industry news!â&#x20AC;? Paul Jerosimic Account Executive at ASCO Insurance Services, Inc. & Satisfied Insurance Journal Subscriber

Thanks to Paul for the kind words and thank YOU for reading. Our journalists take pride in serving the industry. If this publication is valuable to you, please consider upgrading your subscription at www.insurancejournal.com/pro

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